The parties have reached a $219,000 settlement in an FTC administrative proceeding filed against nutritional supplement marketer Pinnacle Marketing, LLC, on behalf of all persons who purchased Ultra Carb dietary supplement for weight loss. The action alleged that the marketers made deceptive advertising claims about Ultra Carb in violation of federal consumer protection laws. Persons eligible to take part in the settlement should contact the prosecuting attorneys for more information.

The action alleged that Pinnacle falsely advertised that Ultra Carb caused substantial weight loss without diet or exercise, and made other false and unsubstantiated weight loss claims. The proposed settlement permanently bars the company and its principals from making the challenged false weight loss claims and from making efficacy and safety claims for weight loss and other health-related products, services, and programs without scientific evidence.

Pinnacle Marketing, based in Biddeford, Maine, marketed a purported weight loss system called "Ultra Carb" consisting of two tablets: a "carb blocker" with white kidney bean extract, chromium picolinate, and other ingredients; and a "fat blocker" with chitosan. Pinnacle's advertisements claimed that Ultra Carb would block the absorption of carbohydrates and fat in the body, enabling users to lose a substantial amount of weight - as much as 20 pounds and two to three dress or pant sizes in one month - without diet or exercise. Pinnacle advertised Ultra Carb in radio ads broadcast in metropolitan areas including Los Angeles, Chicago, and Boston; through ads in newspapers such as The Washington Post and the Detroit Free Press; in panel advertisements on television Interactive Programming Guides; and with an Internet coupon. Pinnacle sold a two-month supply of Ultra Carb directly to consumers for $99.95, plus shipping and handling.

The FTC's complaint names Pinnacle Marketing, LLC (also doing business as Health Remedies, Acadia Skin Care, Atlantic Skin Care, Atlantic Skin Care Products, and Pinnacle Marketing Group, LLC), and its principals, Todd Flaherty, Matthew Tasker, and Kevin Curty. The proposed stipulated final order prohibits the defendants from: (1) representing that Ultra Carb, or any other dietary supplement, food, nonprescription drug, or device causes substantial weight loss by blocking the absorption of fat, or causes quick and substantial weight loss without diet or exercise; (2) representing that Ultra Carb, or any other product, service, or program that purportedly provides health benefits, causes rapid or substantial weight loss or fat loss, or causes substantial weight loss by blocking the absorption of carbohydrates, unless the representation is true and supported by scientific evidence; (3) making false or unsubstantiated claims about the benefits, performance, efficacy, safety, or side effects of any product, service, or program that purportedly provides health benefits; and (4) misrepresenting any test, study, or research.

The order requires the defendants to pay $219,000 in consumer redress or disgorgement. The order also contains an "avalanche clause," which provides that $22.5 million will become due immediately if the court finds that the defendants misrepresented their financial condition. The proposed order further includes various recordkeeping and reporting requirements to assist the FTC in monitoring the defendants' compliance.