Summary of Action

In August 2014, after filed a complaint with the Utah Attorney General and Federal Trade Commission regarding the deceptive marketing campaign of e-cigarette company Vapex, the Utah Department of Commerce announced that it was citing and fining the company, as well as several other related companies and individuals.  As part of the state’s action, Vapex and company executives, Scott Barth and Kourtney Salvatori, among others, entered into a Settlement Agreement that prohibits them from making unsubstantiated, false, or deceptive marketing statements about their e-cigarettes.

Though Vapex dissolved following Utah’s action, Scott Barth, Kourtney Salvatori, and potentially others, have created another e-cigarette company called O2PUR, through which they make many of the same deceptive marketing claims as they did with Vapex, in violation of the Settlement Agreement they reached with the state of Utah.

As a result, sent a letter on February 4, 2016 to Utah Attorney General Sean Reyes and Director of the Division of Consumer Protection Daniel O’Bannon alerting them to the issues.   In September 2016, the Utah Division of Consumer Protection brought a formal action against Scott Barth seeking to impose fines for violating the previous Settlement Agreement in connection with his marketing of O2Pur.  Four months later, in January 2017, Barth agreed to pay the Division of Consumer Protection $37,500 for violating the previous agreement (and his company is required to pay an additional $5,000 fine).  Barth also agreed to provide full refunds to consumers who were charged for “free” trials and who file complaints within 12 months of the agreement.

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