Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC seeks to stop marketer’s deceptive opiate addiction, withdrawal treatment claims, (Nov 17, 2015)

By Linda O’Brien, J.D., LL.M.

The FTC filed a lawsuit in federal court to stop a dietary supplement marketer from making misleading claims that its product can help treat and even cure people who are addicted to opiates, including prescription pain medications and illegal drugs such as heroin, the agency announced today (FTC v. Sunrise Nutraceuticals, LLC, File No. 152-3208).

The FTC also announced two settlements against marketers charged with making unsupported claims for weight loss supplements. The cases are part of a law enforcement sweep targeting illegal dietary supplement marketing by the FTC, Department of Justice, Department of Defense, Food and Drug Administration, Postal Inspection Service, and the U.S. Anti-Doping Agency.

According to the FTC’s complaint filed in the federal district court for the Southern District of Florida, Sunrise Nutraceuticals, LLC, based in Boca Raton, Florida, deceptively claims that its dietary supplement Elimidrol, a “proprietary blend” of herbs and other compounds, alleviates opiate withdrawal symptoms and increases a user’s likelihood of overcoming opiate addiction.

Sunrise allegedly ran advertising on its website targeting opiate-dependent consumers with claims that it is the “#1 opiate withdrawal supplement,” and that it is the only opiate withdrawal product “guaranteed to work.” Elimidrol purportedly is non-addictive, non-habit forming, and will help users “permanently overcome withdrawal -- the first time.” It also claims a high-success rate among users, and that “the effects can be felt from the first dose.” In addition, Sunrise promotes Elimidrol with testimonials from opiate-dependent customers.

The FTC’s complaint alleges that Sunrise’s ads for Elimidrol are deceptive because they are false or unsubstantiated. An 8-ounce bottle of Elimidrol costs $75. In filing the complaint, the FTC is seeking a court order providing redress and preventing the company from making such claims unless they can be supported by competent and reliable scientific evidence.

In May 2014, the FTC brought an action against Health Nutrition Products and related defendants. In its complaint filed in the federal district court for the District of Nevada, the FTC charged Crystal Ewing, five other individuals, and five companies with making false and misleading health and efficacy claims in direct mail ads and on a website owned by Ewing.

The stipulated court orders announced today will settle the FTC’s charges against three defendants involved in the scheme. The order against repeat offender Crystal Ewing and her company Classic Productions, LLC requires them to admit liability in the case, bans them from selling weight-loss programs, products, and services, and imposes a non-suspended judgment of $2.7 million.

According to the FTC’s complaint filed in the federal district court for the Middle District of Florida in May 2014, Florida-based NPB Advertising, Inc. capitalized on the green coffee bean diet fad by using false weight-loss claims and fake news websites to market a dietary supplement called Pure Green Coffee. The fad began when The Dr. Oz Show, a syndicated television program, touted green coffee bean extract as a potent weight-loss treatment that supposedly burns fat. Weeks after the show, the defendants launched Pure Green Coffee, which they promoted through Internet ads and on their own website, making allegedly misleading, deceptive, and unsupported claims about its ability to help consumers lose weight.

The stipulated court order settles the FTC’s charges against several companies and individuals involved in the Pure Green Coffee scheme, including Nationwide Ventures, LLC; NPB Advertising, Inc.; JMD Advertising, Inc.; Olympic Advertising, Inc.; Sermo Group, LLC; Signature Group, LLC; Paul Pascual; Bryan Walsh; and relief defendant CPW Funding, LLC. The proposed order bars the defendants from the deceptive acts and practices described in the complaint and imposes a $30 million judgment that will be suspended upon certain conditions.

“People looking for a dietary supplement to improve their health have to wade through a swamp of misleading ads,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Be skeptical of ads for supplements that claim to cure diseases, reverse the signs of aging, or cause weight loss without diet or exercise.”

Companies: Sunrise Nutraceuticals, LLC; Health Nutrition Products, LLC; NPB Advertising, Inc.

News: Advertising ConsumerProtection FederalTradeCommissionNews