NY Times  June 25, 1999  http://www.nytimes.com/library/tech/99/06/biztech/articles/25fraud.html
 

        Trade Agency Finds Web Slippery
        With Snake Oil
 

        Phony Health Data Abounds on Internet

        By SHERYL GAY STOLBERG

              WASHINGTON -- Snake oil salesmen have been
              around for ages. But they are proliferating in the
        electronic age, according to the Federal Trade
        Commission, which Thursday announced that it had
        identified hundreds of Web sites promoting phony cures
        for 30 different ailments, including AIDS, multiple
        sclerosis, liver disease and cancer.

        The sites are so numerous, the agency said, that it
        cannot possibly take action against all of them. But it
        has reached legal settlements with four Internet
        companies: one that advertised shark cartilage as a cure
        for cancer, another that sold a fatty acid to treat
        arthritis, and two that promoted magnets for various
        diseases.

        "Sites touting unproven remedies for very serious
        diseases -- cancer, heart disease, H.I.V./AIDS and,
        particularly, arthritis -- are absolutely exploding on the
        Web," said Jodie Bernstein, director of the agency's
        Bureau of Consumer Protection.

                              None of the four companies
                              admitted wrongdoing, and
                              the settlements do not
                              preclude them from doing
                              business on the Web; they
                              must only stop making
                              fraudulent claims. However,
                              Melinda Sneed, owner of
                              Arthritis Pain Care Center
                              of Arlington, Tex., one of
                              the four, said she shut her
                              Web site down nearly a year
        ago -- not because of F.T.C. pressure, but because other
        sites were touting the same product, a fatty acid derived
        from beef tallow, for arthritis.

        "By the time they contacted us, we already had the Web
        site down," she said. "It was strictly competition that
        put us out of business."

        The cases announced today stemmed from two "health
        claims surf days," one in 1997 and another in 1998, in
        which agency investigators and public health advocates
        from 25 countries scanned the Internet for fraudulent
        health claims. Each session identified 400 sites
        containing questionable promotions, said Richard
        Cleland, an F.T.C. lawyer handling the probe.

        Cleland said the trade commission did not have the
        resources to conduct full-scale investigations of all the
        sites. The investigations are extremely time-consuming
        and require a comprehensive review of scientific
        literature to prove the agency's contention that a
        company is behaving deceptively. Instead, the agency
        acted against four of the most egregious sites, Cleland
        said, and sent the rest e-mail messages, warning the site
        owners that the Government had paid them an
        electronic visit.

        Some companies reacted incredulously to the warnings,
        Cleland said. One fired back, "If you're from the
        Government, what are you doing here?" Others sent
        stronger messages.

        Two months after the 1997 warnings were sent,
        officials surveyed a representative sample of 64 of the
        sites. Nearly three quarters of them, 72 percent, were
        operating unchanged. About 13 percent had dropped
        their unsubstantiated claims or disappeared from the
        Web; 10 percent had made some changes and 5 percent
        could not be found.

        When the survey was repeated in 1998, the Government
        found that the percentage of sites that had dropped their
        phony claims had more than doubled, to 28 percent.
        Cleland characterized the increase as a "significant
        shift," which he said demonstrated the agency's work
        was having an effect.

        Today's announcement was part of what the trade
        commission has dubbed "Operation Cure All," a
        consumer education campaign to help patients sift
        through the maze of often confusing health information
        available on the World Wide Web.

        Officials from the Department of Health and Human
        Services used the occasion to promote their own Web
        site (www.healthfinder.gov), which they said was
        visited by 400,000 people a month and had links to
        5,000 other sites containing reliable health information.

        "Our message is: It's quality, not quackery," Ms.
        Bernstein said.

        In addition to the Arthritis Pain Care Center, the
        companies that settled with the agency were Body
        Systems Technology, of Casselberry, Fla., which sold
        capsules containing shark cartilage for cancer and
        AIDS; and two selling magnetic therapies, Pain Stops
        Here of Baiting Hollow, N.Y., and Magnetic
        Therapeutic Technologies Inc. of Irving, Tex.

        The lawyer for Body Systems Technology could not be
        reached, and the owner of Pain Stops Here declined
        comment. Jim Richardson, the owner of Magnetic
        Therapeutic Technologies, said he had cooperated with
        the F.T.C. from the outset. Thursday's announcement, he
        said, has been blown out of proportion.

        An estimated 22.3 million adults in the United States
        sought health care information on the Internet last year,
        said Scott Reents, an analyst with Cyber Dialogue, a
        market research company that tracks the Internet. He
        said most people visited the Internet to understand their
        personal ailments; the most oft-visited sites are those
        devoted to specific diseases and specific drugs.

        There are an estimated 15,000 to 17,000 health care
        sites on the Internet. Consumers, Reents said, generally
        feel confident that they can distinguish good information
        from bad -- a confidence many doctors do not share.

        "It is perfectly obvious that some of the junk is junk,"
        said Dr. George D. Lundberg, former editor of The
        Journal of the American Medical Association and now
        editor in chief of Medscape, an Internet health
        information site (www.medscape.com). "But there is a
        lot of in-between stuff that is very difficult to discern."