Supplement Marketer Fined, Banned from Direct Mail 34732

Supplement Marketer Fined, Banned from Direct Mail

WASHINGTONTheFederal Trade Commission (FTC) settled charges against Glenn Braswell that heused false and unsubstantiated claims in direct marketing of dietarysupplements, banning the defendant from future direct response advertising andlevying financial penalties. Under terms of the settlement, Braswell isprohibited from direct marketing, making false, misleading or unsubstantiatedhealth claims, misrepresenting endorsements, and misrepresenting scientificevidence for foods, drugs, supplements and health-related products, in additionto paying $1 million in fines and forfeiting assets worth more than $3.5million. In conjunction with this agreement, FTC (www.ftc.gov) also reached asettlement with an endorser for Braswells products, bringing the totalsettlements in the umbrella case to all seven corporate defendants, including G.B. Data Systems, Gero Vita International (www.gvi.com), Theraceuticals Inc.and Health Quest Publications, and four out of the five individual defendants,including Braswell and Hans Kugler.

Braswell faced a consent order stemming from 1983 charges heviolated the FTC Act in marketing baldness and anti-cellulite products but waspardoned by President Clinton in 2001; at the same time, the Internal Revenue Service (IRS), Food andDrug Administration (FDA) and FTC were investigating him for money launderingand tax evasion indictment, to which he eventually pleaded guilty. In thislatest wave of FTC charges, Braswell sold dietary supplements via direct mail,including his Journal of Longevity (www.journaloflongevity.com),which FTC considers advertising masquerading as a scientific health informationmagazine. FTC alleged Braswells mailings targeted the elderly using false andmisleading claims, incorporating reports of medical and scientific breakthroughsand expert endorsements, as well as misrepresented and misapplied scientificstudy results.

One of the largest direct mail operations at the time of thealleged advertising offenses, Braswells roster of offending products includedLung Support Formula, Gero Vita G.H.3., AntiBetic Pancreas Tonic, ChitoPlex andTesterex, all of which were touted to cure, prevent or treat illnesses such asAlzheimers disease, diabetes, erectile dysfunction and emphysema.

We charged Braswell with peddling empty promises toconsumers battling serious illnesses, said Lydia Parnes, director of the FTCsBureau of Consumer Protection. This settlement will prevent him fromprofiting from these sorts of deceptive claims in the future, and deter otherswho may think they can get away with similar practices.

Kugler, who worked as an expert endorser for Lung Support andGero Vita G.H.3., settled charges he lacked the required expertise or reasonablebasis for his endorsements. Under his agreement, FTC has banned him from makingsuch endorsements without proper expertise and evidence, and he is ordered topay $15,000 in fines.

Copies of the stipulated final orders are available atwww.ftc.gov.