FTC v. Pantron I Corp., 33 F.3d 1088 (1994)

FTC v. Pantron I Corp.

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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

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Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, Federal Circuit | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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