Endura Corp

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IN THE MATTER OF THE ENDURA CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO '!'HE ALLEGED VIOLATIO~ OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3419. Compla-int, May n, 1938-Decision, Jan. 31, 1939 "'here a corporation engaged In sale of its "Emlura" or "Endura Permanent Wave" beauty preparation to purchasers in other States and In the District of Columbia; in issuing, publishing, and circulating advertisements thereof among the various States through printed matter, radio broadcasts, and other ways- ( a) Represented that said cosmetic prpparation had been tested in the worlds foremost laboratories, and that 1t was u1<ed In Hollywood's major movie studios and by the screen's smartest stars; and (b) Represented that it was actually good for the hair and would benefit bleached, dyed, gray, or naturally colored hair; Facts being it contained nothing which was actually good for the hair or which would accomplish results aforesaid, and had not been tested and was not used as above claimed, and said representations were grossly exaggerated, false, misleading, and untrue ;

With effect of misleading and deceiving substantial portion of purchasing public into belief that all said representations were true, and with result, as direct consequence of mistaken and erroneous belief Induced by said advertising and misrepresentation, that consuming public was caused by it to purchase substantial volume of said preparation, and trade was unfairly diverted to it from others engaged In sale of like or similar preparations intended :tor lile and similar purposes, and who truthfully advertise their products; to the Injury of competition in commerce:

Held, That such false and misleading representations, claims, and statements made as aforesaid were all to the prejudice and Injury of the public and competitors and constituted unfair methods of competition in commerce. Before ltfr. Charles P. Vicini, trial examiner. Mr. Joseph C. Fehr for the Commission.

llfr. Don F. Tyler, of Los Angeles, Calif., for respondent. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that The Endura Cor· poration, a corporation, hereinafter referred to as respondent, has violated the provisions of the said act, and it appearing to the Com· mission 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:

THE ENDURA CORP. 275 274 Complaint PARAGRAPH 1. Respondent, The Endura Corporation, is a corporation organized and existing under the laws of the State of California, with I its principal office and place of business located at 4951 Sunset Boule- Yard, in the city of Hollywood, in the State of California. Respondent ·for more than 1 year last past has been and still is engaged in the sale of a certain beauty preparation known as "Endura" and sometimes designated "Endura Permanent ·wave" which is sold for use by women as a self aid for the purpose of giving their hair permanent waves. In the course and conduct of its business, respondent offers said product for sale and sells the same in commerce between the State of California and the several States of the United States, and in the District of Columbia.

When said product is sold, respondent transports same from its place cf business in the State of California to the purchasers thereof located in States of the United States other than the State of California, and in the District of Columbia. There has been for more than 1 year last Past, and still is, a constant course of trade in said product so distributed and sold by respondent, in commerce between and among the various States of the United States, and in the District of Columbia. Respondent is now, and for more than 1 year last past has been, engaged in substantial competition with other corporations, and with firms, Partnerships, and individuals engaged in the manufacture of like and similar products or other products designed for similar usage and in the sale thereof in commerce between and among the various States of the United States, and in the District of Columbia. PAn. 2. In soliciting the sale of and in selling its "Endura" of "Endura Permanent 'Vave" and for the purpose of creating a demand upon the purchasing public for said product, the respondent now eauses, and for more than 1 year last past has caused, advertisements to be issued, published and circulated to and among the people of the United States in various forms of printed matter, by radio broadcasts, and in other ways. In said ways and by said means, respondent makes, and has made, to the general public false and misleading statements with reference to the alleged value and merit of said product and its alleged use in Hollywood major movie studios and by prominent screen stars. Among the statements so made and circulated by the respondent are the following:

Endura is actually good for the hair.

Tested In the World's foremost laboratories. Used In Hollywood major movie studios.

Endura will actually benefit bleached, dyed, grey or naturally colored hair. The screen's Smartest Stars use Endura.

Complaint 28F. T.C.

. PAR. 3. The statements and representations made by respondent, as above set :forth, and others similar thereto, had and now have a tendency and capacity to deceive and mislead, and do deceive and mislead, purchasers and prospective purchasers of its product into the belief that "Endura" or "Endura Permanent 'Vave" is good for the hair and that it will benefit the hair; that it has been tested in the world's foremost laboratories; that it has been and is used in the major movie studios of Hollywood, and that it has been and is used by prominent movie stars.

PAR. 4. The representations made by respondent as aforesaid and others similar thereto, with respect to the nature and effect of its product when used are grossly exaggerated, false, misleading, and untrue.

In truth and in :fact, respondent's product does not contain any· thing which is actually good for the hair or which will actually benefit bleached, dyed, gray, or naturally colored hair. Said product has not been tested in the world's foremost laboratories. It has not been, nor: is it now, used in the major movie studios of Holly· wood. Nor is it true that the screen's smartest stars use it or ha:ve used it.

PAR. 5. Each and all of the false and misleading statements and misrepresentations made by the respondent herein by means of ad-. vertisements, radio broadcasts, and in other ways, and in offering for sale and selling the aforesaid preparation known as "Endura" and as "Endura Permanent Wave," were and are calculated to, and had and pow have a tendency and capacity to mislead and deceive, and do mislead and deceive, a substantial portion of the purchasing public into the erroneous belief that all of said representations are true. Further, as a direct consequence of such mistaken and erronc· ous beliefs, induced by the advertising and misrepresentations of the respondent, as aforesaid, a number of the consuming public purchases a substantial volume of said preparation known as "Endura'' and as "Endura Permanent 'Vave," with the result that trade has been unfairly diverted from other corporations, firms, partnerships, and individuals engaged in the sale of like and similar preparations intended to be used for like and similar purposes, who truthfully advertise their preparations. As a result thereof, substantial injury has been and is. now being clone by the respondent herein to competition in commerce among and between the various States of the United States, and in the District of Columbia. PAR. 6. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice of the public and of respondent's THE ENDURA CORP. 277 274 Findings I: competitors and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade I' Commission Act. I REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, I: ~he Federal Trade Commission, on 1\Iay 12, 1938, issued and served Its complaint in this proceeding upon the respondent, The Endura Corporation, charging it with the use of unfair methods of competition in comme.rce in violation of the provisions of said act. On :November 7, 1938, the respondent filed its answer to the complaint in this proceeding admitting all the material allegations of fact set forth in said complaint and waiving therein all intervening procedure and further hearing as to said facts. Thereafter the proceeding regularly came on for final hearing before the Commission on the said complaint and answer (respondent having waived all interven~ · ing procedure and further hearing as to the said facts); and the Commission having duly considered the matter, 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, The Endura Corporation, is a corporation organized and existing under and by virtue of the laws of the State of California with its principal place of business located at 4951 Sunset Boulevard in the city of Hollywood in said State. PAR. 2. Respondent, for more than 1 year last past, has been and still is, engaged in the sale of a certain beauty preparation known as "Endura" and sometimes designated "Endura Permanent 'Vave." When such sales are made, respondent transports this product from its place of business in the State of California to the purchasers thereof located in the States of the United States other than the State of California and into the District of Columbia, causing a <!constant course of trade in said p~·oducts so distributed and sold by respondent in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. There are in the United States other corporations, firms, partnerships, and individuals engaged in the sale of like and similar products or other products designed for similar uses and in the sale thereof in commerce between and among the various States of the Findings 28F.T.C· United States and in the District of Columbia, the respondent being in substantial competition with such other corporations, firms, and individuals.

PAR. 4. To advertise and create a consumer demand for its product, respondent now causes and for more than 1 year last past, has caused advertisements to be issued, published, and circulated to and among the States of the United States in various forms of printed matter, radio broadcasts, and in other ways, making statements, among others, as follows:

Endura Is actually good for the hair.

Tested in the world's foremost laboratories. Used in Hollywood's major movie studios.

Endura will actually benefit bleached, dyed, gray or naturally colored hair. The screen's smartest stars use Endura.

PAn. 5. Respondent's product does not contain anything which j:; actually good for the hair, or which will actually benefit bleached, dyed, gray, or naturally colored hair; it has not been tested in the world's foremost laboratories; it has not been, nor is it now, used in the major movie studios in Hollywood; the screen's foremost stars do not use it nor have they used it; and such representations made by the respondent are grossly exaggerated, false, misleading, and untrue.

P .AR. 6. Each and all of the false and misleading statements and representations made by respondent as aforesaid by means of advertisements, radio broadcasts, and in other ways in offering for sale and selling the aforesaid preparation were and are calculated and have had' and now have the tendency and capacity to mislead and deceive, and do mislead and deceive, a substantial portion of the purchasing public into the belief that all of said representations are true.

P .AR. 7. Respondent, as a direct consequence of such mistaken and erroneous belief induced by said advertising and misrepresentations, caused the consuming public to purchase a substantial volume of said preparation known as "Endura" and as "Endura Permanent 'Vave," with the result that trade has been unfairly diverted frorri other corporations, firms, partnerships, and individuals engaged in the sale of like and similar preparations intended to be used for like and similar purposes, who truthfully advertise their products. As a result thereof, injury has been done and is now being done by respondent herein to competition in commerce among and between the various States of the United States and in the District of Columbia. THE ENDURA CORP, 279 274 Order CONCLUSION The aforesaid false and misleading representations, claims, and statements made by the respondent as herein found are all to the Prejudice and injury of the public and of respondent's competitors II'and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act. II, '!' ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- !1!.sion upon the complaint of the Commission and the answer of re- I. spondent, in which answer respondent admits all the material allega- I,:Itions of the complaint to be true, and waives the taking of further ~:>vidence and all other intervening procedure, and the Commission I I having made its findings as to the facts and its conclusion that said I. respondent has violated the provisions of the Federal Trade I Commission Act.

It i8 ordered, That the respondent, The Endura Corporation, its representatives, agents, and employees, in connection with the offering for sale, sale, and distribution of a cosmetic preparation now known as "Endura" or as "Endura Permanent 'Vave," whether sold under those names or under any other names, in commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from directly or indirectly representing: 1. That respondent's cosmetic preparation has been tested in the World's foremost laboratories or that it is used in Hollywood's movie studios or by the screen's smartest stars.

2. That respondent's. cosmetic preparation is actually good for the hair or will benefit bleached, dyed, gray, or naturally colored hair. And it is hereby fu.rthe1' ordel'ed, That the said respondent shall Within 60 days from the date of service upon it of this order, file; With this Commission a report in writing, setting forth in detail the lnanner and form in which it has complied with this order. 1.

Syllabus 28 F. T. C.