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133. FTC v. Sandra L. Rennert, et al., CV-S-00-0861-JBR) (D. Nev. filed July 6, 2000 )
Defendants: Sandra L. Rennert, Philip Rennert, Lyle Mortensen, International Outsourcing Group, Inc., Focus Medical Group, Inc., Trimline, Inc., Affordable Accents, Inc., World Wide RX, Inc., World Wide Medicine, Inc., PSRenn, Inc., and Doctors A.S.A.P., Inc.
Type: False Medical Claims, Spam & Online Pharmacies
Operators of a group of Online pharmacies that promoted themselves touting medical and pharmaceutical facilities they didn't actually have and making privacy and confidentiality assurances they didn't keep. The FTC alleged that www.worldwidemedicine.com, www.focusmedical.com and other Web sites claimed they operated a "full-service clinic with a full-time staff ... [and] a licensed medical physicians network," when they actually employed only one out-state doctor who was paid $10 for every Viagra request that he approved. The FTC also alleged that defendants had no "on-site pharmacy" as stated, that they misrepresented the security and encryption used to protect consumers' information, and that they used information in a manner contrary to their stated purpose. Finally, the FTC alleged that defendants sent "spam" to 11,000 customers informing them that their credit cards would be billed $50 for "Y2K Remediation."
The settlement with defendants prohibits their deceptive claims; requires disclosures about medical and pharmaceutical relationships; bars the billing of charge cards without consumer authorization; prohibits disclosure of the information collected from consumers without the consumers' authorization; and, requires them to notify consumers of their practices regarding the collection and use of consumers' personal identifying information. The settlement also requires defendants to disclose on any Web site offering prescription drugs, "Dispensing a prescription drug without a valid prescription is a violation of Federal law. More information on purchasing prescription drugs Online is available atwww.fda.gov."
http://www.ftc.gov/opa/2000/07/iog.htm (press release - complaint & settlement)
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