Walter Bloomberg, an entrepreneur and influencer on microblogging site Twitter (TWTR), recently tweeted that the U.S. Food and Drug Administration (FDA) has issued warning letters to three companies for “Selling Unapproved New Drugs for Mole and Skin Tag Removal.”
Surprisingly, eCommerce behemoth Amazon.com (AMZN) is one of the three companies to have received a warning for selling over-the-counter non-FDA-approved mole and skin tag removal products. The sale of such drugs violates the Federal Food, Drug, and Cosmetic Act (FD&C Act). The other two companies mentioned in the letter are both health and beauty product companies, Ariella Naturals and Justified Laboratories.
The FDA stated in its warning letter that “There are no FDA-approved over-the-counter drug products for the removal of moles and skin tags.” The FDA further noted that moles should be checked by healthcare professionals as self-diagnosis and treatment could result in a delay in cancer detection and treatment.
To Amazon, the warning letter stated that “The introduction or delivery for introduction of these products into interstate commerce without an approved application is an additional violation of the FD&C Act.” Amazon sells tons of products through its eCommerce portal, including unapproved mole and skin tag removal drugs.
The FDA has given companies 15 days to respond and provide documentation of the steps they have taken to stop the sale of such products. Failure to do so would result in stricter actions.
Is Amazon a Safe Buy?
On TipRanks, AMZN stock commands a Strong Buy consensus rating based on 39 whopping Buys against one Hold. The average Amazon.com price target of $176.04 implies 27.7% upside potential to current levels. The company is the world’s largest e-commerce platform and commands a solid moat. With the majority of analysts having a strong conviction on the stock, it is surely a safe company to invest in.