Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Indoor tanning system seller “burned” in settlement with FTC, (Apr 14, 2016)

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

Under a settlement with the FTC, Illinois-based marketers of Mercola-brand indoor tanning systems will pay refunds to consumers and be permanently banned from marketing or selling indoor tanning systems, the agency announced today (FTC v. Mercola.com, LLC, File No. 142-3210).

In its complaint, the FTC charged that Dr. Joseph Mercola, Mercola.com, LLC, and Mercola.com Health Resources, LLC ran ads on the Mercola.com website, Google search ads, YouTube videos, and in newsletters that made the following false, misleading, or unsubstantiated claims: (1) indoor tanning systems are safe; (2) research proves that indoor tanning does not increase the risk of melanoma skin cancer; and (3) their systems, which deliver both ultraviolet (UV) light and red light, can “reverse the appearance of aging.”

According to the complaint, the ads also: (1) falsely stated that the use of indoor tanning systems has been endorsed by the U.S. Food and Drug Administration as safe; and (2) represented that the tanning systems were recommended by the Vitamin D Counsel, without disclosing that the Council was paid for its endorsement.

The proposed stipulated final order:

• bans the defendants from marketing or selling indoor tanning systems;

• prohibits the defendants, in connection with the sale of devices other than indoor tanning systems, from making false or unsubstantiated efficacy claims, misrepresenting the existence or results of scientific tests or studies, and falsely claiming that the benefits of such devices are scientifically proven; and

• requires clear and conspicuous disclosure of material connections between the defendants and any individual providing an endorsement or review of such a device.

The defendants are also required to pay a maximum of $5,334,067 to cover the cost of refunds to consumers who bought Mercola brand indoor tanning systems between January 1, 2012 and the present, and the cost of administration of the refund program. Mercola brand tanning systems include the: (1) D-Lite; (2) Sun Splash; (3) Sun Splash Renew; (4) Vitality, (5) Vitality Refresh; and (6) Vitality D-Lite. The price of these systems ranged from $1,200 to $4,000 each.

News: ConsumerProtection FederalTradeCommissionNews