FDA and Legal Fun

I wonder if Attorney Generals from all the different states ever get together and swap stories?  If so, they could have a great time debating who has the biggest acai berry scams going on in their state.  We have already reported on the Attorney Generals in Florida, Texas, Illinois and Arizona taking action against acai companies that were deceiving the public – well you can now add Colorado to that list.

Same Acai Scam – Different State

I think we all know the game by now – consumer signs up for “free trial of Acai”, but then finds out they will be sent products each month and billed $80 a month.  Consumer tries to cancel, but gets the run around.  Here is the quote from the Colorado Attorney General John Suthers…

“The Office of the Attorney General learned through its investigation that Bezoni’s Arvada-based company, which has operated under the names Golf Nutrition Sciences and GNS, used so-called “free-to-pay conversion” marketing since 2005, which resulted in consumers unknowingly incurring ongoing payments for products that they initially believed were free. Consumers, according to court filings, signed up for free trials of products, such as Acai Berry Edge, Acai Berry Elite and Slim Seduction, and believed at the time they placed their order that they were authorizing only the shipping and handling charges for the free trial. When the free trial arrived, however, consumers also received a two-month supply of the product and were given a limited amount of time to return the product or face a nearly $80 charge within 30 days.”

- Attorney General announces Settlement with Arvada-based Nutra Pills, Inc.

Who Knew Giving Away Free Acai Could be Worth $40 Million a Year?

We are not surprised that companies will try to deceive consumers, what did surprise us was how successful they were!

The company generated $40 million in sales in 2009, nearly all of that was a direct result of its free-to-pay conversion sales.

This is just one company – doing over $40 Million a year in Acai sales with a “free trial” product.  There are many more companies, operating in different states (and outside the USA) who are bringing in much more per year.    Anyone who thinks this is not a major problem just needs to follow the money.

What is The Penalty for Deception?

First, Nutra Pills claims they did nothing wrong as part of the settlement.  Still, they have agreed to refund money to consumers who have filed a complaint since December 2006.  In addition, they have to pay a $100,000 fine – but half of that is suspended if they do not deceive anyone in the next 5 years.  To date the company has refunded $9 million dollars and ceased doing business.

So There You Have it – Crime Does Pay!

Let us first legally state something – Nutra Pills does not admit to any wrong doing as part of the settlement.  Nutra Pills reached a settlement with Colorado before a legal proceeding could determine if laws were broken.

So, you can draw your own conclusions if you think that Nutra Pills did anything wrong.   We would ask – why shut down a business that is doing $40 Million a year in sales if you did nothing wrong?  If you do believe they did something wrong, you have to ask if the punishment fits.  We say NO!

The company made $40 Million in 2009 alone.  So far, they have refunded $9 million and paid a $50,000 fine.  The penalty is just not strong enough to stop others from doing this same form of deception.  In fact, we would argue that this just gives acai scam companies a blue print of how to operate.  Make as much as you can – then settle and close shop when the Attorney General comes knocking.

Let us know what you think?

Additional Resources:

The Julia Miller Health News 5, News 6 or News 7 Acai Berry Scam Exposed

Click Here to Watch A Screen Capture Video Exposing These Julia Miller Acai Scam Health Sites.

Oprah and Illinois Attorney General File Suit Against Acai Scam Companies

Oprah Writes, then Throws Book At Acai Scammers

How I Lost $90 in 30 Days Using the Acai Berry

What Did Oprah and Dr Oz Really Say About Acai

Acai Berry Scams – How to Avoid Them

Acai Berry Maxx named Texas Lawsuit

Free Black Belt Course in Spotting Acai Berry Scams

How Do You Stop An Acai Berry Scammer From Scamming?

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