To: Seasilver Independent Business Associates and Customers
Re: URGENT-Further Notice re: FTC and FDA Legal Actions
As you should already be aware, in separate actions, both the Federal Trade
Commission ("FTC") and the Food
& Drug Administration ("FDA") have initiated legal action against Seasilver.
The FTC Complaint claims that
Seasilver and its distributors have made improper and unsubstantiated health
claims in advertising and
promotion of the product. The FDA claims that the product is not properly
labeled as to the ingredients of the
product and its health benefits.
In order to deal with both these matters, the Company has curtailed most
operations and is not presently
marketing, selling or shipping product. The Company and its counsel are working
with both agencies to comply
with the courts orders and to secure a resolution of the governments
concerns. The Company hopes to
resume operations in the near future. FTC Action
On June 13, 2003, the FTC filed a Complaint in the United States District Court
in Nevada against Seasilver USA,
Inc. and Americaloe, and certain of their corporate officers. The suit claims
that Seasilver has made false claims
about the benefits of its products in marketing materials and on product
labels. The FTC also applied for and was
granted a Temporary Restraining Order ("TRO"), which prohibits Seasilver from
selling or distributing its product
without significant changes to the labeling and marketing materials.
As part of the TRO, the court has appointed Thomas W. McNamara as Temporary
Receiver for both companies.
The Temporary Receiver is a neutral party who is now in charge of day to day
operations. The TRO is specifically
directed at Seasilver and its employees and distributors and others in active
participation with the Company. It
prohibits the Company and its distributors from making unsubstantiated health
claims about the products.
FDA Action
On Wednesday June 18, 2003, representatives of the Food and Drug Administration
("FDA") and the U.S.
Marshals office completed a court-ordered seizure of the Seasilver product
located at the Carlsbad facility. A
similar seizure was made in Ohio on June 26. These seizures are based on the
FDAs claim that the product is
mis-branded. No claims are made by the FDA as to the product itself, just as to
the labeling. The Company may
not and will not sell or ship any of its current products until it resolves
these labeling issues with the FDA.
Customers - Do Not Discontinue Or Reduce Any Prescription Medications Without
First Consulting
Your Physician.
Previously Seasilver and certain of its distributors have made unsubstantiated
claims regarding the health
benefits of Seasilver. You may have seen claims that the product cures cancer,
diabetes, and host of other
diseases and other serious conditions, and that it results in significant and
permanent weight loss without dieting.
No clinical studies support such claims. In fact, medical experts state that
such claims are highly implausible and
likely false. If you are under a physicians care it is very important that you
not discontinue or reduce any
prescription medication without consulting you physician.
Distributors - You Must Cease and Desist from Making any Health Claims on the
Product
Effective immediately, you must cease and desist from making any false or
misleading statements or
representations in connection with the marketing, distribution or sale of any
Seasilver product, specially including
but not limited to representations that Seasilver cures or treats cancer,
enables 9 of 10 diabetes patients to stop
insulin, leads to weight loss without dieting, treats or cures typhoid or
anthrax, is proven to be non-toxin, and/or
provides any other health benefits without competent and reliable scientific
evidence.
Distributors - You Must Cease any Use of the Current Seasilver Product Brochures
In order to comply with the TRO, we are also today recalling all packaging and
labeling including all descriptive
materials and brochures, which contain any representations as to the health
benefits of Seasilver. This specially
includes the current Seasilver brochure entitled Seasilver USA/The Leader in
Foundational Health. If you have
copies of that brochure, please do not use them for any purpose, and
immediately return them to the Company. If
you have any copies of a booklet entitled "Journey into the World of
Foundational Health", you must return them
immediately.
Distributors - You Must Terminate Any Other Marketing Activities That are Not
Approved by The
Company
You must also immediately terminate any marketing activities of any kind which
use materials which have not
been approved by the Company. If you have any such materials in inventory, you
must destroy them immediately.
Please refer to the Policies & Procedures adopted by Seasilver. Paragraphs 15
and 17 expressly prohibit any
independent Business Associate from advertising or offering for sale Seasilver
Dietary Supplement in any way
other than through the advertising and promotional materials made available by
the Company, or except as
otherwise expressly approved and authorized by the Company in writing before
any dissemination, publication or
display. Failure to abide by these procedures will result in your termination
as a distributor.
Distributors - You Must Immediately Alert all Distributors and Customers in
Your Down line of these
Restrictions
If you are a distributor with a downline, you must immediately transmit a copy
of this Notice to all members of
your downline and immediately advise them to cease all marketing efforts for
the product. You must do so
immediately by e-mail or fax depending on how you normally communicate with
them.
Distributors - You Must Carefully Read the TRO Immediately and Comply with all
Applicable Provisions
A copy of the TRO is available in pdf form on the Temporary Receivers website
at
http://receiver.seasilver.com. All Independent Business Associates must read it
carefully and take immediate
steps to insure complete compliance by them and their downline.
Communication with the Company
Due to the curtailment of operations, it will be difficult for a representative
of the Company to respond to questions
and concerns from individual distributors or customers. Please refer to the
Seasilver.com website for updates
and additional information. You may send e-mail questions to the Temporary
Receiver at
[email protected]
The Future
The Temporary Receiver is working with the Company and its attorneys to achieve
a resolution of these claims
by the FTC and FDA so that the Company can resume operations with labeling and
marketing materials which
are in compliance with the court order and all government regulations. The
Companys employees are fully
cooperating with the Temporary Receiver in this effort. You may refer to the
Seasilver.com website for updates
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