$1,375,000 Settlement Reached with Online Nutrition Company

Phoenix, Arizona - A record $1,375,000 settlement has been reached between the Arizona Attorney Generals office and Central Coast Nutraceuticals, Inc. (CCN) and its owner, Graham Gibson, of Phoenix. The settlement resolves a consumer fraud lawsuit that alleged deceptive online sales practices by CCN. Under the terms of the settlement, which takes the form of a Consent Judgment, CCN will pay $1 million in civil penalties to the state, $350,000 in consumer restitution and $25,000 to cover the states legal and investigative costs. After receiving hundreds of consumer complaints, Goddard brought the lawsuit against CCN in December 2008. In it he alleged that CCN used a variety of deceptive tactics marketing low-cost risk-free trial offers of health supplements. According to the complaints, consumers who purchased the low-cost risk-free trial offers of CCNs health supplements were also charged for costly products and services that they did not request. These included pre-selected up-sell products that the consumer had to actively de-select in the online order form to avoid being charged. When consumers tried to contact CCN regarding the unauthorized charges, they often faced hold times over an hour and their e-mails never received a response. In addition to the financial settlement, the agreement prohibits CCN from violating the Arizona Consumer Fraud Act. It also requires the company to clearly disclose to consumers the consequences involved with ordering a trial product from CCN. Consumers who believe they were the victim of CCNs deceptive marketing must file a complaint with the Arizona Attorney Generals Office by close of business on Monday, August 17 to be eligible for restitution from the settlement. If consumers have already filed a complaint with this office, they will be included in the pool of eligible consumers. For more information, contact Consumer Information and Complaints via phone at 602.542.5763 or 800.352.8431 or via email at consumerinfo@azag.gov.