According to a recent Federal Trade Commission (“FTC”) News Release, the agency is warning marketing companies they could face civil penalties if they can’t substantiate their product claims. The FTC sent notices to approximately 670 companies. The news release includes a link to the list of companies who received the notice and a link to the “Notices of Penalty Offenses” letter provided. According to the letter, receipt of a notice of penalty offenses puts the company “on notice that engaging in the conduct described therein could subject the company to civil penalties of up to $50,120 per violation. See 15 U.S.C. § 45(m)(1)(B).” FTC also advises in the letter that companies should consult FTC’s Health Products Compliance Guidance.
Sam Levine, Director of the FTC’s Bureau of Consumer Protection states in the news release, “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. The prospect of steep civil penalties will help ensure that advertisers don’t play fast and loose with the truth.”
A copy of the FTC News Release is available here.
For more information regarding FTC enforcement, please see the Government Prosecutions section of the Enforcement Actions Database.