Guy,
My guess is that OTC products are primarily self-policed by competitors. If a company makes claims that a competitor feels is unsubstantiated, legal action can be taken in an attempt to halt such claims. As an example, I read recently that Warner Lambert brought to the attention of the court, that Breath Asure, Inc was making alleged false and misleading claims with regard to Breath Asure capsules (NOT Breath Asure Gum). Quoting from the press release:
Warner-Lambert took the legal action to protect consumers from false and deceptive claims because it feared that products promoted in a false and misleading manner could ultimately undermine consumers' confidence in all breath freshening products
prnewswire.com
If a competitor feels that GelTech is making false and misleading, or unsubstantiated claims with regard to Zicam, I would expect a competitor in the OTC cold remedy market to ask GelTech to stop making such claims. If they fail to stop making the claims, presumably because GelTech believes that their claims are valid, then the competitor can file a complaint with a court and a judge will decide if the company can substantiate their claims.
BTW, I don't think the ruling against Breath Asure has any negative implications to GumTech, or to Breath Asure's relationship with GumTech. The injunction was only for the capsules and neither the judge, nor Warner Lambert, alleged that Breath Asure made misleading claims with regard to their gum product. You might notice that Breath Asure, Inc. has already complied with the courts ruling and reworded claims on their packaging, web site, and other advertising media.
Dan |
