The skinny on
fatty-fraud

>> Made-in-Canada diet scams plague U.S.

by DOMINIQUE RITTER

Fat Americans are big consumers and most of them are prepared to invest in their waistlines. Although we Canadians generally are trimmer and healthier than our southern neighbours, we are not ignorant of the burden of an expanding belly or the myriad of miracle solutions to obesity, and some savvy Canucks have decided to capitalize on America’s battle on the bulge, with or without the benefit of legitimacy.

Earlier this month, Laval-based Bio Lab was charged by the U.S. Federal Trade Commission with deceiving its consumers with false advertising. The FTC named two Bio Lab products, Quick Slim —“Lose Up to 2 Pounds Daily Without Diet or Exercise”—and Cellu-Fight—“New Tablet Completely Eliminates Cellulite”—in its allegations. The products, which were not for sale in Canada, were marketed in the U.S. via direct mail, newspaper inserts, the Internet and magazines.

Charges were filed on September 6 and the next hearing is scheduled for October 11 in Utica, New York. But although the company’s U.S. assets are frozen for the time being, according to the FTC, it’s unlikely that a judge would order Bio Lab to stop doing business in the U.S. altogether.

“The goal is to stop the false representations,” FTC attorney Tuwana Davis tells the Mirror. But, she adds, “You could see how a product might not be as attractive to consumers if it is marketed accurately. The court wouldn’t order the company to close, but it may be an outcome just the same.”

In its case, the FTC claims that the two Bio Lab products are virtually totally ineffective in weight-loss and cellulite-reduction. Neither the FTC nor Canada’s Competition Bureau, which aided in the investigation, could provide any details about how many people may have taken Quick Slim and Cellu-Fight or how much money Bio Lab has made selling the products.

Bio Lab, which produces several other diet products, could not be reached for comment as their Web site has been taken down, their toll-free number disconnected and they are not listed in the phone book. But, according to Terry Polevoy, a doctor in Guelph and the creator of the Dietfraud.com Web site, a comprehensive resource on diet scams, Bio Lab is just one of “scores” of Canadian companies cashing in on American obesity.

“This is going to be a problem until Canada gets wise and stops providing a haven for these people,” says Polevoy. He blames lax Canadian law enforcement for the success of companies like Bio Lab. He would like to see Canadian authorities start to take action against the companies that market diet scams through newspapers, magazines, the Internet and toll-free phone numbers.

A spokesperson for Canada’s Competition Bureau admits that’s it’s not the first time the FTC has cracked down on a Canadian diet fraud operation—there was a similar case as recently as two years ago—but says her organization has a hard time keeping track of what Canadian companies are up to on foreign soil and is, in this case, content to let the FTC handle things.

Tuwana Davis says she’s aware of Canadians playing a significant role in diet scams, but she wouldn’t comment on whether our authorities are doing their jobs. “If we can receive [financial] redress for the [Bio Lab] consumers, that would be the optimal solution.” :