FTC Nails Supplement Marketers For “Bogus” Free Weight-Loss Samples
This article was originally published in The Tan Sheet
Executive Summary
Firms marketing products or services online must clearly and conspicuously disclose billing practices and obtain affirmative consent before charging consumers, or potentially face hefty fines for violating consumer protection laws, the Federal Trade Commission cautions
You may also be interested in...
Desert Labs Seeks To Overcome Hoodia Market’s Reputation
As Desert Labs contemplated a launch plan for hoodia supplements sourced from its own farm, enforcement actions were mounting against misleading advertising for hoodia products.
In Brief
Prestige Brands buys Dramamine
NextClick settles false-marketing charges
NextClick Media, Kenneth Chan and Albert Chen will pay $315,000 to resolve allegations they sold "bogus smoking cessation patches" and illegally debited consumers' bank accounts, the Federal Trade Commission announces Nov. 9. The defendants allegedly failed to tell consumers they would automatically charge them up to $99.95 monthly for products unless they cancelled if they accepted a "free" 10-day trial of various herbal products, including smoking cessation patches Nicocure, Stop Smoking 180 and Zero Nicotine (1"The Tan Sheet" May 12, 2008). The settlement is the latest in an FTC crackdown on negative-option marketing (2"The Tan Sheet" Feb. 16, 2009)