In 1998 Kevin Trudeau was put on trial for misleading infomercials. His infomercials were in violation of Section 5 and 12 of the FTC Act. He was forbidden from creating and hosting infomercials. He was required to pay $500,000 in customer-redress and the court held $500,000 of his funds. If he failed to pay the $500,000 in customer-redress then his $500,000 that was being held would become forfeit. Several years later Kevin Trudeau started an infomercial for a product called “Coral Calcium Supreme”, He described the product as “an effective cure for cancer, heart disease, multiple sclerosis, lupus, and other serious ailments.” (http://www.ftc.gov/system/files/documents/cases/120823_trudeaubrief.pdf) Kevin Trudeau also promoted “Biotape”- which resembled electrical tape- as a cure for severe pain from migraines, …show more content…
45 and 52.” (http://www.ftc.gov/system/files/documents/cases/120823_trudeaubrief.pdf) The district court unified the actions, and Trudeau agreed to the entry of an exploratory ruling that prohibited him from promoting the products as effective cures for cancer or other diseases while the lawsuit was still undecided. (http://www.ftc.gov/system/files/documents/cases/120823_trudeaubrief.pdf) Mr. Trudeau still continued with his advertising campaign, using the claims banned by the exploratory ruling. (http://www.ftc.gov/system/files/documents/cases/120823_trudeaubrief.pdf) In 2004, the district court held Trudeau in contempt for violating the ruling. (http://www.ftc.gov/system/files/documents/cases/120823_trudeaubrief.pdf) “As “an initial interim remedy,” the court ordered petitioner to “cease all promotion, advertising, marketing or distribution of coral calcium,” and it scheduled a hearing to consider “imposition of further remedial measures.” Order, 1:03-cv-03904 Docket entry No. 55 (N.D. Ill. June 29, 2004) (2004 Contempt Order).”