FTC Alerts Nearly 700 Companies About Potential Penalties for Misleading Claims

The Federal Trade Commission warned approximately 670 companies of the penalties they could face if they mislead consumers with unsubstantiated product claims, part of a continuing effort to re-establish the agency’s authority to penalize brands that engage in deceptive marketing practices.

The warnings follow a December update to the FTC’s guidance on advertising health-related products that emphasized the need for concrete substantiation for claims. The new warnings aren’t limited to health claims and could apply to any marketers’ statements about the performance of their products, the agency said.