Friday, January 4, 2008

FTC Wins Fraud Case Against Infomercial Marketer

In a decision released yesterday, the Seventh Circuit Court of Appeals affirmed a multi-million dollar judgment against QT, Inc., the seller of the Q-Ray Ionized Bracelet.

QT made millions selling the product to desperate consumers, claiming its "Q rays" were a miracle cure that relieved all sorts of chronic pain. Independent medical research found that it was about as effective as a placebo.

A federal judge heard the evidence and stuck the company with fines and ordered refunds, as well. The numbers run into the tens of millions.

News reports scattered around the internet today point out that the company filed bankruptcy, and yet it continues to sell the product using product testimonials.

The opinion--written by Judge Easterbrook--makes for amusing reading. He labels the company's claims about biofeedback, Q Waves and energy balancing as "blather." In affirming the trial court, the appeals court concluded that the judge hearing the case was in the best position to weigh the evidence.

I'm reminded of a film I saw quite by accident a few months ago. It was a Spanish film called Ladrones Robben Ladrones (Thieves Rob Thieves) in which the bogus marketing of a miracle cure is at the heart of a terrific heist film. It's one of those good guys win in the end films. Sort of like this case.

David F. Sugerman
Paul & Sugerman, PC

No comments: