FTC orders refunds for Biotape customers
This article was originally published in The Tan Sheet
Executive Summary
Biotape pain relief adhesive tape marketers Smart Inventions and Jon D. Nokes as well as product inventor Darrell Stoddard will provide up to $2.5 mil. in consumer refunds for deceptive marketing, according to a settlement agreement with the Federal Trade Commission. The defendants claimed the adhesive tape would provide permanent pain relief and be more effective than other pain-relief products, FTC states. An infomercial for the product claimed Biotape was "a space age conductive mylar that connects the broken circuits that cause ... pain," the commission says. Stoddard is being charged with violating federal law and must give up the $86,000 he made from infomercial sales. The order against Smart Inventions and Jon Nokes enters a monetary judgment of more than $2.5 mil. - the net sales of Biotape - which will be suspended as long as the marketers provide funding for refunds. The marketers are also barred from making such claims in the future unless the claim is true and can be substantiated...