FTC puts a $3M hurtin' on Blue Stuff

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Blue Stuff is going to have to come up with the green stuff.

Topical-cream hawker Blue Stuff Inc., McClung Advertising and company
president Jack McClung have agreed to pay $3 million to the Federal Trade
Commission to settle a suit against it.

The FTC said the trio made unsubstantiated claims for "Blue Stuff" and "Super
Blue Stuff" creams -- that they would relieve severe pain -- in TV infomercials
that aired nationwide through most of 2001 and the first half of this year.

In addition to paying the fine, Blue Stuff must back up any future claims
with "competent and reliable scientific evidence."

According to the Federal Communications Commission, among the ingredients in
Blue Stuff ($59.95 for an eight-ounce jar) are Emu oil and witch hazel extract.

The Food and Drug Administration also warned Blue Stuff that its product
runs afoul of the Federal, Food, Drug, and Cosmetic Act.

Also found to be making false claims were ads for the company's "Her Stuff"
cream and "Essential Stuff" dietary supplement (the FTC is currently reviewing the
entire dietary ad business with an eye toward reducing false claims and
fraud).

The $3 million amount was set after a review of Blue Sutff's books. If
the FTC finds that those finances were misrepresented, the fine will escalate to $15
million. It will also immediately be upped to $4 million if the check on the $3
million fine bounces.

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