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B-179195 1 (1974-03-21)

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                 COMPTROLLER GENERAL OF                     'OAS
                            WASHINGTON, D.C. 20546


  B-1 79195          RELEASED                       VAR 2 1 174



  The Honorable Frank E. Moss
  Chairman, Subcommittee for Consumers    Y
  Committee on Commerce
  United States Senate

  Dear Mr. Chairman:

       Your letter of July 12, 1973, requested that we review activities
I which led to the issuance by the Food and Drug Administration (FDA) of
  Compliance Policy Guide No. 7210.2, dated July 8, 1969, which changed
  FDA policy and permitted the use of the term potato chips for prod-
  ucts made from dried or dehydrated potatoes. You also requested that
  we evaluate whether FDA made this change in accordance with the Federal
  Food, Drug, and Cosmetic Act (FD&C Act) and the customary procedures
  of FDA.

       We have concluded that FDA issued Compliance Policy Guide (CPG)
  No. 7210.2 in accordance with its customary procedures. However, with
  regard to whether FDA made the change in accordance with the FD&C Act,
  the statutory authority to render a decision on actions by FDA under
  the FD&C Act has been placed in the Federal courts and there have been
  no suits against FDA to provide a test of its action in issuing CPG
  No. 7210.2.
       From FDA's inception, companies have sought its opinion, before
  marketing products, on whether products or labeling would trigger
  regulatory action by FDA. To preclude any loss of competitive advan-
  tage, FDA in its deliberations on these requests, has made a practice
  of meeting only with the company requesting its advice. However, after
  opinions were delivered and when they were of general interest, FDA
  published them as Trade Correspondence. Also, FDA advised its field
  offices of these opinions to guide them and to promote consistency in
  their compliance activities.
       FDA began issuing CPG's on June 20, 1969, to guide its personnel
  in arriving at compliance decisions regarding the provisions of the
  FD&C Act and other acts on which FDA has established an enforcement
  Sosition. The CPG's contained the advisory opinions formerly pub-
  ished as Trade Correspondence, and compliance policies derived
  from other sources.


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