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American Morning

Senate Hearing Getting Underway to Investigate Blustery Claims on Products Targeted to Older Americans

Aired September 10, 2001 - 10:01   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.
COLLEEN MCEDWARDS, CNN ANCHOR: If a sucker is, indeed, born every minute, then many advertisers may well believe that an equal number are sliding into old age. At this hour, a Senate hearing is getting underway to investigate blustery claims on products that are targeted to older Americans. Are they fountains of youth, or fonts of deception?

CNN's congressional correspondent Jonathan Karl is following this story and joins us now with more -- Jonathan.

JONATHAN KARL, CNN CONGRESSIONAL CORRESPONDENT: Well, Colleen, at the center of this investigation, is a $200 million vitamin supplement conglomerate that is run by somebody who received one of those last-minute pardons by Bill Clinton in the last 24 hours in the Clinton administration. The hearing, which is under way, or about to get under way now, the Senate subcommittee on aging, is chaired by John Breaux.

(BEGIN VIDEOTAPE)

KARL (voice-over): Products marketed by 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: I read it, and I was getting more and more enthused every time that 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 the investigation into its publisher. Glenn Braswell, who runs a dietary supplement conglomerate, Breaux says brings in $200 million a year. The marketing materials for 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: Every time that you have a multibillion 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 and what's proved, and what's going to help and what's going to hurt.

KARL: Breaux's committee has subpoenaed Braswell, demanding, he testify about his product's 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 company, 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 -- quote -- "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.

KARL: 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 from his mail fraud related to his marketing of a hair-loss product.

(END VIDEOTAPE)

KARL: Well, the Senate committee also subpoenaed the editor of his Journal of Longevity, but Senate investigators expect that both men to take the Fifth Amendment, refusing to answer question, citing their Fifth Amendment rights after self incrimination -- Colleen. ]

MCEDWARDS: Jonathan Karl, thanks very much.

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