Worth English, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE MA'ITER OF WORTH ENGLISH, INC.

COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket US1. Oompla·int, Nov. 10, 1999-Decision, Ja.n. 25, 1934 Where a corporation engaged in the sale and distribution of face creams and cosmetics, described, characterized and represented as containing turtle oil as an active ingredient thereof, Represented through labels, circulars, newspaper advertising and radio talks that the aforesaid substance constituted the effective ingredient of said preparations, and penetrated and nourished the skin, removed lines and wrinkles, built up sagging muscles and underlying flesh, t·ejuveuated the skin and tended to build and firm the bust, through such statements as "Marvelously effective because of the magical qualities of the turtle oil they contain ", "Penetrates quh:kly, cleansing and nourishing the pores and has remarkable rejuvenating properties", "Penetrates evet·y pore and helps build up sagging muscles", contains "imported turtle oil that eruses lines and softens wrinkles " ;

The facts being that none of said various products, nor the ingredient turtle oil, nourish the skin beyond the outer layer thereof, nor do they have rejuvenating properties, or the quality of affecting the muscles, flesh or layers of skin beneath the epidermis;

With tendency and capacity to confuse, mislead and deceive the public into believing that its said products and the said ingredient thereof had the aforesaid properties, and to induce the purchase and use thereof because of such erroneous beliefs thereby engendered, and tllet·eby to divert trade to it from competitors, including those who in nowise misrepresent the functions, uses or effects of theh· competing products, and with effect of so diverting, to the substantial injury and prejudice of such competitors: B eld, That such practices, under the conditions and rircumstances set forth, were all to the injury and prejudice of the publle and competitors and constituted unfair methods of competition. Mr. Harry D. Michael for the Commission.

SYNOPSIS oF Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commision Act, the Commission charged respondent, a New York corporation engaged in the sale and distribution of face creams and cosmetics, including its "English's Turtle Oil Creme", referred to also as "English's Turtle Oil Cream", "English's Turtle Oil Cleansing Cream", and "English's Turtle Oil Skin Freshener and Tonic", and with its office and principal place of business in New York City, with advertising falsely or misleadingly and misbranding or mislabeling as to qualities of WORTH ENGLISH1 INC, 171 170 Findings product, in violation of the provisions of Section 5 of such Act, prohibiting the use of unfair methods of competition in interstate commerce.

Respondent, engaged as aforesaid, as charged, "makes use of labels, circulars, newspaper advertising and radio talks in which it is represented or implied that turtle oil is the effective ingredient thereof and that such ingredient penetrates and nourishes the skin, removes lines and wrinkles, builds up sagging muscles and underly· ing flesh and rejuvenates the skin", and will "build and firm the bust when applied and pressed into the skin"; the facts being that none of said products, nor the ingredient, turtle oil, therein will remove, erase or lessen lines or wrinkles on the human face or of the skin elsewhere on the human body, or nourish the skin or the pores thereof or penetrate the skin beyond the outer layer thereof or epidermis, or have rejuvenating properties or qualities of affecting the muscles, flesh or layers of skin beneath the epidermis, the skin not being nourished by any such preparation or said ingredient externally applied.

Said representations, as alleged, have had and do have the tend· ency and capacity to confuse, mislead, and deceive members of the public into the belief that respondent's products and said turtle oil ingredient have the property and capacity to nourish and rejuvenate the skin, remove or reduce lines and wrinkles in the face or in the skin in other parts of the human body, build up sagging muscles, penetrate the skin beyond the epidermis and build and firm the bust, and to induce members of the public to buy and use said products because of the erroneous beliefs engendered, as above set forth, and to divert trade to respondent from competitors en· gaged in the sale in interstate commerce of face creams and cosmetics; all to the injury and prejudice of the public and competitors. 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 Com. mission, to define its powers and duties, and for other purposes ", the Federal Trade Commission, on the loth day 10f November, 1933, issued its complaint against the respondent herein, Worth English, Inc., a corporation, charging said respondent with the use of un· fair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act. Said complaint was duly served upon said respondent on the 15th day of November, 1933. Findings 18F.T.C.

Attached to said complaint and served upon respondent as aforesaid was a notice fixing the 15th day of December, 1933, and the office of the Federal Trade Commission in Washington, D.C., as the time and place of hearing upon the charges set forth in said complaint. Said notice further notified said respondent that an answer to said complaint would be required to be filed with the Commission on or before said date for hearing and that upon failure to appear or answer the following provision of the Rules of Practice adopted by the Commission would be applicable, to wit: Fallure of the respondent to appear or to file answer within the time as above provided for shall be deemed to be an admission of all allegations of the complaint and to authorize the Commission to find them to be true and to waive hearings on the charges set forth in the complaint. Said respondent having failed either to appear or to file answer to the oomplaint herein, it is hereby found and adjudged to be in default by reason of such failure to appear or to file answer. Thereupon this proceeding came on for hearing by the Commission on said default, and the Commission, having duly considered the matter and being fully advised in the premises, find, pursuant to said Rules of Practice, that the allegations of said complaint are true and that respondent has waived hearings on the charges set forth therein. The Commission :further finds that this proceeding is to the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent, "\Vorth English, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York, and has its office and principal place of business in the City of New York, in said State. PAR. 2. Said respondent is now and has been engaged since May, 1932, in the sale and distribution in interstate commerce of face creams and cosmetics described, characterized, and represented as containing turtle oil as an active ingredient thereof. The particular products so described, characterized and represented are "English's Turtle Oil Creme", referred to also as "English's Turtle Oil Cream", "English's Turtle Oil Cleansing Cream", and "English's Turtle Oil Skin Freshener and Tonic.'' Respondent in the course and conduct of its said business causes its said products to be transported in interstate commerce from its said place of business in New York to, into and through States of the United States other than New York to persons, firms, and corporations to whom or to which they are or have been sold. Respondent sells its said products to WORTH ENGLISH, INC, 173 170 Findings wholesale and retail druggists and other wholesale and retail stores :for ultimate resale to members of the public in the various States where said products are ultimately sold.

PAR. 3. During the time above mentioned, other individuals, firms, .and corporations in the various States of the United States are and have been engaged in the sale and distribution in interstate commerce of face creams and cosmetics, and such other individuals, firms, .and corporations have caused and dO) now cause their said products, when sold by them, to be transported from various States of the United States to, into and through States other than the State of <>rigin of the shipment thereof. Said respondent has been during the .aforesaid time, in competition in interstate commerce in the sale of its said products with such other individuals, firms, and corporations. PAR. 4. Respondent, in advertising its· said products and the daimed functions and effects thereof, makes use of labels, circulars, newspaper advertising, and radio talks in which it is represented or implied that turtle oil is the effective ingredient thereof and that such ingredient penetrates and nourishes the skin, removes lines and wrinkles, builds up sagging muscles and underlying flesh and rejuvenates the skin. In advertisements caused to be inserted by respondent in newspapers circulated to the purchasing public in various States of the United States, respondent's said three products are referred to as:

English Turtle Oil Preparations and the following statements arc made in regard thereto : Nourishing, Cleansing.

Marvelously effective because of the magical qualities of the turtle oil they .contain.

In an advertising circular furnished to dealers by respondent and distributed to the purchasing public, the following statements are made in regard to " English's Turtle Oil Creme ": , .. this cream contains pure turtle oil.

Have you looked in the mirror lately and noticed lines appearing around the eyes and mouth? Or traces of a sagging chin? If these signs are present, then correction is important, .• prevent these by taking action now •.. Here is a smooth, light, nourishing cream, with a delightful, fresh perfume. It penetrates quickly, cleansing and nourishing the pores and has remarkable rejuvenating properties.

In radio advertising talks on behalf of respondent and its products broadcast to the purchasing public, the following statements have been made:

... Turtle Oil Creme nourishes the skln, penett·ates every pore and helps build up sagging muscles. Its gentle action benefits lines and wrinkled skin, whether from approaching old age or exposure to sun and wind. Conclusion 18F.T.C.

On a sticker or label on the jar in which said "English's Turtle Oil Creme" is displayed for sale to the purchasing public, the following statements appear:

A Rich Nourishing Cream, containing imported Turtle Oil that erases lines and softens wrinkles.

This cream wl.ll also tend to build and firm the bust when applietl and pressed into the skin.

PAR. 5. In truth and in fact, none of said products nor the ingredient, turtle oil, therein will remove, erase or lessen lines or wrinkles of the human face or of the skin elsewhere on the human body. Nor does any of said products or the ingredient, turtle oil, nourish the skin or the pores thereof or penetrate the skin beyond the outer layer thereof or epidermis. Neither does any one of said products or said ingredient have rejuvenating properties or qualities of affecting the muscles, flesh or layers of skin beneath the epidermis. The skin is not nourished by any such preparation or said ingredient externally applied.

PAR. 6. The representations of respondent, as aforesaid, have had and do have the tendency and capacity to confuse, mislead and deceive members of the public into the belief that respondent's products and said turtle oil ingredient thereof have the property and capacity to nourish and rejuvenate the skin, remove or reduce lines and wrinkles in the face or the skin in other parts of the human body, build up sagging muscles, penetrate the skin beyond the epidermis and build and firm the bust when in truth and in fact neither any of said products or said ingredient has any of said effects or functions. Said representations of respondent have had and do have the tendency and capacity to induce members of the public to buy and use said products because of the erroneous beliefs engendered, as above set forth, and to divert trade to respondent from competitors engaged in the sale in interstate commerce of face creams and cosmetics.

PAR. 7. There are among the competitors of respondent in the sale of its said products those who in nowise misrepresent the functions, uses or effects o:f their competing products, and respondent's acts and practices as hereinbefore set forth tend to and do divert business to respondent from its competitors, to the substantial injury and prejudice of such competitors.

CONCLUSION The practices of said respondent, under the conditions and circumstances described in the foregoing findings, are all to the injury and prejudice of the public and of respondent's competitors, and con- WORTH ENGLISH, INC. 175 170 Order stitute unfair methods of competition in commerce and are in violation 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 duly heard by the Federal Trade Commission upon the record, and the Commission made its findings as to the facts and its conclusion that said 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 ordel·ed, That respondent, ·worth English, Inc., a corporation, its officers, directors, agents, representatives, servants, and employees, in connection with the sale, offering for sale, or distribution in interstate commerce and the District of Columbia of the face creams and cosmetics described in the findings of fact this day made by this Commission in this proceeding or any other face creams or cosmetics of the same or susbtantially the same composition or ingredients, cease and desist from representing by express statements or by implication that such face creams or cosmetics or the ingredient, turtle oil, therein, will penetrate and nourish the skin, remove or reduce lines or wrinkles, build up sagging muscles or underlying flash, rejuvenate the skin, or build and firm the bust. It is further ordered, That respondent within 60 days from and after date of the service upon it of this order shall file with the Commission a report in writing setting forth in detail the manner and form in which it is complying with the order to cease and desist hereinabove set forth.

\ Syllabus 18 F.T.C.