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False claims about a pill that could naturally make women's breasts larger have seen a Tauranga company and its manager fined more than $100,000.
Erdic Limited and its manager Allan Mitchell were fined a total of $100,000 in Auckland District Court today after being found guilty of breaching the Fair Trading Act.
Erdic made claims in a brochure and on two websites that a pill, called Erdic, was a natural alternative to breast implants and could significantly and permanently increase the size, shape and firmness of women's breasts. The websites have since been shut down, the Commerce Commission said.
Erdic's ingredients were represented as being hops, buckwheat, fennel, rye, malt, barley and anti-caking agents.
Erdic sold between 7000 and 8000 boxes of the pills and some women spent over $3000 on the pills.
The commission's investigation found that taking the tablets at the recommended dose would have no significant hormonal or other relevant effect on breast shape or size.
In sentencing Judge Robert Kerr noted that marketing an herbal alternative to plastic surgery would have its appeal to the target market who were gullible, naive and wanting to increase their bust size. He said the defendants were culpable and profit was their main motive.
Mitchell and Erdic also pleaded guilty to breaching the Fair Trading Act in relation to the use of a reference number in advertising which suggested the advertising placed in TV Guide and other Fairfax magazines had been approved by the Therapeutic Advertising Pre-vetting Service - a subsidiary of the Advertising Standards Authority.
"Consumers rely on information provided by businesses to make decisions about the products they purchase. Those marketing natural or alternative therapies have the same obligations as other businesses under the Fair Trading Act, and that is to ensure that claims made about benefits gained are accurate," said Commerce Commission director of fair trading Adrian Sparrow.
Consumers should be rightly sceptical of any products that make claims that seem unlikely, he said.
"There is always someone willing to sell snake oil to the unwary, so the commission strongly advises consumers exercise common sense before purchasing `miracle' pills and potions that make improbable claims."
Erdic Limited was fined $80,000. The judge also ordered Erdic to pay costs totalling $9235. Mitchell himself was fined $20,000.
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