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Seasilver Marketers Ignore FTC Fine, Penalized $120MSeasilver Marketers Ignore FTC Fine, Penalized $120M

July 24, 2006

1 Min Read
Seasilver Marketers Ignore FTC Fine, Penalized $120M

WASHINGTON--Two companies and their owners have triggered a $120 million avalanche clause for failing to pay $3 million in consumer redress, as mandated by a previous settlement with the Federal Trade Commission (FTC) over false and misleading marketing claims for Seasilver. While two distributors of Seasilver paid their separate court-ordered fines of $1 million and $0.5 million, Seasilver USA Inc. and Americaloe Inc., and their owners, Bela Berkes and Jason Berkes, have paid less than $1 million of the consumer redress they agreed to pay.

The defendants had claimed the product, a combination of aloe vera, phyto-silver sea vegetables, herbs, cranberry concentrate and other ingredients, was clinically proven to treat or cure 650 diseases, including cancer and AIDS, and caused rapid, substantial and permanent weight loss without dieting. A settlement with FTC was reached in March 2004, requiring the defendants to pay $3 million in consumer redress and including a suspended judgment of $120 million, which would become due if the defendants misrepresented their financial status, or did not make the payments as they agreed. Consequently, on June 20, 2006, the court found the Seasilver marketers are now jointly and severally liable to pay the full amount of $119,237,000, plus interest.

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