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COMMISSIONERS: Rebecca Kelly Slaughter, Acting Chairwoman 

Noah Joshua Phillips

Rohit Chopra

Christine S. Wilson 

In the Matter of

BASF SE, a corporation, 

BASF CORPORATION, a corporation, and

DIEM LABS, LLC, a limited liability company, 

et al.

DOCKET NO. C-4745

DECISION AND ORDER AS TO

RESPONDENTS DIEM LABS, LLC AND

RELATED INDIVIDUALS

DECISION

The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and 

practices of the Respondents named in the caption. The Commission’s Bureau of Consumer 

Protection (“BCP”) prepared and furnished to Respondents a draft Complaint. BCP proposed to 

present the draft Complaint to the Commission for its consideration. If issued by the 

Commission, the draft Complaint would charge the Respondents with violations of the Federal 

Trade Commission Act.

Respondents and BCP thereafter executed an Agreement Containing Consent Order 

(“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondents that 

they neither admit nor deny any of the allegations in the Complaint, except as specifically stated 

in this Decision and Order, and that only for purposes of this action, they admit the facts 

necessary to establish jurisdiction; and 2) waivers and other provisions as required by the 

Commission’s Rules.

The Commission considered the matter and determined that it had reason to believe that 

Respondents have violated the Federal Trade Commission Act, and that a Complaint should 

issue stating its charges in that respect. The Commission accepted the executed Consent 

Agreement and placed it on the public record for a period of 30 days for the receipt and 

consideration of public comments. The Commission duly considered any comments received 

from interested persons pursuant to Section 2.34 of its Rules, 16 C.F.R. § 2.34. Now, in further 

conformity with the procedure prescribed in Rule 2.34, the Commission issues its Complaint, 

makes the following Findings, and issues the following Order: 
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Findings

1. The Proposed Respondents are:

a. DIEM Labs, LLC, (“DIEM”) a Michigan limited liability company, with its principal

office or place of business at 221 Dino Dr., Ann Arbor, MI 48103-9123.

b. Cai Berg, an officer of DIEM. Individually or in concert with others, he formulates,

directs, or controls the policies, acts, or practices of DIEM. His principal office or place

of business is the same as that of DIEM.

c. Tim Prince, an officer of DIEM Labs, LLC. Individually or in concert with others, he

formulates, directs, or controls the policies, acts, or practices of DIEM Labs, LLC. His

principal office or place of business is the same as that of DIEM.

2. The Commission has jurisdiction over the subject matter of this proceeding and over the

Respondents, and the proceeding is in the public interest.

ORDER

Definitions

For the purpose of this Order, the following definitions apply: 

A. “Covered Product” means Hepaxa, Hepaxa PD, and any other Dietary Supplement,

Food, or Drug that contains one or more Omega-3 fatty acids or is promoted by a

Respondent or its subsidiary to benefit cardiac, metabolic, or hepatic health or functions,

including the prevention, mitigation, treatment, or cure of any disease of such systems.

B. “Dietary Supplement” means: (1) any product labeled as a Dietary Supplement or

otherwise represented as a Dietary Supplement; or (2) any pill, tablet, capsule, powder,

softgel, gelcap, liquid, or other similar form containing one or more ingredients that are a

vitamin, mineral, herb or other botanical, amino acid, probiotic, or other dietary

substance for use by humans to supplement the diet by increasing the total dietary intake,

or a concentrate, metabolite, constituent, extract, or combination of any ingredient

described above, that is intended to be ingested, and is not represented to be used as a

conventional food or as a sole item of a meal or the diet.

C. “Drug” means: (1) articles recognized in the official United States Pharmacopoeia,

official Homoeopathic Pharmacopoeia of the United States, or official National

Formulary, or any supplement to any of them; (2) articles intended for use in the

diagnosis, cure, mitigation, treatment, or prevention of disease in humans; (3) articles

(other than Food) intended to affect the structure or any function of the body of humans;

and (4) articles intended for use as a component of any article specified in (1), (2), or (3);

but does not include devices or their components, parts, or accessories.
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D. “Essentially Equivalent Product” means a product that contains the identical

ingredients, except for inactive ingredients (e.g., binders, colors, fillers, excipients) in the

same form and dosage, and with the same route of administration (e.g., orally,

sublingually), as the Covered Product; provided that the Covered Product may contain

additional ingredients if reliable scientific evidence generally accepted by experts in the

field indicates that the amount and combination of additional ingredients is unlikely to

impede or inhibit the effectiveness of the ingredients in the Essentially Equivalent

Product.

E. “Food” means: (1) any article used for Food or drink for humans; (2) chewing gum; and

(3) any article used for components of any such article.

F. “Respondents” means means all of the Individual Respondents and the Corporate

Respondents, individually, collectively, or in any combination.

1. “Corporate Respondents” means DIEM Labs, LLC, and its successors and assigns,

including DIEM Direct, LLC.

2. “Individual Respondents” means Cai Berg and Tim Prince.

Provisions 

I. Prohibited Representations: Regarding Health-Related Claims Requiring Human

Clinical Testing for Substantiation

IT IS ORDERED that Respondents, Respondents’ officers, agents, employees, and 

attorneys, and all other persons in active concert or participation with any of them, who receive 

actual notice of this Order, whether acting directly or indirectly, in connection with the labeling, 

advertising, promotion, offering for sale, sale, or distribution of any Covered Product, must not 

make, expressly or by implication, including through the use of a product or program name, 

endorsement, depiction, or illustration, any representation that such product reduces liver fat in 

adults or children with Non-alcoholic Fatty Liver Disease (NAFLD), or cures, mitigates, or treats 

any disease, including but not limited to liver disease, unless the representation is nonmisleading, and, at the time of making such representation, they possess and rely upon 

competent and reliable scientific evidence substantiating that the representation is true. For 

purposes of this Provision, competent and reliable scientific evidence must consist of human 

clinical testing of the Covered Product, or of an Essentially Equivalent Product, that is sufficient 

in quality and quantity based on standards generally accepted by experts in the relevant disease, 

condition, or function to which the representation relates, when considered in light of the entire 

body of relevant and reliable scientific evidence, to substantiate that the representation is true. 

Such testing must be: (1) randomized, double-blind, and placebo-controlled; and (2) conducted 

by researchers qualified by training and experience to conduct such testing. In addition, all 

underlying or supporting data and documents generally accepted by experts in the field as 

relevant to an assessment of such testing as described in the Provision entitled Preservation of 

Records Relating to Competent and Reliable Human Clinical Tests or Studies must be available 
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for inspection and production to the Commission. Persons covered by this Provision have the 

burden of proving that a product satisfies the definition of Essentially Equivalent Product. 

II. Prohibited Claims: Other Health-Related Claims

IT IS FURTHER ORDERED that Respondents, Respondents’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, whether acting directly or indirectly, in connection 

with the labeling, advertising, promotion, offering for sale, sale, or distribution of any Covered 

Product, must not make, expressly or by implication, including through the use of a product or 

program name, endorsement, depiction, or illustration, any representation, other than 

representations covered under the Provision of this Order entitled Prohibited Representations: 

Regarding Health-Related Claims Requiring Human Clinical Testing for Substantiation, about 

the health benefits, performance, efficacy, safety, or side effects of any Covered Product, unless 

the representation is non-misleading, and, at the time of making such representation, they possess 

and rely upon competent and reliable scientific evidence that is sufficient in quality and quantity 

based on standards generally accepted by experts in the relevant disease, condition, or function to 

which the representation relates, when considered in light of the entire body of relevant and 

reliable scientific evidence, to substantiate that the representation is true. 

For purposes of this Provision, competent and reliable scientific evidence means tests, 

analyses, research, or studies (1) that have been conducted and evaluated in an objective manner 

by experts in the relevant disease, condition, or function to which the representation relates; (2) 

that are generally accepted by such experts to yield accurate and reliable results; and (3) that are 

randomized, double-blind, and placebo-controlled human clinical testing of the Covered Product, 

or of an Essentially Equivalent Product, when such experts would generally require such human 

clinical testing to substantiate that the representation is true. In addition, when such tests or 

studies are human clinical tests or studies, all underlying or supporting data and documents 

generally accepted by experts in the field as relevant to an assessment of such testing as set forth 

in the Provision entitled Preservation of Records Relating to Competent and Reliable Human 

Clinical Tests or Studies must be available for inspection and production to the Commission. 

Persons covered by this Provision have the burden of proving that a product satisfies the 

definition of Essentially Equivalent Product. 

III. Prohibited Misrepresentations Regarding Tests, Studies, or Other Research

IT IS FURTHER ORDERED that Respondents, Respondents’ officers, agents, 

employees, and attorneys, and all other persons in active concert or participation with any of 

them, who receive actual notice of this Order, whether acting directly or indirectly, in connection 

with the labeling, advertising, promotion, offering for sale, sale, or distribution of any Covered 

Product, must not misrepresent, in any manner, expressly or by implication, including through 

the use of any product or program name, endorsement, depiction, or illustration: 

A. that any Covered Product is clinically proven to reduce liver fat in adults or children

with NAFLD;
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B. that any Covered Product is clinically proven to cure, mitigate, or treat any disease; 

C. that the health benefits, performance, or safety of any Covered Product is 

scientifically or clinically proven or otherwise established; or

D. the existence, contents, validity, results, conclusions, or interpretations of any test, 

study, or research relating to the health benefits, performance, safety, or side effects 

of any Covered Product.

IV. FDA-Approved Claims

IT IS FURTHER ORDERED that nothing in this Order prohibits Respondents, 

Respondents’ officers, agents, employees, and attorneys, or all other persons in active concert or 

participation with any of them from:

A. for any Drug, making a representation that is approved in labeling for such Drug 

under any tentative final or final monograph promulgated by the Food and Drug 

Administration, or under any new Drug application approved by the Food and Drug 

Administration; and

B. for any product, making a representation that is specifically authorized for use in 

labeling for such product by regulations promulgated by the Food and Drug 

Administration pursuant to the Nutrition Labeling and Education Act of 1990 or 

permitted under Sections 303-304 of the Food and Drug Administration 

Modernization Act of 1997.

V. Preservation of Records Relating to Competent and Reliable 

Human Clinical Tests or Studies

IT IS FURTHER ORDERED that, with regard to any human clinical test or study 

(“test”) upon which Respondents rely to substantiate any claim covered by this Order, 

Respondents must secure and preserve all underlying or supporting data and documents 

generally accepted by experts in the field as relevant to an assessment of the test, including:

A. all protocols and protocol amendments, reports, articles, write-ups, or other accounts 

of the results of the test, and drafts of such documents reviewed by the test sponsor or 

any other person not employed by the research entity;

B. all documents referring or relating to recruitment; randomization; instructions, 

including oral instructions, to participants; and participant compliance;

C. documents sufficient to identify all test participants, including any participants who 

did not complete the test, and all communications with any participants relating to the 

test; all raw data collected from participants enrolled in the test, including any 

participants who did not complete the test; source documents for such data; any data 

dictionaries; and any case report forms;
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D. all documents referring or relating to any statistical analysis of any test data, 

including any pretest analysis, intent-to-treat analysis, or between-group analysis 

performed on any test data; and 

E. all documents referring or relating to the sponsorship of the test, including all 

communications and contracts between any sponsor and the test’s researchers.

Provided, however, the preceding preservation requirement does not apply to a reliably 

reported test, unless the test was conducted, controlled, or sponsored, in whole or in part, by: (1) 

the Respondent; (2) the Respondent’s officers, agents, representatives, or employees; (3) any 

other person or entity in active concert or participation with the Respondent; (4) any person or 

entity affiliated with or acting on behalf of the Respondent; (5) any supplier of any ingredient 

contained in the product at issue to any of the foregoing or to the product’s manufacturer; or (6) 

the supplier or manufacturer of such product.

For purposes of this Provision, “reliably reported test” means a report of the test has been 

published in a peer-reviewed journal, and such published report provides sufficient information 

about the test for experts in the relevant field to assess the reliability of the results.

For any test conducted, controlled, or sponsored, in whole or in part, by the Respondent, the 

Respondent must establish and maintain reasonable procedures to protect the confidentiality, 

security, and integrity of any personal information collected from or about participants. These 

procedures must be documented in writing and must contain administrative, technical, and 

physical safeguards appropriate to the Respondent’s size and complexity, the nature and scope of 

the Respondent’s activities, and the sensitivity of the personal information collected from or 

about the participants. 

VI. Monetary Relief

IT IS FURTHER ORDERED that:

A. Respondents must pay to the Commission $157,318, which Respondents stipulate

their counsel, Kane Kessler, P.C., holds in escrow for no purpose other than payment 

to the Commission. 

B. Such payment must be made within 8 days of the effective date of this Order by 

electronic fund transfer in accordance with instructions provided by a representative 

of the Commission.

VII. Additional Monetary Provisions

IT IS FURTHER ORDERED that:

A. Respondents relinquish dominion and all legal and equitable right, title, and interest 

in all assets transferred pursuant to this Order and may not seek the return of any 

assets.
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B. The facts alleged in the Complaint will be taken as true, without further proof, in any

subsequent civil litigation by or on behalf of the Commission, including in a 

proceeding to enforce its rights to any payment or monetary judgment pursuant to 

this Order, such as a nondischargeability complaint in any bankruptcy case.

C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the Commission pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 

11 U.S.C. § 523(a)(2)(A), and this Order will have collateral estoppel effect for such 

purposes.

D. All money paid to the Commission pursuant to this Order may be deposited into a 

fund administered by the Commission or its designee to be used for relief, including 

consumer redress and any attendant expenses for the administration of any redress 

fund. If a representative of the Commission decides that direct redress to consumers 

is wholly or partially impracticable or money remains after redress is completed, the 

Commission may apply any remaining money for such other relief (including 

consumer information remedies) as it determines to be reasonably related to 

Respondent’s practices alleged in the Complaint. Any money not used is to be 

deposited to the U.S. Treasury. Respondent has no right to challenge any activities 

pursuant to this Provision.

E. In the event of default on any obligation to make payment under this Order, interest, 

computed as if pursuant to 28 U.S.C. § 1961(a), shall accrue from the date of default 

to the date of payment. In the event such default continues for 10 days beyond the 

date that payment is due, the entire amount will immediately become due and 

payable.

F. Each day of nonpayment is a violation through continuing failure to obey or neglect 

to obey a final order of the Commission and thus will be deemed a separate offense 

and violation for which a civil penalty shall accrue.

G. Respondents acknowledge that their Taxpayer Identification Numbers (Social 

Security or Employer Identification Numbers), which Respondents have previously 

submitted to the Commission, may be used for collecting and reporting on any 

delinquent amount arising out of this Order, in accordance with 31 U.S.C. § 7701.

VIII. Customer Information

IT IS FURTHER ORDERED that Respondents, Respondents’ officers, agents, 

employees, and attorneys, or all other persons in active concert or participation with any of them, 

must directly or indirectly provide sufficient customer information, including sufficient 

identification of all resellers, to enable the Commission to efficiently administer consumer 

redress to purchasers of Hepaxa and Hepaxa PD. If a representative of the Commission requests 

in writing any information related to redress, Respondents must provide it, in the form prescribed 

by the Commission, within 14 days. 
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IX. Acknowledgments of the Order

IT IS FURTHER ORDERED that Respondents obtain acknowledgments of receipt of 

this Order:

A. Each Respondent, within 10 days after the effective date of this Order, must submit to 

the Commission an acknowledgment of receipt of this Order. 

B. Each Individual Respondent for any business that such Respondent, individually or 

collectively with any other Respondents, is the majority owner or controls directly or 

indirectly, and each Corporate Respondent, must deliver a copy of this Order to: (1) 

all principals, officers, directors, and LLC managers and members; (2) all employees, 

agents, and representatives with managerial responsibilities for conduct related to the 

subject matter of the Order; and (3) any business entity resulting from any change in 

structure as set forth in the Provision titled Compliance Reports and Notices. 

Delivery must occur within 10 days after the effective date of this Order for current 

personnel. For all others, delivery must occur before they assume their 

responsibilities.

C. From each individual or entity to which a Respondent delivered a copy of this Order, 

that Respondent must obtain, within 30 days, a signed and dated acknowledgment of 

receipt of this Order.

X. Compliance Reports and Notices

IT IS FURTHER ORDERED that Respondents make timely submissions to the 

Commission:

A. One year after the issuance date of this Order, each Respondent must submit a 

compliance report, sworn under penalty of perjury, in which:

1. Each Respondent must: (a) identify the primary physical, postal, and email address 

and telephone number, as designated points of contact, which representatives of the 

Commission, may use to communicate with Respondent; (b) identify all of that 

Respondent’s businesses by all of their names, telephone numbers, and physical, 

postal, email, and Internet addresses; (c) describe the activities of each business, 

including the goods and services offered, the means of advertising, marketing, and 

sales, and the involvement of any other Respondent (which Individual Respondents 

must describe if they know or should know due to their own involvement); (d) 

describe in detail whether and how that Respondent is in compliance with each 

Provision of this Order, including a discussion of all of the changes the Respondent 

made to comply with the Order; and (e) provide a copy of each Acknowledgment of 

the Order obtained pursuant to this Order, unless previously submitted to the 

Commission.
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2. Additionally, each Individual Respondent must: (a) identify all his or her telephone 

numbers and all his or her physical, postal, email and Internet addresses, including all 

residences; (b) identify all his or her business activities, including any business for 

which such Respondent performs services whether as an employee or otherwise and 

any entity in which such Respondent has any ownership interest; and (c) describe in 

detail such Respondent’s involvement in each such business activity, including title, 

role, responsibilities, participation, authority, control, and any ownership.

B. For a period of 10 years after the issuance date of the Order, each Respondent must 

submit a compliance notice, sworn under penalty of perjury, within 14 days of any 

change in the following: 

1. Each Respondent must submit notice of any change in: (a) any designated point of 

contact; or (b) the structure of any Corporate Respondent or any entity that 

Respondent has any ownership interest in or controls directly or indirectly that may 

affect compliance obligations arising under this Order, including: creation, merger, 

sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in 

any acts or practices subject to this Order.

2. Additionally, each Individual Respondent must submit notice of any change in: (a) 

name, including alias or fictitious name, or residence address; or (b) title or role in 

any business activity that may affect compliance obligations under the order,

including (i) any business for which such Respondent performs services whether as 

an employee or otherwise, and (ii) any entity in which such Respondent has any 

ownership interest and over which Respondents have direct or indirect control. For 

each such business activity, also identify its name, physical address, and any Internet 

address.

C. Each Respondent must submit notice of the filing of any bankruptcy petition, insolvency 

proceeding, or similar proceeding by or against such Respondent within 14 days of its 

filing.

D. Any submission to the Commission required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by 

concluding: “I declare under penalty of perjury under the laws of the United States of 

America that the foregoing is true and correct. Executed on: _____” and supplying the 

date, signatory’s full name, title (if applicable), and signature.

E. Unless otherwise directed by a Commission representative in writing, all submissions to 

the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by 

overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 

NW, Washington, DC 20580. The subject line must begin: In re DIEM Labs, LLC.
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XI. Recordkeeping

IT IS FURTHER ORDERED that Respondents must create certain records for 10 years 

after the issuance date of the Order, and retain each such record for 5 years. Specifically, 

Corporate Respondent and each Individual Respondent for any business relating to a Covered 

Product that such Respondent, individually or collectively with any other Respondents, is a 

majority owner or controls directly or indirectly, must create and retain the following records:

A. accounting records showing the revenues from such products; 

B. personnel records showing, for each person providing services in relation to any 

aspect of the Order, whether as an employee or otherwise, that person’s: name; 

addresses; telephone numbers; job title or position; dates of service; and (if 

applicable) the reason for termination;

C. records of all consumer complaints concerning the subject matter of the order and all 

refund requests, whether received directly or indirectly, such as through a third party, 

and any response; 

D. all records necessary to demonstrate full compliance with each provision of this 

Order, including all submissions to the Commission; 

E. a copy of each unique advertisement or other marketing material making a 

representation subject to this Order;

F. for 5 years from the date of the last dissemination of any representation covered by 

this Order:

1. all materials that were relied upon in making the representation; and

2. all tests, studies, analysis, demonstrations, other research or other such evidence 

in Respondent’s possession, custody, or control that contradicts, qualifies, or 

otherwise calls into question the representation, or the basis relied upon for the 

representation, including complaints and other communications with consumers or 

with governmental or consumer protection organizations.

G. for 5 years from the date received, copies of all subpoenas and other communications 

with law enforcement, if such communication relate to Respondents’ compliance with 

this Order.

H. for 5 years from the date created or received, all records, whether prepared by or on 

behalf of Respondents, that demonstrate non-compliance or tend to show any lack of 

compliance by Respondents with this Order.
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XII. Compliance Monitoring

IT IS FURTHER ORDERED that, for the purpose of monitoring Respondents’

compliance with this Order: 

A. Within 10 days of receipt of a written request from a representative of the 

Commission, each Respondent must: submit additional compliance reports or other 

requested information, which must be sworn under penalty of perjury; appear for 

depositions; and produce documents for inspection and copying. The Commission is 

also authorized to obtain discovery, without further leave of court, using any of the 

procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including 

telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to communicate 

directly with each Respondent. Respondents must permit representatives of the 

Commission to interview any employee or other person affiliated with Respondent

who has agreed to such an interview. The person interviewed may have counsel 

present.

C. The Commission may use all other lawful means, including posing, through its 

representatives as consumers, suppliers, or other individuals or entities, to 

Respondents or any individual or entity affiliated with Respondents, without the 

necessity of identification or prior notice. Nothing in this Order limits the 

Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the 

FTC Act, 15 U.S.C. §§ 49, 57b-1.

D. Upon written request from a representative of the Commission, any consumer 

reporting agency must furnish consumer reports concerning Individual Respondents, 

pursuant to Section 604(2) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(2).

XIII. Order Effective Dates

IT IS FURTHER ORDERED that this Order is final and effective upon the date of its 

publication on the Commission’s website (ftc.gov) as a final order. This Order will terminate 20 

years from the date of its issuance (which date may be stated at the end of this Order, near the 

Commission’s seal), or 20 years from the most recent date that the United States or the 

Commission files a complaint (with or without an accompanying settlement) in federal court 

alleging any violation of this Order, whichever comes later; provided, however, that the filing of 

such a complaint will not affect the duration of:

A. Any Provision in this Order that terminates in less than 20 years;

B. This Order’s application to any Respondent that is not named as a defendant in such 

complaint; and

C. This Order if such complaint is filed after the Order has terminated pursuant to this 
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Provision. 

Provided, further, that if such complaint is dismissed or a federal court rules that the 

Respondent did not violate any provision of the Order, and the dismissal or ruling is either not 

appealed or upheld on appeal, then the Order will terminate according to this Provision as though 

the complaint had never been filed, except that the Order will not terminate between the date 

such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the 

date such dismissal or ruling is upheld on appeal. 

By the Commission. 

April J. Tabor 

Secretary 

SEAL: 

ISSUED: May 25, 2021