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FTC Warns Marketing Companies Over Unsubstantiated Product Claims

The Federal Trade Commission (FTC) has warned nearly 700 marketing companies advertising over-the-counter drugs, homeopathic products, dietary supplements, and functional foods against making deceptive claims about their products. Companies failing to provide reliable evidence supporting product claims could face civil penalties of up to $50,120 per violation.

FTC law requires companies to back up product claims, especially health or safety benefits, with scientific evidence and testing. The FTC has sent notices to approximately 670 companies reminding them of these legal requirements and outlining unlawful practices, such as misrepresenting substantiation for a claim or falsely claiming endorsements.

A full list of businesses receiving the notice is available on the FTC's website. The notice is not limited to health claims and applies to any marketer making claims about the efficacy or performance of their products.

On March 31, 2023, the Commission voted 3-1 to approve the substantiation notice and authorize the distribution of both notices. Then-Commissioner Christine S. Wilson voted no and issued a separate statement on her final day as a Commissioner. Commissioner Rebecca Kelly Slaughter issued a statement, joined by Chair Lina M. Khan and Commissioner Alvaro Bedoya.

The Federal Trade Commission (FTC) is an independent U.S. government agency that protects consumers and promotes fair competition by enforcing consumer protection laws and investigating antitrust violations.

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