AN ECONOMIC ANALYSIS OF FOOD AND DRUG LAW: Selected Topics in FDA Enforcement

Abstract

In this paper, I hope to introduce the world of Law & Economics to the world of FDA enforcement. By no means is this an effort to analyze every problem dealing with the subject of FDA enforcement. Similarly, the purpose of this paper is not to arrive at solutions for problems, although I will suggest some. Most of the solutions to the topics I will discuss can only be made on a case-by-case basis. Rather than attempt that feat, this paper seeks to establish a rudimentary framework for thinking about the problems of FDA enforcement by analyzing five areas. Section A will discuss FDA sanctions and how they impact on incentives to act in a socially efficient way. The remaining four sections will take a more in depth look at four of the individual enforcement mechanisms. Section B will deal with inspection, C with seizure, D with criminal liability and the Guaranty Clause, and E with recall. Once again, this paper is only a beginning, not an end.