WASHINGTON, DC
In 2018 the US Federal Trade Commission (FTC) warned weight loss tea marketers to back health claims with scientific studies and to “clearly and conspicuously” disclose endorsement deals in exchange for the product or pay. Several persisted, and in March, the courts dropped a hammer on detox tea company Teami LLC which was named in a $15.2 million FTC lawsuit.
Florida-based Teami will pay $1 million to settle. The venture earned an estimated $15.2 million selling detox tea online, according to FTC. The remainder of the judgment was suspended due to Teami’s inability to pay. The court found that all claims of weight loss and treating cancer were made without scientific evidence.
Teami's cadre of actresses, Instagram influencers, and paid endorsers include Kylie Jenner, rap star Cardi B, Demi Lovato, American Idol's Jordin Sparks, and Spy Kids actress Alexa PenaVega. All ten named in the suit backed Teami’s claims that the company’s $139, 30-day detox regimen led to “rapid and substantial weight loss.” Online the company claimed its tea “prevents and treats colds and flus,” “clears clogged arteries,” and “treats cancer.”
According to the FTC, Teami’s deceptive influencer practices continued despite the company receiving a warning letter in April 2018 stating, among other things, that all disclosures on Instagram needed to be viewable without consumers having to click a “more” link.
The FTC explicitly stated that phrases like “thanks Teami” did not substitute for clear language describing the paid endorsements by its network of social media influencers. “Teami failed to properly alert consumers as to the commercial nature of the posts, as required by the FTC Act,” according to FTC.
“Social media is full of people peddling so-called detox teas, promising weight loss,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “Companies need to back up health claims with credible science and ensure influencers prominently disclose that they’re getting paid to promote a product.”
— Dan Bolton