LeGay, Inc.

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IN THE MATTER OF LEGAY, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. IS OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 29"1"1. Complaint, .Apr. 25, 1995-order, Jan. 22, 1996 Where a corporation, engaged In the sale and distribution In commerce of a depilatory- Represented upon the labels thereof and in folders accompanying the same and In periodical advertisements thereof, that its s11id product was a "harmless" and "effective hair remover" and banished facial hair shadows and removed unsightly hair without roughening skin texture, and that consistent use thereof would permanently eradicate hair; Facts being Its action was only temporary, and composition thereof was such that unless used with care it might burn the skin of the user and it would not remove hair, even temporarily, without roughening the skin texture, and noticeably so in the case of a user with a sensitive skin; With capacity and tendency to mislead and deceive the purchasing public and induce their purchase of said product in reliance upon the truth of such false and misleading statements and representations and to divert trade unfairly to it from competitors who truthfully advertise their products, to the substantial Injury of substantial competition In inter· state commerce:

Held, That such acts and practices were all to the prejudice of the public and competitors and constituted unfair methods of competition. Before Mr. Edward M. Averill, trial examiner. Mr. John W. Hilldrop for the Commission.

Complaint 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 having reason to believe that LeGay, Inc., a corporation, hereinafter referred to as respondent has been and is using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPit 1. Respondent, LeGay, Inc., is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of Illinois, with its principal place of business located at Chicago in the State of Illinois. It is now and for more LEGAY, INC. 61 60 Complaint ~han one year last past has been engaged in the sale and distribution In commerce, between and among various States of the United States of America, of a depilatory under the trade name of "LeGay ~air Remover"; causing said product when sold to be shipped from Its place of business in the State of Illinois to purchasers thereof located in a State or States of the United States of America other than the State of Illinois. In the course and conduct of its business respondent has been at all times herein mentioned in substantial competition with other corporations, and with individuals, firms, and partnerships engaged in the sale and distribution of depilatories between and among the various States of the United States. PAR. 2. In the course and conduct of its business as described in Paragraph 1 hereof, respondent, in soliciting the sale of and in selling its said depilatory between and among the various States ?f the United States, has adopted, has used and still uses a label for Its product upon which label the following words appear: LEGAY Harmless Fragrant EJrectlve HAIR REMOVER Accompanying such label, in a pocket at the back thereof, has been and is inserted a small folder containing instructions for the Use of said product, of which the following is a part: LEGAY HAIR REMOVER is a requisite to skin loveliness • • • banishes facial hair shadows, removes unsightly hair on arms, legs and under arms without roughening skin texture EFFECTIVE-HARMLESS-FRAGRANT LeGay is pleasant to use, without offensive odors even when applied. Regular applications are essential to good grooming. And respondent in offering for sale and in selling its said product between and among the various States of the United States has caused ~nd still causes the following and other statements of similar tenor, llnport and substance to appear in periodicals having a wide interstate circulation:

Consistent use of LeGay's Perfect Hair Remover will permanently eradicate hair.

It used consistently will gradually and permanently eradicate unsightly hair.

It LeGay's Perfect Hair Remover is applied twice a week for twenty-five weeks, used as directed, and results are not permanent, Findings 22F.T.O.

the manufacturers will supply free of charge, enough powder for further treatments.

FRAGRANT HARMLESS EFFECTIVE HAIR REMOVER • • • banishes facial hair shadows • • • pleasant to use without offensive odors even when applied • • • Removes hair without roughening skin texture • • • When in truth and in fact respondent's said product will not permanently remove hair, is not harmless, nor is it an effective hair remover; it will not banish facial shadows andjor remove hair without roughening the skin texture; nor will its use permanently eradicate hair.

PAR. 3. Each and all of the false and misleading statements and representations of respondent as hereinbefore set out had and have the capacity and tendency to mislead and deceive the purchasing public into the beliefs that they are true and to induce them to purchase the said product in such beliefs; and said false and misleading statements and representations hereinbefore referred to likewise have the tendency and capacity to and do unfairly divert trade to respondent from individuals, corporations, associations, and firms who are competitors of respondent and who truthfully advertise their products. Thereby substantial injury is done by respondent to substantial competition in interstate commerce. PAR. 4. The acts and practices set forth herein are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in interstate commerce within the intent and meaning 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". 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, on April 25, 1935, issued and served its complaint in this proceeding upon respondent, LeGay, Inc., a corporation, charging it with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint, to which the respondent filed no answer or other pleading, testimony and evidence, in support of the aUegations of said complaint, were introduced by John w·. Hilldrop, attorney for the Commission, before Edward :M. Averill, an examiner LEGAY, INC. 63 60 Findings of the Commission theretofore duly designated by it; the respond~nt ~ot appearing by and through its officers nor by counsel, and introduc- Ing no testimony and offering no evidence in defense of the allegations of the complaint; and said testimony and evidence was duly recorded and filed in the office of the Commission. Thereafter the proceeding regularly came on for final hearing before the Commission on the said complaint, testimony and evidence, brief of counsel for the Commission in support of the complaint, no brief being filed by the respondent; and the Commission having duly considered the same., ~nd being fully advised in the premises, finds that this proceeding IS in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FAOI'S • PARAGRAPU 1. Respondent, LeGay, Inc., is a corporation, organ- IZed, existing, and doing business under and by virtue of the laws of the State of Illinois, with its principal place of business located at Chicago in the State of Illinois. It is now and for more than one year last past has been engaged in the sale and distribution in commerce, between and among various States of the United States of America, of a depilatory under the trade name of "LeGay Hair Remover"; causing said product when sold to be shipped from its Place of business in the State of Illinois to purchasers thereof located in a State or States of the United States of America other than the State of Illinois. In the course and conduct of its business respondent has been at all times herein mentioned in substantial com- Petition with other corporations, and with individuals, firms, and Partnerships engaged in the sale and distribution of depilatories between and among the various States of the United States. PAR. 2. In the course and conduct of its business as described in Paragraph 1 hereof, respondent, in soliciting the sale of and in selling the said depilatory between and among the various States of tho Dnited States, has adopted, has used and still uses a label for its Product upon which label the following words appear: LEGAY Harmless Fragrant Effective HAIR REMOVER Accompanying such label, in a pocket at the back thereof, has been a~d is inserted a small folder containing instructions for the use of said product, of which the following is a part: Findings 22F.T.C LeGAY HAIR REMOVER 1s a requisite to skin loveliness • • • banishes facial hair shadows, removes unsightly hair on arms, legs and under arms without roughening skin texture EFFEC- TIVE-HARMLESS-FRAGRANT LeGay is pleasant to use, without ofrensive odors even when applied. Regular applications are essential to good grooming.

And respondent in offering for sale and in selling l.ts said product between and among the various States of the United States has caused and still causes the following and other statements of similar tenor, import and substance to appear in periodicals having a wide interstate circulation:

Consistent use of LeGay's Perfect Hair Remover will permanently eradicate hair.

If used consistently will gradually and permanently eradicate unsightly hair.

If LeGay's Perfect Hair Remover is applied twice a week for twenty-five weeks, used as directed, and results are not permanent, the manufacturers will supply free of charge, enough powder for further treatments.

FRAGRANT HARMLESS EFFECTIVE HAIR REMOVER • • • banishes facial hair shadows • • • pleasant to use without o1rensive odors even when applied. • • • Removes hair without roughening skin texture • • •. When in truth and in fact respondent's said product will not permanently remove hair, is not harmless, nor is it an effective hair remover; it will not banish facial shadows or remove hair without roughening the skin texture; nor will its use permanently eradicate hair. The depilatory manufactured, sold, and distributed in inter· state commerce by respondent is composed of starch, 52%; calcium carbonate, 35% ; strontium sulphide, 11.4% ; perfume, .6%; and buffer, .1%. The strontium sulphide is the active ingredient therein, it being one of the alkaline sulphides. The said active ingredient in respondent's depilatory, strontium sulphide, has the power of dissolving horn-like substances such as hair, and as the human hair has exactly the .same structure as the outer skin, the said respondent's depilatory, unless used with great care and caution, may burn the skin of the person so using it. While the use of respondent's depilatory will temporarily remove hair from human bodies, it will not do so permanently, and the hair so removed will soon be followed by another growth of hair. The said depilatory of respondent will not remove hair even temporarily without roughening the skin te:x· ture, and in the event the skin of the person so using said depilatory LEGAY, INC. 65 60 Order is sensitive, the use of respondent's depilatory would produce such a roughening of the skin that it would be obvious. PAR. 3. Each and all of the false and misleading statements and representations of respondent as hereinbefore set out had and have the capacity and tendency to mislead and deceive the purchasing Public into the belief that they are true and to induce them to purchase the said product in such belief; and said false and misleading statements and representations hereinbefore referred to likewise have the tendency and capacity to and do unfairly divert trade to respondent from individuals, corporations, associations and firms who are competitors of respondent and who truthfully advertise their prod- ~cts. Thereby substantial injury is done by respondent to substantial competition in interstate commerce.

CONCLUSION The acts and practices set forth herein are all to the prejudice of the public and of respondent's competitors and constitute unfair lllethods of competition in interstate commerce within the intent and llleaning 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 by the Federal Trade Commis- Sion upon the complaint of the Commission, testimony and evidence taken before Edward M. Averill, an examiner of the Commission theretofore duly designated by it, in support of the charges of said complaint, brief of counsel for the Commission, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress approved S~ptember 26, 1914, entitled "An Act to create a Federal Trade Comlllission, to define its powers and duties, and for other purposes", It is ordered, That the respondent, LeGay, Inc., a corporation, its a.gents, servants, and employees, in the advertising, sale and distribution in interstate commerce of its product, to wit, a depilatory known and designated by respondent as "LeGay Hair Remover", cease and desist:

From advertising or representing by labels, circulars, folders, news- Papers, magazines, or other publications, by radio broadcasts, or by any other manner, method or means:

(a) That its said depilatory, known and designated as "LeGay llair Remover", permanently removes hair from the human body. Order 22F.T.C.

(b) That said "LeGay Hair Remover" is harmless. (o) That said "LeGay Hair Remover" is an effective hair remover. (d) That said "LeGay Hair Remover" will banish facial shadows, or remove hair without roughening the skin . .And it is hereby further ordered, That the said respondent, LeGay, Inc., a corporation, shall within 60 days after the service upon it of this order to cease and desist, file with this Commission a report in writing setting forth in detail the manner and form in which it shall have complied with the order to cease and desist hereinbefore set forth.

COLOMBO EXTRACT CO. 67 Complaint