U.S. Court of Appeals Upholds $48 Million Judgment
A judgment upholding the trial court's order of $48 million.
- A judgment upholding the trial court's order of $48 million.
- The First Circuits opinion is a must-read for marketers of health-related products.
- It reaffirms key principles about the FTCs requirement that advertisers substantiate the claims consumers take from their ads.
- The reasonable basis test is the appropriate standard for deceptive advertising claims.
- The Court concluded that "it is clear that none of this material comes close to establishing an issue of fact regarding the Defendants woefully inadequate substantiation evidence."
- The Court dismissed that argument as at odds with established caselaw.
- The Defendants argued that their ads made no health claims and rather were mere puffery further qualified by disclaimers.