FTC Diagnosis For 'Doctor Trusted' Certificates: 'Meaningless'
This article was originally published in The Tan Sheet
Executive Summary
"Doctor Trusted" certificates were based on two doctors "superficially" reviewing products online without actually evaluating the products or determining whether advertising claims were supported.
Dietary supplement marketers have a choice of seals of quality from reputable third-party testers to display on product packaging, but some paid for a worthless certification logo from a firm targeted in a Federal Trade Commission investigation.
FTC on June 21 announced a settlement with SmartClick Media LLC and its owner Robert Vozdecky, aka Bill Anderson, on a complaint that the firm's “Doctor Trusted” certification program misled consumers with bogus claims that the products bearing its seal were evaluated by doctors using their medical expertise.
According to the complaint filed in US District Court for the Southern District of New York, between June 2013 and October 2015 SmarktClick sold the “Doctor Trusted” seal and certification program to some 800 websites that primarily offered supplements and other health products and services.
The "seals and certificates were meaningless," FTC says.
The Jersey City, N.J., firm paid two doctors who "superficially reviewed the products on the websites" without actually evaluating the products or determining whether advertising claims were supported. SmartClock paid the doctors "$11 to $15 per website reviewed," according to the complaint.
"The doctors performing the review neither evaluate the products and services offered nor examine whether the advertising claims for the products and services are substantiated. In short, the doctors do not exercise medical expertise in granting the certifications."
And the firm made clear, FTC alleges, that the doctors would not exercise medical expertise in the certification program.
In email correspondence with one doctor, Vozdecky said, "We do pre-screen all websites for you …Your task would be to double-check that the websites are conforming to our set of rules and approve the website. We have ready templates for the approval text, so you do not need to write anything."
The settlement imposes a judgment of $603,588 against Vozdecky but most of the amount will be suspended when he pays $35,000.
SmartClick marketed the “Doctor Trusted” program to online sellers with claims that it was “one of the most effective ways to increase sales with the least amount of effort,” and that the program would “give visitors a new level of confidence to purchase your product,” according to FTC.
Marketers using the "Doctor Trusted" seal include two that were targeted in other FTC enforcements against misleading claims in the supplement market, GetAwayGrey LLC and [HealthyLife Sciences LLC] .
Vozdecky also operated advertising vehicles in lifestyle blogs and review websites that purportedly offered unbiased advice and information about various medical products, programs, health issues and scientific breakthroughs. He received a commission whenever a consumer clicked on the sites or bought an advertised product.
The proposed stipulated final order prohibits Vozdecky from misrepresenting the extent to which medical or other expertise is used to evaluate a product; and the frequency with which defendants evaluate, certify or review a product or service. Also prohibited is stating that any website or other publication is an independent resource for products or services and that the businesses are consumer protection or non-profit organizations.
According to the settlement, Vozdecky must disclose when the content of any website or other publication is not written by an objective source but is an ad or paid placement as well as any material connection with any product or service being discussed, reviewed or evaluated on a website or other publication.
Certification seals provided through valid third-party testing and analysis are common for supplement products on retailers' shelves or sold online, and the Council for Responsible Nutrition currently is developing a database for registration of supplements; the program will include seals for registered products to display (Also see "CRN Targets 'Ticket To Play' With Supplement Registry" - HBW Insight, 13 Apr, 2016.).
However, trade groups and consumer protection advocates disagree about which organization has the most useful certification that products are "natural" (Also see "New Contender In Race To Plant ‘Natural’ Flag Wields Consumer View" - Pink Sheet, 19 Oct, 2015.).
FDA has stayed out of the "natural" discussion and has not committed to establishing a regulatory definition for regulated products, but has opened a docket for comment on “natural” labeling for supplements and other food products with questions including whether a public health concern will emerge if the agency does not substantially expand its regulation of use of the term (Also see "FDA Compelled To Test ‘Natural’ Climate But Hedges On Rulemaking Forecast" - Pink Sheet, 16 Nov, 2015.).
FDA was more direct about stopping food firms from using industry-generated nutrition and quality certifications on the front of product packages. The Grocery Manufacturers Association in December launched an alternative with its SmartLabel program to label products with a link to access additional ingredient and other information online (Also see "SmartLabel Program Steers Clear Of Promoting Through Labeling" - Pink Sheet, 3 Dec, 2015.).