FOR RELEASE:  SEPTEMBER 10, 1991

                  FTC WINS $2 MILLION JUDGMENT
            IN "NEW GENERATION" BALDNESS REMEDY CASE
                Judge also halts sale of products

     The Federal Trade Commission today announced that a federal
district court has ordered Reno-based California Pacific
Research, Inc. (California Pacific) and its owner, Robert E.
Murphy Jr., to pay $2 million plus court costs for falsely and
deceptively claiming that their "New Generation" products prevent
baldness and stimulate hair regrowth in those who have male
pattern baldness -- an inherited predisposition affecting up to
80 percent of the male population.

     The FTC charged California Pacific and Murphy with making
the claims in November 1988 in a complaint filed in U.S. District
Court for the District of Nevada.  In its complaint, the FTC
alleged that the defendants' baldness remedy claims were false,
as were their claims that they had scientific evidence to
substantiate them.

     The court granted a preliminary injunction halting the
allegedly false claim that the defendants had scientific evidence
for their hair-loss and hair-regrowth claims until it could
review the case.  The defendants appealed and the FTC cross-
appealed to the U.S. Court of Appeals for the Ninth Circuit.  The
appeals were settled when the FTC and the defendants agreed to
another preliminary injunction under which the defendants would
temporarily stop making both the substantiation claims and the
baldness remedy claims.

     The court's final judgment, which is subject to appeal,
supersedes that preliminary injunction.  In addition to the
required $2 million payment, the judgment permanently bans the
defendants from selling any of the New Generation products, and
from representing that any such products will reduce excessive
hair loss or promote new hair growth.

                            - more -
New Generation--09/10/91)

     The New Generation package consists of a three-month supply
of several over-the-counter products including a cleanser/condi-
tioner containing polysorbate 60 and water, a simple shampoo, and
the "Ilona Schreck-Purola, M.D. Exclusive Overnight Formula,"
another polysorbate 60-based product with added vitamins and
common cosmetic ingredients.  Polysorbate 60, the purported
active ingredient, is a commonly-used cleansing ingredient in
detergents and is also used as a preservative in foods.

     The package sold for $49.95 and was advertised on local and
cable television stations in a 30-minute talk-show commercial
called "The Fred Lewis Show."  Murphy appeared as a guest on the
show saying that New Generation worked to regrow his hair, and
the avowed discoverer of the formula, Dr. Ilona Schreck-Purola,
also appeared on the show to confirm the purported scientific
basis for these claims.  Consumers were given an "800" number to
call and order the products.

     In entering his final judgment in the case, Judge Bruce R.
Thompson found that the defendants' claims were not cosmetic
claims, such as, the products make hair look thicker and fuller,
but rather, they were drug claims -- claims that a product will
affect the structure or function of the body.  Drug claims such
as these, the judge said, require scientific validation.  And he
found that the "unrebutted expert opinion" is that products like
New Generation are ineffective in halting excessive hair loss and
in regrowing new hair for those with male pattern baldness. 
Moreover, the judge noted, the Food and Drug Administration has
determined that baldness remedy claims for non-prescription
products like New Generation are either false, misleading or
unsupported by scientific data.

     Given these findings, the judge determined that the company
and its owner made substantial profits in their business and that
it is equitable that they disgorge some of those profits.

     Copies of the judge's findings and the final judgment and
decree are available from the FTC's Public Reference Branch, Room
130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C.
20580; 202-326-2222; TTY 1-866-653-4261.

                              # # #

MEDIA CONTACT:      Bonnie Jansen, Office of Public Affairs
                    202-326-2161

STAFF CONTACT:      Michael Dershowitz, Division of Advertising
                    Practices, 202-326-3158

(Civil Action No. CV-N-88-602 BRT)

(calpac2)