That really doesn’t fly and is more in the realm of paranoia.
The FDA has a great deal more oversight for OTC products and prescription products. Believe me, if you ever work in these sectors you will not believe for a moment that the FDA is protecting the Pharmaceutical Industry.
These actions are in fact coming about due to actions on the other end of the market, the home crafters starting their new lines and “natural” lines. There are numerous cases where these lines have over stepped the line with aggressive marketing claims. Just read the companies cited and their claims.
The line between drugs and Cosmetics is important since many of the OTC actives have a greater potential for adverse incidents. This law hearkens back to some of the abuses in our past, especially in the area of patent medicine. Nobody wants to go back to the days of “snake oil.” These regulations serve a purpose to hold us accountable.
Lastly, anyone who has ever interacted with the FDA directly (an audit for example) will agree that the FDA is not heinous and evil, but rather they have a true desire to get people to comply. In my experience at least, every FDA audit has been non confrontational and a learning experience.