ABSTRACT

I. INTRODUCTION 92 II. THE FEDERAL TRADE COMMISION-GENERAL SCOPE

IV. CASE SELECTION CRITERIA IN FTC ADVERTISING ACTIONS 100 A. Consumer Interpretations of the Claim 100 B. Scale of the Deception or Lack of Substantiation 101 c. Materiality 101 D. Adequacy of Corrective Market Forces 101 E. Effect on Flow of Truthful Information 102 F. Deterrence 102 G. Law Enforcement Efficiency 102 H. Additional Considerations 102

V. FTC ACTIONS AFFECTING THE COSMETICS INDUSTRY 103 VI. THE POLITICAL CLIMATE AFFECTING THE FTC 105

VII. OTHER TYPES OF ADVERTISING REGULATION 107 NOTES 109

92 Donegan

I. INTRODUCTION

For companies engaged in the marketing of foods, drugs, cosmetics, or medical devices, the Food and Drug Administration (FDA) is clearly the most critical agency on the regulatory map in terms of premarketing approval of the product for safety and efficacy where necessary and scrutiny of the claims that will be made in labeling for the product. The powers of the FDA and the criteria it applies in regulating cosmetic products are fully described in Chap. 1.