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The feed will include Attorney General Corbett discussing allegations against Pure Weight Loss and its owner, as well as steps that the Attorney General's Bureau of Consumer Protection is taking to assist consumers.
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A full press release follows:
FEED DATE: Thursday, Jan. 24 2008
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Attorney General Corbett announces consumer protection lawsuit over sudden closure of Pure Weight Loss chain; refunds sought for hundreds of consumers
HARRISBURG -- Attorney General Tom Corbett today announced the filing of a consumer protection lawsuit against Pure Weight Loss, a national chain of weight loss centers based in Horsham, Montgomery County, along with company owner Vahan Karian, also known as Varhan Karabajakian.
Corbett said the lawsuit was filed against the company, as well as Mr. Karian personally, alleging deceptive marketing and sales of long-term contracts for weight loss supplements, pre-packaged food and weight loss counseling services. According to the lawsuit, Mr. Karian, as President, sole owner and sole shareholder of the company, was a co-participant in this deception and shares a responsibility for consumer losses.
Corbett said that in December 2007 Pure Weight Loss suddenly announced plans to close approximately 400 stores across the country, including 47 locations in Pennsylvania. The closure of the chain resulted in more than 850 complaints from consumers who had prepaid as much as $2,000 for food products and services that were never delivered.
"Taking money from consumers for goods that cannot be delivered is a clear violation of Pennsylvania's Consumer Protection law," Corbett said. "In this case, we believe that Pure Weight Loss continued to sell long-term contracts to consumers even after it was clear, or should have been clear, that those contracts could not be satisfied."
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.
Additionally, Corbett said that the company allegedly continued to sell contracts even after announcing plans to close all of their stores. According to consumer complaints received by the Health Care Section, Pure Weight Loss stores were accepting pre-payment from consumers as late as December 18, 2007, four days after the company posted a notice on their website that all of their stores would be closed.
Corbett said that consumers were allegedly encouraged to purchase long-term contracts, many lasting a year or more, and were promised the regular delivery of weight loss products as they were needed. Consumers pre-paid for these services, often paying several hundred dollars in advance.
Corbett said that following the closure announcement, consumers were instructed by Pure Weight Loss to pick up products from their stores prior to January 4, 2008, or file a claim for refunds -- but the defendants failed to pay refunds to all consumers or provide all of the products or services which had been purchased.
Corbett also noted that following the closure, the Pure Weight Loss website instructed
