
FTC Files for Injunction as IML Shuts Down
Agency worries MLM defendants are dissipating assets.
In January 2014, a federal judge dismissed a class-action lawsuit filed against NaturalCare, Inc. for allegedly misleadingly marketing RingStop, a line of products containing homeopathic ingredients. The complaint, which was originally filed in 2012, alleges that the company represents RingStop is “proven” to treat symptoms of ailments, such as tinnitus by reducing the ringing and buzzing sounds in the ears, without scientific evidence to support such claims. The judge dismissed the lawsuit because the named plaintiff lacked standing (i.e., a proper basis to sue) due to a technical error (she apparently failed to list this lawsuit on her bankruptcy petition, thus shifting her interest in the case to the bankruptcy estate). The judge dismissed the lawsuit with prejudice, meaning that the plaintiffs cannot re-file. (Neal et al v. NaturalCare, Inc. and Does 1-25, Case No. 12-cv-00531, C. D. CA.).
For more information about the advertising of homeopathic products and TINA.org’s coverage of the issue, click here.
Agency worries MLM defendants are dissipating assets.
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