Berkeley Nutraceuticals settles in $4.7m suit

By Clarisse Douaud

- Last updated on GMT

Related tags Dietary supplement

An Ohio judge granted a $4.7mn settlement in a class-action lawsuit
against Berkeley Premium Nutraceuticals for falsely advertising the
sexual dysfunction effects of its dietary supplements.

In March, the herbal supplement company reached a similar settlement - for $2.5mn - with the attorney generals of Ohio and five other states. In the current case, approximately 1.5 million customers are to be contacted regarding refunds for the products, which include Enzyte.

The case represents the polemic surrounding dietary supplements and advertising and could reassure other supplement companies that legal action is carried out in cases where companies deceptively advertise.

Cincinnati-based Berkeley, marketed Enzyte using the "Smiling Bob" national ad campaign which featured a man whose life improves after he uses the product Berkeley's website claimed supports "firmer, fuller-feeling, better quality erections".

The current settlement concerns people who bought Enzyte and other Berkeley products without yet receiving a refund.

The company's owner, Steve Warshak, is awaiting trial on federal charges after thousands of customers, as well as merchant banks, were allegedly defrauded of $100m by Berkeley.

Based on thousands of customer complaints, the Federal Trade Commission has charged that consumers provided credit or debit card information to pay a shipping and handling fee for the "free" samples, and that Berkeley later used that information to bill consumers for shipments which they sent automatically, without their consent, or without disclosing the terms and conditions of the plan.

Berkeley is also alleged to have made it difficult for customers to cancel shipments as they faced a wall of busy phone lines and web sites that did not work.

The company's other supplement products include Avlimil and Rogisen.

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