Firm Behind ‘Smiling Bob’ Settles With States Over Ads

California and 15 other states have reached a multimillion-dollar settlement with a company that was accused of deceptively marketing dietary supplements to treat a variety of problems, including sexual dysfunction, state officials said Thursday.

Berkeley Premium Nutraceuticals and related companies will pay $2.5 million to the states for investigative, legal and other costs and must make refunds to consumers. The companies would have to pay the states another $2.5 million if they fail to comply with the terms of the settlement, based on complaints of deceptive sales practices.

Berkeley is behind the “Smiling Bob” ads that depict a man whose life greatly improves after he uses its Enzyte for “natural male enhancement.” The company markets a variety of other products, including those that it claims improve night vision and the female libido.

“Smiling Bob may have been happy, but many customers were not,” California Atty. Gen. Bill Lockyer said in a statement.

Most consumer complaints stemmed from the company’s offer of a free trial that was followed by automatic billing of consumers’ credit cards, state officials said.

The company agreed to stop using the word “free” in its advertising, stop making health claims it can’t support with scientific evidence, inform consumers about billing terms and retain recordings of telemarketing calls, the officials said.

While agreeing to the terms to resolve the litigation, Berkeley and its owner, Steve Warshak, admit no wrongdoing and “specifically deny the allegations,” the settlement says.

Berkeley attorney Jonathan Saxton did not return a phone message seeking comment.