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Welcome to our monthly digest of litigation and regulatory highlights impacting the personal care product and dietary supplement industry. April saw a re-emphasis on restriction of COVID-related claims in advertisements for supplements and therapies, developments in various class action cases, including a win for consumers challenging hand sanitizer’s claims of killing 99.99% of germs and a slew of new “natural” class actions, and finally a roller coaster ride for the FTC involving major blows and power moves.
Let’s take a look….
NAD
NAD determined that certain advertising claims made by Zarbee’s, Inc. for its cough products sufficiently identify that honey is the source of the cough soothing benefit and would not reasonably mislead consumers as to the reason for the product’s cough soothing efficacy. However, NAD found that other claims, which could reasonably suggest that the cough soothing benefit was
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SCOTUS: No Equitable Monetary Relief for FTC Under § 13(b)
Well, the buck stops here (for now).
In AMG Capital Management, LLC v. Federal Trade Commission, the Supreme Court unanimously ruled that Section 13(b) of the Federal Trade Commission (FTC) Act does not authorize the FTC to obtain equitable monetary relief such as restitution or disgorgement. This highly anticipated landmark decision reverses decades of precedent and strips the FTC of one of its key enforcement tools for obtaining consumer redress. The decision will likely represent a sea change in FTC enforcement practices. Read more here.
First FTC Complaint Filed Under New COVID-19 Consumer Protection Act
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Molly Butler / Media Matters
Missouri chiropractor Eric Anthony Nepute and his business Quickwork LLC are the first entity to be reviewed under the COVID-19 Consumer Protection Act, with a federal complaint looking at Facebook marketing claims that his zinc and vitamin D products can cure or prevent COVID-19. Facebook removed some of Nepute’s videos after he was named in the complaint, but the platform has not removed all of his Facebook and Instagram accounts that spread harmful medical misinformation and violate the platforms’ Terms of Service.
Nepute’s remainingFacebook and Instagram pages are riddled with COVID-19 and vaccine misinformation. And his pages include video content that violates Facebook and Instagram’s Terms of Service against spreading COVID-19misinformation by “promoting that others not get the COVID-19 vaccine” and advertising “prohibited content” that uses “the public health crisis to create a sense of urgency or incite fear” to buy a prod
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