Capsules claimed to cure dermatitis and prevent flu.
A Rotorua retailer claiming deer velvet capsules cured dermatitis and helped prevent colds and flu has admitted breaching the Fair Trading Act. An investigation of the retailer by the Commerce Commission also found an employee at the store wore a name badge falsely claiming he was a doctor.
New Zealand Wild Deer Velvet and its director Hee Ja Yoo entered into a settlement agreement with the commission last month admitting to making false and misleading representations under the Act.
The company’s claims included statements that deer velvet diabetes capsules “would allow diabetics to replace insulin injections” and that deer velvet contained an immune hormone that “cures atopic dermatitis”.
It also falsely claimed its premises were “government approved”, a “duty free area”, and that an employee was a Ministry of Agriculture and Forestry representative.
The company, which sold products to international shopping tour groups, has ceased operating and given an undertaking it will notify the commission if it resumes trade. Mrs Yoo has also given an undertaking she will notify the commission if she becomes involved in the management or operation of any other company and must provide the commission with a proposed compliance programme.