FTC v. Health Formulas, LLC & Others
Case summary
Health Formulas was held liable for fraudulent "free trials" luring consumers into enrolling for a membership program.
Our analysis
The same paragraph then referred to a study commissioned by Microsoft’s competitor Mozilla. It was the two researchers responsible for that study, not the Bundeskartellamt itself, who concluded that Microsoft made switching to another browser more difficult through deceptive design patterns. Decision, paragraphs 428–430, pages 141–143
Outcome
In response to the FTC's charges, a court order was issued, resulting in a permanent ban on Health Formulas, its owners Jason and Danelle Miller, and the 41 affiliated corporations they controlled from advertising or selling weight-loss supplements and negative option sales plans. The order also prohibited them from making unsubstantiated health claims for other products, unauthorized debits from consumers' bank accounts, and contacting consumers who had requested not to be called. Furthermore, the defendants were compelled to forfeit approximately $10 million in assets.
Parties
Federal Trade Commission, Health Formulas LLC, Chapnick, Smukler & Chapnick, Inc., Brandon Chapnick, and Keith Smukler