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Texas Trips Up "Smiling Bob"

Dietary Supplement Peddlers Agree to Refunds

February 5, 2007

• Feds Sue Infomercial Maestro Kevin Trudeau Again • FDA Warns Against Red Yeast Rice Products • FDA Strengthens Supplement Supervision • Texas Trips Up "Smiling Bob" • Dietary Supplements Must Report Adverse Reactions • U.S. Marshals Seize Dietary Supplements • FDA Warns of Dangerous Ingredients in "Sexual Enhancement" Supplements • FTC: Dietary Supplements Don't Deliver • Trudeau Sells Customer Names to Junk Mailers • Judge Refuses to Gag Trudeau Critics • Consumer Agency Trashes Trudeau's "Natural Cures" Book • FDA Vows Crackdown on Dietary Supplements • Kevin Trudeau Banned from Infomercials • Supreme Greens, Coral Calcium Daily Give FTC Indigestion • Coral Calcium Promoters Face Federal Charges • Coral Calcium Claims Debunked --- • Consumer Complaints • Trudeau Defenders

Five Ohio companies have been stopped from fraudulently marketing several unproven dietary supplements, some of which were widely advertised through "Smiling Bob" TV commercials.

Texas authorities said the commercials touted deceptive "free trial" offers. An agreement with Steve Warshak, owner of all five companies, provides refunds to consumers deceived by the misleading practices.

The settlement covers 15 products, including Altovis, Mioplex, Numovil and Enzyte, the last of which was known for its "Smiling Bob" television commercials.

"Texans will not tolerate falsely advertised, unproven healthcare supplements," said Texas Attorney General Greg Abbott. "We are committed to cracking down on companies that make false claims about dietary supplements. This judgment ensures that appropriate restitution is available to the good folks who were deceived by these defendants."

Abbott filed suit in June 2005 against Warshak and his five companies -- Berkley Premium Nutraceuticals Inc.; Lifekey Inc.; Boland Naturals Inc.; Warner Health Care; and Warner Nutraceuticals.

The defendants agreed to end the deceptive "free trial offers" that persuaded consumers to order the supplements. Once consumers received the product, the companies began billing them automatically without their consent. Further, the defendants instructed consumers to take the supplements for 90 days or risk not achieving all the products' supposed beneficial health effects.

In fact, the 90-day period's true purpose was simply to exceed the trial period and thereby encourage consumers to purchase the defendants' goods. Many consumers found it difficult, if not impossible, to cancel shipments or obtain refunds.

Warshak and his companies enticed consumers by falsely claming his products could cure diseases. The U.S. Food and Drug Administration has not approved any of the products for use as drugs, and no scientific studies support Warshak's claims.

Under the settlement, Warshak will pay $350,000 in civil penalties and attorneys' fees to the State. Warshak also agreed to refrain from deceptively promoting his products. Additionally, the defendants are prohibited from offering "free" product trials unless the promotions clearly give consumers a way to cancel after the trial period ends.

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