Why? Keep reading.
When You Disregard FTC Orders and Edicts, Expect Legal Trouble
The FTC says the “easy weight loss” infomercial kingpin lied to their faces and willfully disobeyed a 10-year-old commission consent order that demanded Trudeau refrain from making “misleading” advertisements. So, the FTC slapped him with criminal contempt charges.
Don’t Exaggerate In Your Marketing Materials
Meet Kevin Trudeau: Weight Loss Infomercial King, Extraordinaire!
If you find yourself awake in the wee hours of the night, you’re probably familiar with Kevin Trudeau, a veteran on the infomercial circuit. For years, he peddled his *miracle* weight loss system called, “The Weight Loss Cure ‘They’ Don’t Want You to Know About”. In infomercials, Trudeau waxed poetic about his diet plan that allowed for steak, potatoes, and hot fudge sundaes. It sold like fireworks on July 4th. Unfortunately, Trudeau sold a lot of hot air, and the FTC caught up with him.
Assistant U.S. Attorney Marc Krickbaum put it bluntly:
“[Trudeau] chose to make his book sound way better than it was to sell more books and make more money.”
You see, the problem with Trudeau’s book is that it doesn’t deliver on what he promised. Instead it advocates expensive solutions like prescription hormone injections and month-long, spa-like therapies. Oh, and according to the book, his method won’t work unless dieters stick to a 500-calorie-a-day diet! (For the record, eating only 500 calories a day is bad for your health.)
Marketer’s Failed Defense: “TPTB Are After Me Because I’m An Outspoken Critic.”
In his defense, Trudeau’s attorneys argued that their client was an outspoken natural cures advocate who regularly railed against government and big pharma. The lawyers hoped to frame Trudeau as a persecuted truth teller, mercilessly harassed by the evil powers that be.
Jury Votes Guilty For Consumer Fraud In A Flash
But alas, the marketing gods were not on Trudeau’s side. Less than an hour after deliberations began, the jury came back with a guilty verdict. Not only that, but Trudeau was taken into custody immediately – a rarity for these types of white collar crimes.
In Addition To Jail, Marketer Also Slapped With $37 Million Fine. Ouch.
In a related civil case, a court fined Trudeau a cool $37 million for violating his FTC order. The pitchman insists he doesn’t have the money; federal officials are convinced he’s got several, shall we say, “healthy” offshore accounts.
Make Sure Your Marketing Materials Don’t Cross The Consumer Fraud Line, Twice
Well, friends, let the case of Kevin Trudeau serve as a warning. The FTC may have a reputation for being wishy-washy, but think of the department as a voracious vampire that thrives on second-offense blood. If the commission slaps you on the wrist once, don’t do it again!
Consumer Fraud Lawyer With FTC Defense Experience
If you do find yourself in trouble with the Federal Trade Commission for the first, second, or third time, get in touch with Kelly Warner Law. We have a wealth of experience defending startups and online marketers against FTC charges.