Colorado Research Company Settles for $4.1M for False Claims of Dietary Supplement
Owners Stephen Young and Michael Ledeboer, along with their Colorado-based A.S. Research, LLC (ASR) have ended the lawsuit filed against them by settling for $4.1 million with the Federal Trade Commission (FTC) after the company misled customers with false advertisements.
The FTC filed a complaint in May of 2019 at the United States District Court of Colorado, launching an investigation about the advertising of the dietary supplement Synovia.
The alleged misleading and unsupported claims about Synovia included: "the supplement would pave the “pot holes” in damaged joints, replace expensive injected medications, and reduce arthritis pain by 95 percent" and showcased phony consumer testimonials, according the FTC press release.
"The complaint further alleges that the defendants falsely claimed that consumers needed to pay extra for a version of Synovia containing an added ingredient to increase pain relief and speed joint repair, when in fact all purchasers received that product", continued the FTC press release.
The proposed settlement order requires the defendants to pay more than $4.1 million, which will be partially suspended after they pay $821,000 to the commission.
The company is also barred from misrepresenting the results of scientific studies related to their product and any endorsements they receive, for which they are required to disclose all connections they have with their endorsers.
NOTE: The FTC files a complaint against defendants when it has “reason to believe” that individuals or companies are breaking or about to break the law and they think that a proceeding is in the public interest. Final orders from these proceedings have the full force and support of the law behind them when they are approved and signed by the District Court judge.