Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC cracks down on marketers of gray hair reversal supplements, (May 13, 2015)

By Greg Hammond, J.D.

The FTC has filed suit against GetAwayGrey, LLC, Rise-N-Shine, LLC, and COORGA Nutraceuticals Corp., alleging that the three companies falsely advertised that their products can prevent or reverse gray hair. GetAwayGrey and Rise-N-Shine settled the Commission’s claims for $1.8 million and $2 million, respectively. However, the Commission is pursuing legal action against COORGA in a Wyoming federal district court (FTC v. GetAwayGrey, LLC, File No. 142 3097, Dkt. 2:15-cv-01990-RMG); (FTC v. Rise-N-Shine, LLC, File No. 142 3095, Dkt. 2:15-cv-03301-ES-JAD); and (FTC v. COORGA Nutraceuticals Corp., File No. 142 3119, Dkt. 15-cv-72-S).

All three complaints against GetAwayGrey, Rise-N-Shine, and COORGA allege that the companies labeled, advertised, and marketed that their products contain a blend of vitamins and minerals, as well as catalase—an enzyme used by cells to rapidly catalyze the decomposition of hydrogen peroxide into less-reactive gaseous oxygen and water molecules. The companies touted that the products reverse or prevent the formation of gray hair, selling the supplements at retailers like CVS and Walgreens at prices ranging from $29.99 to 69.99 per bottle. The Commission, however, asserts that the gray hair reversal or prevention statements were false or unsubstantiated.

“These companies claimed their supplements could treat gray hair at its roots,” stated FTC Bureau of Consumer Protection Director Jessica Rich. “In fact, their root problem was a lack of evidence for their claims.”

The complaints allege that the companies violated the FTC Act through false or unsubstantiated efficacy claims and false proof claims.

The GetAwayGrey stipulated final judgment and Rise-N-Shine stipulated final judgment impose suspended judgments of $1.8 million and $2 million, respectively. In addition, the two companies will be prohibited from representing that a product reverses or prevents the formation of gray hair, and from misrepresenting the health benefits, performance, or efficacy of a product, unless the claim is non-misleading and is supported by reliable scientific evidence.

Attorneys: William I. Rothbard (Law Offices of William I. Rothbard) and Paul D. Harrill (McNair Law Firm, P.A.) for GetAwayGrey, LLC. Elizabeth Nach, Phyllis H. Marcus, and Jonathan E. Nuechterlein, FTC. Theodora McCormick (Epstein Becker & Green, P.C.) for Rise-N-Shine, LLC.

Companies: COORGA Nutraceuticals Corp.; Rise-N-Shine, LLC; GetAwayGrey, LLC

News: Advertising ConsumerProtection FederalTradeCommissionNews