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Jason Pharmaceuticals, Inc. Reaches Proposed Consent Agreement with FTC
Date:7/26/2012

OWINGS MILLS, Md., July 26, 2012 /PRNewswire/ -- Jason Pharmaceuticals, Inc. (the "Company") a subsidiary of Medifast, Inc. (NYSE: MED), a leading United States manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, today announced that it has reached a proposed consent agreement with the Federal Trade Commission ("FTC"), resolving the FTC's non-public investigation of certain statements in the Company's advertising for its weight-loss programs.   

(Logo:  http://photos.prnewswire.com/prnh/20120613/NE24271LOGO-b )

The new agreement will replace a previous consent order entered into by the Company and the FTC in 1992.  The FTC expressed concern that some of the Company's advertising contained claims which were not compatible with current standards for substantiation.  For example, in line with the FTC's recently published consumer research, the FTC objected to the Company's use of the words "up to" in conjunction with advertised weight loss claims. 

As a leader in the weight loss industry, the Company remains committed to fairly providing consumers with as much information as possible, and has agreed to modify certain advertising claims in this regard.  In addition, the Company has agreed to ensure that its clinical studies meet the protocol contained in the proposed consent agreement.  The Company agreed to pay a civil penalty of $3.7 million, without conceding any wrongdoing or liability, to resolve the FTC's concerns and avoid protracted legal proceedings.  The proposed consent agreement must be accepted by the FTC and submitted for approval to a federal district court before it becomes effective.

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In a separate news release issued today, Medifast, Inc. announc
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SOURCE Medifast, Inc.
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