ERSP Refers Zantrex-3 To The FTC

New York, NY October 20, 2004 – The Electronic Retailing Self-Regulation Program (“ERSP”), the electronic direct-response industry’s self-regulatory forum, announced that it will refer advertising by Basic Research for its dietary supplement, Zantrex-3, to the Federal Trade Commission (“FTC”). The truth and accuracy of the marketer’s claims came to the attention of ERSP through its routine and on-going monitoring program.

The core claims in print advertising for Zantrex- 3 at issue were: 243% more effective than the other leading diet pills and “the number one selling diet pill in America.”

Basic Research decided not to address the quantified claims made in their print advertising. Following ERSP procedures, the marketer’s actions have compelled the self-regulatory forum to refer this inquiry to the FTC in order to address ERSP’s preliminary concerns with the advertising in the Zantrex-3 print advertisements.

ERSP was launched on August 1, 2004 with policy oversight provided by National Advertising Review Council (“NARC”) to look at the truth and accuracy of claims in direct response marketing. The direct response industry, which includes long form (infomercial) productions, short-form commercials, live home shopping channels, Internet marketing and radio advertising generated estimated revenues of $256 billion in 2003 alone. This self-regulatory forum inquires about the truth and accuracy of claims in both short and long format direct response advertising brought to ERSP’s attention through consumer or competitor challenges and ERSP’s own ongoing monitoring program.