Consumers misled by claims about alternative health therapy devices will receive refunds after Australian Competition and Consumer Commission action.
Raylight Pty Ltd and its director Mr Herbert Nathan and an operator of two Internet sites, Mr Colin Ronald Dixon, have given undertakings to the Federal Court of Australia.
Raylight Pty Ltd markets alternative therapy products including the 'Parasite Zapper' and the 'Colloidal Silver Generator'. Advertisements published in Nexus New Times, a magazine that regularly includes health features, claimed that the 'Parasite Zapper' passes an electric current through a person's blood and that this, amongst other things:
- is capable of neutralising HIV and other parasites in the body; and
- is effective in treating a number of serious medical conditions including HIV, hepatitis and herpes as well as obesity.
The ACCC was also concerned by Raylight's claims about colloidal silver produced by the Colloidal Silver Generator including that it:
- is effective at killing intestinal bacteria and viruses;
- is helpful to AIDS sufferers when used together with the Parasite Zapper; and
- prevents opportunistic infections originating from the stomach and intestines.
Raylight has given undertakings to the Federal Court that it: will not make the representations set out above; and will provide refunds to persons who may have been misled into purchasing either the Parasite Zapper or the Colloidal Silver Generator.
Raylight's director Mr Nathan also gave an undertaking not to design, create, settle or procure the publication of advertisements or promotional material containing representations concerning the Colloidal Silver Generator and Parasite Zapper, as set out above. Mr Nathan also gave an undertaking to attend a trade practices seminar to ensure future compliance with Part V of the Trade Practices Act 1974.
Mr Dixon published representations on two Internet sites alleging that the 'Vital Silver 2000' and the 'Vital Silver 3000 Zapper' marketed by Vital Earth Company Pty Ltd including:
- that the colloidal silver allegedly made by the Vital Silver 2000 and/or the Vital Silver 3000 - Zapper kills, in less than sixty seconds, inter alia, anthrax, tuberculosis, shingles, cerebrospinal meningitis, gonorrhoea, whooping cough;
- that the colloidal silver allegedly made by the Vital Silver 2000 and/or the Vital Silver 3000 could be used as an antibiotic for all the acquired diseases of active AIDS; and
- that the colloidal silver allegedly made by the Vital Silver 2000 and/or the Vital Silver 3000 has been used successfully against, inter alia, meningitis, diabetes, leprosy, lupus, skin cancer, syphilis and whooping cough.
Mr Dixon gave undertakings to the Federal Court to stop making these representations and to display corrective advertisements at the two Internet sites which had contained these representations.
Once the ACCC drew its concerns to the attention of Raylight and its director Mr Nathan and the internet site operator, Mr Dixon, each of the parties acted quickly to stop publishing the relevant representations.
Proceedings against Vital Earth Company Pty Limited and its director Mr Darryl John Jones in relation to representations made about the Vital Silver 2000 Automatic, the Vital Silver 2000 and the Vital Silver 3000 - Zapper continue. The next directions hearing will be held at the Federal Court, Sydney on Tuesday 23 November, at 9.30 a.m.