FTC, Georgia Sue Over Fraudulent Stem Cell Treatment Claims

According to a press release issued by the Federal Trade Commission (FTC), as well as an accompanying complaint, the Stem Cell Institute of America and its founders falsely marketed stem cell injections as a therapy for joint pain to seniors.

“These defendants advertised expensive stem cell injections with baseless pain-relief claims, and provided marketing materials and training to chiropractors to do the same,” said Samuel Levine, Acting Director of the FTC’s Bureau of Consumer Protection, in the release.

According to the FTC, the defendants specifically targeted seniors who sought treatment for joint pain, charging $5,000 for each injection. However, the complaint says that the neither the defendants nor the scientific literature have demonstrated that the “treatments are effective in curing, treating, or mitigating any orthopedic condition, disease, or health condition.”

The documents explain that defendant Steven D. Peyroux is a chiropractor who operated a business designed to train fellow chiropractors in how they can expand their own practices. Brent J. Detelich, another defendant, co-founded the Stem Cell Institute of America with Peyroux in 2015, allegedly to train chiropractors in stem cell therapy. The Institute, documents say, provided educational seminars and would provide advertising and marketing materials.

The complaint seeks an injunction against the defendants to prevent future violations of the FTC Act and Georgia’s fair business practices law, as well as restitution and civil penalties.