Harrisburg, Pa. - A Pennsylvania-based company will pay $700,000 to address more than 3,500 complaints it failed to deliver weight loss products and services to consumers, according to Attorney General Tom Corbett.

Corbett said a consent decree was reached with Pure Weight Loss, Inc., of Horsham, PA (formerly known as L.A. Weight Loss Centers, Inc.), along with the company’s owner and president, Vahan Karian.

Corbett said the agreement requires the payment of $500,000 to consumers who pre-paid for products and services that were not delivered and who filed valid complaints with the attorney general’s office.

The agreement also sets aside $200,000 in a secure fund, which will be used to provide restitution to consumers who filed claims in the U.S. Bankruptcy Court case involving Pure Weight Loss.

Corbett said his office began receiving complaints about Pure Weight Loss in December 2007, shortly after the company announced plans to close more than 400 weight loss centers across the country. The company halted operations on January 4th, 2008 and filed for bankruptcy.

Corbett said the majority of consumers who contacted his office had purchased contracts lasting a year or more, paying as much as $2,000 for “lite bars” and other food items that were never delivered.

 

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