FTC Rules & Regulations on Food Advertisement

How FTC Regulates Food Products Advertisement

The Federal Trade Commission (FTC) regulates food product advertising in the United States. The FTC is responsible for ensuring that food advertising is truthful, accurate, and not misleading to consumers. Here are some ways in which the FTC regulates food product advertising:

1. Substantiation: The FTC requires that food product advertisers have a reasonable basis for any claims made in their advertisements. Advertisers must be able to provide scientific evidence or other objective data to support any claims about the benefits or qualities of their products.
2. Health and safety claims: The FTC closely monitors claims about the health or safety benefits of food products. Advertisers must have scientific evidence to support such claims, and the claims must be truthful and not misleading.
3. Endorsements and testimonials: The FTC also regulates the use of endorsements and testimonials in food product advertising. Advertisers must disclose any material connections between themselves and endorsers, and endorsers must disclose any financial incentives they received for endorsing the product.
4. Labeling and packaging: The FTC also regulates the labeling and packaging of food products. Advertisements must accurately reflect the contents of the package, and packaging must not be misleading or deceptive.
5. Children's advertising: The FTC pays special attention to food product advertising aimed at children. Advertisers must be truthful and not misleading in their advertisements, and they must not exploit children's inexperience or vulnerability.

In summary, the FTC regulates food product advertising through the enforcement of truth-in-advertising laws, ensuring that all advertising claims are truthful, accurate, and not misleading to consumers.

Federal Trade Commission Act (FTC Act), Federal Food, Drug, and Cosmetic Act (FD&C Act), and USDA Country of Origin Labeling

The Federal Trade Commission (FTC), U.S. Food and Drug Administration (FDA), and U.S. Department of Agriculture (USDA) share jurisdiction over claims made by manufacturers of food products.

The Federal Trade Commission Act (FTC Act) prohibits “unfair or deceptive acts or practices,” and, in the case of food products, the FTC Act prohibits “any false advertisement” that is “misleading in a material respect.”

FDA's authority is embodied in part in Section 403(a) of the Federal Food, Drug, and Cosmetic Act (FD&C Act) which prohibits “labeling that is false or misleading in any particular.” The FTC and the FDA have operated under a Memorandum of Understanding, under which the FTC has assumed primary responsibility for regulating food advertising, while the FDA has taken primary responsibility for regulating food labeling.

Agriculture Marketing Service (AMS) of the USDA is responsible for the administration and enforcement of Country of Origin Labeling (COOL). COOL is a labeling law that requires retailers, such as full-line grocery stores, supermarkets, and club warehouse stores, to notify their customers with information regarding the source of certain foods. Agriculture Marketing Service (AMS) of the USDA is responsible for the administration and enforcement of COOL.

FDA’s Role in Improving Nutrition: Labeling and Other Authorities

In-Depth Coverage: Marketing and Advertising Compliance

• Federal Trade Commission (FTC) Advertising Rules
• Made in USA Standard
• FTC Regulation on Environmental Claims
• Adverting and Marketing on the Internet
• Label Claims for Conventional Foods and Dietary Supplements
• Dietary Supplement Advertising: What is FTC's Truth-in-Advertising Law?
• USDA Country of Origin Labeling (COOL)
• FTC Rules & Regulations on Food Advertisement

How the FTC Identify Deceptive Acts or Practices in Food Advertisement

The FTC regulates food advertising under its statutory authority to prohibit deceptive acts or practices.

The first step in a deception analysis is to identify representations made by an advertisement. A representation may be made by express or implied claims. An express claim directly makes a representation. The identification of an implied claim requires an examination of both the representation and the overall context of the ad, including the juxtaposition of phrases, images, and the nature of the claim and the transaction.

In addition to deception arising from affirmative representations in an advertisement, the omission of material information may also be deceptive in certain circumstances. First, deception can occur through the omission of information that is necessary to prevent an affirmative representation from being misleading.

In-Depth Coverage: Country of Origin

• Country of Origin of Imported Merchandise
• Customs Ruling: Country of Origin
• Country of Origin: Food Products
• Country of Origin: Chemical and Pharmaceutical Products
• Country of Origin & Country of Manufacture: CBP vs. FDA
• Country of Origin: Substantial Transformation or Country of Assembly Test
• Country of Origin and Free Trade Agreement
• Country of Origin and Section 301

Second, “it can also be deceptive for a seller to simply remain silent if he does so under circumstances that constitute an implied but false representation.” However, “not all omissions are deceptive, even if providing the information would benefit consumers.” As with advertisements that contain affirmative representations, the test for whether an omission is deceptive is whether the overall impression created by the ad is deceptive.

The next step in identifying deception in an ad requires the Commission to consider the representation from the perspective of a consumer acting reasonably under the circumstances.

Finally, a representation must be material, i.e., likely to affect a consumer's choice or use of a product or service. Express claims and claims involving health or safety are presumptively material.

Substantiation of the Advertising Claims

Objective claims carry with them the implication that they are supported by valid evidence. It is deceptive, therefore, to make any express or implied nutrition or health benefit claim for food unless, at the time the claim is made, the advertiser possesses and relies upon a reasonable basis substantiating the claim.

A reasonable basis consists of competent and reliable evidence. In the context of nutrient content or health claims, substantiation will usually require competent and reliable scientific evidence sufficient to support the claim that is made. 

The scientific evidence consists of tests, analyses, research, studies or other evidence conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the relevant profession to yield accurate and reliable results.

The substantiation must also be examined in the context of the entire body of relevant evidence, particularly if it produces results that are contrary to that body of evidence.

For further information please refer to the following link to FTC Websites.

Enforcement Policy Statement on Food Advertising

In-Depth Coverage: USDA-Regulated Products

• Importing USDA-Regulated Food Products
• Import Regulation by USDA Agricultural Marketing Service (AMS)
• Food Products – FDA or USDA Regulated
• Country of Origin Labeling
• Importing Animals, Animal Products, and Biologics into the US
• Importing Meat, Poultry, and Egg Products into the US
• Labeling and Marking of Imported Meat, Poultry, and Egg Products
• USDA National Organic Program (NOP)
• Agricultural Safeguards and USDA Licensing

In-Depth Coverage: Importing Food Products 

• What is FDA Food Safety Modernization Act (FSMA)? 
• Prior Notice of Imported Foods
• FDA Food Facility Registration
• Risk-Based Preventive Controls for Human Food
• Risk-Based Preventive Control for Animal Food
• Protect Food against Intentional Adulteration
• What is Foreign Supplier Verification Program (FSVP)?
• What is FSMA Produce Safety Rule?

Quick Link To U.S. Customs & Import Requirements

Customs Clearance and Import Requirements

• Entry of Imported Merchandise
• What is Section 321 Entry?
• What is Automated Commercial Environment (ACE)
• What is an Automated Broker Interface (ABI)?
• Who is Ultimate Consignee?
• What is Non-Resident Importer Program?
• Country of Origin of Imported Merchandise
• What is the Country of Assembly?
• What if the FDA's Country of Manufacture?
• Marking of Country of Origin on U.S. Imports
• What is Customs Bond?
• Reconciliation Prototype and Bond Rider
• Who Needs a Customs Broker?
• What is Customs Ruling Program?
• Classification of Imported Goods
• How is imported merchandise appraised?
• What are Import Quotas?
• What are Trade Remedy Duties?
• Antidumping Duty (AD) and Countervailing Duty (CVD)
• What is Foreign Trade Zone (FTZ)?
• What is Importer Security Filing (ISF)?
• What is Temporary Importation under Bond (TIB)
• What is In-Bond Process?

FDA-Regulated Products and Import Requirements

• What is Food Safety Modernization Act (FSMA)?
• Prior Notice of Imported Foods
• Food Facility Registration
• Risk-Based Preventive Controls for Human Food
• Risk-Based Preventive Control for Animal Food
• Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption
• What is Foreign Supplier Verification Program (FSVP)?
• Protect Food against Intentional Adulteration
• FDA Regulated Product in Foreign Trade Zone (FTZ)
• Entry Review Process for FDA Regulated Products
• Country of Origin  VS  Country of Manufacture
• Foods Regulated by FDA or USDA: What is the Difference?
• Label and Labeling Claims for Conventional Food and Dietary Supplements
• What is USDA Country of Origin Labeling (COOL)?
• Import for Export of FDA Regulated Products
• FDA Regulated Products in Personal Baggage or Sending by Mail or Courier
• International Mail Facility (IMF) and FDA Regulation
• Importing Biological Product Regulated by CBER
• Importing Cosmetics and Voluntary Cosmetic Registration Program (VCRP)
• Importing Drugs into the U.S.
• Importing OTC Drugs into the U.S.
• Importing Veterinary Drugs into the U.S.
• Importing Tobacco Products into the U.S.
• Importing Medical Devices into the U.S
• Importing Food Products into he U.S.
• Importing Radiation-Emitting Products into the U.S.

Guidance on customs & logistics solution for traditional and e-commerce importers and exporters

Importer Security Filing (ISF)

An ISF is required when cargo (ocean only) laden on vessel at a foreign port is destined for shipment to the U.S.  Under ISF rule, some importing information and details regarding cargo must be transmitted to the CBP at least 24 hours before goods are loaded onto the vessel.

Freight Forwarding

Looking for a freight forwarding partner?  To move your cargo from its current location through customs to its final destination we will partner with you to find the best way for your business. Whatever your transportation, logistics or customs clearance needs, we will do our best to customize a solution for your needs. 

Customs Clearance

All goods imported in the U.S. are required to be declared to CBP. Our customs broker will help you stay in compliance with customs laws and regulations and clear your goods quickly and efficiently with our electronic Automated Commercial Environment (ACE) and Automated Broker Interface (ABI) Single Window System.

Warehousing & Distribution

Our warehouse facility offers great potential for serving as a regional hub with over 145,000 SF storage capacity close to Los Angeles Airport & Los Angeles/Long Beach Sea port. With our extensive experience in freight services, your import/export cargo will be handled quickly and effectively.

Section 321 Entry

Section 321 entry allows importing free of duty and tax for shipments imported by one person on one day having a fair retail value in the country of shipment not more than $800. We provide our resident and non-resident clients with dedicated ACE eManifest solutions for Section 321 entry of all modes of transportation. 

Non-resident Importer Program

If you want to sell your products in U.S. marketplaces, but you are a business owner located outside of the U.S. and do not have an entity or presence in the U.S., you need to be established as a Foreign Importer of Record before your products can be imported into the U.S. We can help you.

E-Commerce

The Internet has made it easy to find and purchase items from almost anywhere in the world. Our e-commerce experts will help you find the right solution for your international transportation, customs clearance, and delivery to your final destination.  We also provide value-added repackaging, warehousing and distribution services.