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Judge Orders Supplement Scammer to Pay Up

A federal judge has ordered Sunny Health Nutrition Technology & Products, Inc., which last year was hit with a $1.9 judgment by the FTC as part of a consent decree, to pay the full amount.

The company, which last November settled charges it had made bogus claims about a series of dietary supplements in broadcast, Internet and print ads had agreed to pay $375,000 of the settlement, but pled inability to pay the rest. The balance was suspended with the stipulation that it would be due immediately if the company was not telling the truth.

The FTC says it discovered the company was hiding at least $1.8 million in a Paypal account, after which the judge ordered Sunny to pony up the remainder.

One of the supplements, HeightMax was advertised as making kids taller. The FTC will set up a fund to compensate consumers who bought that and other products.

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.