For
Release: January
22, 2004
Marketers
of Coral Calcium Product Are Prohibited from Making Disease
Treatment and Cure Claims in Advertising
Under a settlement with the Federal Trade
Commission, Robert Barefoot, Deonna Enterprises, Inc., and
Karbo Enterprises, Inc. are prohibited from making claims
that the dietary supplement “Coral Calcium Supreme”
or any other coral calcium product can treat or cure cancer,
multiple sclerosis, heart disease, high blood pressure, and
other serious diseases. The defendants also cannot make unsupported
claims that the body absorbs coral calcium better than other
calcium supplements in the market.
The settlement resolves charges in a June
9, 2003 complaint filed by the Commission in the federal district
court alleging that the settling defendants, together with
defendants Kevin Trudeau, Shop America (USA), LLC, Shop America
Marketing Group, LLC, and TruStar Global Media, Ltd., made
false and unsubstantiated claims in a widely disseminated
infomercial that Coral Calcium Supreme would treat or cure
cancer, MS, heart disease and other serious diseases. The
FTC also challenged claims that a daily serving of Coral Calcium
Supreme provides the same amount of bioavailable calcium as
two gallons of milk, and that the body absorbs significantly
more of the calcium in coral calcium – up to 100 times
more, and at a significantly faster rate – than the
calcium contained in commonly available calcium supplements.
(The case against Kevin Trudeau and his companies still is
pending.)
The FTC alleges that the challenged claims
go far beyond the existing scientific evidence concerning
the recognized health benefits of calcium.
Under the settlement, the defendants cannot
make the challenged efficacy claims including that scientific
research proves that calcium supplements are able to reverse
or cure cancer in the human body. The settlement also prohibits
the defendants from making the types of comparative bioavailability
claims challenged in the complaint. In addition, the settlement
prohibits the defendants from misrepresenting that any dietary
supplement can prevent, treat, or cure any disease and from
making unsubstantiated claims about the health benefits, performance,or
efficacy for all dietary supplements, foods, drugs, cosmetics,
devices, or services. The settlement further prohibits the
defendants from misrepresenting the existence, contents, validity,
results, conclusions, or interpretations of any test or study
for any foods, drugs, dietary supplements, cosmetics, or services.
The settlement requires the defendants
to recall any product packaging that makes the challenged
claims. It also requires them to send a notice to resellers
and distributors advising them of the FTC’s action,
and directing them to stop using promotional materials containing
the deceptive claims, and informing them that if they do not
comply, the defendants will stop doing business with them.
The settlement allows the FTC to recover
all royalties owed to defendant Barefoot in connection with
the Coral Calcium Supreme infomercial marketing. Based on
the defendants’ financial condition, the settlement
does not require additional redress. The settlement does,
however, contain an avalanche clause of $3 million, if the
court finds that the defendants misrepresented their financial
condition.
Finally, the settlement contains various
recordkeeping requirements to assist the FTC in monitoring
the defendants’ compliance.
The Commission vote to authorize staff
to file the proposed stipulated final order for permanent
injunction was 5-0. The stipulated final order was entered
by the U.S. District Court, Northern District of Illinois,
Eastern Division, on January 15, 2004.
Copies
of the stipulated final order for permanent injunction are
available from the FTC’s Web site at http://www.ftc.gov
and also from the FTC’s Consumer Response Center, Room
130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
The FTC works for the consumer to prevent fraudulent, deceptive,
and unfair business practices in the marketplace and to provide
information to help consumers spot, stop, and avoid them.
To file a complaint, or to get free information on any of
150 consumer topics, call toll-free, 1-877-FTC-HELP (1 877-382-4357),
or use the complaint form at http://www.ftc.gov.
The FTC enters Internet, telemarketing, identity theft, and
other fraud-related complaints into Consumer Sentinel, a secure,
online database available to hundreds of civil and criminal
law enforcement agencies in the U.S. and abroad.
MEDIA CONTACT:
Brenda Mack,
Office of Public Affairs
202-326-2182
STAFF CONTACT:
Heather Hippsley or Daniel Kaufman
Bureau of Consumer Protection
202-326-3285 or 202-326-2675
(FTC Matter No. X030066)
(Civil Action No. 03-C-3904)
(http://www.ftc.gov/opa/2004/01/barefoot.htm)
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Related Documents:
Federal
Trade Commission v. Kevin Trudeau; Shop America (USA)
LLC; Robert Barefoot; and Deonna Enterprises, Inc. (Northern
District of Illinois), File
No. 032 3064, Civ. No.
03-C-3904
Operation
Cure-All Web site
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