OTTAWA, December 13, 2004 -- Canadian consumers will no longer be subjected to false claims about the Zyapex and Dyapex Diet Patches from Performance Marketing Ltd., following the Competition Bureau's first FairWeb case. As part of a consent agreement registered with the Competition Tribunal, Performance Marketing has agreed to refund consumers the full value of the diet patches. The diet patches cost between $39.95 (U.S.) and $109.95 (U.S.), depending on the package purchased. Performance Marketing made claims that the patches were a safe and natural weight-loss product, giving the false impression that without performing any physical exercise or dieting, a person could lose weight, reduce their appetite, control their cravings and speed up their metabolism. Performance Marketing also failed to enforce its anti-SPAM policy, which led to its affiliates' use of SPAM as a means of selling Performance Marketing's products. This is the Bureau's first case under Project FairWeb, a dedicated Internet surveillance and enforcement program aimed at combatting misleading and deceptive advertising found on the Internet. Launched in April 2004, FairWeb's initial focus has been on targeting misleading and unsubstantiated claims relating to bogus weight-loss products, including the Performance Marketing diet patches. Project FairWeb has also resulted in many suspect claims being removed from Web sites following notification from the Competition Bureau. According to the Consent Agreement with Performance Marketing, the company has agreed to:assure that SPAM is not used as a means of marketing its products;cease making any performance claims to the public unless the Competition Bureau agrees that the claims are based on adequate and proper tests; post a corrective notice on their Web site; and provide a full refund to those who purchased the diet patches. "The Internet is now a vast area of commerce. The opportunity exists for businesses to promote products using misleading claims on the Web," said Raymond Pierce, Deputy Commissioner. "Project FairWeb is the Bureau's response to this problem." Consumers can receive a full refund by contacting Performance Marketing at 1-800-777-6661. Performance Marketing sold the Zyapex and Dyapex Diet Patches through their affiliates and advertised on numerous Web sites hosted under a variety of URLs. A copy of the Consent Agreement, which includes a listing of these Web sites, is available on the Competition Tribunal Web site at: http://www.ct-tc.gc.ca The Competition Bureau wishes to express its appreciation for the cooperation and assistance provided by the U.S. Federal Trade Commission in the development of this case. The Competition Bureau is an independent law enforcement agency that ensures all Canadians enjoy the benefits of a competitive economy, low prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act, designed to improve the quality of information in the marketplace. FairWeb Backgrounder: http://strategis.ic.gc.ca/epic/internet/incb-bc.nsf/en/ct03017e.html - 30 - For media enquiries, please contact: Maureen McGrath Senior Communications Advisor Communications Branch (819) 953-8982, or (613) 296-2187 (cell) For general enquiries, please contact: Information Centre Competition Bureau (819) 997-4282 1-800-348-5358
