ERSP Recommends Obesity Research Institute Modify, Discontinue Certain Claims for Lipozene

The Electronic Retailing Self-Regulation Program (ERSP) has recommended that Obesity Research Institute, LLC, modify or discontinue certain advertising claims for Lipozene, a weight loss supplement.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to the attention of ERSP through its ongoing monitoring program.

In response to ERSP’s initial inquiry, the marketer informed ERSP that the Federal Trade Commission (FTC) in 2005 had issued a stipulated final judgment regarding another product marketed by ORI. That order applies to Lipozene as a “substantially similar product.” The marketer provided written documentation that the FTC has reviewed certain claims and substantiating documentation in its 2006 compliance monitoring of Obesity Research Institute and Lipozene.

ERSP closed its review of claims covered by the 2005 order, but continued its review of certain performance claims and testimonials, including:

• "Lipozene has effectively helped millions of people meet their weight loss goals."
• "With over 20 million bottles sold, Lipozene is America's #1 selling diet supplement."
• "There are no known side effects when taken as directed."
• "Best of all Lipozene is all-natural and does not contain caffeine or other stimulants that can leave you feeling jittery."
• “I have been taking this product for about 3 months and have lost almost 2 pant sizes. I take it 30 minutes before I eat and move all throughout the day. I absolutely love this product. It is by far this best product out there for a mother of 7 who doesn’t have time to go the gym.”

Following its review of the evidence in the case record, ERSP determined that ORI provided a reasonable basis for the claims “20 million bottles sold” and “millions of people meet their weight loss goals.”

ERSP did not object to the marketer‘s claim that Lipozene is “…all-natural and does not contain caffeine or other stimulants that can leave you feeling jittery,” but recommended the marketer discontinue or modify the claim that Lipozene has “no known side effects when taken as directed."

ERSP found that the marketer’s current disclosures, as they appear in online advertising, were inadequate and recommended that ORI include an accompanying triggering symbol to alert website visitors that the claims do not depict results that may be typically expected by consumers.

ERSP also recommended that ORI modify or discontinue consumer testimonials.

The company, in its marketer’s statement, said it “welcomes and appreciates ERSP’s thorough and thoughtful review of advertising for its weight loss product, Lipozene … Obesity Research Institute does not necessarily agree with all of ERSP’s analysis and conclusions … it nevertheless certainly respects ERSP’s conclusions and recommendations and will modify these claims in its future advertising.”

ERSP Recommends Real Freedom, Inc. Modify, Discontinue Certain Claims for Real Estate Mogul; Company Agrees to Do So

The Electronic Retailing Self-Regulation Program (ERSP) has recommended that Real Freedom, Inc., modify or discontinue certain claims for the Real Estate Mogul real estate investing education program, including claims related to earnings.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus, Inc. The marketer’s advertising came to the attention of ERSP through an its ongoing monitoring program.

ERSP reviewed online advertising claims for the real estate investing program, including:

• “You’ll gain exposure to thousands of potential buyers, sellers, lenders, and partners INSTANTLY.”
• “It can be full-time or very part-time”
• “You’re already pre-qualified”
• “Hey, this closes in about 2 hours…get in there and get going! Freedom awaits!”
• “Need money fast? Yeah…you do”
• “You’ll make anywhere from $2,250 to $10,500 for each successful match.”

The advertising reviewed consists of the marketer’s website (www.realestatemogul.com) and email marketing for Real Estate Matchmaker.

ERSP noted in its decision that the marketer voluntarily addressed certain of the specific claims at issue, including claims that users of the program can earn money quickly or easily. ERSP also acknowledged the marketer’s pledge to discontinue or modify claims that attest to ease of use, pre-qualification, and selective enrollment.

While ERSP did not object to the marketer’s general performance claims regarding descriptions of the product or service, ERSP recommended that the marketer discontinue its sales-pressure claims and refrain from communicating sales-pressure claims in future advertising. Finally, ERSP determined that the earnings claims at issue were not adequately substantiated in their advertised context and it was recommended that these advertised earning claims be discontinued.

The company, in its marketer’s statement, said that it “agrees to abide by the recommendations of ERSP and will continue to make our best effort to bring all of our marketing into compliance in a timely fashion.

Again, our ERSP review has been incredibly valuable, and we’re committed to running a business that’s entirely compliant with existing FTC regulations, as well as staying abreast of any future developments in those regulations.”

ERSP Reviews Advertising for ‘Jidue,’ Recommends Marketer Modify or Discontinue Certain Claims

The Electronic Retailing Self-Regulation Program (ERSP) has recommended that Audy Global modify or discontinue claims for “Jidue,” a facial massager intended to help reduce eye puffiness, facial tension, and wrinkles.

ERSP is an investigative unit of the advertising industry’s system of self-regulation and is administered by the Council of Better Business Bureaus. The marketer’s advertising came to the attention of ERSP pursuant to its ongoing monitoring program.

ERSP reviewed broadcast and online advertising claims for Jidue, including:

• “Reduces puffiness and dark circles”
• “Improves blood circulation”
• “Alleviates eye fatigue”
• “Relieves muscle tension and stress”
• “Relieves sinus pain”
• “Helps you sleep through the night”
• “Reduces wrinkle development”
• “CLINICALLY PROVEN to help relieve eye puffiness, facial tension and stress.”
• "It's clinically proven to reduce the development of wrinkles while helping to eliminate puffy eyes and unsightly bags starting in just a few days."

As support for the performance and establishment claims at issue, the marketer submitted testing on Jidue. This study included subjects who self-reported the results of using Jidue over a thirty-day period.

Following its review of the evidence in the case record, ERSP did not object to the general description of Jidue, i.e., “Jidue's patented 18 acupulse massagers stimulate your acupressure points that date back over 1000 years, including qingming for eye fatigue and pain, qiuhou that focuses on dry eye and inflammation, and zanshou and yuyao for stress headaches," or that the product can provide a relaxing massage.

However, ERSP determined that the marketer did not provide adequate support for claims that included: 

• “clinically proven” results
• "Helps you sleep through the night”
• “Reduce wrinkle development”
• “Reduces puffiness and dark circles”

ERSP recommended the marketer modify or discontinue the claims in the context in which they were communicated.

The company, in its marketer’s statement, said, “Audy Global Enterprises is conducting further tests consistent with the ASRC standards and will be bringing all future advertising into compliance with their standards. Audy Global will rewrite and update existing claims compliant with the existing self-reported trials performed on the Jidue Facial massager.”