Weight loss company Jayco Pty. Ltd has been permanently restrained from making unsubstantiated claims about its weight loss products and aids, following Australian Competition and Consumer Commission Federal Court action.
The company has been specifically restrained from making claims about:
- Medex Diet Patch (a band aid like patch impregnated with iodine);
- Thermoslim (a wafer said to contain thermogenetic [calorie burning] properties);
- E-Z Trim (tablets said to possess thermogenetic properties);
- Acu-Stop 500 (an ear piece inserted inside the ear operating through acupressure);
- Chitoslim 5000 (a powder said to bind fat before absorption by the body); and
- a publication concerning Negative Calories (a book claiming that negative calories can offset the weight increasing effect of positive calorie foods).
Justice Goldberg declared that the company, by making various representations about the diet products, had engaged in conduct that contravened ss. 52, 53(a), (c) and (g) and 55 the Trade Practices Act. These prohibit a range of conduct including:-
- misleading or deceptive conduct;
- making false representations that goods are of a particular standard, quality, value, grade and composition;
- representing that goods have a sponsorship, approval, performance characteristics, accessories, uses or benefits they do not have; and
- making false or misleading representations concerning the existence, exclusion, or effect of any condition, warranty, guarantee, right or remedy.
The company was also ordered to pay the ACCC's costs.
Acting ACCC Chairman, Mr Allan Asher, said today the proceedings were taken as part of the ACCCs continuing commitment to safeguarding and enforcing the rights of consumers affected by some in the slimming and weight loss industries who make unsubstantiated claims about products.
The company did not attend the hearing and nor did it appear at the first directions hearing in respect of this matter on 3 November 1997. Proceedings against the remaining individual respondent have been adjourned to a later date.
For further information about this media release: Ms Lin Enright, Director, Public Relations, (02) 6243 1108