Posts Tagged ‘nutritional supplements’
Additional FTC Powers NOT Part of Wall Street Reform Bill (S. 3217)
In a House and Senate conference of the Wall Street Reform Bill and Consumer Protection Act, conferees ultimately decided not to include the broad rulemaking authority granted to the Federal Trade Commission (FTC) in the House version of the bill advocated by Congressman Henry Waxman (D-CA). This is a huge win for the nutritional supplement industry, as the rulemaking authority that would have been bestowed on FTC could have had a dramatic impact on industry, allowing the Agency to issue Rules under the Administrative Procedures Act that directly and significantly affect advertising. Currently FTC primarily “makes law” through enforcement of existing law. Getting this proposal removed from the final legislation was achieved through the help of overwhelming grassroots support in the form of messages from constituents to their representatives, and a combined effort of industry trade organizations including NPA and AHPA educating consumers and lobbying Capital Hill. I am proud to say that I personally spent a day on the Hill meeting with Representatives and U.S. Senators from New York and California, educating them on the issues and advocating on behalf of industry.
U.S. Senate Committee Hearing on Supplements set for May 26
The Senate Special Committee on Aging has scheduled a hearing entitled, “Dietary Supplements: What Seniors Need to Know.” The hearing, scheduled for 2 pm on Wednesday, May 26, 2010, will include testimony from the General Accountability Office concerning its investigation into “marketing practices” for herbal supplements. Although the focus may be on the potential interactions between herbal products and prescription drugs, speculation is that questions about ”New Dietary Ingredients” may also be a highlight. Go to http://aging.senate.gov/ on the day and time of the hearing to view the live webcast.
CRIMINAL CHARGES FOR FALSE CLAIMS: Supplement Company Owner Pleads Guilty to Fraudulently Marketing Dietary Supplements
Making claims that a dietary supplement product can treat, cure or prevent a disease; making claims that are not substantiated or even worse, claiming that clinical studies have been performed when in fact, they have not, can result in substantial forfeiture of assets and federal criminal charges. The supplement industry is familiar with FDA and FTC oversight of dietary supplement claims resulting in consent decrees and civil penalties for violations of federal regulations. But what companies are not as familiar with are FDA’s enforcement powers to launch criminal investigations which are prosecuted by the United States Attorney’s office. Below is a recent example of the kinds of penalties that not only companies but individuals can be subject to for making false claims about supplement products. CMG works with our clients to review their label and advertising claims for compliance with federal laws and regulations, to help prevent or avoid this kind of situation from occurring:
