Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Memory loss supplement marketers settle FTC charges for $1.4M, (Jul 8, 2015)

By Greg Hammond, J.D.

Marketers of the dietary supplement Procera AVH have agreed to pay $1.4 million to settle FTC allegations that the marketers deceived consumers with ads claiming that Procera was clinically proven to significantly improve memory, concentration, focus, mental clarity, and mood (FTC v. KeyView Labs, Inc., File No. 122 3242, Dkt. 8:15-cv-01047).

The Commission’s complaint, which was filed against five companies and two individuals, claims that the defendants market Procera as a solution to memory loss and cognitive decline, particularly age-related memory and cognitive problems. Procera is sold directly to consumers for $39.00 to $79.00 per bottle, or $119.00 for three bottles. Sales of Procera in the United States from 2006 through mid-2012, minus refunds and returns, totaled nearly $60 million.

The ads at issue allegedly misrepresent that Procera significantly improves memory, concentration, focus, mental clarity, and mood; reverses 10 to 15 years of mental decline and restores the memory and brain power the user had 10 to 15 years earlier; stops and reverses age-related mental decline and memory loss; and reverses and prevents memory loss and cognitive impairment severe enough to interfere with activities of daily living, including impairments of one’s ability to drive a car, make financial decisions, and live independently. The Commission also brought claims for false proof—alleging that the defendants falsely represented that Procera is clinically proven to significantly improve memory and other cognitive functions and that the supplement was clinically proven to reverse 10 to 15 years of mental decline—and unsubstantiated expert endorsement claims.

“The defendants in this case couldn’t back up their claims that Procera AVH would reverse age-related mental decline and memory loss,” stated FTC Bureau of Consumer Protection Director Jessica Rich. “Be skeptical of ads promising quick and easy cures.”

KeyView Labs, Inc. has agreed to a judgment in the amount of $61.1 million and the other defendants have agreed to a judgment in the amount of $91 million. However, judgment will be suspended upon the defendants’ payment of $1 million to the FTC and $400,000 to the Office of the District Attorney Santa Cruz County. The defendants also will be barred from making similar deceptive claims in the future and from misrepresenting the existence, results, or conclusions of any scientific study.

Companies: KeyView Labs, Inc.; Brain Research Labs, LLC; 20/20 Brain Power Partners, LLC; 20/20 Brain Power Founders, LLC; MedHealth Direct, Inc.

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