02 March 2009

Mannatech to pay millions to settle diet-supplement lawsuit

Dietary supplements seller Mannatech Inc. will return $4 million to customers and its founder will pay a $1 million fine for lying about the health benefits of its products, the Texas attorney general’s office announced Thursday.

At a news conference in Dallas, Attorney General Greg Abbott said the Coppell-based company tricked people into thinking its products would prevent, treat or even cure diseases.

"Bottom line, this is a warning to the general public: Be wary of phony claims of magic cure-all pills or false hope in a bottle," Abbott said. "You could be duped into purchasing something that has no real effect and no real value."

Under the agreement, Mannatech will also have to pay $2 million to cover the state’s costs in the case.



Anonymous Tim Draayer said...

At some point, either the companies are going to have to learn to regulate themselves OR we the distributors (Independent Contractors) need to be clear on the messages we are delivering otherwise network marketing will only getting a dirtier reputation.

The way I look at it, its kinda like cussing and swearing. People who cuss profusely during a heated argument do so because they have no real leg to stand on -- nothing to support their point of view.

Companies who boast about being able to cure this disease or that ailment are in the same boat.

No real substance to the company or products, therefore, they are compelled to exaggerate to maintain market share.

4/28/2009 01:58:00 AM  

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