Federal Trade Commission files lawsuit against online weight loss scammers

In the past few years, there has been a surge in the development of weight loss pills and supplements. If you're considering going the road of a weight loss pill, tread with caution, because there are some companies out there that may steal your credit and/or bank account information to turn a profit at your expense.

Recently, the Federal Trade Commission (FTC) filed a lawsuit against one such company that has not only been making false claims about their product, but using phony endorsement methods-even using celebrities like Rachel Ray and Oprah Winfrey to coax consumers into revealing sensitive financial information.

Phoenix-based Central Coast Nutraceuticals Inc. is reported to have stolen more than $100 million from unsuspecting customers since 2007 by asking you to provide a credit card number in order to sign up for a "free trial" online of their supposedly all natural acai berry weight-loss supplement.

Instead of getting a free trial, month after month, consumers got shipments of pills they didn't want and charges of $45 to $65 that mounted despite their attempts to cancel. Rhonda Wooten, 48, of Paxton in east-central Illinois, told the Associated Press she learned "a hard life lesson" after losing up to $500 trying to stop shipments of weight-loss pills and charges to her checking account.

"I'm a preschool teacher, and they don't make good money, so $200 to $500 is a lot," Wooten said. "It could buy a lot of food for my kids and my family."

A federal judge has frozen the assets of Central Coast Nutraceuticals Inc. and ordered the company and its executives, Graham D. Gibson, 34, and Michael A. McKenzy, 27, to stop making false claims for their products. AcaiPure and Colopure, two herbal supplements sold by Central Coast Nutaceuticals Inc., don't work for weight loss or to prevent cancer as the company claimed, the FTC said.

"Our expert tells us that these pills were nothing but a laxative," said David Vladeck, director of the FTC's Bureau of Consumer Protection to the Associated Press.

Martin Elliott of Visa Inc. advises consumers to notify the bank that issued their credit card or debit card if they think they've been a victim of fraud.

-AJ Register