Mannatech Charged as Illegal Marketing Scheme
Texas Attorney General Greg Abbott today charged Coppell-based Mannatech, Inc., its owner, Samuel L. Caster, and several related entities with operating an illegal marketing scheme in violation of state law. 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.Documents filed in Travis County district court reveal Mannatech's scheme to exploit families, including those challenged by cancer, Down’s syndrome, cystic fibrosis and other serious illnesses. According to investigators, exaggerated claims about the therapeutic benefits of Mannatech's dietary supplements and nutritional products were unlawfully used to increase sales. The attorney general’s enforcement action asserts that Mannatech’s deceptive practices pose a health risk to seriously-ill consumers who may forgo traditional medical attention because of the company's false claims.
Today's lawsuit charges Mannatech with encouraging their salespersons' false statements by allowing sellers to continue utilizing various sales tools, brochures, videotapes and personalized Web sites that exaggerate the supplements' effectiveness. According to investigators, the defendants encourage product user “testimonials” that tout their supplements’ alleged healing effects. These exaggerated testimonials, along with misleading “before and after” photos, are displayed prominently in seminar booths, brochures, videos, sales associates’ personal Web sites and training materials. Together, these marketing techniques mislead consumers into believing that the supplements dramatically cure or treat serious illnesses.
The lawsuit promises to be interesting as it accuses Mannatech of systemically trying to divorce itself from marketing techniques it knows to be illegal under Texas law.
