Word: ftc
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...million fine for making false claims for the device, as well as for two other products, Y-Bron, an impotence remedy, and Foliplexx, a treatment for baldness. At least six more infomercials are currently under investigation. "People are mesmerized by TV," says Barry Cutler, director of the FTC's Bureau of Consumer Protection. "They wouldn't give this stuff a second thought if they saw it on the back of some supermarket magazine. But they believe it because it's on television...
...C.F.A. opponents beginning next year. Other participating C.F.A. schools may sell TV rights to local stations on other days. Capital Cities/ABC and the C.F.A. denied the charges in the complaint. Among other things, they noted that home games of Notre Dame, a C.F.A. member, will be on NBC. An FTC judge in Washington is to try the case...
...Federal Trade Commission, which regulates advertising, has started to pay a bit more attention to the diet business. After having filed a mere 13 lawsuits against the industry in the entire decade of the '80s, the FTC has brought three cases this year. One action involved a diet pill that when swallowed, according to the ads, would break "into thousands of particles, each acting like a tiny magnet." Fat cells would allegedly be attracted to the "magnets" and eliminated through the digestive system. In addition to - going after such obvious frauds, the FTC has initiated a broad investigation of diet...
...Brokers in their garage, mailing flyers to consumers around the country that promised Hawaiian vacations for just $29. Gullible customers who called in their orders received a voucher entitling them to book a trip through the agency, but at a cost of several hundred dollars more. By the time FTC investigators took the company to court, the outfit had taken in more than $6 million...
...laws stand in the way of these scams, partly because they have taken forms that were not anticipated when current statutes were written. In addition, laws covering such crimes as interstate wire fraud are difficult to use against the relatively small swindles usually worked on consumers. The FTC has now joined forces with consumer groups, telephone businesses, securities regulators and banking officials in an organization called Alliance Against Fraud in Telemarketing, which is pressing for legislation to curb telescams. A House bill under consideration would toughen FTC rules on telemarketing and allow state law-enforcement officials, as well as companies...