Posted by John on June 28, 2003 at 16:17:17:
All of us need to keep informed on how the FTC and the FDA perceive our industry. All companies are candidates for problems if distributors get out of line in claims. Here is the latest update on SeaSilver. I post this without any prejudice but only for informational purposes. John
Brett Rademacher
> >MySeaWealth Website Administrator
> >
> >To: Seasilver Independent Business Associates and
> >Customers
> >Re: URGENT-Further Notice re: FTC and FDA Legal Actions
> >
> >As you should already be aware, in separate actions,
> >both the Federal Trade Commission ("FTC") and the Food
> >& Drug Administration ("FDA") have initiated legal
> >action against Seasilver. The FTC Complaint claims that
> >Seasilver and its distributors have made improper and
> >unsubstantiated health claims in advertising and
> >promotion of the product. The FDA claims that the
> >product is not properly labeled as to the ingredients
> >of the product and its health benefits.
> >
> >In order to deal with both these matters, the Company
> >has curtailed most operations and is not presently
> >marketing, selling or shipping product. The Company and
> >its counsel are working with both agencies to comply
> >with the court's orders and to secure a resolution of
> >the government's concerns. The Company hopes to resume
> >operations in the near future.
> >
> >FTC Action
> >On June 13, 2003, the FTC filed a Complaint in the
> >United States District Court in Nevada against
> >Seasilver USA, Inc. and Americaloe, and certain of
> >their corporate officers. The suit claims that
> >Seasilver has made false claims about the benefits of
> >its products in marketing materials and on product
> >labels. The FTC also applied for and was granted a
> >Temporary Restraining Order ("TRO"), which prohibits
> >Seasilver from selling or distributing its product
> >without significant changes to the labeling and
> >marketing materials.
> >
> >As part of the TRO, the court has appointed Thomas W.
> >McNamara as Temporary Receiver for both companies. The
> >Temporary Receiver is a neutral party who is now in
> >charge of day to day operations. The TRO is
> >specifically directed at Seasilver and its employees
> >and distributors and others in active participation
> >with the Company. It prohibits the Company and its
> >distributors from making unsubstantiated health claims
> >about the products.
> >
> >FDA Action
> >On Wednesday June 18, 2003, representatives of the Food
> >and Drug Administration ("FDA") and the U.S. Marshal's
> >office completed a court-ordered seizure of the
> >Seasilver product located at the Carlsbad facility. A
> >similar seizure was made in Ohio on June 26. These
> >seizures are based on the FDA's claim that the product
> >is mis-branded. No claims are made by the FDA as to the
> >product itself, just as to the labeling. The Company
> >may not and will not sell or ship any of its current
> >products until it resolves these labeling issues with
> >the FDA.
> >
> >Customers - Do Not Discontinue Or Reduce Any
> >Prescription Medications Without First Consulting Your
> >Physician.
> >Previously Seasilver and certain of its distributors
> >have made unsubstantiated claims regarding the health
> >benefits of Seasilver. You may have seen claims that
> >the product cures cancer, diabetes, and host of other
> >diseases and other serious conditions, and that it
> >results in significant and permanent weight loss
> >without dieting. No clinical studies support such
> >claims. In fact, medical experts state that such claims
> >are highly implausible and likely false. If you are
> >under a physicians care it is very important that you
> >not discontinue or reduce any prescription medication
> >without consulting you physician.
> >
> >Distributors - You Must Cease and Desist from Making
> >any Health Claims on the Product
> >Effective immediately, you must cease and desist from
> >making any false or misleading statements or
> >representations in connection with the marketing,
> >distribution or sale of any Seasilver product,
> >specially including but not limited to representations
> >that Seasilver cures or treats cancer, enables 9 of 10
> >diabetes patients to stop insulin, leads to weight loss
> >without dieting, treats or cures typhoid or anthrax, is
> >proven to be non-toxin, and/or provides any other
> >health benefits without competent and reliable
> >scientific evidence.
> >
> >Distributors - You Must Cease any Use of the Current
> >Seasilver Product Brochures
> >In order to comply with the TRO, we are also today
> >recalling all packaging and labeling including all
> >descriptive materials and brochures, which contain any
> >representations as to the health benefits of Seasilver.
> >This specially includes the current Seasilver brochure
> >entitled Seasilver USA/The Leader in Foundational
> >Health. If you have copies of that brochure, please do
> >not use them for any purpose, and immediately return
> >them to the Company. If you have any copies of a
> >booklet entitled "Journey into the World of
> >Foundational Health", you must return them immediately.
> >
> >Distributors - You Must Terminate Any Other Marketing
> >Activities That are Not Approved by The Company
> >You must also immediately terminate any marketing
> >activities of any kind which use materials which have
> >not been approved by the Company. If you have any such
> >materials in inventory, you must destroy them
> >immediately. Please refer to the Policies & Procedures
> >adopted by Seasilver. Paragraphs 15 and 17 expressly
> >prohibit any independent Business Associate from
> >advertising or offering for sale Seasilver Dietary
> >Supplement in any way other than through the
> >advertising and promotional materials made available by
> >the Company, or except as otherwise expressly approved
> >and authorized by the Company in writing before any
> >dissemination, publication or display. Failure to abide
> >by these procedures will result in your termination as
> >a distributor.
> >
> >Distributors - You Must Immediately Alert all
> >Distributors and Customers in Your Down line of these
> >Restrictions
> >If you are a distributor with a downline, you must
> >immediately transmit a copy of this Notice to all
> >members of your downline and immediately advise them to
> >cease all marketing efforts for the product. You must
> >do so immediately by e-mail or fax depending on how you
> >normally communicate with them.
> >
> >Distributors - You Must Carefully Read the TRO
> >Immediately and Comply with all Applicable Provisions
> >A copy of the TRO is available in pdf form on the
> >Temporary Receiver's website at
> >http://receiver.seasilver.com. All Independent Business
> >Associates must read it carefully and take immediate
> >steps to insure complete compliance by them and their
> >downline.
> >
> >Communication with the Company
> >Due to the curtailment of operations, it will be
> >difficult for a representative of the Company to
> >respond to questions and concerns from individual
> >distributors or customers. Please refer to the
> >Seasilver.com website for updates and additional
> >information.
> >http://www.seasilver.com/corp/index.html
> >
> >You may send e-mail questions to the Temporary Receiver
> >at info@receiver.seasilver.com
> >
> >The Future
> >The Temporary Receiver is working with the Company and
> >its attorneys to achieve a resolution of these claims
> >by the FTC and FDA so that the Company can resume
> >operations with labeling and marketing materials which
> >are in compliance with the court order and all
> >government regulations. The Company's employees are
> >fully cooperating with the Temporary Receiver in this
> >effort. You may refer to the Seasilver.com website for
> >updates.
> >
> >http://www.seasilver.com/corp/index.html
> >
> >
> >You are receiving this email because you signed up
> >for, and have a site at http://www.myseawealth.com
> >for MySeaWealth.
> >