Stem Cell Marketers Sued for Misleading Health Claims
/By Pat Anson, PNN Editor
The U.S. Federal Trade Commission and the Georgia Attorney General are suing the co-founders of the Stem Cell Institute of America for marketing misleading health claims to seniors about stem cell therapy.
The agencies’ 40-page complaint against chiropractors Steven Peyroux and Brent Detelich alleges they promoted stem cell treatments nationwide through deceptive marketing schemes with other chiropractors and healthcare providers.
The promotions claimed that stem cell injections were superior to surgery, steroids and pain medication in treating arthritis, joint pain and other orthopedic conditions. The injections cost as much as $5,000 per joint, with patients often getting multiple injections.
“These defendants advertised expensive stem cell injections with baseless pain-relief claims, and provided marketing materials and training to chiropractors to do the same,” Samuel Levine, Acting Director of the FTC Bureau of Consumer Protection, said in a statement.
“At best, the use of unproven products or therapies can cost consumers thousands of dollars without affording them any results,” said Georgia Attorney General Chris Carr. “At worst, it can be harmful to their health. Our office will continue to hold accountable businesses that make unsubstantiated claims and violate the law – especially those that target our older or at-risk adults.”
Peyroux and Detelich founded the Georgia-based Stem Cell Institute of America (SCIA) in 2015 and operated under various business names, including Regenerative Medicine Institute of America, Superior Healthcare and Physicians Business Solutions.
According to the Georgia Attorney General’s Office, the companies “generated millions of dollars in revenue” by advising chiropractors around the country how to add stem cell therapy to their practices. It also trained them how to recruit new patients, and provided marketing and advertising material.
One newspaper ad invited patients to attend a free seminar where they could learn how stem cell therapy “can change your life” and stop their joint pain “without costly and painful surgery.”
SCIA also had its own YouTube channel, where videos pitched stem cells as “one of the most cutting-edge noninvasive and nonsurgical treatments for joint and arthritis pain.”
The complaint alleges that SCIA conducted no clinical testing to demonstrate its advertised claims and that no scientific studies supported them. The complaint also alleges the defendants violated Georgia’s Fair Business Practices Act related to the distribution of false or misleading information.
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SCIA, Regenerative Medicine Institute of America, and Superior Healthcare filed for Chapter 7 bankruptcy protection in 2019.
Physicians Business Solutions continues to operate and recently hosted a training seminar for chiropractors in Atlanta. It is scheduled to hold another seminar in October at the Trump Hotel in Chicago. The company did not respond to a request for comment.
