Facts

The Federal Trade Commission filed a complaint against several diet pill marketers, including Sale Slash LLC, Purists Choice LLC, Apex Customer Care LLC, Penway LLC, Renvee LLC, Optim Products LLC, and companies' respective owners: Edgar Babayan, Artur Babayan, individually and as an owner and manager of Sale Slash and Purists Choice, Vahe Haroutounian a/k/a Vaheh Haroutounian d/b/a Prisma Profits, individually and as manager of Sale Slash and owner of Optim Products, in connection with allegedly wrongful marketing practices.

PLAINTIFF'S CONTENTIONS:
Defendants allegedly provided false information regarding the research behind the diet pills defendants marketed. Defendants allegedly initiated a spam marketing campaign by making the emails appear as if they came from someone known to the recipient. Defendants also allegedly created fake news websites to market the weight loss products. Plaintiffs alleged that such conduct violated the FTC Act, which prohibits "unfair or deceptive acts or practices in or affecting commerce." Plaintiff also accused defendants of making misrepresentations (false endorsements), violating the CAN-SPAM Act, providing materially false or misleading header information, writing misleading email subject headings, failing to provide opt-out and notice to opt-out, and failing to include a valid physical postal address.

DEFENDANTS' CONTENTIONS:
Defendants denied any wrongdoing.

Result

The parties reached a settlement providing both for injunctive and monetary relief. As part of the injunctive relief, defendants agreed, among other things, to be permanently enjoined from making any health-related claims about the affected products and equivalent products or making any representations regarding the research behind the covered products. Defendants also agreed to pay $43,379,253, jointly and severally, as part of the settlement, with the defendants paying approximately $10 million, and the balance of the judgment was suspended.

Other Information

FILING DATE: April 27, 2015.