When you buy a food product or a dietary supplement, you should be
confident that the product’s ingredients are listed on the label, and
that you’re getting what you paid for. Federal prosecutors say that one
dietary supplement wholesaler in New Jersey spent four years selling
products diluted with products like maltodextrin or rice flour,
increasing profits but defrauding customers. The company’s owner now
must forfeit $1 million in profits and has been sentenced to 40 months
in prison and one year of supervised release.
The company’s name, Raw Deal Inc., was unintentionally appropriate,
with a double meaning referring to trendy “raw” nutrients and a common
expression that means a bad deal. It was the company’s customers who got
an actual raw deal: they were buying diluted products that didn’t
contain the substances that distributors had paid for. During the four
years that this scheme operated, the company earned a profit of between
$7 and $20 million.
Supplement-Maker Who Diluted Products With Other Powders Sentenced To 40 Months In Prison – Consumerist
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