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Lawyers Run The WorldFTC's Charges Marketers With Making Unsubstantiated Claims

FTC’s Charges Marketers With Making Unsubstantiated Claims

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The Federal Trade Commission has filed a federal court complaint seeking to prohibit Lunada Biomedical, Inc. and its principals from advertising that their dietary supplement Amberen causes substantial weight loss for women over 40, and that the weight loss is clinically proven.  Between 2010 and 2013, Lunada sold almost $65 million worth of Amberen nationwide.

“Lunada marketed Amberen to women over 40 as ‘clinically proven’ to cause weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.  “But their own studies didn’t support those claims.”

According to the FTC’s complaint, the defendants have marketed Amberen nationwide using radio and TV commercials, websites, email, and other promotional materials.  In their ads, the defendants touted Amberen capsules, through direct product claims and consumer endorsements, as able to cause significant weight loss and loss of belly fat, and to increase the metabolism of perimenopausal or menopausal women over 40.

Lunada’s websites and other advertisements pitched the capsules using female announcers saying things like: “Amberen restores hormonal balance naturally, so the weight can just fall right off. Even that stubborn belly fat.”  They also claimed that Amberen is “the ONLY product on the market today clinically proven to cause sustained weight loss for women over 40.”

According to the FTC’s complaint, however, a clinical trial conducted in 2001 by the Russian scientists who developed the Amberen formula, used a double dose of Amberen and did not specifically measure weight loss; a subsequent clinical study failed to show a statistically significant difference in weight loss between the test and control groups.

The FTC also charges that the defendants falsely claimed a consumer satisfaction and success rate of 93 percent and failed to disclose their relationship with certain endorsers, including one who blogged about the benefits of the supplement.

For example, a nurse agreed to appear in Lunada’s ads and maintain a menopause-related blog.  Two of the defendants discussed potential blog topics with her and reviewed her posts.  According to the complaint, Lunada paid thousands for these reviews.

The complaint further alleges that the defendants falsely claimed that consumers could try Amberen “risk-free” for 30 days, through statements such as, “You can try Amberen absolutely risk FREE and get a one month supply FREE.”  In fact, customers were provided a ninety-day supply of Amberen and to qualify for a refund, consumers had to return two unopened product boxes at their own expense, within 30 days of placing the order.  Moreover, in many cases consumers were not reimbursed the shipping and handling charges they had paid when they ordered the product.

The foregoing is yet another example of why ROSCA compliance, the FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising, and available scientific literature with respect to product efficacy claims should be critically examined by experienced advertising law counsel prior to launching a weight loss marketing campaign.

Information conveyed in this article is provided for informational purposes only and does not constitute, nor should it be relied upon, as legal advice. No person should act or rely on any information in this article without seeking the advice of an attorney.

Richard B. Newman
Richard B. Newmanhttp://www.hinchnewman.com
Richard B. Newman is an Internet Lawyer at Hinch Newman LLP focusing on advertising law, Internet marketing compliance, regulatory defense and digital media matters. His practice involves conducting legal compliance reviews of advertising campaigns across all media channels, regularly representing clients in high-profile investigative proceedings and enforcement actions brought by the Federal Trade Commission and state attorneys general throughout the country, advertising and marketing litigation, advising on email and telemarketing best practice protocol implementation, counseling on eCommerce guidelines and promotional marketing programs, and negotiating and drafting legal agreements.

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