Dr. J. E. Cannaday

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DR. J. E. CANNADAY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ~ OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket f811. Complaint, May 19, 1936-Decision, June f9, 1936 Where an individual engaged in the sale of a medicinal preparation and treatment for relief and cure of eczema- Represented, through advertisements in newspapers and periodicals of general circulation, that said preparation and treatment would effect a cure of said ailment in all cases and give permanent relief therefrom and heal same permanently, and would stop the itching attending same, and issued and distributed testimonials to effect that persons giving such testimonials had been suffering from said ailments and had been relieved or cured or completely restored to health by use of such said preparation and treatment, and represented that be bad cured numerous persons in various F States through use thereof·, acts being that it would not accomplish such results in all cases, many of the persons thus testifying had not been cured or completely restored to health, and he was without personal knowledge as to the disease, ailment or disorder from which such persons were or bad been actually su1fering, and as to extent, if any, to which users had benefited or been cured by his said preparation and treatment;

'With tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all said representations were true, and with result that a number of such public, by reason of such mistaken and erroneous beliefs thus Induced, purchased a substantial amount thereof and trade was thus unfairly diverted to him from individuals and concerns likewise engaged In the sale of medicinal prepa· rations and treatments for eczema, who truthfully advertised same; to the substantial injury of competition in commerce: Held, That such practices, under the conditions and circumstances set forth, Were to the prejudice of the public and competitors and constituted unfair methods of competition.

llfr. George Foulkes for the Commission.

llfr. Clinton Boob, of Washington, D. C., for respondent. COMPLAINT Pursuant to the .provisions of an Act of Congress approved Sept~mber 26, 1914, entitled "An Act to create a Federal Trade Commis- Sion, to define its powers and duties and for other purposes," the Federal Trade Commission, having r~ason to believe that Dr. J. E. Cannaday, an individual, hereinafter referred to as respondent, has been and now is using' unfair methods of competition in commerce as o in said act, and it appearmg• to t h e Commission· ·"commerce ' ' is defined Complaint 22F.T.C.

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:

PARAGRAPH 1. Respondent, Dr. J. E. Cannaday, is an individual with his principal office and place of business located at 316 So. Ohio Ave. in the city of Sedalia, State of Missouri. Respondent is now, and for more than 20 years last past has been, engaged in the business of selling a medicinal preparation and treatment for the relief and cure of eczema, which respondent distributes to purchasers, many of whom reside in States other than the State of Missouri, and when orders are received therefor, they are filled by respondent by ship· ping said medicinal preparation and treatment to purchasers, from the said city of Sedalia, Mo., into and through other States of the United States and in the District of Columbia, and there is now, and has been during the time hereinbefore mentioned, a constant current of trade and commerce in said medicinal preparation and treatment so distributed and sold by respondent, between and among the various States of the United States and in the District of Columbia. In the course and conduct of his said business, said respondent was and is in substantial competition with other individuals, firms, partnerships, and corporations likewise engaged in the sale and distribution of medicinal preparations and treatments for the relief or cure of eczema between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the course of the operation of said business, and for the purpose of inducing individuals to purchase said medicinal prepara· tion .'and treatment, respondent has caused advertisements to be inserted in newspapers and magazines of general circulation throughout the United States in all of which advertisements respondent has represented that his medicinal preparation and treatment will either cure eczema, heal eczema permanently, or stop the itching attending the ailment of eczema. Among the representations made through such media are the following:

ECZEMA .Also called Tetter, Salt Rheum, Pruritls, Milk Crust, Water Poison, Weeping Skin, etc.

FREE TRIAL Can be cured. Write me today and I will send you a free trial of my mild, soothing, guaranteed treatment that will prove it. Stops the itching and heals permanently. Send no money-just write me-a postal w111 do. .Address DR. CANNADAY, Eczema Specialist, 172 Park Sq., Sedalia, Mo. DR. ;r, E. CANNADAY 779 777 Complaint • FREE TRIAL • • Get rid of it! Don't give up-Try a week's free test of a mild, soothing, guaranteed treatment, which for 30 years bas been giving Eczema sufferers their "First Real Night's Rest." Write today-a postal will do. Address DR. C.ANN.AD.AY, Eczema Specialist, 527 Park Sq., Sedalia, Mo. ECZEMA IS .A SIGN • • • FREE TRIAL Eczema is a danger sign of trouble inside, as we see in measles, small-pox, scarlet fever, etc. For best results it SHOULD be treated 3 ways at once; by the diet, by the blood, and lastly, treat the skin. Salves, "shots," lights, food tests, etc., are experimental. They don't remove the cause. Try a week's FREE TRIAL test, of the best outside treatment found in 30 years of experience, of treating this one disease. It is clean, mild, soothing, guaranteed. You, too, Illay find your ''first real night's rest." Write today- a postal WILL DO. Address J. E. C.ANN.AD.AY, M. D.-Eczema Specialist, 627 Park Square, Sedalia, Mo. Al.l of said statements, together with many similar statements ap- ~earmg in respondent's advertising literature purport to be descriptive of the remedial and curative quality of respondent's product. In all of its advertising literature, respondent represents, through statements and representations herein set out and other statements of similar import and effect that, (1) his medicinal preparation and treatment will effect a cure of eczema in all cases; ( 2) his medicinal preparation and treatment will effect permanent relief from eczema in all cases; (3) his preparation and treatment will heal eczema permanently in all cases; and ( 4) his preparation and treatment will stop the itching attending the ailment of eczema in all cases. P:AR. 3. Respondent has further, in the course of conduct of his business, issued and distributed in interstate commerce, circulars and other literature containing testimonials in which statements are made by various persons to the effect that they were, or had been suffering from eczema and had been relieved or cured or completely restored to health by the use of respondent's preparation and treatment, when in truth and in fact, many of said persons had not been cured or completely restored to health. Respondent has represented that he has cured numerous persons living in various States of the United States by the use of this preparation and treatment while in truth and in fact, respondent was and is without personal knowledge as to the disease, ailment, or .disorder from which said persons were or had been Complaint 22F.T.C.

actually suffering, and as to the extent, if any, to which said users have benefited or have been cured by the use of respondent's preparation and treatment.

P .AR. 4. The representations made by respondent, with respect to the nature and effect of his medicinal preparation and treatment when used, are grossly exaggerated, false, misleading, and untrue. In truth and in fact, respondent's preparation and treatment advertised and represented by him as a cure in all cases will not cure eczema in all cases; nor will said preparation and treatment give permanent relief from eczema in all cases; nor will said product, when applied and administered according to respondent's directions, heal eczema per· manently in all cases. In truth and in fact respondent's preparation and treatment is not effective in certain·cases of eczema and will not in many cases of eczema stop the itching attending said ailment. P .AR. 5. Each and all of the false and misleading statements and misrepresentations made by respondent in designating and describing the remedial and curative quality of his medicinal preparation and treatment, as hereinabove set forth, in his advertising in newspapers, magazines, booklets, pamphlets, testimonials, and other advertising literature, in offering for sale and selling his medicinal preparation and treatment was, and is, calculated to, and had, and now has a tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all of said representations are true. Further, as a direct consequence of the mistaken and erroneous beliefs, induced by the advertisements and misrepresentations of respondent, as hereinabove detailed, a number of the consuming public purchased a substantial volume of respondent's medicinal preparation and treatment with the result that trade has been unfairly diverted to respondent from individuals, firms, and corporations likewise engaged in the business of selling medicinal preparations and treatments intended and sold for the purpose of treating eczema, and who truthfully advertise their preparations and treatments. As a result thereof, substantial injury has been, and is now being done, by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia.

P .AR. 6. The above and foregoing acts, practices, and representations of the respondent have been, and are, all to the prejudice of the public and respondent's competitors as aforesaid, and have been, and are, unfair methods of competition within the meaning and intent 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."

• DR. J". E. CANNADAY 781 111 Findings 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 May 19, 1936, issued, and on May 21, 1936, served its complaint in this proceeding upon the respondent, Dr. J. E. Cannaday, an individual, charging him with the use of unfair methods of competition in commerce in violation of the provisions of said act.

After the issuance of said complaint, respondent answered, admitting all the material allegations of the complaint to be true, and waiving all further and intervening procedure. Thereafter the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer thereto, and the Commission, having duly considered the same and 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 FACTS PARAGRAPH 1. Since about 1916 the respondent, Dr. J. E. Cannaday, has been engaged, as an individual, in the business of selling a medicinal preparation and treatment for the relief and cure of eczema. Respondent's office and principal place of business is located at 316 South Ohio Ave., in the city of Sedalia, State of Missouri. Respondent distributes his medicinal preparation and treatment to purchasers, many of whom reside in States other than the State of Missouri, and when orders are received for the preparation and treatment they are filled by respondent by shipping the preparation and tr~atment to purchasers from the city of Sedalia, Mo., into and through other States of the United States and in the District of Columbia and there is now, and has been during the last 20 years, a constant ~urrent of trade and commerce in respondent's medicinal preparation and treatment so distributed and sold. by respondent between and among the various States of the Uruted States.

During all the time the respondent has been engaged .in the for~­ going business respondent has been, and is, in substantial c.ompetltion with other individuals firms partnerships, and corporations engaged in similar business t~ that 'of respondent, to wit: the sale and distribution of medicinal preparations and treatments for the relief nnd cure of eczema, in interstate commerce. Findings 22F.T.C.

PAR. 2. In soliciting the sale of his preparation and treatment, respondent has inserted advertisements in newspapers and periodicals of general circulation, in which advertisements certain representations were made. Among the representations made through such media are the following:

ECZEMA Also called Tetter, Salt Rheum, Prurltis, Milk Crust, Water Poison, Weeping Skin, etc.

FREE TRIAL Can be cured. Write me today and I will send you a free trial of my mild, soothing, guaranteed treatment that wlll prove it. Stops the itching and beals permanently. Send no money-just write me-a postal will do. Address DR. CANNADAY, Eczema Specialist, 172 Park Sq., Sedalia, Mo. • • • FREE TRIAL Get rid of it I Don't give up-Try a week's free test of a mild, soothing, guaranteed treatment, which for 30 years bas been giving Eczema sufferers their "First Heal Night's Rest." Write today-a postal will do. Address DR. CANNADAY, Eczema Specialist, 527 Park Sq., Sedalia, Mo. ECZEMA IS A SIGN • • • FREE TRIAL Eczema is a danger sign of trouble inside, as we see in measles, small-pox, scarlet fever, etc. For best results it SHOULD be treated 3 ways at once: by the diet, bY the blood, and lastly, treat the skin. Salves, "shots," lights, food tests, etc. are experimental. They don't remove the cause. Try a week's FREE TRIAL test, of the best outside treatment found in 30 years of experience, of treating this one disease. It is clean, mild, soothing, guaranteed. You, too, may find your "first real night's rest." Write today-a postal WILL DO. Address J. E. CANNADAY, M. D.-Eczema Specialist, 627 Park Square, Sedalia, Mo. The above.statements, together with many other similar statements appearing in respondent's advertising literature, purport to be descriptive of the remedial and curative quality of respondent's product. In all of his advertising literature, respondent represents, through statements and representations herein set out, and through statements of similar import and effect, that (1) his medicinal preparation and treatment will effect a cure of eczema in all cases; (2) his medicinal preparation and treatment will effect permanent relief from eczema in all cases; (3) his preparation and treatment will heal DR. ;r. E. CANNADAY 783 777 Findings eczema permanently in all cases; and (4) his preparation and treatment will stop the itching attending the ailment of eczema in all cases.

PAR. 3. Respondent has further, in the course of conduct of his business, issued and distributed in interstate commerce, circulars and other literature oontaining testimonials in which statements am made by various persons to the effect that they were, or had been suffering from eczema and had been relieved or cured or completely restored to health by the use of respondent's preparation and treatment, when in truth and in fact, many of said persons had not been cured or completely restored to health. Respondent has represented that he has cured numerous persons living in various States of the United States by the use of this preparation and treatment while in truth and in fact, respondent was and is without personal knowledge as to the disease, ailment, or disorder from which said persons were or had been actually suffering, and as to the extent, if any, to which said users have benefited or have been cured by the use of respondent's preparation and treatment.

PAR. 4. The representations made by respondent, with respect to the nature and effect of his medicinal preparation and treatment when used, are grossly exaggerated, false, misleading, and untme. In truth and in fact, respondent's preparation and treatment advertised and represented by him as a cure in all cases will not cure eczema in all cases; nor will said preparation and treatment give permanent relief from eczema in all cases; nor will said product, when applied and administered according to respondent's directions, heal eczema permanently in all cases. In truth and in fact respondent's preparation and treatment is not effective in certain cases of eczema and will not in many cases of eczema, stop the itching attending said ailment.

PAR. 5. Each and all of the false and misleading statements and misrepresentations made by respondent in designating and describing the remedial and curative quality of his medicinal preparation and treatment, as hereinabove set forth, in his advertising in newspapers, magazines, booklets, pamphlets, testimonials, and other advertising literature, in offering for sale and selling his medicinal preparation and treatment was, and is, calculated to, and had, and now has, a tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all of said representations are true. Further, as a direct consequence of the mistaken and erroneous beliefs, induced by the advertisements and misrepresentations of respondent, as hereinabove detailed, a number of the consuming public purchased a substantial volume of respondent's medicinal preparation and treatment with the result that trade Order 22F.T.C.

has been unfairly diverted to respondent from individuals, firms, and corporations likewise engaged in the business of selling medicinal preparations and treatments intended and sold for the purpose of treating eczema, and who truthfully advertise their preparations and treatments. As a result thereof, substantial injury has been, and is now being done, by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia.

CONCLUSION The practices of the respondent, under the conditions and circumstances set forth 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 by the Commission upon the complaint issued on May 19, 1936, and served on May 21, 1936, the answer of respondent filed on June 13, 1936, admitting all the material allegations to be true, and waiving further proceedings, 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 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 tho time within which answer may be filed by said respondent be and the same is hereby extended from June 10, 1936, to June 13, 1936;

It is further ordered, That respondent, Dr. J. E. Cannaday, an individual, his agents, servants, representatives, and employees, in connection with the sale, or offering for sale, in interstate commerce of a medicinal preparation and treatment for the relief or cure of eczema, forthwith cease and desist from:

Representing, directly or by inference, through testimonials, contracts, advertisements, or through any other means whatever, 1. That his medicinal preparation and treatment will effect a cure of eczema in all cases ;

2. That his medicinal preparation and treatment will effect permanent relief from eczema in all cases;

3. That his medicinal preparation and treatment will heal eczema. permanently in all cases;

DR. J". E. CANNADAY 785 777 Order 4. That his medicinal preparation and treatment will stop the itching attending the ailment of eczema in all cases. It is further ordered, That the respondent, Dr. J. E. Cannaday, shall within 30 days from the date of service upon him of a copy of this order, file with the Commission a report in writing, setting forth the manner and form in which he is complying and has complied with the order herein set forth.

Syllabus 22F.T.C.