06-05-2009, 04:57 AM
From the same Wikipedia article:
Texas Attorney General civil complaint
Mannatech came under investigation by the Texas Attorney General on October 27, 2006 for alleged violations of that state's Deceptive Trade Practices Act. [15] In response to this criticism, Mannatech’s founder and chief executive officer at the time, Samuel L. Caster, offered his view: "We walk the fine line of always stating our case appropriately and always training our people: We're not into the treatment, cure or mitigation of disease. We're into the improvement of quality of life. Now, who can benefit from good nutrition? Sick people, well people, everybody. Everybody benefits from good nutrition." [15] On July 5, 2007, Texas Attorney General Greg Abbott formally charged Mannatech, Inc., Sam Caster, and several related entities with operating an illegal marketing scheme in violation of state law. A press release stated, "Today’s enforcement action stems from a large-scale investigation by state authorities, who examined Mannatech’s dubious claims about the health benefits of its products." [3] In response to the civil complaint, Mannatech expanded its compliance department and began to provide periodic reports to the Attorney General's office to ensure that the marketing efforts of its affiliate network adhere to appropriate guidelines. [4] Mannatech settled the civil complaint on February 26, 2009 by agreeing to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case. In addition, Sam Caster agreed to pay a $1 million civil penalty and steer clear of any type of leadership position or employment relationship with Mannatech for five years. [16] When discussing the settlement at a news conference, Abbot stated, "Bottom line, this is a warning to the general public: Be wary of phony claims of magic cure-all pills or false hope in a bottle. You could be duped into purchasing something that has no real effect and no real value." [17] Mannatech did not admit wrongdoing; settling was easier than debating Abbott, according to current CEO Wayne Badovinus. "If they do it again, we will ensure they get put out of business," Abbott said. [18]
Choice quotes from the above:
"We're not into the treatment, cure or mitigation of disease." - Mannatech
"Be wary of phony claims of magic cure-all pills or false hope in a bottle. You could be duped into purchasing something that has no real effect and no real value." - Texas Attorney General
"If they do it again, we will ensure they get put out of business" - Texas Attorney General
Texas Attorney General civil complaint
Mannatech came under investigation by the Texas Attorney General on October 27, 2006 for alleged violations of that state's Deceptive Trade Practices Act. [15] In response to this criticism, Mannatech’s founder and chief executive officer at the time, Samuel L. Caster, offered his view: "We walk the fine line of always stating our case appropriately and always training our people: We're not into the treatment, cure or mitigation of disease. We're into the improvement of quality of life. Now, who can benefit from good nutrition? Sick people, well people, everybody. Everybody benefits from good nutrition." [15] On July 5, 2007, Texas Attorney General Greg Abbott formally charged Mannatech, Inc., Sam Caster, and several related entities with operating an illegal marketing scheme in violation of state law. A press release stated, "Today’s enforcement action stems from a large-scale investigation by state authorities, who examined Mannatech’s dubious claims about the health benefits of its products." [3] In response to the civil complaint, Mannatech expanded its compliance department and began to provide periodic reports to the Attorney General's office to ensure that the marketing efforts of its affiliate network adhere to appropriate guidelines. [4] Mannatech settled the civil complaint on February 26, 2009 by agreeing to pay $4 million in restitution to clients who purchased products and $2 million to the state to cover its costs in the case. In addition, Sam Caster agreed to pay a $1 million civil penalty and steer clear of any type of leadership position or employment relationship with Mannatech for five years. [16] When discussing the settlement at a news conference, Abbot stated, "Bottom line, this is a warning to the general public: Be wary of phony claims of magic cure-all pills or false hope in a bottle. You could be duped into purchasing something that has no real effect and no real value." [17] Mannatech did not admit wrongdoing; settling was easier than debating Abbott, according to current CEO Wayne Badovinus. "If they do it again, we will ensure they get put out of business," Abbott said. [18]
Choice quotes from the above:
"We're not into the treatment, cure or mitigation of disease." - Mannatech
"Be wary of phony claims of magic cure-all pills or false hope in a bottle. You could be duped into purchasing something that has no real effect and no real value." - Texas Attorney General
"If they do it again, we will ensure they get put out of business" - Texas Attorney General