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FTC Touts Civil Penalty of $3.7 Million
On Diet Plan Over Lack of Substantiation

Sept. 11, 2012, 4:00 AM

A subsidiary of Medifast Inc., a diet plan marketer, agreed to pay a $3.7 million civil penalty to resolve charges that it had violated a previous order by making unsubstantiated efficacy claims about its weight-loss program, according to a proposed consent decree filed Sept. 7 in the U.S. District Court for the District of Columbia (FTC v. Jason Pharmaceuticals, Inc., D.D.C., No. 1:12-cv-01476).

The complaint, filed by the Justice Department behalf of the Federal Trade Commission, challenged the conduct of Jason Pharmaceuticals Inc. Jason Pharmaceuticals sells low-calorie meal substitutes under the Medifast® brand.

Challenged Conduct.

The FTC ...