Direct Marketing Concepts, Inc., broadcast an infomercial for Coral Calcium that featured a spokesperson named Robert Barefoot.

Question:

Direct Marketing Concepts, Inc., broadcast an infomercial for Coral Calcium that featured a spokesperson named Robert Barefoot. In the ad, his claims were as bare as his feet. He asserted that virtually all diseases -- heart disease, cancer, lupus, multiple sclerosis, Parkinson’s -- are caused by a condition called acidosis. And that calcium derived from Okinawan coral cures these diseases by rendering the body more alkaline: “I’ve had 1,000 people tell me how they’ve cured their cancer. I’ve witnessed people get out of wheelchairs with multiple sclerosis just by getting on the coral.”

To bolster his claims, Barefoot noted that unspecified articles from the Journal of the American Medical Association and the New England Journal of Medicine “said that calcium supplements reverse cancer . . . that’s a quote.” During an 18-month period, this infomercial generated $54 million in sales. 

The FTC filed suit against the company and its owners, alleging that the infomercials were deceptive. The trial court granted the FTC’s motion for summary judgment, ruling that the infomercials were misleading as a matter of law and, therefore, there was no need for a trial. The defendants appealed. 


Questions:

1. Were these infomercials misleading as a matter of law?

2. Did the court find that the FTC met the two requirements that the defendant lacked a reasonable basis for its claims?

3. What was an argument that the defendants asserted?

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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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