Marketing Plan to Sue the FTC Backfires
The FTC recently stated that marketers cannot claim a food, beverage or dietary supplement can treat or prevent a disease unless approval has been obtained from the U.S. Food and Drug Administration.
(Affiliate marketers should take note of this. Plenty of Warriors are promoting dietary supplements.)
POM, the maker of various health promoting Pomegranate drinks, was not happy, so it sued the FTC 12 days ago claiming its First Amendment rights were violated and the FTC had exceeded its authority.
Today, the FTC sued POM for misrepresenting the health benefits of its products and for making claims about preventing cancer, erectile disfunction, etc. The remedies the FTC is seeking are a lot more severe than its initial request for FDA approval of disease claims.
A few lessons here:
1. Don't make claims that anything can cure, treat, or prevent a disease unless you have rock-solid proof. If some government agency has not approved that type of claim, odds are you have a risk.
(Note: rock-solid proof does not mean "jk3004" has vouched for the product on a forum.)
2. If you sue the FTC, expect to be sued back by the FTC within 2-weeks.
3. The FTC lawsuit is against POM and selected directors personally. Another good example of how incorporating or forming a LLC does not protect you from personal liability.
4. The really, really good stuff (although this may depend on your perspective). If POM loses any product claims issue in the FTC lawsuit, I guarantee class action lawsuits will be filed nationwide. Actually, I wouldn't be surprised if the first lawsuit is not filed today.
.
(Affiliate marketers should take note of this. Plenty of Warriors are promoting dietary supplements.)
POM, the maker of various health promoting Pomegranate drinks, was not happy, so it sued the FTC 12 days ago claiming its First Amendment rights were violated and the FTC had exceeded its authority.
Today, the FTC sued POM for misrepresenting the health benefits of its products and for making claims about preventing cancer, erectile disfunction, etc. The remedies the FTC is seeking are a lot more severe than its initial request for FDA approval of disease claims.
A few lessons here:
1. Don't make claims that anything can cure, treat, or prevent a disease unless you have rock-solid proof. If some government agency has not approved that type of claim, odds are you have a risk.
(Note: rock-solid proof does not mean "jk3004" has vouched for the product on a forum.)
2. If you sue the FTC, expect to be sued back by the FTC within 2-weeks.
3. The FTC lawsuit is against POM and selected directors personally. Another good example of how incorporating or forming a LLC does not protect you from personal liability.
4. The really, really good stuff (although this may depend on your perspective). If POM loses any product claims issue in the FTC lawsuit, I guarantee class action lawsuits will be filed nationwide. Actually, I wouldn't be surprised if the first lawsuit is not filed today.
.
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