A PYMNTS Company

Australia: ACCC to check on sex firm claims

 |  October 25, 2015

The competition watchdog has installed an independent auditor to a chain of men’s sexual health clinics to ensure it complies with court orders preventing it taking advantage of clients.

NRM Corporation, which trades as Advanced Medical Institute, will be subject to a wide-ranging audit after the Federal Court declared there was a “high likelihood” that its founder and owner, Ukrainian-born Jacov Vaisman, would not comply with orders previously handed down.

In April, the court found the business had engaged in unconscionable conduct, having exploited customers’ vulnerability for its own commercial gain.

Between 2008 and 2009, AMI brought in more than $130 million selling nasal sprays that claimed to cure male sexual problems, such as impotence, by using aggressive sales tactics ­designed to frighten prospective customers. As part of the original orders, restrictions were placed on AMI’s operations.

Full content: The Australian

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