Roca Labs

Unilocal and two other online review websites are piling on to a lawsuit the Federal Trade Commission has filed against a Sarasota weight loss company.
Filed in September, the FTC’s case against Roca Labs Inc., Roca Labs Nutraceutical USA Inc. and their principals claims, among other things, that the marketers of dietary and weight-​loss supplements have not only deceived consumers about the efficacy of their products, but are also threatening to enforce a «gag clause» to stop buyers from posting negative reviews online.
On Thursday morning, Judge Mary Scriven in Tampa will hold a show cause hearing and could potentially decide whether the use of a non-​disparagement provision is unfair under the FTC Act, and will determine how the case moves forward.
The review websites’ involvement adds a new twist to the allegations against Roca, bringing First Amendment rights into a case that wasn’t originally about that.
«Thus, the decision here may have far-​reaching application in Federal and state courts throughout the country,» the amicus brief states.
The FTC is seeking injunctive and other equitable relief.
«Defendants have warned purchasers, through package inserts included in product shipments, that they agreed not to write any negative reviews about the defendants or their products and would owe defendants hundreds of dollars should they do so,» the FTC’s filing states.
Roca has admitted to requiring customers to agree not to publicly disparage the company, but said the FTC is «aggressively targeting Roca Labs in virtually every aspect of the company’s online advertising and marketing,» a court filing states.
Unilocal (NYSE: Unilocal) is a consumer review website; AVVO is an online lawyer rating and review system; and Mediolex Ltd., dba Complaints Board, is an online review website.
All are being represented by Marc Randazza, a well-​known attorney from the Randazza Legal Group in Las Vegas that represents clients on a variety of First Amendment issues, according to its website. The three online reviewers «have an interest in encouraging the free exchange of consumer information, positive and negative,» the amicus brief states.

From the Washington Post
Ever been punished for leaving a negative review? The FTC is on your side.
By Brian Fung September 28
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If you’ve ever left a negative review of a company online, you might be pleased to hear that federal regulators have your back.
In a lawsuit announced Monday, the Federal Trade Commission accused a Florida-​based firm not only of selling weight-​loss supplements that didn’t work as advertised, but also of improperly going after customers who complained about the faulty products online.
The company in question, Roca Labs, said that its nutritional powder could help users lose so much weight that it could be considered an alternative to gastric bypass surgery, according to the federal complaint. It also allegedly claimed that users could lose 21 pounds in as little as a month, and that it would work substantially on 90 percent of people.
But what positive recommendations you might find out there may have been paid for by Roca Labs itself. The company offered to cover half the price of its product in exchange for a glowing testimonial, according to the FTC.
Internet forums filled with negative feedback seem to paint a different picture of the company than the one Roca Labs was paying for. One consumer claimed she started feeling ill after taking the powder. Another called it a «lie» and that it landed the user in the hospital.
Unbeknownst to many, according to the FTC, Roca Labs had a «gag clause» in its fine print that allowed it to sue, and threaten to sue, people who criticized the company. Roca Labs allegedly included a copy of these terms in every shipment to consumers, and punished «violators» by making them pay hundreds of dollars.
The tactic ultimately made it harder for consumers to determine if they should buy the product, the FTC says, and the suppression of criticism almost undoubtedly propped up Roca Lab’s sales. Should the FTC win its suit, it’d be a blow to the use of gag clauses by companies that fear the consequences of open criticism.
The FTC suit is the latest move amid a wider government crackdown. Earlier this month, a number of senators introduced legislation that would ban their usage in company legalese. It joins a companion bill in the House that was introduced in April.