$50 Million Awarded to Avacor Victims

In 1989, the FDA banned the marketing of all over-the-counter hair growth products, except those approved under the agency’s New Drug Application process. To date only minoxidil (Rogaine) and finasteride (Propecia) have been approved through this process.

Interestingly enough, the ban hasn’t stopped many in the hair loss industry from blatantly violating FDA regulations until now.

Late last month an Alameda County, Ca. jury returned a $50 million verdict in a class action lawsuit filed on behalf of 150,000 Californians who believed to be defrauded by the makers and marketers of Avacor.

PDF Verdict Form

Since 2002 Avacor has been under scrutiny by The National Advertising Division (NDA)  of The Better Business Bureau, the FTC and The FDA (pdf), yet they have still thrived because of the inherent vulnerably of those suffering with hair loss.

California Supreme Court Judge Robert B. Freedman summed it up well when he wrote in the decision:

“The court can and does take judicial notice of the fact that enormous sums of money are spent on personal care and grooming products. One needs no more evidence that to observe the amount of shelf space and media advertising devoted to marketing such products. Into this lucrative market stepped a band of hucksters, defendants, to prey on the vulnerabilities of human nature and employing a colossal array of false, deceptive and fraudulent techniques cynically collected millions of dollars from deceived California consumers.”

Simple rule of thumb, before you consider purchasing any product or service to treat your hair loss, make sure it’s legitimately FDA approved and recommended by The American Hair Loss Association.

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Response by Avacor Representative, Ross Katz:

“As a direct result of the class action lawsuit, Thomas v. Global Vision, Global Vision, the company that sold the Avacor® brand previously, was forced into bankruptcy. At the end of 2008, Avacor Products LLC purchased the Avacor® brand free of any legal encumbrances placed upon it by Global Vision’s mismanagement. The new Avacor Products LLC has both new owners and managers, who have updated their ANDA (http://www.accessdata.fda.gov/scripts/cder/ob/docs/obdetail.cfm?Appl_No=075619&TABLE1=OB_OTC) with the FDA, legally allowing them to continue to sell the Avacor Physicians Formulation®. Avacor Products LLC has also updated the packaging for their products, and revamped their website. Of late, the company has directed efforts toward repairing its brand image (both online and off) and is working hard to repair relationships with customers. Still to this day, the Avacor’s Physicians Formulation® contains one of only two FDA approved treatments for hair loss – Minoxidil (the other being Finasteride), and the only FDA approved hair loss treatment for women.“