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CONSUMER FRAUD: Spotting and Protecting Yourself Against It A General Primer : Health

Health and Fitness Clubs
Long-Term Care Insurance
Medical Quackery
Weight Loss

Health and Fitness Clubs ^ (back to top)

As more companies have become involved in the lucrative fitness industry, problems with health spas have grown.

Some health and fitness centers have closed their doors without warning their members while others never opened for business after taking consumers' money for memberships.

Many states are enacting legislation to regulate the operation of heath clubs which include provisions requiring:

  • Health clubs must register with the state and pay an annual filing fee.
  • Consumers have three days after signing a contract with a health spa to cancel the agreement. Health clubs are required to refund consumers' money within 30 days if the contract is canceled within three days.
  • Health clubs must provide for an extension (freeze period) of the consumer's membership for time lost due to a temporary disability. Contracts can be canceled if the consumer becomes permanently disabled or dies.
  • All health spa contracts must be in writing; contracts cannot exceed 36 months.
  • Consumers may cancel if their contracts don't contain provisions informing them of their right to a three-day cancellation period, cancellation due to death or permanent disability, and a freeze period.
  • All money collected before a club opening must be held in escrow, until the health club opens. Clubs that post a bond are exempt from this provision.
  • Consumers are not responsible for the balance due on a health club contract if the club has closed and failed to provide alternative services within 10 miles of the spa's original location.

Check with your local legal aid office, state and country bar associations, city or county consumer agency administrator, county prosecutor's office of consumer affairs or state Attorney General's office for brochures and explanations of specific laws in your state on this issue.

Long-Term Care Insurance ^

Long-term care refers to a wide range of services for persons who, due to chronic illness or infirmity, need help with everyday m activities for a long period of time.

Although long-term care traditionally has meant nursing home care, the full spectrum of long-term care services may include home health care, adult day care, respite care services care provided in congregate housing, aides/chore services, home delivered meals and friendly visiting services.

Long-term care insurance policies may or may not cover all of the above services. Each policy is different.

Before you buy any policy you must know what resource you need to take care of your long-term care needs.

Then you must consider what kind of coverage you need to buy. Be aware that there are some companies that prey on consumers. They will try to confuse you, sell you policies that not beneficial to you or sell you more insurance than you need. That is why it is essential you examine and carefully compare policies.

Here is a list of questions you should ask in comparing long-term care insurance policies:

  • Must I meet any special requirements before I go into the nursing home to receive benefits? If so, what are they?
  • Are there any special levels of care I must receive in a nursing home to be eligible for benefits?
  • Must I be in a certain type of nursing home to receive skilled, intermediate or custodial benefits? If so, what type? Does this type of nursing home exist in my area?
  • Are there any waiting or elimination periods before I can receive benefits after I am in a nursing home? If so, how long must I wait?
  • Must I meet any special requirements before I can receive home care benefits? Are such home care services available in my area?
  • Can the company cancel or refuse to renew my policy? If so, under what circumstances?
  • What happens if I fail to pay my premiums?
  • Can the company raise rates on my policy? If so, under what circumstances?
  • Does the policy provide benefits for:
  • Skilled care? Intermediate care? Personal/custodial care? Home care? Other?
  • How long may I receive benefits for:
  • Skilled care? Personal/custodial care? Intermediate care? Home care?
  • How much are my daily benefits for:
  • Skilled care? Personal/custodial care? Intermediate care? Home care?
  • What is the pre-existing condition limitation of this policy?
  • Does it apply to me?
  • What is not covered under this policy?
  • Does the policy cover Alzheimer's disease?
  • How much does this policy cost?
  • Per month? Per year?
  • What will the total cost be over a 10-year period? (Some plans may be inexpensive at first, but premiums may increase dramatically over time.)
  • Will I receive benefits if I have duplicate or other coverage?

For a full report on the problems and challenges of purchasing long-term care insurance read Avoiding Fraud When Buying Long-Term Care Insurance: A Guide For Consumers And Their Families.

Medical Quackery ^

Miraculous Cure for Baldness Discovered!

Ancient Secret of Youth Revealed!

Cellulite Guaranteed to Disappear in Days!

If you have been tempted by fabulous health claims like those above, don't be embarrassed. Each year thousands of consumers are bilked out of billions of dollars for bogus health products treatments.

The real tragedy of health quackery, however, cannot be measured in dollars. Rather, the greatest threat posed by these fraudulent schemes is that they may persuade people who are seriously ill to buy useless products rather than seek effective, proven medical treatment. Without proper medical treatment, diseases may progress, sometimes beyond treatable stages. In addition some bogus products themselves may be harmful.

Many medical quacks are easy to spot, but other health fraud promoters make promises that appear to be based on science, exploiting popular misconceptions about health to make a profit.

Telltale Signs

A healthy dose of skepticism and a little investigating can help you avoid wasting money or jeopardizing your health. To help spot health quackery watch for these signs:

  • Promises of a "quick and painless" cure.
  • Extraordinary promises such as a claim that a single remedy will cure all diseases.
  • A "special," "secret" or "ancient" formula available only for a short time and only from one supplier.
  • Testimonials reporting incredible medical results from "satisfied users," especially if no substantive medical support for the claim is offered.
  • The term "alternative." Promoters of questionable therapy often describe themselves as alternative healers or therapists. Some alternative healers do not follow accepted scientific protocol.
  • "Scientific breakthroughs" that a promoter says have been held back or overlooked by the medical community.

A government study on quackery found that a majority of all victims of health-care fraud are older persons, and the three largest areas for medical quackery are the aging process, arthritis and cancer.

The Fountain of Youth

In a youth-oriented society quacks find it easy to promote products that promise to stop or reverse the aging process. Be wary of claims that cosmetics erase wrinkles, vitamins enhance virility or creams reverse baldness.

Arthritis Remedies

More than 30 million Americans suffer from arthritis. Although there are legitimate, effective treatments for arthritis, there is no known cure. The Arthritis Foundation estimates that for every $1 spent on arthritis research, $25 is spent on quack "cures."

Diet and Weight

Weight-loss promotions are common in today's image-conscious society and, unfortunately, some unscrupulous businesses have taken advantage of the trend. In recent years health quacks have marketed "megavitamins" or other pills promising to give users perfect bodies in a short period of time or "body toning" devices that are advertised and sold as substitutes for exercise.

Cancer Cures

Cancer is a name given to a wide range of diseases requiring different forms of treatment as determined by a physician. There is no one treatment or medicine capable of treating all types of cancer. Medical science has been able to help many cancer patients, but use of a bogus remedy can delay proper diagnosis and treatment.

Metabolic Therapy

Older consumers should be especially cautious of "metabolic therapy," which operates under the premise that diseases are caused by a buildup of toxins in the body. The course of therapy often includes a combination of potentially dangerous "alternative" health procedures such as fasting or enemas.

Consumer, Beware

Before investing your money in a product or treatment, investigate thoroughly. Check with your doctor or other healthcare professional before starting new treatments or therapies.

Medical Quackery--For Information

American Cancer Society Unproven Methods
1599 Clifton Road NE
Atlanta, GA 30329
1-800-ACS-2345

Consumer Health Information Research Institute
3521 Broadway
Kansas City, MO 64111
1-800-821-6671

American Council on Science and Health*
1995 Broadway, 2nd Floor
New York, NY 10023
*There is a modest charge for booklets it provides.

Weight Loss ^

Looking for a quick and easy way to lose weight?

You're not alone.

An estimated 50 million Americans will go on diets this year. And while some will succeed in taking off weight, very few--perhaps 5 percent--will manage to keep all of it off in the long run.

One reason for the low success rate is that many people look for quick and easy solutions to their weight problems. They find it hard to believe in this age of scientific innovations and medical miracles that an effortless weight-loss method doesn't exist.

So they succumb to quick-fix claims like "Eat All You Want and Still Lose Weight!" or "Melt Fat Away--While You Sleep!" And they invest their hopes and their money in all manner of pills, potions, gadgets and programs that hold the promise of a slimmer, happier future.

The weight-loss business is a booming industry. Trying to sort out all of the competing claims--often misleading, unproven or just plain false --can be confusing and costly. Here are the facts behind the claims to help you avoid outright scams and to encourage you to consider thoroughly the costs and consequences of dieting decisions you make.

Weight-Loss Facts

Being obese can have serious health consequences. These include increased risk of heart disease, stroke, high blood pressure, diabetes, gallstones and some forms, of cancer. Losing weight can help reduce these risks. Some points to remember:

  • Any claims that you can lose weight effortlessly are false. The only proven way to lose weight is either to reduce the number of calories you eat or to increase the number of calories you burn off through exercise. Most experts recommend both.
  • Extreme low-calorie diets are risky and should be pursued only under medical supervision. When unsupervised, they can deprive you of important nutrients and potentially are dangerous.
  • Fad diets rarely have any permanent effect. Sudden and radical changes in your eating patterns are difficult to sustain over time. In addition, so-called "crash" diets often send dieters into a cycle of quick weight loss, followed by a "rebound" weight gain once normal eating resumes, and even more difficulty reducing when the next diet is attempted.

To lose weight safely and keep it off requires long-term changes in daily eating and exercise habits. Many experts recommend a goal of losing about a pound a week. A modest reduction of 500 calories per day will achieve this goal - a reduction of 3,500 calories is required to lose one pound of fat.

In Search of the Magic Bullet

Some dieters peg their hopes on pills and capsules that promise to "burn," "block," "flush" or otherwise eliminate fat from the system. But science has yet to come up with a low-risk "magic bullet" for weight loss. Some pills may help control the appetite, but they can have serious side effects. (Amphetamines, for instance, are highly addictive and can have an adverse impact on the heart and central nervous system.) Other pills are utterly worthless.

The FTC successfully has challenged marketers of pills claiming to absorb or burn fat. The FDA has banned 111 ingredients once found in over-the-counter diet products. None of these substances, which include alcohol, caffeine, dextrose and guar gum, has proved effective in weight-loss or appetite suppression. Beware of these products that are touted as weight-loss wonders:

  • Diet patches, which are worn on the skin, have not been proved to be safe or effective.
  • "Fat blockers" purport physically to absorb fat and mechanically to interfere with the fat a person eats.
  • "Starch blockers" promise to block or impede starch digestion. Not only is the claim unproven, but users have complained of nausea, vomiting, diarrhea and stomach pains.
  • "Magnet" diet pills allegedly "flush fat out of the body."
  • Glucomannan is advertised as the "Weight Loss Secret That's Been in the Orient for Over 500 Years." There is little evidence supporting this plant root's effectiveness as a weight-loss product.
  • Some bulk producers or fillers, such as fiber-based products, may absorb liquid and swell in the stomach, thereby reducing hunger. Some fillers, such as guar gum, can prove harmful, causing obstructions in the intestines, stomach or esophagus.
  • Spirulina, a species of blue-green algae, has not been proved effective.

Phony Devices and Gadgets

Phony weight-loss devices range from those that are simply ineffective to those that are truly dangerous to your health. At the very least they are a waste of your hard-earned money. Some of the fraudulent gadgets that have been marketed to hopeful dieters include:

  • Electrical muscle stimulators have legitimate use in physical therapy treatment. But the FDA has taken a number of them off the market because they were promoted for weight loss and body toning. When used incorrectly, muscle stimulators can be dangerous, causing electrical shocks and burns.
  • Appetite suppressing eyeglasses are common eyeglasses with colored lenses that claim to project an image to the retina that dampens the desire to eat. There is no evidence these work.
  • Magic weight-loss earrings and devices custom-fitted to the buyer's ear that purport to stimulate acupuncture points controlling hunger have not been proved.

Diet Programs

About 8 million Americans a year enroll in some kind of structured weight-loss program involving liquid diets, special diet regimens or medical or other supervision. Before you join such a program you should know that, according to published studies, relatively few participants succeed in keeping off weight long term. Before you sign up with a diet program, you might ask these questions:

  • What are the health risks?
  • What data can you show me that proves your program works?
  • Do customers keep off the weight after they leave the program?
  • What are the costs for membership, weekly fees, food, supplements, maintenance and counseling? What's the payment schedule? Are any costs covered under health insurance? Do you give refunds if I drop out?
  • Do you have a maintenance program? Is it part of the package or does it cost extra?
  • What kind of professional supervision is provided? What are the credentials of these professionals?
  • What are the program's requirements? Are there special menus or foods, counseling visits or exercise plans?

Weight Maintenance Tips

Losing weight may not be effortless, but it doesn't have to be complicated. To achieve long-term results, avoid quick-fix schemes and complex regimens. Focus instead on making modest changes to your exercise and diet routines. Although nutrition science is evolving, here are some generally accepted guidelines for losing weight:

  • Consult with your doctor, a dietitian or other qualified health professions to determine your ideal healthy body weight.
  • Eat smaller portions and choose from a variety of foods.
  • Load up on high-fiber foods: fruits, vegetables, legumes and whole grain.
  • Limit portions of foods high in fat: dairy products such as cheese, butter and whole milk; red meat; cakes; and pastries.

For Help or to File Complaints

Your state's Attorney General has authority under state consumer protection statutes to investigate and prosecute unfair or deceptive acts and practices. He also has the power to seek consumer restitution, civil fines and revocation of a firm's authority to do business.

Federal Trade Commission, 202-326-2000
Correspondence Branch
Washington, D.C. 20580

The FTC has jurisdiction over the advertising and marketing of foods, non-prescription drugs, medical devices and health care services. The FTC can seek federal court injunctions to halt fraudulent claims and obtain redress for injured consumers.

Food and Drug Administration, 301-443-3170
Office of Consumer Affairs, Room 1663
5600 Fishers Lane, HFE-88
Rockville, MD 20857

The FDA has jurisdiction over the content and labeling of foods, drugs and medical devices. It can take law enforcement action to seize and prohibit the sale of products that are falsely labeled.


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