Kevin Trudeau Settles FTC Claims

September 7, 2004

1 Min Read
Kevin Trudeau Settles FTC Claims

WASHINGTON--The Federal Trade Commission (FTC) announced a settlement with Kevin Trudeau that bans him from appearing in, producing or disseminating future infomercials advertising any type of product, service or program to the public, except infomercials for publications. Trudeau is also barred from making disease or health benefit claims for any type of products, and will pay $2 million to FTC, with a $20 million avalanche clause if Trudeau or his companies misrepresented their financial condition.

The settlement closes a case brought in June 2003 against Trudeau, Robert "Bob" Barefoot and several associated companies related to the sale of coral calcium dietary supplements. Barefoot and his two companies settled with FTC in January 2004.

Trudeau's history with FTC extends back to 1998, when he signed an FTC settlement regarding infomercials and health claims made for products including the Sable Hair Farming System, Mega Memory System and Howard Berg's Mega Reading system. In July 2003, Trudeau entered into a stipulated preliminary injunction prohibiting him from making challenged claims for Coral Calcium Supreme and Biotape, a purported analgesic adhesive tape. Trudeau was found in contempt of court in July 2004 for violating the 2003 preliminary injunction.

"This ban is meant to shut down an infomercial empire that has misled American consumers for years," said Lydia Parnes, acting director of FTC's Bureau of Consumer Protection. "Other habitual false advertisers should take a lesson; mend your ways or face serious consequences." Further details on the settlement are available on FTC's Web site (www.ftc.gov).

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