FTC warns local company for making unproven coronavirus treatment claims

FILE — Joseph Simons, chairman of the Federal Trade Commission, in Washington on May 8, 2019. The agency’s handling of an antitrust investigation of Facebook stands in stark contrast to the antitrust investigation into Google by the Justice Department.  (Anna Moneymaker/The New York Times)

FILE — Joseph Simons, chairman of the Federal Trade Commission, in Washington on May 8, 2019. The agency’s handling of an antitrust investigation of Facebook stands in stark contrast to the antitrust investigation into Google by the Justice Department. (Anna Moneymaker/The New York Times)

In an attempt to combat bogus coronavirus treatments and cures, the Federal Trade Commission has sent more than 275 warning letters to mostly U.S. companies it says are advertising unproven and dubious health products and services, including a few businesses in southern Ohio.

The FTC this spring sent the owner of Jiva Med Spa, a company with offices in Beavercreek, a letter demanding it cease advertising products that it claimed helped treat the COVID-19 infection, including by reducing symptoms and the length of illness.

Other warning letters were sent to companies in Cincinnati and Columbus.

Since the start of the pandemic, some companies and individuals have advertised products, treatments and therapies with unsubstantiated claims and benefits in an apparent attempt to profit off the global health crisis.

The FTC has received about 140,000 consumer complaints related to COVID-19, including more than 3,500 from Ohio.

Crisis and desperation, like the current health emergency and economic troubles, create ripe conditions for scams and deceptive marketing, and officials say consumers should be wary of “miracle” products and services.

“There is nothing the FDA has determined prevents, treats or cures the coronavirus, so if you see an offer for a product that does that, just walk away,” said Christine DeLorme, an attorney with the FTC division of advertising practices.

The Federal Trade Commission offers these 5 tips for avoiding coronavirus scams. CONTRIBUTED

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Warnings go out

In mid-April, the FTC sent a warning letter to Dr. Rakesh Nanda, whose business, Jiva Med Spa, has offices listed on Indian Ripple Road in Beavercreek and Columbus.

The company, which did not immediately respond to an emailed request for comment, offers tattoo removal, skin-care treatments, plastic surgery, massages and supplements.

The letter says FTC staff reviewed his company’s social media accounts, including one specifically targeted for the Dayton region, that directed consumers to his company’s main web page.

Nanda’s social media posts in late March and early April claimed that supplements he sells could help people who display symptoms of COVID-19, according to the FTC’s letter.

His posts allegedly claimed that taking certain supplements would reduce the symptoms of infection and the “viral load time,” the letter states. He allegedly claimed one product was a potent form of olive oil.

The FTC wrote that it is illegal to advertise that products can prevent, treat or cure human disease if there is not scientific studies showing the claims are true.

The FTC ordered Nanda to stop making claims that were not backed up by credible scientific evidence.

The FTC also sent warnings to Columbus company Earthley Wellness and Cincinnati company Huber Personalized Medicine saying some of their advertisements made unsubstantiated or misleading claims or promoted unapproved treatments or products.

Other companies around the nation and globe were warned for claiming their products could treat or cure COVID-19, including IV injections of vitamins, essential oils, CBD products and oxygen therapies.

Too good to be true

Often during public scares, there is a proliferation of deceptive advertising peddling “miracle cures,” officials say.

While many so-called treatments may sound outright preposterous, some consumers may be willing to try almost anything to try to protect themselves and their families from illness and death, said Andrew Smith, the FTC’s consumer protection bureau director on Tuesday during testimony before a Senate subcommittee.

The FTC’s letters warn companies that if they do not immediately stop their unlawful conduct, they could face serious legal consequences, Smith said.

“Overwhelmingly, companies that have received FTC warning letters these past few months have taken quick steps to correct their problematic claims,” he testified.

The FTC sues some companies to force them to stop making bogus claims, but litigation takes time and resources, and warning letters have proven effective at getting people and companies to remove deceptive advertising quickly, DeLorme said.

The warning letters demand a response from the companies within 48 hours that spells out what actions they have taken to address the FTC’s concerns. Most marketers remove the problematic content within days, she said.

DeLorme said in her experience there are some companies and individuals who are “true believers” in the claims they make about their products and services. Others, she said, seem to know that what they are selling is illegitimate and does not work.

DeLorme said one concern is that people taking supplements or products that they think protect them from the coronavirus infection do not take other safety precautions, like wearing masks or socially distancing from others.

DeLoreme said the FTC pays close to attention to consumer complaints.

The agency has received about 2,270 fraud reports from Ohioans related to COVID-19.

Ohioans have reported losing about $1.8 million because of fraudulent and questionable activities.

Consumers have complained about fake health treatments, stimulus payment fraud, ID theft, robocalls, work-at-home scams, and problems with online shopping activities, refunds and cancellations.

Consumers can submit COVID-19 complaints at www.ftccomplaintassistant.gov.

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