The FTC has sued Golden Sunrise Pharmaceutical in a federal California court, alleging the company falsely markets and sells herbal supplements as FDA-approved treatments for Covid-19, cancer, and Parkinson’s Disease.
The agency seeks an injunction, restitution, refunds, and disgorgement of its profits for allegedly violating the FTC Act in connection with the labeling, advertising, marketing, distribution, and sale of the supplements.
The Federal Trade Commission sent a warning letter to Golden Sunrise April 29 that ordered it to remove all unsubstantiated assertions that its products can prevent, treat, or cure the form of Covid-19 that has sent much of the world into lockdown.
In response, the company modified its marketing materials to replace “Covid-19 virus” with terms such as “the virus,” “viral,” or “the viral pandemic,” the complaint in the U.S. District Court for the Eastern District of California alleges.
The revised advertisements continue to falsely represent that its Emergency D-Virus Plan of Care can effectively treat Covid-19, the complaint alleges.
Company CEO Huu Tieu was charged criminally July 14 with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud.
Cause of Action: Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52.
Relief: Injunctive and equitable relief.
Response: Golden Sunrise didn’t immediately respond to request for comment.
The case is FTC v. Golden Sunrise Nutraceutical Inc., E.D. Cal., No. 20-at-00540, 7/30/20.
To contact the reporter on this story:
To contact the editors responsible for this story:
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.