New Zealand / Health

'Woefully inadequate and utterly unscientific'

20:46 pm on 20 August 2018

A health supplement company director's nosebleeds led to it lowering the amount of deer velvet powder in its pills.

Photo: 123rf.com

During the sixth day of a disputed facts hearing between the Commerce Commission, and Silberhorn's, the court heard evidence from sole director Ian Carline.

The company - now known as Gateway Solutions Limited - has admitted 26 charges under the Fair Trading Act related to diluting its deer velvet with carob between 2011 and 2015.

It also pleaded guilty to one count of withholding information from the Commerce Commission, as did Mr Carline.

The deer velvet pills were labelled as containing 250 milligrams, in fact they contained substantially less.

The question for the court is whether Silberhorn meant to misled the public with its labelling or if it was an oversight.

"I have used myself and others as guinea pigs"

Mr Carline said his product was higher quality - following a change to the drying process - so technically they misled, but not by intention.

Judge Kevin Phillips asked him: "Upon what basis was the assessment done?"

"It's the effectiveness on myself sir, as a guinea pig," Mr Carline said.

"Throughout my involvement with Silberhorn, I have used myself and others as guinea pigs. Sir Colin Meads would try the product - I would get his opinion.

"I would be the first one to try the product and that's when I had the reality moment with the nosebleeds."

Mr Carline told the court high doses of deer velvet could cause nosebleeds.

He used this to draw "imperial" conclusions about the potency of his product following the change to the drying process - a process which was suppressed due to commercial sensitivity.

But the commission's lawyer, John Dixon QC, slammed the process which led to his conclusion as "woefully inadequate and utterly unscientific".

Mr Carline said he disagreed with that assessment.

The key revelation came when Mr Carline conceded to Mr Dixon that the product contained less deer velvet than the labels indicated.

Mr Carline responded to questions as to whether he knew there was less deer velvet in the pills, saying: "I was aware, yes."

Mr Dixon asked further: "You gave that instruction [for pills to contain less than 250mg deer velvet] knowing that label specified something different - something more?"

"That is correct," Mr Carline said, before offering an explanation that the potency of the velvet meant less was required.

In his estimation the deer velvet was "twice as effective" as before.

Evidence is expected to conclude on Wednesday.

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