Peterson Institute of Diet

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IN THE MATI'ER OF H. JOSEPHINE PETERSON DOING BUSINESS AS PETERSON INSTITUTE OF DIET COMPLAINT (SYNOPSIS), FINDINGS, .AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEI'T. 26, 1914 Docket 1671. Ocnnplatnt, Jay BO, 1929-Deo£slon, Apr. 1~, 1931 Where an Individual engaged in treating patients at her "Institute cf Diet", carried on by her with no other assistance than that of a part-time employee, and without drugs, blood tests, employment or consultations with doctors (other than for death certificates) or ever having taken any prescribed course In medicine, or nursing, or having received any diploma or certificate therein, and In conuuctlng slmllar treatments, through diet, by mall, made such false and misleading representations in printed circulars and pamphlets sent to lnquirers responding to her advertisements in the papers and magazines, as that "Cancer is the result of imperfecl nutrltlon ", "Food taken one way brings on a cancer but used another way it cures a cancer", "Deafness Is entirely due to nutrition", and "Tomake a strong statement, no matter what your disease, it can be cured through proper nourishment of. the body", and that her treatment, based on principles set forth, would cure the patient; with capacity and tendency to induce sutferers from various diseases to undergo and pay for such treatment and with etrect of. so doing and thereby depriving physicians and dietitians of business:

Held, That sucb practices, under the conditions and circumstances set forth were to the prejudice of the public and competitors and constituted unfair methods of competition.

Mr. Jannes T, Clark for the Commission.

Mr. Aubrey B. Fennell and Mr. Lucius Q. 0. Lamar, o.f Washington, D. C., for respondent.

SYNOPSIS OF Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, engaged at Washington, D. C., in conducting a business purporting to afford cures .for various human diseases through dietary treatment, with advertising falsely or misleadingly, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce. Respondent, as charged, engaged as above set forth, in advertis>ing her aforesaid business in printed circulars, pamphlets, and magazines, made such false statements and representations as that "The cause and cure of cancer are absolutely matters of nourishment", "Deafness is entirely due to nutrition", and "To make a. strong PETERSON INSTITUTE OF DIET 27 26 Findings statement, no matter what your disease it can be cured through proper nourishment of the body," 1 and represented that her treatment, based on the principles described in the aforesaid statement, had and would cure the diseases named therein and others, with the result that various persons in reliance upon the aforesaid representations and promises became inmates of respondent's residence in Washington and paid for treatment therein, or subscribed for a course o.f treatment by mail, and with the capacity and tendency to induce sufferers from various diseases so to do, and thereby deprive medical practitioners, respondent's competitors, who do not make such representations, of business.

"Circulation by respondent" as alleged "of said false statements and representations is fraudulent and an injury to the public, as tending to establish unscientific ideas and induce reliance thereon in place of scientific medical advice and treatment. " Wherefore, said acts and practices of respondent are all to the prejudice of the public and constitute unfair methods of competition in commerce within the intent and meaning of section 5." Upon the foregoing complaint, the Commission made the following REPORT, FINDINGS AS TO THE FACTS, AND 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, H. Josephine Peterson, charging her with the use of unfair methods of competition in interstate commerce, in violation of the provisions of said act.

Respondent having entered her appearance and .filed her written return in answer to the complaint herein, hearings were heard before a trial examiner theretofore duly appointed, and testimony was heard and evidence received in support of the charges stated in the complaint; the respondent having waived the opportunity given her to offer evidence. Thereafter this matter came on regularly for .final hearing on the briefs of counsel and oral argument, and the Commission, having duly considered the record and being now fully advised in the premises, makes this its .findings as to the facts and conclusion drawn therefrom:

1 Other statements as set forth in the complaint, were as follows: "Cancer Is the result ot Imperfect nutrition." "Food taken. one way brings on a cancer but used another way it cures a cancer," " The wbole secret of cancer lles in the food problem." "We grow deaf slmply and solely because we are not receiving the food that we need. There i1 no other cause for deatnes11." Findings lG F. 'l'. O. FINDINGS AS TO THE FACTS P .ARAGRAPH 1. Respondent, H. Josephine Peterson, is and has been since August, 19215, a resident of the city of Washington, in the District of Columbia, and during said period has maintained and conducted at her residence in said city the so-called " Peterson Institute of Diet", where, in consideration of money by them paid her therefor, she is, and during said period has been, engaged in treating, advising, instructing and prescribing in the matter of diet for boarders, inmates or patients coming to her with various diseases for treatment and cures· advertised by her as hereinafter described. From this "Institute" she also conducts, for consideration, as aforesaid, treatments of diseases by mail. She uses no drugs, makes no blood tests and employs no doctors of medicine, and consults none except for the purpose of getting death certificates signed. She conducts the " Institute" alone, with the aid of a part-time assistant. She has never taken any pr~cribed course in medicine or in nursing, nor received any diploma or certificate in either line. She advertised treatment by said Peterson Institute of Diet in the District of Columbia and in the several States of the United States in the Washington Star and in magazines, from 1925 to the early part of 1929, and to those who answered these advertisements she sent by mail, or otherwise, printed circulars and pamphlets prepared by her describing and advertising said "Institute " for the purpose of soliciting and procuring persons to pay for treatment therein, or to subscribe for treatment by mail, consisting of ad vice and directions as to diet, based on the theories and representations and cure of diseases stated in said circulars and pamphlets.

PAR. 2. Respondent has, in said circulars and pamphlets and in correspondence, represented and held out to the public the following statements as true:

"Cancer is the result of imperfect nutrition." "The cause and cure of cancer are absolutely matters of nourish· ment."

"Food taken one way brings on a cancer but used another way it cures a cancer.

"The whole secret of cancer lies in the food problem." "Deafness is entirely due to nutrition."

"\Ve grow deaf simply and solely because we are not receiving the food we need. There is no other cause for deafness." "To make a strong statement, no matter what your disease, it can be cured through proper nourishment of the body." PETERSON INSTITUTE OF DIET 29 26 Order P.an. 8. Respondent represents and holds out to the public in said advertisements, circulars, pamphlets and correspondence, that treatment by her, based on the principles described in said statements quoted in paragraph 2, has cured and will cure the diseases named therein, and others.

PAn. 4. Various persons, relying on the statements, representations and promises contained in said circulars, pamphlets and correspondence, and other advertising matter, have become boarders, inmates or patients at respondent's residence in the City of Washington and have paid for treatment by respondent therein, or have subscribed for a course of treatment by respondent by mail and paid respondent therefor.

PAR. 5. Respondent has been and is now in competition with physicians and dietitians who do not make the representations stated in paragraph 2 hereof, or the claims for cure described in paragraph 8 hereof.

PAR. 6. Said statements and representations are false and misleading and have the capacity and tendency to induce persons suffering from various diseases to undergo treatment by respondent at her said '• Institute" or by mail, and to pay her therefor; thereby taking away business from physicians and dietitians. CONCLUSION The practices of the said respondent, under the conditions and circumstances described in the foregoing findings, are to the prejudice of the public and of respondent's competitors, and are unfair methods of competition in commerce and constitute a violation of Section 5 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."

ORDER TO CEASE AND DESIST This proceeding having been heard and considered by the Federal Trade Commission upon the complaint of the Commission and the record, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated 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", It is now ordered, That the respondent, H. Josephine Peterson forthwith cease and desist in the District of Columbia or in interstate commerce from:

Order 1~F.T.O.

(1) Publishing or causing to be published in advertisements, circulars, pamphlets, or business correspondence any statements to the effect that:

"Cancer is the result of imperfect nutrition." " The cause and cure of cancer are absolutely matters of nourishment."

"Food taken one way brings on a cancer but used another way it cures a cancer."

"The whole secret of cancer lies in the food problem." "Deafness is entirely due to nutrition."

"We grow deaf simply and solely because we are not receiving the food that we need. There is no other cause for deafness." "To make a strong statement, no matter what your disease it can be cured through proper nourishment of the body." (2) Representing and holding out to the public in advertisements, circulars, pamphlets or business correspondence that treatment by her, based upon the principles described in the statements quoted above, has cured and will cure the diseases named therein and others. (3) Soliciting through advertisements, circulars, pamphlets or business correspondence, or personally, persons to be treated by her on the basis of the principles described in the statements hereinabove quoted, either personally or at her home or so-called "Institute of Diet", or by advice given in written communications; and receiving from persons compensation or remuneration for such treatment; also, giving board and lodging at her home known as the "Peterson Institute of Diet", in the City of Washington, D. C., or elsewhere, to any person secured through soliciting or ad vert ising as above described.

It is further ordered, That the respondent shall, within 60 days after the service upon her of a copy of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which she has complied with the order to cease and desist hereinbefore set forth.

FAYRO LADORATORIES1 INO. 31 Complaint