[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Notices]
[Pages 58562-58563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29264]


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FEDERAL TRADE COMMISSION
[File No. 932-3282]


Nutrition 21; Selene Systems, Inc.; Herbert H. Boynton; 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 or deceptive acts or practices and unfair methods of 
competition, this consent agreement, accepted subject to final 
Commission approval, would prohibit, among other things, the San Diego-
based dietary supplement manufacturer and its president from making 
certain challenged claims for chromium picolinate dietary supplements, 
without competent and reliable scientific evidence to support them, and 
from misrepresenting the results of any test, study, or research. The 
settlement also requires Nutrition 21, which holds the exclusive U.S. 
license on the patent rights to chromium picolinate, to send its 
customers who resell the supplement to the public a notice of the 
Commission's allegations and a request to stop using sales materials 
making the challenged claims. The agreement settles allegations that 
Nutrition 21 made unsupported claims about weight loss and health 
benefits for chromium picolinate dietary supplements.

DATES: Comments must be received on or before January 14, 1997.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pennsylvania Avenue, N.W., Washington, D.C. 
20580.

FOR FURTHER INFORMATION CONTACT: Loren G. Thompson, Federal Trade 
Commission, S-4002, 6th St. and Pennsylvania Ave., NW, Washington, DC 
20580. (202) 326-2049. Beth Grossman, Federal Trade Commission, S-4002, 
6th St. and Pennsylvania Ave., NW, Washington, DC 20580. (202) 326-
3019.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the above-captioned 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. The following Analysis to Aid 
Public Comment describes the terms of the consent agreement, and the 
allegations in the accompanying complaint. An electronic copy of the 
full text of the consent agreement package can be obtained from the FTC 
Home page, on the World Wide Web, at ``http://www.ftc.gov/os/actions/
htm.'' A paper copy can be obtained from the FTC Public Reference Room, 
Room H-130, Sixth Street and Pennsylvania Avenue, N.W., Washington, 
D.C. 20580, either in person or by calling (202) 326-3627. 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 Section 4.9(b)(6)(ii) of the 
Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).

 Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a consent 
order from Nutrition 21, a limited partnership, Selene Systems, Inc., a 
general partner of Nutrition 21, and Herbert H. Boynton, President of 
Selene Systems, Inc. (``respondents'').
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception of 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.
    This matter concerns chromium picolinate, a nutrient patented by 
the United States Department of Agriculture. Respondents hold the 
exclusive license to manufacture and sell chromium picolinate in the 
United States. The Commission's proposed complaint alleges that the 
respondents represented without a reasonable basis in their 
advertisements that chromium picolinate: (a) Significantly reduces body 
fat; (b) causes significant weight

[[Page 58563]]

loss; (c) causes significant weight loss without diet or exercise; (d) 
causes long-term or permanent weight loss; (e) increases lean body mass 
and builds muscle; (f) significantly increases human metabolism; (g) 
controls appetite and reduces cravings for sugar; (h) significantly 
reduces total and LDL serum cholesterol; (i) significantly lowers 
elevated blood sugar levels; and (j) is effective in the treatment and 
prevention of diabetes. The proposed complaint also alleges that 
respondents represented without a reasonable basis that ninety percent 
of adults in the United States do not consume diets with sufficient 
chromium to support normal insulin function, resulting in increased 
risk of overweight, heart disease, elevated blood fat, high blood 
pressure, and diabetes. Finally, the proposed complaint alleges that 
respondents falsely represented that a number of those claims were 
supported by scientific studies.
    The proposed consent order contains provisions designed to prevent 
the respondents from engaging in similar acts and practices in the 
future. Part I of the proposed order prohibits respondents from making 
the challenged representations for chromium picolinate or any other 
food, dietary supplement, or drug unless they possess and rely upon 
competent and reliable scientific evidence that substantiates the 
representations.
    Part II of the proposed order prohibits respondents from making any 
representation about the benefits, performance, efficacy, or safety of 
chromium picolinate or any other food, dietary supplement, or drug 
unless they possess and rely upon competent and reliable scientific 
evidence that substantiates the representation.
    Part III of the proposed order prohibits respondents from 
misrepresenting the existence, contents, validity, results, 
conclusions, or interpretations of any test, study, or research.
    Part IV of the proposed order requires respondents to send 
notification letters to past, current, and future purchasers for resale 
of chromium picolinate. The letter describes the Commission's 
allegations and the terms of the order, and advises recipients to stop 
using promotional materials making the challenged claims.
    Parts V through IX of the proposed order relate to respondents' 
obligation to maintain records, distribute the order to current and 
future officers and employees, notify the Commission of changes in 
corporate structure or in the individual's employment, and file 
compliance reports with the Commission. Part X provides that the order 
will terminate after twenty years under certain circumstances.
    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 in any 
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-29264 Filed 11-14-96; 8:45 am]
BILLLING CODE: 6750-01-P