24/7 Wall St. Staff
Businesses spend millions of dollars on brand management and advertising in the hopes of making their products seem especially appealing in the eyes of consumers. To that end, ads can use puffery, exaggerating claims and using superlative subjective terms such as “delicious,” “best,” or “perfect.”
While consumers in general expect some overhyping of products, some commercials stray too far, making specific claims that cannot be supported by facts or that are simply false, which is against the law. To varying degrees of success, a number of governmental and private organizations are keeping an eye on ads in an attempt to prevent Americans from buying a product or service under false pretenses.
24/7 Wall St. reviewed reports from the Federal Trade Commission and other consumer advocacy groups for cases of false, misleading, or exaggerated advertisements to determine the most outrageous product claims of all time.
Certain industries tend to have more issues with misleading claims. Dietary supplement businesses frequently exaggerate the health benefits of their products. And over the years, tobacco companies, too, have downplayed the harmful effects of cigarettes for decades. When discovered, false claims can erode the public’s trust in a company and ruin its brand image.
Companies whose public images were tarnished after false product claims were brought to light may need a brand reset. One of the most common options for these companies is a name change, which can offer a way to shed the negative associations consumers have with their previous brand.
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1. Gerber Good Start Gentle formula
Gerber made unsubstantiated claims that its Good Start Gentle formula prevented children who took it from developing allergies, a claim that could have significant consequences for children with allergies. The 2014 lawsuit filed by the Federal Trade Commission was settled in 2019, with Gerber agreeing not to make any similar claims for the product or imply the government authorized such a claim.
2. Sensa weight-loss product
Sensa claimed that its powdered additive – that you sprinkle on food – enhanced the smell and taste of food, thus making users feel full and eat less. The FTC ruled that the claim misled consumers and made unfounded weight-loss claims. The organization was forced to pay $26.5 million for a settlement, and was also charged for failing to disclose that they had paid customers for their endorsement.
3. 5-Hour Energy
5-hour Energy alleged that its energy drink shots were more effective than coffee and that doctors recommended it. Those claims were found to be deceptive, and the makers of 5-Hour Energy were ordered to pay $4.3 million in penalties and fees. The ruling was upheld in 2019 by the Washington Court of Appeals.
4. Lumosity app
In its ads, Lumos Labs claimed its app, which offers users access to games and brain training exercises, that it would help prevent Alzheimer’s disease or help students perform better in school, though it had no proof. The company was fined $2 million by the FTC.
5. Vitaminwater
Coca-Cola falsely claimed its Vitaminwater products could promote healthy joints, reduce the risk of eye disease, and have other health benefits. The company agreed to change Vitaminwater labels.
6. Nissan Frontier
A 2014 ad showed a Nissan Frontier pushing a dune buggy up a hill – a feat the truck is unable to pull off in real life. The company was forced to stop airing the advertisement, or any commercial making similar unfounded claims in the future.
7. Frosted Mini Wheats
The Kellogg Company claimed Frosted Mini Wheats improved children’s attentiveness by 20%. But attentiveness did not increase as much as promised in the vast majority of children who ate the cereal. Kellogg agreed to a $4 million settlement and to stop using the ads.
8. Pom pomegranate juice
Pom Wonderful claimed its fruit juice helped reduce the risk of medical issues such as heart disease, prostate cancer, and erectile dysfunction. Those claims were not backed by research and were ruled to be deceptive. POM Wonderful petitioned the Supreme Court to review the case, but it declined to do so in 2016.
9. Camels cigarettes
A 1946 advertisement for Camel cigarettes claimed that doctors preferred the brand in a supposedly independent survey, which was revealed to have been conducted by an ad agency using suspect methods. The cigarette commercial showed actors dressed as doctors puffing on cigarettes between house calls. Even at the time there was substantial evidence that cigarettes were deadly, and some view the use of doctors to imply their health a particularly despicable act of deceptive advertising.
10. L’Oreal skincare cosmetics
L’oreal claimed its Lancôme Génifique and Youth Code cosmetics prevented skin aging by boosting genetic activity in the user. The company was unable to support those claims when pressed. Under the terms of a settlement, the cosmetics company was prevented from making any claims about their products’ ability to alter the users’ genetics.
11. Sony Vita game console
Sony claimed that its PlayStation Vita handheld gaming console was “game changing,” promising features such as cross-platform and remote play. Yet many of these features were only available on certain games. In a settlement, Sony agreed to provide PS Vita buyers with a $25 cash or credit refund, or a $50 merchandise voucher.
12. New Balance toning shoes
The athletic shoe maker said its toning shoe could help wearers burn calories, though the shoes were never proven to be any better at helping to burn calories than other types of shoes. New Balance settled a class-action lawsuit over those claims in 2012 for $2.3 million.
13. Sale Slash diet pills
Sale Slash used completely fabricated endorsements from celebrities like Oprah Winfrey to make unfounded weight-loss claims about its diet pills. The FTC ruled that the ads were deceptive and the ingredients were unproven to be effective as a weight-loss treatment. In a settlement, Sale Slash provided over $8 million in refunds.
14. Eclipse gum
The Wrigley Company said its Eclipse Gum with magnolia bark extract could kill germs that cause bad breath. The claim was unfounded, and Wrigley agreed to pay $6 million to $7 million to settle a class-action suit and pay back buyers.
15. Activia yogurt
Dannon used actress Jamie Lee Curtis to tout “scientifically proven” claims that Activia helps regulate digestion and boost the immune system. A judge said Dannon “simply hadn’t proven” its claim and ordered the company to pay $45 million to settle a lawsuit.
16. Pure Green Coffee antioxidant capsules
Nicholas Scott Congleton claimed that Pure Green Coffee helped weight loss. The company used fake news organizations and logos from actual media outlets to prop up its bogus claims. Dr. Oz, too, endorsed this product on his show and was later hauled in front of a Senate’s Consumer Protection panel to defend his actions.
17. D-Lite, SunSplash, and Vitality tanning systems
Mercola Brand Tanning Systems claimed its tanning systems did not raise the risk of melanoma, a type of skin cancer, but “these claims are false and not supported by science,” the FTC said in its complaint. The company settled the complaint for nearly $2.6 million.
18. Chemence glue products
Chemence overstated how many of the chemicals in its glue products were made in the United States, including a “Made in the USA” designation on many of its products, for which the majority of components were imported. The Georgia-based company agreed to pay a $220,000 judgment to resolve the lawsuit brought by the FTC.
19. iSpring Water Systems
iSpring Water Systems claimed its water filtration systems were made in America, but many were either largely or entirely manufactured overseas. The company was barred from making those claims.
20. Chemical Free Solutions bed bug eradication product
A line of cedar oil-based products from Chemical Free Solutions LLC claimed to prevent bed bug infestations – a statement unsupported by science. The company was banned from selling bed bug eradication products and had to pay over $200,000 in customer refunds.
21. Nectar Brand mattresses
Nectar Brand marketed its mattresses as assembled in the United States, when they were “wholly imported” from China. The company must disclose the extent to which the product has foreign parts and not make any other similar misleading claims.
22. Benjamin Moore & Co. paint
Benjamin Moore & Co. said its products contained no volatile organic compounds and that they were emission free, though it could not support those claims. The FTC ordered the paint company to cease making any similar claims.
23. Capital Home Advocacy Center mortgage assistance
Capital Home Advocacy Center, which offered mortgage relief to homeowners, claimed it was accredited by the Better Business Bureau, even though it had actually received an F rating. The business was hit with an injunction and restraining order.
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24. American Plastic Lumber Company building materials
American Plastic Lumber Company overstated the amount of recycled materials in its products. As a result, the company will have to specifically demonstrate its products were recovered waste before making any similar claims.
25. Nopalea fruit drink
TriVita claimed that its Nopalea drink would reduce pain and inflammation, improve breathing, and provide a number of additional health benefits – none of which were scientifically proven. The company settled with the FTC for $3.5 million.
26. Smart Balance Blended Butter Sticks
Blended Butter Sticks from Smart Balance claimed to block cholesterol, but the product contained too much saturated fat for that to be true. Smart Balance has removed the claim.
27. ADT home security
ADT falsely identified the safety and technology experts who endorsed its home security product as independent. Those experts had actually been paid for their endorsements. ADT was required to remove paid reviews and endorsements that were not properly identified and prohibit them from misrepresenting paid endorsements again.
28. Tarr Inc. weight-loss product
Products marketed by 19 companies under Tarr Inc. claimed to help weight loss, build muscle, and reduced wrinkles. Those claims were made using fake celebrity endorsements and user testimonials.
29. Withdrawal Ease/Recovery Ease natural supplement
Withdrawal Ease and Recovery Ease products of Catlin Enterprises claimed to alleviate the symptoms of opiate withdrawal and increase the likelihood of a person overcoming opiate dependency. The FTC called these statements false, citing the lack of any scientific evidence.
30. Skechers Shape-Ups
Skechers said in advertisements that its Shape-Ups shoes would help wearers lose weight and tone their muscles. Those claims were deemed deceptive, and Skechers settled for $50 million.
31. Cheerios
Cheerios claimed the breakfast cereal could lower cholesterol. After receiving a warning letter from the FTC challenging this claim, Cheerios parent General Mills changed the label to say the cereal “can help lower cholesterol.”
32. Mars Petcare US dog food
Mars, the company that makes M&M’s, said its Eukanuba dog food could extend dogs’ lifespans by 30% or more. The FTC ordered the company to stop making those unsupported claims.
33. Vibram fivefinger shoes
Vibram claimed its FiveFinger running shoes offered health benefits compared with regular running shoes, though it could not back up those claims. The company settled a class action suit for $3.75 million.
34. Airborne dietary supplement
Airborne claimed that it helped ward off harmful bacteria and germs, preventing ailments like the flu and cold, but there was no evidence to support the assertion. In essence, this was a way to market regular vitamin supplements at an even higher price. The company settled a $23 million lawsuit.
35. ExtenZe herbal supplement
ExtenZe claimed its product was “scientifically proven to increase the size of a certain part of the male body.” That was untrue, and the company paid $6 million to settle a class-action suit.
36. Snapchat
Snapchat claimed that messages sent on the app would disappear, yet third-party apps can save the messages indefinitely. Snapchat was required to notify users that messages could actually be saved.
37. Volkswagen
The German carmaker claimed its diesel cars were environmentally friendly when in fact Volkswagen vehicles were rigged to cheat emissions tests. The company has so far paid out billions in settlements for the scandal.
38. Splenda artificial sweetener
Splenda’s advertising tagline “Made from Sugar” was determined to be misleading. The sugar substitute maker decided to settle a lawsuit from a competitor over the slogan.
39. Philip Morris cigarettes
An advertisement claimed Philip Morris cigarettes Marlboro Light had less tar and nicotine than Marlboro Reds. A class-action lawsuit claimed the company knew the FTC’s testing machines would not detect the actual level of tar and nicotine smokers would inhale. The plaintiffs were awarded a total of $4.9 million in 2016.
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