[Federal Register Volume 60, Number 91 (Thursday, May 11, 1995)]
[Notices]
[Pages 25218-25222]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11554]



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FEDERAL TRADE COMMISSION
[File No. 932-3224]


Nature's Bounty, Inc., et al., Proposed Consent Agreement With 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair acts and practices and unfair methods of competition, this 
consent agreement, accepted subject to final Commission approval, would 
require, among other things, respondent and two of its wholly-owned 
subsidiaries to pay $250,000 in consumer redress, and to have 
scientific evidence to back up a variety of specific health-related 
advertising and promotional claims for any product they market in the 
future.

DATES: Comments must be received on or before July 10, 1995.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pa. Ave., NW., Washington, DC. 20580.

FOR FURTHER INFORMATION CONTACT:
Dean Graybill, FTC/S-4302, Washington, DC 20580. (202) 326-3284 or 
Peter Metrinko, S-4631, Washington, DC 20580. (202) 326-2104.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the 
Commission's rules of practice (16 CFR 2.34), notice is hereby given 
that the following consent agreement containing a consent order to 
cease and desist, having been filed with and accepted, subject to final 
approval, by the Commission, has been placed on the public record for a 
period of sixty (60) days. Public comment is invited. Such comments or 
views will be considered by the Commission and will be available for 
inspection and copying at its principal office in accordance with 
Sec. 4.9(b)(6)(ii) of the Commission's rules of practice (16 CFR 
4.9(b)(6)(ii)).

    In the matter of Nature's Bounty, Inc., a corporation, Puritan's 
Pride, Inc., a corporation, and Vitamin World, Inc., a corporation.

Agreement Containing Consent Order To Cease and Desist

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Nature's Bounty, Inc., Puritan's Pride, 
Inc., and Vitamin World, Inc., and it now appearing that Nature's 
Bounty, Inc., Puritan's Pride, Inc., and Vitamin World, Inc., 
hereinafter sometimes referred to as proposed respondents, are willing 
to enter into an agreement containing an Order to cease and desist from 
the acts and practices being investigated,
    It is hereby agreed by and between Nature's Bounty, Inc., Puritan's 
Pride, Inc., and Vitamin World, Inc., by their duly authorized officers 
and attorneys, and counsel for the Federal Trade Commission, that:
    1. Nature's Bounty, Inc., is a corporation organized, existing and 
doing business under and by virtue of the laws of the State of 
Delaware, with its office and principal place of business located at 90 
Orville Dr., Bohemia, NY. Puritan's Pride, Inc., and Vitamin World 
Inc., wholly-owned subsidiary corporations of Nature's Bounty, Inc., 
are organized under and by virtue of the laws of the State of Delaware, 
with their offices and principal places of business located at 90 
Orville Dr., Bohemia, NY.
    2. Proposed respondents admit all the jurisdictional facts set 
forth in the draft complaint.
    3. Proposed respondents waive:
    a. Any further procedural steps;
    b. The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law;
    c. All rights to seek judicial review or otherwise to challenge or 
contest the [[Page 25219]] validity of the Order entered pursuant to 
this agreement; and
    d. Any claim under the Equal Access to Justice Act.
    4. This agreement shall not become part of the public record of the 
proceeding unless and until it is accepted by the Commission. If this 
agreement is accepted by the Commission it, together with the draft of 
complaint contemplated thereby, will be placed on the public record for 
a period of sixty (60) days and information in respect thereto publicly 
released. The Commission thereafter may either withdraw its acceptance 
of this agreement and so notify the proposed respondents, in which 
event it will take such action as it may consider appropriate, or issue 
and serve its complaint (in such form as the circumstances may require) 
and decision, in disposition of the proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by proposed respondents that the law has been 
violated as alleged in the attached complaint, or that the facts as 
alleged in the attached complaint, other than the jurisdictional facts, 
are true.
    6. This agreement contemplates that, if it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of Sec. 2.34 of the Commission's 
rules, the Commission may, without further notice to proposed 
respondents, (1) issue its complaint corresponding in form and 
substance with the draft of complaint here attached and its decision 
containing the following Order to cease and desist in disposition of 
the proceeding and (2) make information public in respect thereto. When 
so entered, the Order to cease and desist shall have the same force and 
effect and may be altered, modified or set aside in the same manner and 
within the same time provided by statute for other orders. Delivery by 
the U.S. Postal Service of the complaint and decision containing the 
agreed-to Order to proposed respondents' address as stated in this 
agreement shall constitute service. Proposed respondents waive any 
rights they may have to any other manner of service. The complaint may 
be used in construing the terms of the Order, and no agreement, 
understanding, representation, or interpretation not contained in the 
Order or the agreement may be used to vary or contradict the terms of 
the Order.
    7. Proposed respondents have read the proposed complaint and Order 
contemplated hereby. They understand that once the Order has been 
issued, they will be required to file one or more compliance reports 
showing that they have fully complied with the Order. proposed 
respondents further understand that they may be liable for civil 
penalties in the amount provided by law for each violation of the Order 
occurring after the Order becomes final.

Order

Definitions

    For purposes of this Order, the following definitions shall apply:
    1. ``Product'' means any good that is offered for sale, sold or 
distributed to the public by respondents, their successors and assigns, 
under any brand name of respondents, their successors and assigns, or 
under the brand of any third party. ``Product'' also means any product 
sold or distributed to the public by third parties under any brand name 
of respondents, or under private labeling agreements with respondent, 
their successors and assigns.
    2. ``Competent and reliable scientific evidence'' shall mean tests, 
analyses, research, studies, or other evidence based on the expertise 
of professionals in the relevant area that has been conducted and 
evaluated in an objective manner by persons qualified to do so, using 
procedures generally accepted by others in the profession to yield 
accurate and reliable results.

I

    It is ordered that respondents Nature's Bounty, Inc., Puritan's 
Pride, Inc., and Vitamin World, Inc., their successors and assigns, and 
their officers, agents, representatives, and employees, directly or 
through any partnership, corporation, subsidiary, division or other 
device, in connection with the manufacture, advertising, packaging, 
labeling, promotion, offering for sale, sale or distribution of any 
product in or affecting commerce, as ``commerce'' is defined in the 
Federal Trade Commission Act, do forthwith cease and desist from 
misrepresenting, in any manner, directly or by implication, the 
existence, contents, validity, results, conclusions, or interpretations 
of any test, study, research article, or any other scientific opinion 
or data.

II

    It is further ordered that respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, in connection with the manufacturing, advertising, labeling, 
packaging, offering for sale, sale, or distribution of ``Sleeper's 
Diet,'' ``L-Arginine,'' or ``L-Ornithine,'' or any other substantially 
similar amino acid product, in or affecting commerce, as ``commerce'' 
is defined in the Federal Trade Commission Act, do forthwith cease and 
desist from representing, directly or by implication, that:
    A. Any such product stimulates greater production or release of 
human growth hormone in a user than a non-user of such product;
    B. Any such product promotes muscular development; or
    C. Any such product burns fat or otherwise alters human metabolism 
to use up or burn stored fat, or promotes weight loss.
    For purposes of this Order paragraph, ``substantially similar amino 
acid product'' shall mean any product which is of substantially similar 
composition or possesses substantially similar properties to Sleeper's 
Diet, L-Arginine or L-Ornithine.

III

    It is further ordered that respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, in connection with the manufacturing, advertising, labeling, 
packaging, offering for sale, sale, or distribution of L-Cysteine, L-
Methionine, or any other substantially similar hair care product, in or 
affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desist from representing, 
directly or by implication, that any such product will prevent or 
retard hair loss or promote hair growth where hair has already been 
lost. For purposes of this Order paragraph, ``substantially similar 
hair care product'' shall mean any product that is advertised or 
intended for sale over-the-counter to treat, cure or curtail hair loss 
or to promote hair growth where hair has already been lost, and which 
is of substantially similar composition or possesses substantially 
similar properties to L-Cysteine or L-Methionine.

IV

    It is further ordered that respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, in connection with the manufacturing, advertising, labeling, 
packaging, offering for sale, sale, or distribution of any hair care 
product or service, in or affecting commerce, as ``commerce'' is 
defined in the Federal [[Page 25220]] Trade Commission Act, do 
forthwith cease and desist from:
    A. Representing, directly or by implication, that
    (1) The use of the product or service will prevent, cure, relieve, 
reverse, or reduce hair loss; or
    (2) The use of the product or service will promote the growth of 
hair where hair already has been lost.

unless, at the time of making such representation, respondents possess 
and rely upon competent and reliable scientific evidence that 
substantiates the representation.
    B. Manufacturing, advertising, labeling, packaging, promoting, 
offering for sale, selling, or distributing any product that is 
represented as promoting hair growth or preventing hair loss, unless 
the product is the subject of an approved new drug application for such 
purpose under the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. 301 
et seq., provided that, this requirement shall not limit the 
requirements of Order paragraphs III or IV.A. herein.

V

    It is further ordered that respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, in connection with the manufacturing, advertising, labeling, 
packaging, offering for sale, sale, or distribution of any product in 
or affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desist from making any 
representation, directly or by implication, that any such product:
    A. Cures, treats, prevents, or reduces the risk of developing any 
disease, disorder or condition in humans or relieves symptoms thereof;
    B. Provides any weight loss or weight control benefit or otherwise 
provides an effective treatment for obesity;
    C. Suppresses appetite, reduces the body's absorption of calories, 
stimulates metabolism, or reduces serum cholesterol;
    D. Cures, treats, prevents, or reduces the risk of benign prostatic 
hypertrophy;
    E. Promotes greater muscular development, endurance, strength, 
power, definition, or stamina, or shorter exercise recovery or 
recuperation time in a user than a non-user of such product;
    F. Removes or diminishes dark circles under the eyes;
    G. Improves mental clarity, mental concentration, mental 
comprehension, mental retention or mental alertness;
    H. Aids digestion or promotes increased absorption of nutrients 
from ingested foods;
    I. Relieves stress or promotes relaxation; or
    J. Prevents, relieves or treats fatigue or boosts energy;

unless, at the time of making such representation, respondents possess 
and rely upon competent and reliable scientific evidence that 
substantiates the representation.
    Provided however, that respondents shall not be liable under this 
paragraph for any representation contained on a package label or 
package insert for a product that meets all of the following 
conditions:
    1. The product is manufactured and distributed by a third party and 
is not manufactured or distributed exclusively for respondents;
    2. The product is generally available at competing retail outlets;
    3. The product is not identified with respondents and does not 
contain respondents' names or logos;
    4. The product was not developed or manufactured at the instigation 
or with the assistance of respondents; and,
    5. The product representation is not otherwise advertised or 
promoted by respondents.
    Provided further, that the proviso in the preceding paragraph is 
currently identical to the ``safe harbor'' proviso contained in 
Paragraph V. of the order in General Nutrition, Inc., Docket No. 9175, 
entered February 2, 1989. It is the intention of the parties to the 
order herein that the provisos shall remain identical. Therefore, 
except upon respondents filing a petition to reopen the proceeding 
herein and making a satisfactory showing that changed conditions of law 
or fact or the public interest warrants modification of the order 
herein by the Commission, respondents agree to be bound by any 
subsequent modifications (including vacation) of the safe harbor 
proviso in Docket No. 9175, without any further formal modification of 
the instant order.

VI

    It is further ordered that nothing in this Order shall prohibit 
respondents, their successors and assigns, and their officers, agents, 
representatives, and employees, directly or through any corporation, 
subsidiary, division or other device, from making any representation 
that is specifically permitted in labeling for any product by 
regulations promulgated by the Food and Drug Administration (FDA) 
pursuant to the Nutrition Labeling and Education Act of 1990; moreover, 
nothing in this Order shall prohibit respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, from making any representation for any drug that is permitted 
in labeling for any drug under any tentative final or final standard 
promulgated by the Food and Drug Administration, or under any new drug 
application approved by the Food and Drug Administration.

VII

    It is further ordered that respondents, their successors and 
assigns, and their officers, agents, representatives, and employees, 
directly or through any corporation, subsidiary, division or other 
device, in connection with the manufacturing, advertising, labeling, 
packaging, offering for sale, sale, or distribution of any product in 
or affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desist from:
    1. Using the name ``Sleeper's Diet'' or any other brand name that 
represents, directly or by implication, that such product has the 
ability to promote weight loss during sleep;
    2. Using the name ``Memory Booster'' or any other brand name that 
represents, directly or by implication, that such product improves 
memory retention;
    3. Using the name ``Dark Circle Eye Treatment'' or any other brand 
name that represents, directly or by implication, that such product 
removes dark circles from under the eyes; or
    4. Using the name ``Super Fat Burners'' or any other brand name 
that represents, directly or by implication, that such product reduces 
body fact

unless, at the time of making such representation, respondents possess 
and rely upon competent and reliable scientific evidence that 
substantiates the representation.

VIII

    It is further ordered that respondents, their successors and 
assigns, shall pay to the Federal Trade Commission, by cashier's check 
or certified check made payable to the Federal Trade Commission and 
delivered to the Associate Director for Enforcement, Bureau of Consumer 
Protection, Federal Trade Commission, 6th and Pennsylvania Ave., NW, 
Washington, DC 20580, the sum of two hundred and fifty thousand dollars 
($250,000). Respondents shall make this payment on or before the tenth 
day following the date of issuance of this Order. In the event of any 
default on any obligation to make payment under this section, 
[[Page 25221]] interest, computed pursuant to 28 U.S.C. 1961(a), shall 
accrue from the date of default to the date of payment. The funds paid 
by respondents shall, in the discretion of the Federal Trade 
Commission, be used to provide direct redress to consumers allegedly 
injured by respondents in connection with the acts or practices alleged 
in the complaint, and to pay any attendant costs of administration. If 
the Federal Trade Commission determines, in its sole discretion, that 
redress to consumers is impracticable or unwarranted, any funds not 
used for redress shall be paid to the United States Treasury. 
Respondents shall be notified as to how the funds are distributed, but 
shall have no right to contest the manner of distribution chosen by the 
Commission.

IX

    It is further ordered that, for five (5) years after the last date 
of dissemination of any representation covered by this Order, 
respondents, or their successors and assigns, shall maintain and upon 
request make available to the Federal Trade Commission for inspection 
and copying:
    1. All labeling, packaging, advertisements and promotional 
materials setting forth any representation covered by this Order;
    2. All materials that were relied upon by respondents to 
substantiate any representation covered by this Order; and
    3. All test reports, studies, surveys, demonstrations or other 
evidence in their possession or control that contradict, qualify, or 
call into question such representation or the basis upon which 
respondents relied for such representation, including complaints from 
consumers.

X

    It is further ordered that for a period of ten (10) years after 
service upon them of this Order, respondents, their successors and 
assigns, shall notify the Federal Trade Commission at least thirty (30) 
days prior to any proposed change in the respondents such as 
dissolution, assignment, or sale resulting in the emergence of a 
successor corporation, the creation or dissolution of subsidiaries or 
any other change in the corporations that may affect compliance 
obligations arising under this Order.

XI

    It is further ordered that the respondents shall distribute a copy 
of this Order to each of their operating divisions, to each of their 
officers, agents, representatives, or employees engaged in the 
preparation and placement of advertisements, promotional materials, 
product labels or other such sales materials covered by this Order, and 
to all distributors of products manufactured or marketed by 
respondents.

XII

    It is further ordered that respondents shall, within sixty (60) 
days after service of this Order, file with the Commission a report, in 
writing, setting forth in detail the manner and form in which they have 
complied or intend to comply with this Order.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a 
proposed consent order from Nature's Bounty, Inc., Puritan's Pride, 
Inc., and Vitamin World, Inc. (``respondents'').
    The proposed consent order has been placed on the public record for 
sixty (60) days for receipt of public comments by interested persons. 
Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    The Commission's complaint alleges that respondents manufactured, 
advertised, offered for sale, sold or distributed a variety of 
products, for which they made the following representations:
    A. Sleeper's Diet promotes weight loss during sleep.
    B. L-Arginine stimulates the release of human growth hormone which 
increases muscle mass while decreasing body fat.
    C. L-Ornithine stimulates the release of human growth hormone which 
increases muscle mass while decreasing body fat.
    D. Prostex relieves the symptoms of benign prostatic hypertrophy.
    E. L-Cysteine (1) increases hair growth, (2) prevents hangovers and 
brain and liver damage from alcohol, and (3) helps prevent harm caused 
by cigarette smoke.
    F. L-Lysine improves stress tolerance and reduces fatigue.
    G. L-Methionine prevents premature hair loss.
    H. Octacosanol increases stamina, vigor, and endurance, improves 
reaction time, lowers cholesterol levels and strengthens muscles.
    I. New Zealand Green Lipped Mussel Extract prevents arthritis and 
relieves its symptoms.
    J. KLB6 causes weight loss and reduces cholesterol levels.
    K. Glucomannan causes weight loss by suppressing appetite and 
allowing calories to pass through the body undigested.
    L. Sugar Blocker prevents weight gain by impeding the body's 
absorption of sugar.
    M. Spirulina 500 mg. tablets suppress the appetite, enabling 
adherence to a diet.
    N. KLB6 Grapefruit Diet causes weight loss by stimulating 
metabolism and suppressing appetite.
    O. Herbal Cellulex Formula causes weight loss by eliminating body 
fat.
    P. Memory Booster improves memory retention and mental alertness.
    Q. Ginsana helps build physical endurance and mental alertness.
    R. Fatbuster Diet Tea causes weight loss by eliminating fatty 
substances from the body.
    S. Shake-A-Weigh reduces the body's absorption of calories from 
food.
    T. Dark Circle Eye Treatment removes dark circles from under the 
eyes.
    U. Natural Sterol Complex promotes growth in muscle mass and 
improves strength.
    V. Super Fat Burners reduces body fat, thereby promoting muscle 
definition.
    W. Super Cut reduces body fat, thereby promoting muscle definition.
    X. Papaya Enzyme Tablets aid digestion and promote greater 
absorption of nutrients from food.
    Y. Calmtabs relieves stress and promotes relaxation.
    The Commission's complaint alleges that the above representations 
for Sleeper's Diet, L-Arginine, L-Ornithine, L-Cysteine, and L-
Methionine are false and misleading. Further, the Commission alleges 
that respondents did not possess and rely upon a reasonable basis that 
substantiated any of the representations in (A) through (Y).
    The Commission's complaint also alleges that respondents falsely 
and in a misleading manner represented that scientific research, 
including scientific papers and/or studies, prove that (1) Octacosanol 
may improve reaction time, lower cholesterol levels and strengthen 
muscles; (2) New Zealand Green Lipped Mussel Extract prevents arthritis 
and relieves its symptoms; (3) as to Eye-Vites, also sold as CATA-RX, 
patients undergoing antioxidant therapy such as that provided by Eye-
Vites and CATA-RX are 70% less likely to develop cataracts; and (4) 
Ginsana improves [[Page 25222]] physical endurance and mental 
alertness.
    The complaint also alleges that through the use of trade names, 
respondents falsely and misleadingly represented that (1) ``Sleeper's 
Diet'' promotes weight loss during sleep; (2) ``Memory Booster'' 
improves memory retention; (3) ``Dark Circle Eye Treatment'' removes 
dark circles from under the eyes; and (4) ``Super Fat Burners'' reduces 
body fat.
    The consent agreement resolving these allegations requires 
respondents to cease and desist from misrepresenting the existence, 
contents, validity, results, conclusions, or interpretations of any 
test, study, research article, or any other scientific opinion or data. 
As to the products ``Sleeper's Diet,'' ``L-Arginine,'' or ``L-
Ornithine,'' or any other substantially similar amino acid product, 
respondents are to cease and desist from representing that (1) any such 
product stimulates greater production or release of human growth 
hormone in a user than a non-user of such product; (2) any such product 
promotes muscular development; or (3) any such product burns fat or 
otherwise alters human metabolism to use up or burn stored fat, or 
promotes weight loss.
    In connection with the products L-Cysteine, L-Methionine, or any 
other substantially similar hair care product, respondents are to cease 
and desist from representing that any such product will prevent or 
retard hair loss or promote hair growth where hair has already been 
lost. As to any hair care product or service, respondents are to cease 
and desist from representing that (1) the use of the product or service 
will prevent, cure, relieve, reverse, or reduce hair loss; or (2) the 
use of the product or service will promote the growth of hair where 
hair already has been lost, unless, at the time of making such 
representation, respondents possess and rely upon competent and 
reliable scientific evidence that substantiates the representation.
    Respondents are also prohibited from manufacturing, advertising, 
labeling, packaging, promoting, offering for sale, selling, or 
distributing any product that is represented as promoting hair growth 
or preventing hair loss, unless the product is the subject of an 
approved new drug application for such purpose under the Federal Food, 
Drug, and Cosmetic Act.
    Respondents also are required to possess and rely upon competent 
and reliable scientific evidence as substantiation for any 
representation that any product (1) cures, treats, prevents, or reduces 
the risk of developing any disease, disorder or condition in humans or 
relatives symptoms thereof (2) provides any weight loss or weight 
control benefit or otherwise provides an effective treatment of 
obesity; (3) suppresses appetite, reduces the body's absorption of 
calories, stimulates metabolism, or reduces serum cholesterol; (4) 
cures, treats, prevents or reduces the risk of benign prostatic 
hypertrophy; (5) promotes greater muscular development, endurance, 
strength, power, definition, or stamina, or shorter exercise recovery 
or recuperation time in a user than a non-user of such product; (6) 
removes or diminishes dark circles under the eyes; (7) improves mental 
clarity, mental concentration, mental comprehension, mental retention 
or mental alertness; (8) aids digestion or promotes increased 
absorption of nutrients from ingested foods; (9) relieves stress or 
promotes relaxation; or (10) prevents, relieves or treats fatigue or 
boosts energy. However, the agreement states that this substantiation 
requirement does not apply if respondents are merely selling another 
manufacturer's products, and, inter alia, the product representation is 
made only on a product label or insert, and is not otherwise advertised 
or promoted by respondents. The consent agreement also notes that this 
``safe harbor'' provision is currently identical to the ``safe harbor'' 
proviso contained in Paragraph V. of the order in General Nutrition, 
Inc., Docket No. 9175, that it is the intention of the parties to the 
instant order that the provisos shall remain identical, and that 
respondents agree to be bound by any subsequent modifications 
(including vacation) of the safe harbor proviso in Docket No. 9175, 
without any further formal modification of the instant order. 
Respondents retain their right to file a petition to modify or vacate 
the instant order.
    Also under the order, respondents may not use the name ``Sleeper's 
Diet'' or any other brand name that represents that such product has 
the ability to promote weight loss during sleep; use the name ``Memory 
Booster'' or any other brand name that represents that such product 
improves memory retention; use the name ``Dark Circle Eye Treatment'' 
or any other brand name that represents that such product removes dark 
circles from under the eyes; or use the name ``Super Fat Burners'' or 
any other brand name that represents that such product reduces body 
fat, unless, at the time of making such representation, respondents 
possess and rely upon competent and reliable scientific evidence that 
substantiates the representation.
    Under the terms of the order, respondents shall pay $250,000.00 to 
the Federal Trade Commission. The funds paid by respondents shall, in 
the discretion of the Federal Trade Commission, be used to provide 
direct redress to consumers allegedly injured by respondents. If 
redress to consumers is impracticable or unwarranted, any funds not 
used for redress shall be paid to the United States Treasury.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify any of 
their terms.
Donald S. Clark,
Secretary.

Statement of Commissioner Mary L. Azcuenaga Concerning Nature's Bounty, 
Inc.

File No. 932 3224

    I dissent from the Commission's decision to accept a proposed 
consent order with Nature's Bounty and its subsidiaries, Puritan's 
Pride, Inc., and Vitamin World, Inc., because the order leaves the 
respondents free to sell products they know, or should know, are 
deceptively labeled.
    The proviso in Paragraph V of the consent order states that the 
respondents would not necessarily be liable for false or 
unsubstantiated claims appearing on the labels or in the packaging of 
the products sold at its stores, even it if were clear that the 
companies had actual knowledge that those claims were unsubstantiated 
or untrue. I believe that the other should hold the respondents liable 
if they know, or should know, that the labels or packaging of any such 
product contains false or unsubstantiated claims.

[FR Doc. 95-11554 Filed 5-10-95; 8:45 am]
BILLING CODE 6750-01-M