| U.S. Federal Trade Commission |
FTC News Release, Oct 6, 2005
Developer and Marketers of “Supreme Greens with MSM” Settle FTC Charges
Product Marketed as Able to Prevent, Treat, and Cure Heart Disease, Arthritis, and Diabetes
Three individuals and two companies have settled
Federal Trade Commission charges over their roles in the
deceptive marketing of Supreme Greens, an herbal supplement.
The FTC has alleged that these defendants and others promoted
the product for the prevention, treatment, and cure of cancer,
heart disease, arthritis, and diabetes. They also touted
Supreme Greens’ ability to cause substantial weight loss.
In two separate settlement agreements, Supreme Greens
developer Alejandro Guerrero and his company, Health
Solutions, Inc. (both of Upland, California), and Michael
Howell (Fontana, California), Gregory Geremesz (Upland,
California) and their company, Healthy Solutions, LLC (Upland,
California), have agreed not to make false or unsubstantiated
claims about the health benefits, performance, efficacy, or
safety of any food, drug, or dietary supplement. Guerrero will
also pay $65,000 or transfer to the Commission title to his
2004 Cadillac Escalade. Howell and Geremesz will pay $5,000
and $10,000, respectively, to the Commission.
In June 2004, the FTC filed a lawsuit in the United States
District Court for the District of Massachusetts alleging that
Direct Marketing Concepts, Inc., ITV Direct, Inc., and their
president, Donald W. Barrett; and Alejandro Guerrero, Michael
Howell, Gregory Geremesz, and their companies, Health
Solutions, Inc., and Healthy Solutions, LLC, had deceptively
marketed Supreme Greens. The Commission also alleged that
Direct Marketing Concepts, Inc., ITV Direct, Inc., and Donald
W. Barrett; and Allen Stern and his companies, Triad ML
Marketing, Inc. and King Media, Inc., had deceptively marketed
Coral Calcium Daily. The Commission subsequently amended its
complaint to name Robert Maihos as an additional liability
defendant, and Lisa Stern, Steven Ritchey, and BP
International, Inc. as relief defendants. (The litigation
continues against all of the defendants other than Guerrero,
Howell, Geremesz, and their companies.)
The original Supreme Greens infomercial ran on cable
television (including the Outdoor Channel and the PAX
Television network), beginning in August 2003. In that
infomercial, Guerrero and host Donald Barrett claimed the
product can prevent, treat, and cure cancer, heart disease,
arthritis, and diabetes. They also touted Supreme Greens as
causing substantial weight loss, and claimed that the product
was safe for use by pregnant women, children – including those
as young as one year old – and any person taking any type of
medication.
The settlements announced today prohibit Guerrero, Health
Solutions, Inc., Howell, Geremesz, and Healthy Solutions, LLC
from making the types of claims alleged in the FTC’s complaint
for Supreme Greens or any substantially similar product. The
orders also prohibit them from misrepresenting that any
dietary supplement can prevent, treat, or cure any disease, or
that Guerrero is a medical doctor, Doctor of Oriental
Medicine, or Ph.D. In addition, the orders enjoin them from
making false or unsubstantiated health benefit, performance,
efficacy, or safety claims for any food, drug, or dietary
supplement. Finally, the orders prohibit these five defendants
from misrepresenting the existence, contents, validity,
results, conclusions, or interpretations of any test or study,
in connection with the marketing or sale of any food, drug, or
dietary supplement.
The Guerrero/Health Solutions, Inc. order provides for
judgment in the amount of $65,000 in favor of the Commission.
That judgment can be satisfied either by a payment of that
amount to the Commission, or by Guerrero transferring to the
Commission free and unencumbered title to his 2004 Cadillac
Escalade. The order also contains a $1.47 million avalanche
clause, which will become due immediately if the court finds
that Guerrero or Health Solutions, Inc. misrepresented their
financial condition. The order also requires them to notify
current and future dietary supplement distributors, resellers,
and sales agents of the settlement, and to stop doing business
with them if they use any of the promotional materials
prohibited by the order.
The Howell/Geremesz/Healthy Solutions, LLC order provides
for judgment against Howell in the amount of $5,000, and
against Geremesz in the amount of $10,000. This order also
contains a $2.7 million avalanche clause and a distributor
notification provision. Finally, both orders contain various
record-keeping requirements to assist the FTC in monitoring
the defendants’ compliance with the orders.
The Commission vote authorizing staff to file
the Guerrero/Health Solutions, Inc. stipulated final order was
5-0; the vote authorizing staff to file the
Howell/Geremesz/Healthy Solutions, LLC stipulated final order
was also 5-0. Both orders were filed in the U.S.
District Court for the District of Massachusetts, and they
were entered by the Court on September 28, 2005, and September
29, 2005, respectively.
NOTE: These stipulated final orders are
for settlement purposes only and do not constitute an
admission by the defendants of a law violation. Stipulated
final orders have the force of law when signed by the
judge.
The text in this article was prepared by the U.S. Federal Trade Commission.