Supplement Industry Must Pony Up To Ride "Difficult Road" On Capitol Hill
This article was originally published in The Tan Sheet
Executive Summary
The supplement industry must commit more resources to Capitol Hill to protect the Dietary Supplement Health and Education Act from congressional critics, says Natural Products Association President Pat Sardell
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The supplement industry must commit more resources to Capitol Hill to protect the Dietary Supplement Health and Education Act from congressional critics, says Natural Products Association President Pat Sardell. At the Natural Products Expo East tradeshow in Boston Sept. 25, Sardell said the supplement industry's spending on political action committees is inadequate, and its lobbying efforts need strengthening as well. It may be "a very difficult road to navigate ahead on Capitol Hill," said Sardell, owner of Corvallis, Ore.-based retailer Country Vitamins. Supplement industry critics likely will consider reforming DSHEA (see 1 (Also see "DSHEA Reform Amendment Efforts Likely, Supplement Hearing Slated" - Pink Sheet, 12 Oct, 2009.) ). "We may reach a point where our critics in Congress may look to change the way we conduct our businesses, from the process of manufacture to what is available to sell," Sardell said. To defend DSHEA, the industry needs to contribute more to PACs, she said. Supplement interests currently rank in the bottom third of all contributing industries in spending on PACs, Sardell observed. She said the supplement industry trails outdoor advertising and bowling industries in PAC support, citing Center for Responsive Politics data from 2005. "Needless to say, these particular groups are probably not fighting the kind of onerous legislative battles we as an industry face," she added. The supplement industry has "great strength with our grassroots," but historically has fallen behind others in support for lobbying, Sardell said. According to a 2005 report from NPA based on data from CRP, supplement interests contributed just under $100,000 to PACs. The cruise line industry, with comparable consumer sales of $25 billion, contributed more than $170,000 that year. The recording industry, estimated at $13 billion in sales - or $10 billion less than supplements - made more than triple the PAC contribution total of the supplement industry that year. CRP says, in 2008, the nutritional and supplement industry PACs contributed $151,000 to federal candidates, with more than half of that going to Democrats. The "sky isn't falling, yet," but the industry needs "to remain vigilant," Sardell added, asking for more support for trade groups and more say in the legislative process. Douglas Weber, a senior researcher at CRP, said overall contributions to lawmakers have dropped since 2000. Weber said the supplement industry's PAC spending is not ranked specifically by CRP. But, "they'd be pretty close to the bottom," he said in an interview. For the first half of 2009, contributions to members of Congress from PACs and individuals identified as connected with the nutritional and dietary supplement industry were at $137,045, according to CRP. However, according to CRP's biennial total, contributions for 2007-2008 reached $718,599. Mike Greene, the Council for Responsible Nutrition's senior director of government relations, agrees that the industry must grow its PACs. However, Greene notes, CRN's PAC started five years ago and, while still small, it has grown. Middle Of The Pack On Lobbying According to current CRP data, the supplement/ nutritional industry has spent about $1.5 million on lobbying in 2009. In 2008, the industry spent close to $3 million. Matthias Jaime, a CRP lobbying researcher, said the nutrition/dietary supplement industry ranked 187th in 2008 and 181st in 2009 in spending, out of the 396 lobbying industries. According to NPA, 2005 data from CRP show drug manufacturers ranked third in spending on lobbying, while the supplement industry was in the bottom 10 at No. 74. Vigilance To Maintain Congressional Support Sardell noted strong Senate support for the industry on both sides of the aisle - Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin, D-Iowa, and Sen. Orrin Hatch, R-Utah. Harkin and Hatch were the primary authors of DSHEA and were responsible for pushing the act through Congress in 1994. However, Sardell said, the industry is "coming up against some formidable and savvier opponents" and will need more involvement from stakeholders. She mentioned House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., who has planned a hearing on adulterated supplements in November, and Senate assistant majority leader Dick Durbin, D-Ill. Sardell noted Waxman's ongoing public criticism of DSHEA, repeated in his recent book, "The Waxman Report" (2 (Also see "With Harkin As HELP Chair, Long-Time Supplement Ally Gains Ground" - Pink Sheet, 14 Sep, 2009.)). But Sardell points out that congressional scrutiny can be an opportunity for the responsible element of industry to assert itself. In an interview, Sardell cited the recent hearing on steroids held by a Senate Judiciary subcommittee, saying, the supplement industry was "well-received." "Any time we can distinguish between the legal, safe and healthy dietary supplement industry and the seedy, fly-by-night and unsafe world of illegal steroids, it is in our best interest to do so," she said, echoing comments NPA Interim Executive Director Daniel Fabricant made at the hearing (3 (Also see "Specter Spares Supplements, Hammers DEA Over Illegal Steroid Products" - Pink Sheet, 5 Oct, 2009.)). She added, the industry cannot relax, although the hearing went well. "Quite the contrary, we must remain diligent with our efforts," she said. NPA Says: Form Relationships With Congress Sardell stressed the importance of being involved in politics, particularly as business owners. She said firms should contact their representatives in Congress, invite them to their retail outlets or manufacturing facilities and introduce them to products and the industry. "Cultivate relationships with your members" to "discredit the negative press that runs rampant these days" about the industry, she added. Sardell recommended stakeholders also show members of Congress the industry's hard work to provide accurate information to consumers with the industry's end goal being the improvement of health in the U.S. Greene agrees it is important for supplement industry manufacturers and ingredient suppliers to establish relationships with members. He pointed out that members' offices change and every couple of years, stakeholders need to get to know the new staff or members, and educate them on industry issues. - Katie Stevenson ( 4 [email protected]) |