This past Friday, I had the opportunity to speak to Graham Gibson, of Central Coast Nutraceuticals , who is the target of a FTC investigation charging, among other things, with deceptive advertising and consumer fraud. He had reached out to me that day, wanting to make sure that his side of the story was told. I have to admit that at the time I wasnt sure I wanted to call him before the FTC revealed its case against him. Weve seen the press releases every time some peddler is charged with a crime, they all say the same thing they didnt do this, they didnt commit these crimes, they didnt defraud consumers, the FTC has it all wrong. So, while I was going to call him eventually to get his side of the story, I wasnt in any hurry. Im glad I called because Mr. Gibson has a real story to tell, and strange enough doesnt completely deny the charges against him and his company.

Central Coast (BBB “F” Rating Here) sells Nutraceuticals which is a made up word for diet and supplement related products that fall under a wide-berth of products from stuff to flush out your rear-end to berries that make you constantly erect supposedly. They are not to be confused with Neuticals, which are a brand of testicle replacement for Dogs. The comapny should also not be confused with Central Coast Pharma which Gus from Psych works for. For while they employed over 150 people in Phoenix Arizona and were one of the top suppliers of Acai related diet products. The model at one time was pretty simple people would sign up to get a free trial, paying only a small fee for shipping and handling. After they received the product, a large percentage wouldnt return it or cancel the subscription and thus be charged on a monthly basis for the product to be sent to their home, regardless if they actually took the product, or wanted it. Ive covered this model, often called continuity marketing or negative option marketing.

Gibson told me that on Tuesday, August 10th, he was raided by the FTC along with a group of Federal Marshals, local police and attorneys following a two year investigation of the company that included numerous interviews with his employees, customers and advertising partners. He was presented with a very large packet of materials that detailed the accusations and accused him and his company of a variety of things from consumer fraud to deceptive marketing to being the guy on the grassy knoll. Lets put it this way: on Tuesday you would rather be the subject of a pigmy porn film than be in Mr. Grahams shoes. Despite this, Mr. Gibson on the phone was very contrite, honest and REALLY wanted to share his side of the story.