Slater and Gordon has today confirmed it is investigating the diet spray company SensaSlim on behalf of more than 70 franchisees throughout Australia.
Slater and Gordon class action lawyer Van Moulis said the firm had been contacted by franchisees who became concerned after the Australian Competition and Consumer Commission (ACCC) froze the bank accounts of the SensaSlim franchisor last week.
“These are investors who were required to pay $60,000 for the exclusive rights to distribute SensaSlim in a certain geographical territory,” Mr Moulis said.
“Now that the company SensaSlim and its diet product have been called into question by the ACCC, the franchisee operators are gravely concerned that they have been misled.
"They had relied upon representations by SensaSlim that the product was as good as SensaSlim said it was and that SensaSlim had the medical research to back it up."
Mr Moulis said the law firm was working with the ACCC, in support of the ACCC’s proceedings.
“If action is taken against SensaSlim then the franchisees may be able to seek compensation, particularly the refund of their purchase price and for a loss of future earnings,” Mr Moulis said.
“The franchisees who have contacted us are very concerned that they have been duped and are understandably very anxious to know the truth behind SensaSlim.”
Mr Moulis said some of them franchisees who had contacted Slater and Gordon had purchased more than one ‘territory’. He said it was estimated that there were more than 110 SensaSlim franchised territories throughout Australia.
He said franchisees who had contacted Slater and Gordon so far were located mostly in New South Wales, Queensland and Victoria.