FTC BARS COMPANY FROM MAKING FALSE CLAIMS ABOUT APP THAT CAN DIAGNOSE MELONOMA RISK

FROM:  U.S. FEDERAL TRADE COMMISSION
FTC Approves Final Order Barring Misleading Claims about App’s Ability to Diagnose or Assess the Risk of Melanoma

Following a public comment period, the Federal Trade Commission has approved a final consent order barring Health Discovery Corporation from making deceptive or unsupported claims that its app, MelApp, could help diagnose or assess consumers’ melanoma risk.

According to the FTC’s February 2015 complaint, MelApp instructed users to photograph a mole with a smartphone camera and input other information. It would then supposedly calculate the mole’s melanoma risk as low, medium, or high. The FTC charged that Health Discovery Corporation deceptively claimed the app accurately analyzed melanoma risk and could assess such risk in early stages, and that its accuracy was scientifically proven.

The final order settling the action bars the company from claiming that any device detects or diagnoses melanoma or its risk factors, or increases users’ chances of early detection, unless the representation is not misleading and is supported by competent and reliable scientific evidence. It also prohibits Health Discovery Corporation from making any other deceptive claims about a device’s health benefits or efficacy, or about the scientific support for any product or service, and requires the company to pay $17,963.

The Commission vote approving the final consent order and was 4-1, with Commissioner Maureen Ohlhausen voting no

CO. SETTLES WITH FTC REGARDING ALLEGED DECEPTIVE CLAIMS ABOUT CHILDREN'S DIETARY SUPPLEMENTS

FROM:  U.S. FEDERAL TRADE COMMISSION 
Company That Touted Products’ Ability to Treat Children’s Speech Disorders Settles FTC Charges It Deceived Consumers

An Illinois company and its owner will stop making allegedly deceptive claims that their dietary supplements are proven effective at treating childhood speech disorders, including those associated with autism, in order to settle Federal Trade Commission charges. Under the FTC settlement, the defendants also will pay $200,000 and are required to disclose any material connections with their endorsers.

“Parents of children with speech disorders need accurate information about products that may be able to help,” said Jessica Rich, Director of the Bureau of Consumer Protection. “This company took advantage of parents’ trust.”

Since at least 2008, NourishLife, LLC and its owner, Mark Nottoli, have sold Speak softgels and capsules and Speak Smooth liquid children’s supplements online and through a network of distributors for more than $70 per bottle. The supplements -- which contain Omega-3 and Omega-6 fatty acids and Vitamins E and K -- were advertised via the Internet, including search engine ads such as Google sponsored links and on websites, and at conferences on autism spectrum disorders.

For example, a Google sponsored link for Speak products, which could display if consumers searched on the term “toddler speech problems,” contained the statement, “Healthy Speech for Child – SpeechNutrients speak Supplement” and linked to a web page claiming the supplements were developed by a pediatrician to support “normal and healthy speech development and maintenance.”  That web page also included a statement from a parent endorsing the product, who said “[my daughter] is speaking in more complex sentences and she is less gittery [sic], more focused.”  Other statements from parent endorsers appeared in product brochures and on speechnutrients.com, such as:

“Speak vitamins have made my little boy talk. He is five years old and has not spoken until I began giving him the vitamins.”

“We were really amazed when Ben started singing along with a song on the radio . . . . and he was singing 3+ word phrases, not just one word here & there.”

According to the FTC’s complaint,between 2008 and late 2013, ads for Speak products made unsupported claims that the supplements develop and maintain normal, healthy speech and language capabilities in children, including those with verbal apraxia -- a motor speech disorder affecting the ability to utter sounds, syllables, and words.

These ads, the complaint asserts, also falsely claimed that Speak products are scientifically proven to improve children’s speech. In addition, the complaint charges that ads for Speak products deceptively claimed that the supplements are effective in treating or mitigating verbal apraxia and communication and behavioral difficulties in children with an autism spectrum disorder.

The FTC’s complaint also charges that the defendants provided promotional materials making these false and deceptive claims for Speak products to third-party distributors that sold the supplements.

In addition, the FTC’s complaint charges that the defendants misrepresented a website called apraxiaresearch.com, which they owned and operated, to be an independent resource for research and other information relating to the treatment of apraxia. In fact, according to the FTC’s complaint, that website advertised the health benefits of defendants’ Speak products. The complaint also asserts that the defendants failed to disclose their affiliation with the Apraxia Research website and with parent endorsers of Speak products who received free supplements.

The proposed order settling the FTC’s charges would prohibit NourishLife and Nottoli from making false or unsubstantiated claims about the effectiveness of any dietary supplement, food, or drug, including but not limited to their Speak products. The proposed order also would bar the defendants from providing third-party distributors with deceptive marketing materials or otherwise providing others with the means to make these prohibited claims.

In addition, it would prohibit the defendants from misrepresenting the independence of any website or other publication that advertises their products, and would require them to clearly and prominently disclose any material connections to any such website or publication, or to any person endorsing their products.

The proposed order imposes a judgment of $3.68 million, which will be partially suspended – based on the defendants’ inability to pay -- after they pay $200,000.

The Commission vote approving the complaint and proposed final order was 5-0. The complaint was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, on January 7, 2015. A motion for the court to enter the proposed final order was filed on January 9, 2015. The case is part of the FTC’s work to challenge false and deceptive claims about cognitive products for adults and children.

Information for Consumers

When it comes to treatments for health and fitness, it can be tough to tell useful products and services from those that don’t work or aren’t safe. For more information, see the FTC’s guidance on Treatments & Cures.

The FTC is a member of the National Prevention Council, which provides coordination and leadership at the federal level regarding prevention, wellness, and health promotion practices. This case advances the National Prevention Strategy’s goal of increasing the number of Americans who are healthy at every stage of life.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.

FTC TESTIFIES BEFORE SENATE ON DECEPTIVE CLAIMS IN THE WEIGHT-LOSS INDUSTRY

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Testifies Before Senate Commerce Subcommittee on Agency Efforts to Combat Fraudulent and Deceptive Claims for Weight-Loss Products

The Federal Trade Commission 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.

Testifying on behalf of the FTC before the Committee on Commerce, Science, and Transportation, Subcommittee on Consumer Protection, Product Safety, and Insurance, Mary Engle, Associate Director for Advertising Practices at the Federal Trade Commission, 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 also 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. According to the testimony, consumers are especially susceptible to weight-loss fraud, there is an enormous amount of money to be made in the diet industry, and fraudsters will continue to gravitate toward the money.

“The endless flood of unfounded claims being made in the weight-loss industry vividly illustrates the challenges we, and consumers, are up against,” the testimony stated.

The FTC’s program to combat fraud in the weight-loss industry includes:

Law enforcement: In the past 10 years, the FTC has brought 82 weight-loss-related law enforcement actions, and since 2010, it has collected nearly $107 million for consumer restitution. Early this year, the agency announced Operation Failed Resolution, targeting new weight-loss fads that include food additives, human hormones, skin creams and acai berries.

The Commission has also noted several disturbing developments in weight-loss advertising:

reliance on proprietary studies using erroneous or fabricated data.
marketers capitalizing on weight-loss fads propelled to popularity by trusted spokespeople such as one recent FTC case involving marketers of the Pure Green Coffee dietary supplement. Within weeks of an April 2012 Dr. Oz Show touting green coffee bean extract, these marketers were making overblown claims about the supplement online, such as, “lose 20 pounds in four weeks” and “lose 20 pounds and two to four inches of belly fat in two to three months.”
Media Outreach: To combat the promotion of fraudulent weight-loss products in respected media outlets, the FTC recently issued a “Gut Check” reference guide that advises media outlets on seven claims in weight-loss ads that experts say simply cannot be true and that should cause media outlets to think twice about running the ads.

Consumer Education: Recent FTC brochures, articles, and blog posts geared toward consumers hammer home the message that the only thing they will lose is money if they fall for ads promising quick weight loss without diet or exercise. The FTC also has created teaser websites designed to reach people who are surfing online for weight-loss products.

Today, the agency is also launching a new consumer video and game – the FTC Weight Loss Challenge. The Challenge is an interactive game designed to help consumers think critically about weight-loss products and claims. Available in English and Spanish, the game separates fact from fiction in ads for products touting fast weight loss without the need for diet and exercise.

The Commission vote approving the testimony and its inclusion in the formal record was 5-0.