Court Rules in Favor of FTC, Orders Supplement Marketers to Pay Nearly $70
Million for Consumer Refunds
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.
MEDIA CONTACT:
Betsy Lordan
Office of Public Affairs
202-326-3707
STAFF CONTACT:
Edward Glennon Bureau of Consumer Protection
202-326-3126
(DMC NR.wpd)
(FTC File No. 023 3138)
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