Zellers Labouatouies

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IN THE MATTER OF E. G. ZELLERS AND M. W. ZELLERS, TRADING AS ZELLERS LABORATORIES {~O~IPL:\INT, l<'INDINGS, AND ORIJI:m JN REGARD TO THE ALLEGI<m VIOLATION OF SP~C. i'i OF AN AC'T Olt' CONGRESS APPROVED SEPT. 26, 1914 Doekct f835. Complai11t, June 5, 1986-Deotsion, Apr. 6, 193"1 Where a firm engaged in the sale and distribution of poultry medicines and remedies,. including their "Zellers Kamala Nicotine Tabs," "Zellers Fowl. Tone Formula No.1," "Zellers Fowl Tone'Forinula No.2," and "Carbo-Zel Tablets," in substantial competition with others engaged in the manufacture and sale of similar and like commodities used for the same or similar purposes- Represented, In advertising their aforesaid four preparations, that said products, as the case might be, constituted effective remedies or treatments for round and tape worms and Internal parasites in fowls, and an effective remedy and agency for the removal of all such parasites, and effective remedies and treatments for intestinal fiu and various other conditions and ailments in turkeys and irritations caused by worms in fowls, and constituted perfect and Ideal antiseptics for fowls, nnd would preclude infestation by worms, or were scientifically prepared successfully to combat the ravages of intestinal worms in fowls, and to counteract toxic poisons created by their presence, and constituted a worm preventive, facts being such representations and statements were false and misleading and said various preparations did not have the qualities or properties thus represented, and would not accomplish such results;

With tendency and capacity to deceive and mislead substantial portions of purchasing public Into the erroneous belief that such representations were true, and with the result that consuming public, as a direct consequence of mistaken and erroneous beliefs thus.. engendered, purchased substantial volume of their commodities and trade was thereby unfairly diverted to them from competitors engaged in sale of products of same kind and nature, and who truthfully advertise and represent their character and quality and results to be obtained from use tl1ereof; to the substantial injury of competition in commerce:

Ileld, That such nets and prn<"tices were to the prejudice of the public aml competitors and constituted unfair methods of competition. Before Jlr. lV. lV. Sheppard, trial examiner. Air. John Daney for the Commission.

Complaint Pursuant to the provisions of an Act of Congress appl·oyed September 26, 1914, entitled "An .Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," t.he Federal Trade Commission, having reason to believe that E. G. ~l1ers and M. ,V. Zellers, copartners, doing business under the trade ZELLERS LABORATORIES 949 948 Complaint name Zellers Laboratories, hereinafter referred to as respondentst have been and now are, using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to the 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:

PARAGRAPH 1. E. G. Zellers and M. ·w. Z::lllet·s, copartners, doing business under the trade name Zellers Laboratories, with their principal place of business at Orrton Avenue and Noble Street, Reading, Pa., are now and for several years last past have been engaged in the sale and distribution of poultry products, consisting of medicines and remedies for various diseases in fowls, in commerce between and among the various States of the United States and in the course of the sale and distribution of the aforesaid commodities cause the same to be transported to the purchasers thereof from their place of business in the city of Reading, State of Pennsylvania, into and through the various States of the United States other than the State o-f Pennsy lvania.

PAR. 2. There are among the competitors of respondents, individuals, firms, partnerships, and corporations engaged in the manufacture and sale of similar and Ilke commodities, or commodities to be used for the same and similar purposes, who offer for sale and sell their said products· to purchasers located in the various States of the United States, and who cause their said products when sold to be transported to purchasers thereof located in the various States of the United States.

PAR. 3. There are, among the poultry products offered for sale and sold by respondents as aforesaid, products sold under the trade names "Zellers Kamala Nicotine Tabs," "Zellers Fowl Tone Formula No. 1," "Zellers Fowl Tone Formula No.2," and "Carbo-Zel Tablets." In the course of the offering for sale and sale of the poultry medicines and remedies sold under the trade names designated supra in this paragraph, the respondents have caused and cause statements and representations to be made in advertisements, pamphlets, circulars, trade magazines, and other printed matter which is published or distributed in the various States of the United States to the following effect, gist, or meaning:

(a) "Zellers Kamala Nicotiue 'labs" are an effective individual worm treatment for Round and Tape \Vorrus in chickens, turkeys and other fowls; they are a powerful and effective agency for ridding your birds of worms; they do not dissolve until they reach the gizzard, where normal grinding action releases the medicine right at the seat of the worms; the>y produce rE>snlts In less than six hours; medication is released at the very seat of the worm infestation, resulting In efficient ridding of the blrd's body of lntestlnnl parasites; unless the 950 FEDERAL TRADE COM MISSION DECISIONS Complaint 24 F.T.C. head of the Tape Worm is removed treatment will be of no avail; and the head of the worm must come out as it is the root of the Tape Worm. (b) "Zellers Fowl Tone Formula No. 1" contains the elements essential to the proper development of future layers; it is a special tonic for building up disease resistance and aiding in the quick recovery from worm infestation; it and "Carbo-Zellers Tablets" are ideal antiseptics; they wlll prevent digestive disorders; they are effective treatments for intestinal flu, coccidiosis, diarrhea, .cholera, typhoid, broo<ler pneumonia, blackhead in turkeys and irritation caused by worms.

(c) "Zellers Fowl Tone Formula No. 2" is especially recommended for flock t.treatment of worms, is scientifically prepared to combat the ravages of these small, microscopic worms, to counteract the toxic poisons they give off; it is an -excellent tonic and worm preventive.

PAR. 4. All of the representations and statements made by the respondents in the manner indicated in paragraph 3 hereof are false and misleading. "Zellers Kamala Nicotine Tabs" is not an effective treatment for all worms in chickens and other fowls, and is not an effective remedy for tape worms and worms other than round worms; it will not remove the heads of tape worms, and is not an effective remedy for such purpose. "Z9llers Fowl Tone Formula No. 1" and "Carbo-Zellers Tablets" are not effective remedies for coccidiosis and other poultry diseases designated in sub-section (b) of paragraph 3 supra, and will not produce the results represented by respondents as set forth in said paragraph. "Zellers Fowl Tone Formula No. 2" is not an effective flock treatment scientifically prepared to combat the ravages of small, microscopic worms and to counteract the toxic poison they give off; it is not a worm preventive and will not produce the results represented by respondents as described in subsection (c) of paragraph 3 supra.

PAR. 5. Each and all of the false and misleading statements and representations made by the respondents in the manner hereinabove set out, were, and are calculated to, and have had, and now have the tendency and capacity to mislead and deceive substantial portions of the purchasing public into the erroneous belief that said representations are true. As a direct consequence of the mistaken and erroneous beliefs induced thereby the consuming public has pur- ~based a substantial volume of respondents' commodities, with the result that trade has been unfairly diverted to the respondents from competitors engaged in selling commodities of the same kind and nature in cmmnerce as hereinabove set out, and who truthfully advertise and represent the character and quality, and the results to be obtained from the use of their said products. As a result thereof, a substantial injury has been and is being done by respondents to competition in commerce, as hereinabove set forth. ZELLERS LABORATORIES 951 Findings PAR. 6. The above acts and practices of respondents are to the injury and prejudice of the public and to competitors of respondents in interstate commerce 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."

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 June 5, 1936, issued, and on June 7, 1936, served, its complaint in this proceeding upon respondents, E. G. Zellers and :M. ,V, Zellers, copartners, doing business under the trade name, Zellers Laboratories, charging them 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 respondents' answer, the Commission, by order entered herein, granted respondents' motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of the complaint to be true and waiving the taking of further evidence and all intervening procedure, which substitute answer was duly filed in the office of the Commission.

Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and the substitute answer, briefs and oral arguments of counsel having been waived, and the Commission having duly considered the same and being now 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 PARACRAPII 1. The respondents, E. G. Zellers and M. W. Zellers, copartners, are doing business under the trade name of Zellers' Laboratories, having a principal place of business at Orrton Avenue and Noble Street, Reading, Pa. They are and for several years past have ~en engaged in the sale and distribution of poultry products con- Sisting of medicines and remedies for various diseases in fowls. 'Vhen sales are made, respondents cause said products to be transported from their place of business in the city of Reading, Pa., into and through various States of the United States to the purchasers thereof. Findings 24 F. T. C. PAR. 2. There are other individuals, firms, partnerships, and corporations engaged in the manufacture and sale of similar and like commodities which are used for the same and similar purposes, whooffer for sale and sell their products to purchasers located in the yarious States of the United States, and who cause their productsr when sold, to be transported to purchasers located in the various States of the United States. Respondents are engaged in substantial competition with such other individuals, firms, partnerships, and corporations in such commerce.

PAn. 3. Among the products offered for sale and sold by respondents as aforesaid, are products solei under the trade names "Zellers Kamala Nicotine Tabs," "Zellers Fowl Tone Formula No.1," "Zellers Fowl Tone Formula No.2," and "Carbo-Zel Tablets." In the course of the promotion and sale of their products under the trade names designated herein, the respondents cause statements and representations to be made in adverHsing matter which is distributed in thevarious States of the United States to the following effect, gist, or meaning:

(a) ;,Zellers Kamala Nicotine Tabs" are an effective individual worm treatment for round and tape worms in chickens, turkeys and other fowls; they area powerful and effective agency for ridding birds of worms; they do not dissolve nntll they reach the gizzard, where normal grinding action releases the medicine· right at the seat of the worms; they produce results in less than six hours; medication is released at the very seat of the worm infestation, resulting in efficient ridtllng of the bh·d's body of Intestinal parasites; unless the bead of the tape worm is removed treatment will be of no avail; and the bead of the worm must come out, as It is the root of the tape worm. (b) ''Zellers Fowl Tone Formula No. 1" contains the clements esflential to· the proper development of future layers; It Is a special tonic for building up dlllease resistance and aiding In the quick recovery from worm infestation; it and "Carbo-Zel Tablets" are ideal antiseptics; they will prevent digestive disorders; they are effective treatments for intestinal flu, coccidiosis, diarrhea, cholera, typhoid, brooder pneumonia, blarkhead in ttll'keys and Irritations caused by worms.

(c) "Zellers Fowl Tone Formula No. 2" is especially recommended for fiock treatment of worms, is scientifically prepared to combat the ravages of these small microscopic worms, to counteract the toxic poisons they give orr: it Is an excellent tonic and worm preventive.

PAR. 4. Representations anJ statements to the aforesni<l effect and meaning, ns made by the respondents in the manner indicated in paragraph 3 hereof, are false and misleading. "Zellers Kamala, Nicotine Tabs" is not an effective treatment for all worms in chick· ens and other fowls, and is not an effective remedy for tape and other worms; it will not remove the heads of tape worms and is not an effective remedy for such purpose. "Zellers Fowl Tone For- ZELLERS LABORATORIES 953 "948 Order Inula No. 1" and "Carbo-Zel Tablets" are not effective remedies :for coccidiosis and other poultry diseases designated in sub-section (b) of paragraph 3, supra, and will not produce the results represented by respondents as set forth in said paragraph. "Zellers Fowl Tone Formula No. 2" is not an effective flock treatment scientifically prepared to combat the ravages of small, microscopic worms and to -counteract the toxic poisons they give off; it is not a worm preventive nnd will not produce the results represented by respondents as set forth in sub-section (c) of paragraph 3, supra. PAR. 5. Representations and statements made by respondents to lhe effect and meaning of those set forth in paragraph 3, supra, are calculated to and do have the tendency and capacity to deceiye and mislead substantial portions of the purchasing public into the errone- QUs belief that such representations are true. As a direct consequence of their mistaken and erroneous beliefs induced thereby, the consmning public has purchased a substantial volume of respondents' commodities, with the attendant result that trade has been unfairly diverted to the respondents from competitors engaged in selling comlllodities of the same kind and nature, in commerce, as hereinabove ~et out, and who truthfully advertise and represent the character nnd quality, and the results to be obtained from the use of their said products. Substantial injury is thereby done by respondents to competition in commerce, as hereinabove set forth. CONCLUSION The aforesaid acts and practices of the respondents E. G. Zellers and M. W. Zellers, copartners doing business under the trade name, Zellers Laboratories, are to the prejudice of the public and of respondents' competitors, and constitute unfair methods of competition in ~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."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer filed herein on February 10, 1937, by respondents admitting all the material ~tllegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, and the Comtnission having made its findings as to the facts and its conclusion that said respondents have violated the provisions of an Act of Congress Order 24F. T.C..

entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," approved September 26, 1914:

It is orde·red, That the respondents, E. G. Zellers and :M. '\V. Zellers, individually and as copartners doing business under the trade name Zellers Laboratories, or under any other name, their representatives, agents and employees, in connection with the offering for sale, sale, and distribution of their poultry products now designated as "Zellers Kamala Nicotine Tabs," "Zellers Fowl Tone Formula No. 1," "Carbo· Zel Tablets" and "Zellers Fowl Tone Formula No. 2," or any other products o£ substantially the same ingredients or having the same therapeutic effect, sold under those names or any other names, do forthwith cease and desist from directly or indirectly representing: 1. That "Zellers Kamala Nicotine Tabs" is an effective remedy or treatment for round worms, tape worms, or intestinal parasites in fowls; or that it is an effective remedy and agency for the removal of all intestinal parasites in fowls.

2. That "Zeller,; Fowl Tone Formula No. 1" and "Carbo-Zel Tablets" are e:tfecti ve remedies and treatments for intestinal flu, coccidiosis, diarrhea, cholera, typhoid, brooder pneumonia, blackhead in tmkeys, and irritation caused by worms in fowls; that they are perfect and ideal antiseptics for fowls or that they will preclude worm infestation. 3. That "Zellers Fowl Tone Formula No. 2" is scientifically prepared to successfully combat the ravages of intestinal worms in fowls and that it will counteract toxic poisons created by their presence in fowls; or that it is a worm preventive.

It is further m·dered, That the repondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing, settin~ forth in detail the manner and form in which they have complied with this request.

EASTERN ART CO., ETC. 955 Syllabus