Glade Candy Co

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IN Tile MATTER OF GLENN LABORATORIES, INC.

COMI'L.\I:-;T, FINDINGS, AND ORDER IN REGARD TO Tile ALLEGED VIOLATION 01•' SEC. 15 OF AN ACT 01!' CONGUESS APPROVED SEP'.r. 26, 1914 Docket .1061. Complaint, Feb. 16, 1937-Decision, Jzme 29, 1937 'Vhere n corporation engaged In manufacture, sale and distribution of "Dr. Thomas' H 157" obesity treatment, composed of several Ingredients, includ· lug, undisclosed, as only one effective in ridding body of fat, powerful aml dangerous d1·ug desiccated thyroid, which (1) Is indicated only in relatively rare cases of obesity due to deficiency of thyroid gland, (2) is dangerous to use, in quantities contained In said preparation and lu dosage suggested, in all other cases witlwut examination and udvice and direction of u com· petent physldan, (3) may not be taken by some people in their natural and normal state without harmful results, ( 4) Is llarmful to take, present cer· tain conditions or uefects or abnormalities, and (5) possibility of use o! which, In n given case, without harmrul results, is contlngeut upon thorough exam ina Uon by compet<>ut physician, or experimental use by person in question unuer meuicnl supervision, or both- Represented, in advertising aforesaiu preparation and treatment in newspapers and periodicals of general circulation, and by radio broadcasts, and in pamphlets and by other methods, uircctly or by implication, tllat aforesnlu product wns new and coustitutC'd a simple new method, use of which converted food into fuel and energy, and tllut it could he talu'n safely by members o! the laity without direction from a physielan, and that it was snfe, harmless unu <>fllcacfous in all types or clas~('S of obesity, without disd01;lng presence, as hereinbefore set forth, o! said desiccated thyroid and implications of snell presence in quantity und uosage Jm·olved in vn·parntion in question, and notwithstanding fact that such thyroid has been UHed by physicians in type of obesity due to dl'fective thyrcid glandfl for many years, use thereof does not always convert food into !uel and energy, or either of them, Inability of the laity, unskllled In medical science anu necessarily dPp<>ndrnt, in munY cases, when seeking a remedy tor exce:>s weight, for their information as to what treatment, remeuy, method or system they may safely purchase, take or use, upon statements and repreilentations, larg<>ly, of makers and sellers thereof, to tell whether or not their obesity Is due to defielent thyroid glnnd, whkh may only be ascertalnrd by examination ot competent physician, and notwithstanding !nets lmpllclt In nfor<>sald nondisclosure; With tt-ndency and capacity to Induce members of the public and pmsprcti\'e purehasers to form the mlstukcn and erroneou~;~ b<>llef that such representations were true, and that said product was a snfe, barmlt>ss and competent rrmr1ly or trrntment for nil classes and types ot obesity, and to tnuuce them to purc·huse said p1·eparatlon In preference to, and to the exclusion of, preparations, systems, methods or other mPnns of treatment on'ereu tor sale In commerce by competitors thus engagt>d, and with result o! unfairly divert- Ing thereby trade to It from Its sn ld competitors; to the Injury of competititlll ln commerce:

GLENN LABORATORIES, INC. 303 302 Complaint lield, That such acts and practices were to the prejudice of the public aurt competitors and constituted unfair methods of competition. 111r. E. J. llornibroolc for the Commission. CmtPLAINT Pursuant to the provisions of an Act of Congress, approved Sept~mber 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Fedeml Trade Commission, having reason to believe that Glenn Laboratories, Inc., a corporation, has been and now is using unfair Inethods of competition in commerce, as "commerce" is defined in ~ni.d act, and it appearing to said Commission that a proceeding by It Ill respect thereof would be in the public interest, hereby issues its complaint and states its charges in that respect as follows: .• PARAGRAPH 1. Respondent, Glenn Laboratories, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located at 287 W. 127th Street, New York City, in said State.

Respondent corporation is now and for several years last past has b~cn engaged, among other things, in the manufacture, sale, and chstribution of a proprietary remedy or medicine which it calls "Dr. 'I'homas' 1} 157" for use in the treatment of obesity. Respondent ships, or causes to be shipped or transported, its said product, when sold, from its place of business in the State of New York to purchasers thereof located at points in various States of the United States other than the State of New York. Respondent sells its said prod- Uct to wholesale and retail drugf,rists. Said wholesale druggists sell and ship the same to retail druggists. Retail druggists in various States of the United States sell the same to their customers, who are generaHy members of the laity. There is now, and has been during aU the times herein mentioned, a constant current of trade in such Product so sold by the respondent in commerce between and among the various States of the United States and in the District of Columbia.

PAn, 2. In the course and conduct of its said business respondent ~rporation is now nnrl has been during all the times herein menho~ed, engaged in substantial competition with various other corporations, copartners, firms, nnd individuals, selling and offering for sa.le obesity remedies or like or otherwise competitive products, to Wit: Pl'<'parations, systems, methoflfl, or other means of treatment for obe>sity or reduction of weight of the human body. 15~12tm--39----22 304 FEDERAL TRADE COl\Il\IISSION DECISIONS Complaint 25 F. T. C. PAR. 3. Respondent in aid of so offering for sale and selling said "Dr. Thomas' :ij 157," as aforesaid, has advertised the same in newspapers, magazines, periodicals of general circulation, by means of radio broadcasts and in pamphlets, and in, by and through other advertising media. In, by and through each and all of the advertising media above enumerated, respondent represents, expressly or by implication:

A. That said product is new;

B. That its use constitutes a simple new method; C. That the use of said product converts food into fuel and energy; D. That said product can be safely taken by members of the laity without the advice and direction of a physician; E. That said product is safe, harmless, and efficacious in all types of classes of obesity.

Typical of its said advertisements are the following which are caused to be 1mblishe1l by respondent in newspapers in cities and to,vns in various States of the United States where f:aicl product is handled by d!'uggists:

NO 1\IOHE UGLY J•'AT Pouuds of ugly fat mdt away lis if Liy uut;;:c! .1\o ;;t;trl'atiou did or slreuuous exercise! F.ut os much as you want-eYcrything you like within reason! .Away gors that hideous fl!:-sh! New Beauty-new health-for you! n 157 is 11 Doctor's Jn·rscription! Simply take one cnp;;ule ufler each nwal. Get ll bottle of Dr. 'l'l1omas' I~ 1m nt your drug store nnd begin taking It TODAY. Two si7.cs $1 and $2.ri0. GuarantcPd not to contain dcnltrophcnol. TII<::.\IE:.\1- BEU: HESfJLTS Gl'ATIANTI<mll Oil l\f0:-\1-:Y Imli'UJ'I:DF.D! Sold at Grant Drug Co., Morgan Drug Co., Tarrant Drug Co., L. 1'. Wright Drug Co., und ull other good drug stores.

If everything you cut s<>ems to turn to fat, the <"hann•s nre your f'ystem Is lucking Jn natural ghmdulur substance "llich nature provides to control the fat making process. lustrud of fat turning into energy, It remains unused. However, through 11 New York Doctor's presrription, you can proYitle this nutural regulating substance.

PAn. 4. Dr. Thoma~' 11 157 is a product made of several ingredients. Its only ingre1client "hidt is effectual in riduing human bodies of portions of fat or other body tissue or weight is desiccated thyroid. The re1lncing c!fPct produced by the use of "Dr. Thomas' 1~ 157" is the same us the dlt>d pro1luced by taking an er]IIal amount of desiccatt>1l thyroid. "Dr. Thomas' I; 1..>7" contains % gmin of dt>siccat.cd thyroid. It is put up in cnpsulPs and is to be taken thrco times daily orally-amounting to 1% grains of desiccated thyroid 1wr day.

Dt>siccatcd thyroid i~ tn:Hlc from the thyroid glands of domestic animals. It is a powedul and dangerous drug. GLENN LABORATORIES, INC. 305 ('omplnint There are persons whose bodies in their natural and normal state are so constituted that they may not take or use thyroid without hat:mf~l resuHs to their bodies. As to any person, the only way in Which It may be ascertained .whether or not such person may take or ~se thyroid without harmful result to the body, is through examination by a competent physician or by experimental use by such person Under medical supervision, or by both such methods combined. Only by the same means may it be ascertained in how large a c1uantity thyroid may be taken or used by such person without harmful results. There are conditions of the human body which make it harmful t~ ~nke or use thyroid. Among these is pregnancy. Other such conditions are defects, or abnormalities of the heart or kidneys. Any defect or abnormality of the body is apt to make the taking or use of thyroid harmful to the user.

Only by examination made by a competent physician may it be ascertained whether or not the body of such person has any such condition, defect or abnormality which makes it harmful for such person to take oz· use thyroid.

Obesity is generally caused from over-eating but it may be the l·esult of more than one cause. One of the causes is a deficient or abnormally active thyroid gland. Deficiency of thyroid glands causes obesity or abnormal excess fat in only the rare and exceptional cases. In a large majority of the total number of such cases the persons affected do not have deficient thyrt>id glands and such obesity or abnormal excess \veight is the result of a cause or causes other than deficient thyroid glands. Only in cases of obesity due to deficiency of thyroid glands is the use of desiccated thyroid indicated. In all other• cuscs it is dan(l'erousI'> for a person to use thyroid in the quantities contained in "Dr. Thomas' ij 157" without an ~;examination and the advice and direction of a competent physician. The laity cannot tell whether or not obesity is dne to a deficient thyroid gland. This can only be ascertained by the examination of a competent physician. P.\n. 5. Tlwre are many persons in and throughout the several States of the Unit"d States and the District of Columbia who are seeking some safe and dependable means whereby they may quickly, easily, certainly, and permanently remove from their bodies obesity or abnormal excess weight or other weight or flesh. . Such persons are unskilled in medical science and depend for their Information as to what treatment, remedy, method, or system they lllay safely purchase, take or usc, largely upon statements and represelltations of the makers and sellers thereof. PAn. G. Respondent's said advertising described in paragraph 3 above is false, misl"ading, and dcceptiYe in that: 306 FEDERAL TRADE C01\11\IISSION DECISIONS Complaint 251!'. T. C. 1. Desiccated thyroid has been used by physicians in the. type of obesity due to defective thyroid gland for many years aml is not new;

2. The use of desiccated thyroid does not always convert food into fuel and energy or either of them;

3. In that respondent fails to disclose that: (a) Dr. Thomas' 11 157 contains desiccated thyroid in quantities such as to make it a powerful and dangerous mrdicine; (b) That it is only suitable as a medicine for obesity in the cases of Jeficiency of the thyroid gland and that these cases are rare and exceptional and can only be diagnosed as such by a competent physician;

(c) That medical science and physicians justify the use of thyroid as a treatment for obesity or excess weight only in cases where obesity or excess abnormal fat is caused by deficiency of thyroid gland and that competent physicians prescribe its use only in such cases; (d) That in cases of obesity or abnormal fat not caused by deficiency of thyroid gland the use of thyroid is not indicated and its use therein may be and is likely to be harmful to the health of the user;

(e) That many persons are so constituted that they may not use Dr. Thomas' 11 157 with safety to physical health; (f) That respondent's preparation, Dr. Thomas' :ij 157, is one which can not be used with safety to physical health except under medical prescription and advice.

PAR. 7. Said statements and representations so made by respondent and said failures to disclose have the tendency and capacity to induce the members of the public and prospective purchasers to form the mistaken and erroneous belief that said representations as set out in paragraph 3 are true and that said product is a safe, harmless and competent remedy or treatment for all classes and types of obesity and into the purchase of Dr. Thomas' :ij 157 in preference to and to the exclusion of preparations, systems, methods or other means of treatment being offered for sale in said commerce by said competitors of respondent as hereinabove alleged. Thereby trade is unfairly diverted to respondent from its said competitors to the injury of comp<'tition in commerce among and between the various States of the United States and to the injury of the public. Pt.n. 8. The above alleged acts and practices are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition within the intent and meaning of Section 5 of an Act of Congress, entitled "An Act to create a Federal Trade GLENN LADOUATORIES, INC. 307 302 Findings Commission, to define its powers and duties, and for other purposes," approved September 26, 1914.

UEPOHT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled " ..\n Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," the Federal Trade Commission, on the loth day of February 1!>37, issued, and on February 18, 1937, served its complaint in this proceeding ~lpon respondent, Glenn Laboratories, Inc., a corporation, charging It with the usc 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, ihe Commission, by order entered herein, granted respondent's 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 other intervening Procedure, which substitute answer was duly filed in the ofiice of the Commission. Thereafter, this proceeding regularly came on for final lwariug before the Commission oil the said complaint and the substitute answer, briefs and oral arguments o£ counsel having been Waived, and the Commission having duly considered the same and ?cing now duly 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 . PAnAnnAI'II 1. UPspondent, Glenn Laboratories, Inc., is a c.orporation, organized, existing, and doing business under and by vutue of the laws of the State of New York, with its principal office and place of business located at 287 West 127th Street, New York City, in said State.

Respondent corporation is now and, for. several years last past, has been rno-ao-pd amono- other things, in the manufacture, sale, an<} di.stributi'o~ of a pro~·ietary remedy or medicine which it desigllates and calls "Dr. Thomas' I; 157" and is for use in the treatment ?f obesity. Respondent ships, or causes to be shipped or transported, Its said product, when so sold, from its place of business in the State of New York to purchasers thereof located at points in various Stat('s of the Unitl'fl States other than in the State of New York. Uespondent sells its said product to whole~ale and retail druggists. Said wholesale druo-o-ists sell and shir> the same to rrtail druggists. """"

308 FEDERAL TRADE CO:i\I1USSION DECISIONS Findings 251-'.T.C. Such retail druggists in various States of the United States sell the same to their customers, who are usually members of the laity. There is now and has been during all the times herein mentioned, a constant current of trade in such product so sold by the respondent in commerce between and among the various States of the United States and in the District of Columbia.

PAn: 2. In the course and conduct of its said business respondent corporation is now and during all of the times herein mentioned engaged in substantial competition with various other corporations, copartnerships, firms, and individuals, selling and offering for sale, obesity remedies of like or otherwise competitive products, to wit: preparations, systems, methods, or other means of treatment for obesity or reduction of weight from the human body. PAR. 3. Respondent in aid of so offering and selling "Dr. Thomas' 1; 157" as aforesaid, advertised the same in newspapers, magazines, periodicals of general circulation, by means of radio broadca!,jt~, in pamphlets and in and by other methods of advertising media. In, by and through each of tlie advertising media above-enumeratl'd, respondent represents expressly, or by implication, (a) that said product is new; (b) that its use constitutes a simple new method; (c) that the use of said product converts food into fuel and energy: (d) that said product can be safely taken by members of the laity without direction from a physician; (e) that said product is safe, harmless and efficacious in all types or classes of obesity. Typical of its said advertisements are the following, which are caused to he published by respondent in newspapers, in cities and towns in various States of the United States where sn,id product is handled by druggists:

NO l\IORE UGLY FAT Pounds of ugly fat melt away as if by magic! No stanation diet or strt•uuous exercise I Eat as much as you want-everything you 111;:e within rea:;t•ll! Away goes that hideous flesh! New Beauty-new health-for you! :ij 151 is a Doctor's prrscrlptlon! ~Imply take one cnpsuiP attn' each nwal. Get R bottle of Dr. Thomas' :ij 157 at your drug store and LegltJ tnklng it TODAY Two sizes-$1 and $2.50. Guaranteed not to contain dPnltrophenol. nE- MEl\IBEit: m;SULTS GUARANTEED OR l\IO:.ley REFUNDED! Sold at GI'Unt Drug Co., lllorgun Drug Co., Tarrnnt Drug Co., L. T. Wright Drug Co., nud all other good drug stores.

It everything you e11t sc>ems to turn to tnt, the chnncPR are your "Y~tem is lucking In n11tural glandular substance which nature provides to control tbe !at-making process. Instead of fat turning Into energy, It remains unused· However, through a New York Doctor's prescription, you cnn pro,·lde this natural rl'gulating substance.

GLENN LABORATORIES, INC. 309 302 Findiugs . PAn. 4. Dr. Thomas' 1J 157 is a product made of several ingred!e~ts. Its only ingredient which is effectual in ridding human bodies of portions of fat or other body tissue or weight, is desiccated thyroid. The reducing effect produced by the use of Dr. Thomas' 1; 157 is the same as the effect produced by taking an equal amount of ~esiccated thyroid. Dr. Thomas' 1J 157 contains one-half grain of ~esiCcated thyroid. It is put up in capsules and is to be taken three tunes daily orally, i. e. one and one-half grains of desiccated thyroid Per day.

Desiccated thyroid is made from the thyroid gland of domestic animals. It is a powerful and dangerous drug. There are persons whose bodies in their natural and normal state are so constituted that they may not take or use thyroid without harmful results to their bodies. As to any person, the only way in \vhirh it may be ascertained whether or not such person may take ?r use thyroid without harmful results to the body, is through exam- Ination by a competent physician or by experimental use by such l)~rson under medical supervision, or by both such methods com- Lined. Only by the same means may it be ascertai11ed in how large a qua11t ity thyroid may be taken or used by such a person without harrnful results.

There are conditions of the human body which make it harmful to t~ke or use thyroid. Among these is pregnancy. Other such conditions are defects or abnormalities o:f the heart or kidneys. Any defect or abnormality of the body is apt to make the taking or the ttse o:f thyroid harmful to the user.

Only by examination made by a competent physician may it be ascertained whether or not the body of such person has any such condition, defect, or abnormality which makes it harmful for such Person to take or use thyroid.

Obesity is genera1Iy caused from overeating, but it may be the t·esult of more than one cause. One of the causes is a deficient or a.bnormally inactive thyroid gland. Deficiency or abnormal inachvity of thyroid glands causes obesity or abnormal excess fat in only t·are and exceptional cases. In a large majority of the total number of casps of obesity the persons affected do not have deficient thyroid glands and such obesity or abnormal excess weight is the result of a cause or causes other than deficient thyroid glands. Only in cases of obesity due to deficiency of thyroid glands is the use of desiccated thyroid indicated. In all other cases it is dangerous :for a person ~ 0 Use thyroid in the quantities contained in Dr. Thomas' I; 157 and lll tho dosao-el:l suo-n-estedl:ll:l by respondent without an examination and 310 FEDERAL TRADE COMMISSION DECISIOKS Findings 25F. T. C.

the advice and direction of a competent physician. The laity cannot tell whether or not obesity is due to a deficient thyroid gland. This can only be ascertained by the examination of a competent physician.

PAn. 5. There are many pt-rsons in and throughout the several States of the United States and the District of Columbia, who are seeking some safe and dependable means whereby they may quickly, easily, certainly, and permanently remove from their bodies obesity or abnormal excess weight or other weight or flesh. Such persons are unskilled in medical science and depentl for their information as to what treatment, remedy, method, or system they may safely purchase, take, or use, largely upon the statements and representations of the makers and sellers thereof. PAR. 6. Respondent's said advertising described in paragraph 3 u have is false, misleading, and deceptive in that: 1. Desiccated thyroid has been used by physicians in the type of obesity due to defective thyroid gland for many years and is not new;

2. The use of desiccated thyroid docs not always convert food into fuel and energy or either of them;

3. In that respondent fails to d.disclose:

(a) Dr. Thomas' l} 157 contains desiccated thyroid in quantities fluch as to make it a powerful and dangerous medicine; (b) That it is only suitable as a medicine for obesity in the cases of deficiency of the thyroid gland and that these cases are rare and exceptional and can only be d.iagnosed by a competent physician; (c) That medical science and. physicians justify the use of thyroid as a treatment for obesity or excess weight only in cases where obesity or excess abnormal fat is caused by deficiency of the thyroid gland, that competent physicians prescribe its use only in such cases; (d) That in cases of obesity or abnormal fat not caused by defi· ciency of thyroid gland the use of thyroid is not ind.icated and its use therein may be and is likely to be harmful to the user; (e) That many person<; arc so constituted that they 111ay not use Dr. Thomas' 1} 157 with sa fcty to physical health; (f) That respond<'nt's preparation, Dr. Thomas' I; 157, is one which cannot be used with safety to physical health cxcrpt under medical prescription and advic«.>.

PAn. 7. Said statements and representations so made by respondent and said failures to d.disclose as set forth in paragraph 6 hereof have the tendency and capacity to induce the members of the public and prospective purchasers to form the mistaken and erroneous belief that such representations as set forth in paragraph 3 are true and GLENN LABORATORIES, INC. 311 302 Order that said product is a safe, harmless and competent remedy or treatment for all classes and types of obesity and to induce them to purchase "Dr. Thomas' 1). 157" in preference to and to the exclusion of preparations, systems, methods, or other means of treatment bein(J' offered. for sale in said commerce by said competitors of responden~ as heremabove alleged; thereby trade is unfairly diverted to respoudent from its said competitors to the injury of competition in com- ~~rce among the various States of the United States and to the Injury of the public.

CONCLUSION ~he aforesaid acts and practices of the respondent, Glenn Laboratones, Inc., a corporation, are to the prejudice of the public and of l'~spondent's 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 C.I',ASE AND DESIST . This proceeding having been heard by the Federal Trade Commis- 81011 upon the complaint of the Commission and the substitute answer filed herein on the 29th day of .March 1937, by respondent, admitting all of the material allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, and the Commission having made its findings rrs to the facts and its conclusion that the said respondent has violated the provisions of an Aet of Cfmgrcss apprm·ed September 2G, 1914, entitled "An Act to Clt-ate a Federal Trade Commission, to define its powers and duties, ll.IJ(l for other purposes."

It i8 ordered That respondent, Glenn Laboratories, Inc., a corpol'~tion, its office~rs, representatives, agents, and employees, in cmmechonn with the offl'rin,.,., for sale ' sale and distribution of "Dr. Thomas'. ,. 157" in interstate commerce or in the District of Colmnb1a, so long as said prolluct cm1tains desiccated thyroid or other form of thyroid, do forthwith cease and desist from representing, expressly ~r Ly implication, in newspapers, magaz.in.es, pe.riodicals, in rat~io b l'oadeaHts, in pamphlets, on cartons contauung said product, and m, Y lllH} through other advertising media:

1. That said product is I1CW; . • 2. That its use constitutes a simple new method of treatmg obesity; 3. TJ1at the use of said product converts food into fuel and ener~y; 4. That said product can be safely taken by members of the laity Order 25 F. T. C'. without a physical examination by a competent physician and without the advice and direction of a competent physician during the taking thereof;

5. That said product is safe, harmless, and efficacious, or either of them, in all types or classes of obesity;

6. Or any other statement or representation of like import, including failure to affirmatively disclose by, in and through each and all of the said media that said product contains a dangerous and powerful ingredient and cannot be safely taken by members of the laity without a physical examination by a competent physician and without the advice and direction of a competent physician during the taking thereof.

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

JmCATHOL CO., INC. 313 Complaint