FTC Sues Marketers of Weight-Loss Supplements for Threatening To Gag Consumers for Posting Negative Reviews
The FTC sued the marketers of a line of weight-loss supplements who threatened to enforce “gag clause” provisions against consumers who posted negative reviews and testimonials online, citing a violation of the terms and conditions, an FTC news release said…
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Monday. In a complaint filed in U.S. District Court for the Middle District of Florida last week, the FTC alleged Roca Labs, Roca Labs Nutraceutical USA and their principals caused harm to consumers by “unfairly barring purchasers from sharing truthful negative comments about the defendants and their products,” as well as for deceptive advertising practices, the release said. The defendants would pay 50 percent of the product's price for those who posted positive reviews and threatened those who posted negative reviews that they would have to pay full price -- hundreds of dollars more than advertised -- if they violated the gag clause provisions, it said. The vote to issue the complaint was unanimous. Roca Labs agreed last week to a temporary restraining order regarding its deceptive marketing practices and gag clause. Its website is temporarily down, and the company’s Facebook page is no longer available. Sen. Brian Schatz, D-Hawaii, applauded the FTC’s action. “Consumers should have the right to share their experiences and honest opinions of any business,” he said in a statement Monday. Attempts by companies to suppress that right through non-disparagement clauses and threats of litigation are unfair, Schatz said. The action "sends a strong signal to business owners that tactics to intimidate consumers will not go unchallenged,” he said. Earlier this year, Schatz introduced the Consumer Review Freedom Act (S-2044), with Sens. John Thune, R-S.D., and Jerry Moran, R-Kan., which protects consumers from unfair non-disparagement clauses that are appearing in a growing number of non-negotiable form contracts.