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Bernardo T. Chua is from the Philippines and has worked for years in multi-level marketing.
Career edit
Gano Excel edit
Since 1999, Chua worked as an executive with Gano Excel, first in the Philippines. After three years he helped expand Gano Excel to Hong Kong and Canada and then to the United States. Chua moved to California and became president of Gano Excel U.S.A.[1] Gano Excel marketed products with ganoderma in them. These products included capsules, instant coffee and other food products.
Problems arose with Gano Excel's products. In April 2004, the U.S. Food and Drug Administration (FDA) sent Chua a warning letter concerning various claims made about its products and ganoderma itself. The FDA took exception to the company's claims that its products helped detect hidden diseases, helped remove excess cholesterol and removed toxins from the body. Further, the FDA objected to the "Testimony" section of Gano Excel's website as promoting "Gano Excel for the treatment of gout, diabetes, and psoriasis."[1]
In February 2005, Gano Excel issued a recall and allergy alert concerning some of its products. This resulted after Health Canada, the government health agency of Canada, conducted tests revealing the presence of milk protein, which was not declared on the product label.[2]
Organo edit
In 2008, Chua left Gano Excel and founded Organo Gold,[3] which comprises a group of companies operating under trading names of Organo Gold and Coffee Connoisseur. Their products include a range of coffee products containing Ganoderma lucidum from the lingzhi mushroom, and personal care items sold as "nutraceuticals", promoted and sold through a multi-level marketing distribution network.[3]
In 2014, the Italian government sanctioned Organo Gold Europe for operating a pyramid type promotional system, and fined it 500,000 euros along with Vemma Italia and Asea Italy.[4] The Italian authority explained the sanctions were for operating an illegal business model where people pay to enter a compensation scheme which paid for recruiting others, but rarely included the actual selling of products; that the recruiting information was misleading and cited earning potential was unrealistic; and for using "misleading claims about curative capacities of products which were unproven through appropriate certification". Organo argued that their Ganoderma drink was "effective in the prophylaxis of nervous, vascular and cancer diseases without side effects".[4]
A 2014 report by CBS MoneyWatch uncovered a series of consumer complaints and controversies. CBS reported that the Federal Trade Commission had 55 complaints, mostly regarding inflated potential earnings and misrepresentation of the effectiveness of its products. The Better Business Bureau reported 39 complaints in the prior 3 years and gave the company a C+ rating for poor customer service, especially concerning cancelling products or memberships. It was also disclosed that Organo had falsely declared it was a member of Direct Selling Association.[3][5]
References edit
- ^ a b
- "Los Angeles District Director Alonza E. Cruse, letter to Chua, April 15, 2004". Casewatch.
- "Inspections, Compliance, Enforcement, and Criminal Investigations : Gano Excel U.S.A. Inc. : Warning letter". Food and Drug Administration. April 15, 2004. Archived from the original on November 2, 2014.
- ^ "Gano Excel USA, Inc. Issues Recall and Allergy Alert on Undeclared Milk Protein in GANO CAFE 3-IN-1, GANO CAFE GINSENG TONGKAT ALI, and GANO C'REAL SPIRULINA OATS". Food and Drug Administration. Archived from the original on May 27, 2011. Retrieved April 15, 2011.
- ^ a b c Berr, Jonathan (March 11, 2014). "Coffee marketer Organo Gold brews up controversy". CBS MoneyWatch.
- ^ a b
- "PS7621 - PS8171 - PS8202 - Pyramid sales: Antitrust starts investigation on multi-level illegal sales and applies sanctions to Vemma Italia, Asea Italy and Organo Gold Europe for improper commercial practices with fines equal to total 500,000 euros". Italian Competition Authority. March 10, 2014.
- "Vendite piramidali, Antitrust multa 3 società per 500mila euro : Sanzionate Vemma Italia, Asea Italy e Organo Gold Europe" [Pyramid sales, Antitrust fines 3 companies 500 thousand euros: Vemma Italia, Asea Italy and Organo Gold Europe fined] (in Italian). La Stampa. March 10, 2014. Archived from the original on October 18, 2014.
- ^ "Organo Gold y la investigación del Canal 5 de Noticias de Estados Unidos" [Organo Gold and the investigation of Channel 5 of News of the United States]. estafasmlm.com (in Spanish).