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CNN Live At Daybreak

Ads Unfairly Target Elderly

Aired September 10, 2001 - 07:16   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Well, you my have seen the ads that promise much more than they deliver on all sorts of unlikely medical miracles. Well, critics say that these ads unfairly target the elderly and that's the subject of a Senate hearing today on Capitol Hill.

CNN Congressional correspondent Jonathan Karl is here now with more on that -- good morning, Jonathan.

JONATHAN KARL, CNN CORRESPONDENT: Good morning, Kyra.

And some of those ads that the Senate is investigating not only use false promises of miracle cures, but also use scare tactics. I mean I have one here that tells seniors "You are slowly dying, being murdered from within one cell at a time." Or another one warning about brown slime on people's brain neurons.

At the center of this investigation is a familiar name, though. It's somebody that was one of those people granted one of those controversial pardons by President Clinton in the last 24 hours of his presidency.

(BEGIN VIDEOTAPE)

KARL (voice-over): Products marketed with claims of amazing health cures for the elderly are a big business fueled by aggressive advertising appeals, including one that recently landed in the mailbox of none other than the chairman of the Senate Aging Committee.

SEN. JOHN BREAUX (D), LOUISIANA: And I read it and I was getting more and more enthused every time I turned the page. I mean they were solving impotence problems, diabetic problems, cholesterol problems, authorized type of problems for citizens.

KARL: After Senator John Breaux received the so-called "Journal of Longevity," he decided to launch an investigation into its publisher, Glenn Braswell, who runs a dietary supplement conglomerate Breaux says brings in $200 million a year. The marketing material from one of Braswell's products, called GH3, includes testimonials touting the supplement's benefits -- no more headaches, no more pain, improved memory, more energy, fuller hair, smoother skin, relief from depression, arthritis, asthma and better sleep.

BREAUX: Any time you have a multi-billion dollar industry selling products that are advocating a health cure, I question whether the average citizen in this country can make the informed choice about what's good, what's proven, what's going to help and what's going to hurt.

KARL: Breaux's committee has subpoenaed Braswell, demanding he testify about his products' health claims. An attorney for Mr. Braswell said he would have no comment until after the hearing. The former chief financial officer of Braswell's California based country, who was fired by Braswell, will also be at the hearing. CNN obtained a prepared statement by the former executive, Mike O'Neil, who says, "The process that is used to recruit customers is flawed and laden with lies and deception. The products could not possibly deliver on what is promised in the advertising."

Earlier this year, Braswell made news when he received a controversial last minute pardon from President Clinton, clearing his record of a conviction in 1983 for mail fraud related to his marketing of a hair loss product.

(END VIDEOTAPE)

KARL: Senator Breaux says he experts Braswell to respond to that subpoena, to be here at this morning's hearing, but also to take the fifth amendment, refusing to answer any questions, citing his constitutional right against self-incrimination -- Kyra.

PHILLIPS: Jonathan, kind of on a side note here, we do see these advertisements quite a bit for these miracle drugs. Are there any laws on the books that say you have to prove the promises of these items before you can sell them?

KARL: Well, in fact, this whole industry, this $17 billion dietary supplement industry is not regulated by the Food and Drug Administration. They do not need to approve those claims. But there are laws that affect any industry that are done through the Federal Trade Commission that are, that outlaw the idea of fraudulently making claims, making fraudulent claims through the mail, especially is a crime.

But what this hearing is about is not so much whether or not Braswell and his companies or any of these other companies actually broke the law. What John Breaux is saying is he wants to get out there and get the information out there that these claims are being made and they are false so that senators will not go in and buy this stuff and especially because the biggest danger is that somebody would buy this product instead of taking real prescription medicine that may actually help them with their problems.

PHILLIPS: Sure. Buyer beware.

All right, Jonathan Karl, thank you so much.

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