The Ninth Circuit held that a seller is liable for misrepresentation of its product's effectiveness if it can only be attributed to the placebo effect using acceptable standards of scientific research. Pantron claimed that it's product reduced hair loss, and cited two European studies to confirm its claim. The FTC claimed that the studies were not held to acceptable scientific research standards, and cited multiple US based studies that held to the contrary using double blind and placebo controlled process that was published in peer reviewed journals.

Full case and summary also available at: http://www.mlmlegal.com/legal-cases/FTC_v_PantronICorp.php