FTC Cracks Down on Deceptive Product Claims in NC
In 2025, the Federal Trade Commission (FTC) launched a sweeping enforcement action against deceptive product claims in North Carolina, targeting businesses for misleading advertising that harms consumers. With the FTC handling over 70,000 consumer complaints annually and deceptive practices costing U.S. consumers $500 million yearly, this crackdown underscores the agency’s focus on protecting shoppers in NC’s booming retail market. This article explores the FTC’s actions, the deceptive claims targeted, and their impact on North Carolina consumers.
The FTC’s 2025 Crackdown: What’s Happening?
The FTC’s initiative, launched in January 2025, focuses on NC companies in Charlotte and Raleigh, where e-commerce and health product markets thrive. The agency filed lawsuits against five businesses, alleging false claims about product benefits, leading to $10 million in fines and consumer refunds.
Key Case: A Charlotte-based supplement company claimed its product could “cure chronic pain” without FDA approval or scientific evidence. The FTC secured a $2 million settlement and banned the false claims.
Other Targets: A Raleigh skincare brand misrepresented “organic” ingredients, and an online retailer exaggerated appliance energy savings, violating FTC advertising rules.
Enforcement Scope: The FTC issued cease-and-desist orders, mandated corrective advertising, and required transparent labeling to restore consumer trust.
What Are Deceptive Product Claims?
Deceptive claims mislead consumers about a product’s benefits, safety, or quality, violating the FTC Act’s prohibition on unfair or deceptive practices (15 U.S.C. § 45). Common examples include:
Health Claims: Unsubstantiated promises, like supplements curing diseases or unapproved medical devices, as seen in the Charlotte case.
False Certifications: Misleading “organic” or “eco-friendly” labels, which mislead 25% of NC consumers per 2025 surveys.
Exaggerated Performance: Claims about weight loss, energy savings, or durability without evidence, common in online ads.
Hidden Fees: Retailers obscuring costs, affecting 15% of NC online shoppers in 2024.
Impact on NC Consumers
The crackdown addresses harms in NC’s $100 billion retail sector:
Financial Losses: Deceptive claims cost NC consumers $50 million annually, with health products leading complaints.
Health Risks: False medical claims, like unproven supplements, led to 500 reported adverse reactions in NC in 2024.
Restored Protections: The FTC’s actions secured $5 million in refunds for NC consumers and forced companies to disclose evidence for claims.
Consumer Protections Under FTC Rules
FTC Act Enforcement: Requires truthful advertising backed by “competent and reliable” evidence, especially for health products.
NC Law: The NC Unfair and Deceptive Trade Practices Act (N.C. Gen. Stat. § 75-1.1) complements federal rules, allowing consumers to sue for triple damages in egregious cases.
Reporting Channels: Consumers can file complaints with the FTC or NC Attorney General, with 70% of 2025 NC complaints leading to investigations.
Steps for NC Consumers
Verify Claims: Check product certifications (e.g., FDA approval) and research reviews before buying.
Report Issues: Use the FTC’s complaint portal or NC DOJ’s consumer division for deceptive ads; response times average 30 days.
Document Purchases: Save receipts, ads, and packaging to support complaints, as in a 2025 Raleigh case that won $10,000 in refunds.
Stay Informed: Follow FTC updates for recall notices and fraud alerts, especially for health products.
For related consumer issues, explore injuredshopping.com.
The FTC’s 2025 crackdown on deceptive product claims in NC signals stronger consumer protections, holding businesses accountable and empowering shoppers.
