Acne-Statin inventor responds to misleading FTC statements.

LOS ANGELES--(BUSINESS WIRE)--July 30, 1996--The maker of Acne-Statin, a leading and only non-prescription, hypoallergenic acne treatment with no side effects and used successfully by millions of Americans for more than 20 years, called Tuesday's statement by the Federal Trade Commission "an attempt to once again mislead the public into thinking that the Acne-Statin is not an effective treatment for acne, while the agency knows that valid scientific data supports all claims the company has ever made."

"Today's statement by the FTC which announced that Eton Derma Laboratories Inc., Dr. Atida Karr's company, had agreed to pay $200,000 to settle a lawsuit filed by the FTC conveniently neglected to mention that this settlement agreement was only entered into after the FTC lost a critical hearing in federal court in which the court denied its request to enjoin Dr. Karr from continuing to market her acne-care product in the manner that she had been doing in the past," said Stephen Webb, Acne-Statin attorney.

"The FTC statement is also misleading in that the settlement agreement does permit Dr. Karr to continue marketing Acne-Statin in the manner that she has over the past many years with only minor revisions to her infomercial.

"While the FTC has tried to turn this case into a major victory, in fact, it is Dr. Karr who has been vindicated and is permitted to continue to market her safe and successful acne treatment unhampered," Webb continued.

Acne-Statin agreed to a consent decree settlement which imposes a penalty and some limitations on Acne-Statin's advertising. "In fact the settlement was the commission's suggestion, fearing further litigation that would prove how the FTC and pharmaceutical companies have banded together to halt sales of Acne-Statin," said Atida Karr, inventor of Acne-Statin.

"The relatively lenient penalty of $200,000 paid in four installments over three-and-a-half years without interest is proof that the FTC was eager to settle this case out of court."

"We were fully prepared to present our case in federal court, and with the evidence we uncovered, had every confidence that we would win. However, we decided it would be in the public's best interest for us to put this vindictive and frivolous FTC matter behind us, and continue to help acne sufferers rather than waste our funds and energy fighting a lengthy litigation battle," Karr added.

Acne-Statin has been under attack by the FTC since 1977 when it first became clear to dermatologists that the product was an effective method of treating people resistant to conventional therapy (Retin A, benzoyle peroxide and tetracycline) and also helped many patients who suffer from severe and cystic acne.

Although the company conducted independent double-blind clinical studies which proved the product's effectiveness, the FTC rejected these studies without examining the raw data and after consulting with an anonymous dermatologist who Dr. Karr recently discovered was in charge of approving Accutane by the FDA in 1980. Strictly a conflict of interest.

Accutane is a prescription medication for the treatment of severe and cystic acne. The medical literature is replete with cases of severe side effects and birth defects brought on by Accutane and the PDR includes pages of these warnings.

Interestingly, but not surprisingly, in documents uncovered by Dr. Karr's attorneys, it was discovered that every expert dermatologist utilized by the FTC in his case was closely tied to large pharmaceutical companies, one of which produces Retin A and Accutane. "There has never been any truly independent outside dermatologist called upon by the FTC to give advice or testimony in connection with this case," Webb said.

"Both the FTC and FDA have come under repeated attacks for the incestuous relationship of employees and consultants of the agencies and the large pharmaceutical companies. What has transpired in this case is proof that this relationship exists, and that in this case, the FTC and FDA did not operate in the public interest, but rather, to the public's detriment," Webb added.

"This entire case has been an FTC cover-up," Dr. Karr said. "Not only is the FTC helping to promote a drug with numerous potentially catastrophic side effects as Accutane, it has worked hard to prevent the Acne-Statin true story from being told.

"People are entitled to hear Acne-Statin's story and learn about medical alternatives, especially when the alternative is proven safe, effective and has no side effects. To keep this information from the public -- so that big business can profit -- is nothing less than criminal and damaging to the public."

Acne-Statin was invented by Dr. Atida Karr more than 20 years ago and to date more than 5 million bottles have been sold, with minimal advertising (only 6 years out of 20). Because of its effectiveness, it gained immense popularity and sales increased through positive word of mouth.

"Acne is a visible disease," Dr. Karr added. "People just have to look in the mirror to see if a product works. The thousands of unsolicited letters from satisfied customers we have received thanking us for saving their lives and sanity is proof that Acne-Statin and Acne-Statin Kit work," Dr. Karr said.

"Our mission is to help acne sufferers, not engage in legal entanglements that divert our attention and funds and deprive acne sufferers from the help they so desperately need. Now that this matter is put to rest, we can and will continue serving the public with our product which everyone knows -- including the FTC and pharmaceutical companies -- is effective and the safest treatment for severe and cystic acne," Dr. Karr added.

"Realizing that their case was evaporating in front of them, the government entered into a face-saving settlement and then issued a grossly misleading news release implying that they had won some major victory, when in fact it is Dr. Karr who was vindicated and is permitted to continue to market her successful acne-care product," Webb reiterated.

CONTACT: Acne-Statin

Media Relations, 213/655-4288