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Author Topic: Regulation of supplement marketing online found lacking  (Read 164 times)

Krik

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Regulation of supplement marketing online found lacking
« on: March 21, 2021, 08:38:30 PM »

[*quote*]
Consumer Health Digest #21-11
March 21, 2021

Consumer Health Digest is a free weekly e-mail newsletter edited by William M. London, Ed.D., M.P.H
http://www.calstatela.edu/faculty/william-m-london
., with help from Stephen Barrett, M.D
http://www.quackwatch.org/10Bio/bio.html
It summarizes scientific reports; legislative developments; enforcement actions; news reports; Web site evaluations; recommended and nonrecommended books; and other information relevant to consumer protection and consumer decision-making. Its primary focus is on health, but occasionally it includes non-health scams and practical tips. To subscribe, click here
http://lists.quackwatch.org/mailman/listinfo/chd_lists.quackwatch.org

###

Regulation of supplement marketing online found lacking

A Consumer Reports investigation has found:

Ads touting dubious cures “have ‘infested’ the internet” according to a 2018 report “Subscription Traps and Deceptive Free Trials Scam Millions with Misleading Ads and Fake Celebrity Endorsements”
https://www.bbb.org/globalassets/local-bbbs/st-louis-mo-142/st_louis_mo_142/studies/bbb-study-free-trial-offers-and-subscription-traps.pdf
by the Better Business Bureau.

Cases of online shopping fraud reported to the Federal Trade Commission increased by more than 60% in the first two quarters of 2020 compared to the first two quarters of 2019.

Businesses that move merchandise through robocalls
https://www.consumerreports.org/robocalls/coronavirus-robocall-scams-spotlight-need-for-better-consumer-protections/

spam emails
https://www.consumerreports.org/scams-fraud/smishing-silly-word-serious-fraud/

social media ads, and text messages often rely on the help of marketers, payment processors, suppliers, and retailers who may work in ways that insulate them from legal and financial backlash.

It is often difficult to figure out which companies are behind particular online retail websites.

Companies may pay contractors to bring customers to their websites, a practice called affiliate marketing.

According to John Levine, president of the Coalition Against Unsolicited Commercial Email, the monetary incentives of affiliate marketing lead contractors to use unseemly tactics to promote products.

Lawsuits filed in California and Utah allege two companies rely on fake news, exaggerated results, and affiliate marketers who use fake celebrity endorsements from such television shows such as Shark Tank and The Dr. Oz Show. The companies deny the allegations.

[Felton R. Beware dietary supplements marketed online: Overwhelmed regulators can't stop all schemers selling fake COVID-19 cures and other questionable products
https://www.consumerreports.org/dietary-supplements/beware-dietary-supplements-marketed-online/>. Consumer Reports, Mar 09, 2021]

###

U.S. “medical freedom” movement examined

An essay by Peter J. Hotez, M.D., an American scientist, pediatrician, and health advocate, discusses the history of the “medical freedom” movement in the United States. Available online as an in-press preview, the essay:

explores the movement’s efforts to undermine government regulation, promote baseless treatments and non-science-based healing systems, and oppose science-based practices such as vaccination

describes how medical-freedom efforts include opposition to legislative efforts to eliminate personal-belief exemptions from childhood vaccinations

notes that anti-vaccination activities have been accompanied by the promotion of nutritional supplements, have been followed by measles outbreaks, and are now linked to opposing both social-distancing and mask mandates to prevent the spread of COVID-19
Hotez would like a federal interagency task force created to “identify new levers for countering antiscience groups.”
[Hotez PJ. America’s deadly flirtation with anti-science and the medical freedom movement
https://www.jci.org/articles/view/149072
Journal of Clinical Investigation, Feb 25, 2021]
“Medical freedom” is commonly referred to as ”health freedom.”

###

Another fraud-related COVID-19 domain name seized

The U.S. Attorney’s Office for the District of Maryland has taken control of “usaregenermedicals.com,” which claimed that its REGEN-COVID was approved for the treatment of COVID-19 virus. It now appears that the site was intended to collect personal information from visitors that would be used for nefarious purposes, including fraud, phishing attacks, or deployment of malware. Previously seized domain names used in similar schemes were “remdesivirmx.com,” “modernatx.shop,” “mordernatx.com,” and “regeneronmedicals.com.”
[Maryland U.S. Attorney's office seizes fifth domain name purporting to be the website of a biotech company producing a treatment for COVID-19
https://www.justice.gov/usao-md/pr/maryland-us-attorneys-office-seizes-fifth-domain-name-purporting-be-website-biotech
U.S. Attorney’s Office District of Maryland news release, Mar 9, 2021]

###

Multilevel-marketing company pitches scrutinized

A management consulting firm has characterized multilevel marketing (MLM)
https://quackwatch.org/mlm/
companies as using “fraud, deceit, and outright lies in a flawed business model.”

The firm refutes an MLM promoter’s twelve reasons that people should pursue direct-sales opportunities in MLM companies. It characterizes each of those reasons as a false promise.
[12 false promises MLM companies often make
https://laconteconsulting.com/2020/07/03/12-false-promises-mlm/

LaConte Consulting, July 3, 2020] The twelve false promises are:

“You can work from anywhere!”
“You decide how much effort you put in.”
“It rewards those who work hard.”
“You get to be your own boss!”
“The hours are flexible.”
“Startup costs are lower than for other businesses.”
“It provides you with extra income.”
“You will save money on childcare expenses.”
“It gives you goals to work toward.”
“You’ll feel supported and make lifelong friends.”
“You can buy high-quality products at a discount.”
“MLMs are fun!”

###

Permanent injunction issued against dietary supplement manufacturer

A federal judge has entered an order of permanent injunction against Confidence USA Inc. of Long Island, New York, company President Helen Chian, and General Manager and Founder Jim Chao. The defendants are required to cease manufacturing, holding, or distributing dietary supplements until the U.S. Food and Drug Administration (FDA) says they can resume operations. The defendants were found in violation of the Food, Drug, and Cosmetic Act because their products were prepared, packed, or held in violation of the Current Good Manufacturing Practices for dietary supplements.

Multiple FDA inspections showed that the defendants:

(a) repeatedly failed to verify the identity of each dietary ingredient used in the manufacture of their supplements, and

(b) failed to verify that their products met specifications for purity, strength, composition, and contamination limits.

Confidence USA Inc. has manufactured and distributed more than 50 products under brand names that include Confidence USA, American Best, USA Natural, and The Herbal Store. The products have been available through Amazon, Walmart, and its own online store at
http://www.confidenceusa.com.
[Federal judge enters permanent injunction against New York-based dietary supplement manufacturer
https://www.fda.gov/news-events/press-announcements/federal-judge-enters-permanent-injunction-against-new-york-based-dietary-supplement-manufacturer
FDA news release, Mar 4, 2021]

===========================

Stephen Barrett, M.D.
Consumer Advocate
287 Fearrington Post
Pittsboro, NC 27312

Telephone: (919) 533-6009

http://www.quackwatch.org (health fraud and quackery)
[*/quote*]
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