Expansion of FTC Powers Rejected in Wall Street Reform Bill

September 20, 2010

A bill aimed at financial reform will not include broadened Federal Trade Commission (FTC) powers. The final version of the bill, the Restoring American Financial Stability Act of 2010 (S. 3217), will not include provisions that would have provided FTC with "additional authority [that] very likely would have led to advertising rules that would have undercut the protections of the Dietary Supplement Health and Education Act," stated the Natural Products Association (NPA).

A bill aimed at financial reform will not include broadened Federal Trade Commission (FTC) powers. The final version of the bill, the Restoring American Financial Stability Act of 2010 (S. 3217), will not include provisions that would have provided FTC with "additional authority [that] very likely would have led to advertising rules that would have undercut the protections of the Dietary Supplement Health and Education Act," stated the Natural Products Association (NPA).

Industry associations celebrated the news, which broke on Friday, June 25. Many credited their members with helping speak out against the bill...s provision.

'Good grassroots and good lobbying are a powerful combination,' said John Gay, NPA...s executive director and CEO.

NPA also credited the influence of the more than 28,000 messages that were sent to Capitol Hill through NPA...s website.

The Council for Responsible Nutrition also celebrated the news. 'The provision, if passed, would have negatively impacted the dietary supplement industry'”and many other industries'”because it would have given FTC free reign to rewrite its own advertising regulations,' said Mike Greene, vice president, government relations, CRN. 'This would have come at the expense of consumers, who would not have been able to obtain complete information about consumer products.

He added, 'If FTC can provide evidence to Congress as to why it requires additional authority over industry advertising, this issue should be heard through the FTC Reauthorization Act in the Energy and Commerce Committee'”not tacked onto the Financial Regulatory Reform legislation.'