NEW GENERATION "REDUCES EXCESSIVE HAIR LOSS" CLAIMS FALSE, FTC

Executive Summary

NEW GENERATION "REDUCES EXCESSIVE HAIR LOSS" CLAIMS FALSE, FTC charges in a complaint filed Nov. 14 in Reno District Court against New Generation anti-baldness hair care product marketer California Pacific Research (CPR). The Federal Trade Commission alleges that TV ads and promotions for New Generation Hair and Scalp Cleanser and Shampoo "falsely represent" that the products "reduce excessive hair loss in virtually everyone who has male pattern baldness" and "will promote new hair growth in a substantial number" of people with male pattern baldness. The complaint was also filed against Ilona Schreck-Purola, MD, Exclusive Overnight Formula, which is sold as a New Generation treatment. In 30- minute "advertorial" TV ads, these products are "misrepresented" as formulas developed and clinically tested at the University of Helsinki in Finland, according to FTC. The informational format ads feature "interviews" with Schreck-Purola. The complaint also charges CPR President Robert Murphy of Reno, who has been marketing New Generation products since April 1980. Claims FTC cited as "false and deceptive" include: "Approximately 80% of [users] ... have experienced regrowth. Nearly 100% have reported a slowdown or stopping of hair fallout"; "Our testing program showed that about 90% ... will experience a significant reduction in abnormal hair loss within three to four weeks..."; and, "approximately 28 weeks after you started ... you get the maximum result, which is about 50% to 60%." The FTC action against CPR is the second in a week against a firm marketing a non-prescription anti-baldness or hair growth products. FTC filed a complaint against Pantron for its Helsinki Formula on Nov. 18 ("The Pink Sheet" Nov. 21, T&G-11). Like the complaint against Pantron I, the latest FTC action follows the filing of a lawsuit against the firm by Rogaine marketer Upjohn. New Generation products and marketer CPR were the subject of an Upjohn suit filed in October in Reno District Court. Concurrently, Upjohn sued Pantron I in Las Vegas District Court.