ACCC wins continued freeze on diet spray company’s assets

The Australian Competition and Consumer Commission has won a continued freeze on the assets of beleaguered diet spray company SensaSlim until the end of August.

But SensaSlim has warned it has no money other than frozen bank accounts.

Justice Jacobson in the Federal Court in Sydney said yesterday that the court would quickly consider evidence by SensaSlim on how much money it needs to continue operating, thereby allowing the company to draw money from its account to obtain legal advice and to contest the ACCC proceedings.

Meanwhile, Slater & Gordon is continuing to investigate whether franchisees who paid $60,000 for the rights to resell the company’s product can take action against SensaSlim.

The franchisees began exploring a class action after the ACCC won an interim order to freeze SensaSlim’s assets last week, alleging it had misled and deceived consumers.

The franchisees’ lawyer, Van Moulis of Slater & Gordon, told SmartCompany this morning that it was co-operating with the competition regulator, and awaiting the ACCC’s decision on whether to seek compensation claims on behalf of investors.

“If the ACCC decides not to proceed in a claim for compensation, I’ll bring our case,” Moulis said.

Concerns about the company’s research were highlighted this week, with The Age reporting that people listed as executives were actually doctors from the United States, who say they have nothing to do with the company.

According to its website, SensaSlim offers country or master distributorships, and claims its product is “the most effective slimming solution available in the world today”, with a global trial of more than 11,400 people showing an average weight loss of 15 kilograms.