DOJ files charges against dietary supplements makers and marketers
The Justice Department announced Tuesday that it filed criminal and civil enforcement charges against companies and individuals involved in illegal advertising and sale of dietary supplements.
According to The New York Times the Department of Justice along with the health and anti-trust regulators filed charges against 117 companies and individuals as part of a widespread crackdown on the sale and marketing of misleading products. One of the major companies involved in the case is the USPlabs in Dallas. The company's best-selling products are Jack3d and OxyElite Pro, which are popular workout supplements. These products contain the stimulant dimethylamylamine (DMAA), which can be compared to amphetamine. Federal prosecutors filed criminal charges against six of the company's executives for the sale of the said products.
NPR reported that the DOJ said in a statement that the companies charged sold supplements that has unlisted ingredients or made health claims that are not properly supported by scientific evidences. Principal Deputy Assistant Attorney General Benjamin C. Mizer said, federal authorities are working together to bring to justice the companies and individuals who make money by threatening consumer's health.
Mizer said, "The USPlabs case and others brought as part of this sweep illustrate alarming practices the department found - practices that must be brought to the public's attention so consumers know the serious health risks of untested products."
Meanwhile, Reuters reported that Dietary supplement firm GNC Holdings Inc's shares dropped 20 percent. Meanwhile, Vitamin Shoppe shares went down almost 8 percent. Also, Herbalife Ltd's shares are down 3 percent.
USPlabs is accused of misleading costumers and wholesalers, saying they use natural plant extracts, when they really use Chinese-made synthetic stimulant. OxyElite Pro leads to liver injuries and one death. The product is said to increase strength, endurance, and speed. The products suddenly become very popular among workout enthusiasts. Two soldiers died from using Jack3d in 2011, leading the Defense Department to prohibit the use products with DMAA in military bases.
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