FTC to refund $5.5m to consumers for supplement maker's 'false claims'

A major marketer of dietary supplements has agreed to refund consumers a total of $5.5 million to settle Federal Trade Commission accusations that it falsely claimed its products could help buyers lose weight and treat or prevent colds, flu and allergies.

The proposed settlement was the agency's second today that questions product claims. Earlier in the day, the FTC spanked food giant Nestle for making health claims it couldn't back up about its Boost Kid Essentials drinks.

Representatives for Iovate Health Science U.S.A. and two affiliated Canadian companies have already signed off on the settlement, which the FTC will file in U.S. District Court in western New York. As part of the settlement, the companies do not admit to any liability.

The dietary supplements Accelis, nanoSLIM, Cold MD, Germ MD and Allergy MD -- all sold over the Internet and in retail stores -- were advertised on TV, websites and in national magazines. Some of the ads depicted white-coated people representing doctors who claimed the products' effectiveness was clinically proven.