FTC Cracks Down on Marketers of Deceptive Health Apps

The FTC is cracking down on marketers who deceptively claim an app can detect symptoms of melanoma, even in the cancer’s earliest stages, the agency said Monday in a release announcing the settlement of two separate lawsuits with the marketer of MelApp, Health Discovery, and a marketer of Mole Detective, Kristi Kimball and her company, New Consumer Solutions. Under the settlement, neither marketer can continue to make such unsupported claims, the agency said. Health Discovery was fined $17,963, Kimball and her company $3,930, the agency said. Two additional marketers of Mole Detective didn't agree to settle and the agency said it will continue to pursue charges against U.K.-based Avrom Lasarow and his company, L Health, which began marketing the Mole Detective app in August 2012. “Truth in advertising laws apply in the mobile marketplace,” said Director of the FTC Bureau of Consumer Protection Jessica Rich. “App developers and marketers must have scientific evidence to support any health or disease claims that they make for their apps.” The FTC voted 4-1 in favor of filing a complaint against the Mole Detective defendants in district court, approving the final judgment with Kimball and New Consumer Solutions and issuing the administrative complaint and accepting the proposed consent order against Discovery Health. Commissioner Maureen Ohlhausen, a Republican, dissented on all three votes. Public comments on the consent agreements will be accepted until March 25. Chairwoman Edith Ramirez and Democratic Commissioners Julie Brill and Terrell McSweeny issued a separate statement supporting the agency’s actions, while Ohlhausen issued a separate dissenting statement. Health Discovery, Kimball and Lasarow didn't comment.