FTC Supplement Settlements Spotlight Bayer, Mark First Hoodia Action
This article was originally published in The Tan Sheet
Bayer "went too far" with weight-loss and -control claims for its One-A-Day WeightSmart product and violated a 1991 sanction the product's previous owner agreed to, the Federal Trade Commission said Jan. 4 when it announced a record $3.2 million fine against the consumer healthcare giant
You may also be interested in...
FTC's "standard is the same. There's not any per se lower standard for substantiation just because you position your product as a supplement," says agency attorney Michelle Rusk. Supplement industry stakeholders, though, argue that FTC has no basis to require RCTs for structure/function claims.
Companies targeted with class actions should avail themselves of every opportunity to contest plaintiff claims throughout the process, attorneys emphasized in a recent Council for Responsible Nutrition webinar. Fear of having to pay out exorbitant damages often compels firms to settle when they may have other options, they suggested, urging companies to consider "the long view."
Companies targeted in class actions should challenge litigants throughout the process, from when a complaint is filed to when a judge is deciding, say lawyers during a Council for Responsible Nutrition webinar. Firms fearful of high damage fees too often will settle when they have other options.