This is a short training video transcript (Kevin Thompson) for network marketing distributors explaining FDA rules on product claims. It distinguishes illegal "health" or "disease" claims (statements that a food/supplement mitigates or cures disease, broadly defined by the FDA to include common conditions) from legal "structure/function" claims (statements about supporting or affecting body structure or function). The speaker emphasizes avoiding explicit or implied disease claims and sticking only to company-approved, pre-approved marketing/scripted claims.
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In this segment, we'll be covering the very important topic of health claims. This is especially important for your business because this company is selling a product with numerous health benefits. This is a very tricky area of the law and it's absolutely imperative that you understand the boundaries when it comes to product claims. The Food and Drug Administration is responsible for protecting the public health by making sure the food and supplements we consume are, are safe and properly labeled. They also regulate the market for appropriate claims about food, cosmetics and supplements. In the network marketing industry, companies that sell nutritional products need to be extra careful regarding the claims that get made about those products because the claims are being made largely by brand new distributors, people perhaps like yourself. While the products are very likely to be fantastic and beneficial for a consumer's health, it's ultimately the company's responsibility to ensure that the field has discipline when it comes to making claims about those products and about the ingredients. We'll start with the basics. Unless it's coming from a pharmaceutical manufacturer, health claims are almost always considered illegal. So what is a health claim? Well, the FDA defines a health claim as a statement that connects a food or supplement with the mitigation or curing of a disease. This is why health claims are commonly referred to as disease claims. You see, only drugs can be marketed as having an impact on disease, and drugs are required to meet the FDA's rigorous testing and approval process before being sold. Okay, so since we can't talk about products being used to mitigate diseases, the next thing for us to understand is, is the FDA's definition of a disease. Now be careful with this one because it's not very intuitive. The FDA broadly defines disease to include damage to a structure or system of the body so that it doesn't function right. Well, under this definition, a common cold is literally considered a disease. So when it comes to product claims, you're obviously limited. And not surprisingly, even if you fail to reference a disease by its specific name, such as cancer or diabetes, the FDA will still find issue with the claim. If there's a strong inference that a disease can be cured, it's known as an implied health claim. Examples would be this product can relieve you of a runny nose and watery eyes caused by exposure to allergens. Obviously we're talking about allergies. This product improves joint mobility and reduces joint inflammation. And there we're talking about arthritis. This product is like herbal Adderall. And of course we're talking about add. This is a good spot for us to take a short break and test what you've learned to this point. Regarding health claims, it should only be a couple of questions, so you'll be done in no time and I'll see you at the turn While health claims are not permissible, structure function claims are perfectly legal and they're a fantastic way of marketing your product. A structure function claim is a claim about a product's ability to affect, wait for it, the structure or function of the human body. Basically, if the product enhances a bodily function, you can talk about it. These types of claims are okay as long as the claim is not a disease claim. So it's okay to talk about the general health benefits of a product, provided you're not implying that the product can mitigate or cure a disease. So here are some examples. This product has been shown to reduce stress. This product can improve mental alertness. This product helps maintain regularity. This product helps support cartilage and joint function. Or this product helps to maintain cholesterol levels that are already within the normal range. You get the idea. This is what this section really boils down to. Since you've recently joined a company that sells some wonderful nutritional products, it's really important that you only make claims that have been prepared for or approved by the company. It's worth repeating. It's very important that you only make claims that have been prepared or approved by the company. So let's go over the highlights. Health Claims Bad structure function claims Good health claims, also known as disease claims, occur when a statement connects a product with the mitigation of a disease. And as you learned earlier, the word disease is broadly defined to include very common illnesses such as seasonal allergies or a common cold. Structure function claims, on the other hand, are perfectly legal and commonly used by companies that sell natural products with numerous health benefits. While the products may not be drugs, they can certainly be effective towards the improvement of numerous bodily functions. And it's really important that you accurately educate consumers on those benefits. And along those lines, it's imperative that you stick to the script that contains the approved claims provided to you by the company. That's a wrap for this segment. It's time to take a short quiz to make sure it all sank in. Take care and good luck.
