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Healthcare company wound up after making misleading claims about supplements for elderly (11 March 2016)

Date: 11/03/2016
Duncan Lewis, Crime Solicitors, Healthcare company wound up after making misleading claims about supplements for elderly

A Middlesex-based company which made false and misleading claims in persuading the elderly and vulnerable to purchase health supplements has been wound up by the High Court.

Wellness 2020 Ltd had purchased data lists from third party suppliers containing details of UK-based individuals over the age of 65 with restricted mobility.

The company used a call centre in Goa in India to make unsolicited calls to the individuals on the data lists, to sell them a range of health supplements.

The investigation found that the company’s customers – many of whom were suffering from severe medical conditions such as acute arthritis, osteoporosis or dementia – were subjected to lengthy telesales calls in which the callers gave the impression they were healthcare professionals who were promoting a local healthcare campaign.

After customers had agreed to purchase supplements – typically at a price of £15 per box – they were transferred to a supervisor at the call centre who would inform them that it was necessary to take a course of supplements.

Many customers were then charged several thousand pounds – including one customer who paid £5,154 for 223 boxes of supplements over a four-month period. Other customers were sold so many supplements that the products were beyond their expiry date before completion of the recommended course of supplements.

Customers were also falsely told that they would see a significant reduction in pain levels and improvements to their health of up to 85% by the end of the course.

In one instance, a customer was sold health supplements for his dog, even though the product was for human consumption.

The company made unauthorised deductions from customers’ bank accounts by charging for more supplements than had been ordered – or processed additional orders without customer consent.

The company also operated in breach of consumer protection legislation by failing to disclose the commercial nature of the call at the beginning of the telesales call – and by failing to disclose the customers’ statutory cancellation rights.

Investigation Supervisor with the Insolvency Service, Colin Cronin, said:

“Wellness 2020 Ltd caused considerable distress to elderly and vulnerable people, using highly manipulative and misleading sales techniques to sell large quantities of overpriced supplements.

“The company’s sales representatives made claims about the health benefits and pain reduction qualities of the health supplements which had no medical basis – and implied they had medical experience when they had absolutely none.

“These winding-up proceedings show that The Insolvency Service will take firm action against companies which systematically mislead the public in this way.”

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