Nutrition 21; Selene Systems, Inc.; Herbert H. Boynton; Analysis To Aid Public Comment

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

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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