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In its rule, FDA admits that the
regulations:
- may result in the elimination of over 100 dietary supplement
companies
- will likely increase the cost of dietary supplements
- will
likely decrease demand for dietary supplements
- will likely create
costly new barriers to market entry
Moreover, the FDA admits that the
regulations will impose the greatest economic burden on very small (20
or fewer full time employees) and small (500 or fewer employees) dietary
supplement companies.
We commissioned Dr. Steve Hanke, former Senior
Economist on President Reagan's Council of Economic Advisers, to
evaluate the economic impact of the regulations and he predicts the
burden will be approximately ten-fold higher than FDA has predicted.
These regulations impose costly obligations on the industry and focus
primarily on process rather than outcomes. They mandate new testing,
master manufacturing records, complaint records, disposition records,
and new procedures to ensure the identity, purity, strength, and
composition of dietary supplements. They mandate compliance with
education, training, and experience requirements for quality control
personnel and supervisors.
Failure to comply with the regulations is
deemed "adulteration" without need for proof that products present an
actual risk of illness or injury to the public.
The FDA is implementing
these regulations in a tiered fashion, requiring companies of 500
employees or more to come into compliance in July of 2008, of between 20
and 499 employees to come into compliance in July of 2009, and of
between 1 and 20 employees to come into compliance in July of 2010.
Whether your company manufactures, holds, or distributes dietary
supplements, early achievement of compliance is well-advised.
- Emord & Associates held a three-hour teleconference one business day
after adoption of the rules. You may obtain a copy of the three-hour
conference on CD from the firm by calling 202-466-6937.
- Emord & Associates has created a Compliance Kit, including detailed
checklists, for your use in achieving compliance with the new cGMPs.
You may obtain a copy of the Compliance Kit from the firm by calling
202-466-6937.
- Emord & Associates offers on-site audits to evaluate compliance and
assist in modifying operations to ensure compliance. You may schedule
an on-site audit from the firm by calling 202-466-6937.
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