In June, the FDA announced new standards for dietary supplements that are supposed to improve consumer safety. In reality, the 800-page rule will likely interfere with business while intentionally eliminating various dietary supplement companies from the market.
Gone Within Five Years
The rule will be phased in over the next three years, and within five years half of the supplement industry could be gone or selling their products at significantly higher prices.
Independent analysis of the rule found that compliance costs will be 10 times the FDA estimates. The ruling surrounds the dietary supplement industry with regulations and requirements in excess of those imposed on the drug industry, and up to 50 percent of small companies will simply not be able to afford to comply.
“Hard Pressed to Continue to Operate”
The FDA itself states in the rule that:
“Establishments with above average costs, and even establishments with average costs, could be hard pressed to continue to operate. Some of these may decide it is too costly and either change product lines or go out of business.”
The rule will also raise the price of dietary supplements to consumers. According to the FDA:
“We expect that the majority of these costs will be borne by consumers of dietary supplements, who will likely respond to the increase in prices by reducing consumption.”
News With Views June 27, 2007