Company to Pay FTC Fine for Diet Supplement Ads - Los Angeles Times
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Company to Pay FTC Fine for Diet Supplement Ads

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KCD Holdings, a marketer of dietary supplements, has agreed to pay $150,000 to settle an inquiry by the Federal Trade Commission into the Westlake Village company’s advertising claims.

Under the terms of a proposed consent order, which will become final upon approval by the FTC, the company also agrees to have adequate substantiation for future advertising claims.

“We are pleased to have reached an agreement with the FTC concerning this matter,†said KCD President Wellington Ewen. “We can now renew our efforts to expand the distribution of the SeQuester1, 2 and 3 line of dietary supplements, as well as to expand the launch of our new cholesterol-reduction supplement Phyto-Quest.â€

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KCD sells over-the-counter dietary supplements for weight-conscious consumers. Company officials say its main product, SeQuester1, is sold at more than 35,000 chain stores throughout the United States. KCD expanded its product line in 1996 by commencing shipments of SeQuester2, an appetite suppressant, and SeQuester3, a chromium dietary supplement.

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