Industry Roundup: FTC, FDA Enforcement, Mannatech CEO, Quell Distribution

Commissioner Maureen Ohlhausen says Federal Trade Commission enforcement against firms that FTC officials allege made unsubstantiated claims for purported “melanoma detection” applications could stifle consumer health product development. FTC litigation against UK firm L Health Ld. and other marketers linked to the devices relies on “an unduly expansive interpretation of advertising claims to justify imposing an inappropriately high substantiation requirement on a relatively safe product,” Ohlhausen said in a dissent she made for each agency action against the firms. She added that “this course of action will inhibit the development of beneficial products and chill the dissemination of useful health information to consumers.” FTC said Aug. 13 that L Health settled charges in connection with the “Mole Detective” apps after advertising the apps online beginning in August 2012 after a separate company, New Consumer Solutions LLC, ceased marketing the products following FTC enforcement.

According to FTC’s complaint filed in federal court in Illinois, the Mole Detective apps instructed users to photograph a mole with a smartphone camera and input other information the apps used to allegedly determine the mole’s melanoma risk to be low, medium or high. The FTC alleged that without substantiation, the firms deceptively claimed the apps accurately analyzed melanoma risk and could assess such risk in early stages. The proposed settlement prohibits L Health from making misleading or unsubstantiated claims about the health benefits or efficacy of any product or service and imposes a judgment of more than $58,000, which is suspended based on the firm’s inability to pay