Dietary supplement marketer seeks Chapter 11 protection

PORTLAND – A dietary supplement marketer that agreed to pay its customers $1 million after being accused of running misleading infomercials has sought Chapter 11 bankruptcy protection.

Vital Basics Inc. President Rob Graham said the time his company spent settling Federal Trade Commission charges about its marketing – and the $1 million it agreed to repay customers – drained resources from its daily operations.

The company said in Chapter 11 court filings that it owes 3,000 individuals and businesses, including 50 in Maine, a total of $16.3 million. The company said it wants to ensure it can keep paying bills and continue operations in the face of costly legal proceedings.

Vital Basics, which formerly operated as Talk America, promotes dietary supplements called Focus Factor and V-Factor. The FTC said advertisements about the products made claims about their benefits that were not backed by scientific evidence.

Some of the advertised claims were that Focus Factor would improve memory and concentration for everyone from schoolchildren to elderly people, and that V-Factor would enhance sexual performance in men.

Vital Basics did not admit guilt as part of the $1 million settlement with the FTC. But the government characterized the payment as a victory in its effort to crack down on misleading marketing of dietary supplements.