How a TINA.org Reader Tip Led to a Record Penalty for False Made in USA Claims
FTC says civil penalty against Williams-Sonoma is “the largest ever in a Made in USA case.”
In December 2015, a state judge preliminarily approved a settlement of a false advertising class-action lawsuit against DSM Nutritional Products.
The complaint, which was originally filed in 2011, alleges that the company falsely markets the dietary supplement i-cool for Menopause as “clinically proven to safely reduce hot flashes by up to 85%” and having the ability to provide “relief from night sweats, mood swings, and sleeplessness” when the claims are not true and without scientific or medical evidence to support them.
According to the proposed settlement terms, class members with proof of purchase may receive a full refund and class members without proof of purchase may receive one $4 payment per household. The company also agreed to provide class members with various injunctive relief, including the removal of the phrase “clinically proven to safely reduce hot flashes by up to 85 percent” from the packaging and marketing materials for the product (the company removed this phrase from the packaging in 2011).
A final approval hearing is scheduled for May 20, 2016. (Doe v. DSM Nutritional Products, LLC et al, Case No. 30-2011-00510631, Superior Court of California – Orange County)
FTC says civil penalty against Williams-Sonoma is “the largest ever in a Made in USA case.”
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