If you read this blog and keep a close eye on the cannabidiol (“CBD”) industry, you know that the Federal Trade Commission (“FTC”) takes issue with advertising tools containing egregious, unfounded claims about the health benefits of CBD products. Yet, you might be surprised to read that the federal agency does not go after every actor that promotes the therapeutic value of these products. This post explains why.
The FTC is empowered under the Federal Trade Commission Act (“FTC Act”) to regulate advertising to protect the public from unfair and deceptive claims made in any medium. Under the FTC Act, companies must support their advertising claims with solid evidence. This is especially true for businesses that market food, dietary supplements, and other health-related products. The objective of the FTC is to ensure that consumers get accurate information about these products so they can make informed decisions.
In reviewing health claims, the FTC gives great deference to the Food and Drug Administration (“FDA”) – the agency tasked with regulating these products. The FTC follows the FDA’s determination of whether there is adequate support for a health claim to be made.
As we have written at length, the FDA treats any