FAT TRAPPER UNDER FIRE WEIGHT-LOSS FIRM TO SHED DOLLARS IN SETTLEMENT.

Byline: Chris Sieroty Staff Writer

ENCINO - In the largest settlement of its kind, an Encino company that markets a weight-loss system claiming to block fat and burn calories without exercise agreed Wednesday to pay $10 million to settle government charges that they used deceptive advertising.

The Federal Trade Commission said Enforma Natural Products Inc. used false claims about scientific testing to promote a combination of pills as The Enforma System. The complaint names the company, Chief Executive Officer Andrew Grey and former executive Fred Zinos.

``We stand by our products and are settling the case to avoid spending years battling the FTC,'' Grey said. ``We have been very successful and helped a lot of people lose 10, 20, 30 and even 100 pounds. We have sold the product to over a million people.''

By reaching a settlement with the government, Enforma doesn't admit breaking any laws, he said.

Grey added that the controversial infomercials pitching the weight-loss product were pulled from the airwaves last month and replaced by 30-second conventional spots that were approved by the FTC.

In addition to its 30-minute infomercials, featuring former Los Angeles Dodger Steve Garvey, the company used the Internet to sell the product, which costs about $70 for a two-month supply of capsules.

``Lose weight without dieting? Not a chance,'' said Jodie Bernstein, director of the FTC's Bureau of Consumer Protection, in a statement.

``Miracle weight loss claims prey on people who are overweight or obese,'' Bernstein said. ``When marketers promise effortless weight loss, it's bad business. The fact is, there's only on sure way to lose weight and keep it off: eat less and exercise more.''

The Enforma System consists of two dietary supplements with ingredients that are becoming increasingly popular with people searching for weight loss remedies.

The Fat Trapper is a chitosan-based product that purports to prevent the absorption of dietary fat, while a pyruvate product named Exercise In A Bottle supposedly increases the body's capacity to burn fat.

The company also claimed that Exercise In A Bottle works on a cellular level, forcing every cell in a person's body to work whether he is exercising or not.

According to the FTC complaint, the government challenged these assertions and said the company's advertising falsely claimed scientific proof of its weight-loss, fat-absorption and fat-burning claims.

Grey disputed the government's claims that Enforma falsified facts about its products in their infomercials.

``We feel we can support the claims,'' he said. ``We have years of scientific studies that support our claims. We also have conducted clinical trials.''

However, Grey said from his point of view the dispute with the FTC was not about the product, it was about the advertising.

Under the settlement, Grey and his company will pay the FTC $10 million, which will be refunded to consumers who bought the weight loss product directly from the Enforma prior to March 31.

Zinos isn't required to make any payments, the agency said.

But if the FTC decides the refunds are not practical, the agency may choose to distribute the money to the U.S. Treasury.

The settlement doesn't affect the sale of The Enforma System in stores, he said. However, the bottles will carry a disclaimer that reads, ``A reduced caloric intake is required to lose weight.''

Grey said the company began selling its weight-loss system earlier this year in stores nationwide, including Rite Aid and General Nutrition Centers.

``It's in retail (stores), because it works,'' Grey said. ``As long as our customers continue to buy our products, which we think they will, our retail trading partners will continue to be very satisfied with Enforma.''