In a press release issued Tuesday, the Federal Trade Commission (FTC) announced that Teami LLC and its owners have agreed to pay $930,000 in reimbursements to customers who purchased its deceptively advertised products. The agency explains that the defendants claimed, without scientific support, that their Teami 30 Day Detox Pack would aid with weight loss, and that their other teas fight cancer, clear clogged arteries, minimize migraines, treat and prevent flus, and remedy colds.
As previously reported, the agency sued Teami, a tea and skincare products marketer, in March 2020 over the unsubstantiated health claims and after Teami allegedly failed to respond to a April 2018 warning letter stating that “disclosures on Instagram needed to be viewable without consumers having to click a ‘more’ link.” The FTC’s lawsuit sought a permanent injunction and other equitable relief, including the remittance of ill-gotten revenue.
The Tampa, Florida lawsuit also alleged that Teami paid for endorsements from social media influencers to further promote the products. The FTC’s complaint makes mention of posts by influencers such as Cardi B, Katya Elise Henry, Brittany Renner, Adrienne Bailon, and Princess Mae. In conjunction with the filing of the lawsuit, the FTC sent cautionary letters to the ten Instagram endorsers about their inadequate disclosures.
Initially, the FTC proposed a $15.2 million judgment, a number representing the total sales of the challenged products, which will be suspended upon payment of $1 million, based on the defendants’ inability to pay the full judgment. Now, the agency has announced that settlement will be used to compensate more than 20,000 consumers who bought Teami teas, with the average refund amount tallying just over $45.
