NeuroMetrix, the distributor and marketer of an electrical nerve stimulation device called Quell, and its founder agreed to settle the complaint filed against it by the Federal Trade Commission (FTC).
The Commission sued NeuroMetrix and its Founder and CEO Shai Gozani for allegedly violating certain provisions of the FTC Act for making false and unsubstantiated advertising claims regarding the efficacy of Quell.
According to the FTC, the company and its CEO falsely claimed that the product can relieve chronic or severe pain throughout the body due to osteoarthritis, nerve damage, sciatica, shingles, and fibromyalgia.
Additionally, the Commission alleged that NeuroMetrix deceived consumers by advertising Quell using unreliable scientific evidence and mischaracterizing a marketing survey as a clinical study.
To resolve the allegations of the FTC, NeuMetrix and Gozani agreed to pay $4 million monetary judgment. The defendants also agreed to turn over to the Commission all commercial milestone payments it received under its Development and Services Agreement with GlaxoSmithKline.
