Fake Coronavirus Cure Liability ft. MedLife Crisis

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- Thanks to CuriosityStream for keeping Legal Eagle in the air, get 40% off of CuriosityStream and Nebula with the link in the description. At the moment, there is no cure or treatment for COVID-19, but that hasn't stopped some of the world's prominent experts from claiming to have found a cure. Rodney Howard-Browne said. - If they sneeze it, it shoots it down at like 100 miles an hour, it'll neutralize it in a split second. - President Trump said. - A lot of people think that goes away in April with the heat, as the heat comes in. Typically that will go away in April. - Commissioner Culpepper said. - This sounds really goofy, and it do to me too, but it works, so you hold a blow dryer in front of your face and you inhale with your nose, and it kills all the viruses in your nose. - And Kenneth Copeland said. - I execute judgment on you, COVID-19. I call you done! - And President Trump also said. - And then I see the disinfectant, and is there a way we can do something like that? By injection inside or, or almost a cleaning? - Et cetera. Now some of these clips are funny, but they're also infuriating. People who promote snake oil cures to COVID-19 prey on the sick and the vulnerable. A suggestion may seem harmless, but encouraging people to buy or take concoctions that don't actually work can cause lasting damage. You may be wondering whether these people have legal liability for promoting these fake coronavirus cures. You've probably seen them on Facebook from well-intentioned aunts and debated them in the comments section of your local news station, but let's talk about what consequences these people actually face. And oh yes, we are definitely going to talk about the president's question about injecting bleach and taking sunlight internally. (dramatic music) Hey Legal Eagles, it's time to think like a lawyer, because there's a lot of bad information out there, and you may be thinking that when people lie intentionally, they face stiff legal consequences, but it's important to note that in the status quo, the default position is that you don't face liability for free speech, that's what the first amendment is all about, and as we've covered many times on this channel, there generally is no criminal or civil liability for lying, generally speaking. The first amendment exists for a reason, and I personally think that that's a good thing. Generally, you're not going to be sued for making false statements, even potentially false statements about cures and treatments, even if you post them to Facebook or YouTube and your comments are viewed by millions of people, because that's what free speech is about. Free speech covers even bad ideas and false ones, and it's a problem because the less people know about these complicated subjects, the more confident they are, which is why today's video is sponsored by Dunning-Kruger. - If you're like me, you know more about managing critically ill patients than doctors and scientists who dedicated their entire careers to it, and so you should drink Dunning Kruger. It's the only choice for the self-educated gentleman. Dunning Kruger, it'll give you confidence, although I don't think you need any help with that. Cheers. - However there are times when you go beyond that, and especially when you're selling products and you're making specific claims about what this product can and cannot do, there are times when you might face civil or sometimes even criminal liability. So let's talk about things that are clearly criminal. Under 18 USC 1347, it is a crime to commit healthcare fraud regarding providers, and many people promote cures and treatments for COVID-19 online, so when does this cross the line? Well, the DOJ recently filed its first legal action for coronavirus-related fraud under this statute for a website that promised to give people World Health Organization vaccine kits in exchange for a shipping charge of $4.95. Now I can be fairly certain that these allegations give rise to fraud if true, because there isn't a vaccine for COVID-19, so when you try and bilk medical providers out of money for something that isn't true, that's healthcare fraud. And then there's the old-fashioned kind of fraud, where you knowingly lie to people to get their money. There's the potential case of the people who promote garlic and honey as a cure for coronavirus. Some even link to a journal article that purports to provide evidence for staking one's life on the garlic cure. Now the NIH journal article that these people cite to merely finds that garlic extract had inhibitory effects on bronchitis when tested on chicken embryos, which is not the same as working on people, and despite the pseudoscientific basis for their claims, these people generally haven't committed fraud because it's not illegal necessarily to spread false information. But it is illegal to sell pills or cures or products that are harmful or have no real benefit or aren't based on real things when you make those kinds of claims. But I'm just a lawyer, what do I know? Hey Dr. Francis, do honey and garlic actually cure coronavirus? - Honey and garlic have not been shown to be effective in the treatment of coronavirus. They have, however, been shown to be more delicious than placebo in seven out of 10 chicken marinades. - Well even if these people aren't put in jail, hopefully they'll get their just desserts. Now that's fraud, but there are other causes of action that can attach, in certain circumstances like these, like negligent misrepresentation. In some cases, liability doesn't require a knowing falsehood like fraud does. Negligent misrepresentation differs from fraud because it doesn't require a showing of malicious intent to recklessness by the defendant. Instead, it just requires that the defendant's statement be exaggerated or misstate certain facts, and that these misstatements resulted from the defendant's negligence or lack of due diligence. But it also has to occur in a circumstance that gives rise to a duty between two parties. So again, simply going around the world saying misstatements, even based on negligence, doesn't necessarily make you liable for negligent misrepresentation because you have to be in a relationship with the people that are harmed in relying on those statements. Now I think our discussion of negligent misrepresentation should probably start with the most powerful person in the United States, President Trump. Because the president loves to talk about chloroquine and its derivative hydroxychloroquine as a potential miracle cure for COVID-19. The drugs are already approved for use to treat lupus and rheumatoid arthritis, and preliminary research has suggested that the medications could be, and I stress "could be" here, helpful in treating COVID-19. Well the president and Fox News have repeatedly touted one small French study of 20 patients that followed the patients for six days. - It's currently being prescribed in France, where at least one study suggests that it works. - Three of those 20 patients ended up in the ICU, one left the hospital, one couldn't tolerate the medication, and one died. But again, I defer to the experts here. Hey, Dr. Francis, is hydroxychloroquine a miracle cure? - The simple answer is we just don't know. It may be, it may not. It has shown some promise in in vitro studies, meaning in a laboratory, not in humans, but at the time of recording, there are no trials convincingly showing evidence of its efficacy. The French study that got so much attention, which was non-randomized, has many, many problems, chief being the differential after follow-up from the treatment time that you were just hearing about. However, does that mean that we need to just ignore its findings entirely, of course not. Does it provide enough evidence to start treating everybody with hydroxychloroquine? Definitely not. Does it provide enough evidence to want to undertake further research, absolutely, and there are many trials ongoing all over the world. The WHO is launching a huge multicenter, multinational trial looking at hydroxychloroquine, and already in many hospitals all over America and other countries, hydroxychloroquine is being given routinely. Now, that's partly because we have few other options, but it is being used, however, all of that has to be in the context of a clinical trial, otherwise you just don't know what you're doing, you're not going to assess the response. Remember, 99% of people that get this, or more, do not die. So to tease out the effects of any treatment is going to be complicated. We need answers to questions like if it is effective, in whom is it most effective? In the sickest patients in intensive care or is it better for prophylaxis? We're potentially talking about millions of people here, so we need solid evidence. - Yeah, science is hard. But the president said that he would make the drug available almost immediately, and a day later, president Trump tweeted "hydroxychloroquine and azithromycin, taken together, "have a real chance to be one of the biggest "game changers in the history of medicine. "The FDA has moved mountains, thank you." President Trump has said the drugs are safe and that patients have nothing to lose by taking them. - The nice part is it's been around for a long time, so we know that if things don't go as planned, it's not going to kill anybody. - Hey Dr. Francis, do people have nothing to lose by taking a medication that's been around for a while? - Hydroxychloroquine and azithromycin have indeed been around a long time, and so we do know about their side effects, and both of them can cause a side effect called long QT, which is where the electrics of your heart can be affected, increasing your risk of suffering a potentially fatal cardiac arrest. Now we don't see this complication very often in patients taking hydroxychloroquine for conditions like lupus, which is one of its common uses, so that may lead you to conclude that it's safe in all settings, but remember, these patients are being closely monitored by their doctors, but more importantly, they're a totally different patient population to COVID-19. COVID sufferers are much more unwell, they have high rates of cardiac and kidney involvement, which could hugely increase their risk. - So what happens if people rely on these statements and then get sick or die? Well unfortunately, we have the answer. An Arizona man died and his wife was hospitalized after they took chloroquine phosphate in an attempt to avoid getting COVID-19. Although neither had any symptoms of the virus, they'd been listening to president Trump and his allies promote this, quote, cure. - A tremendous breakthrough. - The woman explained that she knows she had some fish tank cleaner and that one of the ingredients was chloroquine. She said. - [Woman] I was in the pantry stacking dog food, and I just saw it sitting in the back shelf and said "hey, isn't that that stuff they're talking about on TV?" Trump kept saying it was, you know, basically, it was pretty much a cure. - And her advice now? - [Woman] Oh my god, don't take anything. Don't believe anything the president says, and his people. Call your doctor. - Now I've covered presidential immunity in my prior video about suing China or the president, so this couple is not going be recovering anything from the president any time soon, but even if that weren't the case, the president refrained from making any unqualifying factual statements about the drug, and of course, he wasn't selling this drug, and he wasn't in a position that gave rise to a duty of care to the American people. Well, at least not a legal position that gives rise to legal liability, and recently there's been a lot of literature coming out that hydroxychloroquine is likely not a miracle cure, and that may lead to many negative health consequences, which is perhaps why president Trump has turned to other potential cures. - Right, and then I see the disinfectant, where it knocks it out in a minute, one minute, and is there a way we can do something like that? By injection inside or, or, almost a cleaning, because you see it gets in the lungs and it does a tremendous number. So it's be interesting to check that, so that you're gonna have to use medical doctors, but it sounds, it sounds interesting to me. - I have a lot of thoughts about this. So many thoughts. Now I'll talk more about those thoughts at the end of this video. Now one of the defenses that people have raised about the president's remarks is that he was only raising the question about injecting bleach, not actually suggesting that people do that. Now believe it or not, that actually parallels a discussion in the legal community about hearsay. Recall that hearsay is an out-of-court statement used to prove the truth of the matter asserted. Key phrases there being statement and the matter asserted. Then the question is a question. Is a question a statement? Is a question actually promoting some sort of assertion? I think most people probably believe that a question can in fact be a statement for purposes of hearsay, because there's often a premise behind that. And with the president's remarks, there is a premise behind that question, the premise being that people should, in fact, consume bleach internally. Don't do that. But as with the president's remarks about hydroxychloroquine liability probably wouldn't attach to the president's remarks about ingesting bleach or internally consuming sunlight in some way. And that result doesn't change whether the person talking about ingesting bleach is a random person off the street or if it's the president of the United States, even if there was, in fact, apparently a spike in people ingesting disinfectants following the president's remarks. Now the obvious point here is that no one should be swallowing fish tank cleaner or injecting bleach, regardless of what the president says. Thinking critically when you're listening to cable news or the president, regardless of who is in the White House, is probably always a good idea. But what else could, in fact, give rise to criminal or civil penalties? Federal mail and wire fraud statutes are interpreted broadly to prescribe, one, causing the use of the mail or wire communications, including email, two, in conjunction with a scheme to intentionally defraud another of money or property. Three, by means of a material deception. Wire and mail fraud are crimes on their own, but they also overlap with a lot of other federal statutes. People get confused that often the same conduct can give rise to a lot of different crimes, based on the various things, and it's the exact same conduct. Essentially, if you use the mail, telephone, or internet to defraud people, you can also be charged with mail and wire fraud, even though it probably constitutes regular fraud in a lot of different contexts. In fact, the New York Times just reported that a doctor in southern California was accused of fraud for selling a cure to coronavirus which turned out to be hydroxychloroquine and azithromycin. But the DOJ is pursuing a lot of COVID-19 fraudsters using these criminal statutes, for example, Keith Middlebrook, an actor with an uncredited appearance in Iron Man 2 and Thor, was arrested by the FBI for soliciting investments into a company he said would market phony COVID-19 medication. Middlebrook promised investors who spent a million dollars returns of 200 to $300 million as a conservative minimum. Middlebrook promoted his scheme on Instagram, where he had 2.4 million followers and was charged with wire fraud. The lesson here, don't take medical advice from non-medical professionals, even if they were in a Marvel movie. And also, sometimes don't trust even the medical professionals who promote a cure that doesn't yet exist. But now is probably a good time to talk about the difference between false advertising and puffery, because a lot of people say that they'll see an ad and they'll think than it's completely fraudulent, but advertisers have a lot of leeway, because again, we generally don't want to prosecute people for just saying ideas or having opinions. And one of the big issues in this context is objective, factual statements which are false compared to subjective, opinion-based statements. People who are selling products have a right to talk them up, and even embellish how great they are. However, the government has the power to stop companies from making claims that are objectively false or factual claims without basis. So let's choose an example at random. One of those random late night infomercials featuring, I don't know, My Pillow. - Hello, I'm Mike Lindell, inventor of My Pillow. - This is a classic example of both potentially false advertising and puffery, the sort of building up of a product that doesn't constitute actionable statements. Puffery consists of general description, such as top quality, best, or America's favorite. So Michael Lindell, creator of My Pillow, and pal of president Trump, has filled many infomercials where he says his pillow will. - [Michael] Ensure you get the best sleep of your life. - Now, this example has nothing to do with the fact that president Trump hosted this guy in the Rose Garden, but the statement is likely just puffery. No one can truly prove that a $40 My Pillow is gonna be better than the pillow that you buy at Big Lots for five dollars. It's a largely subjective statement, but our friend Mike Lindell also ran into problems with consumer protection advocates when he made specific health claims about My Pillow. Lindell's many advertisements asserted that the pillow could help people manage migraines, anxiety, multiple sclerosis, PTSD, restless leg syndrome, acid reflux disease, fibromyalgia, snoring, and many other medical conditions. Hey Dr. Francis, can a pillow cure any of those ailments? - (sighs) No, it cannot cure those ailments. Look, just use a pillow for the same reason everybody else does, companionship. - Yeah, so a consumer protection group sued Lindell for false advertising, and although Lindell claimed no wrongdoing, he settled the case for almost a million dollars and removed the assertions that My Pillow would help with some of those diseases. So what are the most common ways to get sued for false statements and bad products? Well, the most common is probably consumer fraud. People who make false or misleading product claims face legal action from both government authorities and private consumers, and although people on the internet often say this is the kind of thing that should give rise to a class action or we're gonna have a class action to sue China or president Trump, this context in the consumer protection environment is the kind of thing that often gives rise to class action lawsuits, and several companies are in hot water over outlandish claims that they made that they can cure coronavirus. Take natural health expert Sherrill Sellman. She appeared on televangelist Jim Bakker's television show to sell the Silver Solution, a cure for COVID-19, supposedly. - Well let's say it hasn't been tested on this strain of the coronavirus, but it's been tested on other strains of the coronavirus and has been able to eliminate it within 12 hours. - And she made claims that the Silver Solution has been proven by the government that it has the ability to kill every pathogen it has ever been tested on, including SARS and HIV. Jim Bakker then holds up the product and suggests viewers pay $80 to $125 to the show in exchange for a bottle of Silver Solution. The solution is a form of colloidal silver, a liquid supplement that contains very tiny pieces of silver, and not surprising, ingesting silver can because be quite dangerous. Here's a photo of someone who took silver nose droplets for years. Hey Dr. Francis, can silver cure every disease known to man? - No, it won't, but even if it did, I mean, sulfuric acid kills a lot of microbes. I wouldn't recommend taking that either. - Yeah, so this is potentially a very clear-cut case of consumer fraud, and the DOJ in several states have actually sent Bakker cease and desist orders for falsely promoting that Silver Solution can cure, kill, or deactivate coronavirus and boost elderly consumers' immune systems, when there is in fact no vaccine, no pill, or potion or other product that can treat or cure coronavirus. And similarly, state and federal regulators have also moved to stop radio host and noted idiot Alex Jones from selling fake cures, including a toothpaste that contains nano-silver. - The patented nano-silver we have, the Pentagon has come out and documented, and Homeland Security, and said "this stuff kills "the whole SARS corona family at point blank range." Well of course it does, it kills every virus. - And after the inevitable cease and desist letters, Jones issued a disclaimer where he walked back a lot of his claims. However, the videos of these products are still up, so Jones may not be out of hot water, but this is a situation that he finds himself in with some frequency. - Now is the time to get ready and to get prepared with emergency supplies and items that are known to boost your immune system. - Now also there are causes of action for things called unfair business practices, which overlap often with fraud but are not exactly the same. State and federal laws allow a business to be sued for unfair deceptive trade practices. The phrase "unfair trade practice" means any business practice or act that is deceptive, fraudulent, or causes injury to a consumer. So for example, a Florida elected official, of course Florida, Bryant Culpepper claimed that you could kill COVID-19 by aiming your hair dryer up your nose. - So you hold a blow dryer in front of your face and you inhale with your nose and it kills all the viruses in your nose. (sighs) - Hey Dr. Francis, does a hair dryer kill the coronavirus? (sighs defeatedly) Yeah, so incredibly dumb information, because of course, elected official in Florida, but can he be sued? Well, probably not, like I said before, it's not illegal to say something dumb or false, and Culpepper is giving out bad information, but he's not selling a product like a special COVID-19-killing hair dryer. He's just a Floridian. Never change, Florida man, never change. But it can be hard to get the word out on YouTube when we're dealing with sensitive subjects, because videos like these get demonetized, but some people need to be told not to inject themselves with bleach, namely the entire state of Florida, which is why my creator friends and I teamed up to build our own platform where creators don't need to worry about demonetization or the dreaded algorithm. It's called Nebula and we're thrilled to be partnering with CuriosityStream. Nebula is a place where creators can do what we do best, create. It's a place where we can both house our content ad-free and also experiment with original content and new series that probably wouldn't work on YouTube. In fact, if you liked this episode, the version that I put up on Nebula removes this ad entirely and replaces it with an extended discussion of president Trump's bleach comment. I don't want to get off on a rant here, but I am going to anyway. Nebula features lots of YouTube's top educational creators like Half as Interesting, Knowing Better, Polyphonic, Lindsay Ellis, and tons of others. We also get to collaborate in ways that wouldn't work on YouTube, like Tom Scott's amazing game show Money where he puts a bunch of famous YouTubers against each other in psychological experiments where they can either work together or profit individually. It is so, so good. So what does this have to do with CuriosityStream? 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That's $12 a year for both CuriosityStream and Nebula for as long as you are a member, and since we've gotta stay inside anyway, we might as well be soothed by the voice of David Attenborough narrating tales about tiny hummingbirds, or join astronaut Chris Haddonfield on a road trip through the universe in some of the best documentaries on the planet, or just watch Tom Scott torture your favorite YouTubers. So if you click on the link in the description, you'll get both CuriosityStream and Nebula for 40% off, or you can go to CuriosityStream.com/LegalEagle. It's a great way to support this channel and educational content directly for just $12 per year. Just click on the link in the description or go to CuriosityStream.com/LegalEagle. Clicking on the link really helps out this channel. So do you agree with my analysis? Leave your objections in the comments, and check out this playlist over here with all of my other real law reviews on coronavirus-related topics, so click on this playlist and I'll see you in court.
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Channel: LegalEagle
Views: 392,830
Rating: 4.8283153 out of 5
Keywords: Legaleagle, legal eagle, breaking news, case, congress, court case, crime, guilty, jury, latest news, news, not guilty, political, politics, politics news, scotus, supreme court, the trial, trial, Verdict, copyright, law advice, legal analysis, lawyer, attorney, Real lawyer, Real law review, coronavirus, spread coronavirus, covid-19, coronavirus update, coronavirus spread, covid19, pandemic, fake cure, silver, bleach
Id: SnrFSw48KOU
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Length: 23min 30sec (1410 seconds)
Published: Thu Apr 30 2020
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