Medifast, Inc. Issues Statement Regarding FTC Settlement
OWINGS MILLS, Md., Sept. 10, 2012 /PRNewswire/ -- Medifast, Inc. (NYSE: MED), a leading United States manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, announced a statement in response to today's press release by the Federal Trade Commission ("FTC"), announcing the resolution of the FTC's non-public investigation of certain statements in the Company's advertising for its weight-loss programs:
The FTC's allegations suggested that the testing we conducted did not substantiate certain claims used in the advertising of our Medifast line of products. While Medifast disagreed with this interpretation due to our extensive research data, the Company is pleased that the parties reached an agreement on claim language and a protocol for future research to avoid further legal proceedings. More specifically, in line with the FTC's recently published consumer research, the FTC objected to the Company's use of the words "up to" in conjunction with advertised weight loss claims of 2-5 lbs. per week. To avoid a protracted legal battle, Medifast has agreed to modify its weight loss claim to "lose 2-5 lbs. per week for the first 2 weeks and 1-2 lbs. per week thereafter." This clarification is consistent with our prior and ongoing clinical studies. As a leader in the weight loss industry, we stand behind our weight loss claims and remain committed to fairly providing consumers with as much information as possible. Our customers are our number one priority and we have received overwhelmingly enthusiastic feedback from our Medifast customers as to their weight loss and weight management success.
Medifast (NYSE: MED) is the leading easy-to-use, clinically proven, portion-controlled weight-loss program. The company sells its products and programs via four unique distribution channels: 1) the web and national call centers, 2) the Take Shape For Life personal coaching division, 3) Medifast Weight Control Centers, and 4) a national network of physicians. Medifast was founded in 1980 and is located in Owings Mills, Maryland. For more information, log onto www.MedifastNow.com.
SOURCE Medifast, Inc.