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September 11, 2009

The Federal Trade Commission warns consumers to use caution when donating to charities that claim to help victims of the devastating California wildfires. While many legitimate groups help victims, scam artists may take advantage of the disaster by creating bogus fundraising operations.

The FTC’s Charity Checklist consumer alert offers tips to ensure that donation dollars benefit the people and organizations consumers want to help. The alert, available at www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt114.shtm, advises consumers to be wary of appeals that tug at the heart strings, but are short on details about how disaster victims will benefit. The FTC advises consumers who are asked to contribute to a charity:

• Don’t be shy about asking who wants your money. Some charities hire professional fundraisers for large-scale mailings, telephone drives, and other solicitations rather than use their own staff or volunteers, and then use a portion of the donations to pay the fundraiser’s fees. If you’re solicited for a donation, ask if the caller is a paid fundraiser, who they work for, and the percentage of your donation that will go to the charity and to the fundraiser. If you don’t get a clear answer – or if you don’t like the answer you get – consider donating to a different organization.
• Call the charity. Find out if the organization is aware of the solicitation and has authorized the use of its name. If not, you may be dealing with a scam artist.
• Ask for written information about the charity, including name, address, and telephone number.
• Contact the office that regulates charitable organizations and charitable solicitations in your state to see if the charity or fundraiser must be registered. If so, check to make sure that the company you’re talking to is registered. For a list of state offices, visit the National Association of State Charity Officials at www.nasconet.org/agencies. Your state office also can verify how much of your donation goes to the charity, and how much goes to fundraising and management expenses. You also can check out charities with the Better Business Bureau’s (BBB) Wise Giving Alliance (www.bbb.org/charity) and GuideStar (www.guidestar.org).
• Trust your gut – and check your records if you have any doubt about whether you’ve made a pledge or a contribution. Callers may try to trick you by thanking you for a pledge you didn’t make. If you don’t remember making the donation or don’t have a record of your pledge, resist the pressure to give.
• Be wary of charities that spring up overnight in connection with current events or natural disasters. They may make a compelling case for your money, but as a practical matter, they probably don’t have the infrastructure to get your donation to the affected area or people.
• Watch out for similar sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations. If you notice a small difference from the name of the charity you intend to deal with, call the organization you know to check it out.
• Be cautious of promises of guaranteed sweepstakes winnings in exchange for a contribution. According to U.S. law, you never have to give a donation to be eligible to win a sweepstakes.
• Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately.
• Know the difference between “tax exempt” and “tax deductible.” Tax exempt means the organization doesn’t have to pay taxes. Tax deductible means you can deduct your contribution on your federal income tax return.
• Do not send or give cash donations. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by credit card. If you’re thinking about giving online, look for indicators that the site is secure, like a lock icon on the browser’s status bar or a URL that begins “https:” (the “s” stands for “secure”).

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(FYI 2009 Fires)

Contact Information

MEDIA CONTACT:

Office of Public Affairs
202-326-2180

The Federal Trade Commission today launched the 2009 “We Don’t Serve Teens” public education campaign to help prevent teenagers from getting easy access to alcohol, and to promote compliance with the legal drinking age of 21.

In its annual effort to keep alcohol out of the hands of teens, the FTC and a coalition of public and private organizations will be distributing campaign materials in stores where alcohol is sold; offering public service announcements for TV and radio; and updating the campaign Web site, DontServeTeens.gov. All materials are available in English and Spanish.

Data show that most kids who drink alcohol get it free from family or friends, often with disastrous results. About 5,000 people under 21 die each year from alcohol-related injuries, including auto accidents, homicides, and suicides, according to a U.S. Surgeon General’s report.

“Some friends and family may think underage drinking is harmless, but they’re wrong,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.

“The evidence is clear,” he added. “Since laws nationwide established the legal drinking age of 21, teen drinking has dropped substantially. It’s a law that protects kids, so our message to adults is, ‘Don’t provide alcohol to teens. It’s unsafe, it’s illegal, it’s irresponsible.’ ”

The FTC’s DontServeTeens.gov Web site features information about the rates and risks of teen drinking, links to state alcohol laws, and things that people can do and say to prevent teens from drinking and getting injured as a result. The site also offers free materials that can be downloaded – including signs that say “The legal drinking age is 21. Thanks for not providing alcohol to teens.” Campaign participants are distributing the materials to businesses and other interested groups across the country.

Public- and private-sector organizations sponsoring the campaign include law enforcement agencies, consumer groups, and representatives of the alcohol and advertising industries.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(Don’t Serve Teens.wpd)

The Federal Trade Commission today told the U.S. Senate Committee on Homeland Security and Governmental Affairs that the agency is working to protect consumers from fraudulent schemes claiming to dispense guaranteed grants from the economic stimulus program, and from other frauds exploiting consumers who are struggling due to the economic downturn.

FTC Chairman Jon Leibowitz testified that the Commission is aggressively pursuing fraudulent marketers who are capitalizing on the American Recovery and Reinvestment Act of 2009 by claiming to offer free government grant money and using other come-ons to bilk money from consumers confronted with job losses, foreclosures, and dwindling retirement accounts. The testimony highlighted the agency’s law enforcement efforts against these and other schemes that prey upon financially distressed consumers, and described its work to educate consumers.

“To con artists, today’s challenging economy presents a golden opportunity — sadly, an opportunity to play on the economic distress of American consumers,” Leibowitz said. The Commission is working with heightened urgency. The FTC and state and federal partners collectively have filed 389 law enforcement actions in FTC-led sweeps targeting fraud during the last six months. For example, in “Operation Short Change,” the FTC, the Department of Justice, and 14 states filed more than 120 law enforcement actions challenging government grant scams, employment and work-at-home scams, advance-fee credit card scams, bogus debt relief services, and get-rich-quick schemes such as buying and selling foreclosed real estate.

The testimony highlighted recent FTC cases involving government grant-related schemes. The Commission charged Grant Connect, LLC, and related entities with misrepresenting their expertise and the availability of grants, and making unauthorized withdrawals from consumers’ bank accounts. Also, the FTC and three states obtained a federal court order halting Grant Writers Institute and its telemarketers, who allegedly charged hundreds of dollars for grant-related services and falsely claimed a 70 percent success rate in securing grant money. The Commission alleged that Web site operators using names like “Grants for You Now” enrolled consumers in a negative-option program with recurring charges of nearly $100 per month. An individual operating as “Cash Grant Institute” allegedly advertised “free grant money” in prerecorded robocalls and operated a fraudulent Web site with images of President Obama and the U.S. Capitol.

The testimony noted several other “Operation Short Change” cases in which the FTC obtained court orders that halted the defendants’ practices and froze their assets. The agency charged Career Hotline and Wagner Borges Ramos, operating as Job Safety USA, with selling bogus job assistance. John Beck/Mentoring of America and Freedom Foreclosure Prevention Services allegedly made false earnings claims in real estate-related scams, and an entity using the name Google Money Tree allegedly made unauthorized debits from consumers’ accounts in a work-at-home scam. The FTC also sued an enterprise that tricked consumers into buying credit cards useful only for buying certain products, and it charged Mutual Consolidated Savings with using robocalls to sell a bogus debt relief program.

In March, having searched the Internet for fraudulent marketing offers, the FTC held a press conference to warn consumers about Web sites promising grant money to start a business, take a vacation, or pay bills. The event alerted consumers throughout the nation and identified www.grants.gov, operated by the U.S. Department of Health and Human Services, as the official source for information about federal government grants. The Commission also issued a consumer alert stating that the promise of stimulus money in return for a fee or consumers’ financial information is always a scam. At the FTC’s request, major online ad networks agreed to screen out ads touting grants for individual consumers.

The testimony described the FTC’s consumer education efforts, including “Operation Short Change” press coverage that reached more than 35 million Americans. The Commission produced a video featuring a former con artist, who talked about his techniques and how consumers can protect themselves from fraud (YouTube.com/ftcvideos). In connection with a federal-state crackdown on mortgage foreclosure rescue scams, the FTC created mortgage-related resources available at www.ftc.gov/moneymatters, and groups such as NeighborWorks America and the Homeowners Preservation Foundation are distributing FTC materials to homeowners. Next month, the Commission will send a video to thousands of community organizations, HUD-certified housing counselors, and state attorneys general, featuring legitimate counselors helping to save people’s homes from foreclosure. The agency is also alerting publishers and broadcasters to claims that can signal a rip-off, and providing public service announcements for the business opportunity section of newspapers’ classified ads.

The testimony also described the FTC’s research to stay abreast of marketplace developments to ensure its preparedness against fraud, including consumer fraud surveys and a fraud forum held earlier this year to help law enforcement, consumer advocates, and businesses understand how fraudulent marketers operate. In conclusion, the testimony expressed the FTC’s commitment to using its resources to stop fraud and help consumers avoid being victimized.

The Commission vote authorizing the testimony was 4-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(Senate Testimony)

The Federal Trade Commission will host a two-day public event on consumer protection issues in litigation and arbitration proceedings to collect on consumer debt. This will be the second in a series of three FTC roundtable discussions on these topics.

WHAT:	“Protecting Consumers in Debt Collection Litigation and Arbitration: A Roundtable Discussion”
WHEN:	September 29 & 30, 2009 Registration – begins at 8 a.m. both days September 29 session will run from 9 a.m. to 3 p.m. September 30 session will run from 9 a.m. to 5 p.m.
WHERE:	San Francisco State University Downtown Campus 835 Market Street, Rooms 675 and 676 San Francisco, CA 94103

This Roundtable follows up on the Commission’s February 2009 Report, Collecting Consumer Debts: The Challenges of Change – A Workshop Report, which recommended that the debt collection regulatory system in the United States be reformed and modernized. The Report also announced that the FTC would hold regional roundtables to help develop policy recommendations related to debt collection litigation and arbitration proceedings against consumers. The first Roundtable was held in Chicago in August 2009. The San Francisco event is the second of these Roundtable discussions, and the participants will include state court judges, government officials, debt collectors, consumer advocates, academics, and other stakeholders. The final session will be held on December 4 in Washington, DC.

The first day of the Roundtable, September 29, will cover topics in consumer debt collection arbitration proceedings, such as the role of consumer choice, perceptions of bias, transparency of results, post-decision issues, and future directions in arbitration of consumer debts. The second day of the Roundtable, September 30, will cover topics in consumer debt collection litigation proceedings, such as service of process, consumer default rates, time-barred debts, evidentiary requirements in collection actions, and post-judgment issues.

The Roundtable is free and open to the public. No pre-registration is required. Seating is limited, however, and seats are available on a first-come, first-served basis. Details can be found at http://www.ftc.gov/bcp/workshops/debtcollectround/index.shtm. Watch this Web site for information about whether the Commission will offer a live webcast of the event for those who wish to participate but cannot attend.

The Commission invites interested parties to submit requests to be participants in the San Francisco and Washington, D.C. Roundtables and to recommend other topics for discussion. Requests for the San Francisco Roundtable should be submitted electronically to [email protected] by September 15, 2009, and requests for the Washington, D.C. Roundtable should be submitted to the same email address by October 15, 2009. Interested parties should include both a statement detailing their expertise on the issues to be addressed and complete contact information. The Commission will invite discussants based on their expertise and on the need to represent a range of views.

Interested parties are also highly encouraged to submit written comments or original research through November 30, 2009. Comments should refer to “Debt Collection Roundtable – Comment, Project No. P094806.” To file electronically, follow the instructions and fill out the form at https://public.commentworks.com/ftc/debtcollectroundtable2. Paper comments should include the above reference both in the text and on the envelope, and should be mailed or delivered to the following address: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex A), 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Comments containing confidential material, however, must be filed in paper form, must be clearly labeled “Confidential,” and must comply with Commission Rule 4.9(c). The FTC requests that any paper comments be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.

Reasonable accommodations for people with disabilities are available upon request. If you need an accommodation related to a disability, please contact Bevin Murphy at 202-326-3224 or via e-mail at [email protected]. Your request should include a detailed description of the accommodations you need and a way to contact you if we need more information. Please provide advance notice.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

( Debt Collection Roundtable)

The Federal Trade Commission has approved a final consent order in the matter of Sears Holdings Management Corporation, following a public comment period, and authorized the staff to provide responses to the commenters of record. According to the FTC’s administrative complaint, Sears represented to consumers that software it was placing on their computers would track their “online browsing.” The FTC charged, however, that the software also monitored consumers’ online secure sessions – including sessions on third parties’ Web sites – and collected consumers’ personal information transmitted in those sessions, such as the contents of shopping carts, online bank statements, drug prescription records, video rental records, library borrowing histories, and the sender, recipient, subject, and size for Web-based e-mails.

According to the Commission, the software also tracked some computer activities that were not related to the Internet. Only in a lengthy user license agreement, available to consumers at the end of a multi-step registration process, did Sears disclose the full extent of the information the software tracked. The complaint charged that Sears’s failure to adequately disclose the scope of the tracking software’s data collection was deceptive and violates the FTC Act.

Under the consent order settling the charges, in addition to destroying information previously collected, if Sears advertises or disseminates any tracking software in the future, it must clearly and prominently disclose the types of data the software will monitor, record, or transmit. This disclosure must be made prior to installation and separate from any user license agreement. Sears also must disclose whether any data will be used by a third party.

The Commission vote approving the final order was 4-0. (FTC File No. 082-3099; the staff contact is Rick Quaresima, Bureau of Consumer Protection, 202-326-3130; see press release dated June 24, 2009, at http://www.ftc.gov/opa/2009/06/sears.shtm.)

Following a public comment period, the Commission has approved a final consent order in the matter of Enhanced Vision Systems, Inc. The FTC’s complaint charged that EVS, a manufacturer of magnifiers and other desktop and portable vision aids, made false or misleading claims that its products were “Made in the U.S.A.”

The Commission vote approving the final order was 4-0. (FTC File No. 092-3010; the staff contact is Laura Schneider, Bureau of Consumer Protection, 202-326-2604; see press release dated July 20, 2009, at http://www.ftc.gov/opa/2009/07/evs.shtm.)

Copies of the documents mentioned in this release are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 43.2009.wpd)

Just in time for back-to-school and cold season, national retailer CVS Pharmacy, Inc. will stop making misleading claims that its “AirShield” dietary supplements can prevent colds, fight germs, and boost immune systems. CVS also will pay nearly $2.8 million to settle Federal Trade Commission charges. This case is similar to cases that the FTC has announced in the last year – against Airborne Health, Inc., Improvita Health Products, Inc., and Rite Aid Corporation – which involved dietary supplements that purportedly treat colds and the flu.

“Students returning to college campuses and parents sending their kids off to school want to take precautions to fight the germs that can cause coughs, colds, and the flu,” said David Vladeck, Director of the Bureau of Consumer Protection of the Federal Trade Commission. “As the CDC has advised, there are good practices to follow. But consumers should not be misled by false claims about the germ-fighting properties of dietary supplements. With orders against Airborne, Rite Aid, and the one proposed against CVS, manufacturers and retailers are on notice that they have to tell the truth about what dietary supplements can and cannot do.”

CVS marketed AirShield products by touting their similarity to widely advertised “Airborne,” which last year settled FTC charges for making the same kind of misleading claims. Like Airborne Health, Inc., the FTC charges CVS with making false and deceptive advertising claims that using its product would reduce the risk of colds and protect against catching colds in crowded places, such as schools, airplanes, offices, health clubs, theaters, or restaurants. The FTC alleges that the company had no evidence that the products could boost the immune system or prevent colds. A settlement with Rite Aid Corporation regarding similar claims for its “Germ Defense” products was announced on July 13, 2009, and a Rite Aid consumer refund program will begin on October 1.

Under the terms of the CVS settlement, the company will provide $2.78 million for
refunds to consumers who purchased AirShield products. Purchasers will be identified through
the CVS ExtraCare card program and sales on cvs.com. The order also will bar CVS from making claims that any CVS-brand food, drug, or dietary supplement can reduce the risk of or prevent colds, protect against cold viruses in crowded places, fight germs, or boost the immune system unless the claims are true and backed by scientific evidence.

The FTC urged college students, concerned parents, and all Americans to consult the
Centers for Disease Control for information about seasonal flu (http://www.cdc.gov/flu/) and the “novel H1N1” flu, otherwise known as swine flu (http://www.cdc.gov/h1n1flu/sick.htm).

The Commission vote to approve the complaint and proposed settlement against CVS was 4-0. These documents will be filed in the U.S. District Court for the District of Rhode Island on September 9, 2009. The order becomes effective when entered by the court.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The stipulated final order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(FTC File No. 0723237)
(CVS NR.wpd)

American consumers won’t be getting any more deceptive robocalls from the auto “warranty” company that bombarded them with millions of the prerecorded calls earlier this year, under a proposed settlement with the Federal Trade Commission.

The company, Transcontinental Warranty, Inc., and its owner will be permanently banned from making any prerecorded calls like the ones it used previously to trick consumers into buying vehicle service contracts under the guise that they were extensions of original vehicle warranties.

“The FTC has taken legal action to put an end to this company’s deceptive and harassing robocalls,” said Jon Leibowitz, Chairman of the FTC. “Starting today, the Commission will be going even further, enforcing a new rule adopted a year ago that makes these prerecorded commercial calls illegal.”

Transcontinental Warranty is one of several companies behind the auto warranty scam that the FTC sued in response to a flood of complaints about the robocalls, which used random, prerecorded voice messages to deceive consumers into thinking that their vehicle warranties were about to expire. The agency also has filed a complaint against the telemarketers who made the prerecorded calls, Voice Touch, Inc., Network Foundations, LLC, and Voice Foundations, LLC, as well as their three principals. That case is still pending in federal court. The court has barred the defendants from making any further deceptive robocalls until the litigation is resolved.

Under the proposed settlement announced today, Transcontinental and its owner, Christopher Cowart, will be barred from the deceptive tactics they used to sell its vehicle service contracts. The defendants also will be prohibited from selling Transcontinental’s customer lists or trying to collect money from people who were victimized by the scam. In addition, they will be required to cooperate in the FTC’s ongoing investigation of the related case. The proposed settlement includes a $24 million judgment against the defendants, which is suspended because of their inability to pay. If the defendants have lied about their assets, the order requires them to pay the full judgment.

In addition to the legal action the against robocallers, the FTC will begin enforcing a new rule restricting prerecorded calls. This rule, effective September 1, 2009, prohibits telemarketers from making robocalls to consumers unless those consumers have agreed in writing to receive the calls. The new requirement is part of amendments to the agency’s Telemarketing Sales Rule that were announced a year ago. Under the new rule, most sellers and telemarketers who transmit prerecorded messages to consumers without their prior written agreement will face penalties of up to $16,000 per call. There are some prerecorded calls that will not be subject to the new rule, such as those that deliver purely “informational” messages, and calls from politicians, banks, telephone carriers, and most charitable organizations.

The Commission vote approving the stipulated court order was 4-0. The order was filed in the U.S. District Court for the Northern District of Illinois.

NOTE: Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendant of a law violation. Stipulated final orders require approval by the court and have the force of law when signed by the judge.

Copies of the complaint and the stipulated final order are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(FTC File No. X090045)
(Civ. No. 09 C 2927)
(Transcontinental)

A federal district court has ordered the marketers of two dietary supplements – “Supreme Greens” and “Coral Calcium” – who claimed the products would cure ailments ranging from cancer and Parkinson’s disease to heart disease and autoimmune diseases to pay nearly $70 million for deceiving consumers about the products’ effectiveness and safety. The court also froze the assets of some of the defendants.

In July 2008, the court found that infomercial pitchman Donald W. Barrett and his affiliates deceptively touted the supplement Supreme Greens to treat, cure, or prevent cancer, heart disease, diabetes, and arthritis. Barrett also deceptively claimed that the product could cause dramatic weight loss and could safely be taken by children, pregnant women, and people on medication. In addition, Barrett marketed a second dietary supplement, Coral Calcium, which the court found he and the other defendants deceptively claimed could treat cancer, Parkinson’s disease, heart disease, and autoimmune diseases; could be absorbed in greater quantity and more quickly than other calcium products; and could be completely absorbed by the body. Barrett also wrongfully claimed that scientific research had proven calcium supplements could prevent, reverse, or cure cancer in humans.

The Federal Trade Commission charged Barrett, his associate Robert Maihos, and two
companies they control – Direct Marketing Concepts, Inc. and ITV Direct, Inc. – with making these unlawful claims regarding Supreme Greens and Coral Calcium, and with making unauthorized credit and debit charges. The FTC also charged three other defendants – Allen Stern and two companies he controls – with deceptively marketing Coral Calcium.

The court froze the assets of Barrett, Maihos, Direct Marketing Concepts, and ITV Direct and ordered them to pay $48.2 million for consumer refunds. The court also barred them from making deceptive claims about Supreme Greens and Coral Calcium; misrepresenting that scientific research validated their claims; making any health, performance, or efficacy claims about any food, drug, dietary supplement, cosmetic, or device unless such claims are true, non-misleading and substantiated by competent and reliable scientific evidence; failing to disclose that promotional programming is, in fact, a paid advertisement; and billing consumers or charging their credit or debit cards on an ongoing basis without their consent.

The U.S. District Court for the District of Massachusetts ordered Stern, King Media, Inc., and Triad ML Marketing, Inc. to pay $20.4 million for consumer refunds. The court barred them
from making deceptive claims about Coral Calcium; misrepresenting that scientific research validated their claims; and making any health, performance, or efficacy claims about any food, drug, dietary supplement, cosmetic, or device unless they are true, non-misleading, and substantiated by competent and reliable scientific evidence.

Copies of the court’s decisions and final orders are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,500 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

(DMC NR.wpd)
(FTC File No. 023 3138)