Friday, February 14, 2014

Crackdown coming on fad weight-loss products

Posted: Friday, January 3, 2014 8:40 pm

The Federal Trade Commission said it will announce Tuesday the beginning of a “crackdown” against deceptive claims made by national marketers of “fad weight-loss products.”
The agency provided only a media alert for an 11 a.m. press conference. The initiative will target markets of products “from food additives to skin cream,” though it did not mention any specific companies.

The shares of at least three companies in those product categories fell Friday: Herbalife Ltd., a nutrition supplement company; USANA Health Sciences Inc., which makes nutritional products; and Nu Skin Enterprises Inc., which makes nutritional supplements and anti-aging beauty products.

Herbalife fell 3.4 percent, or by $2.73, to close at $77.10. Its 52-week range is $30.84 to $81.75.

NuSkin fell 4.1 percent, or by $5.73, to close at $132.34. USANA fell 2.3 percent, or by $1.77, to close at $75.17.

“Herbalife has no reason to think any of its weight-management products will be the subject of the FTC’s press conference,” spokesman Julian Cacchioli said. “Herbalife uses sound science in assessing those products and conveys substantiated claims for them in a non-deceptive manner. Herbalife also emphasizes the importance of incorporating healthy eating habits and appropriate physical activity in every weight-management regimen."

Herbalife said recently it is on pace for opening a $130 million manufacturing plant in Winston-Salem next year, although at a slower hiring pace for 493 full-time employers than was projected in June. Spokesman Julian Cacchioli said the company would have 60 full-time employees by the end of 2013, and to complete hiring by the end of 2015.

No comments:

Post a Comment