Federal Trade Commission

Docket Nos. C-1517 and 9175 and Civil No. 94-686
General Nutrition, Incorporated

 

AGENCY: Federal Trade Commission

ACTION: Notice of period for public comment on petition to reopen and modify orders.

SUMMARY: General Nutrition, Incorporated (“GNC”) filed a petition on July 15, 1998, to reopen and modify the cease and desist orders issued by the Commission in Docket No. C-1517 (order requires certain triggered disclosures in connection with the advertising of any food or drug preparation containing vitamins and minerals) and in Docket No. D-9175 (order prohibits unsubstantiated health, weight loss, and muscle building claims for any product). GNC’s petition also requests that the Commission seek the Department of Justice's assistance in asking a federal court to modify a 1994 consent decree enjoining GNC from violating these two orders and from making deceptive claims for any hair loss product. This notice announces the public comment period on this petition.

DATE: The deadline for filing comments in this matter is August 20, 1998.

ADDRESS: Comments should be sent to the Office of the Secretary, Federal Trade Commission, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580. Requests for copies of the petition should be sent to Consumer Response Center, Room 130.

FOR FURTHER INFORMATION CONTACT: Robert M. Frisby, Enforcement Division, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580, (202) 326-2098.

SUPPLEMENTARY INFORMATION: The order in Docket No. C-1517 is reported at 75 F.T.C. 529 (1969), modified, 77 F.T.C. 1458 (1970). The order in Docket No. 9175 is reported at 111 F.T.C. 387 (1989). A federal court entered the consent decree in Civil No. 94-686 (W.D.Pa. May 20, 1994) to settle allegations that GNC violated the two orders. GNC alleges that changes in law and fact, as well as public interest considerations, make reopening and modifying the orders and decree appropriate. GNC requests that the Commission modify the 1969 order, which was modified by the Commission in 1970, by: 1) revising paragraph 1(a) to incorporate a 1993 FTC staff advisory opinion interpreting this disclosure provision as applicable only to food or drug preparations containing vitamins or minerals for which GNC claims that the vitamins or minerals present in such preparations will provide certain benefits; and 2) revising paragraph 2 to delete a requirement that GNC make certain disclosures in its advertising regarding the nutritional significance of vitamins and minerals. In addition, GNC requests that the Commission modify the 1969 and 1989 orders and seek modification of the 1994 consent decree to add a new provision addressing GNC's liability for the actions of its franchisees. The provision sought by GNC would require GNC to bind its franchisees contractually to comply with the respective order or decree, monitor the franchisees' compliance, notify non-complying franchisees that they are violating the respective order or decree, and report non-complying franchisees to the FTC if they continue to violate the respective order or decree after receiving such notice. It would also provide that GNC's compliance with the new provision shall constitute an affirmative defense to any civil penalty action arising from the conduct of a franchisee provided GNC has not authorized, approved or ratified the conduct. The press release on the petition was issued on July 21, 1998.

Donald S. Clark
Secretary