New York, NY – March 10, 2005 – The Electronic Retailing Self-Regulation Program (“ERSP”), the electronic direct-response industry’s self-regulatory forum supervised by the National Advertising Review Council (“NARC”), announced that direct response marketer Preferred Health Resources has provided a reasonable basis for general performance claims communicated for its PeeNuts Nutritional Prostate Supplement product in a 30-minute infomercial and online advertising, and agreed to qualify other product claims included in its advertisement. The truth and accuracy of the marketer’s claims came to the attention of ERSP through an anonymous consumer challenge.

Although the marketer informed ERSP that the infomercial had been discontinued, because the claims at issue were still being disseminated when the case was commenced, ERSP continued with its inquiry. ERSP requested that the marketer provide substantiation for several core claims communicated in its advertising for the PeeNuts Nutritional Prostate Supplement, including: exclusivity claims (“No other prostate product in the world GUARANTEES CLINICAL RESULTS!)”; superiority claims (“PeeNuts is guaranteed to be the safest and most effective prostate formula available. It contains only the purist and most potent ingredients that are documented to relieve symptoms associated with prostate disorders.“); and performance claims (“PEENUTS is expected to improve symptoms dramatically in three days to six weeks.; “Lower your voiding symptoms score.”; and “PeeNuts will reduce your PSA level and symptoms with 6 months usage.”).

ERSP concluded that the marketer did provide a reasonable basis for the general claims  of product performance (“PeeNuts lowers PSA levels”  and  “Lower your EPS”).  However, it was recommended that  the marketer modify the more  specific, quantified claims  of product performance (“PeeNuts is expected to improve symptoms dramatically in 3 days…”), in the absence of a showing that a significant number of product users can expect  the explicitly stated results. Further, as the marketer’s evidence did  not include a comprehensive assessment of competitive prostate products on the marketplace, ERSP recommended that  it discontinue its unqualified superiority and  exclusivity claims  until  such  research is conducted.

In response to the ERSP decision, Preferred Health Resources stated that  it “…appreciate[d] the constructive suggestions brought forward by ERSP,” and  that  it “will  take the recommendations made by ERSP into consideration in our future advertising and  look forward to a cordial working relationship moving forward.”