Carlsbad, CA (PRWEB) July 27, 2006
Seasilver(r) and related parties are appealing a $120 million "avalanche" payment demanded by FTC in connection with a 2003 settlement of advertising and labeling issues . Since the 2003 intervention by FTC and its settlement with Seasilver USA, Seasilver(r) has produced its natural plant-based liquid nutritional product in compliance with all applicable regulations governing advertising and labeling, as well as all other regulations governing nutritional supplements and food-related products.
In 2003, FTC alleged that some of the pre-intervention advertising made health-related claims not permitted by US regulations. Such claims are generally forbidden unless they are supported by proofs so rigorous that they usually require clinical research customarily performed in preparation for approval of a new drug. An FTC and court selected receiver took over the operation and control of Seasilver from June 2003 until early 2004, and after a settlement agreement was signed by Seasilver and the regulators, the founders of the company resumed control of the company. Since 2004, under the guidance of its founders, Seasilver worked to rebuild its customer base while raising funds to pay the settlement reached with its regulators.
As part of the settlement, $2.25 million from Seasilver, related parties, and its two top distributors was set aside in an FTC fund for redress to any consumers who might have a complaint against Seasilver related to any past advertising or labelling issues and, to this date, none of that money needed to be paid out - strong evidence that Seasilver has done right by its customers and distributors. Nevertheless, the settlement required Seasilver and related parties to raise 4.5 million dollars in 6 months deadline or face a $120 million "avalanche" penalty that would effectively wipe out the company. Seasilver and the founders' property has served as security for the settlement payment while Seasilver has continued to operate over the past 3 years.
During the extended time that Seasilver was under government control, the government-appointed overseer dramatically scaled back the staff, customer and distributor support, and marketing activities, and the company handed back to the founders was a much smaller version of itself. As part of its appeal process, Seasilver and its founders have noted the large loss and devaluation of certain assets that were under government control during the extended 2003-2004 timeframe and the spotless record the company has maintained under the control of its founders.
Seasilver is one of the few fully-compliant producers of nutritional supplements in a field where many of its competitors continue to routinely make claims that would result in closure of their operations if the FTC chose to enforce the applicable regulations.
While appealing the $120 million avalanche payment, Seasilver continues to service customers and fulfill orders, and continues to raise funds that would eventually pay off the original settlement.
People with questions regarding Seasilver(r) can contact its founder and chairman, Bela Berkes, at 760-802-5687.