June 16, 2010

Update: Wall Street Reform Bill in Conference Committee – Help Keep Waxman Amendment Out!

Now that the Wall Street Reform and Consumer Protection Act has passed the Senate (S. 3217), it has to be reconciled with the House version (H.R. 4173). One of the most significant aspects that must be reconciled, at least for supporters of Dietary Supplements, is whether or not the Waxman amendment will be included in the final version to be signed by the President.

As you may recall, the Waxman amendment would give the Federal Trade Commission (FTC) the power to regulate supplements by requiring companies to conduct human trials of their product before making any claim about its action.

Currently, if the FTC challenges a claim made by a supplement company, it can compel the company to conduct human trials to back up its claim. If the claim can be substantiated, the FTC can not take further action. If the claim can not be substantiated, the FTC can take action. But this action is limited to marketing and claims – not formulation or production.

If this law were enacted with the language Congressman Waxman has inserted, the FTC would essentially gain the power to circumvent the regulatory framework set forth for the FDA through DSHEA. It is interesting to note that the FTC used to have powers similar to those Waxman wants to give, but Congress took them away in the 1980‘s due to instances of abuse.

Requiring human trials before making any claims for supplements would cripple the industry, effectively establishing a regulatory framework similar to prescription drugs. This is a popular angle for the opponents of dietary supplements to attack, since it is well known that such unreasonable financial requirements would increase the final price of supplements to the consumer by such an amount so as to make them unobtainable.

On June 9, House Speaker Nancy Pelosi named ten members of the House Financial Services Committee to the conference committee: Bachus (R–Alabama); Barton (R–Texas); Biggert (R–Illinois); Capito (R–West Virginia); Frank (D–Massachusetts); Garrett (R–New Jersey); Graves (R–Missouri); Gutierrez (D–Illinois); Hensarling (R–Texas); Issa (D–California); Kanjorski (D–Pennsylvania); Kilroy (D–Ohio); Lucas (R–Oklahoma); Maloney (D–New York), Meeks (D–New York); Moore (D–Kansas); Peters (D–Michigan); Royce (R–California); Smith (R–Texas); Waters (D–California); and Watt (D–North Carolina).

The House members will now join the Senate conferees: Corker (R–Tennessee); Crapo (R–Idaho); Dodd (D–Connecticut); Gregg (R–New Hampshire); Johnson (D–South Dakota); Reed (D–Rhode Island); Schumer (D–New York); and Shelby (R–Alabama).

All indications point towards a reconciliation before the July 4th recess, so urgent action is required. If you like free access to supplements, please take a moment to click the link to the right and make your voice heard.

Only a few precious weeks remain for us to make sure the Waxman amendment is kept out of the final version. Keep the FTC out of your supplements, act today!