Feds go hard on erection doctors
The erectile dysfunction company renowned for its Bonk Longer advertising billboards has been ordered to compensate patients after a damning judgment by the Federal Court.
Justice Anthony North found the Advanced Medical Institute engaged in unconscionable conduct by putting profits ahead of the interests of its patients.
He said there was no medical proof the highly priced nasal spray and oral strips peddled by the AMI were effective in the treatment of premature ejaculation or erectile dysfunction.
AMI's holding companies were put into administration in December 2010 when the Australian Competition and Consumer Commission launched legal action against the group and its founder, Jacov Vaisman.
However, the AMI business was later sold to another Vaisman company, NRM Corporation, and continues to operate.
AMI turned over nearly $150 million between 2008 and 2010, charging up to $4500 for its treatments, which were usually prescribed over the phone.
Justice North said the company used high-pressure selling techniques which preyed on "the fears and anxieties" of men seeking treatment for ED and PE.
It included "telling men that their penis would shrink and (that) they would suffer psychological impotence if they did not agree to the treatment".
Patients were also told they would receive refunds if the treatments was unsuccessful, but in fact they were required to try all treatment options, including a self-injection to the base of the penis, to qualify.
The court banned Dr Vaisman from being chief executive of AMI for seven years and ordered AMI to compensate 14 patients treated in 2011. It also ordered AMI to conduct consultations face to face or by video link.
