This issue came up back in 2007 but I thought it nicely illustrated what can happen if companies put forth misleading advertising. The FTC fined Xenadrine EFX, One A Day Weight Smart, CortiSlim and TrimSpa $25 million for making false advertising clamis ranging from rapid weight loss to reducing the risk of serious illnesses like cancer, osteoporosis and Alzheimer's. The companies accepted the FTC fines, but without admitting guilt or accepting liability. One major issue here was that some of the brands used endorsements from celebrities to promote their products, but had to stop making the claims. "Testimonials from individuals are not a substitute for science," said Deborah Platt Majoras, then Chairman of the FTC. "And that's what Americans need to understand. The marketers are required to back up the claims with the science, and if they can't do that they can't make the claim." Good insight here on the use of testimonials in advertising. Pretty straight forward, I'd say.
Read the whole article here.
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