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.