Question: Florida - based Teami, LLC , and its co - owners Adi Halevy and Yogev Malul sell Teami - branded teas, including the Teami 3
Floridabased Teami, LLC and its coowners Adi Halevy and Yogev Malul sell Teamibranded teas, including the Teami Day Detox Pack, and Teamibranded skincare products. The Federal Trade Commission FTC alleges that Teami and its coowners made more than $ million by deceptively claiming their array of teas could cause rapid and substantial weight loss, "fight against cancerous cells," decrease migraines, unclog arteries, and prevent colds and flu.
The company did so by advertising primarily through a massive socialmedia campaign, recruiting and paying celebrities with millions of followerslike Cardi B and Jordin Sparksto endorse their products on Instagram. Any disclosure regarding the influencer's connection to Teami wasn't visible in the Instagram posts unless the consumer clicked "more."
To settle the charges, Teami agreed to pay $ million in penalties and must remove any deceptive weight loss and health claims in its marketing. It must also disclose any material connection between the entity and its endorsers clearly and conspicuously.
The FTC penalties imposed on Teami and its founders are:
restrictions on commercial speech that do not violate the First Amendment.
contentneutral restrictions on Teami's speech, subject to intermediate scrutiny.
viewpointbased restrictions on Teami's speech and presumptively unconstitutional.
contentbased restrictions on Teami's speech, subject to strict scrutiny.
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