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Fraud Squad
by Corey Senn

"New Anti-Aging Pill Stops Aches, Pains, Fatigue, Depression, Improves Memory, Skin Tone and Sex Drive!" print article     
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Sounds pretty good, doesn't it? The only problem--it's a lie. Ads like this fall under the category of health care fraud, a problem that swindles consumers out of billions of dollars each year. And the emergence of the Internet has provided a new and dynamic medium to market all sorts of these fraudulent wares. Health fraud can be loosely defined as anything that claims to improve an individual's health, well being, or appearance when, in fact, the claim cannot be proven. This includes a range of drugs, devices, foods, alternative therapies, and cosmetics that, oftentimes, target conditions such as arthritis, cancer, HIV/AIDS, diet or weight loss, and baldness.

Currently, the Federal Trade Commission (FTC) and Food and Drug Administration (FDA) oversee the laws that prohibit health fraud in the marketplace. The following are excerpted transcripts from exclusive VAB Your Health interviews conducted with Richard Cleland (Supervisor of the FTC's Operation Cure.All), Thomas McGinnis (FDA Director of Pharmacy Affairs in the Office of Policy), and Betty Dodson (FDA National Health Fraud Coordinator):

 
"The Internet has changed the way snake oil salesmen market their product from town to town. Literally every marketer on the Internet is now a potential national or international marketer."

Q: Do you think the advent of the Internet has heightened the incidence of health fraud?

RC: The Internet has changed the way snake oil salesmen market their product from town to town. Literally every marketer on the Internet is now a potential national or international marketer. 34 million Americans searched for health care information last year, 67% of these Internet users are unable to distinguish between what is credible and what is not credible health information.

TM: You're bound to find unscrupulous characters moving into this medium to try to sell their products to consumers and get them to buy these products.

BD: The Internet provides [the perpetrators of health fraud] with innovative and new ways of presenting their product. And it allows them to establish web sites without much oversight.

Q: What sorts of things are hot beds for fraudulent products, claims, and services?

RC: The products tend to be faddish. Many times, there is something reported in the scientific press or in the media about some ingredient that might be useful or preliminary evidence that it might be useful. That is followed by a whole host of marketers trying to sell products that claim to treat those diseases, and generally not pointing out that there is no solid scientific evidence to that effect. The major areas that get targeted now are cancer, arthritis, diabetes, AIDS/HIV, and multiple sclerosis.

Q: Could you describe what the FTC's Operation Cure.All is about?

RC: Operation Cure.All is a three-part initiative focusing on enforceable actions against egregious health care fraud, as well as industry education and consumer education. It was initiated in the fall of 1997 with a "surf day" we conducted.where we identified some 400 sites making questionable claims for cures or treatments of diseases. After each of these surfs, we advised the companies that the claims they were making had to have competent, reliable, scientific evidence to support them. And if they didn't have this, it was illegal. Many involve ingredients like CMO (purports to treat and/or cure arthritis), cat's claw, shark cartilage, and ESSIAC (which claims to be a cancer and AIDS cure).

Q: How do you determine which sites to investigate first?

TM: The (FDA) commissioner has set three priorities. The first is anything that can be really harmful to consumers, the GBL, GBH type drug products, the so-called "date rape" type drugs. Those have been our highest priority, anything that could harm someone. Prescription drugs sold online that may be coming from illegitimate or rogue sites have been another of our highest priorities. And finally, health fraud in general, anything that tries to fool the American consumer into using their product before other traditional treatments are used.

Q: What is the most egregious practice that you've heard of?

RC: I think that physicians issuing prescriptions based on online questionnaires, when they have no chance of discovering latent diseases that may be contraindicated for the drug that's being pushed on the site. An example is Viagra. Impotence may be a symptom of heart disease, and the consumer may not be aware that they are in the early, or later, stages of heart disease. [Consumers] are not going to be providing that kind of information on the questionnaire. And they're going to be getting a drug that could be potentially fatal for them. Just as egregious are those companies targeting vulnerable groups like cancer sufferers or arthritis sufferers.

Q: Do perpetrators of health fraud target certain populations of people?

BD: Yes, I believe they do. Most people who are taken in by health fraud are looking for a miracle cure. Vulnerability is a big factor there. Depending on what [the perpetrators of health fraud] are promoting, that will usually determine the audience.

RC: More and more we're seeing products being talked about that claim to treat childhood problems, particularly like ADD and ADHD (attention deficit disorders). We've mainly started seeing these products appear in the last two to three years.

 
"It's important that the consumer not rely on one source of information about a product. If you go to a web site and find a mystery ingredient, do a search on that ingredient; see if anyone has done any serious work on its efficacy and safety."

Q: Is it difficult to find and stop those who are engaging in clever Internet health fraud?

RC: Yes and no. So far, we have not had an instance in which we were unable to locate the culpable party. Having said that, it is much more difficult to locate the culpable party than it used to be. With an ad on TV, it's pretty easy to track down the people who placed the ad. It's not always that easy on the Internet. It requires more work and investigation on our part. There are the potential problems of sites not staying around long enough and disappearing before we can perform the investigation.

Q: With this in mind, would you say that it is ultimately up to the individual to educate themselves and protect themselves from health fraud?

RC: The consumer is the first line of defense. And that's not just a cliché. One of the worst things a consumer can do is make an assumption that a product or service wouldn't be [on the Internet] unless the government had somehow looked at and approved the ad. That's no longer the case. It is a buyer beware market on the Internet. It's important that the consumer not rely on one source of information about a product. If you go to a web site and find a mystery ingredient, do a search on that ingredient; see if anyone has done any serious work on its efficacy and safety. Don't rely just on the hype of the company trying to sell you the product.

Q: What advice would you give to online consumers to protect themselves from online fraud?

TM: We've told consumers to be careful of those sites that don't show you where they're operating from, an address or a phone number, how to contact them, or the name of a pharmacist to call with questions if your going to buy medication. Typically, legitimate pharmacy sites want you to know who they are, where they are, and how to contact them.

Q: And if people do find something online they feel is fraudulent or suspect, are there places they can go to report it?

TM: A special FDA site just went up on last year (fda.gov/medwatch). We have gotten [a few hundred] reports of consumers finding things on the Internet that don't look legitimate. Those reports go directly to our office of enforcement and then they are investigated.

RC: If consumers go to [the FTC's site], there is a complaint form they can fill out and give the [domain name] of the site. We go through and take a look at those sites on a monthly basis.

Protecting yourself from health fraud

Do's and Don'ts for online users:

• Avoid sites with products claiming to be "cure-alls"

• Be wary of testimonials from patients claiming amazing results

• Watch out for catch-all phrases such as "scientific breakthrough," "miraculous cure," or "secret ingredient," etc.

• Don't trust sites with claims that sound too good to be true

• Consult with your pharmacist, doctor, or other health professional before using "alternative" medical devices or products.

Online patient education

Where to go to get the skinny on health fraud:

• FDA (fda.gov)

• FTC (ftc.gov)

• Healthfinder (healthfinder.com)

• Quackwatch (quackwatch.com)

 

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