The encyclopedia · Advertising & PR · Marketing decision · 2020
Teami's detox teas promised weight loss and more — a $15.2M FTC judgment followed
March 2020: Teami settled FTC charges over health claims and influencer posts that hid payments behind Instagram's 'more' button. Judgment: $15.2M.
Teami · 2020-03
What happened
Teami built its tea and skincare sales on Instagram endorsements from celebrities and influencers — Cardi B, Jordin Sparks, Alexa PenaVega among them — posting about products like the Teami 30 Day Detox Pack. The FTC alleged Teami claimed without reliable scientific evidence that its teas aided weight loss, fought cancer, cleared clogged arteries, decreased migraines, and treated or prevented colds and flu.
The disclosure failures were structural. Payment disclosures sat behind Instagram's 'more' link, invisible unless a follower tapped it, and the practice continued after an April 2018 FTC warning letter told the company disclosures had to be visible without clicking anything. On 6 March 2020 the FTC announced the settlement: a $15.2 million judgment — the entire sales of the challenged products — suspended to $1 million paid, on the company's inability to pay the rest.
FTC consumer-protection director Andrew Smith said companies 'need to back up health claims with credible science and ensure influencers prominently disclose that they're getting paid to promote a product'. The settlement, with the warning letters sent to the endorsing influencers alongside it, became the reference case for how the FTC polices paid posts.
Why it happened
- The claims outran the science: detox, weight-loss and disease-fighting promises sold the tea, and none had reliable evidence behind them.
- Disclosure designed to be missed — hidden behind a 'more' link — was treated as no disclosure at all, and it continued after a direct warning from the regulator.
- Celebrity reach multiplied both the sales and the liability: the judgment was measured as the entire sales of the challenged products.
The lesson
A health claim without science is not copy, it is the fine — and a disclosure the viewer must click to find is no disclosure at all.
Aftermath
Teami was barred from the challenged claims and required to make influencer relationships clear and conspicuous. The FTC's parallel warning letters to influencers made the settlement the standard citation in disclosure compliance, ahead of the agency's updated endorsement guides.
Sources
- FTC press release — Tea Marketer Misled Consumers, Didn't Adequately Disclose Payments to Well-Known Influencers
- FTC legal library — Teami, LLC case page
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