North American Herb & Spice has agreed to pay $2.5 million to settle FTC charges that it made false and unsubstantiated claims that its oregano oil and capsules could prevent or treat colds and flu. The FTC charged that the company and its owner, Judy Kay Gray, specifically claimed its OreganoP73 line of wild, hand-picked Mediterranean oregano could kill germs such as avian bird flu, hepatitis C, Staphylococcus aureus, Helicobacter pylori, mold, parasites, and yeasts. FTC teamed up with National Advertising Division of the Council of Better Business Bureaus on this case.
North American Herb & Spice corporate headquarters issued this statement to INSIDER: "We believe in the merits of our product and have seen firsthand that oregano is a viable nutritional supplement. We are also convinced that with continued research and investigation, oregano will be found to have beneficial properties beyond what is currently recognized."
Source: FTC Online. August 12, 2008.