Trudeau v. Federal Trade Commission

384 F. Supp. 2d 281, 2005 U.S. Dist. LEXIS 18003, 2005 WL 2037360
CourtDistrict Court, District of Columbia
DecidedAugust 25, 2005
DocketCIV.A. 05-0400JDB
StatusPublished
Cited by44 cases

This text of 384 F. Supp. 2d 281 (Trudeau v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trudeau v. Federal Trade Commission, 384 F. Supp. 2d 281, 2005 U.S. Dist. LEXIS 18003, 2005 WL 2037360 (D.D.C. 2005).

Opinion

MEMORANDUM OPINION

BATES, District Judge.

Plaintiff Kevin Trudeau is an advocate of alternative health products, a producer of infomercials, and a vocal critic of the defendant Federal Trade Commission (“FTC”). On September 2, 2004, the FTC entered into a settlement agreement with Trudeau that resolved an enforcement action the agency had commenced against him for alleged deceptive trade practices. *283 Several days later, the FTC issued a press release that Trudeau believes mischarac-terizes the settlement agreement. Trudeau then proceeded to bring this action against the FTC, alleging that the press release exceeds the agency’s statutory authority and reflects an effort to retaliate against his criticism of the agency in violation of his First Amendment rights. Trudeau has now filed a motion for a preliminary injunction, and the FTC has filed a motion to dismiss. For the reasons set out below, the Court concludes that Trudeau does not state a viable cause of action as a matter of law. The Court therefore denies Trudeau’s motion for a preliminary injunction, and grants the FTC’s motion to dismiss.

BACKGROUND

Plaintiff Kevin Trudeau is a prominent author and producer of television infomercials, through which he promotes and markets alternative health products to the public. Compl. ¶¶ 1-2. He is also an outspoken critic of the FTC. Id. ¶ 8. For several years, the FTC has been pursuing legal action against Trudeau, alleging that his infomercials mislead consumers about supposed cures for serious diseases (such as cancer and multiple sclerosis) and common conditions (such as hair loss and obesity). This case arises out of a press release the FTC issued in the wake of a settlement of one of those legal proceedings.

In January 1998, the FTC filed a complaint against Trudeau in the United States District Court for the Northern District of Illinois, claiming that he had engaged in the false and deceptive marketing of certain products in violation of the Federal Trade Commission Act (“FTC Act”). As just one example, the complaint alleged that Trudeau had promoted a product known as “Eden’s Secret Nature’s Purifying Product,” which Trudeau claimed would cause significant weight loss; prevent or cure ailments such as arthritis, depression, premenstrual syndrome, immune suppression, fatigue and headaches; cleanse the body of harmful toxins; and purify the body’s blood supply. At the same time that the FTC filed the complaint, it submitted a stipulated order for permanent injunction and final judgment settling all charges against Trudeau. Trudeau had signed and agreed to the terms of this order, which, among other things, prohibited him from making the claims challenged in the complaint with regard to the products described in the complaint or any similar products, and required him to pay $500,000 into a fund for purchasers of the products. The FTC issued a press release announcing the settlement. See Mem. Supp. of FTC’s Mot. to Dismiss (“Def.Mem.”) at 4-5.

In late 2001 and again in August 2002, Trudeau produced and appeared in infomercials for a product called “Coral Calcium Supreme.” 1 Compl. ¶¶ 11-12; Def. Mem. at 6-7. Trudeau also produced infomercials during this period to sell a product called “Biotape.” Def. Mem. at 7. The FTC took two steps in response to these infomercials. First, the FTC filed a motion in June 2003 for an order to show cause why Trudeau should not be held in contempt of the 1998 order. Second, the FTC initiated a new action against Trudeau and several other defendants in the United States District Court for the Noth-ern District of Illinois alleging that the marketing of these products was false and deceptive. According to that complaint, *284 Trudeau marketed Coral Calcium Supreme as an effective treatment for cancer, multiple sclerosis, lupus, other autoimmune diseases, and heart disease and high blood pressure, and alleged that Biotape, a substance similar in appearance to electrical tape, contained “space age mylar” that “connects the broken circuits” in the body that cause pain. Def. Mem. at 7. 2

On July 1, 2003, the parties agreed to, and the court entered, a stipulated preliminary injunction that prohibited Trudeau from making any of the challenged claims for Coral Calcium Supreme and Biotape. Compl. ¶ 15; Def. Mem. at 8. A year later, on June 7, 2004, the FTC moved that Trudeau be held in civil contempt for violating the terms of the preliminary injunction by continuing to promote Coral Calcium Supreme. On June 29, 2004, the court granted the FTC’s motion, and again ordered Trudeau to cease all advertising for Coral Calcium Supreme. Def. Mem. at 8. Several weeks later, the FTC and Trudeau entered into a “stipulated final order for permanent injunction and settlement of claims for monetary relief’ resolving the FTC’s motion to have Trudeau held in contempt of the 1998 order, the FTC’s motion to have Trudeau held in contempt of the 2003 stipulated preliminary injunction, and the 2003 complaint. Compl. ¶ 18, Ex. A. The court entered a final order on September 2, 2004. Id.

The order bars Trudeau “from producing, disseminating, making or assisting others in making any representation in an infomercial aired or played on any television or radio media.” Compl., Ex. A, at 8. The order recognizes an exception to this ban for representations in any television or radio media in connection with the marketing of “any book, newsletter or other informational publication” provided that the publication does not reference any product or service that Trudeau is marketing, does not advertise any product or service related to the content of the publication, and is not sold or marketed in conjunction with a product or service related to the content of the publication. Id. The order also bars Trudeau from manufacturing or marketing “any product containing coral calcium” or any of the products challenged in the 1998 lawsuit, or from making representations regarding the benefits of any product unless the representation is true and not misleading. Id at 10-13. Finally, the order enters “judgment for equitable monetary relief in the amount of two million dollars” against Trudeau and the other defendants. Id. at 16.

The order provides that the United States District Court for the Northern District of Illinois “shall retain jurisdiction of this matter for purposes of construction, modification and enforcement of this Order.” Id. at 29. The order resolves the FTC’s motion to have Trudeau held in contempt of the 1998 order, the FTC’s motion to have Trudeau held in contempt of the 2003 stipulated preliminary injunction, and the 2003 complaint. Id. at 28; Def. Mem. at 8. The order finally provides that the defendants “expressly deny any wrongdoing or liability for any of the matters alleged in the Complaint and the civil contempt action. There have been no findings or admissions of wrongdoing or liability by the Defendants or Relief Defendants other than the finding against Kevin Trudeau for contempt of Part I of the Stipulated Preliminary Injunction, entered by the Court on June 29, 2004.” Id. at 3-4.

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Bluebook (online)
384 F. Supp. 2d 281, 2005 U.S. Dist. LEXIS 18003, 2005 WL 2037360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trudeau-v-federal-trade-commission-dcd-2005.