A promoter of a series of weight loss products, Mr David Francis, has consented to orders restraining him from in the future making unsubstantiated representations about a series of weight-loss products and any other products promoted as methods or aids to slimming.
The orders follow Australian Competition and Consumer Commission institution of Federal Court proceedings against weight loss product supplier, Jayco Pty Ltd, and other parties, alleging misleading and deceptive conduct.
At the first directions hearing before Mr Justice Goldberg of the Federal Court, Mr Francis consented to the orders.
The ACCC has alleged that the company and individuals have engaged in misleading or deceptive conduct and made false or misleading representations in the promotion of six weight loss products:-
- 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).
The ACCC has worked closely and cooperatively with the Victorian Office of Fair Trading and Business Affairs in its investigation of this matter.
The ACCC has alleged that advertising promoting the various weight loss products made false, misleading or deceptive claims to the effect that:
- use of the products or any of them will or can cause a specific amount of weight loss within a certain period;
- the products are endorsed by medical or health practitioners referred to in the promotional material;
- the products are endorsed by the testimonials of persons referred to in the promotional material;
- the products ability to cause weight loss is established upon medical, scientific and or other appropriate clinical grounds; and
- persons dissatisfied after using any of the products would receive a refund of their purchase within a specific period.
The ACCC alleges that the representations made are untrue and that people cannot lose the weight claimed in the promotional material by using the products. It also alleges that the representations about the products are not based on or supported by appropriate scientific or other recognised and accepted research or studies. The ACCC alleges further that guarantees given to consumers in relation to refunds were in many instances not observed.
The ACCC is seeking Federal Court declarations, inter alia, that Jayco has engaged in misleading or deceptive conduct, has represented that goods have performance characteristics, uses or benefits they do not have and has engaged in conduct that is liable to mislead the public as to the nature or characteristics of goods or their suitability for the purpose.
The ACCC is also seeking injunctive relief to restrain the company and the individuals from making unsubstantiated representations with regard to future/further supply of the products or weight loss products generally, in addition to other orders.
The proceedings against the company and the remaining individual respondent have been set down for further hearing on 1 December 1997.
For further information about this media release: Ms Lin Enright, Director, Public Relations, (02) 6243 1108