In Re Global World Media Corporation (1997), File No. 962-3210

Global World Media Corp. agreed to stop advertising certain aspects of its Herbal Ecstasy product to avoid facing a lawsuit by the Federal Trade Commission.

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Global World Media Corp agreed to stop advertising that their Herbal Ecstasy product is safe and is without side effects. The product contained ephedrine, a compound that the FDA had determined could be dangerous in certain doses. The Company further agreed to ad a warning label to the product, and to cease advertising in mediums that had an audience of primarily people under 21. Product distributors were required to read warnings to potential customers contacted by phone before any product information could be given, and warnings were required to appear on written promotional materials. The consent order was to last 20 years, with significant record keeping and reporting requirements.

The full case is also available online at: http://www.mlmlegal.com/legal-cases/InReGlobalWorldMediaCorporation1997.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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