Industry News

FTC Focuses on Products Making Health Claims, Increases Cooperation with FDA

January 6, 2011


A number of recent cases brought by the Federal Trade Commission (FTC), under its authority to prohibit deceptive advertising to consumers, highlight that agency’s new focus on products making health claims and demonstrate how the FTC has begun to work much more closely with the Food and Drug Administration (FDA).  In 2009, FDA and FTC warned the public about fraudulent promotion of products claiming to diagnose, prevent, mitigate, treat or cure the H1N1 influenza virus, and issued their first-ever joint warning letter advising the owners of the offending websites that they must correct or remove them or face legal action.  In September 2010, FTC and FDA issued a joint warning letter to a seller of what? Miami-based Telledant, challenging their advertising of these products as having therapeutic value for treating diseases in violation of FTC regulations. 

FTC’s interagency cooperation with FDA has gone further than just joint warning letters.  In December 2010, FTC settled a case with the Dannon Company, relating to alleged deceptive advertising of Dannon’s yogurt and dairy drink products.  Dannon had made claims that its Activia yogurt and DanActive diary drink products, which contain bacteria known as probiotics which are helpful for digestion, would relieve irregularity and help people avoid catching colds or the flu.  In TV, internet and print ads as well as product packaging, Dannon had stated that there was scientific proof to back up these claims.  The FTC charged that there was deception and the claims were unsubstantiated due to lack of clinical proof.  Under the settlement announced last month, the FTC, took the unusual step of prohibiting Dannon from claiming that any yogurt, dairy drink or probiotic food drink reduces the likelihood of getting a cold or the flu, unless the claim is approved by the FDA.  The FTC noted that while companies do not usually need FDA approval of their health claims to comply with the FTC Act, in this case it would be beneficial to ensure Dannon’s compliance. 

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