670 Companies Warned of $50k+ Penalties for Unsubstantiated Product Claims

๐Ÿ“‹ The Federal Trade Commission (FTC) has issued penalty offense notices to 670 companies, urging them to substantiate their product claims to avoid hefty civil penalties exceeding $50,000. These notices come after similar warnings related to endorsements, testimonials, education practices, and money-making opportunities.

These penalty offense notices warn companies of specific deceptive practices they should avoid, and the takeaways regarding product claim substantiation include:
โŒ DO NOT make product claims without any reliable evidence to support them.
โŒ DO NOT make health or safety claims without proper scientific evidence that has been objectively evaluated by qualified individuals and accepted by the professional community.
โŒ DO NOT promote a product as a cure, mitigation, or treatment for a serious disease without conducting and relying on a well-designed human clinical trial that meets specific criteria.
โŒ DO NOT misrepresent the level or type of evidence backing a claim.
โŒ DO NOT assert that a product claim has been scientifically or clinically proven without enough evidence to convince the relevant scientific community.

In short, companies should be able to adequately back up what they say in their advertising – and they need to gather their evidence for their claims before they are made.

Although there is some controversy over the FTC’s use of their authority in sending these notices regarding substantiation, two things are clear:
๐Ÿ”นthe FTC isn’t playing games, and
๐Ÿ”นit is crucial for marketers and manufacturers to comply with regulatory guidelines to ensure their marketing is accurate, valid, and not harmful to consumers.

๐Ÿ“Œ If you need guidance or have questions about substantiating your product claims or how to comply with marketing regulations, don’t hesitate to reach out to our team at Your Ad Attorney, Inc. We are here to assist you in navigating these important legal considerations with ease.

#marketinglaw #advertisinglaw #legal


Alina Lee

Alina Lee, Founder of Your Ad Attorney law firm


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