| U.S. Federal Trade Commission |
FTC News Release, June 9, 2005
FTC Targets Bogus Anti-Aging Claims for Pills and Sprays Promising Human Growth Hormone Benefits
Settlement Provides Up To $20 Million In Consumer Redress
Two Florida businesses have agreed to a
federal court order requiring them to pay up to $20 million in
consumer redress – the largest monetary judgment ever obtained
in an FTC health fraud case – to settle charges that they
deceptively claimed that their pills and sprays would increase
consumers’ human growth hormone (HGH) levels and provide
anti-aging benefits, including weight loss and increased
cognitive function. In addition, the Commission has issued
warning letters to more than 90 Internet marketers making
similar claims.
“Early explorers searched without success
for a fountain of youth, and modern marketers promise that it
can be found in pills and sprays,” said Lydia Parnes, Director
of the FTC’s Bureau of Consumer Protection. “Those promises
are illusory. Unfortunately, no pill or spray can turn back
the hands of time.”
Complaint Allegations
The defendants named in the FTC’s complaint
are two Destin, Florida, corporations, Great American
Products, Inc. (GAP) and Physician’s Choice, Inc. (PCI); and
two individuals, Stephan Karian and Michael Teplitsky, M.D.,
also known as Michael Teplisky. Karian is an officer of both
corporations and Teplitsky formulated PCI’s product line and
appears in its advertising.
According to the FTC, the
defendants’ advertising deceptively claimed that two dietary
supplements and two sublingual (under-the-tongue) sprays would
increase blood levels of HGH and provide a wide variety of
anti-aging benefits. The defendants’ HGH enhancers typically
sold for $100 for a three-month supply; total sales exceeded
$70 million. The complaint also challenges health benefit
claims for four additional products and alleges that the
defendant’s radio and television infomercials had deceptive
formats. In addition, the complaint alleges that the
defendants violated the Telemarketing Sales Rule (TSR) when
they sold additional products to consumers who called to order
the defendants’ products.
The complaint alleges that ads for the
dietary supplements Ultimate HGH and Super HGH Booster and the
sublingual sprays Master HGH and Super HGH promise that these
products will significantly increase growth hormone levels;
provide the benefits purportedly shown in various studies
involving prescription-only HGH injections; and provide
physical benefits including reduced fat, cholesterol, and
blood pressure, increased muscle mass, and improved cognitive,
immune, and sexual function. According to the FTC, these
claims are false or unsubstantiated.
The FTC’s
complaint also alleges that GAP, PCI, Karian, and Teplitsky
made deceptive claims that Fat Blaster and Super Carbo Blocker
cause weight loss by suppressing appetite, reducing the
conversion of carbohydrates to fats, and enhancing metabolism;
and that Ultimate Wild Oregano Oil and Super Wild Oregano Oil
prevent colds and flu and, when taken orally, treat and
relieve bacterial and viral infections and their symptoms. The
complaint further alleges that defendants GAP, PCI, Karian,
and Teplitsky falsely represented that programs for their
products are independent radio or television shows when, in
fact, they are paid-for commercials. Finally, the complaint
alleges that the defendants violated the TSR by failing to
obtain express, informed consent to charge consumers’ credit
cards when “upselling” additional products after a first
telemarketing sale was completed.
Order Provisions
The FTC and the defendants have agreed to an
order to settle the complaint allegations. It requires that
future claims for HGH supplements, HGH sprays, Fat
Blaster/Super Carbo Blocker, wild oregano oil products, or any
dietary supplement, food, or drug, or any service purporting
to provide health-related benefits, be true, non-misleading,
and substantiated. It further prohibits the defendants from
misrepresenting test results; prohibits the defendants from
misrepresenting that an ad is not paid-for; and requires
disclosures regarding the paid-for nature of long-form radio
and television advertisements. The settlement prohibits the
defendants from violating the TSR, including TSR provisions
requiring express informed consent of the consumer when
“upselling” additional products after a first telemarketing
sale has been completed.
The order requires the defendants to pay up
to $20 million in consumer redress. It requires an immediate
payment of $6.5 million and provides for establishment of a
consumer redress program to be operated by the FTC. The order
requires that the defendants pay as much as an additional
$13.5 million, depending upon how many eligible purchasers
submit redress requests. Consumers who are eligible for
redress will be contacted by the FTC within the next 45 days.
The settlement also contains two separate
avalanche clauses providing for a total potential liability of
$80 million – an amount representing total product sales – in
the event that the defendants misrepresented their finances.
Finally, it contains various record-keeping requirements to
assist the FTC in monitoring compliance with the order.
The FTC has set up a hotline number,
202-326-2141, for consumers with questions about the court’s
order or the refund program in this case.
The defendants' practices were the subject
of a referral to the FTC from the Electronic Retailing
Self-Regulation Program.
FTC Warning Letters
In addition to the settlement, the FTC has
begun sending warning letters to more than 90 Internet
operators that are selling alleged HGH enhancers for
anti-aging benefits. In its warning letters, the FTC states
that it is not aware of any competent and reliable scientific
evidence to support claims that pills and sprays can increase
the body’s HGH levels and provide anti-aging benefits. It
warns that unsupported claims are unlawful under the FTC Act,
and instructs the recipients of the letters to discontinue any
deceptive claims immediately.
FTC Consumer Brochure
The FTC also has published a new consumer
brochure about so-called HGH enhancers. HGH is a hormone
released by the pituitary gland that plays a role in human
development. The new FTC brochure, entitled “‘HGH’ Pills and
Sprays: Human Growth Hype?,” warns that neither the FTC nor
the Food and Drug Administration is aware of any reliable
evidence that pills and sprays described as containing HGH or
as HGH “boosters” or “releasers” provide anti-aging benefits.
The brochure cautions that if consumers are tempted to buy any
non-prescription product that:
- claims to contain HGH or to boost the
body’s production of it,
- promises easy weight loss, an effortless
increase in muscle mass, or other “too-good-to-be-true”
benefits, or
- touts itself as an “anti-aging” shortcut
to health and vitality,they should exercise doubt, and check
it out with their health care provider.
NOTE: The stipulated order
is for settlement purposes only and does not constitute an
admission by the defendants of a law violation.
The Commission vote
authorizing staff to file the complaint and proposed
stipulated orders was 5-0. The complaint and
stipulated order was entered by the U.S. District Court for
the Northern District of Florida on May 20, 2005.
The text in this article was prepared by the U.S. Federal Trade Commission.