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Weight Watchers Settles Deceptive Ad Charge

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Bloomberg News

H.J. Heinz Co.’s Weight Watchers International Inc. settled long-standing federal deceptive advertising charges by agreeing to permanently trim the diet company’s claims about the success of its programs. The settlement, which requires that certain disclosures accompany weight-loss claims, formalizes a policy that Weight Watchers says it has followed since shortly after the Federal Trade Commission filed suit in 1993. The settlement marks the culmination of an FTC crackdown on U.S. diet programs. Weight Watchers’ biggest rivals--Jenny Craig Inc., Nutri/System Inc., Diet Center Inc. and Physician Weight Loss Centers Inc.--all have settled similar charges. The Weight Watchers case involved print and broadcast ads that ran from 1988 to 1992. According to the FTC, the ads were misleading because they used deceptive customer testimonials and made claims about weight-loss maintenance that the company couldn’t back up. Under the settlement, Weight Watchers ads that make claims about long-term weight loss must include disclosures about the actual experience of customers, plus the statement: “For many dieters weight loss is temporary.” Heinz shares rose 25 cents to close at $46.19 on the New York Stock Exchange.

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