Our firm has substantial experience in representing nutritional supplement manufacturers. For that reason, the news that the Justice Department and federal agencies (such as the FTC) is engaged in a nationwide sweep of such companies is newsworthy. This sweep has consisted of both criminal and civil/regulatory actions that will take years to unravel.
Other manufacturers/distributors might wonder if this government action is relevant to them. The short answer is “yes” for the following reasons:
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This type of sweep is not limited to nutritional supplement companies. As reported previously in our blog, the Justice Department just recently targeted the food industry in the same manner.
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The Justice Department continues to indict individual executives. In a memo published in September, the DOJ emphasized that it will continue to pursue corporate executives individually for both criminal and civil liability.
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The criminal indictments relate in part to the manufacturer’s supply chain. Although the government claims that the subject of the indictments was engaged in a conspiracy with a Chinese supplier, all manufacturers/distributors are potentially responsible for the actions of their suppliers, particularly those that supply raw ingredients.
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