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Legal action by the Therapeutic Goods Administration (TGA) against medicinal cannabis company AG Therapeutics that has also landed two major media outlets and a public relations company in hot water has been labelled a “wake-up call” for the industry.
The TGA announced last week that it had launched Federal Court action against AG Therapeutics, which trades as Atlus, and sole director Dr Shimal Jobanputra, for advertising medicinal cannabis in alleged contravention of the Therapeutic Goods Act.
The legal action against AG Therapeutics also includes Mamamia.com.au, News Life Media and Straight Up PR as respondents.
Atlus is alleged to have unlawfully advertised medicinal cannabis on its website and social media pages, including the use of euphemisms, such as “plant medicine", while the website also allegedly promoted the use of medicinal cannabis for the treatment of serious diseases, conditions or disorders.
The TGA has included Mamamia and News Life, through its website Body + Soul, in its Federal Court action for publishing online articles that it alleges had unlawfully advertised medicinal cannabis through a public relations campaign launched by Atlus.
The articles allegedly included several restricted and prohibited representations which are not allowed to be included in advertising for therapeutic goods unless approved by the TGA.
The TGA alleges that the articles also included testimonials and endorsements from individuals who, under the Therapeutic Goods Advertising Code, were prohibited from giving them. This included a nurse in Mamamia’s article and a doctor in News Life’s article.
The Mamamia article also allegedly included a testimonial from a relative of a person involved in the marketing of medicinal cannabis at Atlus.
Professor Anthony Lawler, head of the TGA, has alleged that Atlus, Mamamia and News Life were “warned on multiple occasions in relation to the alleged unlawful advertising of therapeutic goods”.
“Advertising prescription medicines to the public can create an inappropriate demand for these medicines and undermine the relationship between a patient and their treating health practitioner,” says Lawler.
“Appropriate treatment options should be determined by a health professional in consultation with their patient.
“We continue to take enforcement action against the alleged unlawful import, export, supply, manufacture and advertising of therapeutic goods, including medicinal cannabis products.”
The legal action has been described by Phoebe Netto, founder of Sydney-based Pure Public Relations, as a “wake-up call for every PR and advertising agency working in health and wellness” adding that it is “really concerning for our industry”.
“The TGA alleges this was all part of a coordinated PR campaign,” says Netto in a LinkedIn post published today.
The TGA’s Federal Court action references an article published by News Life Media on its Body + Soul website titled “5 health conditions you didn’t know medical cannabis could help with” between 12 August 2022 and 19 September 2023.
Mamamia is alleged to have contravened the Therapeutic Goods Act with an article on its website entitled “(Name deleted) takes CBD oil daily for her anxiety. Here’s what she wants people to know”. That article was published between 9 September 2022 and 9 February 2023.
“These headlines alone should be red flags for any PR professional,” says Netto.
“They're making direct health claims and promoting personal testimonials, both of which the TGA prohibits for Schedule 4 and 8 substances.”
Netto says as the published articles were written by journalists rather than traditional advertising copywriters it is critical to understand that “these rules apply to all marketing and communications”.
“The liability chain is longer than you think,” says Netto.
“This case proves that everyone in the communication chain bears responsibility. The health business, the PR agency, the media outlets, the medical professionals providing quotes, and yes, even influencers and KOLs (key opinion leaders) – they are all involved and responsible.
“Staying compliant is not just about avoiding penalties. It’s about maintaining the trust and credibility that makes our industry work.”
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