The FTC put pharma giants on notice for deceptive marketing claims
The FTC may have exaggerated its penalty authority for health firms, legal experts say.
Be on the lookout, healthcare industry. The Federal Trade Commission (FTC) is putting companies on notice for deceptive marketing claims.
Earlier this month, Johnson & Johnson and Pfizer were among hundreds of health companies to receive a threatening message from the FTC that they could face stiff penalties for running ads with baseless product claims. However, the agency may have exaggerated its penalty authority, legal experts say.
About 670 firms involved in marketing over-the-counter (OTC) drugs, along with makers of homeopathic products and dietary supplements, received warning letters from the agency. Firms were put on notice that failing to have proper substantiation for health claims or engaging in misleading use of testimonials or endorsements could result in civil penalties.