[co-author: Yehuda Hausman]
America's respect for entrepreneurship and free enterprise is reflected in capitalism's deep influence on our health care system. In contrast to many other industrialized countries with state-run health systems, the U.S. health care system is driven by a complex combination of factors: Economic considerations For providers, insurance companies, and pharmaceutical companies. The competitiveness of this system not only shapes healthcare delivery but also has a major impact on the marketing and distribution of medical products.
Notably, the United States is the only country among other countries that allows direct-to-consumer drug advertising. This advertising is highly regulated in the European Union and other Western countries. Proponents argue that sound regulation is needed to foster innovation, as evidenced by the development of telemedicine, private addiction treatment centers, direct-to-consumer genetic testing, and the expanding market for nutritional supplements. He argues that the degree of freedom is extremely important. However, advertising for healthcare products and services comes with significant risks. The wrong medical choices can have devastating and irreversible consequences, and people with cognitive impairment or serious health conditions are at risk from the persuasive power of exaggerated claims and aggressive marketing tactics. Especially vulnerable. As the immediate danger of the pandemic fades, U.S. federal regulators are shifting from a deregulatory stance to Enhanced monitoring. This shift is reflected in a series of Federal Trade Commission (FTC) investigations and settlements aimed at curbing deceptive practices in the healthcare industry.
Too much swelling is unhealthy
Historically, U.S. courts have permitted “exaggerated” exaggerations in advertising, which have been characterized as subjective claims that are unlikely to deceive a reasonable consumer. But the FTC is beginning to apply a different standard to medical care. In March 2023, the FTC settled the lawsuit Lawsuit against Dr. Dalal A. Akhoury and her company AWAREmed for misleading advertising in the treatment of addiction, cancer, and neurodegenerative diseases. Given the vulnerabilities of the targeted groups, claims that the FTC has determined to be misleading include:
- “The most effective clinic anywhere”
- “Almost anything can be treated with a 98% improvement rate.”
- “Experience quick and painless detox and recovery from any addiction.”
- “Get ready-to-use functionality in just 3 days”
In response to these deceptive claims, the FTC uses the general statute against deceptive marketing (15 USC § 52) and the Opioid Addiction Recovery Fraud Prevention Act of 2018, which specifically addresses substance abuse treatment claims (opioid law). The imposition of the $100,000 fine, although modest, signaled the FTC's shift in priority to protecting vulnerable patients.
Dietary supplements for drug abuse?
In mid-2023, the Federal Trade Commission Enforcement measures For marketing company Rejuvika sobrenics, a liquid nutritional supplement claimed to help alcoholism. Sobrenix was touted to reduce alcohol cravings and help the body detoxify, claiming that “when taken before drinking, the ingredients in Sobrenix will help you quit alcohol before you drink too much.”
The FTC's action required Rejuvika to refund $650,000 to consumers, an important step given the generally loose regulation of the dietary supplement industry. Companies in this field, which often promote new treatments, reduce risk with standard disclaimers such as: “The FDA has not evaluated the statements or claims made about this product. This product is not intended to diagnose, treat, cure, or prevent any disease.” It suggested that the same leniency would not apply to promotions of drug abuse products as it does to claims related to other treatments in the supplement field.
Clickwrap disclaimer and hidden consent
In April 2024, the FTC $Settlement amount: 7 million Cerebral, a behavioral telemedicine provider, highlighted a serious violation of consumer trust through deceptive marketing and serious privacy violations. Cerebral, an online mental health service provider, used opaque “clickwrap” contracts to obscure key terms. Consumers, often unknowingly, consent to share their personally identifiable information (PMI) with third-party platforms such as LinkedIn, Snapchat, and TikTok. This action not only violated confidentiality promises, but also exposed sensitive health data under the guise of dense and complex legal jargon.
The FTC also settled similar charges. monument, another telemedicine service specializing in the treatment of alcoholism. The company touted “100% confidentiality” while hiding the reality of personal data sharing deep within the company. Huge privacy policy.
In both recent cases, the FTC relied on the following information: Opioid Addiction Recovery Fraud Prevention Act of 2018 (OARFPA) – Part of the federal omnibus 2018 aid bill that has received little attention compared to other parts of the bill. The FTC's enforcement of OARFPA sends a clear message that it will not tolerate health care providers who misuse and disclose sensitive data for promotional purposes. Stay tuned for further FTC enforcement actions aimed at protecting vulnerable consumers from deceptive healthcare marketing practices.
