Evolving regulatory environment. The regulatory environment for nutraceuticals has evolved significantly over the past decade. Claims for marketing and labeling are more clearly regulated and the dietary supplement business is governed by a defined set of rules laid out in the Dietary Supplement Health and Education Act. In late 2002, the U.S. FDA loosened its rules on health information and claims on food products, as part of an effort to encourage healthier eating habits among increasingly overweight Americans. This evolving regulatory environment makes science-based efficacy important for companies operating in this category.