Epidemic of Fraudulent Marketing -- Eager to Believe
Posted by
Alyssa DiEdwardoSeptember 30, 2009 12:38 PM
On the heels of the largest Health Care Fraud Settlement in history why is it that so many of us are still so eager to blindly believe ads and product promises? We believe because we want the latest, greatest cure; the new drug that will take away our pain; the panacea which will ease our suffering. In a recent article in the New York Times it was suggested that the “Industry” preys on insecurities and spin off products to respond to what has become an epidemic of a multitude of conditions or health concerns that have created a state of high anxiety and a false hope for "the" cure.
In September 2009 the Justice Department announced the largest criminal and civil health care fraud settlement in history. Big Pharma giant, Pfizer, agreed to pay $1.2 billion in criminal fines for its acts of fraudulent marketing involving its product, Bextra and other medications.
“The size and seriousness of this resolution, including the huge criminal fine of $1.3 billion, reflect the seriousness and scope of Pfizer’s crimes,” said Mike Loucks, acting U.S. Attorney for the District of Massachusetts. “Pfizer violated the law over an extensive time period. Furthermore, at the very same time Pfizer was in our office negotiating and resolving the allegations of criminal conduct by its then newly acquired subsidiary, Warner-Lambert, Pfizer was itself in its other operations violating those very same laws. Today’s enormous fine demonstrates that such blatant and continued disregard of the law will not be tolerated.”
Under the False Claims Act The United States Department of Justice cited six whistleblowers who will split $102 million for participating in the investigation leading to the criminal charges that uncovered the fraud and "off-label" use of the Pfizer drug products.
A statement made by Tony West, Assistant Attorney General for the Civil Division set forth that:
"Illegal conduct and fraud by pharmaceutical companies puts the public health at risk, corrupts medical decisions by health care providers, and costs the government billions of dollars, this civil settlement and plea agreement by Pfizer represent yet another example of what penalties will be faced when a pharmaceutical company puts profits ahead of patient welfare."
However Fraudulent Marketing is not restricted to just the formal Pharmaceutical Industry.
In another arena, consumer group The Center for Science in the Public Interest (CSPI) filed a class action lawsuit in U.S. District Court in the Northern District of California, against Coca-Cola Co, accusing the company of making false health claims about “Vitaminwater”.
According to CSPI "Coke markets Vitaminwater as a healthful alternative to soda by labeling its several flavors with such health buzz words as 'defense,' 'rescue,' 'energy' and 'endurance, In fact, according to CSPI nutritionists, the 33 grams of sugar in each bottle of Vitaminwater do more to promote obesity, diabetes and other health problems than the vitamins in the drinks do to perform the advertised benefits listed on the bottles," while Coca Cola claims VitamanWater reduces the risk of chronic disease and eye disease.
Coca Cola was also warned by the FDA last December after claiming Diet Coke Plus that includes a variety of vitamins and mineral violating U.S. policy against “marketing soda and other snack foods as more nutritious.” Coke adamantly denies these allegation claiming that their product follows FDA rules and provides adequate product labeling.
In the Dietary Supplement Industry Tony Pham, owner of Techmedia Health, in July 2009 pled guilty in Federal Court that he used the company to repackage, sell market and distribute unapproved new drugs and misbranded drugs over the internet. Pham and his collaborators are now facing a $12 Millon dollar fine. Pham admitted he used Techmedia to market supplements to be backed by clinical testing on various websites claiming to treat or prevent diseases such as diabetes, irritable bowel syndrome, gout, high cholesterol, high blood pressure, heartburn and diarrhea.
“Under federal statutes, Pham is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $500,000 or twice the gross gain. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office,” said the office of Acting United States Attorney for the Western District of Missouri, Matt Whitworth, in a statement.