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Monday, Sep 25, 2023

Weight Loss Firm Target of FTC Files Chapter 7

Enforma Natural Products Inc., which has been in court for years debating Federal Trade Commission charges that it made unsubstantiated weight loss claims about its Fat Trapper, Exercise in a Bottle and other products, has filed for bankruptcy in the U.S. Bankruptcy Court, Central District of California. In documents provided to the court, Encino-based Enforma claims that its total assets are worth $87, and that it has $2.8 million in liabilities. The company filed for Chapter 7 bankruptcy, which, if granted by the court, would mean that the company would completely liquidate its assets to pay creditors and not make any attempts to reorganize the business. Enforma is also asking that a class action lawsuit filed against the company be dismissed based on its declaration of insolvency. In 2000, the FTC claimed that Enforma was misleading customers in claiming that its products could be used to lose weight. In April of 2000, the FTC announced it had settled charges against the company providing that it pay $10 million in consumer redress. Then in 2002, the FTC claimed that it was violating the 2000 order by making similar claims for weight-loss products Acceleron and Chitozyme. A settlement of that claim announced earlier this year required the company to pay an additional $300,000 and ordered it not to make any claims about dietary supplements without reliable scientific evidence. The court has scheduled a creditors’ meeting for July 11 at 9 a.m. at 21051 Warner Center Lane, #105 in Woodland Hills.

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