TrimSpa
TrimSpa was a dietary supplement designed for weight loss, marketed by the company Goen Technologies and headed by Alexander Szynalski.[1] The ephedra-based supplement was marketed by TrimSpa to help "stave off hunger",[2] until ephedra was banned from the United States. TrimSpa's parent company, Goen Technologies, filed for bankruptcy protection in May 2008.
Company
TrimSpa started sales in 2001. After hiring spokeswoman Anna Nicole Smith, sales jumped to $43 million by 2004. Sales fell to $19.5 million by 2006.[3]
TrimSpa's parent company, Goen Technologies, filed for bankruptcy protection in May 2008. Goen Technologies owed unsecured creditors debts up to $33 million and had only $1.23 million in assets.[citation needed]
In September 2008, it was decided by a judge to turn the case into Chapter 7 liquidation. At its peak, TrimSpa brought in $141 million sales, with $17 million operating profits.[4] In October 2008, it was decided that the remaining assets of the business would go up for auction, including thousands of TrimSpa bottles, two custom motorcycles, two custom vans with Anna Nicole Smith painted on them, an Indy-style race car, and various items of office equipment.[citation needed]
Composition
TrimSpa's key ingredient was ephedra and caffeine. The government expressed health concerns, advising against the use of ephedra in 2003, causing the company to seek a new formula.[5] The company changed its formula, making hoodia gordonii the prominent ingredient. The formula was rebranded as TrimSpa X32. In 2007, a class-action lawsuit came forward seeking an injunction against the company from advertising its formula as an effective weight loss product.[6]
Federal Trade Commission fine for false claims
On January 4, 2007, the U.S. Federal Trade Commission announced that the marketers of TrimSpa had agreed to pay a settlement of $1.5 million in response to an FTC complaint of making unsupported claims in advertisements and were prohibited "from making any claims about the health benefits, performance, efficacy, safety, or side effects of TrimSpa, Hoodia gordonii, or any dietary supplement, food, drug, or health-related service or program, unless the claims are true, not misleading, and substantiated by competent and reliable scientific evidence." The FTC also announced similar settlements with the marketers of Xenadrine EFX, CortiSlim, and One-A-Day WeightSmart.[7]
Over-the-counter disclaimer
The original TrimSpa and the new TrimSpa X32 are dietary supplements, regulated by the U.S. Food and Drug Administration (FDA). The FDA regulates dietary supplements under different rules than those governing prescription medicines and other over-the-counter products.[8] Under these regulatory rules, TrimSpa products' safety and effectiveness are not reviewed by the FDA. Rather, TrimSpa's original parent company, Nutramerica Corp., and its original marketer and manufacturer, Goen Technologies Corp., were responsible for ensuring that their products were safe for public consumption. These same rules apply to the new owners.
Celebrity endorsements
Anna Nicole Smith and Melissa D. Gordon were spokesmodels for the product.
See also
References
- ^ "Breaking Celeb News, Entertainment News, and Celebrity Gossip". E! Online. Retrieved 12 December 2017.
- ^ TrimSpa.com. Product Information. Last accessed July 13, 2007.
- ^ writer, By Jessica Dickler, CNNMoney.com staff. "Is there a TrimSpa after Anna Nicole Smith? - Feb. 8, 2007". money.cnn.com. Retrieved 2017-08-29.
{{cite web}}:|first=has generic name (help)CS1 maint: multiple names: authors list (link) - ^ "Goodbye, Anna Nicole: TrimSpa parent to be liquidated". NJ.com. Retrieved 2017-08-29.
- ^ "CNN.com - Government announces ban on ephedra - Dec. 31, 2003". edition.cnn.com. Retrieved 2017-08-29.
- ^ "CalorieLab » Nibbles: TrimSpa in class-action suit". calorielab.com. Retrieved 2017-08-29.
- ^ Federal Trade Commission. Federal Trade Commission reaches “New Year’s” resolutions with four major weight-control pill marketers (4 January 2007).
- ^ United States Food & Drug Administration. "Dietary Supplements." Last updated July 6, 2007. Last accessed July 13, 2007.