March 17, 2004
Two promoters of the dietary supplement Seasilver have been ordered to pay a total of $4.5 million and destroy existing inventory worth more than $5 million, as part of a settlement with the Federal Trade Commission.
In June 2003, the FTC and the Food and Drug Administration (FDA) announced a coordinated action against Seasilver USA, Inc. and Americaloe, Inc., their owners, and two of the companies principal distributors.
The FTC alleged that the defendants promoted Seasilver through false claims that it was clinically proven to treat or cure 650 diseases, including cancer and AIDS.
The claims for Seasilver threatened consumers health by encouraging delays and replacements for proven treatments, said Howard Beales, Director of the FTCs Bureau of Consumer Protection. The FTC and FDA are committed to taking aggressive action against false and unsubstantiated claims in the dietary supplement market. Products touted as cure-alls almost always cure nothing.
The complaint alleged that the defendants ads and promotional materials represented that Seasilver treats or cures cancer; enables nine out of ten diabetes patients to stop their insulin medication; and causes rapid, substantial, and permanent weight loss without dieting. The FTC charged that these and other claims are false and unsubstantiated. Seasilver is a liquid dietary supplement purported to contain, among other ingredients, aloe vera, phyto-silver sea vegetables, the herb Pau D-Arco, and cranberry concentrate.
The FTCs complaint named Seasilver USA, Inc. and Americaloe, Inc., their principals, Bela and Jason Berkes, and two Seasilver distributors, Brett Rademacher and David R. Friedman, D.C. The two companies and the Berkes are located in Carlsbad, California; Rademacher and Dr. Friedman are located in Anchorage, Alaska, and Wilmington, North Carolina, respectively.
