A common question in the advertising law field is “does advertising law apply to companies located in other countries?” The quick answer is YES, if they advertise and sell products in the USA.
If a company is doing business in the USA, then USA law normally applies. Given the surge of COVID-19 miracle cures being advertised, the FTC and the FDA are conducting joint enforcement of such false and misleading advertising in the USA. An example of such joint enforcement is the agencies’ recent Warning Letter to a Canadian company whose website claims “Chaga is believed to be one of the highest antioxidants you can get and guess what that means it may fight against Corona-virus and or cancer. I am taking my Chaga everyday so I hopefully don’t get controlled by a virus. . .”
Best business practice is to have all marketing be legally compliant with all applicable laws in the USA by having campaigns reviewed before launching them publicly, regardless where the company is located. It is especially important when advertising online targeting consumers in the USA.
Friendly reminder: Substantiation + transparency = TRUST! Having legally compliant marketing campaigns and business builds trust.
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