Guest guest Posted December 4, 2010 Report Share Posted December 4, 2010 Mannatech settlement documents posted. Casewatch has posted documents from last year's settlement of charges brought by the Attorney General of Texas against Mannatech, Inc. and its founder and former chief executive officer, Caster. [barrett S. Mannatech and founder agree to pay $7 million to settle Texas Attorney General charges. MLM Watch, Dec 3, 2010] The complaint, filed in 2007, charged Mannatech and Caster with orchestrating an unlawful marketing scheme that exaggerated their products' health benefits. The complaint alleged: **Marketing materials falsely claimed that Mannatech's dietary supplements could cure and treat Down Syndrome, cystic fibrosis, cancer, and other serious illnesses. **Mannatech encouraged their salespersons' false statements by allowing sellers to continue utilizing various sales tools, brochures, videotapes, and personalized Web sites that exaggerate the supplements' effectiveness. **Mannatech encourage product user " testimonials " that tout their supplements' alleged healing effects. The testimonials, along with misleading " before and after " photos, were displayed prominently in seminar booths, brochures, videos, sales associates' personal Web sites, and training materials. **Together, these marketing techniques misled consumers into believing that the supplements dramatically cure or treat serious illnesses. Under the settlement, signed in February 2009, the defendants agreed: **Mannatech would pay $6 million to the State of Texas. Of this, $2 million was designated as attorneys fees and investigative costs and the remainder would be placed in a fund from which Texas customers can obtain restitution. **Mannatech would implement a comprehensive monitoring and compliance program that will monitor sales associates' statements about Mannatech's products and would not advertise or otherwise claim that its dietary supplements can cure, treat, mitigate, or prevent disease. **Caster would pay a $1 million civil penalty and cannot serve as an officer, director, or employee of Mannatech for the next five years. The documents are linked from http://www.mlmwatch.org/04C/Mannatech/texas_settlement.html Quote Link to comment Share on other sites More sharing options...
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