Federal Trade Commission v. QT, Inc.
United States Court of Appeals for the Seventh Circuit
512 F.3d 858 (2008)
- Written by Heather Whittemore, JD
Facts
QT, Inc. (defendant) sold a product called the Q-Ray Ionized Bracelet. QT claimed that the bracelet provided its wearers with instant pain relief by balancing the flow of positive and negative bioenergies. However, the bracelet had no proven therapeutic effects. One study showed that the bracelet produced a placebo effect in wearers, making them believe that their pain had been reduced. The Federal Trade Commission (FTC) (plaintiff) charged QT with violating §§ 5 and 12 of the FTC Act by engaging in false advertising related to the bracelet. A federal magistrate judge held that QT had violated the FTC Act by failing to provide the proof necessary to substantiate its medical claims. The magistrate judge also enjoined QT from making further claims about the bracelet and ordered QT to repay $16 million it had collected from consumers. In his opinion, the magistrate judge mentioned that placebo-controlled, double-blind studies were the best form of proof for medical claims. QT appealed, arguing that the magistrate judge had subjected it to an unfair standard of proof for substantiating its claims.
Rule of Law
Issue
Holding and Reasoning (Easterbrook, C.J.)
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