PHOENIX (AP) -
A Phoenix company that sold acai-berry weight-loss supplements and colon cleansers over the Internet will pay $1.5 million to settle charges that it offered fraudulent free trials and fake celebrity endorsements.
The Federal Trade Commission said Monday that Central Coast Nutraceuticals Inc. enticed consumers with free or discounted trial periods for weight-loss and health supplements and consumers who sought refunds repeatedly found unauthorized charges to their bank accounts.
The company's practices made it difficult for refund-seeking customers to avoid paying full price for products typically priced from $39.95 to $59.95.
Phoenix resident Graham D. Gibson is the founder of Central Coast Nutraceuticals. He told The Arizona Republic that he didn't agree with the FTC's allegations but settled the case to avoid a protracted legal battle.
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