
For
immediate release -- Tuesday, June 30, 1998.
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Connecticut
Mail-Order Health and Beauty Company Penalized
for Misleading Ads and Marketing in Iowa
Attorney
General Tom Miller says company targeted older citizens and tried to skirt
court orders to stay out of Iowa.
DES MOINES--
A Connecticut mail order business specializing in questionable health and
beauty aids is paying a $17,500 penalty and making refunds to 91 Iowans
-- mostly older persons who answered ads for products such as pills touted
to help people with arthritis pain or bladder problems.
"This posed a special
threat to older Iowans who might be desperate to find remedies for health
problems," said Attorney General Tom Miller.
Miller said that
Willows General Store, Inc., of Westport, CT, and its president and owner,
Martin Howard of Fairfield, CT, are required to make the payments and
to conspicuously note in their tabloid and direct mail ads that their
products are "NOT AVAILABLE IN IOWA."
The requirements
are contained in a Consent Judgment filed today in Polk County District
Court in Des Moines. The defendants also are subject to much higher automatic
penalties if they violate the order in the future.
"Willows General
Store has been a full-service health fraud outlet for too many Iowans
for too long," said Attorney General Tom Miller. "Willows has repeatedly
used misleading advertisements in tabloids to exaggerate the effectiveness
of their health and beauty products, at least some of which we believe
to be totally worthless."
Miller said that
his office originally sued Willows and Howard in May of 1996 in connection
with fraudulent ads directed at Iowans. At the time, Miller said, Willows
sold a wide range of products, including pills and potions to remedy problems
related to the bladder, the prostate, baldness, memory loss, obesity,
and impotence. The Attorney General alleged that none of these products
performed as claimed, and that some of them were total frauds.
"We caught them
at it back in 1996 and obtained an injunction to keep them from defrauding
Iowans," Miller said. "But they came up with a ruse to continue reaching
into Iowan's pockets through misleading ads, and we had to take them back
to court for violating the injunction."
Miller said a simple
investigative action by his office's Consumer Protection Division determined
that Willows was violating the earlier court order.
A Consumer Protection
investigator replied to a national tabloid ad and inquired about ordering
"Crash Loss and High Burn" diet tablets. "In the first place, the ad should
have said NOT AVAILABLE IN IOWA, but it didn't," Miller said. "Second,
Willows replied in a letter that our investigator could obtain the product
by naming a person in another state who could receive the order for her
from Willows. That clearly defied the judge's earlier order banning fraudulent
sales in Iowa, and that's why we jumped on this again."
According to Miller,
such a subterfuge will be more difficult and riskier now that the injunction
has been strengthened, and any further violations will give rise to an
automatic penalty of $25,000.
With the order,
Willows no longer can market its health and beauty products to Iowans.
Officials in Miller's office said they understand the company also is
prohibited from marketing to citizens of its home state, Connecticut.
The defendants denied
any wrongdoing, but agreed to the penalty, the stronger injunctive language,
and the refunds. Most consumers will receive refund checks of either $19.95
or $24.95, for total refunds of $1,870.45. If consumers spent more they
will be entitled to a larger refund.
"Willows was involved
in cheating vulnerable Iowans by using dramatic but insupportable claims
to sell supposed health remedies to the afflicted, and other blatantly
fraudulent gimmicks," Miller said. "These are cynical efforts to prey
on the desperate and the unwary."
Miller said that
consumers have to be constantly on their guard against health fraud, since
deception in this area is all too common. He warned consumers to watch
out for miracle cures, dramatic testimonials, and exaggerated claims that
are clearly "too good to be true."
Miller also advised
consumers to consult with responsible health professionals before investing
in an unfamiliar medical product or service, or embarking on an unusual
course of treatment.
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