Spear Systems Inc. and its officers Bruce Parker and Lisa Kimsey have settled a case brought against them by the Federal Trade Commission, which claimed that the defendants sent unsolicited e-mail for weight loss supplements. The FTC brought charges against the defendants in the United States, Canada and Australia in October 2007.

The settlement requires a $29,000 fine and bars the defendants from making false or unsubstantiated claims about health benefits of any food, drug or dietary supplements, and bars them from violating the CAN-SPAM Act.

According to the FTC complaint, the defendants falsely claimed that their hoodia products cause rapid, substantial and permanent weight loss. In addition, the FTC alleged that the operation violated the CAN-SPAM Act by initiating commercial e-mails that contained false "from" addresses and deceptive subject lines, and failed to provide an opt-out link or physical postal address.