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What does the FTC have to do with healthcare? Recent enforcement actions and warnings paint a telling picture.
HHS, CMS, OIG, FDA—most healthcare professionals are familiar with these federal agencies and and their impact on their operations. But the Federal Trade Commission (FTC), which enforces consumer protection laws, also plays a role in healthcare regulation. While the FTC may not be the first agency you associate with healthcare, ignoring it can be risky.
What does the FTC do?
One of the FTC’s chief purposes is to enforce federal consumer protection laws that focus on preventing fraud, deception, and unfair business practices.
FTC guidance comes in different forms. For example, the FTC issues warning letters to alert companies that their conduct is likely unlawful and must immediately stop to avoid a federal lawsuit. These warning letters are not court-ordered enforcement measures—they merely serve as a cease and desist, with threats for additional action. But these letters can reveal enforcement trends—what is the FTC focusing on, and which industries and business practices are under scrutiny?
While lawsuits are less common, they also provide useful clues about the FTC’s priorities. FTC-related cases highlight where enforcement is directed and the penalties noncompliant parties will face. So, who is the target of these enforcement actions? What is the FTC looking for? Let’s examine some recent examples.
Spotlight on the Eyeglass Rule: FTC Action in Patient Choice
The Eyeglass Rule, in place since 1978, requires optometrists and ophthalmologists to give patients a free copy of their prescription after an eye examination. It also prohibits optometrists and ophthalmologists from requiring patients to purchase glasses or contact lenses in-house as a condition of receiving an eye exam. The rule aims to promote patient choice by allowing comparison shopping for ophthalmic goods.
The FTC has shown new interest in the rule and issued updates in the summer of 2024. As part of this renewed focus, the FTC sent 37 new cease and desist letters to eyeglass prescribers. The agency also updated its resources for providers and created new resources for patients on their rights. Thus, If you provide eye exams, compliance with the Eyeglass Rule is key for staying out of trouble with the FTC.
COVID Health Claims and FTC Warnings: CBD, IV Therapies, and More
Throughout the pandemic, the FTC cracked down on companies marketing products with misleading claims about COVID-19 prevention or treatment. One such product is cannabis, or more specifically, CBD, which lacks scientific support as an effective treatment. As states’ legalization of cannabis expands, the FTC has worked with the Food and Drug Administration (FDA) to target companies that market their cannabis products as a way to prevent, treat, or cure COVID-19.
For example, a New York-based CBD purveyor posted blog articles claiming that CBD oil was “safe and/or effective for the treatment and prevention of COVID-19.” In response, the FTC issued a warning letter requiring the company to review its online marketing material and send an action plan for addressing any violations within 48 hours of receipt. The company removed the blogs from their website.
The FTC has also issued warning letters to companies promoting IV vitamin therapies and immune system tinctures as COVID treatments or preventive measures. Note that healthcare practices and businesses must meet the FTC’s standards even when posting patient testimonials. For example, one aesthetics practice reposted Google reviews from patients who claimed IV therapy helped treat COVID-19 symptoms on its Facebook page and website. In a warning letter, the FTC stated that the practice must rely on “competent and reliable scientific evidence” when making claims about healthcare products and services. Without such evidence, the practice could not present any claims—whether from the business itself or from patients—relating to COVID and vitamin therapies.
These examples serve as a warning for anyone who markets healthcare services online. The FTC has shown its willingness to review websites and social media accounts and to issue warning letters in response to violations. The letters often require swift action, sometimes demanding a response within 48 hours. Receiving a warning letter from the FTC and FDA can also land your company’s name on a public FDA database of businesses flagged for issues such as health misinformation.
Addressing Misinformation for Vulnerable Populations
Similar to how it has dealt with COVID misinformation, the FTC has taken serious action against those sharing false or unsupported claims for addiction treatment services, cancer treatment services, and the treatment of other serious conditions.
The FDA brought a lawsuit against a Tennessee-based physician and clinic that advertised treatments for opioid addiction, alcohol addiction, cancer, Alzheimer’s, and Parkinson’s disease. The clinic’s ads claimed a “98% Improvement Rate . . . Treating Just About . . . Anything.” Despite prior warning letters, the clinic continued its advertising. In a settlement order, the FTC and Department of Justice imposed $100,000 in civil penalties and barred the clinic from making similar advertising claims in the future. Moreover, the clinic must submit compliance reports to the FTC for the next decade. Other companies have been required to send letters detailing the lawsuit to customers who bought their products, damaging their reputations.
What Healthcare Practices and Business Owners Need to Know About FTC Compliance
While not all FTC enforcement actions relate specifically to healthcare, the agency pays close attention to healthcare-related misinformation, especially when it targets vulnerable populations. If you’re selling products or making claims about your services—particularly in online or public forums—know that the FTC regulations can significantly affect the way you do business. Carefully review any claims you make or publish, evaluate your online presence, and ensure your policies and procedures align with FTC standards. Could you be spreading any misinformation? Are you engaging in anything that could be seen as false marketing to your patients?
Even if you’re not selling products—or you believe that you’re fully compliant— consider your business partners carefully. Links to products on your website or associations with companies that engage in questionable behaviors can also attract scrutiny and reflect badly on your own operation.
Get Legal Support
The FTC may not be at the forefront of your healthcare compliance conversations. Nonetheless, it’s crucial when evaluating your practice’s liability. Keeping an eye on the FTC’s enforcement trends can provide valuable insights into potential risks and help ensure that you align with the laws and regulations.
As the FTC ramps up enforcement, it’s essential to understand how regulations might affect your marketing and online presence. Jackson LLP Healthcare Lawyers can help you assess your advertising to protect your practice or business. If you operate in one of the states where we have licensed attorneys, schedule a consultation to discuss your needs with our team.
This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
