International consumer protection network goes after health scams to protect the health of global consumers

58 Consumer Protection and health authorities from all over the world swept the Internet recently to improve the marketing practices of websites promoting health products and to pursue fraudulent health businesses.

This "International Internet Sweep" was an activity of the International Marketing Supervision Network. The IMSN is a network of consumer protection authorities of 30 countries. Its main objective is to take action to prevent and redress deceptive marketing practices with an international component.

Websites were examined for claims that were likely to be false or misleading about the health benefits of products. Included in this assessment were oral treatments such as pills, skin treatments such as lotions, devices, weight loss products, 'cures' for HIV/AIDS, cancer and arthritis, folk or traditional treatments and sexual performance enhancing products.

Of particular concern were products that claimed to be a cure for serious and life-threatening diseases such as cancer and HIV/AIDS. Also attracting attention from the IMSN are products that advertised a delayed effect, forcing consumers to make an additional purchase before seeing any evidence of the effectiveness of the product.

Over 1,400 suspicious websites were identified all over the world. Of these:

• 48.5% used testimonials to sell the product or service, and only 38.6% of these testimonials claimed to be from relevant experts or professionals;
• only 37.7% made reference to clinical studies or scientific experiments;
• 13.2% claimed approval or authorisation from an official agency (52.6% of these from an agency outside their own jurisdiction);

Costs for products of concern ranged from US$0.83 to US$6,930.90.

Some websites have already received e-mail warnings from law enforcers. Others will be subject to further investigation and action, including administrative settlements, enforceable undertakings, and in some cases, court action.

The IMSN provides the following tips for consumers of health products:

• if it sounds too good to be true, it probably is;
• beware of products or treatments that are advertised as a quick and effective cure-all for a wide range of ailments or for an undiagnosed pain; 
• be cautious of testimonials claiming amazing results; 
• watch out for promoters who use phrases such as "scientific breakthrough", "miraculous cure", "exclusive product", and "secret ingredient"; and 
• before you purchase, consult your pharmacist, doctor or other health professional.

To report a suspected scam to the IMSN, go to www.econsumer.gov

For further information about the IMSN, go to www.icpen.org

Background

What is an International Internet Sweep?

The International Internet Sweep is an initiative of the International Marketing Supervision Network, an organisation made up of consumer protection agencies worldwide. The Australian Competition and Consumer Commission is a member and current President of the IMSN.

The IMSN fosters cooperative efforts by member authorities to tackle consumer problems connected with cross-border transactions in both goods and services. Exchange of information between authorities also plays a key role in effective investigations and court action where necessary.

The Sweep is an annual event, coordinated by the ACCC. The rate of participation in this year's Internet Sweep was the highest rate to date, equalled only by the Sweep in February 2001. The 58 participating agencies were from 19 member countries of the IMSN.

The IMSN has held Sweeps on three previous occasions:

1. 1997 Sweep targeted 'get rich quick' schemes, identified over 1100 suspicious sites, 25% of which were modified or removed before the 'follow up Sweep' two weeks later
2. 1998 Sweep targeted miracle cures and other misleading health claims, identified over 1400 sites, 25% of which were modified or removed before the 'follow up Sweep' and
3. 2001 Sweep targeted compliance with OECD guidelines. 3,271 sites were assessed worldwide, including 229 Australian sites.

Participants in the health fraud Sweep included Australia, Austria, Belgium, Canada, Denmark, Ireland, Finland, France, Hungary, Japan, Korea, New Zealand, Norway, Poland, Portugal, Switzerland, Sweden, UK and USA.