United States - Misleading Health Claims
This year has seen an uptick in FTC activity on misleading health and weight loss claims. In January, Sensa and three other marketers of fad weight-loss products settled FTC charges in a crackdown on deceptive advertising. Also in January, two marketers of genetically customized nutritional supplements agreed to settle FTC charges of deceptive advertising for claims that their personalized nutritional supplemets treat diabetes, heart disease, arthritis, insomnia, and other ailments. The FTC is continuing to vigorously challenge misleading health claims. The agency has brought recent cases against marketers of products for memory improvement (BrainStrong Adult); head lice prevention (Lice Shield); and weight loss (Pure Green Coffee). The FTC recently testified before a Senate subcommittee on its efforts to combat fraudulent and deceptive weight-loss claims.
In addition to these efforts, the FTC has published a new reference guide to publishers and broadcasters on how to spot phony weight-loss claims when screening ads for publications. The agency also offers guidance for consumers, and even an interactive Weight Loss Challenge game. Following are details on the recent Congressional testimony and three recent cases.
FTC Testifies Before Congress on Agency Efforts to Combat Fraudulent and Deceptive Claims for Weight-Loss Products
On June 17, the FTC testified before Congress about its ongoing efforts to combat fraudulent and deceptive claims for weight-loss products through law enforcement, media outreach, and consumer education. Mary Engle, Associate Director for Advertising Practices, delivered the testimony before the Senate Commerce Subcommittee on Consumer Protection, Product Safety, and Insurance. She said that amid an ongoing obesity epidemic in which nearly 70 percent of U.S. adults are obese or overweight the FTC's most recent fraud study shows that more consumers were victims of fraudulent weight-loss claims than of any other specific fraud type covered by the survey. The testimony noted that despite consumer spending of $2.4 billion on weight-loss products and services last year, there is very little evidence that pills or supplements alone will cause sustained, meaningful weight loss without changes to diet and lifestyle. The testimony provided details on FTC enforcement actions in the past decade, as well as consumer restitution since 2010.
Supplements Marketers Settle FTC Charges that BrainStrong Adult Memory Improvement Claims Are Deceptive
Two supplements marketers, i-Health and Martek Biosciences Corporation, agreed to settle FTC charges that they made deceptive claims for their BrainStrong Adult dietary supplement. Chief among these claims is that the product will improve adult memory and prevent cognitive decline. The FTC also charged the marketers with falsely claiming they had clinical proof that the supplement improves adult memory. The marketers advertised the BrainStrong supplement on television, Twitter and on websites. It retailed for about $30 for a 30-day supply at major retail store and online outlets. The FTC's proposed administrative settlements bars the marketers from claiming that BrainStrong or any similar product prevents cognitive decline and improves memory in adults unless the claim is truthful and supported by human clinical testing. The settlements also prohibits claims about the health benefits, performance, safety, or effectiveness of these products unless the claims are backed by competent and reliable scientific evidence. Finally, the companies cannot claim they have clinical proof to support their claims when they do not. In connection with this action, the FTC issued a blog post What's in a health claim? Should be a healthy dose of proof that contains useful information for consumers.
Company Settles FTC Charges that Head Lice Prevention Claims Were Deceptive
The FTC has reached a settlement with Lomamead Inc., resolving charges that the company made deceptive claims in advertisements for its head lice products. According to the FTC's complaint, the company exaggerated claims that its Lice Shield shampoo, stick and spray products would prevent or reduce the risk of getting head lice. Lomamead also claimed that its products would prevent, rather than treat, head lice infestations and that Lice Shield products are scientifically shown to repel head lice. Under the settlement, Lomamead will pay $ 500,000, and is prohibited from making further deceptive claims.
FTC Charges Green Coffee Bean Sellers with Deceiving Consumers through Fake News Sites and Bogus Weight Loss Claims
The FTC has sued a Florida-based operation that capitalized on the green coffee diet fad by using bogus weight loss claims and fake news websites to market the dietary supplement Pure Green Coffee. According to the FTC's complaint, weeks after green coffee was first promoted on the syndicated Dr. Oz Show, the defendants and the companies they control began marketing Pure Green Coffee extract. The FTC charged that the defendants made phony claims for their products, including that consumers could lose 20 pounds in four weeks.
The FTC also charged that the defendants asserted that such claims were supported by purported clinical proof that dieters could lose weight rapidly without changing their diet or exercise regiments when, in fact, they were not. The FTC further charged that defendants deceptively failed to disclose that consumer who endorsed the supplement had received it for free and were paid to provide video testimonials. The defendants advertised the dietary supplement through banner and text ads that appeared on search engines and contained phony weight loss claims, and ads on their own sales websites (e.g. greencoffeeweightcontrol.com). They charged consumers approximately $50 for one-month supply.