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Supplement Company Settles With State

Company Markets Dietary, Health Supplements

POSTED: Monday, November 23, 2009
UPDATED: 6:30 am EST November 24,2009

A Hollywood company has reached a settlement with the state of Florida, months after Local 10 first reported on its dealings in March.

Attorney General Bill McCollum on Monday announced that his office has reached a settlement with an Internet-based company that markets non-prescription dietary and health supplements. The settlement with FWM Laboratories, its subsidiaries and its owners resolves allegations that the company was offering “free” trials of its products without allowing consumers to cancel their subscriptions before being billed.

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Since the attorney general's investigation began in February, the company has already made more than $34 million in consumer refunds.

Brian J. Weiss, the president of FWM, refused to talk to Local 10's Jeff Weinsier. His attorney, Brian Gross, said Local 10's stories on the company have been "misguided."

Broward County-based FWM Laboratories offers 17-day free trials of several products under the condition that consumers may cancel their subscriptions before the end of the trial period to avoid receiving monthly bills.

The attorney general’s Economic Crimes Division began investigating the company after receiving hundreds of complaints from consumers who alleged they were unable to contact the company by telephone, e-mail or through the company’s Web sites to cancel their subscriptions before the trial period ended. As a result, consumers were allegedly billed a monthly fee of $80 or more for products they neither ordered nor wanted.

"The victims who contacted us weren't able to contact the company, get answers or a refund as promised. Now they have to have people in their company to field those complaints and refund money to those who want to be refunded," said Deputy Attorney General Cindy Guerra.

FWM Laboratories and its owners have fully cooperated with the attorney general’s investigation and agreed to openly describe all terms and conditions of any trial offer located on all the company's Web sites. The company and its subsidiaries must also clearly and explicitly disclose to customers how and when products may be returned.

Additionally, the company will maintain the appropriate level of customer service resources to field cancellation requests and will continue to examine, address and resolve all complaints related to the company’s business, products and trial offers.

In addition to the consumer restitution, the company has agreed to pay $200,000 in attorneys’ fees and costs and will continue to issue refunds to any consumers lodging complaints.

"(Weiss) will have to change his practices in Florida. We will monitor and if doesn't comply we will sue him and make sure he doesn't do business in Florida again," Guerra said.

A copy of the agreement with FWM is available on the Florida attorney general's Web site.

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