Garvey

The Federal Trade Commission (“FTC”) appeals a ruling on summary judgment that its suit against Mark Levine, David Richmond, and Modern Interactive Technology, Inc. (collectively, the “Modern Interactive defendants”) is barred by res judicata. The FTC also appeals the ruling, following a bench trial, that Steven Patrick Garvey and Garvey Management Group, Inc. (collectively, the “Garvey defendants”) relied on adequate substantiation and therefore are not liable for Garvey’s advertising claims for the weight loss product at issue in this case.

For the reasons discussed below, we reverse in part and affirm in part.

BACKGROUND

A. The Enforma System and Its Marketing

This lawsuit arises out of the marketing of a weight loss system sold by Enforma Natural Products, Inc. (“Enforma”). 1 En-forma created and marketed two dietary supplements, “Fat Trapper” (or “Fat Trapper Plus”) and “Exercise in a Bottle.” Together, these two products constitute the “Enforma System.” The Fat Trapper product contains chitosan and is a mixture of the shells of certain seafood. It alleged *894 ly “surrounds the fat in the food you eat and entraps it,” preventing fat absorption. Exercise in a Bottle…