Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Operators of ‘Doctor Trusted’ certification program, misleading websites settle FTC charges, (Jun 21, 2016)

By Michael Menzhuber, J.D., LL.M.

SmartClick Media LLC and its owner Robert Vozdecky have agreed to settle FTC charges that their "Doctor Trusted" certification program misled consumers with false claims that products sold on websites with this seal were evaluated by doctors, the agency announced today (FTC v. SmartClick Media LLC., FTC File No. 152-3063).

The defendants also have agreed to settle FTC charges that several of their websites were deceptively formatted to appear to be independent lifestyle blogs or health-product review sites.

According to the FTC’s complaint, between June 2013 and October 2015, the defendants marketed and sold the "Doctor Trusted" seal and certification program to websites that primarily offered health-related products, including those operated by defendants in other FTC actions. The seals and certificates were meaningless because the defendants’ two free-lance doctors only superficially reviewed the websites’ products and did not actually evaluate or determine whether the advertising claims for the products were supported.

The FTC’s complaint further alleges that the defendants operated lifestyle blog and review websites that supposedly offered unbiased advice and information about various medical products, programs, health issues, and scientific breakthroughs. These sites were, in reality, advertising vehicles, and the defendants received a commission whenever a consumer clicked on them or bought an advertised product.

The proposed stipulated order prohibits the defendants from misrepresenting:

• the extent to which medical or other expertise is used to evaluate a product;

• that they are a consumer protection or non-profit organization;

• the frequency with which they evaluate, certify, or review a product or service; and

• that any website or other publication is an independent resource for products or services.

The defendants are also required to disclose:

• when the content of any website or other publication is not written by an objective source but is, instead, an ad or paid placement; and

• any material connection between themselves and any product discussed, reviewed, or evaluated on a website or other publication.

Finally, a judgment of $603,588 was imposed but will be partially suspended upon payment of $35,000.

The FTC’s complaint and the proposed order were filed in the U.S. District Court for the Southern District of New York.

Companies: SmartClick Media LLC

News: Advertising ConsumerProtection FederalTradeCommissionNews