Sun Sentinel Palm Beach Edition
Deerfield company agrees to fine
Hearing devices’ quality in question
Global Concepts will pay $500,000 to settle a federal complaint.
A Deerfield Beach company has settled a complaint brought by the Federal Trade Commission, which alleged that the firm deceived consumers by claiming a sound amplifier could help people hear 30 times better.
Global Concepts Limited Inc. — also known as Global TV Concepts — sold nearly 3 million of its MSA 30X devices since 2012, generating $47.2 million in sales, according to an FTC statement.
Without admitting or denying any of the allegations in the FTC complaint, the company agreed in a stipulated order to repay at least $500,000 of a $47.2 million judgment, according to the settlement documents.
Company representatives could not be reached for comment.
As part of the settlement, the company is required to submit truthful financial statements to the commission. The penalty could rise to the full amount if investigators determine the company misrepresents its finances.
The wearable sound amplifiers were sold directly through websites, TV ads, and at stores including CVS, Walgreens and Walmart, federal officials said. A Spanish-language website appealed to Hispanic consumers.
Advertisements showed the hearing devices could help people watch TV at moderate volumes, hear clearly in movie theaters and restaurants, and improve hearing by 30 times despite the lack of necessary scientific evidence to support these claims, the FTC said.
Until the company can scientifically prove these claims, federal officials said the company must stop misleading the public by misrepresenting the product’s effectiveness.
A commission spokesman in Washington would not say how many or what types of complaints led to the agency’s investigation. The complaint and settlement papers were filed in U.S. District Court in Miami.