Many people are asking why doesn't the government act against companies that produce products make false claims.

In an article in Men's Health magazine Dan Rutz interviewed Don McLearn Deputy Associate Commissioner For Public Affairs. In the interview the agency said it has more important concerns than deciding if dead weeds from the Orient will grow hair. "If something that's called a baldness cure is hurting or killing people, we'll take action" says McLearn "We just don't have the resources to go after everyone".

This may explain why some marketer can get away with pretty much anything as long as the product is harmless.

The Federal Trade Commision sometimes takes action in these cases although their "top priorities are claims involving health and safety". The FTC does have one trophy on their shelf. The FTC successfully defeated a company that marketed the "Helsinki Formula" a $50 shampoo that supposedly regrew hair through a combination of vitamin enrichment and scalp cleansing.

The Helsinki Formula

In one case the popularity of the product was its downfall. The Helsinki Formula was marketed between 1985 and 1990 on a 1/2 hour infomercial titled "Discover with Rober Vaughan". Sales of the Helsinki Formula eventually reached $101 Million at $50 a piece. Unfortunately it took until February of 1996 for the lawsuit to reach a conclusion. The FTC reached a settlement of $27 million because there was no scientific evidence that the Helsinki Formula grew hair or stopped hair loss. Unfortunately the perpetrators had already declared bankruptcy.

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While the Helsinki Formula's popularity led to its downfall, there are many smaller operations operating below the radar of the FTC. Let the buyer beware.