FTC Follows Through On Prioritizing Investigations Into False Advertising In Healthcare Markets – Media, Telecoms, IT, Entertainment – United States -…

15 October 2021

Perkins Coie LLP

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Key Takeaways:

On July 1, 2021, the FTC adopted aseries ofresolutionsauthorizing investigations into several areasdesignated as key law enforcement priorities during the next tenyears.One of thoseresolutionsdesignates "acts or practices affectinghealthcare markets" as an enforcement priority.

In the months after adopting this broad mandate, the FTC hasactively pursued false and deceptive advertising in healthcaremarkets.

For example, on August 16, 2021, the FTC and the GeorgiaAttorney Generalsuedthe co-founders ofthe Stem Cell Institute of America for false marketing inadvertising stem cell therapy to seniors. Specifically, thedefendants advertised their stem cell therapies as effectivelytreating orthopedic conditions and diseases. The FTC and theGeorgia Attorney General alleged that the defendants neverconducted any randomized clinical testing of the treatments tosupport these claims and that no other studies exist demonstratingthat stem cell treatments are effective in treating any orthopedicconditions or diseases.

Similarly, in early September 2021, theFTC sent cease-and-desistlettersto ten different companies demanding that they,among other things, stop selling unapproved diabetes products andmaking efficacy claims that are not supported by sufficientevidence.

These two actions, coming on the heels of the resolutionprioritizing enforcement in the healthcare industry, may portendaggressive FTC policing of healthcare-related advertising.Accordingly, companies offering healthcare services orproductsespecially those offering treatmentsshouldensure that their advertisements are backed up by competent andreliable scientific evidence.

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FTC Follows Through On Prioritizing Investigations Into False Advertising In Healthcare Markets - Media, Telecoms, IT, Entertainment - United States -...