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Thursday, October 17, 2019

FTC settles with Lunada over allegations of deceptive marketing

By Mark Iandolo | May 24, 2016

LOS ANGELES (Legal Newsline) – The Federal Trade Commission (FTC) announced that Lunada Biomedical Inc. and its three principals settled allegations of deceptive marketing related to the dietary supplement, Amberen.

Amberen was targeted toward women older than 40 who are perimenopausal or menopausal. Lunada allegedly claimed the drug could help users lose weight and belly fat and relieve other menopause symptoms. The FTC charges that these claims were unsupported.

The proposed stipulated order will ban the defendants from making allegedly unsubstantiated claims about the health benefits of Amberen.

“The Lunada defendants made strong claims about the effectiveness of their supplement without the scientific evidence to back them up,” Jessica Rich, director of the FTC’s Bureau of Consumer Protection, said. “The relief provided by this court order is intended to prevent the defendants from making unsupported health benefit claims in the future.”

Lunada will also be subject to a $40 million judgment. The company will only be forced to pay $250,000 of this due to their financial inability to pay the full amount.

The FTC voted 3-0 to authorize its staff to file the proposed stipulated order. The order will go before the U.S. District Court for the Central District of California.

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U.S. Federal Trade Commission