Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Lice Shield manufacturer agrees to pay FTC $500,000 for allegedly misleading ads, (May 28, 2014)

By Greg Hammond, J.D.

The FTC has entered into a settlement agreement with Lornamead, Inc. over allegations the company deceived consumers by using exaggerated claims in its print ads, website and banner ads, and product packaging, the agency announced. Lornamead has agreed to pay $500,000 in settlement of the FTC’s charges and has further consented to not engage in further deceptive claims.

Lice Shield. According to the FTC’s complaint, Lornamead, Inc. manufactures, advertises, and sells a line of lice prevention products called “Lice Shield.” The product line includes “Lice Shield Leave in Spray,” “Lice Shield Gear Guard,” and “Lice Shield Shampoo & Conditioner in 1.” The company’s print ad states, “The Best Way To Treat Lice Is To Avoid Getting Them,” and “Scientifically shown to repel head lice Reducing a child’s chance of catching lice during an outbreak.” Other advertisements, according to the FTC, state that the Lice Shield products: prevent head lice; decrease the likelihood of head lice infestation by more that 80 percent; and dramatically reduce the likelihood or chance of head lice infestation during an outbreak. However, the FTC alleged that these advertisements are false, as scientific tests do not prove that Lice Shield products significantly reduce the chance of head lice infestation.

“As any parent knows, an outbreak of lice can wreak havoc,” stated FTC’s bureau of Consumer Protection Director Jessica Rich. “When marketers say their products can be used to avoid these pests, they’d better make sure they can back up their claims.”

Settlement agreement. In addition to remitting $500,000 to the FTC, Lornamead has agreed to not make any representation that its Lice Shield products prevent, eliminate, reduce, or repel lice, unless it is not misleading and the representation is based on reliable scientific evidence. According to the FTC, reliable scientific evidence must include at least one well-controlled human clinical study of the product, or equivalent product, whose results are sufficient to substantiate the company’s representation as true. Lornamead is also required to maintain all of its Lice Shield advertisements, promotional materials, tests, reports, studies, surveys, demonstrations, and other scientific evidence for a period of five years.

The commission voted 4-0-1 to issue the administrative complaint and to accept the proposed consent order for public comment.

Companies: Lornamead, Inc.

News: Advertising ConsumerProtection FederalTradeCommissionNews