FOR IMMEDIATE RELEASE:  June 13, 1988
GENERAL NUTRITION CORP. TO PAY $600,000 TO SETTLE CHARGES IT MADE
FALSE AND MISLEADING ADVERTISING CLAIMS ABOUT FOOD SUPPLEMENTS
   Consent Agreement Settles 1984 Charges About Healthy Greens
     and Additional Charges About Six Other Food Supplements
     The Federal Trade Commission today announced that General
Nutrition Corp. Inc. (GNC) has signed a consent agreement
settling 1984 FTC charges that it made false and unsubstantiated
claims that a diet supplement, "Healthy Greens," was effective in
reducing the risk of cancer.  The consent agreement also settles
additional charges from a separate investigation that the company
falsely claimed six other food supplements would promote weight
loss and muscle growth or retard aging.
     The consent agreement requires that, in lieu of consumer
redress, GNC pay a total of $600,000 for research in nutrition,
obesity, or physical fitness.  The money is to be divided equally
among the American Diabetes Association, the American Cancer
Society, and the American Heart Association.  The consent
agreement, which has been placed on the public record for
comment, also prohibits GNC from making false and unsubstantiated
claims about its products.
     The vote to issue the consent agreement and an amended
complaint was 3-2, with Chairman Daniel Oliver and Commissioner
Mary L. Azcuenaga dissenting.
     GNC is a nationwide chain of retail outlets that sell a wide
range of health food products, including vitamins and mineral
supplements, weight loss products, and cosmetics.  In 1986 GNC
had sales of more than $300 million through approximately 1,100
stores, most of which are called General Nutrition Centers.  GNC
is based in Pittsburgh.
     Following the Commission's 1984 complaint charging that GNC
made false claims about Healthy Greens, an administrative law
judge (ALJ) conducted a hearing on the allegations.  In 1986 the
ALJ, Montgomery K. Hyun, issued an order prohibiting GNC from
making "false and unsubstantiated advertising claims in the
future for any product marketed for its ability to prevent or
reduce the risk of any disease in humans."  Both the company and
the FTC staff appealed the ALJ's decision to the Commission.  The
matter was withdrawn from litigation for the negotiations that
led to this consent agreement.  "Healthy Greens," which GNC no
longer markets, were sold in the form of pills and contained de
hydrated vegetables and some vitamins and minerals.
     The amended complaint issued with today's consent also
includes charges that GNC made false claims that six food
supplements would enable users to lose weight, retard aging, or
build muscle.  The six food supplements are:  "Challenge Growth
and Training Vita-Pak," "Challenge Free Form Amino Acids," "Life
Expander Growth Hormone Releaser, "24 Hour Diet Plan," "L-
Arginine," and "L-Ornithine."
     The consent agreement prohibits GNC from falsely claiming
that government reports support the use of products such as
Healthy Greens to reduce cancer risk.  The consent also prohibits
GNC from misrepresenting any scientific test with respect to any
product's ability to affect disease.
                             (More)
     The amended complaint also charges that GNC falsely claimed
it had a reasonable basis for its claims about Healthy Greens and
the six food supplements.  The consent agreement prohibits GNC
from making disease-related claims for any product without having
competent and reliable scientific evidence.
     However, the consent agreement provides that GNC will not be
liable for claims on package labels or inserts for products sold
in its stores if they are:  manufactured and distributed by a
third party without input from GNC; generally available at
competing retail outlets; not identified with GNC in any way,
such as with its logo; and which GNC does not advertise or
promote.
     Commissioner Mary L. Azcuenaga said she dissented from
accepting the proposed consent order because it "leaves GNC free
to sell products that it knows are deceptively labeled."  She
stated, "I believe that the order should hold GNC liable if it
knows that the packaging of these products contains
unsubstantiated claims."
     The FTC's Bureau of Consumer Protection brought the original
charges involving Healthy Greens; the Chicago Regional Office
handled the investigation of the other food supplements.
     The consent will be subject to public comment for 60 days,
until Aug. 12, after which the Commission will decide whether to
make it final.  Comments should be addressed to the Office of the
Secretary, FTC, 6th St. and Pennsylvania Ave. N.W., Washington,
D.C. 20580.  A Federal Register notice is scheduled to be
published today.
     A consent agreement is for settlement purposes only and does
not constitute admission of a law violation.  When the Commission
issues a consent order on a final basis, it carries the force of
law with respect to future actions.  Each violation of such an
order may result in a civil penalty of up to $10,000.
     Copies of the agreement, the complaint and an analysis of
the agreement are available from the FTC's Public Reference
Branch, Room 130, 6th St. and Pennsylvania Ave. N.W., Washington,
D.C. 20580; 202-326-2222; TTY 202-326-2502.
                              # # #
MEDIA CONTACT:  Dee Ellison, Office of Public Affairs, 202-326-
                2177
STAFF CONTACT:  Robert C. Cheek, Bureau of Consumer Protection,
                202-326-3045 (Healthy Greens)
                Timothy T. Hughes, Chicago Regional Office, 312-
                353-4423 (six food supplements)
FTC File No. D 9175
[GNCconsent]