Shaky case against POM Wonderful?

Lawyers will be having a field day in the Federal Trade Commission complaint against the makers of the popular pomegranate juice. Seems that the issue is not so much whether the stuff is good for you, but to what extent it reduces the risk of heart disease, prostate cancer and impotence. In a complaint released on Monday, the commission said that POM was making false and unsubstantiated claims about the power of the pomegranate juice. But it gets messy - two weeks ago POM filed suit against the FTC, claiming that the agency has created a new standard for evaluating deceptive advertising - and that the standard tramples the company's free speech rights. From the National Law Journal:

"[POM] has spent millions establishing a brand identity that is synonymous with good health," POM's lawyers said in court papers. "The FTC, by its acts, is injuring POM's goodwill and brand identification with consumers as the juice company that focuses on science and good health." The FTC's rules have "disrupted POM's present and ongoing business," according to attorneys for the juice maker, and impose "significant new burdens and risks on advertisers." POM's lawyers said the FTC had never before required prior approval of advertising statements. The attorneys said the FTC is encroaching on the authority controlled by the FDA. The new rules, the lawyers argue, substantially change the legal definition of deceptive advertising.

Certainly, there is evidence that pomegranate juice is a plus. A UCLA study released several years back found that drinking an eight-ounce glass each day increased by nearly four times the period during which PSA levels in men treated for prostate cancer remained stable (h/t John Rabe). From press release:

The study involved 50 men who had undergone surgery or radiation but quickly experienced increases in prostate-specific antigen or PSA, a biomarker that indicates the presence of cancer. UCLA researchers measured "doubling time," how long it takes for PSA levels to double, a signal that the cancer is progressing, said Dr. Allan Pantuck, an associate professor of urology, a Jonsson Cancer Center researcher and lead author of the study.

POM is a unit of the privately held Roll International, which is owned by Lynda and Stewart Resnick. From the NYT:

The Resnicks said Monday that they planned to contest the charges. Their company has sued the commission in federal district court, claiming that the commission had exceeded its authority and was trampling Pom's First Amendment rights. "We stand behind the vast body of scientific research documenting the healthy properties of Wonderful variety pomegranate," the company said Monday in a statement. "Our research is unprecedented among food and beverage companies, and we take pride in having initiated a program of modern scientific research to investigate the health benefits of this ancient and revered fruit."

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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