UNITED STATES OF AMERICA 

BEFORE THE FEDERAL TRADE COMMISSION 

COMMISSIONERS: Rebecca Kelly Slaughter, Acting Chairwoman 

Noah Joshua Phillips

Rohit Chopra

Christine S. Wilson 

In the Matter of 

Health Research Laboratories, LLC, 

a limited liability company, DOCKET NO. 9397 

Whole Body Supplements, LLC,

 a limited liability company, and 

Kramer Duhon, 

Individually and as an officer of 

Health Research Laboratories, LLC, 

and Whole Body Supplements, LLC, 

Respondents 

ORDER FOR FURTHER PROCEEDINGS BEFORE THE COMMISSION 

On April 20, 2021, the Administrative Law Judge (ALJ) granted Respondents’ motion to 

transfer this matter to the Commission for further proceedings pursuant to Commission Rule 

3.12(b)(2), 16 C.F.R. § 3.12(b)(2). Order Granting In Part and Denying In Part Respondents’ 

Motion to Enter New Scheduling Order or, in the Alternative, to Transfer Case to the 

Commission (Apr. 20, 2021) (“April 20 Order”).1 

Rule 3.12(b)(2) provides that a respondent who elects not to contest the allegations of 

fact in the complaint can, as Respondents did here, file an answer admitting all of the material 

allegations to be true. Such an answer constitutes a waiver of hearings as to the facts alleged in 

1

 Transfer to the Commission moots a motion filed by Complaint Counsel to reschedule the evidentiary hearing. 

Expedited Motion to Reschedule Evidentiary Hearing Date (Mar. 30, 2021) (”Motion to Reschedule”). Complaint 

Counsel have subsequently filed a Motion to Withdraw Complaint Counsel’s Expedited Motion to Reschedule 

Evidentiary Hearing Date and Request for Schedule (Apr. 26, 2021). Withdrawal of the Motion to Reconsider is 

granted; this Order sets out our determinations regarding scheduling. Respondents have moved for an extension of 

time to respond to the Motion to Reschedule. Respondents’ Motion to Extend Time to Respond to Complaint 

Counsel’s Motion to Reschedule the Evidentiary Hearing Date (Apr. 16, 2021). Respondents’ motion for an 

extension is denied as moot. 

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the complaint and, together with the complaint, provides a record basis for the Commission to 

issue a final decision. Rule 3.12(b)(2). A Rule 3.12(b)(2) answer does not, however, necessarily 

terminate all proceedings in the case. For example, the respondent can – and in this case, did – 

reserve its rights to submit proposed findings of fact and conclusions of law. Id. Respondents’ 

Answer also asserts a legal defense that challenges the constitutionality of the FTC’s 

administrative process and of some elements of the FTC’s structure. 

Respondents argued to the ALJ that the case is now “ripe for a decision” without further 

discovery on the basis of a “record” consisting of the Complaint and Respondents’ Answer. 

Respondents’ Expedited Motion to Enter New Scheduling Order or, in the Alternative, Transfer 

Case to the Commission at 1-2 (Mar. 31, 2021). Similarly, Respondents have now argued that 

“the Commission is required to issue its final decision based solely on the facts alleged in the 

complaint.” Response to Motion to Withdraw Expedited Motion to Reschedule Hearing Date 

and Request for Schedule at 2 (Apr. 26, 2021). Respondents have also filed Respondents’ 

Stipulation as to “Fencing-In” Relief (Apr. 13, 2021) (“Respondents’ Stipulation”), in which 

Respondents “stipulate and agree that the Initial Decision of the ALJ can include whatever 

‘fencing-in’ relief is permitted by statute and requested in the Complaint.”2 Respondents do not 

make clear what implications they attach to the stated limitation to fencing-in relief “permitted 

by statute”3 and do not specify whether they will accept and agree to the specific items of relief 

identified in the Notice of Contemplated Relief that was attached to the Complaint. 

Complaint Counsel, for their part, asserted before the ALJ that discovery was required on 

the issue of remedy notwithstanding the Rule 3.12(b)(2) Answer. See, e.g., Complaint Counsel’s 

Second Motion to Compel Respondents to Supplement Interrogatory Responses at 1-2 (Mar. 24, 

2021[]). As the ALJ recognized, there is nothing in Rule 3.12(b)(2) that prevents Complaint 

Counsel from pursuing discovery on issues that remain in dispute after a Rule 3.12(b)(2) answer. 

Order Granting Respondents’ Motion for Leave to Amend Answer at 5 (Mar. 10, 2021). The 

issues in dispute and corresponding discovery needs, however, appear to remain in flux, with the 

recent filing of Respondents’ Stipulation and, perhaps, with Respondents’ recent provision of 

supplemental interrogatory responses. See Respondents’ Expedited Motion to Partially 

Reconsider May [sic] 6, 2021 Order Granting Complaint Counsel’s Motion to Compel and 

Statement of Impasse at 3 (Apr. 13, 2021). Consequently, as we structure the next steps in this 

proceeding, it is important that we understand what, if any factual issues remain to be resolved. 

Under these circumstances, we have determined to ask the parties to identify any 

additional material facts that they intend to assert and to state whether those facts are in dispute. 

2

 As the ALJ has noted, Rule 3.12(b)(2) contemplates a final decision by the Commission and does not provide for 

an Initial Decision by the ALJ. April 20 Order at 3 n.4, 4. Clarification regarding the application of Respondents’ 

Stipulation to the Commission’s final opinion and order would be desirable. 

3

 Elsewhere, Respondents state both that they “have no objection to a blanket prohibition on disseminating or 

causing to be disseminated any advertising or promotional materials for any supplements that makes any 

representations regarding health or disease,” Respondents’ Expedited Motion to Partially Reconsider May [sic] 6, 

2021 Order Granting Complaint Counsel’s Motion to Compel and Statement of Impasse at 7 (Apr. 13, 2021), 

(emphasis original), and that “[t]he only relief permitted by Section 5 of the FTC Act is an order requiring 

Respondents to cease and desist from the allegedly deceptive act or practice —which is the dissemination of 

advertising and promotional materials regarding the four supplements.” Id. at 5 (emphasis original). 

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