MONTU Group, its subsidiary Alternaleaf Pty Ltd, and their common director Christopher Strauch are facing legal action by the Therapeutic Goods Administration (TGA) in the Federal Court of Australia for alleged unlawful advertising on the effectiveness of their medicinal cannabis products.
The TGA claims that the companies used terms like "medical cannabis" and "plant medicine" to promote the Alternaleaf online clinic, where patients could obtain prescription-only medicines after an online consultation process.
During Medicinal Cannabis Awareness Week 2023, Montu Group is alleged to have operated a website advertising medicinal cannabis to the public, promoting its use for treating serious diseases and conditions.
Such representations are prohibited by the TGA unless specific approval is granted.
The advertisements also allegedly implied TGA approval, portrayed medicinal cannabis as "safe, magical or miraculous", and featured endorsements from other health professionals.
The regulatory authority further alleged that Strauch, associated with the companies, facilitated these violations and despite warnings, the companies have continued advertising.
The peak body has sought declarations, pecuniary penalties, and injunctions against Montu, Alternaleaf, and Strauch.
Direct-to-consumer advertising of prescription medicines can lead to inappropriate demand and harmful prescribing, the TGA stated, emphasising the importance of professional consultation in treatment decisions.
The TGA reminded businesses that unlawful advertising of medicinal cannabis carries serious penalties under the law, and it vows to vigorously enforce regulations to deter such practices. JG
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