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Chinese Study Highlights Bogus Health Supplements

May 19, 2005

According to a survey conducted by the China Healthcare Association (CHCA), 26% of health supplements sold in retail outlets are bogus or wrongly indicated. A nationwide study of 2,951 products indicated that a quarter were also unauthorised or contained false marketing material.

The fact that a quarter of the bogus products claimed to reduce body weight is unsurprising, although foreign firms will be most concerned with the fact that many fake products use production license numbers belonging to other companies. This technique is harder for regulators to identify than outright counterfeiting of brand company packaging.

Nevertheless, the CHCA notes that many firms that carry out this illicit practice often wish to avoid drawing attention to themselves. The fact that such firms avoid marketing their brands openly could allow leading branded drugmakers more respite from fake drug competition than would be expected.

The CHCA has pledged to cooperate with regulatory authorities in clamping down on bogus OTCs. China's government is currently drafting a Food Safety Law, expected to increase penalties on fraudulent drugmakers. State regulators already claim that nearly half of China's 3,829 approved food supplement businesses have closed since receiving their initial authorisation.