Nature City Settles FTC Claims for $537,500

Share

The Federal Trade Commission (FTC) says Nature City, Boca Raton, FL, which markets two aloe vera-based supplements, has agreed to pay $537,500 to settle charges that it deceived consumers with false and unsupported claims that its TrueAloe and AloeCran were effective treatments for a range of conditions affecting older citizens, including chronic pain, ulcerative colitis, diabetes, and acid reflux.

A Florida federal court order sought by FTC and approved by the court bars the company from making false and unsubstantiated health claims and says FTC can use the company payment to provide refunds to defrauded consumers. The order also requires the company to disclose any material connection it has with compensated product reviewers.

The commission says that since 5/2002, the company and two of its officers marketed and sold the products primarily through direct mail to consumers nationwide. It says the products’ health claims were deceptive and not supported by competent and reliable scientific evidence. FTC also alleges that the company used testimonial reviews from seemingly independent users and failed to disclose that the reviewers received free products or free lifetime memberships as compensation for providing the reviews.

Read more