FOR
RELEASE: JULY
29, 1997
CLAIMS
THAT HERBAL ECSTACY IS ABSOLUTELY SAFE AND WILL NOT CAUSE
SIDE EFFECTS ARE FALSE, FTC SAYS
Settlement
Would Require Safety Warning in Future Ads
Claims that Herbal Ecstacy, a supplement product that
has been widely promoted as a natural herbal
"high," is absolutely safe and will cause no
side effects are false, the Federal Trade Commission said
in accepting a settlement with a California company and
its owner. The FTC charged that the company's marketing
of Ecstacy, which included ads in media with large youth
audiences, made explicit and unqualified false claims
about safety, and did not disclose the health and safety
risks of using the product. The company, Global World
Media Corp. and Sean Shayan, the company's owner, have
agreed that all future safety claims for any food, drug,
or dietary supplement must be truthful, and that their
advertising and labeling of Ecstacy will warn consumers
about the potentially serious safety risks of taking the
product. They have also agreed to refrain from promoting
Ecstacy or any similar product for its mind-altering
effects in media with a predominant youth audience.
"This case involves deceptive advertising that
raises serious safety concerns," said Jodie
Bernstein, Director of the FTC's Bureau of Consumer
Protection. "Despite evidence of those health risks
and at least one death of a college student in Florida,
which was directly attributed to taking a large dose of a
product similar to Ecstacy, the company continued to
promote this product as a safe and natural high and have
encouraged the young people who buy Ecstacy to take
exceedingly high doses." Bernstein added, "This
kind of conduct and abuse of consumers' interest in
botanical products also does a disservice to members of
the dietary supplements industry who are acting
responsibly to promote the legitimate benefits of their
products."
According to the FTC, Herbal Ecstacy's principal
ingredient is the herb ephedra, also known as Ma-Huang, a
botanical source of ephedrine alkaloids which can have
dangerous effects on the nervous system and heart. The
U.S. Food and Drug Administration has compiled hundreds
of reports of injury associated with supplements
containing ephedrine alkaloids, a number of these
complaints have involved Ecstacy. FDA has published a
proposed rule that would impose strict limits on serving
size and would require warnings in labeling for all
ephedra supplements. Various states also have barred or
restricted the marketing of products like Ecstacy.
Ecstacy advertising advised consumers to take as many
as five Ecstacy tablets at a time, nearly eight times the
amount of ephedra allowed in the FDA proposed rulemaking,
the FTC said. Consumers who called the company's
toll-free number were told to take even higher doses if
they didn't achieve the advertised mind-altering effects.
Advertising included television and radio spots, Internet
advertising, and magazine ads, as well as brochures,
catalogues, and point-of-sale displays. Advertising
appeared on certain local cable systems on Nickelodeon
and MTV which have substantial youth audiences,
the FTC said.
The FTC's complaint charges that Global World and
Shayan advertised that "herbal ecstacy is 100%
natural & absolutely safe." In truth, use of
Ecstacy in the doses recommended or in other forseeable
amounts is not absolutely safe and may cause side
effects, the FTC alleged. Therefore, the representations
made by the company are false or misleading and
unsubstantiated, the complaint states. The FTC also
charged that the company included in its ads an
endorsement pertaining to the safety and lack of side
effects of Ectascy made by Dr. Steven Jonson of Tel Aviv,
Israel who, in fact, is a fictitious person.
The proposed consent agreement to settle these
allegations, announced today for public comment, would
prohibit Global World and Shayan from claiming that
Ecstacy or any other food, drug, or dietary supplement is
safe or will cause no side effects unless the claim is
true and substantiated by scientific evidence. They also
would be prohibited from making any representation that
any product containing ephedrine alkaloids can be
consumed in an amount that exceeds any level to be
established by the FDA.
In addition, Global World and Shayan would be required
to make the following warning in all future advertising
and labeling of any ephedrine-alkaloid-containing
product: WARNING: This product contains ephedrine
which can have dangerous effects on the central nervous
system and heart and could result in serious injury. Risk
of injury increases with dose. Should the FDA
require a different warning on labeling in the future, it
would be substituted for the above language.
The agreement would prohibit misrepresentations of
testimonials or endorsements of any product. It also
would require Global World and Shayan to refrain from
marketing Ecstacy or any other ephedrine product as an
alternative to an illegal drug or for its euphoric,
psychotropic or sexual effects (including through the
name "Ecstacy") in material directed to
consumers under the age of 21.
Finally, the agreement includes, among other
requirements, provisions requiring Global World and
Shayan to notify their employees and distributors about
the order requirements and terminate those who fail to
comply.
The Commission vote to accept the proposed consent
agreement for public comment was 5-0.
An analysis of the proposed consent agreement will be
published in the Federal Register shortly. The agreement
will be subject to public comment for 60 days, after
which the Commission will decide whether to make it
final. Comments should be addressed to the FTC, Office of
the Secretary, 6th Street and Pennsylvania Avenue, N.W.,
Washington, D.C. 20580.
NOTE: A consent agreement is for
settlement purposes only and does not constitute an
admission of a law violation. When the Commission issues
a consent order on a final basis, it carries the force of
law with respect to future actions. Each violation of
such an order may result in a civil penalty of $11,000.
Main Page | About Grimes & Reese | Practice Areas | MLM Law Clients | MLM Articles
MLM Law Library | What Our Clients Say | What's New | Search MLM Law | MLM Law Blog | Site Map