Podcast
Questions and Answers
What is the primary responsibility of the USDA in relation to the FDA?
What is the primary responsibility of the USDA in relation to the FDA?
- Sanitation of meat, poultry, and eggs (correct)
- Regulating all pharmaceuticals
- Consumer education on food safety
- Approval of new drug compounds
What duration is typically required for the FDA approval process of new prescription drugs?
What duration is typically required for the FDA approval process of new prescription drugs?
- 5-7 years
- 14-15 years (correct)
- 10-12 years
- 20-25 years
Which of the following is NOT a requirement for advertisements according to the FTC?
Which of the following is NOT a requirement for advertisements according to the FTC?
- Advertisements must not be unfair
- Claim must have evidence to support it
- Advertisements must be entertaining to consumers (correct)
- Advertisements must be truthful and nondeceptive
In the case POM Wonderful, LLC v. FTC, what was the main issue with the company's health claims?
In the case POM Wonderful, LLC v. FTC, what was the main issue with the company's health claims?
Under the Lanham Act, who can bring a civil action against misrepresentation in commercial advertising?
Under the Lanham Act, who can bring a civil action against misrepresentation in commercial advertising?
What is one significant challenge pharmaceutical companies face in bringing new drugs to market?
What is one significant challenge pharmaceutical companies face in bringing new drugs to market?
What does the Truth-in-Lending Act require creditors to disclose?
What does the Truth-in-Lending Act require creditors to disclose?
Which agency is responsible for overseeing different regulations related to consumer credit, alongside the FTC?
Which agency is responsible for overseeing different regulations related to consumer credit, alongside the FTC?
Flashcards
What does the FDA do?
What does the FDA do?
The FDA regulates the safety of food and drugs, ensuring their quality and preventing misleading claims.
What does the FTC oversee?
What does the FTC oversee?
The FTC investigates unfair and deceptive trade practices, particularly in advertising. It ensures ads are truthful, backed by evidence, and fair.
What constitutes deceptive advertising?
What constitutes deceptive advertising?
A misrepresentation or omission of information in a communication to consumers, likely to mislead a reasonable consumer and is material.
What does the Lanham Act protect?
What does the Lanham Act protect?
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What is the Truth-in-Lending Act?
What is the Truth-in-Lending Act?
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How long does it take to get FDA approval for a new drug?
How long does it take to get FDA approval for a new drug?
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What are the FTC's rules for advertising?
What are the FTC's rules for advertising?
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What does the FDA do if it finds unsafe products?
What does the FDA do if it finds unsafe products?
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Study Notes
Food and Drug Administration (FDA)
- Monitors and regulates food and drug safety;
- USDA is responsible for meat, poultry and eggs sanitation;
- No prescription drugs can be marketed without FDA approval;
- Approval process is lengthy (14-15 years), expensive (over $1 Billion), and risky (only ~1 in 5,000 new drugs make it).
- FDA enforces regulations, forcing products off the market for safety or misleading claims; (hundreds each year)
Federal Trade Commission (FTC)
- Investigates unfair and deceptive trade practices;
- Defines deception: misrepresentation or omission of information likely to mislead a reasonable consumer & is material;
- Advertising regulations: truthful, evidence-based, and not unfair;
- POM Wonderful, LLC v. FTC case: Advertising claims of scientifically proven health benefits were unsubstantiated and therefore deceptive, FTC cease-and-desist order upheld.
- Lanham Act Section 43: Civil action liability for misrepresenting goods/services or commercial activities in advertising.
- State Attorneys General also pursue lawsuits against fraudulent practices.
Consumer Credit Protection
- Congress passed many laws regulating consumer credit, overseen by different agencies (FTC and Federal Reserve Board);
- Key Consumer Credit Statutes:
- Truth-in-Lending Act (TILA): creditors must disclose credit terms;
- Consumer Leasing Act: regulates consumer leases;
- Fair Credit Billing Act (FCBA): corrects inaccurate or unauthorized charges;
- Fair Credit Reporting Act (FCRA): focuses on accuracy and confidentiality of consumer credit reports;
- Equal Credit Opportunity Act (ECOA): prohibits unlawful credit discrimination (based on prohibited attributes).
- Fair Debt Collection Practices Act (FDCPA): reduces abusive, deceptive, and unfair debt collection practices.
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Description
This quiz covers the essential roles and regulations of the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC). Learn about the approval processes, safety regulations, and the significance of advertising truthfulness. Test your knowledge on how these agencies protect consumers and ensure fair trade practices.
