Facts

The Federal Trade Commission sued a Baltimore-based publisher and its affiliates for pamphlets and other publications the publisher made and distributed to its consumers. The FTC filed its complaint for Permanent Injunction and Other Equitable Relief pursuant to section 13(b) of the FTC Act.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendants produced and distributed pamphlets targeted at their elderly consumers. They falsely marketed certain books as well, including "The Doctor's Guide to Reversing Diabetes in 28 Days," as simple and scientifically proven to cure type 2 diabetes in less than a month. They also defrauded consumers into investing thousands of dollars into dividend-paying stocks that did not result in the promised returns. Defendants misrepresentations were a violation of the FTC Act and there were liable for the sales that resulted from those misrepresentations.

DEFENDANT'S CONTENTIONS: Defendants denied the contentions but agreed to settle the claims asserted in lieu of litigation.

Result

The court approved a $2,000,000 settlement and injunction between the parties. Defendants were found to have made misrepresentations to elderly consumers. Therefore, the injunction also prohibited defendants from making further misrepresentations concerning their programs' health benefits or efficacy.