Companies scramble to meet increased regulatory pressure on improper claims
By: David Rauf
“How much you want to put in it now and how tight you want to make the screws, that’s up to each company. But I would not hesitate to make it a priority today, especially.”
—Lois Greisman, Associate Director of Marketing Practices, Federal Trade Commission
The letters are working and, given the scope of the scams out there right now, we want to get the best and fastest results we can with the most efficient tool we have. Right now, for these coronavirus-related issues, that’s warning letters.
—Andrew Smith, Director, FTC Bureau of Consumer Protection
The Federal Trade Commission (FTC) opted in late April to issue letters to 10 direct selling companies warning them to stop making claims about products and business opportunities associated with the coronavirus because it was “fast and efficient.” But direct sellers shouldn’t necessarily expect to receive warning letters moving forward if the FTC targets a company for something outside of COVID-19-related claims.
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