Dayspa

MAY 2017

DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.

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dayspamagazine.com • may 2017 • [ 83 ] Seller Beware The FDA has some very specifi c rules regarding claims made by dietary supplements. Per its website (fda.gov), product claims "must be based on signifi cant scientifi c evidence that shows a strong link between a food substance and a disease or health condition." Further, the claim "can only state that a food substance reduces the risk of certain health problems—not that it can treat or cure a disease." They cite an example of a properly made claim for a food supplement: "Calcium may reduce the risk of the bone disease osteoporosis." Thus, the folks behind the Chinese Diet Tea, along with several other perpetrators of similarly fl agrant false marketing claims, were the subjects of six complaints fi led by the FTC as part of its Operation Big Fat Lie, an eff ort launched in 2004 to halt deceptive advertising of weight loss products. The FDA works hand in hand with the FTC, which regulates advertising of these products. Now here's where spas come in. One of the complaints involved the New England Diet Center and Bronson Day Spa in Westport, Connecticut, for making unsubstantiated claims about the Diet Tea that the FTC felt amounted to deceptive marketing practices. The businesses were ultimately ordered to pay almost $2 million in damages to the FTC (which typically attempts to locate and compensate damaged consumers). Fortunately for innocent business owners, the FDA and FTC primarily target manufacturers. However, that doesn't leave retailers who sell those manufacturers' products in the clear. In most states, if a consumer buys a product whose use causes them injury, everyone in the chain of distribution can be held liable. Even if a product proves harmless, if it's ineff ective the FDA and FTC can order it off the market—and the retailer stands to lose a lot of inventory. In the (likely) event that the manufacturer is no longer in business, the retailer is now stuck with unsellable product and no refund. Most importantly, that retailer has lost credibility and, potentially, valuable revenue. Another federal initiative similar to Operation Big Fat Lie seems unlikely with the regulatory climate now in Washington. However, spa owners shouldn't ignore the advice given in this column because similar state agencies continue to exist and have similar enforcement powers. Whether it's levied by the state or federal government, a fi ne of a million bucks looks exactly the same: huge. u dayspamagazine.com/freeinfo © GETTY IMAGES

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