Companies in Trouble
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Transcript Companies in Trouble
Dietary Supplements
Kaley McNay – Anda Shiarla –Nathan
Sparks
Weight Loss Drugs
Kaley McNay – Anda Shiarla –Nathan
Sparks
http://www.youtube.com/watch?v=f2UxVeDSDTk
Watch video
Up Until the 1930’s…
Legislation to protect consumers
•1906 – Pure Food and Drugs Act (spawned FDA) was
eventually ruled unenforceable for therapeutic drugs
•1912 – Shirley Amendment made patent medicine fraud
prosecutable, still nearly unenforceable as actual fraud had
to be proven
•1938 – Food Drugs and Cosmetics Act gave FDA more
power over therapeutic drugs, added pre-market approval
•1951 – Humphrey Durham Amendment
•1962 – Drug Amendments now made it so drugs had to be
safe and effective
•Laws since the 1960’s
Companies in Trouble
Trimspa
Fined $1.5 million by
the FTC
Claims not supported
by scientific evidence
CortiSlim
Surrendered assets
worth $12 million to
settle FTC charges
False claims of weight
loss
Companies in Trouble
Bayer
Fined $3.2 million by the
FTC
Violated order by FTC
requiring scientific evidence
USA Prescriptions Inc.
Weight Watcher’s sued the
software company
Pop-up ads for diet pills on
Weight Watcher’s website
Deceived the customers
Dietary Supplements
Ingredients
Thyroid extracts
Acts like human thyroid
hormones
Increase metabolism
Fat burners
Raise metabolism
Break down body fat
Ephedra
Originally used for asthma
Similar to amphetamines
Side effects
Heart attacks
Anxiety
Vomiting
Difficult urination
Manic episodes
Insomnia
Seizures
Racing heart
Kidney failure/stones
Severe headache
Death
Facts
Voluntary reports of adverse reactions
180 deaths linked to herbs and supplements
over the past few years
Herbal supplements not regulated by the
FDA
FDA will wait until it receives reports of
problems caused by supplements before it
can investigate and ban a dietary
supplement
Ephedra Supplement Lawsuits
Misleading / deceptive advertising
Did not mention health risks (Xenedrine)
Increased blood pressure
Irritability of the heart
Heart conditions and death
Cytodine Technologies contends:
17 times faster
Strength, energy, and endurance
Baltimore Orioles pitcher Steve Bechler
-Died February 17 at age 23
-Collapsed at spring training
Ehedra banned by NFL, NCAA, and IOC
Baseball commissioner advising against
use of products containing Ephedra
Want company to include health risk
information in supplement ads
Warning labels: heart attack and strokes
Warning regarding warm weather
U.S. Food and Drug Administration
100 deaths linked to supplement
Full ban
The standard that companies can't market
dietary supplements "that pose a significant or
unreasonable risk of illness or injury" still stands
The company has no immediate plans to begin
selling the supplement again
Cytodyne Technologies stated:
It's not a coincidence that at this time the prosecutors have
decided to file these allegations, given the current
sensationalized climate surrounding ephedra."
Takeaway
As retailers move more into branding their
own products, risk from product failure, from
potentially false claims, and from consumer
safety issues needs to be considered.
Damage from one product issue no longer
just affects one product, but may affect the
retailer’s other store brands and the retailer
itself (consumer backlash)
Works Cited
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http://www.affordablesupplements.com/xenadrine_rfa_1.jpg
http://www.consumerreports.org/cro/health-fitness/drugs-supplements/dangeroussupplements-504/overview/index.htm
http://image1.mapmuse.com/images/all/logo_WEIGHT_WATCHERS.gif
http://chppm-www.apgea.army.mil/dhpw/wellness/dietary/Factsheets/Ephedra.pdf
http://www.thesportjournal.org/sportsupplement/Volume%2011,%20No%202/ephedra.htm
http://www.testosteron.ru/foto/big_872h.gif
http://www.natrol.com/image_display.php?path=1287335865_1022-LLB-SDT-All-Nat12ct.jpg
http://www.out-law.com/page-3018
http://www.trimspa.com/annahome/Annahorsehomepage.jpg
http://www.lawyerseek.com/Practice/Consumer-Protection-C21/Diet-Pills-P139/
http://www.foodanddiet.com/NewFiles/dietpills.html
http://www.ahealthyme.com/topic/herbreport
http://www.news.com.au/common/imagedata/0,,5358713,00.jpg
http://3quarksdaily.blogs.com/3quarksdaily/images/fat20cat_2.jpg
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http://www.yourlawyer.com/articles/read/4946
http://www.usatoday.com/news/health/2005-04-14-ephedra-case_x.htm
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