General Nutrition Corp. has agreed to stricter testing of nutritional supplements sold in its stores as part of a settlement agreement with the attorney general's office in New York.
The company, along with several other corporations, recently came under scrutiny when testing revealed many of the supplements sold by the Pittsburgh-based corporation did not contain some active ingredients listed on labels.
New York Attorney General Eric Schneiderman announced on Feb. 2 that DNA testing failed to detect the presence of many ingredients advertised in herbal supplements. This finding was followed by a subpoena directing the company to answer the allegations. In addition to GNC, three other retailers were also named by Schneiderman in the announcement.
Managers for GNC state that third-party testing shows their "products are safe, pure, properly labeled and in full compliance with all regulatory requirements."
Changes to company policy in the wake of this controversy involve DNA bar-coding throughout the manufacturing process to properly track ingredients. This change will start to be implemented within 18 months, according to the company. Managers at GNC tell the press they hope their new higher standards will be adopted by other manufacturers of herbal supplements.
"As our testing demonstrated, and this agreement affirms beyond any doubt, our products are not only safe and pure but are in full compliance with all regulatory requirements. A robust testing regime, careful sourcing regimen and detailed manufacturing specifications have always been core elements to ensuring that we provide our customers with high quality products," Michael Archbold, CEO of GNC, said.
Managers for GNC have also agreed to institute testing programs for herbal supplements that exceed minimum standards required by the Food and Drug Administration. This is the first time any corporation has agreed to such a policy.
Sales of GNC's Herbal Plus products have resumed in New York state, after new testing by the attorney general's office determined the supplements are now within federal guidelines.
Around 40 percent of the income of GNC stores in the United States comes from sales of herbal supplements, vitamins and minerals.
The company has also agreed to publicly announce on its website and in its stores if a supplement is derived from herbs or extracts.
In business since 1935, GNC currently employs 13,800 people in 7,334 retail outlets around the world. The company made $2.63 billion in sales during 2013, and its stock rose 8 percent to a new 52-week high after the recent announcement.
Investigations by the New York attorney general's office continue against retailers Walgreen's, Target and Walmart.
Photo: Health Gauge | Flickr
