Ad Claims, Q3 Results, Private Placement: Health & Wellness Industry News

NAD tips Balance of Nature claim to FTC; Vitamin Shoppe sales down 8.5%; ChromaDex gains $23m in private placement; and more health and wellness news in brief.

Whole foods supplement marketer Balance of Nature Inc. might have to prove to the Federal Trade Commission that its products prevent cancer, one of the firm's claims the Council of Better Business Bureaus' investigative arm suggests FTC scrutinize. The Las Vegas firm did not response substantively to the National Advertising Division’s request to substantiate claims or participate in any way in the industry self-regulation process, NAD announced Nov. 6. As part of its routine monitoring program and in conjunction with its initiative supported by the Council for Responsible Nutrition to expand its reviews of supplement product ads, NAD requested substantiation for Balance of Nature's online claims including "health benefits in a serving of Balance of Nature are equivalent to 10 servings of real fruits and vegetables" and the brand "prevents cancer." CBBB investigative arms submit their concerns about consumer product advertising to FTC when firms fail to respond to requests for substantiation or to follow suggestions for changes in their ads following reviews. The referrals do not compel action by the commission, which expects that rather than potentially face the costs of responding to FTC enforcement, firms linked to the challenged advertising will reconsider and opt to participate in the industry self-regulation process.

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