In Brief: Ad, Social Media Claims Scrutinized; Unilever Slims Down; Perrigo Generic Advil Congestion Ready

NAD refers RDK Global advertising to FTC; social media claims trigger FDA warning; Perrigo to launch equivalent of Advil product; Unilever divests Slim-Fast; class-action complaint against Nu Skin; Herbalife makes friends on Capitol Hill; and child-proof liquid nicotine bill introduced.

NAD refers RDK Global ads to FTC

Claims that RDK Global’s dietary supplement Provailen “stops arthritis pain at the source” and has “zero side effects” could imply the product is an alternative to FDA-approved medication and encourage consumers to forgo treatment, the Council for Responsible Nutrition said in a case it brought to the National Advertising Division. NAD referred the case to the Federal Trade Commission after RDK refused to participate in the review process. The Council of Better Business Bureaus division noted the Coatbridge, Scotland-based firm, which also markets weight-loss supplement brands Phen375, Adiphene, Optimus and KouTea and Brestrogen “breast enhancement cream,” should substantiate a testimonial that suggested the Reishi mushroom formula alleviated a user’s shoulder and joint pain to the point that surgery was not necessary. CRN argued the express and implied benefit claims in the testimonial must reflect typical results when the product is used as directed. The trade group brought the challenge as part of the initiative it supports to expand NAD’s review of supplement claims.

Social media claims trigger FDA warning

Social media claims on Twitter and Facebook that Zarbee’s Naturals products provide cold and cough relief make the products unapproved new drugs intended to treat, cure, mitigate and prevent diseases, FDA warns Zarbee’s Inc. in a June 27 letter. The agency also tells the Draper, Utah, firm that its liking of personal testimonials on Facebook is akin to endorsing or promoting them and indicates the firm’s intended use of the products. FDA noted Zarbee’s either “liked” or responded positively to testimonials that its products helped alleviate insomnia associated with ADHD medications, pneumonia and pain related to cerebral palsy – all drug claims.

Perrigo to launch Advil product generic

Perrigo Co. PLC plans to ship store brand versions of Advil Congestion Relief Tablets in time for the cough and cold season, the Dublin-based firm announced July 8. The combination 200 mg ibuprofen and 10 mg phenylephrine product is indicated for relief of sinus pressure, nasal swelling, congestion and headache. Perrigo says it was the first to receive final approval from FDA for an abbreviated new drug application for a generic of Pfizer Inc.’s product, which Perrigo estimates is worth $18 million in sales annually.

Unilever divests Slim-Fast

Unilever PLC sold a majority stake in its Slim-Fast functional food brand to Kainos Capitalas the last step in reshaping its North American portfolio, the Dutch firm announced July 10. Unilever will maintain a minority stake in the business, according to the deal – the details of which were not disclosed. As part of its reshaping, the firm in 2013 sold several hair care products and food brands, including Skippy peanut butter, Wish-Bone salad dressing and several frozen meal brands.

Herbalife makes friends on Capitol Hill

Herbalife Ltd. customers’ Washington visit could help the nutritional product direct-seller show it has friends in Congress, not just critics and skeptics. The Los Angeles-based firm on July 10 sent 21 “members” – consumers who only purchase products in addition to some who use and sell them – from California, Connecticut, Florida, New York, North Carolina and Virginia to visit their representatives in Congress. Herbalife also sent product distributors to Capitol Hill in May and likely will again as it refutes allegations that its business is a pyramid scheme. The firm is under scrutiny from the Federal Trade Commission and the Securities & Exchange Commission – at the request of Sen. Edward Markey, D-Mass. – and the Illinois attorney general (Also see "Herbalife Sales, Distributor Data Contradict Pyramid Scheme Allegation, Executives Say" - Pink Sheet, 30 Apr, 2014.). Herbalife said the members’ Capitol Hill visit is “about the opportunity and integrity behind” its products, and not in response to the scrutiny it has attracted. The firm says it has more than 550,000 members and around 54,000 independent distributors in the U.S.

Class-action complaint against Nu Skin

Investors in Nu Skin Enterprises Inc. allege in a complaint seeking class-action status that the skin care and nutritional product direct-seller misled shareholders about its business practices in China. According to the lawsuit filed June 30 in U.S. District Court for the District of Utah for plaintiff State-Boston Retirement System, a pension plan that owns Nu Skin shares, former Nu Skin distributors reported that other distributors who supplied their goods could receive 5% of their revenues as commission, or that representatives could receive a portion of their sales teams’ revenues if the team met sales quotas. In a Securities & Exchange Commission filing made as Chinese authorities investigated the firm in January on suspicion of operating a pyramid scheme, Nu Skin stated it pays salaries and commissions to sales employees in China, contractual sales promoters, direct sellers and independent marketers (Also see "China Probe Faults Nu Skin Compliance, But No Challenge To Business Model" - Pink Sheet, 25 Mar, 2014.). The complaint, filed by New York firm Labaton Sucharow LLP and Salt Lake City firm Christensen & Jensen P.C., requests class status for owners of Nu Skin shares between May 4, 2011 and Jan.17, 2014, and seeks damages for alleged violations of securities laws. Two other class-action petitions have been withdrawn and in May a judge consolidated the four remaining lawsuits, naming Labaton Sucharow lead counsel.

Child-proofing needed for liquid nicotine

Democratic senators file legislation July 10 to require child-proof containers for liquid nicotine sold for use in electronic cigarettes. The change is necessary because the easy-to-open vials and small eye-dropper bottles currently used as liquid nicotine containers often include enough of the substance to kill a small child if ingested or make children extremely ill if spilled on their skin, said Sen. Bill Nelson, D-Fla., an author of the Child Nicotine Poisoning Prevention Act of 2014. S.2581. The American Academy of Pediatrics supports the legislation and says child nicotine poisoning is happening at an “alarming rate,” according to a July 10 release.