Dietary supplements make up an increasingly large market. It’s hard to browse the web or watch TV without seeing an advertisement for some supplement or other. But just how are these advertisements regulated by the FTC?
The FTC markets supplement advertisements by ensuring that they are truthful, free of false claims, that the claims they do have are substantiated by evidence, that important qualifiers for claims made are included, and that ads are free from false endorsements or exaggerated testimonials.
A common question about marketing supplements is do you need approval from the FDA to sell supplements. I cover that in a separate article you can read here.
There are certain claims you can and can’t make as a supplement business and that area is very gray. To learn more about supplement disclaimers and claims read my article about what’s allowed here.
Below, I will examine exactly how the FTC goes about ensuring the truthfulness of supplement advertising.
How Dietary Supplement Marketing is Regulated by the FTC
In the U.S., the Federal Trade Commission (FTC) oversees the marketing of dietary supplements. The FTC’s main responsibility is to defend consumers against dishonest or misleading advertising tactics. The FTC controls the marketing of dietary supplements in the following important ways.
False and Misleading Advertising
The FTC forbids the use of false and misleading advertising techniques. It is against the law for marketers to make deceptive claims about a product’s components, advantages, or outcomes. And while the most obvious claims regulated by the FTC are directly expressed in the advertising, some claims are “implied”, meaning that a customer could infer that a product does something based on the content or context of the ad.
For example, if an ad expressly claimed that their supplements boost mental clarity but feature people performing extremely well at sports, that advertiser must substantiate the claim that the product can enhance mental clarity and sports performance due to the likelihood that consumers might interpret the ad that way.
Furthermore, they are prohibited from using false endorsements or testimonials that exaggerate the expertise or backgrounds of those recommending the product.
Health and Safety Claims
The FTC carefully examines the health claims that manufacturers of dietary supplements make. Since dietary supplements are not meant to substitute medical therapies or pharmaceuticals, marketers are not allowed to make unsupported claims regarding preventing, treating, or curing particular conditions. If a product’s ability to treat a specific disease or condition is claimed, such a claim must be backed up by credible scientific data.
According to the FTC, there are several factors used to decide the correct amount and type of substantiation for a claim, including:
- The benefits gained from a claim vs. the amount of money it will cost to substantiate it. Sometimes, advertisers may choose not to include a claim because it would be too expensive to substantiate it.
- The consequences of false claims: how serious would it be to a potential customer if they were misled about the nature of the supplement?
- How much substantiation would an expert in the field the supplement is a part of think is reasonable?
- The type of product: If a product is related to consumer safety or health, then advertisers usually have to work harder to substantiate the claims made regarding that supplement.
Consumer Complaints
The FTC relies on consumer complaints and keeps an eye out for potential infractions in the marketplace. The FTC has the authority to file a lawsuit against a firm if it is discovered that they are using misleading marketing techniques. In order to safeguard customers, this may lead to cease-and-desist orders, financial penalties, or other corrective steps.
Labeling Requirements
Although the U.S. Food and Drug Administration (FDA) is primarily in charge of overseeing dietary supplement labeling, the FTC also has a part to play in making sure that supplement labels don’t make any claims that are untrue or deceptive. If supplement labeling is proven to be misleading or deceptive, the FTC may initiate an enforcement action.
Substantiating Claims and Disclosing Qualifying Information
Dietary supplement marketers are required by the FTC to provide proof of any claims they make about their products. This means that businesses must have competent and trustworthy scientific data to back up any claims they make about the advantages, effectiveness, or safety of their products.
Similarly, if a company has substantiated a claim that a product has any one specific benefit, but if that benefit only is applicable to a small subset of the population, the advertiser must disclose what that subset is. For example, if a weight loss supplement reduces weight, but only for those of a certain body fat percentage or above, they must disclose that information. They also must have information to support their weight loss claim.
Finally, any other type of “qualifier” that is required to make a claim in a supplement advertisement true and allow a customer to evaluate its effectiveness for them must be placed into the ad itself, whether it be a condition of the study a claim is based on or a risk or side effect that a customer could experience after taking the said supplement.
Endorsement Guidelines
The FTC sets regulations for testimonials and endorsements used to market dietary supplements. To ensure transparency for customers, these rules mandate that any significant ties between the endorser and the business must be declared. Marketers are required to disclose any monetary or tangible rewards given to endorsers in exchange for their positive reviews.
If an advertisement claims that a supplement has any certain “level of support”, in the same way that a lot of toothpaste labels have something that says “9 out of 10 dentists recommend…”, then the FTC requires that this level of support is substantiated and truthful.
Who Regulates the Advertising of Dietary Supplements?
What the FTC Does
The FTC has primary responsibility in regulating the claims made in advertisements, while the FDA regulates claims made on packages and labels. To ensure that advertisements are truthful and not misleading, the FTC enforces two main rules: objective claims made in ads must be backed up and advertising content must be truthful.
While the FTC has a variety of different guidelines and rules to determine if an advertisement meets these standards, it has a few ways of enforcing them. They send cease and desist letters asking companies to stop airing deceptive advertisements, institute civil penalties, initiate consumer redress (in which a company must compensate consumers for damage caused by a false claim), or take a company to court over misconduct.
What the FDA Does
The Dietary Supplement Health and Education Act, also known as DSHEA, amended the Federal Food, Drug, and Cosmetic Act (FD&C Act) in 1994 by defining the term “dietary supplement” and establishing the FDA’s authority over such items.
Dietary supplement labels must include nutrition information in the form of a Supplement Facts label, which contains the serving size, the number of servings per container, a list of all dietary components present in the product, and the quantity of each ingredient per serving.
Additionally, the product must be labeled as a “dietary supplement” or something similar such as “herbal supplement” or “calcium supplement”. To make sure that items are adequately labeled and that they don’t contain any claims that could turn them into medications (such as those that promise to treat, diagnose, cure, or prevent diseases), the FDA also checks product labels and other labeling information found on websites.
The FDA lacks the authority to pre-approve the safety, effectiveness, and labeling of dietary supplements before they are available for public sale. According to the FD&C Act, dietary supplement companies are responsible for ensuring that their products comply with dietary supplement safety standards and do not violate any laws.
It’s crucial to remember that the FDA primarily governs the safety, quality, and labeling of dietary supplements, while the FTC regulates parts of marketing and advertising. To safeguard consumer protection and the dietary supplement industry’s integrity, these two organizations work together closely.
To learn more about starting a supplement business read my comprehensive article on what you need to know.
Discover the 3 funnels that can help your health supplement business succeed.
Listen to the Health Supplement Business Mastery Podcast for for dietary supplement entrepreneurs and marketers.
