Impotent men spent $150m on unproven "nasal spray"
A COURT this week delivered a hard lesson to a business operator who sold $150m worth of un-proven soft penis cures to vulnerable men.
The Australian Competition and Consumer Commission took Advanced Medical Institute founder Jacov Vaisman and his NRM Corporation Pty Ltd and NRM Trading Pty Ltd to court for engaging in unconscionable conduct.
Federal Court Justice Anthony North initially ruled that Mr Vaisman and the companies "aided and abetted" and were "knowingly concerned in the unconscionable conduct".
At the time, he banned Mr Vaisman from having anything to do with the NRM employees for seven years because he and some of his staff tricked "vulnerable men" with sex performance problems to fork out about $150 million on non-scientifically proven treatments, including a nasal spray.
The Full Court of the Federal Court dismissed the Ukraine-born businessman's argument that Justice North made "errors of fact and law" when deciding the businessman and his companies used "unconscionable" advertising and sales techniques.
"There remains a continuing need, and there remains a factual foundation, for an order restraining the appellants from advertising in a manner which has the potential to exploit the vulnerable," the appeal justices ruled this week.
Mr Vaisman also lost his appeal against the court-ordered ban forcing him to have nothing to do with "training, supervising or counselling or terminating employees, agents or contractors of NRM" until 2023.
"The ACCC brought these proceedings because NRM sought to exploit consumers' vulnerability for its own commercial gain, by targeting vulnerable consumers with unconscionable advertising and sales techniques," ACCC Chairman Rod Sims said.
"This case provides a clear message that businesses must not take advantage of consumers who are vulnerable or disadvantaged.
"Consumer issues in the health and medical sector are a priority for the ACCC.
"We will not hesitate to take appropriate enforcement action where businesses in this sector are exploiting the vulnerability of consumers."
- ARM NEWSDESK