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
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