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©2010 Copyright
© 2015 ComplianceOnline
This training session is sponsored by
1
FDA Regulation of Promotion & Advertising
Part 7: FTC Regulation
ComplianceOnline Seminar
November 6-7, 2014
• Michael A. Swit, Esq.
www.complianceonline.com
©2015 Copyright
Who Has Jurisdiction …
 Prescription Drugs and Biologics
– Labeling -- FDA
– Advertising – FDA
 Restricted Devices
– Labeling -- FDA
– Advertising – FDA
 OTC Drugs
– Labeling -- FDA
– Advertising – Federal Trade Commission
2
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©2015 Copyright
Who Has Jurisdiction …
 “Unrestricted Devices”
– Labeling -- FDA
– Advertising – Federal Trade Commission
 Dietary Supplements
– Labeling -- FDA
– Advertising – Federal Trade Commission
 Cosmetics
– Labeling -- FDA
– Advertising – Federal Trade Commission
3
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©2015 Copyright
Jurisdiction – Snapshot View
Who Has Jurisdiction
Rx Drugs and Biologics OTC Drugs Restricted Devices “Unrestricted Devices”
Labeling FDA FDA FDA FDA
Advertising FDA FTC FDA FTC
Internet** FDA FDA & FTC FDA FDA & FTC
4
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©2015 Copyright
 Key FTC standards on advertising
– Substantiation – “competent and reliable scientific evidence”
• but what that is – often two well-controlled clinical studies
– Deception – ad is deceptive if a contains a representation or
omission of fact that is likely to mislead a consumer and the
rep. or omission is material to a consumer’s purchasing
decision.
 Federal Trade Commission Act (FTCA) – does not
define advertising, but does “false advertising:
– as “an advertisement, other than labeling, which is misleading
in a material respect” 15 U.S.C. §55(a)(1)
FTC Legal Authority
5
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©2015 Copyright
FTC …
 Criteria for When an ad is False”
– “… there shall be taken into account (among other things) not
only representations made or suggested by statement, word,
design, device, sound, or any combination thereof, but also the
extent to which the advertisement fails to reveal facts
material in the light of such representations or material with
respect to consequences which may result from the use of the
commodity to which the advertisement relates under the
conditions prescribed in said advertisement, or under such
conditions as are customary or usual”
6
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©2015 Copyright
FTCA – “Carve Out” for Drug Ads
 “No advertisement of a drug shall be deemed to be
false if it is disseminated only to members of the
medical profession, contains no false representation
of a material fact, and includes, or is accompanied
in each instance by truthful disclosure of, the
formula showing quantitatively each ingredient of
such drug” -- 15 U.S.C. §55(a)(1)
7
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©2015 Copyright
FTC
 Who at FTC? [see org chart on next page]
– Bureau of Consumer Protection
• Division of Advertising Practices
 Actions – typically handled
privately; case-by-case basis
– most common result – Consent Decree
– Other remedies
• TRO’s or injunction
• Criminal prosecution if advertised use was injurious
• Several instances – FTC has insisted that a violative health claim be
corrected by securing FDA approval
8
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©2015 Copyright
9
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©2015 Copyright
 General principles on whether to take a case:
– The amount of consumer injury caused by the advertising.
• Among the questions asked in this regard are whether or not the
product itself is a fraud.
• if case involves ineffective products, according to scientific data.
– The potential risk to the user’s health.
– Whether or not the claims involved are the type that consumers
can evaluate for themselves.
– Whether or not other legal avenues (e.g., Lanham Act) can be
pursued or self-regulating groups (NAD) can address the issues
– Whether or not the case will help clarify an important legal
question.
FTC
10
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©2015 Copyright
Endorsement Regulations
 Endorsements – must be bona fide and honest
 If ad represents endorser as a user, must be one
– FTC regulations – any depiction of a consumer should use a
consumer; if not, have to say so in the ad
– Expert endorsements – OK, but the expert must really have
evaluated the product – document that
– Celebrity endorsements – dependent on sponsor’s good faith
view that celebrity continues to maintain views in the ad
• e.g., endorse Coke, but seen drinking Pepsi …
11
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©2015 Copyright
Endorsement Regulations …
 Endorsements involving efficacy of drugs or devices
shall not be done in a lay endorsement unless
– advertiser has adequate scientific substantiation for claim
– claims are not inconsistent with any FDA determination about
the drug or device
 “Experiential” Endorsements – i.e., I got this great
result with Drug X – unless that is a typical result for
which you have adequate substantiation, advertiser must
clearly and conspicuously disclose the generally accepted
performance of the product
12
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©2015 Copyright
FTC and OTC Drugs
 No specific regulations on OTC drug ads
 Warnings – generally, those needed to prevent ad
from being deceptive (case by case)
 Anacin case (1981)
– FTC ordered Anacin to stop saying that “Anacin contained the
pain reliever most recommended by doctors” without
disclosing the ingredient
• ingredient – was aspirin
• FTC – because you never said that in the ads; was deceptive
– FTC also ordered them to not make any comparative claims
(safety or efficacy) without two well-controlled clinical studies
13
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©2015 Copyright
FTC and OTC Drugs …
 Aspercreme® (1984)
– FTC –
• ads implied product contained aspirin, which it did not
• also misrepresented level of data that company had to support its
claims
– ALJ – backed FTC – standard, again, was two WCCT
14
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©2015 Copyright
POM Wonderful
 Jan. 16, 2014 – FTC, by 5-0 vote, upheld decision by
ALJ that POM marketers deceptively advertised products
and lacked support that their products could treat,
prevent or reduce the risk of heart disease, prostate
cancer, and erectile dysfunction, and that the products
were clinically proven to work
– Future claims have to be supported by two randomized, well-
controlled human clinical studies
– FTC -- deceptive – to make an objective claim without a
reasonable basis for it
15
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©2015 Copyright
End of Part 7:
FTC Regulation
www.complianceonline.com
©2015 Copyright
Questions?
 Call or e-mail:
Michael A. Swit, Esq.
LAW OFFICES OF MICHAEL A. SWIT
San Diego, California
m: 760-815-4762
e: mswit@fdacounsel.com
web: www.fdacounsel.com
 Follow me on:
– LinkedIn: http://www.linkedin.com/in/michaelswit
– Twitter: https://twitter.com/FDACounsel
www.complianceonline.com
©2015 Copyright
About Your Speaker
Michael A. Swit, Esq., has been addressing critical FDA legal and regulatory issues
since 1984. Before returning to his private law practice in late 2017, he served for 3
years at Illumina, Inc. as Senior Director, Legal, Regulatory. Prior to that, Swit was a
special counsel at the global law firm of Duane Morris LLP in its San Diego
office. Before joining Duane Morris in March 2012, Swit served for seven years as a
vice president at The Weinberg Group Inc., a preeminent scientific and regulatory
consulting firm in the Life Sciences. His expertise includes product development,
compliance and enforcement, recalls and crisis management, submissions and
related traditional FDA regulatory activities, labeling and advertising, and clinical
research efforts for all types of life sciences companies, with a particular emphasis
on drugs, biologics and therapeutic biotech products. His FDA legal and regulatory
work also has included tenures in private practice with McKenna & Cuneo and
Heller Ehrman, and as vice president, general counsel and secretary of Par
Pharmaceutical, a top public generic and specialty drug firm. He also was, from 1994
to 1998, CEO of FDANews.com, a premier publisher of regulatory newsletters and
other specialty information products for FDA-regulated firms. He has taught and
written on many topics relating to FDA regulation and associated commercial
activities and is a past member of the Food & Drug Law Journal Editorial Board.
He earned his A.B., magna cum laude, with high honors in history, at Bowdoin
College, and his law degree at Emory University.

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FDA Regulation of Promotion & Advertising Part 7: FTC Regulation

  • 1. www.complianceonlie.com ©2010 Copyright © 2015 ComplianceOnline This training session is sponsored by 1 FDA Regulation of Promotion & Advertising Part 7: FTC Regulation ComplianceOnline Seminar November 6-7, 2014 • Michael A. Swit, Esq.
  • 2. www.complianceonline.com ©2015 Copyright Who Has Jurisdiction …  Prescription Drugs and Biologics – Labeling -- FDA – Advertising – FDA  Restricted Devices – Labeling -- FDA – Advertising – FDA  OTC Drugs – Labeling -- FDA – Advertising – Federal Trade Commission 2
  • 3. www.complianceonline.com ©2015 Copyright Who Has Jurisdiction …  “Unrestricted Devices” – Labeling -- FDA – Advertising – Federal Trade Commission  Dietary Supplements – Labeling -- FDA – Advertising – Federal Trade Commission  Cosmetics – Labeling -- FDA – Advertising – Federal Trade Commission 3
  • 4. www.complianceonline.com ©2015 Copyright Jurisdiction – Snapshot View Who Has Jurisdiction Rx Drugs and Biologics OTC Drugs Restricted Devices “Unrestricted Devices” Labeling FDA FDA FDA FDA Advertising FDA FTC FDA FTC Internet** FDA FDA & FTC FDA FDA & FTC 4
  • 5. www.complianceonline.com ©2015 Copyright  Key FTC standards on advertising – Substantiation – “competent and reliable scientific evidence” • but what that is – often two well-controlled clinical studies – Deception – ad is deceptive if a contains a representation or omission of fact that is likely to mislead a consumer and the rep. or omission is material to a consumer’s purchasing decision.  Federal Trade Commission Act (FTCA) – does not define advertising, but does “false advertising: – as “an advertisement, other than labeling, which is misleading in a material respect” 15 U.S.C. §55(a)(1) FTC Legal Authority 5
  • 6. www.complianceonline.com ©2015 Copyright FTC …  Criteria for When an ad is False” – “… there shall be taken into account (among other things) not only representations made or suggested by statement, word, design, device, sound, or any combination thereof, but also the extent to which the advertisement fails to reveal facts material in the light of such representations or material with respect to consequences which may result from the use of the commodity to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual” 6
  • 7. www.complianceonline.com ©2015 Copyright FTCA – “Carve Out” for Drug Ads  “No advertisement of a drug shall be deemed to be false if it is disseminated only to members of the medical profession, contains no false representation of a material fact, and includes, or is accompanied in each instance by truthful disclosure of, the formula showing quantitatively each ingredient of such drug” -- 15 U.S.C. §55(a)(1) 7
  • 8. www.complianceonline.com ©2015 Copyright FTC  Who at FTC? [see org chart on next page] – Bureau of Consumer Protection • Division of Advertising Practices  Actions – typically handled privately; case-by-case basis – most common result – Consent Decree – Other remedies • TRO’s or injunction • Criminal prosecution if advertised use was injurious • Several instances – FTC has insisted that a violative health claim be corrected by securing FDA approval 8
  • 10. www.complianceonline.com ©2015 Copyright  General principles on whether to take a case: – The amount of consumer injury caused by the advertising. • Among the questions asked in this regard are whether or not the product itself is a fraud. • if case involves ineffective products, according to scientific data. – The potential risk to the user’s health. – Whether or not the claims involved are the type that consumers can evaluate for themselves. – Whether or not other legal avenues (e.g., Lanham Act) can be pursued or self-regulating groups (NAD) can address the issues – Whether or not the case will help clarify an important legal question. FTC 10
  • 11. www.complianceonline.com ©2015 Copyright Endorsement Regulations  Endorsements – must be bona fide and honest  If ad represents endorser as a user, must be one – FTC regulations – any depiction of a consumer should use a consumer; if not, have to say so in the ad – Expert endorsements – OK, but the expert must really have evaluated the product – document that – Celebrity endorsements – dependent on sponsor’s good faith view that celebrity continues to maintain views in the ad • e.g., endorse Coke, but seen drinking Pepsi … 11
  • 12. www.complianceonline.com ©2015 Copyright Endorsement Regulations …  Endorsements involving efficacy of drugs or devices shall not be done in a lay endorsement unless – advertiser has adequate scientific substantiation for claim – claims are not inconsistent with any FDA determination about the drug or device  “Experiential” Endorsements – i.e., I got this great result with Drug X – unless that is a typical result for which you have adequate substantiation, advertiser must clearly and conspicuously disclose the generally accepted performance of the product 12
  • 13. www.complianceonline.com ©2015 Copyright FTC and OTC Drugs  No specific regulations on OTC drug ads  Warnings – generally, those needed to prevent ad from being deceptive (case by case)  Anacin case (1981) – FTC ordered Anacin to stop saying that “Anacin contained the pain reliever most recommended by doctors” without disclosing the ingredient • ingredient – was aspirin • FTC – because you never said that in the ads; was deceptive – FTC also ordered them to not make any comparative claims (safety or efficacy) without two well-controlled clinical studies 13
  • 14. www.complianceonline.com ©2015 Copyright FTC and OTC Drugs …  Aspercreme® (1984) – FTC – • ads implied product contained aspirin, which it did not • also misrepresented level of data that company had to support its claims – ALJ – backed FTC – standard, again, was two WCCT 14
  • 15. www.complianceonline.com ©2015 Copyright POM Wonderful  Jan. 16, 2014 – FTC, by 5-0 vote, upheld decision by ALJ that POM marketers deceptively advertised products and lacked support that their products could treat, prevent or reduce the risk of heart disease, prostate cancer, and erectile dysfunction, and that the products were clinically proven to work – Future claims have to be supported by two randomized, well- controlled human clinical studies – FTC -- deceptive – to make an objective claim without a reasonable basis for it 15
  • 17. www.complianceonline.com ©2015 Copyright Questions?  Call or e-mail: Michael A. Swit, Esq. LAW OFFICES OF MICHAEL A. SWIT San Diego, California m: 760-815-4762 e: mswit@fdacounsel.com web: www.fdacounsel.com  Follow me on: – LinkedIn: http://www.linkedin.com/in/michaelswit – Twitter: https://twitter.com/FDACounsel
  • 18. www.complianceonline.com ©2015 Copyright About Your Speaker Michael A. Swit, Esq., has been addressing critical FDA legal and regulatory issues since 1984. Before returning to his private law practice in late 2017, he served for 3 years at Illumina, Inc. as Senior Director, Legal, Regulatory. Prior to that, Swit was a special counsel at the global law firm of Duane Morris LLP in its San Diego office. Before joining Duane Morris in March 2012, Swit served for seven years as a vice president at The Weinberg Group Inc., a preeminent scientific and regulatory consulting firm in the Life Sciences. His expertise includes product development, compliance and enforcement, recalls and crisis management, submissions and related traditional FDA regulatory activities, labeling and advertising, and clinical research efforts for all types of life sciences companies, with a particular emphasis on drugs, biologics and therapeutic biotech products. His FDA legal and regulatory work also has included tenures in private practice with McKenna & Cuneo and Heller Ehrman, and as vice president, general counsel and secretary of Par Pharmaceutical, a top public generic and specialty drug firm. He also was, from 1994 to 1998, CEO of FDANews.com, a premier publisher of regulatory newsletters and other specialty information products for FDA-regulated firms. He has taught and written on many topics relating to FDA regulation and associated commercial activities and is a past member of the Food & Drug Law Journal Editorial Board. He earned his A.B., magna cum laude, with high honors in history, at Bowdoin College, and his law degree at Emory University.