McGrath: Montana Joins Multi-State Settlement with Company Charged with Advertising False Medical Recall Notice
HELENA – Attorney General Mike McGrath on Wednesday said that his office has joined 17 other attorneys general in a settlement with two Nevada companies and their owner for advertising false and misleading claims. The two Las Vegas companies, Gateway Distributors, Ltd. and The Right Solution Gateway, and their owner, Richard Bailey, use the name “The Right Solution” to market alternative health products to consumers through the Internet and mail.
The multi-state action alleged that The Right Solution mailed an advertisement to Montana residents labeled as a “Medical Recall Notice.” The notice falsely stated that prescription estrogen and progesterone products have been the subjects of medical recalls. The Right Solution’s notice said that the products were hazardous to consumers’ health and further claimed that the products could cause breast cancer, cervical cancer and endometrial cancer. The notice urged consumers to instead use The Right Solution’s product, “YMotion Yam Cream.” No prescription drug estrogen or progesterone products have been the subjects of a medical recall.
“This company and its owner deliberately lied to scare consumers into using these products rather than the drugs prescribed by their health care providers,” McGrath said. “If consumers are to make informed decisions about their health, it’s imperative that the companies that sell health products advertise their products honestly.”
The attorneys general also alleged that The Right Solution’s YMotion Yam Cream has not been approved by the U.S. Food and Drug Administration (FDA) and so cannot be legally sold in the United States. The attorneys general alleged that The Right Solution made false and misleading claims that their product was clinically proven to be safe and effective when, in fact, the product had not been clinically tested or proven to be effective.
In the settlement, the companies and their owner agreed to:
- stop selling YMotion Progesterone cream or any other drug products unless they are first approved by the FDA;
- not make any health claims in their advertisements unless they have the clinical research proving the claims to be true;
- return all of the payments received from consumers who file complaints by December 11, 2006, about the YMotion Yam Cream products they purchased, and
- pay a $100,000 penalty to the attorneys general.
Consumers who bought Ymotion Yam Cream and believe they are entitled to a refund must file a claim no later than December 11, 2006. Consumers who wish to file claims for restitution may either write to or call:
Office of Consumer Protection
Attn: The Right Solution Claims
1219 8th Avenue
P.O. Box 200151
Helena, MT 59620-0151
Phone: (406) 444-4500 or (800) 481-6896
The other states that participated in the settlement are: Arizona, California, District of Columbia, Illinois, Kentucky, Maryland, Michigan, Missouri, Nevada, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Vermont, Washington and Wisconsin.