A federal judge has ruled in favor of the Federal Trade Commission, finding supplement marketer Lane Labs-USA Inc., and its president Andrew Lane in contempt of a court order that bars them from making deceptive health claims.
In 2000, the FTC charged Lane Labs with making unsupported and false claims that BeneFin and Skin Answer, a shark cartilage product and a skin cream, could prevent, treat, or cure cancer, and were clinically proven to do so.
Lane Labs and Andrew Lane settled the charges by agreeing to a court order that barred them from making unsupported health claims about any food, drug, or dietary supplement.
In 2007, the FTC filed civil contempt charges against the defendants alleging that they violated the 2000 order based on their advertising and marketing of AdvaCAL, a calcium supplement the defendants touted as vastly superior to competing calcium products and prescription drugs used to treat osteoporosis. The charges were filed in the U.S. District Court for the District of New Jersey.
Violated court order
The district court ruled last month that the defendants violated the 2000 order by making unsupported claims that AdvaCAL is three-to-four times more absorbable than other calcium supplements, and distorting the results of tests and studies on AdvaCAL and competing calcium supplements. The district court also rejected the defendants’ claim that they substantially complied with the order, because their violations were not merely technical or inadvertent.
The recent decision follows an October 2010 ruling from the Third Circuit Court of Appeals overturning the district court’s original denial of the FTC’s contempt motion. The appeals court determined that the defendants had violated the order by making unsupported claims that AdvaCAL was comparable or superior to prescription drugs. The appeals court then sent the case back to the district court, which ruled last month that the defendants were in contempt.