FTC Finds Medifast in Contempt and Fines Them $3.7 Million

The Federal Trade Commission’s action to enforce their 1992 settlement order against Jason Pharmaceutical’s, a subsidiary of diet plan marketer Medifast, Inc., resulted in a $3.7 million civil penalty for violating the FTC order by continued misrepresentation of their product and unsupported claims that consumers would lose weight. Under the FTC Act, violations of FTC orders can carry civil penalties of up to $16,000 per violation per day. The agency’s previous settlement order is part of the FTC’s efforts to ensure compliance by companies and put an end to deceitful, ambiguous health claims. The complaint filed by the Department of Justice on behalf of the FTC against Jason Pharmaceuticals alleged that since as early as November 2009, the company advertised in print, on radio, television and internet that consumers using their products would typically lose specific amounts of weight. They offered no proof, competent or scientific evidence and misled consumers by falsely claiming that they would have the same success as the people who endorsed their products.