Statement of Commissioner Sheila F. Anthony
In Federal Trade Commission v. Blue Stuff, Inc., et al.
File No. X020012
I have voted reluctantly to accept the Stipulated Final Order in this matter. While I agree with most of Commissioner Swindle's thoughtful statement, I write to lament the insufficiency of the monetary relief in light of the enormous gross sales and consumer injury.
Defendant Jack McClung created and controlled a web of entities that ensnared consumers with false and unsubstantiated claims for their "cure all" products. This web of entities consisted of Blue Stuff, Inc., McClung Advertising, Inc., and the Loyd B. McClung Foundation, a Section 501(c)(3) tax-exempt, not-for-profit charitable corporation. Profits from both Blue Stuff Inc. and McClung Advertising, obtained by deceiving consumers, were funneled to the Loyd McClung Foundation. I am extremely frustrated that the Commission did not press the defendants harder to obtain more of the illicitly obtained funds for consumer redress.