A health products company has recently settled their claim with the state of Maine and the FTC regarding false advertising allegations. Both the state of Maine and the Federal Trade Commission brought forth charges that consumers were deceived with promises that the products could treat everything from memory loss to arthritis.
Deceptive Auto-Renewal Claims Remain After False Advertising Claims Settled
The defendants were barred from engaging in a broad range of business practices because the agencies alleged financial injuries to consumers have already occurred. Health Research Laboratories LLC and Kramer Duhon marketed two of their health products, NeuroPlus and BioTherapex, are associated with a broad range of unsupported and false claims.
In addition to allegations of false advertising, consumers also report problems with canceling the subscription service. Others say they never knew they were even signing up for a subscription service to begin with. These claims of deceptive auto-renewal practices may also be against the law.
NeuroPlus is marketed as a successful brain supplement whereas BioTherapex reportedly addresses many ailments associated with the liver. The products were both sold for just under $40 per bottle.
The NeuroPlus product allegedly would protect users from developing dementia and Alzheimer’s disease in addition to reversing memory loss. According to the FTC and State of Maine charges, the health and effectiveness claims are unsubstantiated or false. Furthermore, deceptive auto renewal practices were also alleged against the companies because they were misrepresenting the terms of the risk-free trial period.
Deceptive Auto-Renewal Practices Include Lack of Disclosure
Consumers were enrolled automatically in renewal plans without proper disclosure alleges the lawsuit. Consumers’ debit card numbers were obtained and charged without appropriate authorization, violating the Electronic Fund Transfer Act.
Deceptive auto renewal practices have come under fire in recent years as a number of different subscription companies and product makers have attempted to use the subscription model to boost their business without giving proper disclosures or easy cancellation policies to the consumers who enroll. Some consumers never even knew that by signing up for a free trial or providing their credit card information that they would ultimately be charged in future months. Identifying these details on a credit card or bank statement can be a challenge further complicated by the fact that it’s often difficult or impossible to cancel these subscriptions easily.
The companies were also accused of failing to disclose the material terms of their cancellation and refund policy and misrepresenting the cost of the products to Canadian consumers.
In order to make any other claims about the health benefits of their food, drug or dietary supplements in the future, the defendants must have reliable and competent scientific evidence.
If you believe you have grounds for a legal claim because of false advertising or deceptive auto renewal practices, you need to consult with a law firm dedicated to helping your best interests. The attorneys at Bradley/Grombacher are currently investigating claims of deceptive auto renewal practices. Fill out the form on this page to learn more.
Note: Bradley/Grombacher is not representing the plaintiff in this lawsuit