Announced Actions for May 20, 1999

The Federal Trade Commission today announced the following action.

Petitions to reopen and modify or set aside orders: The FTC has approved a petition from the following entity seeking changes in, or termination of, an FTC order.

The FTC has approved a petition from Eli Lilly and Company to reopen and set aside a July 28, 1995 decision and order in connection with Lilly's acquisition of PCS Health Systems, Inc. from McKesson Corporation. Because Lilly no longer owns PCS, the company had requested that the Commission grant the petition and set aside the order. The Commission vote to reopen and set aside the order was 4-0. (Staff contact is Roberta Baruch, 202-326-2861.)

The FTC is seeking public comments on a newly-received petition for 30 days, until June 21, 1999:

• General Nutrition, Inc. (GNC) has petitioned the FTC to reopen and modify the cease and desist orders issued by the Commission in 1969 (Docket No. C-1517) and 1989 (Docket No. 9175). Included in the company's petition is a request that the Commission seek the Department of Justice's assistance in asking a federal court to modify a 1994 consent decree enjoining GNC from violating these two orders and from making deceptive claims for any hair-loss product. GNC also requests that the FTC modify the 1969 order, which was modified by the Commission in 1970, to delete a disclosure requirement regarding the nutritional significance of certain food ingredients and to replace a provision prohibiting a number of specific claims and requiring certain triggered disclosures with a provision prohibiting GNC from making any unsubstantiated claim that the presence of any vitamin or mineral will prevent, relieve, or treat any symptom or that the presence of any vitamin or mineral deficiency can be self-diagnosed. In addition, GNC requests that the Commission modify the 1969 and 1989 orders and seek modification of the 1994 consent decree to add a new provision: 1) requiring GNC to monitor its franchisees and licensees and report repeated order or decree violations by franchisees and licensees to the FTC; and 2) providing that GNC will not be liable for its franchisees' and licensees' conduct provided GNC has not authorized, approved, or ratified the conduct. A notice will be published shortly in the Federal Register. Comments on the petition should be submitted to the Secretary, Federal Trade Commission, Room 159-H, Washington, DC 20580. (Docket Nos. C-1517, 9175; Staff contact is Robert Frisby, 202-326-2098.)

Consent agreements given final approval: Following a public comment period, the Commission has made final a consent agreement with the following entity. The Commission action makes the consent order binding on the respondent.

• Mesa County Physicians, IPA -- The Commission has voted to revise and approve as final the Decision and Order. For a complete description of the order, see FTC news release dated February 2, 1998. The revised Order now prohibits Mesa IPA from retaining any employee or any participating physician who Mesa IPA knows is participating in "payer contract review," as defined in the Order. (FTC Docket No.: 9284; Staff contact is: Richard A. Feinstein, 202-326-3688.)
  
  The Commission vote approving the revised settlement was 4-0.

Copies of the documents mentioned in this FYI from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-FTC-HELP (202-382-4357); TDD for the hearing impaired 1-866-653-4261. A number of related documents also are available from the FTC's web site at http://www.ftc.gov To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.