January is diet time, and federal regulators want to make sure Americans get the inside skinny on phony weight-loss promises.
The Federal Trade Commission on Tuesday took action against four private companies offering false hope for dieters, including California-based Sensa, which claimed its product when sprinkled on food would help dieters lose their appetites.
The FTC action certainly helped Dr. Alan Hirsch, Sensa’s creator, lose his appetite for making such a claim.
“The chances of being successful just by sprinkling something on your food, rubbing cream on your thighs, or using a supplement are slim to none,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection, in announcing the action. “The science just isn’t there.”
Sensa agreed to pay a $26.5 million fine to settle the FTC probe and promised to stop making the false claims.
Hirsch conducted two of the studies cited in the Sensa ads, wrote a promotional book about Sensa and gave expert endorsements that were not supported by scientific evidence, the regulator charged.
None of the four companies hit by the FTC is being forced to shut down.
The Sensa fine amounted to pennies on its revenue dollar — it rang up sales of $364 million between 2008 and 2012.
The other companies the FTC targeted were l’Occitane, LeanSpa, and HCG Diet Direct.
On Friday, when the FTC’s impending action was announced but companies weren’t named, investors sold off shares of multibillion-dollar, multilevel marketing companies Herbalife and Nu Skin Enterprises, fearful they would be targeted.
After the FTC actions were announced, both companies’ shares recovered. Herbalife shares gained 3 percent to $79.66, while Nu Skin shares rose 3.3 percent to $137.68.