Analysis

2nd Circ. Saves FTC Oversight Of Red-Hot Memory Aid Sector

Law360 (February 21, 2019, 9:22 PM EST) -- The Second Circuit on Thursday revived a Federal Trade Commission challenge to the memory enhancement claims of a nationally advertised supplement, erasing a serious setback to the FTC’s forceful oversight of a multibillion-dollar market for brainpower products.

In a five-page order, the appeals court nullified a district judge’s surprising dismissal of an FTC lawsuit targeting purported memory aid Prevagen. The product, which contains a protein originally derived from jellyfish, is sold in 40,000 U.S. stores and has been advertised on CNN, Fox News and Sirius XM Radio.

A district judge found that the FTC had only identified “theoretical” concerns about Prevagen’s...

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