Question

A US pharmaceutical company has claimed for years that their medication would cure headaches, but they were lying the entire time. The
medication was nothing more than candy that they sold as medicine so they could make a high profit. What should happen to this company and
why?
OA. Nothing; a company in a capitalist economy can say whatever they want as long as they make a profit.
О В. Nothing; it is the consumer's responsibility to figure out if a product is living up to its claim and stop buying it.
OC. A punishment; unfair practices and false claims are not tolerated under government supervision.
OD. A punishment; the United States, has a laissez-faire economy except for pharmaceutical companies, which is the only market
that is strictly regulated.

Answer 1

The companies will be punished because unfair practices and false claims are not tolerated under government supervision.

The practice of pharmaceutical company in US falls under the Drug Industry and this is strictly regulated by the Federal Food, Drug, and Cosmetic Act of 1938.

• The Act provided quality standards for food, drugs, medical devices and cosmetics which are manufactured and sold in the United States.

• It is provided in the Act that any company found defaulting to the Law provision and the quality standard expected from them, they shall be punished appropriately.

In conclusion, the company will be punished appropriately because unfair practices and false claims are not tolerated in United State.

Learn more about FD&C Act here

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Answer 2

Answer: A punishment; unfair practices and false claims are not tolerated under government supervision.

Explanation:

They would be doing false advertisement.