Federal Court declares Advanced Medical Institute's advertising 'misleading'
Advertisements themed on "TV's Star amazing CONFESSION!" to erectile dysfunction and premature ejaculation (impotence) featuring Mr Ian Turpie have been declared to be misleading and deceptive by the Federal Court.
The court declared that Advanced Medical Institute Pty Ltd engaged in conduct that was misleading or deceptive in breach of section 52 of the Trade Practices Act 1974 by causing the advertisements to be published in major newspapers* in Australia from 27 March to 18 April 2004 featuring Mr Turpie, and containing representations including:
- that Mr Turpie had undertaken an interview during which he disclosed, in the presence of his wife, that he was losing his sexual potency, and
- AMI nasal delivery system had cured or alleviated Mr Turpie of the effects of impotence or erectile dysfunction.
The court also declared that Mr Philip Somerset, of ColbyCo Media, the advertising agent for AMI, by preparing and causing the advertisements to be published, was knowingly concerned in, or party to, the breach of section 52 of the Act.
Justice Lindgren found that Mr Philip Somerset had been knowingly concerned in AMI's contraventions as he knew that the advertisements representations were not true. The court also ordered both AMI and Mr Somerset to pay the ACCC's costs.
Justice Lindgren declined to make any orders as to injunctions and corrective advertising. He thought that the conduct of the parties had ceased and there was no longer any threat of repetition. He also thought that the offending representations in the advertisements had also ceased to have any influence that might be overcome by corrective advertising.
The ACCC instituted the proceedings on 19 July 2004, against AMI, Mr Somerset and Mr Ian Turpie alleging that the representations in the advertisement featuring Mr Turpie were not true.
Following Mr Turpie's admission of his involvement in the alleged conduct, the ACCC granted him partial immunity in return for his cooperation. On 1 September 2004, the ACCC discontinued legal proceedings against Mr Turpie when the court, by consent, made an injunction restraining Mr Turpie from engaging in the offending conduct or similar conduct in the future and to attend a trade practices compliance seminar.
"This decision is an important warning to all celebrities in that they must ensure that they have used the product or services of a corporation before recommending or approving a corporation's products or services to the public", ACCC Chairman, Mr Graeme Samuel, said today.
"The decision is a warning to advertising agents who play an important role in the preparation and causing the publication of advertisements on behalf of their clients".
A cross-claim made by AMI against Mr Turpie was dismissed.
Media inquiries
- Mr Graeme Samuel, Chairman, (02) 6243 1131, or 0408 335 555
- Ms Lin Enright, Director, Public Relations, (02) 6243 1108, 0414 613 520
General inquiries
Release # MR 183/06
Issued: 17th August 2006
Background
*The advertisements appeared in the Daily Telegraph (Sydney); the Herald Sun (Melbourne); the Weekend Australian; Sunday Mail (Adelaide); Sunday Times (Perth); and Sunday Tasmanian.
Between 27 March and 2 May 2004, AMI published an advertisement which appeared in newspapers* published in all major Australian capital cities having the following headlines.
SPECIAL RELEASE
TV Star's amazing CONFESSION!
"Impotence nearly ruined my life forever"
Entertainer and longtime star of popular TV shows like "The New Price is Right", Ian Turpie speaks exclusively about impotence in a frank and revealing interview. Behind the smiling façade, Ian was struggling with a devastating secret shared by 1 in 3 Australian men - Ian was losing his sexual potency. "Not to be able to perform in the bedroom makes you feel like you've lost your manhood. I even started to make excuses to avoid sex, but deep down I was ashamed." Finally after years of torment, Ian confessed to his wife and long-time friend Jan, "It was the most difficult thing I did" he admitted. After a deluge of tears - from both sides- Ian realised it was time to do something. It was time to take action!
"How I got my sex drive back!"
"I'm one of the very lucky ones", Ian says as he holds Jan's hand and they smile playfully at each other. "I had heard from a friend about the Advanced Medical Institute and their new treatments. It certainly wasn't easy, but I made the call and talked to one of their doctors. I was embarrassed and frightened at first, but they made everything so comfortable and easy"
Ian opted for the new nasal delivery system method because "it's so discreet and simple to use and it worked for me….I mean IT REALLY WORKED!" Clearly, it has made a huge difference to both Ian and Jan and their love life. "I feel like a young bloke again", says Ian and she nods coyly. "I can't believe I waited all that time and went through all the grief. I don't have a problem anymore and I look forward to the night time." Ian's story is not unique. Over 90,000 men develop impotence each year and many of them have found an answer through the Advanced Medical Institute Clinics. Does it give you your life back? The final word goes to Ian; "It made my 60th Birthday and I haven't stopped celebrating yet!"
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