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QVC pays out $7.5 mil. for deceptive product claims

Executive Summary

Unsubstantiated claims for Lipofactor Cellulite Target Lotion - including the assertion that the skin cream could reduce cellulite, "including measurable decreases in the sizes of individuals' arms, lets and abdomens" - as well as for three types of dietary supplements, were the basis of Federal Trade Commission charges leveled at QVC in March 2004. The home shopping specialist will pay $7.5 mil. - $6 mil. for consumer redress and a $1.5 mil. civil penalty - to settle the charges, and a prior FTC order has been expanded, barring QVC from claiming without substantiation that any product eliminates or reduces a user's cellulite, according to the March 19 release. "QVC aired ads that weren't true and violated an FTC order," says Eileen Harrington, Acting Director of the FTC's Bureau of Consumer Protection. "Simply put, we aren't going to let QVC get away with this. The company is responsible for the product claims made on its programs, and we expect that going forward QVC will do a better job for its audience and make sure that its programs are truthful and not deceptive." For Women Only weight-loss pills, Lite Bites weight-loss food bars and shakes, and Bee-Alive Royal Jelly energy supplements were the other products cited for weight-loss and associated claims
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