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IN RE GENERAL NUTRITION INC Click to find out why . . .



Keywords & Phrases
CaseNo: IRGNI137396, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, UniqueCaseRef: LCD>IRGNI137396, Gnc, Commission, Nutrition, Act, Franchisees, Ftc, Paragraph, Request, Modify, Federal Trade Commission, Respondent, Licensees, Vitamin, Provision, Consent, Disclosure, Drug Administration, Fda, Ingredient, Representation, Dietary Supplement, Deficiency, Fda Regulations, Advertising, General Nutrition, Affirmative Defense, Compliance, Changed Conditions, Dshea, Desist Order , ContentID: 120247784

Case Documents
1 1999-05-07 ORDER
[ see first page and extracted highlights below  ] ItemID: 118778
23 pages
PDF
Total Documents: 1 document , 23 pages
Price: $ 19.95


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1 . ORDER

EXTRACTED KEY WORDS
COMMISSION
NUTRITION
ACT
FRANCHISEES
FTC
PARAGRAPH
REQUEST
MODIFY
FEDERAL TRADE COMMISSION
RESPONDENT
LICENSEES
VITAMIN
PROVISION
CONSENT
DISCLOSURE
DRUG ADMINISTRATION
FDA
INGREDIENT
REPRESENTATION
DIETARY SUPPLEMENT
DEFICIENCY
FDA REGULATIONS
ADVERTISING
GENERAL NUTRITION
AFFIRMATIVE DEFENSE
COMPLIANCE
CHANGED CONDITIONS
DSHEA
DESIST ORDER
                                     UNITED STATES OF AMERICA
                                     FEDERAL TRADE COMMISSION

________________________________________________)
In the Matter of                                                )
                                                                )
GENERAL NUTRITION CORPORATION,                                  )
   a corporation, also trading as                               )
NATURAL SALES COMPANY, and                                      )       DOCKET NO. C-1517
DAVID B. SHAKARIAN,                                             )
  individually and as an officer                                )
  of said corporation.                                          )
________________________________________________))
In the Matter of                                                ))      DOCKET NO. 9175
GENERAL NUTRITION, INC.                                         )
   a corporation.                                               )
________________________________________________)


    ORDER GRANTING IN PART AND DENYING IN PART REQUEST TO REOPEN THE
    PROCEEDING AND MODIFY CEASE AND DESIST ORDER IN DOCKET NO. C-1517
  AND DENYING REQUEST TO REOPEN AND MODIFY CEASE AND DESIST ORDER IN
                                          DOCKET NO. 9175

        On May 7, 1999, General Nutrition, Inc. ("GNC") filed a request to reopen the proceedings
in Docket No. C-15171 and 91752, and to modify the orders issued by the Commission, pursuant to
Section 5(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. § 45(b), and Section
2.51 of the Commission's Rules of Practice, 16 C.F.R. § 2.51.3   The request was placed on the
public record for 30 days for comment.  No comments were filed.   GNC also requests that the
Commission seek the Department of Justice's assistance in asking a federal court to modify a 1994
consent decree4 enjoining GNC from violating these two orders and from making deceptive claims
for any hair loss product.

                               I.     THE ORDERS AND THE DECREE


     1  75 F.T.C. 529 (1969), modified, 77 F.T.C. 1458 (1970) ("1969 order").

     2  111 F.T.C. 387 (1989) ("1989 order").

     3  Pursuant to Section 3.72(b)(3)(ii) of the Rules of Practice, 16 C.F.R. § 3.72(b)(3)(ii),
two administrative orders will terminate no sooner than April 28, 2014.

     4  Civil No. 94-686 (W.D. Pa. May 20, 1994).



        The 1969 order applies to all food or drug preparations containing vitamins and/or
minerals marketed by GNC and its "officers . . . agents, representatives and employees, directly or
SNIPPETS:
  • ORDER GRANTING IN PART AND DENYING IN PART REQUEST TO REOPEN THE PROCEEDING AND MODIFY CEASE
  • On May 7, 1999, General Nutrition, Inc. filed a request to reopen the proceedings in Docket
  • GNC also requests that the Commission seek the Department of Justice's assistance in asking a
  • Paragraph 1prohibits GNC from claiming the use of any such preparation will be of benefit in nnot be self-diagnosed and can be determined only by tests conducted under a physician's
  • Paragraphs 1-prohibit GNC from making specific false claims involving the body's ability to
  • Paragraph 2 prohibits GNC from disseminating any advertisement of a product advertised for
  • Paragraph 2 contains a safe harbor providing that any regulation by the FDA affirmatively
  • of Enforcement, Bureau of Consumer Protection, FTC, to Christopher Smith, Arent Fox Kintner
  • Parts VII to X require recordkeeping, notice of corporate status changes, the filing of a
  • Section 5of the FTC Act provides that the Commission shall reopen an order to consider
  • Part V contains a "safe harbor" providing that GNC shall not be liable under this paragraph uct was not developed or manufactured at the instigation or with the assistance of GNC; and the
  • In ITT Continental Baking Co., 102 F.T.C. 1298, the Commission held that the passage of the
  • Schnuck Markets, Inc., Docket No. C-3585 (modifying prohibition on removal of equipment from
  • that is specifically permitted in labeling by regulations promulgated by the Food and Drug
  • GNC requests that the Commission modify the 1969 and 1989 orders and seek modification of the
  • It would also provide that GNC's compliance with the new provision shall constitute an
  • this new provision would require GNC to monitor advertising of its franchisees and licensees.
  • "Commerce" shall mean as defined in Section 4 of the Federal Trade Commission
  • IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or in any manner, expressly or by implication:
  • GNC maintains that the parties intended Paragraph 2 to track the then-current FDA regulations
  • If the Commission does not delete Paragraph 2 as requested, GNC will be subject to disclosure
  •    |