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TX AG Temporarily Shuts Down BioPerformance
Texas Attorney General's office filed a lawsuit and obtained a
temporary restraining order and asset freeze against Texas-based BioPerformance,
Inc. for allegedly running a pyramid scheme promoting a fuel economy product
that they allege to be bogus.
by Sterling
D. Allan
Pure Energy Systems News
Copyright © 2006
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AUSTIN, TX, USA -- Texas Attorney General (TX AG) Greg Abbott today filed a
lawsuit and obtained a temporary restraining order and asset freeze against
Texas-based BioPerformance Inc., a multi-level marketing company that sells a
pill/powder additive said to increase fuel economy.
TX AG alleges that BioPerformance Inc "is organized as an illegal pyramid
scheme", and that it markets a fuel pill that "falsely claims will
boost gas mileage and save consumers money."
Accordingly, the http://mybpbiz.com website has
been taken offline.
Two days prior, the Better Business Bureau of Dallas updated its report on
BioPerformance, citing 14 complaints, many of which have been resolved.
Overall, it gave BioPerformance an "unsatisfactory" rating "due
to its failure to substantiate or modify advertising claims advertising
claims." (Ref.)
The TX AG press release reported that "scientists who tested the product at
the University of Texas at Austin and at a Florida university concluded that the
pills are mainly naphthalene (Ref.),
the chemical found in mothballs. The Attorney Generals laboratory expert
actually concluded BioPerformance's product could decrease engine
performance."
When the University of Central Florida tests were reported by Florida television
station WESH on May 4, the manufacturer of BioPerformance responded by saying
that the product contains a close analogue to Naphthalene. They said that
Naphthelenate is non-toxic and also has been shown to have a positive effect on
fuel economy. (Ref.)
The close chemical composition is what accounts for the similar profile in the
chemical tests performed by the university comparing BioPerformance and
Naphthalene, which is toxic. A Materials Safety Data Sheet published for
the product certifies it as safe (ref.),
as do two independent tests done by ISO-9000-certified laboratories (ref)
(ref).
Top line chemical spectrum by University
of Central Florida shows BioPerformance, compared to the lower line,
which is naphthalene. |
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Chromatograph comparison was also analogous. |
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Naphthenate chemical
signature missing in BioPerformance (WESH) |
May 21 Update
Upon seeing the BioPerformance rebuttal
that BP contains Naphthelenate, not Naphthalene, the University of
Central Florida checked the product again, and once again
concluded: Naphthalene.
The phone number on the MSDS sheet goes to a person's cell phone
with a message: "If this is about BioPerformance or BioPlus,
I am not affiliated with either one." (WESH;
May 16, 2006) |
June 1 Update (ref)
The difference between Naphthalene and Naphthenate is one carbon.
In the BioPerformance product, that one carbon is associated with
the enzyme that makes the product what it is in terms of its
performance. At 102 degrees Fahrenheit, the enzymes begin to break
down. At 116 degrees, they are inactivated.
The process used by the chemists to determine the chemical
composition entails heating the product in an oven, which
obviously is going to effect the enzyme. What effectively happens
is that the Naphthenate-enzyme molecule is transformed into
Naphthalene.
This heat factor may also explain why some customers do not see
results -- the product having been deactivated in the heat found
at some point in delivery, such as a hot mail truck. |
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The manufacturer's statement also cited numerous positive performance results
reported by customers.
BioPerofrmance Inc. has also been mentioning and looking forward to an extensive
study by the University of Ohio that is due out any day, which allegedly will
give the product a clean bill of health in terms of its safety and its positive
effects on fuel economy. The University of Ohio report will have high
credibility inasmuch as they specialize in these types of studies. Their
study has been under way for many weeks, and will be highly exhaustive and
scientific.
No fuel enhancement product works the same on all vehicles or with all
fuels. There are many variables that enter the equation when fuel economy
is concerned. This has been true of BioPerformance.
Dr. Peter A. Lindemann (Ref.), who is a
distributor for BioPerformance, says "At least 90% of the people who try it
get positive results and more that 50% get excellent results." That
leaves around ten percent not getting positive results. The author is one
who has received marginal results.
There are a number of reasons for marginal or even negative results when they
appear. (Ref.)
For example, a siphon guard in some fuel nozzles prevents BioPerformance pills
from reaching the tank. Also, the pill can get situated behind the
splashguard where they are not washed into the tank by the fuel nozzle that
reaches well past the splashguard. In other cases, the O2 sensor prevents
the positive economy improvements, until a work-around is installed, at which
time positive results are then seen.
From their beginning in December, 2005, BioPerformance has employed a leading
multi-level marketing attorney, to make sure that their company was in
compliance with the law. A letter today from the BioPerformance President,
Lowell Mims to the 50,000-plus distributors said, "We are right now working
with our Attorneys to vigorously defend our Company."
Mims assured his dealers: "When you are successful in your industry a lot
of people take shots at you.... Just like Amway, Herbalife and Mary Kay, we will
come out of this challenge stronger than ever!"
The opening statement of the TX AG press release states: "The company's ads
claim the gasoline pills and powders they offer have a non-toxic 'top secret gas
pill' that can increase fuel efficiency by 30 percent or more and cut
harmful emissions by up to 50 percent."
That is incorrect. BioPerformance has been adamant with its dealers that
the wording of their advertising should be that the product "saves up to 25%
or more" on fuel usage. The company also requires its dealers to
prominently post a disclaimer in all presentations, saying that the company does
not guarantee any results.
The TX AG press release also incorrectly stated one of the start-up dealership
cost numbers as being $300, when it is actually $200.
However, it may be that in the area of pyramid schemes that BioPerformance will
have a harder time defending itself.
According to Texas law (§ 17.461(a)(6) of the DTPA), an illegal pyramid
promotional scheme is defined as: "a pyramid promotional scheme is a plan
or operation by which a person gives consideration for the opportunity to
receive compensation that is derived primarily from a person's introduction of
other persons to participate in the plan or operation rather than from the sale
of a product by a person introduced into the plan or operation."
As of the end of April, the ratio of customers to dealers in BioPerformance was
2:1. The profit on product sales to customers is typically much less than
the profit from new dealer sign-ups. So the math is likely to be quite
close on the profit from product versus the profit from new dealer
sign-ups. The amount of product required to be purchased by each dealer to
stay active may be what pulls the numbers in favor of product sales, redeeming
the company from this allegation.
Note: (May 19, 2006)
The purchase price for a dealership includes product, the retail value
of which is nearly the same as the cost of the dealership sign-up.
So when it comes to sign-up versus product ratio, there is effectively
no isolated expense for dealer sign-up. |
Violations of the Texas Deceptive Trade Practices Act and the promotion of an
illegal pyramid scheme can result in penalties of $20,000 per violation.
The company has been high on hype and low on science, which may make it
difficult to survive this present setback. While they have received
thousands of testimonials, they only publish the positive reports. They do
not yet have a database chronicling all results in an objective manner.
BioPerformance dealer, Jacob Matian, sent an email to his downline today
stating: "I have a lady named Melanie in my downline that has reported
that 4 people that she gave the product to had their fuel injectors
fail. She had contacted Bioperformance and got no response about replacing
the damaged parts."
The TX AG suit requests restitution by BioPerformance to consumers who have been
financially harmed by the false promises of this operation.
Texas consumers who encounter a business that is making false claims or appears
to be operating as a pyramid scheme may file a complaint with the Attorney
Generals Consumer Protection Division at (800) 252-8011 or file a complaint
online at http://www.oag.state.tx.us
# # #
REFERENCES
DISCLOSURE
- PES Network, Inc. is a dealer for BioPerformance, and carries an independent
coverage of the product at PESWiki.com
ACKNOWLEDGEMENT
IN THE NEWS
CONTACT
Texas Attorney General's Office:
(512) 463-2100
By U.S. Mail:
Office of the Attorney General
PO Box 12548
Austin, TX 78711-2548
Physical Address:
Office of the Attorney General
300 W. 15th Street
Austin, TX 78701
Follow-up
- State
of TX vs. BioPerformance Fuel, Inc. - Judge allows hearing to
proceed despite "fatal flaws", which he declined to hear until end
of the hearing. Judge lets the prosecution spend inordinate time on
irrelevant matters regarding charges it dropped at the outset. (May 31,
2006)
- Vindicated
- Federal Test Procedure and Highway Fuel Economy Test protocols of
the Environmental Protection Agency show that BioPerformance fuel
additive increases mileage and decreases emissions, contrary to Texas
Attorney General accusations that shut down the company last May.
(January 23, 2007)
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See also
Page composed by Sterling
D. Allan May 17, 2006
Last updated January 24, 2007
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