Golden Peacock, Inc

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IN THE MATTER OF GOLDEN PEACOCK, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO TIIB ALLEGED VIOLATION OF SEC. 5 OF AN ACT 01<' CONGRESS APPROVED SEPT. 26, 1914 Docket 3156. Compla-int, June 18, 1937-Decision, Feb. 16, 1938 \Vhere a co-,·poration engaged in sale and distribution of its "Golden Peacock Bleach Cream" and "Miracrcam" facial preparations for blenching and removiug, as asserted, blemishes and disorders of the skin, to purchasers in other ~states and in District of Columbia, in substantial competition with those Pngaged in offering and selling in commerce, as aforesaid, compounds or preparations for use in treatment of some ailments, disorder~. and conditious of the skin for which it recommended its aforesaid prep:uations, and including many who sell and distribute in commerce similar preparations without misrepresenting the properties or therapeutic efticacy thereof- ( a) Represented, in radio broadca;;ts nnd adYertisenwnts in new,;pupl•rs and periotlieul!! of interstate circulation, that its said "Peacock" cream constituted an amazing new discovery, in the perfection of which 10 years was spent und in the development of which 30 eminent doctors and skin specialists worked, and that it contained costly refined ingredients from Spain and France which acted in a peculiar way on the outside layer of the skin and completely revitalized it ancl changed it in color and texture, and that no ordinary cream or lotion could bleach skin white and keep it wllite; and (b) Represented, as aforesaid, that said cn•ams, as the ease might be, were new and different, and would remove freckles, blotches, tan, and blackheads, and every slight blotch, and result in the corning, ln place thereot, of alluring alabaster clearness and a skin like ivory, flawless and soft, and bring out the clear look of youth;

Facts being said products did not contain refined ingredients which would revitalize the skin and change its color and texture as above set forth, were not 11ew discoveries or developed as aforesaid, would not prouuce an ivory or soft and flawless skin or remove, under all conditions and in all cases, blotches, freckles, tan, deep-seated discolorations, etc., over night, or in any period of time, irrespective of the cause of the lmperfections or conditions, and would not nourish, revitalize or rejuvenate the skin, and had not been indorsed by trading medical authorities; \With capacity and tendency to confuse, mislead, and deceive members of the public into the mistaken and erroneous belief that its aforesaid preparations were different from other creams or ointments offered in commerce, and were perfected by eminent doctors and skin specialists during a period of years, and that they had been indorsed by leading medical authorities and beauty specialists, and had the property to nourish and rejuvenate the skin and were active, effective treatments for all discolorations, blotches, and disorders and skin blemishes, no matter from what cause, and to induce members of the purchasing public to buy and use said preparations because of the erroneous and mistaken beliefs engendered as aforesaid, and unfairly to divert trade to it from its competitors, to their substantial injury:

Held, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. GOLDEN PEACOCK, INC. 753 752 Complaint Before Mr. Robert S. llall, trial examiner. Mr. Carrel F. Rhodes and Mr. De lVitt T. Puckett £or the Commission.

Mr. Rlr:hard II. Rhodes, o£ Paris, Tenn., £or respondent. Col\JPLAINT Pursuant to tlle provisions o£ an Acto£ Congress approved September 26, 1914, entitled, "An Act to create a Federal Trade Commission, to define its powers and duties, and £or other purposes," the Federal Trade Commission having reason to believe that Golden Peacock, Inc., a corporation, hereinafter referred to as respondent, has been, and now is, using unfair methods o£ competition in commerce as "commerce" is defined in said act, and it appearing to the Commission that a proceeding by it in respect thereto would be to the public interest, hereby issues ita complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Golden Peacock, Inc., is a corporation organized, existing, and doing business under and by virtue ~£ the laws o£ the State o£ Tennessee, with its factory and principal place of business located at Paris, in said State. Said respondent corporation is now, and for more than 1 year last past has been, engaged in advertising, selling, and distributing toilet prt•parations including several designated as "Golden Peacoek Bleach Cream" and ".Miracream." It now causes, and £or more than 1 year last past has caused, said preparations, when sold, to be shipped from its place o£ business in Paris, Tenn., to the purchasers thereof, some loeftted in the State of Tennessee, and others located in various other States of the United States and in the District o£ Columbia.

Respondl:'nt is now, and for more than 1 year last past has been, in substantial competition with other corporations and with persons, firms, and partnerships engaged in the sale of facial creams and other preparations similar to those sold by it in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct o£ its business ns described in paragraph 1 hereof, in solicitin:: the sale, and selling, its preparations designated as "Golden Peacock Bleach Cream" and "Miracrl:'am," respondent now ri:'JH'esPnts, and for more than 1 year last Past ltas reprl:'sented, in radio broadcasts having an interstate circulation, in letters, pamphlets, newspapers, magazines, circulars, wrappers, and other :forms of advertising media, as follows: An amazing new discovery. It Is called "Golden Peacock Bleach Cream" and n1marks one of the most important skin disco"eries in years. Ten years were Complaint 261~'. T. C. spent in perfecting lt. Some thirty eminent doctors and skin specialists worked in its development.

It contains costly refined ingredients from Spain and France which act in a peculiar way on the outer layer of the skin--completely revitalizing it and changing it in color and texture to a child-like whiteness and texture. But no ordinary cream or lotion • • • can bleach skin white and keep it white. You must use for this purpose a genuine bleach cream-Golden Peacock.

Smooth it on your skin tonight. Next morning notice how muddy sallowness has given way to unblemished whiteness • • • all imperfections that rob your true loveliness vanish too.

Give us 1 night to prove its effect; see freckles fade, blotches, tan, blackbeads go.

Here's a chance to see this miracle of au ivory skin almost over night worked on your own face. · Do you want to see every freckle disappear from your face; every slight blotch leave; and in their place see allurin~ alabaster clearness come? A skin like ivory; flawless and soft.

Bring out • • • clear look of youth. It's new! It's different! Just spread a little Miracream over your face and neck. It disappears into your skin like "magic", where it does its work fast and sure instead of staying on top like old-time sticky night bleaches that look messy and untidy • "' • at night; after washing your face, your skin will be at least one shade lighter. Within 5 days you'll be tickled with the lovely white beauty 1\lirncream gives you. PAR. 3. In truth and in fact, the toilet preparations ''Golden Peacock Bleach Cream" and "l\Iiracream" do not contain costly refined ingredients imported from France and Spain which revitalize the skin and change its color and texture to a childlike whiteness and texture. Said preparations are not new discoveries developed after years of experimentation by eminent doctors and skin specialists. The use of said preparations will not produce or cause an ivory skin and will not make skin soft and flawless. The use of said preparations will not remove blotches, freckles, tan, pimples, liver spots, sallowness, deep-seated discolorations, imperfections, and blemishes overnight or in any other period of time and said preparations are not competent and effective treatments for the above-named conditions of the skin. Said preparations have not been endorsed by leading medical authorities and beauty specialists. Said products will not bleach skin white in all cases and will not keep skin white in all cases. Neither of said products nourishes, revitalizes, or rejuvenates the skin.

PAR. 4. The representations of respondent, as aforesaid, are false and grossly exaggerated, and have had, and do have, the capacity and tendency to confuse, mislead, and deceive members of the public into the mistaken and erroneous beliefs that respondent's products designated "Golden Peacock Bleach Cream" and "Miracream" nre GOLDEN PEACOCK, INC. 755 752 Findings different from other creams or ointments in existence and were perfected by eminent doctors and skin specialists during a period of years; that the preparations have been endorsed by leading medical authorities and beauty specialists; that said preparations have the property to nourish and rejuvenate the skin; and are effective treatments for all discolorations, blotches, skin disorders, skin defectst sallowness, liver spots, and skin blemishes, no matter from what caused. The said representations of respondent have had, and do have, the tendency and capacity to induce members of the public to buy and use said preparations because of the erroneous beliefs engendered as above set forth, and to divert trade unfairly to respondent from competitors engaged in the sale of face creams and cosllletics similar to the preparations sold by respondent in commerce among and between the various States of the United States. There are among the competitors of respondent, many who sell and distribute in commerce similar face creams and preparations who do not misrepresent the properties or qualities or therapeutic virtues, functions, uses, or effects of their said competing products. PAR. 5. The above alleged acts and practices of the respondent are all to the prejudice and injury of the public and the respondent'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."

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act o:f Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Com- Inission, to define its powers and duties, and for other purposes," the Federal Trade Commission on the 18th day of June 1937, issued, and on the 21st day of June 1937, served its complaint in this proceeding Upon the respondent, Golden Peacock, Inc., charging it with the use of Unfair competition in commerce in violation of said act. After the issuance of said complaint, and filing of respondent's answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by Dewitt T. Puckett, attorney for the Comlllission, before Robert S. Hall an examiner of the Commission there- ~afore duly designated by it, no testimony or other evidence being Introduced by Richard H. Rhodes attorney for the respondent; and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came 756 FEDERAL TRADE COMl\USSION DECISIONS Finding;; 26F. T. C.

on for final hearing before the Commission on the said complaint, the answer thereto, testimony and other evidence in support of the allegations of the complaint, brief of counsel for the Commission, no brief having been filed by the respondent or oral argument having been heard; 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 PARAGRAPH 1. Respondent, Golden Peacock, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Tennessee with its factory and principal place of business located at Paris in said State. Respondent is now, and since 1928 has been, engaged in selling and distributing in commerce toilet preparations including facial creams designated as "Golden Peacock Bleach Cream" and "Miracreum" designed and represented by respondent for the alleged purpose of bleaching and removing blemishes and disorders of the human skin.

PAn. 2. In the course and conduct of its business as described in paragraph 1 hereof, respondent causes the said products, when sold, to be transported from its place of business in Paris, Tenn., to the purchasers thereof located at various points in the several States of the United States other than the State of Tennessee and in the District of Columbia.

Respondent is now, and has been since 1928, engaged in substantial ()ompetition with other corporations and with firms, partnerships, arid individuals, engaged in offering for sale and selling in commerce between and among the several States of the United States and in the District of Columbia compounds or preparations for use in the treatment of ailments, disorders, and conditions of the skin for which the respondent recommends and sells its preparations. Respondent sells its said products, "Golden Peacock Bleach Cream" and "Miracream" direct to the ultimate consumers and to the general public and to druggists who sell to the trade. PAn. 3. In the course and conduct of its said business as described in paragraphs 1 and 2 hereof, in soliciting trade and selling its preparations ilesignated as "Golden Peacock Bleach Cream" and "M:iraeream," respondent represented in radio bmadcasts and in advertisements in newspapers nnd magazines having an interstate circulation as follows:

An amazing new discovery. It is callP-d "Golden Peacock Bleach Cream" 1111d marks one of the most important skin iliscoveries in years. Ten years GOLDEN PEACOCK, INC. 757 752 Findings were spent in perfecting it. Some thirty eminent doctors and skin specialistsworked in its development.

It contains costly refined ingredients f1·om Spain and France which act in a })ecnliar way on the outer layer of the skin-completely revitalizing it and changing it in color· and texture.

Dnt no ordinary cream or lotion "' "' • can bleach skin white and keep· it white. You must use for this purpose a genuine bleach cream-Golden Peacock.

Smooth it on your skin tonight. Next morning notice how muddy sallowness has given way to unblemished whiteness • • * all imperfections that rob your true loveliness vanish too.

Give us 1 night to prove its effect; see freckles fade, blotches, tan, blackheads go.

Here's a chance to see this miracle of an ivory skin almost over night worked on your own face.

Do you want to see every freckle disappear from your face; every slight blotch leave; and in their place SC'e alluring alabaster clearness come? J\, skin like ivory; flawless and soft.

Dring out • • • clear look of youth. It's new! It's different! Just spread a little Miracream over your face and neck. It disappears into your skin like "1\Iagic", where it does its work fast and sure instead of staying on top like old time sticky night bl~aches that look mes~y and untidy • • • at night; after washing your face, Your skin will be at least one shade lighter. Within 5 days you'll be tickled With the lovely white beauty l\Iiracream gives you. PAR. 4. In truth and in fact the said toilet preparations, "Golden Peacock Bleach Cream" and "Miracream" set out and described i11 paragraphs 2 and 3 hereof, do not contain refined ingredients which. revitalize the skin and change its color and texture to a child-like whiteness and texture. Said preparations are not new discoveries developed after years of experimentation by eminent doctors and skin specialists. The use of said preparations will not produce or cause an ivory skin and will not make skin soft and flawless. The use of said preparations will not remove under all conditions and in all cases blotches, freckles, tan, pimples, liver spots, sallowness, deepseated discolorations, imperfections, and blemishes over night or in any period of time irrespective of the cause of said imperfections or conditions. Said preparations are not competent and effective treatments for the above-named conditions of the skin in all cases or under all circumstanc~s or under all conditions. Said preparations have not been endorsed by leading medical authorities. Said preparations will not bleach the skin white in all cases and will not keep it white in all cases. Said preparations will not nourish,. revitalize, or rejuvenate the skin .

• PAR. 5. The representations of respondent set out and described: In paragraph 3 hereof are false and grossly exaggerated and have had and do have the capacity and tendency to confuse, mislead and 758 FEDERAL TRADE COl\Il\IISSION DECISIONS Order 26F.T.G.

deceive members of the public into the mistaken and erroneous beliefs that respondent's preparations designated "Golden Peacock Bleach Cream" and "Miracream" are different from other creams or ointments offered for sale in commerce and were perfected by €minent doctors and skin specialists during a period of years; that the preparations have been endorsed by leading medical authorities and beauty specialists; that said preparations have the property to nourish and rejuvenate the skin and are active, effective treatments for all discolorations, blotches, disorders, skin defects, sallowness, liver spots, and skin blemishes no matter from what cause. PAR. 6. There are among the competitors of respondent many corporations, partnerships, and persons who sell and distribute in <:commerce face creams and preparations similar to "Golden Peacock Bleach Cream" and "Miracream" and other preparations sold by respondent, who do not misrepresent the properties or therapeutic efficacy of their products.

PAR. 7. The above described acts and practices of the respondent l1ave had and do have the tendency and capacity to induce members of the purchasing public to buy and use said preparations because of the erroneous and mistaken beliefs engendered as above set out; and the tendency and capacity unfairly to divert trade to the respondent from its competitors in said commerce. Thereby, substantial injury has been, and is, being done by the respondent to competitors in commerce between and among the several States of the United States and in the District of Columbia. CONCLUSION The aforesaid acts and practices of the respondent, Golden Peacock, Inc., are to the prejudice of the public and of respondent'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 CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of respondent, testimony, other evidence taken before Robert S. Hall, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint, and the Commission having made its findings as to the facts and its conclusion that said respondent has GOLDEN PEACOCK, INC. 759 "'752 . Order 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 ordered, That the respondent, Golden Peacock, Inc., its officers, representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of its toilet preparations "Golden Pea- -cock Bleach Cream" and "Miracream," or any other preparations com· posed of substantially the same ingredients as said preparations, in int~rstate commerce or in the District of Columbia, do forthwith cease .and desist from representing:

1. That the use of said preparations or any of them: (a) Will nourish, revitalize, and rejuvenate the skin; (b) "\-Viii produce or cause a soft, flawless, ivory skin; (a) Will bleach the skin white and keep it white; (d) 'Vill remove blotches, freckles, tan, pimples, liver spots, sallowness, deepseated discolorations, and imperfections from the skin.

2. That said preparations or any of them : (a) Contain refined ingredients which revitalize the skin and change its color and texture to a child-like whiteness and texture; (b) Are new discoveries, or that they, or any of them, were or are preparations developed after years o£ experimentation by eminent doctors and skin specialists;

(a) Have been endorsed by leading medical authorities. 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.

760 :FEDERAL TRADE COl\11\IISSION DECISIONS Comx)Jaint 2G F. T. C.