The FTC, using its Penalty Offense Authority under Section 5 of the Federal Trade Commission Act, has put approximately 670 companies on notice that they could incur significant civil penalties of up to $50,120.
Nearly 700 received a letter from FTC putting the companies on formal notice that failing to have proper substantiation for health claims Substantiation Notice or engaging in misleading use of testimonials or endorsements Endorsement Notice could result in civil penalties.