Sereda, Joseph P

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In vue Marrer or JOSEPH P. SEREDA, TRADING UNDER THE NAME AND STYLE OF HEALTH VIOLET PRODUCTS COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGLD VIOLATION Of SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1914 Docket 1695. Complaint, Sept. 20, 1929—Deolston, Deo. 16, 1929 Where an individual engaged in the sale to the public of a so-called violet-ray machine or instrument, jn his advertiseiuents thereof in newspapers, magazines, pamphlets, and other publications circulated generally throughout the different States and in circulars and other literature sent to prospective purchasers, (a) Represented that he was offering the same at a reduced and special price of $15, thereby saving the purchaser $20 from the usual price, the fact being that he had never sold or attempted to sell said instrument at any price greater than $15; with the result that persons were induced to buy the same in the belief that they were obtaining the machine at a reduced and special price;

(b) Represented that said instrument would quickly cure pain and disease, that thousands suffering from chronle or acute diseases should receive immediate relief “from this wonderful healing method,” and that “ yloletray should heal all other diseases and give relief almost Instantly” and that “84 different diseases have been treated and healed with violet-ray,” the facts being that said individual had made no test or experiments to determine the curative or healing value of said instrument, nor had such tests or experiments made, knew nothing about the curative value thereof or the rays therefrom, and ultilized, for the list of diseases specified, a Hst In a circular which had come into his possession, and that the violet color made by the instrument, when plugged into a house current, furnished merely a mild superficial stimulation to the part of the body to which applied, such as obtained by application of turpentine or ointment containing red pepper, that neither sald machine, nor the rays therefrom, had any curative effect or value whatsoever, and that such rays were in no way similar to ultra-violet rays, or to machines or instruments producing them; with the result that persons bought said instrument In the bellef that {t would cure and heal many diseases: Heid, That such practices, under the circumstances set forth, constituted unfair methods of competition.

Mr. Baldwin B. Bane for the Commission.

Synopsis or Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, engaged in the sale of so-called violet-ray machines and equipment to purchasers in other States HEALTH VIOLET PRODUCTS 135 134 Complaint and with principal office and place of business in Chicago, with advertising falsely or misleadingly in violation of the provisions of such act, prohibiting the use of unfair methods of competition in interstate commerce.

Respondent, as charged, engaged as above set forth, in advertising his said machines and equipment in newspapers, magazines, pamphlets, circulars, letters, and other publications circulated throughout the different States, and in letters, pamphlets, and circulars sent to prospective purchasers falsely represents the regular price of his said machines and equipment as $35, reduced to $20 to the particular person to whom the letter, circular, or advertisement is sent, such offer being for a limited time and subject to withdrawal, without notice, the fact being that the pretended reduced price is respondent’s usual and regular price. The use by respondent of said false and misleading statements and representations, as alleged, “is calculated to and has the tendency and capacity to mislead and deceive the public and does mislead and deceive the public into purchasing said machines and equipment in the belief that it is obtaining said machines and equipment at a reduced and special price.” Respondent further, as charged, in his aforesaid advertisements falsely and misleadingly represents that his said product, when applied to the human body, will quickly cure pain and disease, mentioning some 80 different diseases, including alcoholic and drug addictions, Bright’s disease, diabetes, diphtheria, epilepsy, heart disease, and smallpox, the fact being that respondent’s said machines and equipment “have no curative effect whatsoever but merely produce a violet colored electrical discharge giving a mild superficial stimulation to the part of the body to which it is applied,” and “have nothing in common with the product of the true ultraviolet ray.” Said statements and representations as alleged, “are palpably false and deceptive” and the use thereof “is calculated to and has the tendency and capacity to mislead and deceive the public and does mislead and deceive the public into purchasing respondent’s machines and equipment under the belief that said representations are true.” ? 1The false and misleading representations made by respondents, as set forth in the complaint, include the following:

“ Thousands of men and women who suffer from chronic or acute diseases should receive immediate rellef from thig wonderful healing method. Violet ray should heal all other diseases and give relief almost imnediately. Eighty-four different diseases, which are deacribed below, have been treated and healed with violet ray.” “Thousands of men and women who are suffering chronic or acute diseases will get quick relief with this greatest curing method. Violet ray will cure all your allments and will end your sufferings almost instantly. Efghty-six different ailmenta—which are described below, have been treated and cured with violet rays.” Findings 13 F.T.C.

The above alleged acts and practices, as charged, “are each and all of them to the prejudice of the public and respondent’s competitors and constitute unfair methods of competition in interstate commerce within the intent and meaning of section 5.” Upon the foregoing complaint, the Commission made the following Revort, Finprnes as to rhe Facts, anp ORDER Pursuant to the provisions of an act of Congress approved September 26, 1914, entitled “An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes”, the Federal Trade Commission issued and served a complaint upon the respondent, Joseph P. Sereda, trading under the name and style of Health Violet Products, charging him with unfair methods of competition in commerce in violation of the provisions of section 5 of said act.

The respondent entered his appearance, and an agreed stipulation as to the facts was entered into and filed in which it is stipulated that the facts therein recited shall be taken as the facts in this proceeding, and in lieu of testimony, and that the Commission may proceed upon said stipulation as to the facts to make its report in said proceeding, and its findings as to the facts, and its order disposing of the proceeding without briefs or oral argument. Thereupon, this proceeding came on for decision, and the Commission having duly considered the record and being fully advised in the premises, makes this its findings as to the facts and conclusion drawn therefrom:

FINDINGS AS TO THE FACTS Paracrapy 1. Joseph P. Sereda, hereinafter referred to as respondent, is an individual doing business under the name and style of Health Violet Products, with his principal office and place of business in the city of Chicago in the State of Illinois. He is engaged in the business of selling to the public generally in various States of the United States an instrument or machine which he calls a violet-ray machine. The machine or instrument is operated by plugging it into a socket on the ordinary house electric current. Respondent causes the instruments or machines when so sold to be shipped from his place of business in Chicago, Ill, to purchasers located in various States of the United States, pursuant to such sales. In the conduct of such business he is in competition with other individuals, partnerships, and corporations.

Par. 2. In order to induce the public to purchase said instrument or machine, respondent causes advertisements to be inserted in newspapers, magazines, pamphlets, and other publications circulated HEALTH VIOLET PRODUCTS 137 134 Findings generally throughout the different States of the United States offering his said instrument or machine for sale and soliciting the purchase thereof; and he sends from Chicago, IIl., to prospective purchasers located at points in various States of the United States letters, pamphlets, circulars, and other literature describing said machine or instrument and soliciting the purchase thereof. Par. 3. In the aforesaid advertisements and literature, respondent makes statements and representations to the effect that the usual, ordinary, and regular sales price of the said machine or instrument is $35, but that he, for a limited time and subject to withdrawal without notice, is offering to sell said machine or instrument at a reduced and special price of $15, which gives the purchaser # saving of $20 from the usual, ordinary, and regular price for said machine or instrument.

Par. 4. The usual, ordinary, regular, and full price for said machine or instrument is and has been $15 and respondent has never sold or attempted to sell the said machine or instrument at any price greater than $15. As a result of the statements and representations set out in paragraph 3 above, persons in various States of the United States buy said machine or instrument in the belief that they are obtaining said machine or instrument at a reduced and special price.

Par. 5. In the aforesaid advertisements and literature respondent makes the statements and representations that said machine or instrument, when plugged into the ordinary house electric current and applied to the human body, will quickly cure pain and disease, and that “thousands of men and women who suffer from chronic or acute diseases should receive immediate relief from this wonderful healing method. Violet ray should heal all other diseases and give relief almost immediately. Eighty-four different diseases which are described below have been treated and healed with violet ray”, and that “thousands of men and women who are suffering from chronic or acute diseases will get quick relief with this greatest curing method. Violet ray will cure all your ailments and will end your sufferings almost instantly. Eighty-six different ailments, which are described below, have been treated and cured with violet rays”, and “pain and disease quickly cured by violet ray”. In the aforesaid advertisements and literature respondent lists as among the diseases that have been treated and cured with Violet-Ray the following:

Abscess, Birthmarks, Alcohol and drug addictions, Bladder disease (cystitis), Asthma, - Bolls, Ataxia, Blackheads, Barber’s itch, Brain fag, Bright's disease, Bronchitis, Brulses, Bunions, Burns, Callouses or corns, Cancer (mild form), Cankers, Carbuncles, Cataract, Catarrh (nasal), Chafe, Chapped hands or face, Chilblaing, Cold extremities, Colds in head, Colds In lungs, Constipation, Dandruff, Deafness, Earache and ear diseases, Diabetes, Diphtheria, Dyspepsia, Eczema, Eptlepsy, Falling hair, Felons, Female troubles, Fistula, Freckles, Frost bites, Hay fever, Headaches, Heart disease, Hives and rash, Gleet, Findings Goltre, Gonorrhea (male), Gonorrhea (female), Gout, Grey halr, Grippe (influenza), Insomnia, Leucorrhea, Lumbago, Mumps, Nervousness, Neuralgia, Neuritis, Obesity, Paralysis, Piles (hemorrhol!ds), Pimples, Pleurisy, Pneumonla, - Poison ivy, Prostatic diseases, Pyorrhea, Red nose, Rheumatism, Ringworm, Scarlet fever, Scars, Skin diseases, Smallpox, Sore feet and stone bruises, Sore throat, Sprains, Stiff neck or joints, Tonsillitts, Ulcers, Whooping cough, Writers cramp.

Par. 6. Respondent has made no tests or experiments to determine the curative or healing value of the machine or instrument which he sells or the rays from such machine or instrument, and he has had no such tests or experiments made. He knows nothing about the curative value of said machine or instrument or the rays therefrom. The list of diseases set out in paragraph 5 above and appearing in the aforesaid advertisements and literature was copied by him from a list of diseases appearing upon a circular which came into his possession. Said machine or instrument, when plugged into an electric current, makes an electric discharge in a vacuum which gives a violet color and the application of it to any part of the body merely furnishes a mild superficial stimulation to the part to which it is applied, such as might be obtained by the appli- HEALTH VIOLET PRODUCTS 139 184 Order ;

cation of turpentine or and ointment contaning red pepper. The said machine or instrument or the rays therefrom have no curative effect or value whatsoever. The rays from said machine or instrument are in no way similar to ultra violet rays, and said machine or instrument is not like the machines producing ultra violet rays. As a result of the statements and representations described in paragraph 5 hereof persons in various States of the United States buy said machine or instrument in the belief that it will cure and heal many and various diseases.

Par. 7. There are other concerns, competitors of respondent, selling machines or instruments similar to those sold by respondent and who do not, in connection with the sale thereof, make such statements and representations as those made by respondent and set out above.

CONCLUSION The said practices of the respondent, under the conditions and circumstances set forth in the foregoing findings, are unfair methods of competition in interstate commerce, and constitute a violation of section 5 of the act of Congress approved September 26, 1914, entitled “An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ”, ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the stipulation of facts agreed upon by the respondent and counsel for the Commission, and the Commission having made its findings as to the facts with its conclusion that the respondent has violated the provisions of the act of Congress approved September 26, 1914, entitled “An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes”, It ig now ordered, That the respondent, Joseph P. Sereda, his agents, representatives, servants, and employees, cease and desist: (1) Stating or representing in advertisements, circulars, correspondence, or otherwise that the usual and ordinary price of the machine or instrument which he sells is greater than the price at which such machine or instrument is actually sold by him; or that he is offering said machine or instrument at a less price than the price which he usually and ordinarily receives therefor, when such is not the fact; or in any manner misrepresenting the regular and usual price of such machine or instrument. (2) Stating or representing that said machine or instrument or the rays from said machine or instrument will cure or heal pain or disease or any particular pain or disease; or that persons suffer- Order 18 F.T. 0.

ing from disease or any particular disease have been cured or healed by the use of said machine or instrument or the rays therefrom; or that said machine or instrument or the rays therefrom have been successfully used in the treatment of disease or any particular disease. ° It is further ordered, That the respondent, Joseph P. Sereda, shall within 30 days after the service upon him of a copy of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with the order to cease and desist hereinbefore set forth. CHARLES 8. MORRIS 141 Complaint