Consumer Protection Actions
In 2000, the Consumer Justice Center sued QT, Inc., and its owners for false advertising [5]. The suit was settled with a nondisclosure agreement. I provided an expert declaration in the case but do not know the settlement terms. However, it is safe to assume that the settlement agreement included payment and a pledge to stop making most of the claims that the suit challenged. A class-action suit is pending [6], and a false advertising suit is pending against the marketers of a similar device called the Balance Bracelet [7].
In June 2003, the FTC charged QT, Inc, Q-Ray Company, Bio-Metal, Inc., and their principals, Que Te (Andrew) Park and Jung Joo Park, with false advertising, and the federal district court in Chicago issued a temporary restraining order freezing their assets and prohibiting further use of misleading claims [8].
In May 2004, the FTC filed a similar suit against Balance Bracelet marketers Media Maverick, Inc., of San Luis Obispo, California, and its officers Mark Jones and Charles Cody [9]. Among other things, the company's Web site had claimed:
The Balance Bracelet is designed to aid the body in helping itself through electro-polarization. This helps the body return to its normal ionic balance. The Balance Bracelet acts on the body absorbing the static electricity that causes changes in different parts of the body.
In September 2006, the Chicago court sided with the FTC and ordered Que Te Park and his companies to turn over $22.5 million in net profits and provide up to $64.5 million more in refunds to consumers who had bought the bracelets [11]. During the trial, Park testified that he could not define the term "ionization" but picked it because it was simple and easy to remember. The court concluded that his testimony on ionization was "contradictory and full of obfuscation" and that "he is a clever marketer but a poor witness." Park also acknowledged that QT had at least a 25% refund rate from dissatisfied customers (more than 100,000 people) [12]. The FTC has set up a hotline number, 202-326-2063, for consumers with questions about the court’s opinion and order.