LANSING, Mich. (WOOD) — The Michigan Attorney General’s Office says two related Rockford-area businesses have agreed to stop marketing and selling phony products that claimed to help protect people from COVID-19.
The AG says Frequency Apps Corp. and Biores Technologies signed an assurance of voluntary compliance, which allows disputes to be settled without ligation, and the companies agreed not to sell the “Coronavirus Defender” patch.
The companies claimed it never sold any of the patches. But under the agreement, the companies must pay the state $1,000 for its enforcement efforts by May 1.
In addition, the companies will have to pay $1,000 for any consumer who produces proof by Dec. 31 that they purchased one of the patches. Half will go to the consumer and the other half will go to the state, the AG said.
Under the agreement, the companies will stop engaging in any deceptive business practices, including offering for sale any product purportedly for the prevention or treatment of COVID-19.
The agreement comes after a consumer filed a complaint and the AG sent the companies a cease and desist letter in March.
Officials say the companies sold patches that claimed to “help aid the immune system to defend itself against exposure to the virus” and “can help lessen the effect of the virus if you already have it,” the state said.
The cost of the patch was $49.99 and the company said consumers would get a 30-day supply for free when they purchased a 45-day supply of any patch sold by the company.
The state says the companies most likely violated the Michigan Consumer Protection Act.
The Attorney General’s office has received 3,582 price-gouging complaints as of 7 a.m. Wednesday.