Swamp and Dixie Laboratories, Inc

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IN Tile MATTER OF SWAMP AND DIXIE LABORATORIES, INC.

COl\IPLAINT, FI!S'DINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. :> OF AN ACT OB' CONCRESS APPROVED SEPT. 26, 1914 Docket 3680. Complaint, Dec. 29, 1938-Dedsion, Feb. 2i, 1939 'Vhere a corporation engaged in sale of "Swamp Chill and Fever Tonic" and "Dixie Feyer and Pain Powder" to retail druggists and others In vat·ious States and In the District of Columbia; in fal,;e advertisements which it disseminated through the mails aud through insertion in newspapers and periodicals of general circulation, and through circulars and other printed matter distributed In commerce and In said District- {a) Represented, directly and by Implication, that said ''Swamp Chill and • f Fever Tonic" medicinal preparation was a doctor's presc1·iption which , constituted a safe, certain, und permanent ·cure for malaria and every kind of fever and ague, and that it would break up malaria In 3 days and was a general tonic, and a remedy or competen't and effective treatment for colds, chills, poor appetite, and run·down condition, and that it regulated the bowels and purified the system, facts being said representations were grossly exaggerated, mi"leading, and untrue, said preparation was not a safe, certain, and permanent cure for malaria, etc., as abon~ set forth, or general tonic, nor remedy for colds, etc., and would not accomplish other results above claimed, and while each of certain ingredients therein contained might be beneficial at some stage in treatment of malaria, it might be unnecessary and perhaps definitely counter-indicated in other' stages, and in other cases, and preparation was not a wholly safe drug for use by lay public in self-medication; and (b) Represented that Its "Dixie Fever and Pain Pawdet·" was a safe remedy or treatment for sleeplessness, n<'uralgia, rheumatism, grippe, or influenza, cold in the head, catarrh, and all kinds of fever, facts being such representations were grossly exaggerated, misleading, and untrue, said preparation was not such a remedy or treatment for sleeplessness and for other ailments and conditions above set out, and was not a wholly safe drug for use by lay public in self-medication;

With effect af misleading and deceiving substantial portion of purchasing public into erroneous and mistaken belief that such false statements, representations, and advertisements were true, and into purchase of its said medicinal preparations as a result of such statements, representations, and advertisements:

llcld, That such acts and practices were all to the prejudice of the public and constituted unfair and deceptive acts and practices In commet·ce. Mr. Gerard A. Rault for the Commission.

lV m-ner & lV amer, of Fort Smith, Ark., 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 SWA~IP AND DIXIE LABORATORIES, INC. 841 840 Complaint Trade Commission, having reason to believe that Swamp and Dixie Laboratories, Inc., a corporation hereinafter referred to as respondent., has violated the provisions of 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:

PAR.\GRAPII 1. Respondent, Swamp and Dixie Laboratories, Inc., i!'1 a corporation organized and existing under and by virtue of the laws of the State of Arkansas, with its office and principal place of business located at 301-311 Rogers Avenue, Fort Smith, Ark. The respondent is now, and for more than 2 years last past has beein engaged in the business of selling and distributing two medicinal preparations known as "Swamp Chill and Fever Tonic" and "Dixie. Fever and Pain Powder." Respondent sells these medicinal preparations to retail druggists and others located in various States of the United States and in the District of Columbia and causes said' preparations when sold by it to be transported from its aforesaid; place of business in the State of Arkansas to the purchasers thereof located in various States of the United States other than tl~e State., of Arkansas and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said drugs 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 of its aforesaid business, respondent has disseminated, and is now disseminating, and has caused and does now cause to be disseminated, false advertisements for the purpose of inducing, and which. are likely to induce, directly or indirectly, the purchase of respondent's said medicinal preparations. Said false advertisements were and are disseminated by use of the United States mails, by insertion in newspapers and periodicals having a general circulation, and also in circulars and other printed matter, all of which are distributed in commerce among and between the various States of the United States and in. the District of Columbia. Various means have been and are used by respondent to disseminate, or cause the dissemination of, said false advertise- :rnents for the purpose of inducing or which are likely to induce, directly or indirectly, the purchase in commerce among and between the various States of the United States and in the District of Columbia of respondent's said medicinal preparations. Among and typical of the statements and representations contained in said false advertisement so used and disseminated as aforesaid are the following: Swamp Chill und leyer Tonic.

For malarial fever and ague.

842 FEDERAL TRADE CO:\Il\IISSION DECISIO:XS Complaint 28 F. T. C. A safe, certain and permanE:>nt cure for every form of fE:>YE:>r. The remedy that cures.

A doctor's pre:>scription which will brenk up malaria in 3 days if taken according to directions.

* * * If yon llllve trouble with malnria chills nntl fPYE:>l', poor appt'tite, lost energy or a run-down condition, then "' "' "' Swamp Chill and J<'pver Tonic will pro,·e your best friend "' "' "' It is a good gene:>ral tonic, an i<llal trentruent for colds "' "' "' Swnmp Chill and Fever Tonic regulates the bowels, enriches the blood, Improves tbe nppetite, purifies the system, quic·kly and completPiy frt'eing yon from the dreaded malaria germs which make you inefficient and life mh;ernble.

Dixie Fever and Pain Powde1·.

For the relief of simple lwadnche and neuralgia, muscular inches and pains. Indicnted also for head colds. Vsefnl in reducing fever. Dependable for 40 years.

A sovereign reme:>dy for all aches and pains. For the relief of head<tche. neuralgia, rheumatism, In grippe, cold In tlte head, sleeple~sness and all nervous conditions.

For the rP!Ief of fe,·ers, such !IS intermittent, remittent, hay fe,·er, chill fever, etc.

Through the use of the statements and repres{'ntations hereinabove set forth and others similar thereto not set forth herein, respondent has represented directly and by implication that the medicinal preparation "Swamp Chill and Fever Tonic" is a doctor's preseription, that it is a safe, certain, and permanent cure for m.aluria and every kind of fever and ague, that it will "break up" malaria in 3 days, that it is a general tonic, that it is a remedy or competent or effective treatment for colds, chills, poor appetite, and run-down condition, and that it regulates the bowels and purifies the system; that the medicinal preparation "Dixie Fever and Pain Powder" is a safe remedy or treatment for sleeplessness, neuralgia, rheumatism, !:1 grippe or influenza, cold in the head, catarrh, and all other kinds of fever.

PAn. 3. The said representations used and disseminated by the respondent in the manner above described are grossly exaggerated, misleading, and untrue. The medicinal preparation "Swamp Chill and Fever Tonic" is not a safe, certain, and permanent cure for malaria and for all kinds of fever and ague, nor will it "break up" malaria in 3 days. It is not a general tonic. It is not a remedy for colds, chill, poor appetite and run-down condition. It neither regulates the bowels nor purifies the system. The preparation "Dixie Fever and Pain Powder" is not a safe remedy or treatment for sleeplessness, neuralgia, rheumatism, la grippe or influenza, cold in the head, catarrh, and for all kinds of fear.

The true facts are the preparation "Swamp Chill and Fever Tonic" contains quinoidine, acetanilid, iron, nux vomica, formaldehyde, and SWAMP AXD DIXIE LABORATORIES, INC. 843 840 Findings syrup senna. Each of these ingredients may be beneficial at some stage in the treatment of malaria though unnecessary and perhaps definitely counter-indicated at other stages and in other cases. The preparation "Dixie Fever and Pain Powder" contains acetanilid, sodium bicarb, caffeine concentrated, mHl Po. charcoal. Neither of these two preparations is a wholly safe drug to be used by the !tty public in self-medication.

PAR. 4. The use by the respondent of the foregoing false, deceptive, and misleading statements aiel representations and advertisements disseminated as aforesaid has had, and now has, the capacity and tendency to and does mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements, representations, and advertisements are true and into the purchase of respondent's medicinal preparations as a result of such statements, representations, and advertisements. PAR. 5. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on December 29, 1938, issued and served its complaint upon respondent, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On February 3, 1939, respondent filed its answer in which it admitted all the nl.uterial allegations of fact set forth in said complaint and waived all intervening procedure and further hearings as to said facts. Thereafter the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer thereto 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, Swamp and Dixie Laboratories, Inc., is a corporation organized and existing under and by virtue of the laws of the State of Arkansas, with its office and principal place of business located at 301-311 Rogers Avenue, Fort Smith, Ark. The respondent is now and for more than 2 years last past has been engaged in the business of selling and distributing two medicinal preparations known us !.!00340"'-40-vol. 28-M 844 FEDERAL TRADE COl\LMISSIO~ DECISIONS Findings 28 F. T.C. "Swamp Chill and Fever Tonic" and "Dixie Fever and Pain Powder." Respondent sells these medicinal preparations to retail druggists and others located in various States of the United States and in the District of Columbia and it causes said preparations when sold by it to be transported from its aforesaid place. of business in the State of Arkansas to the purchasers thereof located in various States of the United States other than the State of Arkansas and in the District of Columbia. Respondent maintains, and at all times mentioned hereiri has maintained, a course of trade in said medicinal preparations 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 of its aforesaid business, respondent has disseminated, and is now disseminating, and has caused and does now cause to be disseminated, false advertisements for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of respondent's said medicinal preparations. Said false advertisements were and are disseminated by use of the United States mails, by insertion in newspapers and periodicals having a general circulation, and also in circulars and other printed matter, all of which are distributed in commerce among and between the various States of the United States and in the District of Columbia. Various means have been and are used by respondent to disseminate, or cause the dissemination of, said false advertisements for the purpose of inducing or which are likely to induce, directly or indirectly, the purchase in commerce among and between the various States of the United States and in the District of Columbia of respondent's said medicinal preparations. Among and typical o£ the statements and representations contained in said false advertisements so used and disseminated as aforesaid are the following: Swamp Chill and Fever Tonic.

For malarial fever and ague.

A safe, certain and permanent cure for every form of fever. The remedy that cures.

A doctor's prescription which::h will break up malaria in 3 days, ~f taken according to direc::tions.

• • • If you have trouble with malaria chills and fever, poor appetite, lost energy or a run-down condition, then • • • Swamp Chill and Fever Tonic will prove your best friend • • • It is a good general tonic, an ideal treatment for colds. • • • Swamp Chill and Fever Tonic regulates the bowels, enriches the blood, improves the appetite, purities the system, quickly and completely freeing you from the dreaded malaria germs which make you Inefficient and life miserable.

Dixie Feyer and Pain l'powder.

For the relief of simple headache and neuralgia, muscular aches and pains. Imlicated also for head colds. Useful In reducing fever. S'VAJ\IP AND DIXIE LABORATORIES, I~C. 845 :840 Findings Dependable for 40 years.

A :,;overeign remedy for all aches and pains. For the relief of headache, neuralgia, 1 heumatism, Ia grippe, cold in tlle bead, sleeplessness, and all nervous conditions. . For the relief of fevers, such as intermittent, remittent, buy fever, chill fe,·er, etc.

The Commission finds that through the use of the statements and representations hereinabow set forth and others similar thereto not herein set forth, respondent has represented directly and by implication that the medicinal preparation '·Swamp Chill and Fever Tonic'' is a doctor's prescription, that it is a safe, certain, and permanent -cure for malaria and every kind of fever and ague, that it will "break up" malaria in 3 days, that it is a general tonic, that it is 8i remedy or competent or effective treatment for colds, chills, poor appetite, and rnn-do\Yn condition, and that it regulates the bowels and purifies the system; that the medicinal preparation "Dixie Fever and Pain Powder" is a safe remedy or treatment for sleeplessness, neuralgia, rheumatism, la grippe or influenza, cold in the head, catnrrh, and all kinds of fever.

PAn. 3. The Commission finds that the said representations used and disseminated by the respondent in the manner above described are grossly exaggerated, misleading, and untme. The medicinal preparation ''Swamp Chill and Fever Tonic" is not a safe, certaint and permanent cure for malaria and for all kinds of fever and ague, nor will it "break up" malaria in 3 days. It is not a general tonic. It is not a remedy for colds, chill, poor appetite, and run-down ~ondition. It neither regulates the bowels nor purifies the system. The preparation "Dixie Fever and Pain Powder" is not a safe remedy or treatment for sleeplessness, neuralgia, rheumatism, la grippe or influenza, cold in the head, catarrh, and for all kinds of fever. The true facts are that the preparation "Swamp Chill and Fever Tonic" contains quinoidine, acetanilid, iron, nux vomica, formaldehyde, and syrup senna. Each of these ingredients may be beneficial ar some stage in the treatment of malaria though unnecessary and per· haps definitely counter-indicated at other stages and in other cases. The preparation "Dixie Fever and Pain Powder" contains acetanilid, sodium bicarb, caffeine concentrated, and Po. charcoal. Neither of these two preparations is a wholly safe drug to be used by the lay public in self-medication.

PAR. 4. The use by the respondent of the, foregoing false, deceptive, and misleading statements, representations, and advertisements disseminated as aforesaid has had, and now has, the capacity and tendency to und does mislead and deceive a substantial portion of the 846 FEDERAL TRADE CO:M:\liSSIO:N DECISIOXS Order 2SF. T. C.

purchasing public into the erroneous and mistaken belief that such false statements, representations, and advertisements are true and into the purchase of respondent's medicinal preparations as a result of such statements, representations, and advertisements. COXCLUSION The above acts and prac-tices of the respondent as herein found are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

Older TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, in which answer respondent admits all the material allegations of the fact set forth in said complaint, and states that it waiv"es all intervening procedure and further hearings as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Swamp and Dixie Laboratories, Inc., its officers, agents, representatives, and employees, directly or through any corporate or other device, do forthwith cease and desist from:

Disseminating or causing to be disseminated any advertisement by means of the United States mails or in commerce, as commerce is defined in the Federal Trade Commission Act, by any means, for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase of medicinal preparations containing drugs now designated by the name of "Swamp Chill and Fever Tonic" and "Dixie Fever and Pain Powder," or any other medicinal preparation composed of substantially similar ingredients or possessing subtantially similar therapeutic properties, whether sold under the same names or under any other name or names, or disseminating or causing to be disseminated, any advertisement by any means for the purpose of inducing, or which is likely to .induce, directly or indirec-tly, the purchase in commerce, as commerce is defined in the Feel. eral Trade Commission Act, of said medicinal preparations, which advertisements represent directly or through implication that said medicinal preparation "Swamp Chill and Fever Tonic"' is a safe, certain, and permanent cure for malaria or for every kind of fever and ague, that it will break up or cure malaria, that it is a general SWAl\IP AND DIXIE LABORATORIES, INC. 847, -840 Order tonic, that it is a remedy or competent or effective treatment for colds, chills, poor appetite, and run-down condition, that it regulates the bowels and purifies the system, or that said preparation "Dixie Fever and Pain Powder" is a safe remedy or treatment for sleeplessness, neuralgia, rheumatism, la grippe or influenza, cold in the 1wad, catarrh, and all kinds of fever, and which advertisements fail to reveal that these preparations are not wholly safe drugs to be used by the lay public in self-medication. It is further ordel·ed, That the respondent shall within 10 days after service upon it of this order, file with the Commission an interim report in writing stating whetlwr it intends to comply with this order, and if so, setting forth in detail the manner and form in which it intends to comply; and that within 60 days after the service upon it of this order, said respondent shall file with the Commission .a report in writing setting forth in detail the manner and form in which it has complied with this order.

~48 FEDERAL TRADE COl\Il\IISSIO~ DECISIONS Syllabus 28 F. T. C'.