The Federal Trade Commission (FTC) has recently joined the US Food and Drug Administration (FDA) to take certain steps regarding some companies operating in Florida, South Carolina, and New Mexico. The FDA/FTC sent warning letters to these companies on February 5, this year. Let’s find out what all this means and where you can get the right supplements merchant account for your business.
FTC & FDA Warning Dietary Supplements Companies
Ads around the products claiming to fight or prevent severe health conditions like cancer are surging these days. The bad news is that often there’s no proof regarding the “magic” that these products claim to make. In some cases, these ads promise to treat Alzheimer’s disease and dementia: science hasn’t found any cure for these conditions yet.
So, the FTC decided to warn about advertisements that claim to fight Alzheimer’s and help people avoid other serious illnesses such as Parkinson’s, heart disease, and cancer. You can find many of these products being sold on the internet and social media platforms. They’re known as “dietary supplements” or “natural remedies.”
The letters that the organizations sent to several companies required them to contact the FTC within a 15-day period with regard to actions taken. The FTC can apply civil enforcement actions against those who deceptively promote and advertise or sell health-related products and are focused on just generating revenue.
The agencies note that the companies’ drug claims were violating Section 201(g)(1)(B) of the FD&C Act and unproven disease statements under Section 12 of the FTC Act. In fact, the FTC Act states that it isn’t lawful to claim that a product can prevent, cure, or fight a human disease if there’s no competent and trustworthy scientific evidence.
Supplements Merchant Account: What to Expect from FTC & FDA
The FDA considers at least some dietary supplements related to “the Wild West.” On the other hand, the agency noted that the majority of players in this industry were on the hook for their actions.
What about your dietary supplement company? How can you be sure your business can overcome the hindrances on its way easily? This is more than possible if you turn to a reputable payment processor in the high risk field. A true payment specialist will help get you the most reliable supplements merchant account at the most competitive rates.
In fact, the FTC mentioned that competent and trustworthy scientific evidence backed by reliable human clinical studies should accompany the marketing or promotional steps that these supplement companies take. These warning letters are among the actions that both the FDA and FTC aim to take to eliminate deceptive claims that target the aging population.
So, the agencies are going to scrutinize cases like these, which can even create better conditions for the supplements market. The point is that deceptive practices are eliminated from the industry, consumers will show greater willingness to use these products. However, supplement producers should check whether their products are in compliance with relevant law or not.
To sum up, the dietary supplements market is growing with rapid advances these days and penetrating into all demographics of American consumers. The FTC and the FDA have started paying special attention to unproven health claims in the field. The letters the agencies have sent contain dozens of statements being of concern.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can get you the most reliable and cheapest supplements merchant account in the industry. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.
