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Avalon Senior Member
Join Date: Sep 2008
Location: Westbloomfield michigan
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> FDA Running Extortion Racket: Natural Supplement Companies > Threatened with Arrest if They Don't Pay Up > by Mike Adams (see all articles by this author) > > (NaturalNews) NaturalNews has learned the U.S. Food and > Drug Administration is running a criminal extortion racket > designed to drain cash from health supplement companies and > shift it into the pockets of top FDA contractors. This > organized crime operation has been running for years, and it > has operated with impunity because each company targeted by > the scam feels isolated and alone, unable to face the > astronomical legal bills of going to court and battling the > FDA. So one by one, they agree to "settle" with > the FDA for crimes they never committed. Part of the > settlement, of course, involves the payment of FDA employees > or contractors who pocket the money extorted from health > companies. > > NaturalNews has interviewed executives from three different > companies who have been targeted for extortion by U.S. Food > and Drug Administration employees. At their request, the > names of those companies are being kept confidential until > legal action being taken against them is resolved. > Interviews have been recorded, with permission, with two of > those companies and will be released to the public at a > later date. Documents proving this FDA extortion racket are > included here. > > How the FDA extorts money from nutritional supplement > companies > The FDA extortion racket works like this: FDA employees use > keyword-scanning software to scan the web pages of natural > health product and supplement companies, searching for terms > like cancer, cures, treatment, remedies and other > "forbidden" words. FDA employees then review the > discovered pages to determine if they contain any words that > might inform consumers of the health benefits of the > nutritional products. FDA employees also look for links that > might point web users to scientific articles from > peer-reviewed medical journals that further explain the > health benefits of specific foods, supplements or nutrients. > > When offending words or links are found by the FDA, their > extortion team goes into full swing. First, they contact the > company and warn them to remove all information and links > from their websites. This is the most important step from > the FDA's standpoint, because by doing this, they can > keep the health-conscious public in a state of nutritional > ignorance about the scientifically-supported healing > properties of natural supplements. Cherry products, for > example, cannot link to scientific articles explaining the > simple biological fact that cherries ease inflammation in > human beings. Such links are considered "drug > claims" by the FDA. > > NaturalNews has even learned that companies are now being > targeted for simply posting customer testimonials, even when > those testimonials make absolutely no health claims. FDA and > FTC agents are now threatening the owners of such companies > with imprisonment if they do not immediately remove all > customer testimonials from their websites and marketing > materials. > > If the company being targeted for extortion refuses to > fully comply with the FDA's requests to remove all > educational information from their website, the FDA then > escalates the extortion tactics by threatening the company > principals with arrest and seizure unless they agree to pay > hundreds of thousands of dollars to top FDA contractors and > sign a "consent decree" where the company > "admits" to committing various crimes (see below). > This consent decree is a blatant violation of the > Constitutional rights of U.S. citizens, of course, and it > violates numerous sections of the Bill of Rights (Amendments > #1 and #5, at the very least). > > > The FDA employees or contractors receiving the extorted > money, it is claimed, are being paid to "review web > pages" to make sure they don't contain anything > that might inform consumers about the > scientifically-validated benefits of the health products > being sold. FDA extortion agreements specify that FDA > employees should be paid the rate of $100 per hour, with no > limit on the number of hours they may bill the company for. > The extortion agreement also requires companies to pay for > all the following: > > * $100 per hour for the travel time of FDA employees. > * Hotel rooms for FDA employees. > * Storage fees for all products seized by the FDA. > > The same agreement also requires the company to comply with > FDA demands by never placing any links or > "illegal" information on its website, where > "illegal" means anything that offers an accurate > description of the health benefits offered by natural health > products. > > The Consent Decree > Part of the FDA's strategy for oppression and control > is to force targeted companies to sign a "consent > decree" where they admit to crimes they never > committed. NaturalNews obtained a copy of a public court > document the FruitFast company was forced to sign due to FDA > threats and extortion tactics. > > You can view this document yourself at: > http://www.NaturalNews.com/investigatio... > > This document requires the FruitFast company to admit to > crimes it did not commit; namely: > > "Violating the Act, by introducing or delivering for > introduction, or causing to be introduced or delivered for > introduction, into interstate commerce articles of drug that > are misbranded within the meaning of 21 U.S.C. SS > 352(f)(1)." > > What "drugs" did the FruitFast company introduce > that were "misbranded?" Cherries, it turns out. > Cherry juice concentrate was being sold with the accurate > statement that it helped eliminate gout (which it does). > This, according to the FDA, was enough to magically > transform cherry juice into an "unapproved drug" > and cause it to be "misbranded." > > It also requires targeted companies to contractually agree > that they have: > > "...removed all claims from Defendants' product > labels, labeling, promotional materials, websites owned or > controlled by Defendants, and in any other media that cause > that product to be a drug and/or contain unapproved or > unauthorized health claims within the meaning of the Act; > and > > (ii) removed, from their product labels, labeling, > promotional materials, and websites owned or controlled by > Defendants, references to or endorsements of any other > website that conveys information about Defendants' > products that cause those products to be a drug and/or > contain unapproved or unauthorized health claims within the > meaning of the Act." > > This means, of course, that these companies can no longer > even LINK to other websites, including websites of > scientific journals that discuss the proven health benefits > of such natural products (foods, herbs, etc.) > > The truth is now subject to FDA approval > Once a company removes all educational information and > links from their website, they are then required to submit > to draconian measures of "censorship enforcement" > by the FDA. This is fully explained in this section of the > FDA's Consent Decree: (bolding added for emphasis) > > Within ten (10) calendar days of FDA's request for any > labels, labeling, promotional materials, and/or downloaded > copies (on CD-Rom) of any internet websites owned or > controlled by Defendants or websites referenced by, > endorsed, or adopted directly or indirectly by Defendants, > Defendants shall submit a copy of the requested materials to > FDA at the address specified in paragraph 19. > > Within twenty (20) calendar days of entry of this Decree, > Defendants shall submit to FDA a certification of > compliance, signed by each of the individually-named > Defendants in this matter, each Defendant stating that he: > (a) has personally reviewed all of Defendants' product > labels, labeling, promotional materials, and the internet > websites referred to in paragraph 8 above; and (b) > personally certifies that the product labels, labeling, > promotional materials, and internet websites strictly comply > with the requirements of the Act and its regulations and do > not include unapproved or unauthorized claims that the > products cure, mitigate, treat, prevent and/or reduce the > risk of disease. Thereafter, Defendants shall submit > certifications of compliance every three (3) months for a > period of two (2) years. > > > Furthermore, the FDA then requires that the company being > targeted by the extortion racket hire a person (called the > "expert") to enforce all this censorship the > company has agreed to. > > As you'll note in the language below, this > "expert" must be paid $100 an hour, for an > unlimited number of hours, to conduct surprise inspections > of the company's administrative offices, warehouses and > fulfillment centers: > > Within fourteen (14) calendar days of entry of this Decree, > Defendants shall retain an independent person or persons > (the "expert")... who by reason of background, > experience, education, and training is qualified to assess > Defendants' compliance with the Act, to review the > claims Defendants make for all of their products on their > product labels, labeling, promotional material, any internet > websites owned or controlled by Defendants, including, but > not limited to, the websites referred to in paragraph 8 > above. At the conclusion of the expert's review, the > expert shall prepare a written report analyzing whether > Defendants are operating in compliance with the Act and in > particular, certify whether Defendants have omitted all > claims from their product labels, labeling, promotional > materials, websites owned or controlled by Defendants, and > in any other media, that make any of their products drugs > and/or constitute unapproved or unauthorized health claims > within the meaning of the Act. The expert shall also review > Defendants' product labels, labeling, promotional > materials, and websites owned or controlled by Defendants to > determine whether these include any references to or > endorsements of any other websites that convey information > about Defendants' products that cause those products to > be a drug and/or contain unapproved or unauthorized health > claims within the meaning of the Act, and certify in the > written report whether Defendants have omitted any such > references or endorsements. The expert shall submit this > report to FDA and Defendants within thirty-five (35) > calendar days of the entry of this Decree. If the expert > reports any violations of the Act, Defendants shall, within > seven (7) calendar days of receipt of the report, correct > those deviations, unless FDA notifies Defendants that a > shorter time period is necessary. > > In other words, this section requires the company being > targeted to pay the "Expert" huge fees to make > sure it doesn't "illegally" link to other > websites that might tell the truth about the health products > in question. > > FDA tyranny unleashed > So what happens if the company slips up and does something > illegal like, let's say, posting a clickable link to a > science journal that discusses research citing the health > benefits of cherries? As you'll see below, there are no > limits to the action the FDA can take in retribution, > including the seizure of all company assets and the arrest > of its principals. > > Specifically, the Consent Decree forces company owners to > agree to the following: > > If, at any time after this Decree has been entered, FDA > determines, based on the results of an inspection, the > analyses of Defendants' product labels, labeling, > promotional materials, websites owned or controlled by > Defendants, or websites referenced by, endorsed, or adopted > directly or indirectly by Defendants that convey information > about Defendants' products, a report prepared by > Defendants' expert, or any other information, that > additional corrective actions are necessary to achieve > compliance with the Act, applicable regulations, or this > Decree, FDA may, as and when it deems necessary, direct > Defendants, in writing, to take one or more of the actions: > > A. Cease manufacturing, processing, packing, labeling, > holding, and/or distributing any article(s); > > B. Submit additional reports or information to FDA; > > C. Recall any article(s) at Defendants' expense; or > > D. Take any other reasonable corrective action(s) as FDA, > in its discretion, deems necessary to bring Defendants and > their products into compliance with the Act, applicable > regulations, and this Decree. > > Surprise inspections, secret police and non-stop > persecution > Just to keep the targeted company in a state of constant > fear (which is why I have labeled the FDA a terrorist > organization), the FDA forces it to agree to surprise > inspections where it must pay FDA "compliance > officers" to rummage through their product shelves and > paperwork, looking for evidence of non-compliance: > > > Duly authorized representatives of FDA shall be permitted, > without prior notice and as and when FDA deems necessary, to > make [surprise] inspections of Defendants' facilities > and, without prior notice, take any other measures necessary > to monitor and ensure continuing compliance with the terms > of this Decree. During such inspections, FDA representatives > shall be permitted prompt access to buildings, equipment, > in-process and finished materials, containers, labeling and > other materials therein; to take photographs and make video > recordings; to take samples of Defendants' finished and > unfinished materials and products, containers, labels, > labeling, and other promotional materials; and to examine > and copy all records relating to the receipt, manufacture, > processing, packing, labeling, promoting, holding, and > distribution of any and all Defendants' products in > order to ensure continuing compliance with the terms of this > Decree. The inspections shall be permitted upon presentation > of a copy of this Decree and appropriate credentials. The > inspection authority granted by this Decree is separate > from, and in addition to, the authority to conduct > inspections under the Act, 21 U.S.C. §374. > > And just to make sure the company is further driven into > bankruptcy, the FDA requires them to PAY for all these > surprise "compliance" investigations! As stated in > the Consent Decree: > > Defendants shall reimburse FDA for the costs of all FDA > inspections, investigations, supervision, reviews, > examinations, and analyses specified in this Decree or that > FDA deems necessary to evaluate Defendants' compliance > with this Decree. The costs of such inspections shall be > borne by Defendants at the prevailing rates in effect at the > time the costs are incurred. As of the date that this Decree > is signed by the parties, these rates are: $78.09 per hour > and fraction thereof per representative for inspection work; > $93.61 per hour or fraction thereof per representative for > analytical or review work; $0.485 per mile for travel > expenses by automobile; government rate or the equivalent > for travel by air or other means; and the published > government per diem rate or the equivalent for the areas in > which the inspections are performed per-day, > per-representative for subsistence expenses, where > necessary. In the event that the standard rates applicable > to FDA supervision of court-ordered compliance are modified, > these rates shall be increased or decreased without further > order of the Court." > > Are you getting the picture here? The FDA can simply show > up on a "surprise" inspection, bring ten FDA > agents, bill the company for thousands of hours, and > bankrupt the company while padding its own pockets. > > Doesn't this sound a lot like the King's Consent > Decree against the American colonies? The FDA's > agreement reads amazingly like a document a King might force > his subjects to sign as he's taking over their land and > gold, imprisoning them in his kingdom. > > But it gets better: The FDA also requires the Defendants to > reveal all sorts of details about their business operations: > > "Within ten (10) calendar days of entry of this > Decree, Defendants shall provide FDA a list of all domain > names and IP addresses they use to market or describe any > product, regardless of whether such sites mention specific > products Defendants sell. > > Defendants shall notify the District Director, FDA Detroit > District Office, in writing at least fifteen (15) calendar > days before any change in ownership, character, or name of > its business. > > If Defendants fail to comply with any of the provisions of > this Decree, including any time frame imposed by this > Decree, then, on motion of the United States in this > proceeding, Defendants Brownwood Acres and/or Cherry Capital > shall pay to the United States of America the sum of one > thousand dollars ($1,000) in liquidated damages per > violation per day so long as such violation continues. > > Should the United States bring, and prevail in, a contempt > action to enforce the terms of this Decree, Defendants > shall, in addition to other remedies, reimburse the United > States for its attorneys* fees, investigational expenses, > expert witness fees, travel expenses incurred by attorneys > and witnesses, and administrative court costs relating to > such contempt proceedings. > > > And finally, just to make sure everybody knows who's in > charge, here's what the agreement says about final > judgment: > > All decisions specified in this Decree shall be vested in > the discretion of FDA and shall be final. > > In other words, the FDA is the King. It is above the law. > It answers to no one but itself. > > Welcome to the United States of Tyranny, FDA style. > > The full text of the FDA's agreement, including the > names of the top FDA criminals who signed it, is included at > the end of this article. > > This brand of tyranny is reserved for health supplement > companies > While the FDA gives drug companies a free pass of easy > approval for dangerous drugs, this Consent Decree is the > kind of treatment it slams down upon health product > companies. As you can see from the text in the decree, > above, this is a document of outright tyranny and > oppression. > > Any company signing this document gives the FDA all the > tools it needs to drive that company completely out of > business. Sadly, dozens of companies have signed this in > just the last year. The FDA's reign of terror is > working. It's putting health companies out of business > and forcing them to censor themselves. It even forces them > to remove all web links to information sources like > NaturalNews.com or peer-reviewed science journals. > > This is all part of the FDA's campaign of health > illiteracy -- a war of disinformation being waged against > the American people. It is a secret war being fought out of > the view of the mainstream media (which refuses to report > this story) and far from the scrutiny of the U.S. Dept. of > Justice (which doesn't care about the real tyrants > running loose in this country). > > As I have often stated here on NaturalNews.com, the FDA is > an out-of-control, rogue agency engaged in acts of terrorism > against the American people. By itself, it is negligent in > the deaths of tens of millions of Americans, and it has > taken it upon itself to increase the body count by making > sure consumers have zero access to honest, truthful, > scientifically-validated information about the healing > properties of health supplements. > > The FDA, by any account, is a much greater threat to the > security and safety of the American people than any > terrorist group, and if the U.S. really wanted to fight > terror and tyranny, it would start by arresting top FDA > officials at gunpoint. Those targeted for arrest and > prosecution should also include the lawyers and paper > pushers involved in this very agreement (see their names on > the legal documents at the end of this article). > > In my view, these people are the real criminals at work > here. They are the masterminds of this campaign of extortion > and terror being leveled against health companies by the > rogue U.S. Food and Drug Administration. Much like > Hitler's top generals, they play an important role in > the mass disinformation that's resulting in the needless > death of millions of people. By any account, they are all > guilty of crimes against humanity and should be arrested and > prosecuted as such. We should all be so fortunate to live to > the day where we can see these white-collar criminals behind > bars, perhaps sharing their jail cells with other war > criminals from the Bush Administration. > > Sign this or you'll be arrested > What you haven't yet seen in all this is the barrage of > threats leveled against companies if they don't sign > this Consent Decree! Company executives receive both written > and verbal threats from top FDA "enforcement > officers" who claim they will "throw you in > prison" if you don't sign the agreement. > > Every major health trade show hosts an FDA compliance > officer (much like a Nazi Gestapo officer) whose job it is > to walk the show floor and threaten companies into > compliance. This includes shows like Expo West and Expo > East, where show organizers also serve as de facto FDA > agents themselves, barring the participation of exhibitors > who dare to tell the truth about their natural products. > This smacks of KGB secret police operations in the former > Soviet Union. But secret FDA police are now a reality in the > United States of America. > > NaturalNews has learned of numerous verbal threats from FDA > compliance officers directed at health supplement companies > during trade shows, including threats to "put you out > of business," "throw you in prison" or > "take every last dollar you've ever earned." > > > FDA compliance officers are the foot soldiers of the > agency's war against the truth. They seek out any health > claim that might inform consumers about the properties of > nutritional supplements, then they work to squash such > statements before they become too well known. In essence, > they are censorship officers who enforce nutritional > illiteracy and prevent knowledge from being shared. > > As such, they are acting not merely as secret police on a > mission to destroy small American businesses; they are > actually agents of disinformation, bent on destroying > knowledge and enforcing a system of mandatory ignorance. > This is entirely consistent with the FDA's history of > ordering the destruction of recipe books that promoted the > use of the natural herb stevia, among many other examples of > information suppression. > > The FDA's campaign of health illiteracy and enforced > ignorance > It is the FDA's position that there is no such thing as > any food, beverage, supplement or herb that has any health > benefit whatsoever. Merely making such a claim instantly > qualifies your product as a "new and unapproved > drug," according to the FDA. > > Officially, the FDA claims all health products are inert > and have no properties other than their macronutrients > (fiber, carbohydrates, protein, etc.). > > There is only one class of substances that have any > biological effect on the human body, the FDA claims: > Pharmaceuticals. Only those patented, synthetic chemicals > are allowed to be described as having benefits to human > health. > > This convenient position is entirely consistent with the > protection of the profits of drug companies. It's no > coincidence that the drug companies fund the FDA through > "user fees," and most FDA employees are dependent > on drug company money... except, of course, those FDA people > earning their living by extorting millions of dollars from > health product companies. > > The upshot of the FDA's campaign against health > supplements is that most of the American people remain > nutritionally illiterate, oblivious to the > scientifically-validated health benefits offered by tens of > thousands of different nutrients, plants, supplements and > products. To say that zinc speeds healing, or that vitamin D > prevents cancer, or that resveratrol lowers high cholesterol > is common sense in the scientific community, but it's a > crime in the eyes of the FDA. > > It's time to stop the FDA's reign of terror over > health supplements > It is time to end the FDA's extortion racket, restore > Free Speech rights to health supplements, and bring the > organized crime kingpins at the FDA to justice. > > NaturalNews is organizing a list of companies who wish to > help fund legal action against the FDA. We intend to take > part in a lawsuit against the FDA that would reign in the > FDA's control over nutritional supplements and defend > health freedoms for American consumers. > > To do this, we need to gather information from those > companies who are willing to help fund this legal action, > which may cost several hundred thousand dollars. If you > represent a company willing to take part in this legal > action against the FDA, contact us now at > StopTheFDA@naturalnews.com > > Simply email us your name and contact phone number. > We'll contact you to continue the conversation. Any > information sent to us is kept strictly confidential. We > will refuse to turn over such information even with a court > order. > > With enough support from the natural products community, we > will take part in the reporting and grassroots organization > of this legal action. > > We must stop the FDA now > It is the belief of NaturalNews that the FDA is being run > as a system of organized crime, using the exact same > extortion tactics as the Mob. Through intimidation, > censorship and threats of imprisonment, the FDA is right now > extorting tens of millions of dollars from the very same > health supplement companies you depend on to bring you > lifesaving, disease-reversing products. > > Even worse, the FDA is getting away with it. Backed by the > threat of imprisonment and the ability to conduct armed > raids against health product companies (see the history of > armed FDA raids against vitamin companies here: > http://www.naturalnews.com/021791.html ), the FDA is able to > overpower health product companies when they stand alone. > > > The industry must band together if it hopes to defend > itself against this tyranny. A lone villager cannot defend > himself against a band of marauders, but an organized and > well-defended band of villagers can fight off attackers many > times their size. If it wishes to survive, the natural > products industry must band together and defend itself > against the FDA. It must take back its right to tell the > truth about health supplements, and it must forever banish > censorship and ignorance from the health products > marketplace. > > The FDA will not stop its reign of terror, you see, until > every health supplement companies is silenced, every company > founder is imprisoned and every consumer is enslaved in a > state of outright nutritional illiteracy. They will seize > products and let them rot in warehouses; they'll recruit > armed law enforcement personnel to conduct SWAT-style raids > on vitamin shops; they'll extort millions of dollars > from health companies and pocket the profits; and > they'll do it all while burning taxpayer dollars and > claiming they're working to "protect" > consumers from natural health products like cherry juice > concentrate, which is of course so incredibly dangerous that > we need an entire government agency just to make sure we > don't find out it might ease arthritis inflammation. > > What you can do right now to help halt the FDA's reign > of terror > As a consumer, you can use your voice to help stop the FDA > from destroying the natural products marketplace. Simply go > to www.ReformFDA.org and sign the petition there. > > It's sponsored by the American Association for Health > Freedom (AAHF), an organization fighting to end the > FDA's tyrannical rule over the health of the American > people. > > Sign that petition and spread the word: NaturalNews and the > AAHF are working together to bring back honesty, freedom and > free speech to the health supplements industry, and we need > your help to get it done. > > You can also protest the FDA with your Congressperson or > Senator. Contact them and insist that they support efforts > to end the reign of FDA tyranny and reestablish Free Speech > rights for nutritional supplement companies. > > Notably, Rep. Ron Paul has sponsored the Health Freedom > Protection Act, which you can read here: > http://www.StopFDACensorship.org > > Grab your cameras, folks > Finally, NaturalNews urges those in the natural health > community to go out and buy video cameras and still cameras > and start snapping photos of rogue FDA agents arresting > people, seizing products, accepting bribes or other > outrageous acts. We cannot simply lie down and let the FDA > march in to our company warehouses and seize products. One > video can change the world. It's up to you to get that > video recorded and get it to us here at NaturalNews. Use our > feedback form to contact us: > www.NaturalNews.com/feedback.html > > We've also opened up an audio tips line, where FDA > employees who wish to leak information to NaturalNews can > anonymously call us and leave a message: (323) 924-1664 > > With your help, we will soon start publishing videos and > photos showing FDA agents directly engaged in acts of > tyranny against health companies. And for those who'd > like to earn some extra money snapping photos, we're > willing to pay you for photos of FDA "compliance > officers" walking trade show floors where they threaten > companies in person. Contact us for details if you're a > photographer with a long lens who would like to start > earning money snapping photos of FDA agents engaged in their > dirty work. > > It's time to shed light on the real actions of the FDA. > We can no longer sit back and allow this criminal > organization to operate in secret. But grabbing the > public's attention all comes down to getting this on > video. This is the YouTube era. If it's not on video, it > doesn't exist. But if it's on video, we can likely > get it on mainstream news. (I can see it now: the FDA raids > a warehouse and handcuffs the screaming, crying business > owner. And why? Because their bottle said, "Eases > inflammation." The public won't stand for it.) > > The FDA, of course, will have its own people doing the same > thing to people like me. They're trying to catch us > eating at McDonald's or going through the local pharmacy > drive-thru. All I can say about that is they'll be > waiting a long, long time to see that day! > > > Please forward this story to everyone you know. We the > People must either prevail in this fight for our freedom, or > we will all end up illiterate, imprisoned or silenced. The > FDA will take away your rights, your speech and your health, > and it will laugh all the way to the bank while it steals > your hard-earned money. It will break every law, ignore > every court order and commit every crime necessary to bring > health companies into line... UNLESS we fight back and do > our part to end this grave threat to our health, safety and > freedoms. > > The FDA is the enemy of the People. It is a criminal > organization bent on destroying American freedoms and > consumer health. It operates with impunity, using its own > secret compliance officers, wreaking death and destruction > across our nation like a dark plague unleashed. If we hope > to ever regain our health, our freedoms and the basic human > right to tell the truth about the healing properties of > simple foods, then we must bring this agency to justice and > prosecute its mob bosses for their many crimes against the > People. > > It is time to stand up for your health freedoms, or lose > them forever. Please join me in this courageous stand > against tyranny and oppression. > > - Mike Adams, the Health Ranger, editor of NaturalNews.com > > The Full Consent Decree of Permanent Injunction > Here's the full text of the Consent Decree in case you > want to read it yourself. > > February 12, 2008 3:11 PM > > RONALD C. WESTON, SR., CLERK > > U.S. DISTRICT COURT WESTERN DISTRICT OF MICHIGAN > > IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN > DISTRICT OF MICHIGAN SOUTHERN DIVISION > > UNITED STATES OF AMERICA, > > Plaintiff, > > v. > > BROWNWOOD ACRES FOODS, INC., and CHERRY CAPITAL SERVICES, > INC. d.b.a. FLAVONOID SCIENCES, corporations, and STEPHEN C. > de TAR and ROBERT L. UNDERWOOD, individuals, > > Defendants. > > Plaintiff, United States of America, having commenced this > action by filing its Complaint for Permanent Injunction, and > Brownwood Acres Foods, Inc. ("Brownwood Acres") > and Cherry Capital Services, Inc., d.b.a. Flavonoid Sciences > ("Cherry Capital"), corporations, and Stephen C. > de Tar and Robert L. Underwood, individuals (hereafter > collectively, "Defendants"), having appeared and > consented to the entry of this Decree without contest and > before any testimony was taken, and the United States of > America, having consented to this Decree; > > IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows: 1. > This Court has jurisdiction over the subject matter of this > action and has personal jurisdiction over all parties to > this action. > > CIVIL NO > > 1:08-cv-148 > > HON Paul L Maloney > > US District Judge > > CONSENT DECREE OF PERMANENT INJUNCTION > > 2. The Complaint for Permanent Injunction states a cause of > action against Defendants under the Federal Food, Drug, and > Cosmetic Act, 21 U.S.C. §§ 301-397 (the "Act"). > > 3. Defendants violate the Act, 21 U.S.C. § 331 (d), by > introducing or delivering for introduction, or causing to be > introduced or delivered for introduction, into interstate > commerce new drugs within the meaning of 21 U.S.C. § 321 > (p) that are neither approved under 21 U.S.C. § 355(a), nor > exempt from approval pursuant to 21 U.S.C. § 355(t). > > 4. Defendants violate the Act, 21 U.S.C. § 331 (a), by > introducing or delivering for introduction, or causing to be > introduced or delivered for introduction, into interstate > commerce articles of drug that are misbranded within the > meaning of 21 U.S.C. § 352(f)(1). > > 5. Defendants violate the Act, 21 U.S.C. § 331(a), by > introducing or delivering for introduction, or causing to be > introduced or delivered for introduction, into interstate > commerce food that is misbranded within the meaning of 21 > U.S.C. §343(r)(1)(B). > > 6. Upon entry of this Decree, Defendants and each and all > of their directors, officers, agents, representatives, > employees, attorneys, successors, assigns, and any and all > persons in active concert or participation with any of them > who receive actual notice of this Decree by personal service > or otherwise, are permanently restrained and enjoined from > introducing or delivering for introduction, or causing to be > introduced or delivered for introduction, into interstate > commerce any product unless and until: > > > A. An approved new drug application or abbreviated new drug > application filed pursuant to 21 U.S.C. § 355(a) or (j) is > effective with respect to the product; or > > B. An effective investigational new drug exemption filed > pursuant to 21 U.S.C. § 355(i) is in effect for the > product; or > > C. The product's claims comport with an authorized > health claim set forth in 21 C.F.R. § 101.72-101.83; or > > D. Defendants have received a letter of enforcement > discretion for a qualified health claim from FDA for that > product; or > > E. Defendants have: > > (i) removed all claims from Defendants' product labels, > labeling, promotional materials, websites owned or > controlled by Defendants, and in any other media that cause > that product to be a drug and/or contain unapproved or > unauthorized health claims within the meaning of the Act; > and > > (ii) removed, from their product labels, labeling, > promotional materials, and websites owned or controlled by > Defendants, references to or endorsements of any other > website that conveys information about Defendants' > products that cause those products to be a drug and/or > contain unapproved or unauthorized health claims within the > meaning of the Act. > > 7. Upon entry of this Decree, Defendants and each and all > of their directors, officers, agents, representatives, > employees, attorneys, successors, assigns, and any and all > persons in active concert or participation with any of them > who receive actual > > notice of this Decree by personal service or otherwise, are > permanently restrained and enjoined from directly or > indirectly doing or causing to be done any act that: > > A. Violates 21 U.S.C. § 331(d), by introducing or > delivering for introduction, or causing to be introduced or > delivered for introduction, into interstate commerce new > drugs within the meaning of 21 U.S.C. § 321 (p) that are > neither approved pursuant to 21 U.S.C. § 355(a), nor exempt > from approval pursuant to 21 U.S.C. §355(i); > > B. Violates 21 U.S.C. § 331(a), by introducing or > delivering for introduction, or causing to be introduced or > delivered for introduction, into interstate commerce > articles of drug that are misbranded within the meaning of > 21 U.S.C. > > § 352(f)(1); and > > C. Violates 21 U.S.C. § 331(a), by introducing or > delivering for introduction, or causing to be introduced or > delivered for introduction, into interstate commerce food > that is misbranded within the meaning of 21 U.S.C. § > 343(r)(1)(B). > > 8. Within ten (10) calendar days of FDA's request for > any labels, labeling, promotional materials, and/or > downloaded copies (on CD-Rom) of any internet websites owned > or controlled by Defendants or websites referenced by, > endorsed, or adopted directly or indirectly by Defendants, > Defendants shall submit a copy of the requested materials to > FDA at the address specified in paragraph 19. > > 9. Within twenty (20) calendar days of entry of this > Decree, Defendants shall submit to FDA a certification of > compliance, signed by each of the individually-named > Defendants in this matter, each Defendant stating that he: > (a) has personally reviewed > > all of Defendants' product labels, labeling, > promotional materials, and the internet websites referred to > in paragraph 8 above; and (b) personally certifies that the > product labels, labeling, promotional materials, and > internet websites strictly comply with the requirements of > the Act and its regulations and do not include unapproved or > unauthorized claims that the products cure, mitigate, treat, > prevent and/or reduce the risk of disease. Thereafter, > Defendants shall submit certifications of compliance every > three (3) months for a period of two (2) years. > > 10. Within fourteen (14) calendar days of entry of this > Decree, Defendants shall retain an independent person or > persons (the "expert"), without personal, > financial (other than the consulting agreement between the > parties), or familial ties to Defendants or their immediate > families, who by reason of background, experience, > education, and training is qualified to assess > Defendants' compliance with the Act, to review the > claims Defendants make for all of their products on their > product labels, labeling, promotional material, any internet > websites owned or controlled by Defendants, including, but > not limited to, the websites referred to in paragraph 8 > above. At the conclusion of the expert's review, the > expert shall prepare a written report analyzing whether > Defendants are operating in compliance with the Act and in > particular, certify whether Defendants have omitted all > claims from their product labels, labeling, promotional > materials, websites owned or controlled by Defendants, and > in any other media, that make any of their products drugs > and/or constitute unapproved or unauthorized health claims > within the meaning of the Act. The expert shall also review > Defendants' product labels, labeling, promotional > materials, and websites owned or controlled by Defendants to > determine whether these include any references to or > endorsements of any other > > > websites that convey information about Defendants' > products that cause those products to be a drug and/or > contain unapproved or unauthorized health claims within the > meaning of the Act, and certify in the written report > whether Defendants have omitted any such references or > endorsements. The expert shall submit this report to FDA and > Defendants within thirty-five (35) calendar days of the > entry of this Decree. If the expert reports any violations > of the Act, Defendants shall, within seven (7) calendar days > of receipt of the report, correct those deviations, unless > FDA notifies Defendants that a shorter time period is > necessary. > > 11. If, at any time after this Decree has been entered, FDA > determines, based on the results of an inspection, the > analyses of Defendants' product labels, labeling, > promotional materials, websites owned or controlled by > Defendants, or websites referenced by, endorsed, or adopted > directly or indirectly by Defendants that convey information > about Defendants' products, a report prepared by > Defendants' expert, or any other information, that > additional corrective actions are necessary to achieve > compliance with the Act, applicable regulations, or this > Decree, FDA may, as and when it deems necessary, direct > Defendants, in writing, to take one or more of the actions: > > A. Cease manufacturing, processing, packing, labeling, > holding, and/or distributing any article(s); > > B. Submit additional reports or information to FDA; > > C. Recall any article(s) at Defendants' expense; or > > D. Take any other reasonable corrective action(s) as FDA, > in its discretion, deems necessary to bring Defendants and > their products into compliance with the Act, applicable > regulations, and this Decree. > > 12. Any cessation of operations as described above shall > continue until FDA notifies Defendants in writing that > Defendants appear to be in compliance with the.Act and the > requirements of this Decree, and that Defendants may resume > operations. Such notification by FDA may not be unreasonably > delayed. > > 13. Duly authorized representatives of FDA shall be > permitted, without prior notice and as and when FDA deems > necessary, to make inspections of Defendants' facilities > and, without prior notice, take any other measures necessary > to monitor and ensure continuing compliance with the terms > of this Decree. During such inspections, FDA representatives > shall be permitted prompt access to buildings, equipment, > in-process and finished materials, containers, labeling and > other materials therein; to take photographs and make video > recordings; to take samples of Defendants' finished and > unfinished materials and products, containers, labels, > labeling, and other promotional materials; and to examine > and copy all records relating to the receipt, manufacture, > processing, packing, labeling, promoting, holding, and > distribution of any and all Defendants' products in > order to ensure continuing compliance with the terms of this > Decree. The inspections shall be permitted upon presentation > of a copy of this Decree and appropriate credentials. The > inspection authority granted by this Decree is separate > from, and in addition to, the authority to conduct > inspections under the Act, 21 U.S.C. §374. > > 14. Defendants shall reimburse FDA for the costs of all FDA > inspections, investigations, supervision, reviews, > examinations, and analyses specified in this Decree or that > FDA deems necessary to evaluate Defendants' compliance > with this Decree. For the purposes of this Decree, > inspections include FDA's review and > > analysis of Defendants' claims for their products in > the product labels, labeling, promotional materials, any and > all websites owned or controlled by Defendants, and any and > all websites referenced by, endorsed, or adopted directly or > indirectly by Defendants that convey information about > Defendants' products. The costs of such inspections > shall be borne by Defendants at the prevailing rates in > effect at the time the costs are incurred. As of the date > that this Decree is signed by the parties, these rates are: > $78.09 per hour and fraction thereof per representative for > inspection work; $93.61 per hour or fraction thereof per > representative for analytical or review work; $0,485 per > mile for travel expenses by automobile; government rate or > the equivalent for travel by air or other means; and the > published government per diem rate or the equivalent for the > areas in which the inspections are performed per-day, > per-representative for subsistence expenses, where > necessary. In the event that the standard rates applicable > to FDA supervision of court-ordered compliance are modified, > these rates shall be increased or decreased without further > order of the Court. > > > 15. Within ten (10) calendar days after the entry of this > Decree, Defendants shall provide a copy of this Decree, by > personal service or certified mail (restricted delivery, > return receipt requested), to each and all of its directors, > officers, agents, representatives, employees, successors, > assigns, attorneys, and any and all persons in active > concert or participation with any of them (including > "doing business as" entities) (hereafter > collectively referred to as "associated persons"). > Wthin thirty-five (35) calendar days of the date of entry of > this Decree, Defendants shall provide to FDA an affidavit of > compliance, stating the fact and manner of compliance with > the provisions of this paragraph and identifying the names > and positions of all associated persons who > > have received a copy of this Decree and the manner of > notification. In the event that Defendants become > associated, at any time after the entry of this Decree, with > new associated persons, Defendants shall: (a) within fifteen > (15) calendar days of such association, provide a copy of > this Decree to each such associated person by personal > service or certified mail (restricted delivery, return > receipt requested), and (b) on a quarterly basis, notify FDA > in writing when, how, and to whom the Decree was provided. > > 16. Within ten (10) calendar days of entry of this Decree, > Defendants shall post a copy of this Decree on a bulletin > board in a common area at any of their manufacturing or > distribution facilities, and shall ensure that the Decree > remains posted for a period of twelve (12) months at each > location. > > 17. Wthin ten (10) calendar days of entry of this Decree, > Defendants shall provide FDA a list of all domain names and > IP addresses they use to market or describe any product, > regardless of whether such sites mention specific products > Defendants sell. Defendants thereafter shall notify FDA > within ten (10) days of any change to this list (either > additions or deletions). > > 18. Defendants shall notify the District Director, FDA > Detroit District Office, in writing at least fifteen (15) > calendar days before any change in ownership, character, or > name of its business, such as dissolution, assignment, or > sale resulting in the emergence of a successor corporation, > the creation or dissolution of subsidiaries, franchises, > affiliates, or "doing business as" entities, or > any other change in the corporate structure of Defendants > Brownwood Acres or Cherry Capital, or in the sale or > assignment of any business assets, such as buildings, > equipment, or inventory, that may affect compliance with > this Decree. Defendants shall provide a copy of this Decree > to any potential successor or assignee at least fifteen (15) > calendar days before any sale or assignment. Defendants > shall furnish FDA with an affidavit of compliance with this > paragraph no later than ten (10) calendar days prior to such > assignment or change in ownership. > > 19. All notifications, certifications, reports, > correspondence, and other communications to FDA required by > this Decree shall be addressed to the Director, FDA Detroit > District Office, 300 River Place, Suite 5900, Detroit, > Michigan 48207. > > 20. If Defendants fail to comply with any of the provisions > of this Decree, including any time frame imposed by this > Decree, then, on motion of the United States in this > proceeding, Defendants Brownwood Acres and/or Cherry Capital > shall pay to the United States of America the sum of one > thousand dollars ($1,000) in liquidated damages per > violation per day so long as such violation continues. For > the purposes of this paragraph, a "violation" is > defined as each time any Defendant introduces or delivers > for introduction into interstate commerce any product that > is accompanied by (on the product's label, labeling, > promotional materials, websites owned or controlled by > Defendants, or in any other media) a claim(s) that causes > the product to be a drug or constitutes a health claim > within the meaning of the Act, unless the product is an > approved new drug or such claim is authorized by FDA. > > 21. Should the United States bring, and prevail in, a > contempt action to enforce the terms of this Decree, > Defendants shall, in addition to other remedies, reimburse > the United States for its attorneys* fees, investigational > expenses, expert witness fees, travel expenses incurred by > attorneys and witnesses, and administrative court costs > relating to such contempt proceedings. > > > 22. All decisions specified in this Decree shall be vested > in the discretion of FDA and shall be final. If contested, > FDA's decisions under this Decree shall be reviewed by > the Court under the arbitrary and capricious standard set > forth in 5 U.S.C. § 706(2)(A). Review shall be based > exclusively on the written record before FDA at the time the > decision was made. No discovery shall be taken by either > party. > > 23. If, in FDA's judgment, Defendants maintain a > continuous state of compliance with this Decree and the Act > for a period of three (3) years after the date of entry of > this Decree, and FDA has not notified Defendants that there > has been a significant violation of this Decree or the Act > during such time, the government will not oppose > Defendants' petition to the Court to dissolve the > Decree. > > 24. This Court retains jurisdiction of this action for the > purpose of enforcing or modifying this Decree and for the > purpose of granting such additional relief as may be > necessary or appropriate. > > IT IS SO ORDERED: > > Dated this_day of_, 2008. > > UNITED STATES DISTRICT JUDGE > > > FOR PLAINTIFF > > CHARLES R. GROSS > United States Attorney Western District of Michigan > > W. FRANCESCA FERGUSON > Assistant U.S. Attorney > > ALAN J. PHELPS > Trial Attorney > Office of Consumer Litigation Department of Justice Civil > Division P.O. Box 386 Washington, D.C. 20044 > > OF COUNSEL: > > JAMES C. STANSEL > Acting General Counsel > > GERALD F. MASOUDI > Chief Counsel > Food and Drug Division > > ERIC M. BLUMBERG > > > > > > I choose Polesoft Lockspam to fight spam, and you? > http://www.polesoft.com/refer.html |
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