Nutri/system, Inc. v. Con-Stan Industries, Inc.

Court of Appeals for the Ninth Circuit
1 U.S.P.Q. 2d (BNA) 1809, 1987 U.S. App. LEXIS 1652, 809 F.2d 601 (1987)
ELI5:

Sections

Rule of Law:

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The Legal Principle

This section distills the key legal rule established or applied by the court—the one-liner you'll want to remember for exams.

Facts:

  • Since 1960, Con-Stan Industries, Inc. ('Con-Stan') has marketed health products under various registered names using the prefix 'Nutri-'.
  • In 1976, the company that would become Nutri/System, Inc. ('Nutri/System') was incorporated and began operating weight loss centers.
  • By 1980, the company officially became Nutri/System, Inc., operating around 650 centers that offered comprehensive programs with staff, exercise equipment, and a yearly membership fee, primarily targeting middle-income women.
  • In 1980, Con-Stan decided to expand its existing 'Trim-Away' weight loss program and began using the name 'Nutri-Trim' for its weight loss counseling services.
  • Con-Stan's Nutri-Trim program operated on a lower-cost model, holding weekly meetings in community rooms or churches where clients only paid for products, with no membership fees.
  • In 1981, Nutri/System launched a national advertising campaign featuring its logo and client testimonials.
  • In July 1981, a Con-Stan licensee began publishing newspaper advertisements for its Nutri-Trim program, which emphasized 'no fees, no dues, and no fines'.

Procedural Posture:

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How It Got Here

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Issue:

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Legal Question at Stake

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Opinions:

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Majority, Concurrences & Dissents

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Analysis:

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Why This Case Matters

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