Maine AG joins crackdown on 'deceptive' health supplements
Courtesy / Maine Attorney General's Office
Maine Attorney General Janet T. Mills has joined with the Federal Trade Commission in filing a complaint against three corporations and six individuals for their roles in what is alleged to be a deceptive campaign to sell a joint health supplement and a cognitive health supplement in violation of state and federal laws.
Maine Attorney General Janet T. Mills announced Wednesday that her office and the Federal Trade Commission have filed a complaint against three corporations and six individuals for their roles in what is alleged to be a deceptive campaign to sell a joint health supplement and a cognitive health supplement in violation of state and federal laws.
In a statement issued by her office, Mills stated that the defendants engaged in “unfair or deceptive acts or practices in the advertising, marketing, distribution and sale of FlexiPrin [for joint health] and Cogniprin [for memory improvement].” She said the defendants sold those products directly to consumers, primarily through radio and print advertising nationwide and in Canada, result in more than $6.5 million in gross sales from Jan. 1, 2012, through April 30, 2015.
“The defendants made false claims about the efficacy and testing of their products and deceptively enrolled consumers in ‘continuity plans’, or automatic monthly shipments for which consumers’ credit and debit cards were automatically charged,” according to the release issued by Mills’ office. “When consumers attempted to halt shipments or obtain a refund, they were then told of additional, undisclosed requirements they could almost never abide by. Defendants would use stage names and claim medical credentials to promote the products and claim clinical testing that never actually occurred. Consumers were then, on the same calls, deceptively induced to purchase other services such as discount buying clubs or health savings plans which were also difficult to cancel.”
“These products offered false promises based on false advertising,” Mills stated. “These companies fleeced Americans of millions of dollars.”
What the complaint seeks
The complaint, filed in the U.S. District Court for the District of Maine, asks the court to:
Declare the defendants’ conduct as in violation of federal and state laws.
Impose a permanent injunction to prevent further violations.
Provide relief to consumers that includes restitution, refunds and cancellation of contracts.
Impose civil penalties of up to $10,000 for each intentional violation of Maine law.
Pay Maine’s legal costs.
“This scheme misled people into thinking they were getting medically proven products to improve their memory and joint health,” Mills said. “The defendants’ products appealed to vulnerable populations who had memory issues and pain and who were taken advantage of by fine print that was not fully disclosed. Consumers also were misled about the true costs of the products and how they could get their money back. We appreciate the assistance and cooperation of the FTC in bringing this campaign of deception to an end.”
Six of the defendants — two corporations and four individuals — have agreed to settlements with the state and federal governments that will result in a monetary judgment of more than $500,000 “and strong injunctions including, for one defendant and his corporations, a 20-year ban on marketing or selling dietary supplements directly to consumers,” according to Mills’ office.
The proposed monetary judgment of over $6.5 million would be suspended, under the proposed settlement, based on extensive financial analysis of the settling defendants’ ability to pay, Mills’ office added.
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