Attorneys: FTC’s Interpretation Of Penalty Offense Authority Yet To Be Tested In Court

Attorneys are closely watching how the US Federal Trade Commission’s latest wave of penalty offense notices to almost 700 companies plays out, noting – as did recently departed commissioner Christine Wilson – that seeking civil penalties in court under this “long dormant” authority could be challenging.

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The US Federation Trade Commission put almost 700 firms on notice this month that failure to adequately substantiate advertised product claims could subject them to significant civil penalties, sparking debate among attorneys as to whether the agency’s premise would hold up in court.

Substantiation notice and letter recipients across manufacturing and retail sectors included BASF Corporation, AstraZeneca plc, Janssen Pharmaceuticals, Johnson & Johnson Consumer Inc., Procter & Gamble Co., Unilever PLC, Pure Herbs Ltd., Radiant Supplements Inc., The Honest Company, Inc., Walmart Inc., and Amazon.com Inc

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