FTC’s “vague standard” on trial
This article was originally published in The Tan Sheet
Executive Summary
The Federal Trade Commission "is unlawfully trying to suppress...commercial free speech protected by the First Amendment through imposition of a vague substantiation standard for advertised claims," according to a lawsuit filed in Utah district court by Relacore marketer Carter-Reed Dec. 13. Claims for C-R's stress-reliever and "belly-fat" reducer dietary supplement initially were cited by the National Advertising Division, and subsequently referred to FTC (1"The Tan Sheet" June 28, 2004, In Brief). FTC then threatened Carter-Reed with law enforcement action for making false and misleading claims for the cortisol-containing product. The firm is seeking to enjoin the FTC from suppressing advertised claims for Relacore under the FTC Act's "competent and reliable scientific evidence" standard...