AdvoCare to Pay $150 Million to Settle FTC Pyramid Charges
Health and wellness products MLM allegedly rewarded recruitment over product sales.
Some came from pitchmen themselves, others from those talking about advertising. Either way, these are the quotes that got TINA.org’s attention in 2013.
Can you guess who said them? Or why? (Answers immediately follow quotes.)
Jonathan Baskin
Speaking at the NAD conference in New York City, author and marketing consultant Jonathan Baskin emphasized the importance of the truth -- and how modern advertising often lacks it.
The Biblical Money Code
We pulled that quote from an ad for “The Biblical Money Code.” Also known as “Money Code 411,” this NewsMax product (surprise!) doesn’t really have a secret Bible codex telling you what stocks to invest in. Instead, Sean Hyman, the pastor pitching this code, is really pitching his financial advice newsletter “The Ultimate Wealth Report,” which you can subscribe to for $47 a year. We’re not sure that’s the same thing as a hidden code in the Bible.
Thomas Kirsch, Lawyer for Repeat Bad-Ad Man Kevin Trudeau
Kevin Trudeau, who was banned by a 2004 FTC consent degree from misrepresenting the contents of his book in informercials, was put in jail last year for criminal contempt after … misrepresenting the contents of his book in more informercials. Trudeau’s lawyer Thomas Kirsch argued that the case was more a difference of opinion than anything else — advertising is just an opinion, and (misleading) opinions are protected as free speech? — but to no avail. Trudeau, who is in double jail after being ordered to prison in two cases, will be sentenced in February.
eMug
Yes, those are actual advertising claims for the eMug. Weirdest product we saw in 2013.
Coors Light
That was the claim made by MillerCoors for Coors Light and its new cans in TV spots last year. In the dumbest advertising spat of the year, rival Anheuser-Busch challenged MillerCoors claims about can science and that the can “Locks in Frost Brewed Taste” with NAD, but MillerCoors refused to participate, calling the challenge “frivolous.” Per its procedures, NAD forwarded the complaints to the FTC for further review.
Vemma CEO Benson K. Boreyko
Faced with criticism that his company is a pyramid scheme targeting young adults, CEO Benson K. Boreyko shot back at critics while being interviewed by TINA.org and called college a pyramid scheme. Yet, a few months later, his company started offering distributors the chance to earn $9,800 in cash to put toward college tuition. But hold on college students. Vemma’s own income distribution statement notes that 92 percent of active distributors would have not qualified for that level of bonus in 2012.
The New York Times
In its article “The Selling of Attention Deficit Disorder,” The New York Times reported that prescription stimulants sales have quintupled since 2002, thanks in part to misleading advertising on the part of drug companies.
Lawyer for vitaminwater
Our favorite quote of the year. Yup, that’s what a lawyer from vitaminwater argued in response to a class-action suit accusing Coca-Cola of making misleading health claims about vitaminwater. The beverage, which again is called VITAMINWATER, contains 33 grams of sugar and is not particularly healthy. But don’t let that name fool you!You Might Be Interested In
Bagging Claims by Unofficial Oscar Swag Companies
Cue the play-off music.
Vemma Reaches $238 Million Settlement with FTC
Company agrees to a ban on pyramid scheme practices to settle charges.