Brave herb company refuses to bow to Fed bullies & strikes back

from the Health Sciences Institute:

Down By Law

Out in New Mexico, some little guys are fighting some big guys who happen to be government guys who also happen to be acting like bullies.

Do you tend to root for the underdog? Do you enjoy seeing bullies get their comeuppance?

Then I've got a good story for you…

Dark shadow

Let's say there's a government website that acknowledges evidence that milk thistle is "hepatoprotective" (that is, it protects the liver). And let's say there's another government website that offers this quote about milk thistle: "It has been used for thousands of years as a remedy for a variety of ailments, especially liver problems."

Okay. As it happens, you manufacture and sell a milk thistle product, so on your website you post something like this: "The National Center for Complementary and Alternative Medicine (a division of the National Institutes of Health) states that milk thistle has been used for thousands of years as a remedy for a variety of ailments, especially liver problems."

What are you doing? You're stating the truth about an historical fact. Not only that, it's a fact backed up by a direct quote from a government agency.

Guess what? You can't do that.

Who says? The FTC. And they're willing to take away your company and bankrupt you to prove their point.

So what do you do? Most companies roll over and comply when the FTC shadow darkens their door. But not you. You sue the bullies. And you just might make history.

Way over the top

For about 15 years, Mark and Marianne Hershiser have operated Native Essence Herb Company, just outside of Taos, New Mexico. They started their business with a single herbal tea, then slowly expanded to offer many individual herbs and herbal formulas.

This past spring they received a letter from the Western Region of the FTC, stating that they had violated the FTC Act by making deceptive claims. Acting like a "good cop," the Western Region letter notes that the Hershisers could avoid litigation from the FTC "bad cop" by removing the claims from their website and signing a settlement agreement. Failure to respond would result in legal action that would include, "…appointment of a receiver to exercise control over the company…and an asset freeze…"

The letter states that the FTC also directed the Western Region office to seek from the company an amount equal to revenues from the sales of certain products - that is: ALL revenues accumulated over the years the products were sold.

In other words: Comply or we'll take your business and bury you in debt.

Late last month the Hershisers responded in a way no one had ever responded to such a letter. They sued. Citing the First Amendment, the Hershisers claim they have the right to truthfully inform customers about the historical uses of individual herbs (as noted on government websites) and to share the conclusions of government-sponsored studies.

In a statement issued by the office of Richard A. Jaffe, the Hershisers' attorney, Mr. Jaffe said, "This is a precedent-setting case. The issue has never been litigated; it not only affects the Hershisers, but all companies which sell herbal products."

We can only hope that someone at the FTC is squirming uncomfortably. And hopefully that discomfort will steadily increase as the case goes on.

You can be sure I'll closely follow the Hershisers' progress, and I'll keep you posted on how they fare in their fight with these government bullies. Meanwhile, you can read more about their case (and contribute to their legal fund, if you like) at this website: herbalinformation.com.

Sources:
"Native Essence Herb Company Sues FTC" Business Wire, 6/25/08, reuters.com
"New Mexico Lawsuit challenges FTC Censorship" Voluntary Trade Council, 6/28/08, voluntarytrade.org