GNC seeking relief of liability for FTC order violations by franchisees.
This article was originally published in The Tan Sheet
Executive Summary
GNC SEEKING LIABILITY RELIEF FOR FRANCHISEE FTC ORDER VIOLATIONS in a petition filed July 15. General Nutrition, Inc. is asking the Federal Trade Commission to reopen and modify two final orders from 1969 and 1989 and a 1994 consent decree barring the retailer from making certain claims for some of its products. When the orders were executed, GNC and FTC did not foresee the importance franchise stores would hold for GNC's business. Now, over one-third of GNC's total domestic stores are franchises, and the firm does not believe it should be held responsible for advertising used by non-company-owned stores.
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