Challenging what read like egregious examples from its recently updated Endorsement Guides, the Federal Trade Commission took action under the FTC Act and the Opioid Addiction Recovery Fraud Prevention Act of 2018 (“OARFPA”) against Rejuvica, maker of the supplement Sobrenix, and its owners for making false and unsubstantiated claims about the product and using fake endorsements and bogus review sites to deceive consumers.

According to the complaint, the defendants marketed Sobrenix (through their own website and others) to consumers struggling with alcohol addiction, with messaging such as: “STRUGGLING TO CONTROL YOUR ALCOHOL CONSUMPTION? Sobrenix is designed to reduce alcohol cravings and help you detoxify your body so you can successfully manage alcohol consumption.  Even better, taken before drinking, Sobrenix’s ingredients help you stop before you’ve had too much.”  However, the FTC alleges that the defendants lacked adequate evidence to support these claims and made other false claims, including that Sobrenix was proven to reduce alcohol cravings and consumption.

On the endorsement front, Rejuvica allegedly touted recognition of its product by health experts but failed to disclose that these endorsements—often presented in the company’s marketing materials as “news” coverage—were actually paid advertisements.  Additionally, according to the FTC, Rejuvica created fake review websites that appeared to offer independent reviews of Sobrenix; however, the reviews were actually written by Rejuvica employees under fake names or titles.

“We will not tire in our pursuit of those who prey on individuals struggling with alcohol or other substance use disorders,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.  “This case evidences the breadth of the FTC’s authority to pursue such wrongdoing under both the FTC Act and OARFPA.”

Under the terms of a proposed court order, among other things, the defendants are banned from (i) making claims about any food, drug or dietary supplement’s ability to cure or treat any disease unless such claims are substantiated by competent and reliable scientific evidence, including randomized clinical trials; (ii) falsely portraying paid advertisements as legitimate news coverage; and (iii) failing to disclose paid endorsements.  The total monetary judgment of $3,247,737 is partially suspended based on the defendants’ inability to pay, though they must pay $650,000 to the FTC to be used for consumer refunds.  The defendants ceased selling the product in 2021 after the FTC notified the company it was investigating its advertising claims.