Reference no: EM132303653

Joe Ridgeway manufactures and sells an energy drink called “The 300 Minutes Energy Drink”. He wants to start running an advertising claim stating that “300 Minutes is proven to be more effective at making people feel energized than The Five Hour Energy Drink”. Five Hour is 300 Minutes’ leading competitor in the energy drink market. Joe knows from his next door neighbor, a lawyer, that he needs a clinical study to support the advertising claim. He tells you he intends to do the following. First, he will hire 60 people and, at the inception of the study, hand each of them a check for $60 and say “On behalf of Ridgeway, Inc., maker of 300 Minutes, thank you for participating”. Second, he will send the 30 healthiest and fittest looking people to Room A, and the rest to Room B. Third, he will give each of the Room A participants the standard, labelled bottle of 300 Minute that can be bought in stores and each of the Room B participants the standard, labelled bottle of Five Hour that can be bought in stores. Fourth, he will have a company representative in Room A watch the Room A participants drink their bottles of 300 Minute and then ask each of them if he or she feels energized. Another representative will do the same in Room B with the Room B participants. Fifth, Joe will add up the results from each room and compare them. If more Room A participants feel energized than Room B participants, he will type up the study results and start making the claim, even if the margin of difference between Room A and Room B is one participant. What are the advertising law implications of what Joe wants to do and what advice would you give him on his proposed clinical study?