Here's How to Pay for It

If I were a legislator, I would call for passage of a Utah Health Product Advertising Regulation Act (PARA). I will write about the features of the act in another post. At the moment, I would just like to set forth how the measure could be financed.

And to do that, we should set forth the expected expenses:

Staffing -- The program would perhaps require four to six people (investigators, legal analysts, and registry administrators). Estimated expense: $450,000.

Technology infrastructure -- Secure a database, purchase AI monitoring tools, and establish a reporting portal. Estimated expense: $150,000.

Enforcement operations -- Investigations, expert reviews, legal filings, and interagency coordination. Estimated expense: $100,000.

Public outreach and education -- Website, consumer alerts, training for retailers and platforms. Estimated expense: $50,000.

Administration and overhead -- Office space, equipment, travel, and compliance audits. Estimated expense: $75,000.

Total estimated annual expense: $825,000.

To help fund the program, each product making health claims would have to register each year. The cost of registering a single product would be $250, a product line (3-10 items) would be $1,000, and national brands would be $5,000. Revenue projected from registration: $500,000.

Penalties assessed would also contribute to the revenue. First offenses would be fined $1,000, second offenses $5,000, and each subsequent offense $10,000. Blatant, knowing, willful deceptions would be hit with $25,000 fines. Revenues projected from civil penalties: $100,000.

Federal grants would provide a third source of income. The FDA grants are projected to bring in $500,000.

Total revenue expected: $1,100,000.

(Index: Blog)