Company to pay $3.5M in FTC settlement over weight-loss claims of green coffee extract

Applied Food Sciences Inc. has agreed to pay $3.5 million to settle Federal Trade Commission charges that it used the results of a flawed weight-loss study to help push its green coffee extract to retailers.

Green coffee refers to the unroasted seeds or beans of coffee.

The FTC said Monday that the study said the dietary supplement Green Coffee Antioxidant caused substantial weight and fat loss. The study was featured on "The Dr. Oz Show" and the company afterward issued a press release highlighting that. But the FTC said that the study was so flawed that no reliable conclusions could be drawn from it.

Applied Food did not immediately respond to an email seeking comment.

The company, which is privately held, sells a green coffee ingredient used in dietary supplements and foods. Aside from the $3.5 million payment, the proposed settlement requires the Austin, Texas company to have scientific evidence for any future weight-loss claims.