Last week, Pennsylvania’s Attorney General filed a consumer protection lawsuit against the PA-based company Pure Weight Loss and its owner, Vahan Karian. Pure Weight Loss, which has about 400 stores nationwide, announced last December that it was going out of business, and yet continued to accept pre-payment from unaware customers up to four days after posting the announcement on its website. Since closing, it has failed to reimburse customers fees for unfulfilled contracts or deliver the supplies they’ve already bought.
According to the lawsuit, Pure Weight Loss continued to aggressively market long-term contracts for weight loss services in the fall and winter of 2007, despite numerous financial difficulties, including tax liens, legal judgments and lawsuits against the company filed in several states.
To date, Corbett said the Attorney General’s Health Care Section has received more than 850 claims from consumers approaching $500,000 for undelivered Pure Weight Loss products or services. The average claim by consumers is $880, though some consumers paid in excess of $2,000 for goods and services which were not delivered.
The lawsuit against Pure Weight Loss and Mr. Karian seeks full restitution for all consumer claims, along with civil penalties of up to $1,000 per violation – or $3,000 for violations involving senior citizens.
(Thanks to Patrick!)