Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 6, 1., (b)

Falsely claiming that a product helps losing weight or cures serious illnesses, whereas in reality there is no scientific proof to back up this claim, constitutes an unfair commercial practice.

Following many complaints reported by consumers, consumer interest associations and public authorities, the Italian Competition Authority (the plaintiff) launched an investigation against the defendants with regard to the advertising and sale of products able to help losing weight and cure serious illness such as cancer, arthritis and other.

The defendants promoted the sale of their products by internet websites, out-bound call centres and direct mailing.

This activity was carried out jointly by the defendants, each of which had a specific role. The foreign legal entities were used to cover the other legal entities and to limit their potential liability.

In their advertisements the defendants asserted that the effect of their slimming products was guaranteed. They also advertised natural therapeutic products as medicines able to cure very serious illnesses.  

The investigation of the plaintiff revealed that there was no scientific evidence supporting that the products sold by the defendants had the healing effects as advertised. Indeed, based on the scientific evidence of which the plaintiff disposed, the latter found that the defendants' statements were false. The defendants were also found  to have omitted to inform the consumers about the contraindications of the slimming products.

The plaintiff held that all the defendants had jointly breached the prohibition on unfair commercial practices.

The breach was considered very serious because the conduct of the defendants was able to cause vulnerable consumers, such as people affected by a serious illness, to take a transactional decision that they would not have taken otherwise.  

Does falsely claiming that a product helps losing weight or cures serious illnesses, whereas in reality there is no scientific proof to back up this claim, constitute an unfair commercial practice?

URL: http://www.agcm.it/consumatore/consumatore-delibere/open/C12560D000291394/79C32AD41F3CB38EC1257C3D00540DF3.html

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On the basis of the gravity and duration of the practice, the plaintiff ordered the defendants to cease the unfair commercial practice and fined: (i) the defendant that sold the products to the consumers with a fine of € 300,000.00; (ii) another defendant with a fine of € 120,000.00 because of its financial difficulties; (iii) and each one of all the other defendants with a fine of € 150,000.00