Consumer Fraud Archive

Irresponsible Advertising? Kenneth Cole Tweet Nothing vs VitaminWater Ads

February 4th, 2011. By AbiK

Not Funny

The Kenneth Cole reaction (couldn’t resist)—i.e., the outburst over his—or his ghostwriting social media whiz—comment on Twitter the other day raised the question of responsible marketing for many—heck, it’s been front page news all over the media. For those of you who missed it, this was the tweet:

“Millions are in an uproar in #Cairo. Rumor is they heard our new spring collection is available online at http://bit.ly/KCairo -KC”

Cole followed up later in the day by taking that tweet down and posting a mea culpa:

“Re Egypt tweet: we weren’t intending to make light of a serious situation. We understand the sensitivity of this historic moment -KC”

Ok. Fine. Yes, the situation in Cairo is serious. Very serious. And yes, there are many who would take offense (clearly) at Cole using the situation to grab a cheap marketing shot. But those who have followed Kenneth Cole for many years are well-accustomed to his brand of advertising—and, like it or not, it’s provocative—intentionally so. And, if so inclined—you can even purchase the coffee table book, Footnotes, which takes you through Cole’s first twenty years of advertising.

But now let’s contrast the Kenneth Cole uproar with the latest ad campaign from VitaminWater. Maybe you’ve heard that the National Consumers League (NCL, a watchdog group) has filed a formal complaint with the Federal Trade Commission (FTC) over VitaminWater’s use of ad copy such as: “Flu shots are so last year.” The inference, of course, being that in some way, shape, or form VitaminWater is on a par—at the least—or superior to—at the worst—getting a flu shot.

The complaint from the NCL charges that such advertising is dangerously misleading. To add to that, ajc.com quotes Sally Greenberg, executive director of NCL as stating, “One of the reasons we went after them was the claims we so outlandish, downright reckless.”

Funny

VitaminWater (aka Glaceau VitaminWater) is owned by Coca-Cola—it’s founder, Michael Repole, sold it to Coke for $4.1 billion in 2007 and Repole’s recently made headlines for his interest in owning a stake in the NY Mets. Coca-Cola has responded to NCL’s criticism by saying that the ads are meant to be funny.

I can buy that—I like humor. But let’s look at the context here as well. Pick up a bottle of VitaminWater (note, not an endorsement here—just pick one up off the store shelf) and read the label. You’ll find things like “vitamins + water = all you need”. Or like the picture shown here, “that’s like brushing your teeth twice”—bet your dentist will like that one.

That’s not humor—that’s irresponsible.

Humor in advertising is that Staples “Most Wonderful Time of the Year” 30-second spot. Or take just about any Super Bowl ad—Pepsi, Doritos, Volkswagon, GoDaddy, Bud Light—they do “funny”. Betty White = Funny.

No one is going to experience undue harm as a result of having read Kenneth Cole’s tweet. What? Some Kenneth Cole fanatic is going to break a fingernail racing to click her mouse to get to Cole’s bit.ly link for his new spring collection? Please. On the other hand, when you put on a food or drink label that your product is “like brushing your teeth twice” when it’s not, well, that’s misleading. Ditto when you use display ads touting that “flu shots are so last year”.

What? I should drink sugar water instead?

Tags: Coca-Cola, false advertising, Fraud, FTC, Kenneth Cole, Misleading Advertising, National Consumers League, Responsible Advertising, Vitamin Water, VitaminWater
Posted in Consumer Fraud, Emerging Issues | No Comments »

Time to Wake up to “Awake” Cosmetic Procedures

January 21st, 2011. By LucyC

It’s that time of year when everyone—well almost everyone—thinks about losing weight and getting in shape. Gym memberships go nuclear as do memberships to organizations like Weight Watchers and Jenny Craig. All good. But there’s also some not so good.

One trend—that sounds too good to be true—is “Awake Procedures.” According to a report on MSNBC.com, bargain prices are being offered on cosmetic procedures such as breast augmentation and liposuction without general anesthetic—and apparently without an anesthesiologist, or even a qualified plastic surgeon.

The procedures, such as Awake Liposcuplture and Awake Abdominoplasty, are aimed at women who are afraid of having or don’t want a general anesthetic, who want to remain in control during the procedure (?), or who don’t want to go to a hospital. Here’s a blurb from a website offering information about Awake Liposculpture:

“Because liposculpture is generally performed under local anesthesia, it is an outpatient procedure that can be performed in a short 1-2 hours in the comfort of the liposculpture surgeon’s office or clinic.”

Sounds comfortable, safe, private, non-threatening…but what if things don’t go according to plan? Let’s take breast augmentation for example. In the piece on MSNBC, Dr. McGuire, M.D., a director of the American Board of Plastic Surgery, cites numerous potentially life-threatening complications that could occur during the procedure “including blocked airways, blood pressure changes or collapsed lungs.” The most invasive procedure, full tummy tucks—presents even Read the rest of this entry »

Tags: Awake Breast Augmentation, Awake Liposuction, Cosmetic Procedures
Posted in Consumer Fraud, Drugs/Medical, Emerging Issues | 1 Comment »

GOP Whistleblower Site to Keep Tabs on Their Own

January 12th, 2011. By AbiK

And then some.

Call me jaded. Call me skeptical. Call me “oh, ye of little faith”. But I’m guessing most of you out there will call me a realist when you take into consideration that House Oversight Chairman Darrell Issa (R-CA) is running a whistleblower website (see pic; wb-gop-oversight.house.gov/) whereby government insiders and the general public can blow the whistle on perceived (or real) fraud or misconduct—done by anyone regardless of party affiliation.

By the way, for those who don’t breathe, eat, and live this stuff on a daily basis, when we’re talking government fraud, we’re talking “Qui Tam” whistleblower cases. More on what the heck Qui Tam means can be found here on our blog.

I do commend the effort—Issa’s not only got the website going—it’s a form that you can fill out to report government fraud, and of course, while you are required to submit your email address or phone number, all details provided will be “kept in strict confidence”. But he’s out there socializing it as well in an effort to not only be accessible but seemingly more transparent. Go Rep Issa.

According to a post over at TheHill.com, Issa’s also got a twitter account (@DarrellIssa, and yes we (@OnlineLegalNews) follow him) where he responds to tweets shot over in his direction.

[Note to self: given recent requests (er, subpoenas) for info exchanged on Twitter re: WikiLeaks, maybe not ideal to post sensitive info, questions, allegations, or otherwise on Twitter…]

Interestingly too, the article at TheHill.com also has some comments—one’s from a Daniel Haszard who’s a steady commenter here at LawyersandSettlements.com on Zyprexa. Guess it is true we all run in the same circles… But another, from Back Firer, reads “He just opened the door for more crazy people to take their anger out on govenment. This man is on a witch hunt, but the hunt will back fire.” Well, perhaps, but I do agree there will be quite a number of “vent” submissions, and submissions from crackpots, and I pity the fool who’s going to have to moderate it all.

But—I suppose if it does stop even just one act of fraud, maybe it’s worth it.

Again, I do commend Issa’s efforts—but for my money, give me an attorney who specializes in whistleblower litigation. I so want to trust that the powers that be will do the right thing, with zero repercussions or retaliation, but like I said, call me jaded, I just can’t “go there” yet.

What do you think?

Tags: Darrell Issa, Government Fraud, Qui Tam, Whistleblower
Posted in Consumer Fraud, Whistleblower | No Comments »

Kardashian Kard Lame Launch: Who’d Want One Anyway?

January 12th, 2011. By LucyC

Keeping Up With The Kardashians? Maybe not… The Kardashian sisters, Kim, Khloe and Kourtney are facing a lawsuit over breach of contract with a company that created a prepaid debit card—the Kardashian Kard, designed specifically to be endorsed by the celebrity sisters and draw on their fan base.

An enterprising idea. Perhaps a little too enterprising. The Kard—oops—card—made quite an impact on Attorney General Richard Blumenthal who issued a warning about what he called its “predatory” fees. Predatory lending practices certainly seem to be the theme de jour—and there is long list of credit card companies, banks and mortgage companies facing a laundry list of complaints over unfair business practices.

The Kardashian Card, a pre-paid debit card by Mastercard developed by Revenue Resource Group LLC, would appear to be no exception. In fact, Blumenthal recently described the card as “filled with gotcha fees and charges, such as $99.95 annual fees, $7.95 monthly fees…ATM withdrawal fees, bill pay fees, loading fees—and even charges for talking to a live operator at their service center and a card cancellation fee.” (Fresno Bee)

Given all the bad publicity the card received—and deservedly so—the Kardashians rushed in into face-saving mode and hired a lawyer, who sent a contract termination letter to the debit card company University National Bank, which issued the cards, which pulled the company’s operating license that day. And presto, bingo—you have the makings of a lawsuit.

The suit alleges that the Kardashian sisters, their company Dash Dolls LLC, and their mother, Kris Read the rest of this entry »

Tags: Attorney General Richard Blumenthal, Kardashian debit card, Kardashian Kard, Khloe Kardashian, Kim Kardashian, Kourtney Kardashian
Posted in Consumer Fraud | No Comments »

Happy Meal Lawsuit: Where Do I Sign Up?

December 29th, 2010. By janem

Hey Kids, contrary to what those clever folks at McDonald’s (the experts in deceptive marketing) have led you to believe, Happy Meals are not Happy Toys.

The Center for Science in the Public Interest (CSPI) has filed a class action lawsuit on behalf of a Sacramento Mom against McDonald’s, claiming the fast food giant engages in “the unfair, unlawful, deceptive and fraudulent practice of promoting and advertising McDonald’s Happy Meal products to very young California children, using the inducement of various toys.”

Of course Monet Parham (Mom and Plaintiff) knows that she can simply say “No” when her two kids demand a Happy Meal, and likely anticipated a backlash from media and parents suggesting she do just that. But like a gazillion working parents, she is sick and tired of having to say no over and over again. If not for McDonald’s “Neuromarketing” (yep, that’s what they call it, getting into your kid’s head) she probably wouldn’t mind them having a Happy Meal now and then.

But McDonald’s aggressive marketing tactics have got to be reigned in. Any corporation that has so much impact on a child’s health must also have a moral responsibility to ensure they are serving healthy food and not paving the way for toddlers to become obese before they turn into teenagers.

A lot of thought—which spells mega-profit—is behind the marketing of Happy Meal toys. According to the CSPI lawsuit, QSR (quick service restaurant) magazine quoted Roy Bergold, Read the rest of this entry »

Tags: consumer_fraud, Happy Meal, McDonald's, McDonald's Happy Meal, McDonald's Lawsuit
Posted in Consumer Fraud | 7 Comments »