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Note:This website is where you can find advertising law information based on archived news briefs from past issues of Advertising Compliance Service. These archived advertising law-related news briefs were published in Advertising Compliance Service in September 2004.

 

 

 

 


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FTC BAN IS MEANT TO "SHUT DOWN AN INFOMERCIAL EMPIRE"

An FTC settlement with Kevin Trudeau broadly bans him from appearing in, producing, or disseminating future infomercials that advertise any type of product, service, or program to the public, except for truthful infomercials for informational publications. FTC called Trudeau a prolific marketer who has either appeared in or produced hundreds of infomercials. Moreover, Trudeau cannot make disease or health benefits claims for any type of product, service, or program in any advertising, including print, radio, Internet, TV, and direct mail solicitations, regardless of the format and duration. Trudeau agreed to these prohibitions and to pay FTC $2 million to settle charges that he falsely claimed that a coral calcium product can cure cancer and other serious diseases and that a purported analgesic called Biotape can permanently cure or relieve severe pain.

"This ban is meant to shut down an infomercial empire that has misled American consumers for years." So said Lydia Parnes, Acting Director of FTC's Bureau of Consumer Protection. "Other habitual false advertisers should take a lesson; mend your ways or face serious consequences."

NOTE: This 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 has the force of law when signed by the judge.

(FTC v. Kevin Trudeau, Shop America (USA) LLC, Shop America Marketing Group, LLC, Trustar Global Media, Limited, Robert Barefoot, Deonna Enterprises, Inc., and Karbo Enterprises, Inc., Defendants, and K.T. Corporation, Limited, and Trucom, LLC, Relief Defendants, United States District Court, Northern District of Illinois, Eastern Division, and, Federal Trade Commission, Plaintiff v. Kevin Trudeau, Defendant., United States District Court, Northern District of Illinois, Eastern Division Civ. No. 98-C-0168, File No. 032 3064, Civil Action No. 03 C3904, September 7, 2004.)

(See also:

FTC v. Kevin Trudeau; Shop America (USA) LLC; Robert Barefoot; and Deonna Enterprises, Inc. (Northern District of Illinois), File No. 032 3064, Civil Action No. 03 C3904, July 8, 2004.

Kevin Trudeau; Robert Barefoot; Shop America (USA), LLC; and Deonna Enterprises, Inc., FTC File No. (Coral Calcium) 032 3064, Civil Action No. 03 C 904), June 10, 2003.

Federal Trade Commission v. Kevin Trudeau; Shop America (USA) LLC; Robert Barefoot; and Deonna Enterprises, Inc. (Northern District of Illinois), FTC File No. (Trudeau) X980014; Civil Action No. 98 C 0168, June 10, 2003.

FTC Release, January 22, 2004.

Advertising Compliance Service, Tab #17, Food, Drugs, Cosmetics, Article #101

Advertising Compliance Service, Tab #17, Food, Drugs, Cosmetics, Article #82.

Advertising Compliance Service, Tab #4, False, Unfair, Deceptive, Article #176.)

LEIBOWITZ SWORN IN AS FTC COMMISSIONER

Jon Leibowitz, most recently vice president of congressional affairs for the Motion Picture Association of America (MPAA), has been sworn in as a commissioner. Leibowitz joins FTC approximately two weeks after the swearing-in of Chairman Deborah Majoras.

Before holding his position at MPAA, where he worked as the film industry's liaison to members of Congress, Leibowitz was the Democratic chief counsel and staff director for the U.S. Senate Antitrust Subcommittee from 1997 to 2000. He worked concurrently as chief counsel to Senator Herb Kohl from 1989 to 2000. His other Capitol Hill experience includes stints as chief counsel to the U.S. Senate Subcommittee on Terrorism and Technology from 1995 to 1996 and the U.S. Senate Subcommittee on Juvenile Justice from 1991 to 1994. He worked for Senator Paul Simon from 1986 to 1987 and as an attorney in private practice in Washington from 1984 to 1986.

Leibowitz succeeds Mozelle W. Thompson, who had been an FTC commissioner since 1997.

(FTC Release, September 3, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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