Would-be slimmers who used the now-discredited Swiss Slimming and Health Institute's services can seek refunds after Australian Competition and Consumer Commission action.
Under Federal Court orders handed down by Justice Wilcox, Swisslim and its director Gerhard Hassler were found to have engaged in promotions of slimming services which were misleading and deceptive. Extensive advertising by the Institute claimed that weight loss could be easily achieved by 'body wraps' - where a slimmer sat wrapped in cold bandages.
In fact, any weight loss achieved could be attributed to a harsh dieting regime slimmers were encouraged to follow under the program. In his judgment, Justice Wilcox commented that the information given to the clients about the regime 'is all a nonsense'.
'They all go in there but then they sign up and there seems to be consistent theme through the ones I have looked at and they are told, this is the deal, no worry about diets, they are then put on what is called a detoxification program, which make it sound even more horrible than calling it a diet, and they are told to eat fruit and vegetables for a week. Now, there is no real surprise if during that they lose some weight.'
The ACCC took representative action on behalf of more than 1,000 Institute clients who were enticed to join the program through 'hard-sell' tactics by Institute staff which often played on individuals' insecurities about their weight. During the course of the ACCC action, the Court agreed to freeze assets held by the Institute and Hassler, including cars, a motor cycle and bank accounts.
These assets will be available for part-refund of the clients' claims The ACCC has been ordered by the Court to write to all Swisslim clients so the clients can advise the ACCC of how much they spent on Swisslim services to assist the ACCC and the company's liquidator to calculate any refund which may be available. 'I urge Swisslim clients to get in touch with the ACCC, if they have not already done so,' ACCC Chairman, Professor Allan Fels, said today.
'Clients have spent thousands on these worthless treatments'.