FTC Obtains $2.5 Million Spam Judgment

The Federal Trade Commission has obtained a $2.5 million judgment against Sili Neutraceuticals and Brian McDaid, individually, and doing business as Kaycon Ltd. for Can Spam and FTC Act false advertising violations.

U.S. District Court Judge David H. Coar, for the Northern District of Illinois Eastern Division, ordered the company and McDaid to stop misrepresenting dietary supplements and stop sending illegal spam e-mail promotions.

The FTC charged that false weight loss claims and reverse aging advertising claims were made in connection with hoodia and human hormone based products. E-mail offers for such products generated Web site traffic and sales.

The court ruled these e-mail promotions had misleading subject headings and that no clear opt out notice was provided, nor was a valid return e-mail or postal address available for consumers to decline further offers.