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BAN MLM OF HEALTH PRODUCTS
P A Francis | Wednesday, December 10, 2003, 08:00 Hrs  [IST]

Since last five years, some major marketing firms have ventured into multi level marketing of healthcare products in a big way escaping the attention of the country's regulatory authorities. These firms find selling healthcare products with exaggerated and misleading medical claims through MLM route an easy way to make a quick buck. These MLM companies are usually operating amongst the middle class in metros and other urban centres with the promises of huge commissions for selling such products and for helping to expand their network. Last month, one such company based in Chennai, Conybio Healthcare, was nabbed in Gujarat by the state Food and Drug Control Administration. FDCA raided and seized various products of the company claiming to be curing serious diseases such as diabetes, cancer, blood pressure, spondylitis, paralysis, etc from different parts of Gujarat. The company's claim is that these diseases could be cured or controlled through Far Infrared Rays emitted by its products. Some of these products are pillow covers for spondylitis, bed sheets for paralysis, T shirts for high and low blood pressure, palm guards for Parkinson's disease and brassieres for breast cancer. All these products have excessive price tags. The company has no reply to FDCA's letter seeking scientific and clinical explanations for the claims made by it for the products. FDCA' action was in response to a compliant made by the Ahmedabad based Consumer Education and Research Society pointing out the false and misleading claims of the company.

Gujarat FDCA's action was followed up by Maharashtra FDA by raiding the premises of Conybio's stockists in many parts of Mumbai on last Saturday. Whereas, Tamil Nadu Drug Controller's office refused to take action against continued marketing of the products of the company despite an official alert from the Gujarat FDCA weeks ago. T N authorities had taken a stand that the products and services of Conybio do not violate the provisions of Magic Remedies Act, 1954 and Drugs and Cosmetics Rules, 1945. A stand like this is absolutely irresponsible for a drug regulatory authority of a state to take especially when two state authorities have already initiated action against the company. At least TN DC should have discussed the issue with Gujarat FDCA or Maharashtra FDA before concluding that there is no violation of the Acts. From the promotional literature and leaflets of the Conybio, it is abundantly clear that the company is making unproven therapeutic claims for its products which have no marketing approval either from DCGI or from state drug authorities. Regular use of such high priced products without medical supervision could prove to be dangerous to unsuspecting customers. Incidently, Conybio is not the only company which is active in selling healthcare products through MLM. There are other companies as well marketing magnetic beds, herbal formulations, slimming agents and many other products with tall claims. It is important in the public interest that no multi level marketing of products with whatever medical claims should be allowed by the health authorities. A system also needs to be developed to regularly track activities of such dubious companies and launching instant action.

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