FTC Wins Health Benefit-Related Deceptive Advertising Lawsuit
The judgement is in! 400k in consumer refunds…
The Federal Trade Commission (“FTC”) recently prevailed in a deceptive advertising lawsuit against COORGA Nutraceuticals Corporation (“COORGA”) and its principal. The judgment provides for, among other things, a monetary penalty of approximately $400,000 for consumer refunds and a prohibition against COORGA and its owner from making misleading prevention and other health-related claims about their products in the future.
Although COORGA vigorously contested the allegations, the FTC ultimately was awarded summary judgment by the United States Court for the District of Wyoming. The court determined that there was no reliable scientific evidence to support COORGA’s claims that the dietary supplement prevents or reverses grey hair and that any claims that the product was scientifically proven to do so were false.
Best Practices to Avoid a Deceptive Advertising Lawsuit: This ruling is a clear indication that businesses must be vigilant in gathering verifiable, scientific evidence to substantiate their health benefit claims.
Read full article and learn more about Deceptive Advertising here.