The Federal Trade Commission (FTC), the US agency that promotes consumer protection, has sent warning letters to almost 700 marketing companies, warning them that they could face penalties if they can’t back up product claims.
Notices of penalty offences were sent to approximately 670 companies involved in the marketing of OTC drugs, homeopathic products, dietary supplements or functional foods.
In the US, the Food and Drug Administration (FDA) categorises products including sunscreen, antidandruff shampoo, acne care and hand sanitiser as OTC drugs.
The FTC’s ‘hit list’ includes major names in cosmetics and personal care, such as Johnson & Johnson Consumer Inc, The Procter & Gamble Company, Unilever PLC and Unilever United States Inc, Church & Dwight Co, Reckitt Benckiser Group PLC and Reckitt Benckiser LLC, and The Honest Company Inc.
US drugstores Walgreens Boots Alliance Inc, Duane Reade Inc and CVS Pharmacy Inc have also received warning letters.
Under FTC law, companies must back up claims about what their products can do with reliable evidence.
“The requirement for advertisers to have adequate support for their advertising claims at the time they’re made is a bedrock principle of FTC law,” said Sam Levine, Director of the FTC’s Bureau of Consumer Protection.
“The prospect of steep civil penalties will help ensure that advertisers don’t play fast and loose with the truth.”
What constitutes an offence?
Unlawful acts and practices outlined in the FTC’s notices are said to encompass failing to include:
- a reasonable basis consisting of competent and reliable evidence for objective product claims;
- competent and reliable scientific evidence to support health or safety claims; and
- at least one well-controlled human clinical trial to support claims that a product is effective in curing, mitigating, or treating a serious disease.
Unlawful acts or practices also include misrepresenting the level or type of substantiation for a claim, and misrepresenting that a product claim has been scientifically or clinically proven.
Notices of penalty offences allow the FTC to seek civil penalties of up to US$50,120 per violation.
The initial distribution of the notice is limited to those making or likely to make health claims.
But the FTC stressed that the notice is not limited to health claims, and applies to any marketer making claims about the efficacy or performance of its products.
A full list of the recipients of the FTC’s notice of penalty offences concerning substantiation of product claims can be found here.
The FTC noted that a recipient’s inclusion on the list does not in any way suggest that it has engaged in deceptive or unfair conduct.
Read more:
- How to avoid falling foul of advertising regulations when using beauty filters
- Deodorant advert with dirty talking polar bear slammed by UK watchdog
- Cosmetic industry bodies welcome US' Modernization of Cosmetics Regulation Act
