The Federal Trade Commission is taking action against California-based Precision Patient Outcomes, Inc. and the company’s CEO, Margrett Priest Lewis, for marketing an over-the-counter dietary supplement containing nothing more than vitamins, zinc and a flavonoid as an effective treatment to mitigate the effects of COVID-19.
“The FTC will end baseless claims about COVID-19 treatments that harm consumers’ wallets and health,” said Samuel Levine, director of the Commission’s Consumer Protection Office. “We are not simply seeking to end this type of fraud, but to permanently prohibit companies and business owners who engage in misconduct from endangering the health and well-being of American consumers. “
In its complaint, the FTC seeks to permanently prevent the company and its CEO from using misleading treatment or prevention claims without supporting scientific evidence to sell their dietary supplement. The FTC alleges that these practices violate the FTC Act and the COVID-19 Consumer Protection Act. The latter allows the Commission to seek civil penalties for COVID-related consumer fraud.
Precision Patient Outcomes, based in Berkeley, Calif., developed, labeled, advertised, marketed, distributed and sold a supplement under the names COVID Resist and VIRUS Resist, to consumers nationwide during the COVID pandemic. According to the FTC complaint, in May 2021, defendants began advertising and marketing COVID Resist on the company’s website and social media pages with misleading claims that the product can treat, prevent or mitigate COVID-19.
Lewis, co-founder and CEO of the company, formulated the product and directly controls business operations of Precision Patient Outcomes. Among other things, she has been actively involved in promoting COVID Resist and VIRUS Resist using the company’s website; through posts on Facebook, Instagram and TikTok; and on his personal accounts on social networks.
Although knowing the Commission enforcement measure under COVID-19 consumer protection law against a company making similar claims about the science and efficacy of its products, defendants only changed the name of the product from COVID Resist to VIRUS Resist and continued to misleadingly advertise it as an effective treatment for COVID -19.
The Commission’s vote allowing staff to file the complaint was 4 to 1, with Commissioner Christine S. Wilson dissenting. The lawsuit was filed in the U.S. District Court for the Northern District of California.