Bosley Medical Violations

You may have seen their advertisements and thought, "It seems too good to be true". As it turns out, your skepticism is warranted. According to their own figures the Bosley Medical Group (BMG) spent almost a third of its revenue on advertising and promotion to lure patients into its hair restoration clinics. With all of the paid propaganda it can be difficult for a prospective patient to unravel the truth about this organization. In reality Bosley has been the subject of numerous patient complaints, lawsuits, and violations relating to their advertising, medical procedures, and business practices.

1. Medical Board Violations. Larry Lee Bosley has been the subject of administrative and judicial discipline for almost 30 years. His medical license has been put on probation or surrendered in at least 20 states. In 1980 his medical license was suspended for dishonest and harmful advertising. In 1981 the medical board filed to revoke probation against Bosley for acts of dishonesty and corruption in advertising. In 1983 the LA Superior Court entered a judgment against Bosley suspending his license for one year. A Los Angeles D.A.'s letter in connection with the 1996 consumer protection lawsuit declared: "Although Bosley has been given every opportunity to rectify his deceptive business practices so as to comply with the law (and his probationary terms), and despite the risk to his medical certificate, Bosley has persisted in misleading the public." In 2002 the California Medical Board filed an accusation and petition against Larry Lee Bosley to revoke his probation. In 2005 an Administrative Law Judge ordered his license revoked, and then stayed in exchange for probation extension for prescription drug violations and failure to keep adequate patient records. Bosley was ordered to enroll in a course on ethics.

2. False and Misleading Advertising. In 1996 the California Attorney General, the Los Angeles District Attorney's Office and Consumer Protection Division brought forth a consumer protection lawsuit against Bosley Medical. This was prompted by the medical board's extensive investigation of of Larry Lee Bosley and BMG based upon numerous consumer complaints alleging false and misleading advertising and medical malpractice. In The People of the State of California v. Bosley Medical Group, Bosley was fined almost $650,000. The D.A.'s office alleged that BMG engaged in a widescale advertising campaign heavily based on false and misleading representations and found evidence that BMG used retouched and false "after" photographs in its advertisements- hairlines were altered or "airbrushed". The photos that appeared in a brochure as "after procedure" photos were actually taken of a Bosley Medical employee who had never had any procedures done. Additional allegations included misrepresentations of pain, scarring, and results, and non-doctors performing procedures. In 2002 a former Bosley Medical doctor testified that they continued to engaged in illegal conduct and violate laws despite the medical board's probationary terms and stipulations put in place after the People v. Bosley consumer protection lawsuit.

3. Poor Results. Dateline NBC aired an report titled: Splitting Hairs; undercover investigation of Bosley Medical Clinics. The report, which included interviews with former employees and patients, told about botched surgeries and broken promises. Interviews with former Bosley employees revealed that there was a big gap between what Bosley Medical sold and what it delivered.

4. Low-balling Costs and "First Starts". (from court documents) A Consumer Protection Division letter stated that BMG's primary goal was convincing potential customers to get into the surgical chair where they became a First Start. "First starts are very lucrative to BMG because initial work is often unsatisfactory to patients, and they are hooked into long-term financial commitments that often exceed the initially represented costs". Patients have sometimes been told that it will cost tens of thousands of dollars more to treat them. "They tell you that occasionally their diagnosis has to be revised somewhat, and there's 'touch up work' they call it."- explained a former patient. How much touch-up work did they end up doing on him? Seven touch-up surgeries, seven different procedures and $50,000 later. "That was the idea" concurs Dr. Stan Szaslo, a former BMG surgeon. "Get them in. Get them started. Get them hooked."

This material concerns false advertising and misconduct by the Bosley Medical Group, whose website is located at Bosley.com



		AS
	Consumer Alert for First-Time Patients Desperate to generate sales, Bosley continues to produce simplistic and misleading ads to try and get first-time patients into the operating chair. At the same time they choose not to disclose the known risks and pitfalls of surgery or reveal to patients that the wiser choice may be to wait for upcoming medical advancements. Bosley's Medical Director on impending new treatments (hair multiplication): "It is the thing people have been waiting for. There have been so many remedies for hair loss that didn't pan out. This is one that really looks like it is going to happen -- and happen in the next few years". Compromised blood supply... decreased scalp laxity... accelerated hair loss... the need for additional surgeries... these are some side effects from current Bosley procedures, plus they may damage your ability to benefit from other treatments and medical advancements of the future (see the Procedures page). Business Troubles / Office Closures Bosley and Medical Hair Restoration sales continue to decline in fiscal 2010. Cost cutting measures include closing unprofitable offices and outsourcing call centers, which may mean that when a consumer calls with an inquiry they may not even be communicating with a Bosley employee. (see related story below Bosley Sees Huge Drop) Aggressive Marketing Tactics Bosley's financial reports show they are more concerned with converting leads into sales and maximizing revenue than with objectively serving patients. Measures to boost sales and increase customer spending include: introducing alternate hair care solutions to attract clients into their offices (where they can pitch them on surgery), reviewing the incentive program -employee compensation based on the number of surgical procedures sold, and improving the contract (sales closing) ratio.
	No-Refund Policy Before handing your credit card over to a Bosley salesperson (a.k.a. Counselor, Advisor) for a deposit on a procedure you should know about their policies. After canceling surgery ten days in advance a customer was surprised when Bosley refused to return the deposit. After disputing the charge with their credit card company they got this response: "We regret to inform you that we are not able to assist you as the merchant has a no-cancellation and no-refund policy". This policy can discourage patients from backing out of surgery and penalizes those that change their minds or need additional time to make a well-informed decision. (On a related note: Bosley has recently announced that it is running tighter credit checks on its clients due to "poor economic conditions".)
	For more updates please see the bottom of the page.


	Introduction: 10 things you should know about Bosley Medical You may have seen their advertisements and thought, "It seems too good to be true". As it turns out, your skepticism is warranted. According to their own figures the Bosley Medical Group (BMG) spent almost **a third of its revenue on advertising and promotion to lure patients into its hair restoration clinics. With all of the paid propaganda it can be difficult for a prospective patient to unravel the truth about this organization. In reality Bosley has been the subject of numerous patient complaints, lawsuits, and violations relating to their advertising, medical procedures, and business practices. 1. Medical Board Violations. Larry Lee Bosley has been the subject of administrative and judicial discipline for almost 30 years. His medical license has been put on probation or surrendered in at least 20 states. In 1980 his medical license was suspended for dishonest and harmful advertising. In 1981 the medical board filed to revoke probation against Bosley for acts of dishonesty and corruption in advertising. In 1983 the LA Superior Court entered a judgment against Bosley suspending his license for one year. A Los Angeles D.A.'s letter in connection with the 1996 consumer protection lawsuit declared: "Although Bosley has been given every opportunity to rectify his deceptive business practices so as to comply with the law (and his probationary terms), and despite the risk to his medical certificate, Bosley has persisted in misleading the public." In 2002 the California Medical Board filed an accusation and petition against Larry Lee Bosley to revoke his probation. In 2005 an Administrative Law Judge ordered his license revoked, and then stayed in exchange for probation extension for prescription drug violations and failure to keep adequate patient records. Bosley was ordered to enroll in a course on ethics. 2. False and Misleading Advertising.** In 1996 the California Attorney General, the Los Angeles District Attorney's Office and Consumer Protection Division brought forth a consumer protection lawsuit against Bosley Medical. This was prompted by the medical board's extensive investigation of of Larry Lee Bosley and BMG based upon numerous consumer complaints alleging false and misleading advertising and medical malpractice. In The People of the State of California v. Bosley Medical Group, Bosley was fined almost $650,000. The D.A.'s office alleged that BMG engaged in a widescale advertising campaign heavily based on false and misleading representations and found evidence that BMG used retouched and false "after" photographs in its advertisements- hairlines were altered or "airbrushed". The photos that appeared in a brochure as "after procedure" photos were actually taken of a Bosley Medical employee who had never had any procedures done. Additional allegations included misrepresentations of pain, scarring, and results, and non-doctors performing procedures. In 2002 a former Bosley Medical doctor testified that they continued to engaged in illegal conduct and violate laws despite the medical board's probationary terms and stipulations put in place after the People v. Bosley consumer protection lawsuit. 3. Poor Results. Dateline NBC aired an report titled: Splitting Hairs; undercover investigation of Bosley Medical Clinics. The report, which included interviews with former employees and patients, told about botched surgeries and broken promises. Interviews with former Bosley employees revealed that there was a big gap between what Bosley Medical sold and what it delivered. 4. Low-balling Costs and "First Starts". (from court documents) A Consumer Protection Division letter stated that BMG's primary goal was convincing potential customers to get into the surgical chair where they became a First Start. "First starts are very lucrative to BMG because initial work is often unsatisfactory to patients, and they are hooked into long-term financial commitments that often exceed the initially represented costs". Patients have sometimes been told that it will cost tens of thousands of dollars more to treat them. "They tell you that occasionally their diagnosis has to be revised somewhat, and there's 'touch up work' they call it."- explained a former patient. How much touch-up work did they end up doing on him? Seven touch-up surgeries, seven different procedures and $50,000 later. "That was the idea" concurs Dr. Stan Szaslo, a former BMG surgeon. "Get them in. Get them started. Get them hooked." Next: Introduction Part Two

	Updates, continued Bosley Sees Huge Drop in Inquiries and Contracts Revenues for the Hair-Transplant Business recently dropped thirty percent compared with the same period the previous year. For MHR the "percentage of inquiries leading to counseling sessions and further to surgical procedures deteriorated". Among reasons blamed was the "poor conversion rate from inquiry to medical procedure". The second consecutive year of losses for both has meant implementation of cost cutting measures including closure of offices and reduction of employees. Note: The latest financial results for Bosley and MHR can be obtained at www.aderans.co.jp/hd/english/ir/financial/latest.html. Bosley is owned by Japanese wig-maker Aderans.
	Targeting Women Bosley has adjusted their marketing efforts to take advantage of women as another way to sell more surgeries. Unfortunately we have received numerous reports from women saying they are extremely unhappy with their results and are far worse off than they were before even from a cosmetic standpoint (not to mention the physical damage the procedures cause). They say Bosley's staff failed to warn them about side effects including damage to their preexisting hair. Even if you're assured by a Bosley "Counselor" that you're a good candidate for surgery keep in mind this may merely be a sales tactic to sell you a procedure. Most "Counselors" have no formal medical credentials whatsoever and are not qualified to give out medical advice. From a recent WebMD article: "According to experts a very small percentage of women are candidates for hair transplant surgery. About 2% to 5% of women with hair loss will benefit from this type of procedure." - Source: American Hair Loss Association
	Bosley Buys MHR In recent years 9 out of 10 patients have chosen to go to other doctors and medical groups besides Bosley. In an attempt to increase its market share Bosley has made a deal to take over a business called Medical Hair Restoration. MHR's business practices including the use of unlicensed consultants have also been criticized.
	Coming soon: Internet Censorship Bosley and MHR threaten former patients with legal action to remove negative information from Internet web sites and chat rooms. The Bosley "Guarantee" Why it's bad for patients. Getting Scalped Doctors tell patients after it's too late that they can never shave their heads because of scarring due to surgery. A Hostile Environment Bosley employees reveal mistreatment by management, unfair incentive programs, treatment of women, lawsuit against Bosley's CEO John Ohanesian for sexual harassment.

This material concerns false advertising and misconduct by the Bosley Medical Group, whose website is located at Bosley.com