Coulomb Media, Inc.
The FTC alleged that Coulomb Media used fake news websites to promote acai berry supplements and colon cleansers with deceptive weight loss claims. A $2.7 million judgment was suspended after payment of $170,000 in cash and assets.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC File No. X110037 (Coulomb Media, Inc.); FTC case 112-3072
- Jurisdictions
- United States (federal)
Sites built to look like the news
Coulomb Media was one of ten fake news site operations the FTC halted in a 2010 sweep. The sites were designed to appear to be part of legitimate news organizations while being, in the FTC’s description, nothing more than advertisements steering people toward merchants selling acai berry weight loss products.
They carried names like “News 6 News Alerts,” “Health News Health Alerts” and “Health 5 Beat Health News,” and often represented that their reports had been seen on major outlets including ABC, Fox News, CBS, CNN, USA Today and Consumer Reports. Investigative sounding headlines introduced stories presented as a reporter’s own experience with the supplements, typically claiming a loss of 25 pounds in four weeks.
Attention grabbing ads on search engines and high volume sites, such as “Acai Berry EXPOSED, Health Reporter Discovers the Shocking Truth,” drove traffic to the fake sites and on to the merchants. The FTC received numerous complaints from consumers who paid between $70 and $100 for products after being deceived this way.
The settlement
Coulomb Media and Cody Low, also known as Joe Brooks, face a $2.7 million judgment, suspended after they pay $170,000 in cash, the proceeds of the sale of Low’s 2010 Chevrolet Tahoe, and a certificate of deposit.
The order requires them to make clear when a commercial message is an advertisement rather than journalism, bars further deceptive health claims, and requires disclosure of material connections with merchants. The Commission vote was 3-1, with Commissioner J. Thomas Rosch voting no.
What is not established
The consent decree is for settlement purposes only and is not an admission that the law was violated.
Sources
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- Enforcement action March 21, 2012
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First recorded March 21, 2012 · Last updated March 21, 2012