FTC Sues Berkeley Nutraceuticals

CINNCINATI--The Federal Trade Commission (FTC) filed a suit in federal court this week against Berkeley Premium Nutraceuticals, accusing the mail order company of false advertising and illegal billing for its dietary supplements. Named as additional defendants in the suit are owner Steve Washak and related companies; Washak’s wife, mother and attorney are all named as relief defendants, because they received money obtained illegally by the principal defendants.

The FTC complaint specifically noted claims used in marketing Berkeley’s Avlimil and Rogisen products. The agency reported Avlimil, which contains sage leaf, ginger root and cayenne pepper, was marketed to improve women’s sexual desire: “arousal, lubrication, ability to climax, strength of climax and overall sexual experience.” Similarly, FTC alleges claims that Rogisen’s mixture of vitamins, minerals and herbs could improve night vision were unsubstantiated. FTC seeks to prohibit the defendants from further violation of the FTC Act.

In its suit, which came five days after four Berkeley officers agreed to plead guilty to conspiracy to commit criminal fraud, FTC asked Senior U.S. District Judge Herman Weber to also oblige the defendants to pay redress for customer credit cards billed without permission. The Cincinnati Better Business Bureau and the Ohio Attorney General’s Office logged thousands of consumer complaints that they were billed by Berkeley for a second cycle of products, despite their intentions not to buy them following a free 30-day trial. FTC noted such unauthorized billing represents violations of the Electronic Fund Transfer Act and the Unordered Merchandise Statue, in addition to failure to disclose material terms of the company’s auto-renewal plan.

“This is a positive development, and we are gratified that the FTC is joining the fight,” said John Murdock, a Cincinnati lawyer representing consumers in class-action suits against Berkeley. “We hope that this development, along with the plea deals filed last week, brings us that much closer to the day when we obtain the best possible legal redress for consumers.”

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines