Advertisers are being warned to avoid deceiving consumers with ads and product claims that can’t be backed up, and the Federal Trade Commission is ready to crack down on violators.
The FTC issued a warning to nearly 700 companies, saying it will not hesitate to use its authority to target companies whose products don’t match their claims.
The move comes after sellers continue to make unsubstantiated claims with little to no proof.
Under federal law, companies must prove what their product can do with reliable evidence and not just say it or advertise it.
For example, if a company makes a claim about the health or safety benefits of a product, it must be based on scientific evidence.
And for companies that say their products can cure, mitigate or treat a serious health condition, it must be proven through certain scientific testing standards.
And for those who can’t prove what their selling actually works, they could face a $50,000 fine.
Of the 700 companies that received notice, most are smaller brands but some big-name brands like Amazon, CVS, Johnson & Johnson, Walgreens and Walmart also made the list.
Although the initial recipients of the warning notice are companies making health claims, the notice isn’t limited to that sector, the FTC said, and receiving a notice isn’t an indication that the FTC thinks the company has violated the law.
The goals are to ensure that marketers understand their legal obligations and to establish a basis for civil penalties for any future violations.