Court Unties Gag On Dissatisfied Weight-Loss Consumers
Roca weight-loss companies can't punish or sue negative online reviewers
Rocaweary
Back in June, we reported on weight-loss supplement marketers Roca Labs Inc. and Roca Labs Nutraceutical USA Inc.'s legal troubles with the Federal Trade Commission (FTC).
The FTC first pursued charges in 2015 in the Middle District of Florida, claiming that advertising for Roca's "Formula" weight-loss powders and gels made a number of deceptive claims, including weight-loss results of up to 100 pounds over 7 ‒ 10 months, unbelievably high success rates, and favorable comparisons between the products and bariatric surgery.
Gag Reflex
But what really caught our eye back then were the allegations regarding Roca's alleged use of gag clauses ‒ nondisparagement provisions contained in the product purchase agreements that threatened legal action against dissatisfied customers who complained about the product in public.
One version of the gag clause allegedly gave negative reviewers "seventy-two (72) hours to retract the content in question." Should the content remain, "RL would be obliged to seek all legal remedies to protect its name, products, current customers, and future customers." The FTC claimed that another version of the gag order defined "any report of any kind on the web" as "defamation/slander," which would invoke compensation of $100,000.
The commission maintained that these provisions were illegal and deprived "prospective purchasers of ... truthful, negative information," which led to more profit than Roca would have otherwise earned.
The Takeaway
In a big win for the FTC, the Middle District granted its amended motion for summary judgment in its entirety.
The commission found that Roca's weight-loss claims were deceptive and...
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