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A Bay of Plenty man and his distribution company face fines of up to $4.68 million after being accused of making false or misleading claims about a pill designed to make women's breasts bigger.
The Commerce Commission has charged Ohauiti man Allan Mitchell and Erdic (NZ) Ltd with
18 counts of breaching the Fair Trading Act in a brochure and on two websites about the therapeutic benefits of the company's breast enhancement product, Erdic.
Mr Mitchell is the New Zealand distributor for Erdic's breast beautification tablets which are claimed to be a natural alternative to invasive breast implants and can enlarge breasts up to four cup sizes.
On its website www.naturalerdic.com (now offline) the company claimed that the product is the result of 20 years' research and has been used in America and Europe for more than nine years and in NZ since 2002. It said it has an 85-90 per cent success rate and is 100 per cent natural.
It further claimed that "this breast beautification method has amazed more than 350,000 women worldwide to help improve the appearance of the breasts safely, naturally and permanently".
The Commerce Commission launched an investigation after a complaint was made to the Ministry of Health and the accused was asked to substantiate the claims made about Erdic.
An independent expert looked at the supporting evidence provided by Erdic (NZ) Ltd and found there was no scientific basis for those claims, the commission alleges.
The offences are alleged to have occurred between January 16, 2004, and April 27 last year, and include the use of a reference number in a brochure which suggests the advertisement had been pre-vetted by the Therapeutic Advertising Pre-vetting Service. The Commerce Commission has confirmed approval to use the reference was withdrawn.
Bill Nabney, who represented Mr Mitchell and his company at a status hearing in Tauranga District Court yesterday, told Judge Peter Rollo that a defended hearing should be set down for seven days, five of which would be taken up by the Commerce Commission presenting its case.
Mr Nabney said it was likely a video link would also be required to enable a defence witness living in Belgium or the UK to give evidence if required.
A date for the defended hearing is expected to be confirmed later this month. The company faces a maximum fine of $200,000 on each charge while Mr Mitchell faces a $60,000 fine for each breach if found guilty.
- BAY OF PLENTY TIMES