What Happened to Snake Oil (Historical Context)?

The concept of "snake oil" traces its roots to the 19th-century American West, where itinerant salesmen peddled supposed cure-alls. While the term became synonymous with fraud, its origins are linked to traditional Chinese medicine. Chinese laborers building the Transcontinental Railroad in the 1840s brought with them oil derived from the Chinese water snake (Laticauda semifasciata), which was genuinely used as an anti-inflammatory for conditions like arthritis due to its high omega-3 fatty acid content.

American entrepreneurs quickly capitalized on the perceived exoticism and efficacy of "snake oil," but often substituted the genuine article with cheaper, ineffective ingredients. A prominent figure was Clark Stanley, the self-proclaimed "Rattlesnake King," who gained notoriety at the 1893 Columbian Exposition in Chicago. Stanley's "Snake Oil Liniment" was later analyzed by the U.S. government in 1915 and found to contain primarily mineral oil, beef fat, capsicum, and camphor, with no actual snake-derived oil. He was subsequently fined for misbranding and misrepresenting his product.

The proliferation of such fraudulent "patent medicines" was facilitated by a lack of federal regulation in the United States until the early 20th century. Key legislative milestones, such as the 1906 Pure Food and Drug Act and the 1938 Federal Food, Drug, and Cosmetic Act, began to establish standards for drug safety, effectiveness, and truthful labeling, significantly curtailing the overt sale of such blatant quackery.

In the 21st century, the term "snake oil" has broadened to describe any deceptive marketing, health care fraud, or scam, extending beyond physical remedies to encompass valueless goods, services, ideas, and even political rhetoric. Modern manifestations include unproven herbal medicines, dietary supplements, and various wellness products often promoted by charismatic podcast hosts, celebrity "wellness experts," and social media influencers. The digital age, particularly social media, has become a significant vector for the rapid spread of health misinformation, creating echo chambers and eroding trust in authoritative institutions.

As of May 2026, government agencies are intensifying their efforts to combat contemporary "snake oil." The Department of Justice (DOJ) announced a record-setting National Health Care Fraud Takedown in June 2025, resulting in charges against 324 defendants for over $14.6 billion in alleged fraud. The DOJ also launched a new West Coast Strike Force in April 2026 to target health care fraud. The Federal Trade Commission (FTC) established a Healthcare Task Force in March 2026 and has taken recent actions against deceptive health insurance marketing, unsubstantiated height-enhancing supplements (April 2026), and telehealth companies making false claims about GLP-1 weight-loss programs (December 2025). Similarly, the Food and Drug Administration (FDA) has issued numerous warning letters to telehealth companies for misleading claims regarding compounded GLP-1 products (March 2026) and, as of May 2026, is moving to restrict large-scale compounding of these drugs, signaling a continued aggressive stance against health fraud.