The maker of a smartphone breathalyzer violated federal advertising rules when it promised that its products offered “government lab-grade testing” to measure consumers’ blood-alcohol concentration.
The CEO of the company agreed to settle with the Federal Trade Commission, which alleged the firm didn’t have the proper scientific evidence to back up the claims made in its advertising.
Startup funds for the technology venture were generated as a result of the CEO’s appearance on the reality show Shark Tank, a show on ABC that seeks funding from venture capital “sharks.” The CEO drummed up $2 million in funds plus a large group of executives as part of the show. The products in question are pocket-sized devices that connect to users’ phones via the headphone jack. The promise of the products is that they will give users an indication of their blood-alcohol level – presumably before they get behind the wheel of a car or engage in some other activity. Continue reading