Advertising groups hailed legislation passed by the House yesterday that allows the Food and Drug Administration to fine marketers for misleading direct-to-consumer drug ads. But it doesn't include any restrictions, such as a ban on advertising pharmaceuticals during their first two or three years on the market. The Senate is considering the bill; it may move to President George W. Bush as early as next week. The final compromise legislation--approved by a vote of 405 to 7--leaves out a number of curbs that could have had a significant impact on the more than $4.5 billion spent annually on DTC …

DuPont is investing $500 million to increase its production of Kevlar--which is used in both body and vehicle armor--by as much as 25% by 2010. In addition to its protective uses, "global megatrends" are driving demand for Kevlar, according to DuPont vice president Thomas Powell. The material is also used to make energy-efficient materials and for infrastructure projects in developing economies. Powell says high energy prices have increased the demand for lightweight strength fibers in the aerospace, oil and gas, and automotive industries. He also says the federal government made no specific requests for increased production. Less than …

While big watch brands like Omega and Rolex scour the planet for athletes and actors to serve as "ambassadors," limited-production super-luxury watches like Breguet, Patek Philippe and Vacheron Constantin are positioning themselves as icons of high culture. For example, Breguet's logo will be projected onto the wavy steel walls of the Walt Disney Concert Hall in two weeks when opera diva Renée Fleming performs in Los Angeles. The brand has paid enough money--neither side will say how much--to be named the official (and exclusive) timepiece of the Los Angeles Philharmonic. Though they're unlikely to garner …

It's another example of how marketers are reallocating advertising dollars to nontraditional methods of reaching consumers. The Dreyer's Grand division of Nestlé that sells Häagen-Dazs ice cream has been sponsoring an elaborate campaign centered on a contest to find an exotic flavor to sell under its brand name. "Scoop: The Häagen-Dazs Flavor Search" is a section on the Häagen-Dazs Web site (haagen-dazs.com/scoop)that includes user-generated content such as video clips, photographs and letters proposing ideas for flavors and promotional events at places like cooking schools, among its offerings. The contest is scheduled to end tomorrow with an announcement of …

By 2009, nearly half of Ford, Lincoln and Mercury cars and trucks will feature new and often trend-setting paint colors--a changeover that will be the biggest in the company's 104-year history. Some of the new hues already are on the road, like the fiery "blazing copper" featured on the Ford Edge crossover vehicle. Sixty percent of the cars and trucks sold in the U.S. today are coated in white, black, red and silver. Although those colors come in a variety of tones and finishes, color matters to consumers a lot more these days than this basic palette …

The National Basketball Association plans to announce today the formation of a Chinese subsidiary that will be run by Timothy Chen, CEO of Microsoft's China operations. China is already the N.B.A.'s largest market outside the United States, and it estimates that 300 million Chinese play basketball--a number equal to the entire population of the U.S. Nearly one-third of the traffic to NBA.com comes to the Mandarin Chinese side of the site. Branded N.B.A. merchandise is now sold through more than 50,000 outlets there. The N.B.A.'s challenge has been to win government agencies' approval for arena construction …

A plan proposed by the Grocery Manufacturers Association yesterday would require all importers to develop a plan for assuring the quality of imported foods and give the Food and Drug Administration the power to enforce it. The GMA represents the country's largest food suppliers, including Kraft Foods, H.J. Heinz and Dole Food. The proposal would also create a voluntary program that would allow importers to submit testing records, information about their supply chain and other data to the FDA in return for expedited processing at the borders. That would allow the FDA to focus on the riskiest importers, the …

The Food and Drug Administration says that Procter & Gamble is making unlawful marketing claims about Vicks Early Defense Foaming Hand Sanitizer, which launched last month. The Vicks Web site promotes the sanitizer for use by schoolchildren to prevent colds and to provide protection from germs for up to three hours. The FDA also asserts in a Sept. 14 warning letter that the active ingredient in the sanitizer, triclosan, needs to be rinsed off rather than allowed to dry on hands, as stated by the product's instructions. David Bernens, a Procter & Gamble spokesman, says the company …

Southwest Airlines has grown by bucking the industry for more than three decades. Next year, it's planning to make its boldest move ever: It will begin providing connecting domestic flights to passengers arriving in the U.S. on international airlines. Facing rising costs, more competition from copycats and the prospect of slower domestic growth, the nation's largest low-cost carrier wants to raise revenues by attracting more passengers per flight rather than hike fares, says CEO Gary Kelly. Eventually, the airline might even fly its own international routes, perhaps first to Mexico and Canada before taking on Asia and Europe, …

Kmart is relaunching its Martha Stewart Everyday home furnishings line next week after years of sagging sales and contract tussles. The revamped line offers better-quality bed and bath linens at lower prices, executives say. For example, a queen-size set of 500-thread-count sheets will have a regular price of $59.99, versus $79.99 for a 300-count set earlier this year. Kmart's relaunch, which overhauls 1,100 items, comes as Martha Stewart Living Omnimedia is rolling out a new proprietary line called Martha Stewart Collection in Macy's. But the overhaul, which has been in the works for a year, "has nothing to …