Field Reports1 Oct, 2004 Response
"This ban is meant to shut down an infomercial empire that has misled American consumers for years," said Lydia Parnes, acting director of the FTC's Bureau of Consumer Protection in a statement. "Other habitual false advertisers should take a lesson; mend your ways or face serious consequences."
FTC actions against Trudeau have been mounting for years, coming to a head in the past 15 months. In June 2003 the FTC filed a complaint against him and some of his companies for making unsubstantiated claims about the Coral Calcium supplement. In a separate action, the FTC alleged that he violated a 1998 FTC order by claiming that Coral Calcium Supreme and Biotape relieved pain.
He agreed to stop making these false statements and entered into a stipulated preliminary injunction, but he violated it this summer by disseminating a direct mail piece and another infomercial with the prohibited coral calcium claims.
The Sept. 7 settlement permanently bans Trudeau, Shop America (USA) LLC, Shop America Marketing Group LLC and Trustar Global Media Limited from making any claims whatsoever about products, services and programs that cure, treat or prevent disease or provide health benefits.
NEWS BRIEFDigital Cable Should Expect Growth Spurt
NEW YORK- Digital cable subscribers are expected to increase 11 percent, from 26 million homes in 2004 to 43 million homes in 2009, according to a report released recently by Jupiter Research. The number of cable television subscribers, however, is expected to remain flat, only increasing from 73 million in 2004 to 75 million in 2009.
In order to keep the number of subscribers climbing, cable operators and multiple system operators (MSOs) will have to promote services that are unique to digital television such as Digital Video Recorders (DVRs) and Electronic Program Guides (EPGs), the study says.
One feature that particularly draws consumers to digital television is the ability to choose and record a variety of movies. "The good news for operators is that 70 percent of consumers are interested in DVR features, and over 75 percent of those interested in DVRs want to record movies," said Todd Chanko, Analyst with Jupiter Research. "MSOs should highlight their movie-centric network lineups alongside their DVR promotions to stimulate DVR uptake."
DMA Ready to Invade New Orleans for 87th Annual ConferenceNEW YORK — Members of the Direct Marketing Association (DMA) and interested guests are primed to celebrate the organization's 87th Annual Conference & Exhibition in a town known for wild nights: New Orleans. The event is slated for Oct. 16-20 at the city's Ernest N. Morial Convention Center.
Once again, the DMA will host a Broadcast Pavilion on the show floor, featuring several of the leading companies in the direct response market. In addition, a track of five seminars relating to broadcast direct response will liven up the conference schedule.
"The DR Broadcast Pavilion is a perfect fit with the DMA Annual Conference & Exhibition," says David Smith, the DMA's senior vice president of marketing and business development. "As the largest gathering of direct and interactive marketers in the world, the attendees really understand the concept of increasing ROI on their marketing dollars and are always looking for new media channels to test."
The DMA 87th Annual Conference & ExhibitionOct. 16-20, 2004
Ernest N. Morial Convention Center, New Orleans
The DMA Broadcast Council Seminar Track — Five Sessions
(as of Sept. 22, subject to change)