Bayer Defeats FTC
Bayer defeats FTC in dietary supplement contempt case
Few and far between – a loss for the FTC!
Bayer AG prevailed in a lawsuit filed by the U.S. Federal Trade Commission that accused the drugmaker's U.S. unit of making unsubstantiated claims about a dietary supplement marketed to promote digestion.
In an order made public on Friday, U.S. District Judge Jose Linares in Newark, New Jersey refused to hold Bayer Corp in contempt for having allegedly violated a 2007 consent decree governing how it markets dietary supplements.
FTC spokesman Mitchell Katz declined to comment on Monday.
The government alleged that Bayer lacked reliable scientific evidence to support its claim that its Phillips' Colon Health could “defend against” occasional constipation, diarrhea, and gas and bloating, and its implied claim that the product could cure those conditions.
According to the government, Bayer made the claims in a nationwide campaign that included print and TV advertising featuring “The Colon Lady.”
Consumers spent “hundreds of millions of dollars” on the product, and damages “equal to the amount of consumers' loss resulting from Bayer's contempt” were sought, court papers show.
Bayer in a statement said it was pleased with the decision, and that claims about the product were “fully substantiated” by “numerous” clinical, animal and genetic studies.
Jonathan Cohn, a partner at the law firm Sidley Austin representing Bayer, in a phone interview said the government had been trying to impose a “novel, unlawful standard” on Bayer.
“The government had been seeking to subject dietary supplements to the same gold standard for testing as prescription drugs,” he said. “Bayer has faithfully followed the law, including the FTC's previous guidance.”
The case is U.S. v. Bayer Corp, U.S. District Court, District of New Jersey, No. 07-00001.
(Reporting by Jonathan Stempel in New York; Editing by Marguerita Choy and Jonathan Oatis) via Bayer defeats FTC in dietary supplement contempt case
Here’s How To Make Sure You,
Your Business & Website Is FTC Compliant
By now it should be clear how important it is for you to be FTC compliant. But how can you do that without spending $7,500-$8,000 or more on Internet Attorneys?
Smart business owners around the world are doing it with the help of FTC Guardian.
FTC Guardian is a service that is 100% focused on helping to keep you get and stay FTC compliant and fully protected. And right now, we are offering a free training to give you the knowledge, information, and guidance that you need to stay out of trouble with the Federal Trade Commission.
Here are some of the things you’ll discover on the training:
- Real-Life Examples of People Who Didn’t Think They Were At Risk, But Who Got Nailed By The FTC, And Why It Could Happen To You, Too
- Why 2014 Was a Significant Year For Online Businesses, And Why You Should Be Worried!
- The 3 Enormous Powers The FTC Has That Can Change Your Life – And Your Family’s Life – Forever!
- How to Avoid FTC Claims When Collecting Leads With Optin Forms
- And Much More…
Remember: legal protection is a massively important part of your business, and it’s one you cannot afford to ignore any longer.
Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.