FTC Settles Charges with HGH Marketers

WASHINGTONTwo Internet marketers of oral sprays that supposedly contained or caused the body to produce human growth hormone (HGH) have settled charges from the Federal Trade Commission (FTC) that their marketing claims were bogus; one group of defendants will pay $172,500 in consumer redress. Among the claims touted on the Web sites and in e-mails were reports that the products could help users lose weight while you sleep without diet or exercise, reverse the aging process and prevent or cure diseases associated with aging. Further, FTC charged the companies with making sales over the Web site that were supposedly encrypted, but were not actually protected, making the consumers information vulnerable to capture.

FTCs first order, against John A. Brackett, Jr., and his company, Pacific Herbal Sciences, also prohibits violations of the CAN-SPAM Act; FTC charged the company falsely identified the sender, used deceptive subject headings and didnt allow consumers to decline future e-mails. The order included a $762,000 monetary judgment, suspended based on financial disclosure but with an avalanche clause.

The second order, against Lei Lu and his companies Natural Health Product Inc. and New Star Marketing Group Inc., included a $2.2 million monetary judgment; based on financial disclosure, the defendants will pay $172,500. Again, if the companies lied about the financial status, they will be liable for the entire judgment amount.

Both orders prohibit misrepresentations in marketing dietary supplements, drugs, foods or services, including claims for product benefits, studies and research, and representations made without possessing competent and reliable scientific evidence. The orders also prohibit misrepresenting the security of Web site pages.