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Infomercial Marketers Settle With FTC
Feb 28, 2008 8:09 AM
The marketers of a purported herbal colon-cleansing program have agreed to settle Federal Trade Commission charges that they falsely claimed their program would cure cancer and other serious diseases. Among other things, the settlements broadly ban them from involvement in future infomercials for any product, service, or program, except for infomercials for informational publications, and from advertising health-related products in the future in any medium, according to the FTC. Under two stipulated final orders, 7 Day Marketing Inc., Paris DeAguero, Dieter Ammann and Laura DeAguero, are banned from any involvement in infomercials for any product, program or service and, regardless of the advertising medium, from representing that any product, program or service can cure, treat, or prevent any disease or provide health benefits, according to the FTC. Defendant Paris DeAguero appeared as “the Health Man” in nationally televised infomercials, claiming that his program cured him within weeks of skin and breast cancer without the need for surgery or other treatments, according to the FTC. One of the orders contains a monetary judgment of $14,455,123, which was suspended based on the defendants’ inability to pay. A separate settlement with Dieter Ammann also includes a monetary judgment of $14,455,123, which is suspended upon payment of $70,000, and also is based on his inability to pay, according to the FTC. The orders exempt representations made in books, newsletters, or other informational publications. In addition, the defendants are barred from misrepresenting any test or study concerning any product, program, or service. They also are prohibited from transferring, selling, or renting personal information collected from customers who purchased the program or its individual products, and they must destroy this information upon the conclusion of certain pending lawsuits, the FTC continued. Under both orders, the FTC said the full judgment will be imposed if the defendants are found to have misrepresented their financial conditions. According to the FTC, advertising for the program allegedly claimed that it also effectively prevented, treated, and cured many other diseases, including AIDS, Alzheimer’s disease, diabetes, high blood pressure, and arthritis, and that it safely caused rapid and substantial weight loss. The defendants allegedly also claimed that their product, Parasine 2, was “clinically proven” to eliminate parasites and worms, including tapeworms. The Commission alleged that their claims were false or unsupported by reliable scientific studies, in violation of the FTC Act. This case is on file at U.S. District Court in Los Angeles. |
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