A UK-based company that targeted people over 65 and marketed them wellness supplements together with false and deceptive claims from call centers in Goa and moved the majority of the earnings to India, was shut down after legal actions.
Integrated in December 2014, the business used telemarketing methods to promote supplements.
Britain’s Insolvency Service started confidential investigations as it received complaints that the business was mis-selling health nutritional supplements into the older, and found that it had been buying data of people over 65 and cold-calling them out of call centers in Goa.
Health supplements were offered to the people at important mark-ups. 1 88-year-old client identified by researchers spent 700 on supplements in only 19 days.
Investigators also discovered discrepancies in the organization’s VAT affairs, since the turnover evident within their bank accounts was 250,000 greater than that declared to tax authorities. The business also moved 80 percent of its sales revenues into the India-based call centers.
Scott Crighton of the Insolvency Service stated: “Nutrizen Wellness intentionally and unconscionably targeted at the older, pushing their goods at astronomical heights of mark-up. Also, they under-reported the genuine degree of the earnings into HMRC (tax jurisdiction ), neglecting to cover the right levels of VAT”.
“We’re happy the courts recognize that this behavior is completely unacceptable and have closed down their actions to reduce anybody else falling prey to their clinics”.