FTC asks ‘detox tea’ company to pay $1 million to Ins ad victims

The Federal Trade Commission (FTC) said “detox tea” Teami misled consumers with outrageous health statements and online celebrity ads that did not explicitly disclose the revenue they received,media reported. According to the FTC’s complaint, Teami’s products sell more than $15 million, and the company itself claims that its products have the effect of losing weight or treating diseases, but there is no reliable scientific basis for all this.

FTC asks 'detox tea' company to pay $1 million to Ins ad victims

In response, the FTC ordered Teami to stop the practices and refund $1 million to “injured consumers.”

In addition, according to the complaint, Teami promotes the products by paying online celebrities who have repeatedly failed to disclose their sponsorships to their fans. So far, the FTC has sent warning letters to a number of Teami-related Instagram celebrities, including rapper Cardi B, for violating the agency’s Certification Guidelines (Endorsement Guides) and reiterating that those who do not comply will be brought to justice.

Social media marketing has been a controversial topic over the health effects of weight loss products. These companies pay people who are online celebrities to post their products on social media Instagram. Over the past few years, the FTC has begun to crack down on this kind of marketing. In 2017, the FTC said online celebrities needed to use tags such as “ads” or “partners” in their post descriptions to disclose what fans were seeing.