J. H. Casey Co

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IN THE MATTER OF J. H. CASEY, TRADING AS J. H. CASEY COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CO.:-JGRESS APPROVED SEPT. 26, 1014 Docket 2665. Complaint, Deo. 19, 1935-Deoision, Sept. 21, 1936 Where an indi\•idual engaged in manufacture, sale and distribution of a certain medicine or remedy under designation "Casey's Compound" ; in advertising same through pamphlets and other trade literature- (a) Represented that said product was a cure or competent treatment for rheumatism, arthritis, neuritis, and other related ailments, through such statements as "Why suffer from rheumatism, neuritis and arthritis", and had "brought lasting relief to hopeless sufferers when all other tried remedies had failed", and had "accomplished marvelous results in relieving certain forms of nrthrltls antl various other forms of rheumatic ailments, lumbago, aches and pains", facts being it had little, if any, therapeutic value in treatment of ailments mentioned and was not a proper, suitable, and efficient remedy or treatment therefor, and bad not, as claimed, accom· pllshed any "marvelous" or other beneficial results; (b) Falsely represented that said product rid the blood and system or tox:ic poisons and excess acidity and stimulated glands to normal functioning and improved the blood circulation and enabled stomach and other organs to function naturally, supplying them with nature's own tonic, etc., and that it was useful or beneficial in "treating bronchial asthma and eczema"; and (c) Referred to said product on bottles and cartons in which shipped as an "alterative", notwithstanding the fact that it was not a medirlne or trent· ment which gradually induces a change and restores healthy functions, etc.: With effect of misleading and deceiving publlc and particularly that portion thereof suffering from various diseases and ailments referred to, through creating erroneous impression and belief that by purchasing and using said product, they would be benefited or cured of surh diseases, etc., ami of inducing substantial portion of purcha!;ing public, in such erroneous and mistaken beliefs, to buy substantial quantity of said preparation, and of unfairly diverting thereby trade to him from other individuals, concerns, etc., selling similar or like products and remedies, or those designed and intended for treatment of similar diseases, etc., but honestly and truth· fully labeled and represented as to their efficiency in treu tment thereof: to the substantial injury of competition In commerce: IIeld, That such nets and practices were to the prejudice and injury of the public and competitors and constituted unfair methods of competition. Defore Mr. lV. lV. Sheppard, trial examiner. Mr. John lV. II illd1·op for the Commission. Mr. Frederic!.: II. Dral.:e, of Portland, Oreg., for respondent. Cm.rrLAINT Pursuant to the provisions of an Act of Congress, appr:)Yed September 26, 1914, entitled "An Act to create a Federal Trade Com· J, H. CASEY CO. 477 476 Complaint mission, to define its powers and duties, and for other purposes,'~ the Federal Trade Commission having reason to believe that J. H. Casey, an individual trading as J. H. Casey Company, has been or 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 to the public interest, the Commission hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. The respondent, J. H. Casey, is an individual trad· ing and doing business as J. H. Casey Company, w~th his principal place of business located at Portland, Oreg., and is engaged in the 111manufacture, sale, and distribution in interstate commerce of a certain product, medicine, or reme(ly known as "Casey's Compound", which he advertises in manner and form as hereinafter set out, as a cure, remedy, and treatment for rheumatism, arthritis, neuritis, and other related ailments, and which "Casey's Compound" when sold the respondent ships or causes to be shipped from his place of business in Portland, Oreg., to purchasers thereof located in States of the United States other than the State of Oregon. Respondent in the course and ~conduct of his said business was and is in competition with other ~ndividuals, firms, partnerships, and corporations likewise engaged ln the manufacture, sale, and distribution in interstate commercl3 of Products intended for similar uses.

PAn. 2. In the course and conduct of his said business, the said rc· spondent, J. H. Casey, in soliciting the sale and selling of his said P.product, to wit, Casey's Compound, in interstate commerce, adv~r­ tt.sed same by means of pamphlets which he mailed and othenn~e dcdislributed0111pound inwasinterstatedescribedcommercerepresented' in whichadvertised,his said product,and designate.Casey's 'a.s follows, ' to wit: "'Vhy suffer from 'rheumatism, neuritis, arthn-. hs", and "Casey's Compound has brought lasting relief to hopeless sufferers when all other tried remedies had failed"; thereby implying and endeavorin..., to create the impression in the minds of those suffering from said diseases that his said product, Casey's Compound, ~as a good, proper, and efficient treatment or remedy for rheuJ~la­ hsm, neuritis and arthritis and that it has brought and will brmg r el'lef to sufferers' therefrom' when aU other remedies have f UJ'l ed ' '"hen in truth and in fact respondent's said product, Casey's Com· Pou?d, has little if any therapeutic value in the treatment. of rh~u­ lllatism, neuritis and arthritis and has not "brought lastmg rehef to h ' · · h 0Peless sufferers when all other tried remeches a d f a1'l e d" · In advertising and representin(Y its said product by means of the Said pamphlets circulated in int~rstate commerce as aforesaid, the Complaint 23 F. T. C. respondent made and makes the following statements and representations of and concerning his said product, Casey's Compound, as follows: "Rids the blood and system of toxic poisons, excess acid.ity, and stimulates the gland.s to normal functioning which then allows nature to build and keep up a healthy body"; "It (meaning his said product, Casey's Compound) improves the blood and its circulation, enabling the stomach, liver and kidneys to function naturally, supplying every internal organ with nature's own tonic"; "Not only stops an excess of uric acid from forming but aids in its removal"; and "Useful in treating bronchial asthma and eczema"; when in truth and in fact respondent's said product does not rid the blood und system of toxic poisons or excess acidity, nor does it stimulate the glands to normal functionmg thereby allowing nature to build and keep up a healthy body, nor does it improve the blood and its circulation, thereby enabling the liver, kidneys, and stomach to function naturally, nor does it supply every internal organ with nature's own product, nor does it stop an excess of uric acid from forming, nor aid in its removal, and it is not useful nor has it much, if any, therapeutic value in the treatment of bronchial asthma and eczema. In a certain other and later pamphlet which is distributed by respondent in interstate commerce, the following statements and repre· sentations are made of and concerning respondent's said product, to wit, Casey's Compound: ''Casey's Compound has accomplished marvelous results in relieving certain forms of arthritis and variOltS other rheumatic ailments, lumbago aches and pains", when in truth and in fact neither "marvelous" nor any other beneficial results have accrued to any person or persons affiicted with these ailments or dis· eases by the usc of respondent's said product for arthritis, rheumatic ailments, lumbago aches and pains, anJ. respondent's said product has little if any therapeutic value in the treatment thereof. The bottles and cartons in which said product was packed and shippell by respondent in interstate commerce, referred to said prorl· net as "Casey's Compound, An Alterative"; meaning thereby, in the use of the word "Alterative", a medicine or treatment which gradually induces a change and restores healthy functions without sensible evacuations, when in truth and in fact respondent's said product is not an alterative.

PAn. 3. The fot·egoing misrepresentations and rxaggerations in ad· vertisements published and distributed by respondent in manner and form as aforesaid in interstate commerce are calculated to and do have a tendency and capacity to and do mislead and deceive the public, and particularly that portion thereof which is suffering from the various diseases and ailments hereinbefore set out, by creating in the J. H. CASEY CO. 479 4i6 Findings ~inds of the public, and especially that portion of the public suffer- Ing with said diseases, the erroneous impression and belief that by purchasi11g and using respondent's said product, to wit, Casey's Compound, they will be benefitted or cured of said diseases and ail- ~ents; and also ha \'C the tendency and capacity to and do unfairly drvert trade to respondent from other individuals, corporations, associations,• • and firms selling and distributing'0 in interstate commerce Similar or like products and remedies to that of respondent's Casey's Compound, but which are honestly and truthfully advertised and labelled by such competitors.

PAR. 4. The acts and things done as herein alleged by respondent are to the prejudice of the public and the competitors of respondent, and constitute unfair methods of competition in commerce, within the intent and meaning of Section 5 of an Act of Congress entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26. 1914. REPORT, FINDINGS AS TO THE FACTs, AND Onder 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 on the 19th day of December 1935, issued and served its complaint in this proceeding upon the respondent, J. li. Casey, trading as J. H. Casey Company, 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, and the filing of respondent's answer thereto, testimony and evidence in support of the allegations of said complaint were introduced by John W. llilldrop, attorney for the Commission, before W. ·w. Sheppard, an examiner of the Commission theretofore duly designated by it, and in opposition to the allegations of the complaint by Frederick li. Drake, attorney for the respondent; and said testimony an.d ~vi­ <lence were duly recorded and filed in the office of the Commtsswn. '!'hereafter the proceeding regularly came on for final hearing ?efore the Commission on the said complaint, the answer thereto, testimony ~nd evidence, and brief in support of the complaint (respondent havlngl . filed no brief and having'0 waived oral ar!!ument);= and the Com-• d.ntssion having duly considered the same, and being now fully advtse In tl~e premises, finds that this proceeding is in the it~terest of ~ho Puhhc and makes this its findin(Y's as to the facts and 1ts conclusion<lr o awn therefrom: 480 FEDERAL TRADE C01\IUISSION DECISIONS Findings 23 F. T. C. FINDINGS AS TO THE FACTS PARAGRAPH 1. The responde:'nt, J. H. Casey, is an individual, trading and doing business as J. H. Casey Company, with his principal place of business located at Portland, Oreg. He is engaged in the manufacture, sale, and distribution, in interstate commerce, of a certain product, medicine or remedy known as "Casey's Compound", which he advertises, as hereinafter set out, as a cure, remedy, and treatment for rheumatism, arthritis, neuritis, and other related ailments. 'When orders are received for said "Casey's Compound", the respondent ships, or cause:'s it to be shipped from his place of business in Portland, Oreg., to the respective purchasers thereof located in States of the United States other than the State of Oregon. Respondent, in the course and cond11ct of his said business was, and is, engaged in substantial competition with other individuals, firms, partnerships, and corporations likewise engaged in the manufacture, sale and distribution of products intended for similar usc, in commerce among and between the various States of the United States. PAR. 2. The respondent, J. H. Casey, is not a physician, has never studied medicine and does not know what constitutes a proper and suitable treatment or remedy for various ailments and diseases of the human body. He is, therefore, not competent to make a diagnosis. and is not competent to prescribe for various ills and diseases, such as rheumatism, arthritis, neuritis, and other related ills. PAR. 3. In the course and conduct of his business, the said respondent, J. H. Casey, in soliciting the sale of, and in selling his said product, to wit: "Casey's Compound," in interstate commerce, advertises same by means of pamphlets and other advertising literature which he mailed and still mails, and otherwise has distributed and still distributes in interstate commerce, in which he makes the following statements:

Why sutter from rheumatl:,lm, neuritis, and arthritis? and:

Calley's Compound has brought lasting relief to hopeless sul'ferers when all other tried remedies had failed.

The purport, tenor, meaning, and implication of the foregoing words and phraseology in the said advertisements of the respondent are that the said product was, and is, a good, proper and efficient treatment or remedy for rheumatism, neuritis, and arthritis. In truth and in fact, respondent's said product "Casey's Compound" has little, if an~, therapeutic value in the treatment of rheumatism, neuritis, and arthritis, and is not a proper, suitable, and efficient treatment or remedy for said diseases. · J. H. CASEY CO. 481 476 Findings PAR. 4. ln advertising and representing his said product "Casey's Compound'' by means of the said pamphlets circulated in interstate ~commerce as aforesaid, the respondent, J. H. Casey, has made, and still 1S making, the following other statements and representations of and concerning his said product:

• • • rid the blood and system of toxic poisons, excess acidity, stimulate the glands to normal functioning which then allows nature to build and keep a healthy body. It (meaning his said prouuct "Casey's Compound:') improves the blood and its circulation, enabling the stomach, liver and kidneys to function normally, supplying every internal organ with nature's own tonic. Not only stops an excess of uric acid from forming, but aids in its removal. Useful In treating bronchial asthma and eczema.

The. respondent has also made and continues to make the following representations concerning his said product, "Casey's Compound": Useful In treating bronchial asthma and eczema. The statements with reference to the efficacy of "Casey's Compound," as. set out in this paragraph, serve as representations that the use of said product will rid the system of the user of toxic poison and excess acidity; that it will aid the user's glands to function naturally and enable nature to build up a healthy body; that its use will improve the blood and its circulation and thereby enable the stomach, liver ~nd kidneys to function naturally; that ~aid product supplies every ~nternal organ of the human body with nature's own products; that lt Prevents an excess of uric acid from forming and aids in its removal; that it is useful and has therapeutic value in the treatment of bronchial asthma and eczema; and that it is a fit, suitable, proper~ a.nd efficient remedy or treatment for the maladies and diseases menhoned in this paragraph.

~he use of said "Casey's Compound" does not rid the system of any t?~Ic poison or excess acidity and its use does not aid glands to func- ~Ion naturally. The use of "Casey's Compound" does not improve the lood and its circulation so as to enable the stomach, liver, and kid- ~Ys ~of?nction naturally where said organs have not been pr~viously · nctiOmng naturally. Said product does not supply any mtcrnal or?an with nature's own product and it does not prevent an excess of ~ttc acid or aid in the removal of said acid. It is not useful and it as no therapeutic value in the treatment of bronchial asthma and eczema and it is not a fit, suitable, proper, or efficient remedy or treat- ~ent for the various maladies or diseases listed herein. PA.a. 5. In the course and conduct of his said business, the respondent J · d · d" t . ' · II. Casey in a certain other pamphlet which was, an Is, ISl'Ibnted by resp~ndent in interstate commerce, made and makes the 482 FEDERAL TRADE CO:.\IIIIISSION DECISIONS Findings ::!3F.T.C. following statements and representations of and concerning "Casey's Compound":

Casey's Compound has accomplished 1\Iarvelous results in relieving certain forms of arthritis and various other rheumatic ailments, lumbago aches and pains. In truth and in fact, neither "marvelous" nor any other beneficial results have accrued to any person or persons affiicted with various forms of arthritis, rheumatism or lumbago aches and pains through the use of "Casey's Compound" and said product is not a fit, suitable, proper or efficient remedy or treatment for said diseases or conditions. PAn. 6. On the bottles and cartons in which said product of respondent was and is packed and shipped by respondent in interstate ~commerce, respondent heretofore has refened to and still refers to his said product "Casey's Compound" as "an alterative," meaning thereby that his said product is a medicine or treatment which gradually induces a change, and restores healthy functions without sensible {lvacuations, when in truth aml in fact, respondent's said product "Casey's Compound" is not, nor has it ever been, an alterative. PAR. 7. Respondent's said remedy, "Casey's Compound," is composed of the following ingredients:

Iodide of Potassium Sarsaparilla Oil of Wintcrgrem 011 of Anise Licorice Sassafras and simple syrup None of said ingredients, either used separately or in combination with each other, or all taken together as a combination, have the therapeutic value claimed and represented by the respondent in his advertising literature, as herein set out, and said ingredients, as above set out, d.o not constitute a fit, proper, or efficient treatment or remedy for any of the diseases or maladies of the human bo1ly claimed and represented by the respondent to be benefited or entirely relieved or cured through the use of "Casey's Compound."

PAR. 8. The foregoing misrepresentations and exaggerations, in ad· vertisements published and distributed by respondent in manner and form as aforesaid, in distributing his product in interstate commerce, are calculated to, and do, have a tendency and capacity to, and do, mislead and deceive the public, and particularly that portion thereof which is suffering from the various diseases and ailments hereinbef~re set out, by creating in their minds the erroneous impression and behef that by purchasing and using respondent's said product, "Case~'s Compound," they will be benefited or cured of said diseases and ail· J. H. CASEY CO. 483 476 Order rnents. A substantial portion of the purchasing public, acting on said erroneous and mistaken beliefs, induced by the representations of the respondent us aforesaid, have purchased a substantial quantity of respondent's product, "Casey's Compound." As a result thereof, trade has been unfairly diverted to the respondent from other individuals, corporations, associations, and firms selling and distributing, in comlllerce a.s hereinabove set out, similar or like products and remedies, or products and remedies designrd and intended for the treatment of similar diseases, ailments, and conditions of the human body, but Which are honestly and truthfully ad,·ertised, labeled, and represented as to their efficacy in the treatment of said diseases, ailments, and conditions. As a cohsequence thereof, substantial injury has been, and is now being, done by respondent to competition in interstate commerce. CONCLUSION The aforesaid acts and practices of respondent, J. H. Casey, trading as J. H. Casey Company, are to the prejudice of the public and of l'~spondent's competitors, and constitute unfair methods of competithou in commerce \Within the intent and meaning of Section 5 of an Act of Congress apprond September 2G, 1!>14, entitled "An Act to <.:reate a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST .T~is proceeding having been heard by the Federal Trade Comn1lsston upon the complaint of the Commission, the answer of respondent, testimony and other evidence taken before "\V. W: Shep- ~.ar?, .an examiner of the Commission .theretofo~e duly ~es1gnate~ .Y It, m support of the allegations of said complamt, and m opposition thereto, brief in support of complaint filed herein (respond~nt not. having filed brief in opposition to the complaint and_ ha,:mg ~alved oral argument) and the Commission having made Its findl~gs as to the facts and its conclusion that the said respondent has ~lolated the provisions of an Act of Concrress approved September "'6• 1914, entitled "An Act to create a F:deral Trade Commission, to define its powers and duties and for other purposes." anit zs· orde•·ed, That the respondent,' J. H. Casey, as an ll1· d'IVl'd uai t d trading as J. H. Casey Company, or trading under any other tade name or otherwise his representatives, agents, servants, and ern I ' ' d d. · P oyce.s, in connection with the offerincr for sale, sale, an Jstn-but' "' l'' ton of the product or remedy known as "Casey's Compoum ", or any Product. of substantially the same composition and ingredients 780a;;'"-2D--vol. 23-33 FEDERAL TRADE COl\11\IISSION DECISIONS484 Order 23 F. '1'.0. sold under the name "Casey's Compound" or any other name, in interstate commerce, or in the District of Columbia, do cease and desist from representing through pamphlets, circulars, advertise· ments in newspapers, journals, magazines, or other publications or periodicals, radio broadcasts, or any other form of advertising, or in any other form or manner whatever:

(1) That said product is a cure, remedy or competent treatment for rheumatism, arthritis, neuritis, and other related ailments, or that said product has any therapeutic value in the treatment of said diseases and ailments;

(2) That said product has brought lasting relief to hopeless sufferers when all other tried remedies had failed; (3) That said product rids the blood and system of toxic poisonr excess acidity and stimulates the glands to normal functioning; that it improves the blood in its circulation and enables the stomach, liver, and kidneys to function naturally; that it supplies every inter· nal organ with nature's own tonic; that it stops an excess of uric acid from forming and aids in its removal; and that it is useful or beneficial in treating bronchial asthma and eczema; ( 4) That said product has accomplished marvelous results in re· lieving certain forms of arthritis and various other rheumatic ailments and lumbago aches and pains;

(5) That said product is an alterative;

(6) That persons suffering from any of the diseases, ailmenta and maladies, hereinabove numerated, will be benefited or afforded any relief by the use of said product as a remedy and treatment for said diseases, ailments and maladies.

It is fwrther ordered, That the respondent shall, within 60 days after service upon it of this order, file with the Commission a report m ~writing setting forth in detail the manner and form in which it has complied with this order.

ATLAS PRODUCTS CO. 485 Complaint