By: Linda L. Goodman
A company that marketed and sold a pill called Nobetes, has settled with the Federal Trade Commission (“FTC”) in a case that alleged that the company falsely advertised the Nobetes pill they claimed treated diabetes.
The FTC Complaint alleges that from 2015 through 2018, the Nobetes Corporation along with the officers, Marvin Silver and Jeffrey Fleitman, advertised the Nobetes pill on television, radio, Facebook and YouTube. In those advertisements, claims of “all-natural supplement, large reductions in blood sugar levels, reduction of use of insulin, helps control blood sugar within normal levels, 35 supplements that can fill the nutritional shortages that diabetes causes, this is a miracle product you’ve been waiting for, treats diabetes, keeps blood sugar within normal levels and reduces of eliminates the need for medications such as insulin”, are false or unsubstantiated.
The complaint alleges that in the promotional materials and advertising that Mitch Darnell was a scientific or medical expert but in fact he was an actor to promote Nobetes. There was no disclosure that the consumer endorsers were supplied with free products.
The complaint also alleges that the defendants misused the credit card information for consumers by using the consumer credit card offer again after the shipping and handling charges for the free bottle 30 days later for another shipment of the product.
Finally, in the complaint, the defendants continued to make diabetes benefit claims even after the FDA and the FTC warned the defendants, in 2016, that they needed reliable scientific evidence, including, when appropriate, well-controlled human clinical studies, to support health claims for Nobetes.
The final settlement order bans the company and its officers from advertising or selling Nobetes or any other diabetes product. It prohibits them from making health related claims to include claims that use of a product will prevent, mitigate or cure any disease unless the claim is not misleading and is supported by competent and reliable scientific evidence. They are prohibited from undertaking future deceptive practices, making unsubstantiated health claims, misleading consumers about the terms of “free trial” offers, billing consumers without their consent, negative option sales features, practices related to the use of “expert” endorsements and consumer testimonials. The defendants are required to pay a judgment of $182,000 to the FTC.
For more information and to view the full Press Release, go to the FTC’s website here: https://www.ftc.gov/news-events/press-releases/2018/12/nobetes-dietary-supplement-marketers-settle-ftc-complaint
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This article is a publication of The Goodman Law Firm and is intended to provide information on recent legal developments. This article does not create an attorney-client relationship, nor should it be construed as legal advice or an opinion on specific situations. This may constitute “Attorney Advertising” under the Rules of Professional Conduct and under the law of other jurisdictions.
Linda L. Goodman is the founder of The Goodman Law Firm, concentrating its practice in internet business and law. Her firm’s clients include Advertisers, Affiliates, Affiliate Networks, and ISP’s.
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