Attorney General's News Release

March 2, 2006

Marketer of "enhancement" pill Enzyte to pay restitution, change practices in settlement over negative option plan

Jefferson City, Mo. — Smiling Bob, the character in TV commercials for the "natural male enhancement" product Enzyte, might be feeling a little down today after the maker of Enzyte agreed to stop deceptive sales practices in settlements with Missouri Attorney General Jay Nixon and the Attorneys General of at least 17 other states. Consumers in those states who have unresolved complaints against the company also may be eligible for restitution.

Nixon says the problem with the marketing of Enzyte and several other dietary supplements by Berkeley Premium Nutraceuticals was that consumers who were offered a "free" 30-day trial of pills were not told that they would automatically receive and be billed for additional shipments. The cost of each shipment was typically about $70 for a 60-day supply. Such marketing tactics are known as a negative option feature, and consumers found that it often was difficult to cancel shipments or get their money back, Nixon said.

"If consumers are going to automatically receive and be billed for a product, they need to have all the information up front," Nixon said. "They also should be able to stop shipments they don't want and obtain refunds without problems. With this agreement, Berkeley will need to provide better information and customer service."

Berkeley has attracted customers with advertisements resembling those for genuine pharmaceutical drugs. The companies' products include pills purported to address numerous physical ailments, most notably Enzyte, a pill to enhance sexual function.

Missouri's settlement agreement with Steve Warshak of Cincinnati, Ohio and his dietary supplement firms Berkeley Premium Nutraceuticals, Lifekey Inc., Boland Naturals Inc., Warner Health Care, and Wagner Nutraceuticals was filed today in Cole County Circuit Court. Among the settlement terms the defendants must abide by are requirements that they:

• Stop using the word "free" in advertising unless all the terms and conditions related to the "free" offer are disclosed to the consumer and in compliance with applicable state and federal laws.
• Stop making health claims they cannot support with scientific evidence.
• Make disclosures to consumers prior to sale about products the companies will deliver as part of a negative option feature or membership, and about refunds and guarantee procedures.
• Record all telemarketing calls and retain them for one year.
• Provide consumer restitution to all consumers who currently have unresolved complaints on file with the Attorney General's office, the Better Business Bureau, and Berkeley and those who file complaints with the Attorney General's office, the Better Business Bureau, or Berkeley within 90 days of today's filing of the consent judgment and order.

Attorneys general for several other states joined in the action by filing similar settlements in their state courts. The other participating states include Arkansas, California, Florida, Illinois, Kansas, Mississippi, Montana, New Jersey. North Carolina, Ohio, Oregon, Pennsylvania, Texas, Vermont, Virginia, Washington, and Wisconsin, as well as the District of Columbia. Other states may join with settlements as well.

In addition to Enzyte, the companies' dietary supplements include Altovis, Avlimil, Avlimil Complete, Dromias, Mioplex, Ogoplex, Numovil, Pinadol, Prulato, Rogisen, Rovicid, Suvaril, Nuproxi, and Rudofil.

Consumers can file a complaint online with the Missouri Attorney General's Office by going to www.ago.mo.gov, or they may call the Consumer Protection Hotline at 1-800-392-8222. Complaints should be filed against "Berkeley Nutraceuticals."

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to the Press Secretary.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818