New York Paralegal Blog

At the Federal Trade Commission’s request, the U.S. Department of Justice has asked a federal district court to impose civil penalties upon the herbal products company Daniel Chapter One (DCO) and its principal, James Feijo, for allegedly violating an FTC Order. The civil penalty action also seeks a preliminary injunction to stop DCO and Feijo from continuing to make deceptive claims on the company’s daily radio show and website about the supposed cancer-fighting properties of its supplements, and to require DCO and Feijo to send a notice to purchasers explaining the FTC’s findings that the advertisements were unsubstantiated, as required by the FTC Order. The complaint against DCO and Feijo stems from a lawsuit that began in September 2008 as part of Operation False Cures, a law enforcement sweep aimed at peddlers of phony cancer remedies.

Deceptive Claims Must Stop, Consumers Must be Notified The Federal Trade Commission today upheld charges against Daniel Chapter One, an herbal products company, and its officer for making deceptive claims that shark cartilage and certain other herbal formulations prevent, treat, and cure cancer, and lessen the effects of chemotherapy and radiation. The Commission’s opinion and order prohibit Daniel Chapter One and James Feijo from advertising that the four dietary supplements at issue – BioShark, 7 Herb Formula, GDU, and BioMixx – inhibit tumor formation or growth; eliminate tumors; treat or cure cancer; or heal the effects of radiation or chemotherapy unless the claims are true, non-misleading, and based on scientific evidence. In addition, Daniel Chapter One and Feijo are prohibited from making health claims about any dietary supplement, food, drug, or other health-related product or service unless the claims are substantiated by scientific evidence.

An Administrative Law Judge has dismissed a Federal Trade Commission administrative complaint alleging that the respondents were responsible for the deceptive advertising of an herbal remedy that was falsely advertised as a cure for cancer. Although Chief Administrative Law Judge D. Michael Chappell did not evaluate the allegation in the complaint that deceptive and false claims were made about the herbal remedy RAAX11, he wrote that complaint counsel had failed to prove those claims were made by the respondents named in the complaint – the company Gemtronics, Inc., or its officer, William H. Isely. Specifically, Judge Chappell found that complaint counsel had failed to prove that Gemtronics or Isely had a role in creating or circulating the Internet advertisements for RAAX11that were alleged to be deceptive.

An Administrative Law Judge has upheld Federal Trade Commission staff charges against a company and its officer for making deceptive claims that shark cartilage and herbal formulations prevent, treat, and cure cancer, and heal the effects of chemotherapy and radiation. After an administrative trial, the judge ordered the marketers to stop making false and unsubstantiated claims. “[The] respondents did not possess or rely upon competent and reliable scientific evidence to substantiate their claims,” Chief Administrative Law Judge D. Michael Chappell wrote in his decision. In September 2008, the FTC staff charged the company, Daniel Chapter One, and its officer James Feijo with deceptive advertising. Their operation was one of 11 challenged in Operation False Cures, a law enforcement sweep aimed at peddlers of phony cancer remedies. In his decision, Judge Chappell ordered Daniel Chapter One and Feijo not to advertise that their supplements inhibit tumor formation or growth; elimina...