Corporation and its officers assessed civil penalties of over one million dollars for violations of the Fair Business Practices Act.
Docket Number: 1456186 , Decision Date: August 14, 2014
Attachment: Click here to download the decision.
Bene-Fit Health Products, Inc. (Bene-Fit)—a corporation in the business of selling “magnetic field therapy” products—and its principals were assessed a fine for violations of the Fair Business Practices Act (FBPA). Bene-Fit and its principals advertised an eight-week delivery time frame with the knowledge that products would be delivered late or not at all and then refused to issue refunds to consumers, used an “auto-dialer” to contact approximately one thousand consumers without first obtaining their written consent, and made unsubstantiated claims regarding the health benefits of their products, all in violation of the FBPA. The principals of Bene-Fit were held individually liable inasmuch as they possessed the authority to control the corporation and had knowledge of the wrongful practices.