The people behind the sham diabetes remedy Nobetes have settled a complaint brought against them by the Federal Trade Commission, or FTC. The agency had accused the company of marketing Nobetes with “false or unsubstantiated” medical claims, misuse of customer testimonials and billing customers’ credit cards without the customers’ consent.
Under the settlement terms, Nobetes must discontinue those practices and pay a monetary judgement of $182,000, which, reportedly, will be refunded to buyers of the supplement.
When the FTC sought the order it accused Nobetes’ corporate officer of many wrongdoings, including:
- Making unsubstantiated health claims, even after being formally warned by both the FTC and the FDA to stop
- Misleading customers with “free trial” offers
- Billing consumers without consent
- Passing off an actor as a diabetes expert
- Refusing to disclose that testimonials were given by “customers” who had been given free supplements
One of the most serious allegations against Nobetes is the claim that the company offered customers a $6.95 “trial offer” but later charged some of those customers’ credit cards more than $50 for another bottle. Under the settlement, Nobetes will have to get express consent before enrolling buyers in a recurring purchase program and give customers “an easy way” to cancel future orders.
The settlement does not actually close Nobetes but as of my last check of the company’s website, the site is no longer available.