iLegal – Weight-Loss Patch Manufacturer Banned from Selling Weight-Loss Patches, Will Pay $180,000

FTC: Products Worn or Rubbed on the Skin Do Not Cause Weight Loss

There are a lot of outrageous claims made by advertisers on the Internet, and as an affiliate, one needs to be careful not to get caught knowingly passing along bogus claims. This week the FTC announced that it has stopped a company that was selling “weight-loss patches.’ The company, Transdermal Products International Marketing Corporation and William H. Newbauer is paying $180,000 and has been banned from selling weight-loss patches in the future.

“According to the FTC, Transdermal Products International Marketing Corporation and William H. Newbauer sold a supposed weight-loss patch to about two dozen domestic and foreign retailers, and provided them with sample deceptive advertising and bogus substantiation materials, including purported expert endorsements and clinical studies of their weight-loss patch by Marvin Kaplan. The retailers in turn used these materials to sell the weight-loss patches to consumers in the U.S. and abroad. The sample advertising made false or unsubstantiated claims about the product, including that it caused weight loss and that the main ingredient, sea kelp, had been approved by the FDA for weight loss.

In addition to banning them from selling weight-loss patches, the order also bars the defendants from making claims that have been identified by the FTC as raising “red flags” for false weight-loss advertising, including that a product worn or rubbed on the skin is effective for weight loss; that it causes substantial weight-loss without reducing calories or increasing exercise; that it safely enables users to lose more than three pounds per week for a period of more than four weeks; or that it causes permanent weight loss. In addition, the defendants cannot misrepresent that the FDA has approved or is about to approve any transdermal product, dietary supplement, food, drug, device or cosmetic for its intended use. Also, they cannot claim that any of these types of products cause weight loss or melt or burn body fat or affect the body’s metabolism of fat unless they have competent and reliable scientific evidence to back up the claim. Finally, the order prohibits the defendants from providing their trade customers with the means and instrumentalities to make false and deceptive claims.” (http://ftc.gov/opa/2007/08/transdermal.shtm)

When making weight loss claims in advertising it’s important to be aware of the FTC’s restrictions. The FTC has an entire mini-site called “Red Flag: Bogus Weight Loss Claims,” that gives great details to review offers for weight loss products to make sure they do not contradict FTC guidelines and get you in trouble. http://www.ftc.gov/redflag/ Be sure to visit the site, and review your offers according to the FTC’s guidance.

Remember, in the weight loss advertising business, an ounce of prevention is worth a pound of cure!

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Come back to the iLegal column every week as we get specific about the rules, regulations, laws and trends that affect the online advertising industry. Each week we discuss important legal issues, talk about how to avoid the pitfalls, and cover the breaking legal and regulatory advertising industry news.

Legal Disclaimer: Information conveyed in this column is provided for informational purposes only and does not constitute legal advice. These materials do not necessarily reflect the opinions of Digital Moses, and is not guaranteed to be complete, correct, or up-to-date. The column is provided for "information purposes" only and should not be relied upon as "legal advice." This information is not intended to substitute for obtaining legal advice from an attorney. No person should act or rely on any information in this column without seeking the advice of an attorney.

Mark Meckler is the General Counsel for UniqueLeads.com, Inc., and Unique Lists, Inc. Mark sits on the eCommerce and Technology Committee of the Association of Corporate Counsel, and is a member of the International Association of Privacy Professionals.

Copyright 2007 Mark J. Meckler