Consumer NZ has described aspects of marketing by Dunedin company Ayrmed as ‘‘a concern’’ — advertising a facial serum using terms shoppers may interpret as ‘‘implying proven therapeutic benefits that have not been substantiated’’.
It said using the term ‘‘miraculous’’ was prohibited by the Advertising Standards Authority’s therapeutic and health advertising code.
When asked about the business’s marketing, Dunedin Mayor Sophie Barker referred comment to director and co-owner Jim O’Malley — saying her role in the business was ‘‘as a shareholder, as outlined in my register of interests’’.
Dr O’Malley did not directly respond to questions, but threatened to sue for defamation and complain to police if Otago Daily Times published an article.
‘‘It is my opinion that the ODT is waging a campaign against the sitting mayor and my company Ayrmed has become a collateral target,’’ he said.
Ms Barker did not answer follow-up questions.
New Zealand Companies Office documents show Ayrmed Ltd was incorporated in November 2018, and Ms Barker was listed as a director until March 2022, alongside Dr O’Malley.
Dr O’Malley, a former city councillor, is now the sole director, and the company’s two shares are spilt between the pair.
Ayrmed’s website and promotional material lists a range of benefits for its collagen serum, which retails for $65 for a 50ml bottle, including that it ‘‘miraculously boosts skin repair’’.
The terms ‘‘magic’’ and ‘‘miraculous’’ are used both in unnamed testimonials and by the company.
Consumer NZ head of research and advocacy Gemma Rasmussen said advertisers must not describe products or services as magical or miraculous under the Advertising Standards Authority’s therapeutic and health advertising code.
‘‘[The terms] risk misleading consumers about what a product can realistically do,’’ she said.
Businesses also had obligations under the Fair Trading Act, which prohibited misleading or deceptive representations.
‘‘Ayrmed marketing a product using terms like ‘magic' or ‘miraculous' is a concern because shoppers may interpret those words as implying proven therapeutic benefits that have not been substantiated.’’
University of Otago marketing department professor of consumer behaviour Robert Aitken highlighted the unattributed quotes.
Prof Aitken stood by his key concern after being included in an email from Dr O’Malley warning university vice-chancellor Grant Robertson he would also sue the institution if the comments were not withdrawn.
‘‘My comment and concerns were that it is not clear in the advertisement itself that the terms miraculous and magic were provided by customer testimonials,’’ Prof Aitken said.
Without attribution to an individual, shoppers may assume the claims were made by the company, which, as Consumer NZ noted, was inappropriate for therapeutic products, he said.
Dr O’Malley did not respond to ODT questions.
On Friday, he included the newspaper in the email to Mr Robertson, asking Prof Aitken’s comments be withdrawn.
Dr O’Malley said Prof Aitken’s comments were ‘‘offensive, inaccurate ... prejudicial’’ and, in his opinion, amounted to defamation.
‘‘If the ODT publishes Prof Aitken’s statements, I will have no option but to clear Ayrmed’s name by suing both the University of Otago and the ODT for deformation [sic] ...’’
The testimonials were provided by volunteers who were given the serum, he said.
‘‘The testimonial claims are also generic. It is my opinion that the type of statements such and ‘magic’ and ‘miraculous’ are typical of statements made in the cosmetics industry.’’
Dr O’Malley also said if an article was published, he would lay a complaint with police under the Harmful Digital Communication Act 2015.
