YOUR BUSINESS AUTHORITY
Springfield, MO
Attorney General Jay Nixon obtained a court-approved agreement June 14 with the product distributor, Las Vegas-based Gateway Distributors, and Gateway President Richard Bailey, requiring them to pay full restitution to consumers who have filed complaints or file them in the next 180 days.
Nixon and the attorneys general of 19 other states and the District of Columbia reached settlements with Gateway to resolve allegations that the defendants promoted, sold and distributed topically applied hormone-containing cream products that could not be lawfully offered or sold in the United States.
The creams were sold under the names “Y Motion Progesterone Cream” and “Miracle Brand Progesterone Cream,” and typically sold for between $20 and $30, according to a news release from Nixon’s office.
The natural progesterone cream did not have the prior approval of the FDA, was not clinically tested for safety and was not proven to cure, treat or prevent certain diseases and conditions such as osteoporosis and depression, as claimed by the defendants.
Nixon also alleged that the defendants engaged in misleading practices to encourage consumers to purchase their product, such as mailing “Medical Recall Notices.” These notices were mailed directly to consumers and warned them that their health was at risk due to the use of prescription estrogen or progestin that the defendants falsely maintained had been recalled or withdrawn from the market. Such recall notices, Nixon alleged, were really advertisements for the defendants’ product.
“The claims made by the producers of this product that it was safer and more effective than traditional prescription hormone replacement therapies were patently false,” Nixon said in the release.
“I am pleased that, along with the other states, we could reach this agreement that will allow Missouri consumers to receive some money back that they spent due to some misleading and untruthful advertising.”
Under the terms of the agreement, the defendants must provide full restitution to Missouri consumers who complained or who file complaints within 180 days of the settlement.
The defendants also will pay a civil penalty of $100,000 divided among the 19 states and District of Columbia.
Filing a Claim
Missourians who believe they are eligible can contact Nixon’s office to make restitution claims by going online to www.ago.mo.gov and filling out a form under the name “The Right Solution.” All complaints must be received by Dec. 4.
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