Dietary supplement marketers must run more frequent and prominent advertising disclosures after violating a court order entered against them two years ago. The original order settled Federal Trade Commission charges that the defendants deceptively marketed their dietary supplements, sublingual sprays, and other products. Despite the order’s specific requirements on how to disclose that the programs were paid advertisements, the companies aired a number of television and radio infomercials that did not make the proper disclosures.
According to the FTC, the defendants violated the court order by failing to include clear, audible, and properly placed disclosures that the programs actually were paid advertisements. For example, the defendants failed to run required “paid advertising” disclosures immediately before product-ordering instructions. At times, the disclosures were too small or onscreen too briefly to be read by consumers.
The court order entered today against Great American Products, Inc., Physician’s Choice, Inc., and Stephen Karian modifies the previous order by imposing the following requirements:
The Commission vote to authorize the staff to file the stipulated final order was 5-0. The stipulated final order for permanent injunction was entered on January 23, 2008, by the U.S. District Court for the Northern District of Florida.
NOTE: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order requires approval by the court and has the force of law when signed by the judge.
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