Bactolac Pharmaceutical, Inc. – ‘8-K’ for 7/16/96

As of:  Wednesday, 7/31/96   ·   For:  7/16/96   ·   Accession #:  927356-96-612   ·   File #:  0-26362

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Form 8-K Dated July 31, 1996                           3     14K 
 2: EX-99       Assurance of Voluntary Compliance Dated 7/16/96.      21     47K 

8-K   —   Form 8-K Dated July 31, 1996
Document Table of Contents

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549 

FORM 8-K

CURRENT REPORT  

Pursuant to Section 13 or 15(d) of  
the Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported)  
July 16, 1996 

NUTRITION FOR LIFE INTERNATIONAL, INC.  
------------------------------------------------------------------- 
(Exact name of registrant as specified in its charter)  

Texas 
--------------------------------------------- 
(State or other jurisdiction of incorporation)  

0-26362                            76-0416176 
------------------------    ------------------------------------  
(Commission File Number)    (IRS Employer Identification Number)  

9101 Jameel, Suite 180, Houston, TX 77040 
------------------------------------------------------  
(Address of principal executive offices)  (Zip code)  

Registrant's telephone number, including area code (713) 460-1976 
                                                  --------------

___________________________________________________________________       
(Former address, if changed since last report)  

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NUTRITION FOR LIFE INTERNATIONAL, INC.  

INFORMATION TO BE INCLUDED IN THE REPORT  

Item 5. Other Events                                                            
------------                                                    

       On July 16, 1996, Nutrition For Life International, Inc.(the "Company")
entered into an Assurance of Voluntary Compliance (the "AVC") with the Attorney 
General of the State of Illinois (the "Attorney General").  In April, 1996 the  
Attorney General filed suit against the Trudeau Marketing Group, Inc., Kevin    
Trudeau, and Jules Lieb, People v. Trudeau (the "Civil Suit").  The Company was 
-----------------             
not named as a defendant in the Civil Suit and it is noted in the Assurance of  
Voluntary Compliance that no allegations of wrongdoing have been made against   
the Company.  The allegations in the Civil Suit concerned the practices of      
certain independent distributors in the sale of the Company's products and in   
the recruiting of the Company's independent distributors.                       

     Although the Company was not a party to the Civil Suit, the Company's
management viewed the Civil Suit as an opportunity to discuss the Company's     
marketing program and to resolve confusion surrounding the program.  The AVC    
preserves two of the most popular options for the Company's distributors:  the  
Order Assurance Program ("OAP") and the ability of a new distributor to become  
an executive distributor the day that he or she enrolls by generating at least  
$1,000 in sales volume and by joining the OAP and Master Developer Series.      
Under the AVC, the Company will maintain its same executive level               
qualifications, but, to aid clarification, it will no longer use the "instant   
executive" designation.                                                         

        Among other things, the Company has agreed in the AVC to:  (a) create an
official explanation of the Company's marketing and compensation plan and to    
prohibit distributors from creating their own explanations of how the marketing 
and compensation plan works; (b) make clear that there are no mandatory         
purchases of product; (c) create a World Wide Web site with information on the  
Company and its distribution system and update it periodically, including a     
distributor information bulletin which will provide executive distributors'     
earnings disclosures; (d) publicize the Company's long-standing repurchase      
policy; (e) make clear that an executive distributor cannot earn bonuses or     
commissions unless they are engaged in the sale of product at retail, including 
procedures to verify retail sales; (f) take additional steps to encourage       
executive distributors to redeem OAP certificates for product so that executive 
distributors are not merely collecting OAP certificates in order to earn        
commissions, with limits as to the number of OAP certificates; (g) take further 
steps to train executive distributors who are meeting hosts to stress compliance
with the Company's policies and procedures, including an emphasis that          
recruiting and sales literature which is not approved by the Company            

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may not be distributed at recruiting meetings and that the official Company     
marketing compensation plan explanation must be reviewed before a person becomes
a distributor; and (h) monitor meetings and sanction distributors who violate   
the Company's policies and procedures. The Company also contributed $115,000 to 
the Illinois Fund for Consumer Enforcement and Education.                       

      The foregoing is a summary only of the AVC, the full text of which has
been filed as an exhibit to this Report.  Statements made in this Report as to  
the contents of the AVC are not necessarily complete, and each such statement is
qualified in its entirety by reference to the AVC.                              

      The Company has entered into substantially similar agreements with the
states of Michigan, Missouri, New Jersey, Hawaii, Idaho, Kentucky and           
Pennsylvania.  In connection with those agreements the Company made aggregate   
contributions of $60,000.  The Company expects to enter into agreements with    
other states in the future.                                                     

      The Company has been informed that Mr. Trudeau signed a consent decree
resolving the pending lawsuit with the Attorney General and entered into a      
settlement agreement with the Illinois Secretary of State resolving an earlier  
cease and desist order.  The Company was also informed that Mr. Lieb entered    
into an Assurance of Voluntary Compliance.                                      

Item 7. Financial Statements and Exhibits                                       
---------------------------------                               

(c)  Exhibits                                                   

         A. Assurance of Voluntary Compliance for the State of Illinois,
dated July 16, 1996                                   

Signatures  

    Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the    
undersigned thereunto duly authorized.                                          

                                NUTRITION FOR LIFE INTERNATIONAL, INC.

Dated:  July 30, 1996                     By: /s/ DAVID P. BERTRAND             
                                       -----------------------------
                                David P. Bertrand, President

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Dates Referenced Herein

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
Filed on:		7/31/96							None on these Dates
		7/30/96		3
For Period End:		7/16/96		1		3
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