With healthcare open enrollment underway, the Federal Trade Commission (“FTC”) recently issued warning letters to approximately 25 companies that engage in healthcare-related marketing (“Warning Letters”). While the Warning Letters did not conclude that the companies engaged in healthcare marketing wrongdoing, they reiterated the FTC’s position that it will take action against companies that market or advertise healthcare plans and healthcare-related products that the FTC finds to be false or misleading. Below, we discuss the Warning Letters in detail and healthcare marketing compliance in general.
Warning Letters Are A Shot Across the Bow For Healthcare Marketers
In its press release, the FTC warned marketers of healthcare plans about the importance of not engaging in false advertising to consumers. In the Warning Letters, the FTC stated that it has received numerous consumer complaints demonstrating a pattern of deceptive claims made by healthcare marketers/advertisers, including:
- misrepresenting the benefits associated with a healthcare-related product, including any constituent insurance benefits;
- misrepresenting that a healthcare-related product is major or comprehensive medical health insurance or the equivalent of such;
- misrepresenting the costs of healthcare-related products; and
- falsely claiming that consumers who enroll in a plan will receive free offers, cash rewards, rebates, or other incentives.
In addition, the FTC reminded Warning Letter recipients of: (1) various federal statutes and rules applicable to the marketing of healthcare products; (2) the prohibitions on deceptive practices; (3) unlawful telemarketing practices; and (4) the potential consequences for companies found to have engaged in deceptive or misleading healthcare marketing.
Healthcare Marketing Requires Hiring Experienced Marketing Attorneys
Healthcare-related marketing is fraught with potential landmines. Complying with constantly evolving marketing rules, and the vast labyrinth of other various federal and state regulations is incredibly difficult. With healthcare marketers under constant scrutiny, it is imperative that companies hire attorneys who are experienced with marketing law compliance. The attorneys at Klein Moynihan Turco (“KMT”) have a wealth of experience with advising companies on how to comply with various federal and state marketing laws, rules, and regulations.
If you require assistance with telemarketing, healthcare-related marketing, or marketing law compliance in general, please email us at info@kleinmoynihan.com or call us at (212) 246-0900.
The material contained herein is provided for informational purposes only and is not legal advice nor is it a substitute for seeking legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney.
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