The Federal Court has found SensaSlim guilty of misleading and deceptive conduct by deliberately failing to disclose conman Peter Foster’s involvement in the business in its Franchise Disclosure Document.

Previous Court orders prevented Mr Foster from being knowingly concerned in the promotion or conduct of any business relating to weight loss, cosmetic or health industry products or services. The evidence in this matter convinced the Court that Mr Foster was the puppeteer who pulled all the strings in SensaSlim.

The Court also found that the business made false and misleading representations about:

  • the role of SensaSlim officers Peter O’Brien and Michael Boyle, who were just front men used by Mr Foster;
  • the company’s worldwide clinical trial, which was a fabrication and intended to lead prospective franchises into false belief about the effectiveness of the SensaSlim product; and
  • the earning potential of the franchises.

 

The full judgment of the Federal Court can be found here.

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