Product Description Regulatory Frameworks & Compliance 2 — Questions and Answers
Question 1: Under FTC guidelines, if a product description claims a supplement 'boosts immune function,' what disclosure is typically required?
- A disclaimer that the statement has not been evaluated by the FDA (Correct answer)
- A full ingredient list in the headline
- A physician endorsement
- A money-back guarantee statement
Correct answer: A disclaimer that the statement has not been evaluated by the FDA
The FTC and FDA require dietary supplement claims to include the disclaimer that the statement has not been evaluated by the Food and Drug Administration.
Question 2: Which regulation governs the mandatory safety warning labels on children's products sold in the US?
- Consumer Product Safety Improvement Act (CPSIA) (Correct answer)
- Fair Packaging and Labeling Act (FPLA)
- Lanham Act
- Uniform Commercial Code (UCC)
Correct answer: Consumer Product Safety Improvement Act (CPSIA)
The CPSIA establishes safety standards and labeling requirements for children's products, including mandatory warnings about choking hazards.
Question 3: A product description for a cleaning product omits a required safety warning. Under which act can the manufacturer face penalties?
- Federal Hazardous Substances Act (FHSA) (Correct answer)
- Sherman Antitrust Act
- Robinson-Patman Act
- Clayton Act
Correct answer: Federal Hazardous Substances Act (FHSA)
The FHSA requires hazardous household substances to display specific warning labels; omitting them exposes manufacturers to regulatory penalties.
Question 4: What does the term 'material connection' mean in the context of FTC endorsement guidelines for product descriptions?
- A relationship between the endorser and the brand that could affect the credibility of the endorsement (Correct answer)
- The physical composition of the product being described
- A legal contract between a retailer and a manufacturer
- A required safety certificate from a testing lab
Correct answer: A relationship between the endorser and the brand that could affect the credibility of the endorsement
A material connection—such as payment or free products—must be disclosed because it could influence the endorser's opinion and mislead consumers.
Question 5: Under the Magnuson-Moss Warranty Act, if a written warranty is provided for a consumer product costing more than $15, the warranty must be made available to consumers:
- Before the purchase is made (Correct answer)
- Only after the product is purchased
- Within 30 days of the sale
- Only upon written request
Correct answer: Before the purchase is made
The Magnuson-Moss Warranty Act requires that written warranties be available to consumers prior to sale so they can make informed purchasing decisions.
Question 6: Which FTC standard applies when a product description uses the term 'cruelty-free' without certification?
- The claim may be considered deceptive if it misleads consumers about animal testing practices (Correct answer)
- The term is federally defined and always permitted
- Only the FDA can regulate such claims
- The term requires no substantiation if it appears on cosmetics
Correct answer: The claim may be considered deceptive if it misleads consumers about animal testing practices
Because 'cruelty-free' has no official federal definition, an unsubstantiated or misleading use can violate FTC deception standards.
Question 7: A US e-commerce seller lists a product as 'FDA Approved.' Under what circumstance is this claim accurate?
- Only when the FDA has reviewed and formally approved the specific product, such as a drug or medical device (Correct answer)
- Whenever the product meets general manufacturing safety standards
- When the product is manufactured in an FDA-registered facility
- When the product has passed third-party lab testing
Correct answer: Only when the FDA has reviewed and formally approved the specific product, such as a drug or medical device
FDA approval is a formal process reserved for specific product categories like drugs and medical devices; most consumer goods are not FDA approved.
Product Description Regulatory Frameworks & Compliance 2
Under FTC guidelines, if a product description claims a supplement 'boosts immune function,' what disclosure is typically required?