SACRAMENTO — A Garden Grove nutrition company accused of making false claims about its diet products and operating an illegal pyramid scheme has settled a consumer protection lawsuit, the state attorney general's office said Wednesday.
Under the terms of the settlement filed in Sacramento County Superior Court, the company, Nutrition for Life, will be required to pay $50,000 in civil penalties, make restitution to consumers who bought diet patches and water treatment systems from the company, and change its marketing practices.
In agreeing to the settlement, Nutrition for Life did not admit any wrongdoing, Deputy Atty. Gen. Laura Kaplan said.
The attorney general's lawsuit charged Nutrition for Life with operating a multilevel sales program that constituted an illegal pyramid scheme. The suit also accused the company of making false claims about the weight-loss effects of using their diet patches, which have been banned by the U.S. Food and Drug Administration.
Kaplan said the company used scare tactics to persuade potential customers to purchase water treatment devices by claiming that tap water is dangerous to drink due to bacteria, pesticides and toxic chemical contamination.
In addition to civil penalties and restitution, the settlement calls for modification of Nutrition for Life's multilevel sales program and bans the sale or misrepresentation of its diet patches.
The company is also prohibited from making false statements about the dangers of contaminants in tap water when selling their water treatment systems.