Suppliers and manufacturers must ensure promoted claims are substantiated and advertised properlyPDF
Adam's article "Suppliers and manufacturers must ensure promoted claims are substantiated and advertised properly" was published in Inside Counsel on October 14, 2014.
From the article:
Suppliers of ingredients compete to have their components incorporated into products by manufacturers. While a supplier is not necessarily the entity the consumer thinks of when purchasing the end product, it is very much on the line when it comes to legal compliance obligations. This is particularly true with nutritional supplement products, but can extend to any product in which a strong efficacy claim is touted. As such, suppliers need to be careful that the claims relating to their ingredients are supported by competent and reliable tests and studies. Compliance obligations do not stop with the supplier. Manufacturers seeking to make claims premised on the supplied ingredient should not rely blindly on the ingredient supplier for claim support. Rather, manufacturers need to request and examine the underlying substantiation to reasonably confirm that the data is reliable and the conclusions sound, and in some cases, undertake their own studies. Recent cases highlight the need at a minimum to carefully review underlying substantiation provided by a supplier.
FTC sues ingredient supplier
In September 2014, the Federal Trade Commission (FTC) announced that it settled charges against Applied Food Sciences, Inc. (AFS), whose green coffee extract ingredient has been widely promoted as the hot new weight loss ingredient. The weight loss benefits of the ingredient were even promoted on the popular The Dr. Oz Show.