The FTC said in Chicago that an Internet sales scheme allegedly perpetrated by Central Coast bilked consumers out of more than $30 million last year. About 1 million people have been victimized, David Vladeck, director of the FTC’s Bureau of Consumer Protection, said in a statement.
Officials at Central Coast, based in Phoenix, couldn’t be reached.
In its suit seeking the injunction, the FTC accused Central Coast and two individuals associated with the company of engaging in deceptive advertising and unfair billing practices. The FTC says the company deceptively claimed that use of the acai berry supplements leads to rapid and substantial weight loss and that the colon cleansers help prevent colon cancer. Some advertisements falsely claimed product endorsements by celebrities such as Oprah Winfrey and Rachael Ray .
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A request for a permanent injunction is slated to be heard Friday in federal court in Chicago.
Here’s how the sales scheme over the Internet allegedly worked:
•Consumers signed up for a “free” trial of acai berry weight-loss supplements or colon-cleansing products.
•As part of the offer, consumers were asked to provide a credit or debit card number to process a minimal shipping fee. However, consumers were billed full price for their “free” trial products, typically $39.95 to $59.95. And the credit or debit card numbers they initially provided were automatically charged for membership enrollments and fees. Terms and conditions, the FTC said, were in such small type that they were barely visible on the consumer’s computer screen.
In August 2009, Rhonda Wooten
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