Seasilver Promoters Fined $4.5 Million

March 24, 2004

March 17, 2004

Two promoters of the dietary supplement “Seasilver” have been ordered to pay a

total of $4.5 million and destroy existing inventory worth more than $5 million,

as part of a settlement with the Federal Trade Commission.

In June 2003, the FTC and the Food and Drug Administration (FDA) announced a

coordinated action against Seasilver USA, Inc. and Americaloe, Inc., their

owners, and two of the companies’ principal distributors.

The FTC alleged that the defendants promoted Seasilver through false claims that

it was clinically proven to treat or cure 650 diseases, including cancer and

AIDS.

“The claims for Seasilver threatened consumers’ health by encouraging delays and

replacements for proven treatments,” said Howard Beales, Director of the FTC’s

Bureau of Consumer Protection. “The FTC and FDA are committed to taking

aggressive action against false and unsubstantiated claims in the dietary

supplement market. Products touted as cure-alls almost always cure nothing.”

The complaint alleged that the defendants’ ads and promotional materials

represented that Seasilver treats or cures cancer; enables nine out of ten

diabetes patients to stop their insulin medication; and causes rapid,

substantial, and permanent weight loss without dieting. The FTC charged that

these and other claims are false and unsubstantiated. Seasilver is a liquid

dietary supplement purported to contain, among other ingredients, aloe vera,

phyto-silver sea vegetables, the herb Pau D-Arco, and cranberry concentrate.

The FTC’s complaint named Seasilver USA, Inc. and Americaloe, Inc., their

principals, Bela and Jason Berkes, and two Seasilver distributors, Brett

Rademacher and David R. Friedman, D.C. The two companies and the Berkes are

located in Carlsbad, California; Rademacher and Dr. Friedman are located in

Anchorage, Alaska, and Wilmington, North Carolina, respectively.

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