Firms fined $150M over false advertising of diet supplement


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SANTA ANA, Calif. (AP) — Federal officials have hit several Southern California distributors with tens of millions of dollars in fines for falsely advertising a dietary supplement's ability to restore memory loss and improve brain function.

The Orange County Register reported Monday (http://bit.ly/1RiEGmq ) that the judgment comes following a settlement last week in which the firms acknowledged violating Federal Trade Commission rules in advertising Procera AVH.

Laguna Beach companies Brain Research Labs and its collaborators — 20/20 Brain Power Partners, 20/20 Brain Power Founders, and MedHealth Direct — were fined $91 million. Key View Labs, the Florida-based company that bought Brain Research Labs in 2012, was fined $61 million.

The newspaper says most of each judgment could be suspended in lieu of an escrow fund that will used to repay consumers who bought the supplement.

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Information from: The Orange County Register, http://www.ocregister.com

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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