Official Research Bureau of New York, Inc

Text (OCR of the scan at left; may contain errors)

IN THE l\IATTER OF AMERICAN CLINICAL LABORATORIES, INC., OFFICIAL RESEARCH BUREAU OF NEW YORK, INC., FEDERAL. RESEARCH CORPORATION, AND SHELLEY BRAVER- MAN COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CO:>IGRESS AI'l'RO\'ED SEPT. 26, 1914 Docket 31,15. Complaint, May 10, 1938-Decision, Nov. 16, 1939 Whl're two corporations respectively engaged, as Ame1ican Clinical Laboratorii'S~ Inc., and Federal Research Corporation, in sale and distribution of medicinal prl'paration designated "Retardo" for rl'duction of weight, and acting under direction and control of an Individual who owned majotity of the stock thereof; in adverti!;ing said preparation through newspapers, periodicals, bulletins and publications of general circulation omong the various States, and through rodio continuitit>s broadcast from st11tlons of extrastate audience- (a) Represented that said preparation afforded safe, competent, l'ffective and reliable method of treatment for losing weight, which would accomplish. such result without dieting or exercise, and constituted newest discovery for such purpose and contained no dangerous drugs, facts being it was not a safe method for losing substantial amount of weight, but contained, In substantial amount, boric acid, which had potential toxic properties and wos cumulative In action if taken In dally or frequent doses, and would result, If taken according to their directions, In manifest toxic effects t() large number of users, it was not newest discovery for treatment of excess weight, only competent, reliable, safe and effective method for treating which Is proper exercise and diet, and it did contain a harmful or dangerous drug in boric acid content thereof as aforesaid, ond bad no substantiol therapeutic value as remedy or cure for, or treatment of. obesity, and said statements and representations made relative thereto were grossly Inaccurate, incorrect and exaggerated, and not true statements of therapeutic value of product In question; and Where said corporation first referred to- ( lJ) Represented to members of purchasing public, through use of word "Laboratories" os port of its corporate name, that it was manufacturer or compounder of said "Retardo," facts being it purchased said prepamtion from the manufacturer or compounder thereof and acted as middleman in distributing said product in commerce as aforesaid, and was not manufacturer, for the purchase of the products of whi<'h dirl'ct there Is preference on part of substantial number of members of purchasing public as eliminat- Ing, In their belief, profit of so-called middleman and securing substantial' financiol saving and various other advantages; and Where said corporation last referred to, and third corporation, name of which was "Official Research Bureau of New York, Inc.,'' and stock of which wos. owned entirely by individual aforesaid, who directed and controlled its. 213706m-40-VOL. 29-90 1390 FEDERAL TRADE COl\11\IISSION DECISIONS Complaint 20 F. T. C. activities and policies, along with those of other two, witli respect to acts and practices here in question- ( c) Represented, in various of the advertisements aforesaid of said "Retardo," that such product had been "Approved by the Official Research Bureau of New York," and reproduced or caused to be reproduced, in various of their advertisements, seal on whirh was inserted words ''Seal of Approval, Official Research Bureau of New York," and thus that product in question had been approved by research bureau having an official connection with city or State of New York, facts being it had not been thus approved and corporation in question and last referred to had no official connection with said city or State; • \With effect of confusing, misleading and deceiving members of purchasing public into erroneous and mistaken beliefs, through such statements and representations, that product in question was remedy or competent, safe .and adequate treatment for ailments for which recommended and advertised as aforesaid and had been approved by research bureau with official connection with said city or State, and that COilJOration aforesaid was manufacturer or compounder thereof, and intp purchase of said preparation because of erroneous and mistaken beliefs thus engell(lPred, and of thereby unfairly diverting trade to said corvomtions first refcrrPd to from competitors engaged in sale and distribution of l'<imilnr products or prpparations designed and intended for similar usc in treating ailments for which said ''Retardo" was recommended, and who trntllfully repre~Pnt ingredients, safety and effectiveness of their respe~tive products and their own business status with re,:pect to being manufacturers or having any offidal connection with any State or local gm·ernmental bureaus, and with rcsnlt that injury was thereby done by three corpor~tions afore;;ald and hy individual in question, who directed and controlled them in such acts and practices, to competition in commerce among the various States: Jfeld, That such acts and practices, under the circum~tmwes set forth, were all to the prejudice of the public and competitors and constituted unfair methods of competition.

Before Mr. John J. J{pe.nrw, tt·ial t>examiner. Mr. John R. P.hillip.Y, Jr. for the Commission. 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 American Clinical Laboratories, Inc., Official Research Bureau of New York, Inc., and Federal Research Corporation, corporations, and Shelley Braverman, an individual, hereinafter-r referred to as respondents, have violated the provisions of the 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 ns follows:

AMERICAN CLINICAL LABORATORIES, INC., ET AL. 1391 1389 Complaint PARAGRAPH 1. The respondents .American Clinical Laboratories, Inc., Official Research Bureau of New York, Inc., and Federal Research Corporation are corporations organized, existing, and doing business under and by virtue of the laws of the State of New York, and having their respective offices and principal places of business at 149-50 Roosevelt Avenue, in the Borough of Queens, in the city and State of New York. The respondent Shelley Braverman is an individual, and has his office and place of business at 149-50 Roosevelt Avenue, in the Borough of Queens, in the city and State of New York. Respondent Shelley Braverman owns the majority of the stock in respondent American Clinical Laboratories, Inc., and respondent Federal Research Corporation, and owns all the stock in respondent Official Research Bureau of New York, Inc., and directs and controls the sales activities and policies of said respondents with respect to the acts and practices herein set forth. PAR. 2. The respondents American Clinical Laboratories, Inc., and Federal Research Corporation are now, and have been for more than 3 years last past, engaged in the business of selling and distributing a medicinal preparation designated "Retardo." The respondents American Clinical Laboratories, Inc., and Federal Research Corporation cause said preparation, when sold, to be shipped and transported from their aforesaid places of business in the State of New York to the purchasers thereof at their respective points of location in States of the United States other than the State of New York, and also in the District of Columbia. The said respondents maintain a course of trade and commerce in said preparation among and between the various States of the United States and in the District of ·Columbia.

PAR. 3. In course of the operation of their businesses as aforesaid, the respondents American Clinical Laboratories, Inc., and Federal "Research Corporation are engaged in substantial competition with other corporations and with partnerships, firms, and individuals distributing and se.lling, or manufacturing, distributing, and selling ·similar medicinal preparations, or other preparations designed and intended for similar usage or for treatment of similar ailments and conditions of the human body, in commerce among and between the various States of the United States and in the District of Columbia. PAR. 4. In the course and conduct of their business of sellin..., the preparation "Retardo" in commerce as herein described, and"" in furtherance of the sale thereof, the respondents American Clinical Laboratories, Inc., and Federal Research Corporation, during the times mentioned herein, caused statements and representations to :appear in ne:wspnpers, bulletins, and publications having an inter- 1392 FEDERAL TRADE COl\IMISSION DECISIONS Complaint 29F. T. C.

state circulation, and the respondent American Clinical Laboratories, Inc., caused statements and representations to be made in radio broadcasts having an interstate circulation, purporting to be descripti•e of said preparation and of its effectiveness in use. In furtherance of the sale of such preparation, and to create a public demand therefor, the respondent American Clinical Laboratories, Inc., during the times mentioned herein, made, or caused to be made, the following statements and representations in various newspapers, periodicals, bulletins, publications, and radio broadcasts having an interstate circulation:

Retardo Is absolutely free of all harmful ingredients and furthermore requires no dieting.

Weight reduction with Retardo is safe.

Retardo Is the newest discovery for the reduction of excess weight. You take one little, tasteless Retardo tablet followed by a glass of water thirty minutes later. This method Is so simple, so satisfying, so effective and so economical, that thousands of happy men and women use Retardo each and every day throughout the civilized world.

Every day people are reporting losses of from eight to twenty pounds a month. I'll tell you a secret. I haven't dieted. I have been using the Retardo method. You can eat what you want and you don't have to diet or exercise. Take one Retardo tablet after each meal.

In furtherance of the sale of such preparation, and to create a public demand therefor, the respondent Federal Research Corporation, during the times mentioned herein, made, or caused to be made, the following statements and representations in newspapers, bulletins, and publications having an interstate circulation: Retardo ts helping thousands of users all over the United, States to rid them· selves of excessive, unwanted fat-and these people are eating three solid, full meals a day. They are not dieting and are not undertaking strenuous and boring exercises. They do, however, take one little Retardo tablet after each meal, and follow the simple directions.

Retardo is reliable in treatments of obesity. This safe way of aiding your body in reducing lts excess fat. Without dieting.

Retardo tablets * * * contain no dangerous drugs. The aforesaid statements, together with many others similar thereto, not set out herein, but of the same tenor and meaning, serve as representations on the part of the respondents American Clinical Laboratories, Inc., and Federal Research Corporation to members of the purchasing public: ( 1) That the use o£ said preparation is a safe method for losing a substantial amount of weight; (2) that the use of such preparation is a competent, effective, and reliable method for losing a substantial amount of weight; (3) that the use of said preparation will reduce weight without dieting or exercise; ( 4) that AMERICAN CLINICAL LABORATORIES, INC., ET AL. 1393 1380 Complaint such preparation contains no harmful or dangerous drugs. The respondent American Clinical La.boratories, Inc., makes the additional representation in the aforesaid statements that "Retardo" is the newest discm·ery for the treatment of excess weight. The use of the word "laboratories" by respondent American Clinical Laboratories, Inc., as a part of its name or designation in the aforesaid statements and representations serves as a representation by the said respondent to members of the purchasing public .that said respondent is the manufacturer or compounder of the preparation "Retardo."

The respondent American Clinical Laboratories, Inc., and the respondent Official Research Bureau of New York, Inc., have made, or caused to be made, in various of the aforesaid advertisements, the statement that the preparation "Retai:do" has been "Approved by the Official Research Bureau of New York" and have reproduced, or caused to be reproduced, a seal on the various other of said advertisements, and to be inserted on such seal the words "Seal of Approval, Official Research Bureau of New York." Such use of the words "Official Research Bureau of New York" and particularly the use of the word "Official" and such use of a seal and the words "Seal of Approval, Official Research Bureau of New York" serves as a representation by the said respondent to members of the purchasing public that such preparation has been approved by a research bureau having an official connection with the city or State of New York. PAR. 5. In truth and in fact the use of such preparation is not a safe method for losing a substantial amount of weight. The preparation contains a substan£ial amount of boric acid, which has a potential toxic property and is cumulative in action if taken in daily or frequent doses. The purchaser of such preparation is instructed by the respondents American Clinical Laboratories, Inc., and Federal Research Corporation, in the advertising above referred to, to take aretardo tablet after each meal for a period of weeks. I£ such preparation is taken according to such directions of the said respondents, a large number of such users of the preparation will manifest toxic effects because of such use. Such preparation is not the newest discovery for the treatment of excess weight. The use of such preparation is not a competent, effective, or reliable method for losing a substantial amount of weight. The only competent, reliable, safe, and effective method for losing a substantial amount of weight is proper exercise and diet. Such preparation does contain a harmful or dan· gerous drug in that the boric acid contained in such preparation is a harmful drug when such preparation is taken in the amounts and QYer the period of time as directed by the said respondents. Such DECISIO~S1394 FEDERAL TRADE Cmll\IISSION Complaint 2DF. T.C.

preparation has not been approved by a research bureau having an official connection with the city or State of New York. The respondent Official Research Bureau of New York, Inc., has no official connection with the city or the State of New York. In truth and in fact, the said preparation has no substantial therapeutic value as a remedy or cure for, or as a treatment for, obesity. All the aforesaid statements and representations of respondents American Clinical Laboratories, Inc., and Federal Research Corporation relative to the therapeutic value of the preparation "Retardo" are grossly inaccurate, incorrect, and exaggerated and are not true statements of the therapeutic value of the preparation "Retardo." The respondent American Clinical Laboratories, Inc., is not the manufacturer or compounder of the preparation "Retardo." The said respondent purchases said prl;lparation from the manufacturer or compounder thereof and acts as a middleman in distributing such preparation in commerce as herein described. There are a substantial number of members of the purchasing public who prefer to purchase merchandise direct from the manufacturer in the belief that by eliminating the profit of the so-called "middleman" in such merchandise that they will procure a substantial financial saving and various other advantages.

PAR. 6. The aforesaid statements and representations (1) by respondent American Clinicri1 Laboratories, Inc., and by respondent Fed!:'ral Research Corporation relative to the efficacy of the preparation "Retardo"; (2) by respondent American Clinical Laboratories, Inc., and by responden't Official Research Bureau of New York, Inc., relative to the preparation "Retardo" being approved by a research bureau having an official connection with the city or State of New York; (3) by the respondent American Clinical Laboratories, Inc., relative to the said respondent being the manufacturer or compounder of such preparation; have a tendency and capacity to and do confuse, mislead, and deceive )\lembers of the purchasing public into the erroneous and mistaken beliefs respectively that (1) the prepara· tion "Retardo" is a remedy or a competent, safe, and adequate treatment for the ailments of the human body for which said preparation is recommended and advertised as aforesaid; (2) such preparation has been approved by a research bureau having an official connection with the city or State of New York; and (3) the respondent Ameri~ can Clinical Laboratories, Inc., is the manufacturer or compounder of such preparation and into the purchase of such preparation because of said erroneous and mistaken beliefs so engendered. Trade is thereby diverted unfairly to the respondents American Clinical Laboratories, Inc., and Federal Research Corporation from their said AMERICAN CLINICAL LABORATORIES, INC., ET AL. 1395 J389 Findings competitors who are engaged in the sale and distribution of similar preparations, or other preparations, designed and intended for similar usage in treating the ailments of the human body for which said preparation "Retardo" is recommended, and who trutnfully represent the ingredients, safety, and effectiveness of their respective. preparations and their own business status with respect to being manufacturers or having any official connection with any state or local governmental bureaus. In consequence thereof injury has been done hnd is being done by respondent; American Clinical Laboratories, Inc., Federal Research Corporation, and Official Research Bureau of New York, Inc., and by respondent Shelley Braverman who directs and controls said respondents in the aforesaid acts and practices, to competition in commerce among and between the various States o£ the United States.

PAR. 7. The aforesaid acts and practices of the respondents as herein alleged are all to the prejudice of the public and of respondents' competitors, and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTs, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on l\fay 10, 1938, issued, and on l\fay 13, 1938, served, its complaint in this proceeding upon the respondents, American Clinical Laboratories, Inc., Official Research Bureau of ·New York, Inc., Federal Research Corporation, and Shelley Braverman, 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 thereto, testimony and other evidence in support of the allegations of the complaint were introduced by John R. Phillips, Jr., attorney for the Commission, before John J. Keenan, an examiner of the Commission thereto-fore duly designated by it, and said testimony and other evidence were duly recorded and filed in the office of the Comnusswn. Subsequently the Commission, by order entered herein, gmnted respondents' motion for permission to 'vithdraw the answer })revionsly filed and to substitute therefor an answer read into the record on J nne 16, 1039, which answer admitted all of the material allegations of fact set. forth in the complaint and waived all intervening procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on said complaint, the substitute answer and testimony and Findings 29F.T.C.

·other evidence, and the Commission having duly considered the matter and being now fully advised in the premises finds that this pro- ·eeeding 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. The corporate respondents Amel"ican Clinical Labor-atories, Inc., Official Research Bureau of New York, Inc., and Federal Research Corporation are corporations organized, existing, and doing business under and by virtue of the laws of the State of New York, and having their respective offices and principal places of business at 149-50 Roosevelt A venue, in the Borough of Queens, in the city and State of New York. The respondent Shelley Braverman is an individual, and has his office and place of business at 149-50 Roosevelt Avenue, in the Borough of Queens, in the city and State of New York Respondent Shelley Braverman owns the majority of the stock of American Clinical Laboratories, Inc., and Federal Research Corporation, and owns all the stock of Official Research Bureau of New York, Inc., and directs and controls the sales activities and policies of said respondents with respect to the acts :md practices herein set forth.

PAn •• 2. The respondents American Clinical Laboratories, Inc., and Federal Research Corporation are not, and have been for more than 3 years last past, engaged. in the business of selling and distributing a medicinal preparation designated "Retardo." The re- ·spondents American Clinical Laboratories, Inc., and Federal Research Corporation cause said preparation, when sold, to be shipped and transported from their aforesaid places of business in the State of New York to the purchasers thereof at their respective points of lo- -cation in States of the United States other than the State of New York, and also in the District of Columbia. The said respondents maintain a course of trade and commerce in said preparation among and between the various States of the United States and in the District of Columbia.

PAR. 3. In course of the operation of their businesses as aforesaid, the respondents ·American Clinical Laboratories, Inc. and Federal Research Corporation are engaged in substantial competition with other corporations and with partnerships, firms, and individuals distributing and selling, or manufacturing, distributing, and selling similar medicinal preparations, or other preparations designed and intended for similar usage or for treatment o£ similar ailments and conditions o£ the human body, in commerce among and between the various States of the United States and in the District of Columbia. Al\IERICAN CLINICAL LABORATORIES, INC., ET AL. 1397" 1389 Findings PAR. 4. In furtherance of the sale of such preparation, Retardo,. and to create a public demand therefor, the respondent American Clinical Laboratories, Inc., during the times mentioned herein, made, or caused to be made, the following statements and representations in various newspapers, periodicals, bulletins, publications, all having a general circulation among and between the various States of the United States, and in radio continuities, broadcast from stations having sufficient power to convey their programs to persons located in States other than those wherein said broadcasts originate. Retardo is absolutely free of all harmful ingredients and furthermore requires" no dieting.

Weight reduction with Retaruo is safe.

Retardo is the newest discovery for the reduction of excess weight. You take one little, tasteless Itetardo tablet followed by a glass of water· thirty minutes later. This method is !'O simple, so satisfying, so effective andso economical, that thousands of happy men and women use Retardo each and every day throughout the civilized world.

Every day people are re11orting losses of from eight to twenty pounus a· month.

I'll tell you a secret. I haven't dieted. I have been using the Retardomethod. You can eat what you want and you don't have to diet or exercise. Take one Retardo tablet after each meal.

In furtherance of the sale of such preparation, Retardo, and to create a public demand therefor, the respondent Federal Research Corporation, during the times mentioned herein, made, or caused to be made, the following statements and representations in newspapers,. bulletins, and publications, all having a general circulation among and between the various States of the United States. Retardo is helping thousands of users all over the United States to rid them· selves of excessive, unwanted fat-11nd these people are eating three solid, full meals a day. They are not dieting and are not undertaking strenuous and boring exercises. They do, however, take one little Retardo tablet after each meal, and follow the simple directions.

Retardo is reliable in treatments of obesity. This safe way of aiding your body in reducing its excess fat. Without dieting.

Retardo tablets • "' "' contain no dangerous drugs. The aforesaid statements, together with many others similar thereto, not set out herein, but of the same tenor and meaning, serve as representations on the part of the respondents American Clinical . Laboratories, Inc., and Federal Research Corporation to members of the purchasing public: (1) That the. use of said preparation is a safe method for losing a substantial amount of weight; (2) that the use of such preparation is a competent, effective and reliable method for losing a substantial amount of weight; (3) that the use of said 1398 FEDERAL TRADE COl\Il\IISSION DECISIONS Findings 29F.T. C.

preparation will reduce weight without diet or exercise; ( 4) that such preparation contains no harmful or dangerous drugs. The re- ·spondent American Clinical Laboratories, Inc., makes the additional representation in the aforesaid statements that "Retardo" is the ·newest discovery for the treatment of excess weight. The use of the word "laboratories" by respondent American Clini- -cal Laboratories, Inc., as a part of its corporate name serves as a representation by the said respondent to members of the purchasing public that said respondent is the manufacturer or compounder of the preparation "Retardo."

The respondent American Clinical Laboratories, Inc., and the re- -spondent Official Research Bureau of New York, Inc., have made, and caused to be made, in various of the aforesaid advertisements, the statement that the preparation "Retardo" has been "Approved by the Official Research Bureau of New York" and have reproduced, or caused to be reproduced, a seal on the various other of said advertisements, and to be inserted on such seal the words '1Seal of Approval, Official Research Bureau of New York." Such use of the words "Official Research Bureau of New York" and particularly the use of the word "Official" and such use of a seal and the words "Seal of Approval, Official Research Bureau of New York" serves as a representation by the said respondents to members of the purchasing public that such preparation has been approved by a research bureau having an official connection with the city or State of New York. PAR. 5. In truth and in fact the use of such preparation is not a safe method for losing a substantial amount of weight. The preparation contains a substantial amount o£ boric acid, which has a potential toxic property and is cumulative in action if taken in daily or frequent closes. The purchaser of such preparation is instructed by the respondents American Clinical Laboratories, Inc., and Federal Research Corporation, in the advertising above referred to, to take a Retardo tablet after each meal for a period of weeks. If such preparation is taken according to such directions of the said respondents, a large number of such users of the preparation will manifest toxic effects because of such use. Such preparation is not the newest discovery for the treatment of excess weight. The use of such preparation is not a competent, effective, or reliable method for losing a substantial amount of weight. The only competent, reliable, safe, and effective method for losing a substantial amount of weight is · proper exercise and diet. Such preparation does contain a harmful or dangerous drug in that the boric acid contained in such preparation is a harmful drug when such preparation is taken in the amounts and over the period of time as directed by the said respondents. AMERICAN CLINICAL LABORATORIES, INC., ET AL. 1399 138!) Findings Such preparation has not been approved by a research bureau having an official connection with the city or State of New York. The respondent Official Research Bureau of New York, Inc., has no official connection with the city or the State of New York. In truth and in fact, the said preparation has no substantial therapeutic Yalue as a remedy or cure for, or as a treatment for, obesity. All the aforesaid statements and representations of respondents American Clinical Laboratories, Inc., and Federal Research Corporation relative to the therapeutic value of the preparation ''Retardo" are grossly inaccurate, incorrect, and exaggerated and are not true statements of the therapeutic value of the preparation '~Retardo." The respondent American Clinical Laboratories, Inc., is not the manufacturer or compounder of the preparation "Retardo." The said respondent purchases said preparation from the manufacturer or compounder thereof and acts as a middleman in distributing such preparation in commerce as herein described. There are a substantial number of members of the purchasing public who prefer to purchase merchandise direct from the manufacturer in the belie£ that by eliminating the profit of the so-called "middleman" in such merchandise that they will procure a substantial financial saving and various other advantages.

PAR. 6. The aforesaid statements and representations (1) by respondent American Clinical Laboratories, Inc., and by respondent Federal Research Corporation relative to the efficacy of the preparation "Retardo''; (2) by respondent American Clinical Laborat<lries, Inc., and by respondent Official Research Bureau of New York, Inc., relative to the preparation "Retardo" being approved by a research bureau having an official connection with the city or State of New York; ( 3) by the respondent American Clinical Laboratories, Inc., relative to the said respondent being the manufacturer or compounder of such preparation; have a tendency and capacity to and do confuse, mislead, and deceive members of the purchasing public into the erroneous and mistaken beliefs respectively that ( 1) the preparation '~Retardo" is a remedy or a competent, safe, and adequate treatment for the ailments of the human body for which said preparation is recommended and advertised as aforesaid; (2) such preparation has been approved by a research bureau having an official connection with the city or State of New York; and (3) the respondent American Clinical Laboratories, Inc., is the manufacturer or compounder of such preparation and into the purchase of such preparation because of said erroneous and mistaken beliefs so engendered. Trade is thereby diverted unfairly to the respondents American Clinical Laboratories, Inc., and Federal Research Corporation from their said 1400 FEDERAL TRADE CO:i\Il\IJSSION DECISIONS Order 29F. T.C..

competitors who are engaged in the sale and distribution of similar preparations or other preparations, designed, and intended for similar usage in treating the ailments of the human body for which said preparation "Retardo" is recommended, and who truthfully represent the ingredients, safety, and effectiveness of their respective preparations and their own business status with respect to being manufacturers or having any official connection with any state or local governmental bureaus. In consequence thereof injury has been done and is being done by respondents American Clinical Laboratories, Inc., Federal Research Corporation, and Official Research Bureau of New York, Inc., and by respondent Shelley Braverman who directs and controls said respondents in the aforesaid acts and practices, to competjtion in commerce among and between the various States of the United States.

CONCLUSION The aforesaid acts and practice.s of the respondents as herein found are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, testimony, and other evidence, and the respondents' answer read into the record herein on .June 16, 1939, in which answer respondents admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, American Clinical Laboratories, Inc., and Federal Research Corporation and their officers, and respondent Shelley Braverman, an individual, and their respective agents, servants, representatives, and employees, in connection with the offering for sale, sale, and distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act, of a medicinal preparation for the treatment o£ obesity, now known as "Retardo,'' whether sold under that name or under any other name, or of any other medicinal preparation containing substantially similar ingredients or possessing substantially similar therapeutic effect, do forthwith cease and desist from :

AMERICAN CLINICAL LABORATORIES, INC., ET AL. 1401 1389 Order 1. Representing that the use o£ said preparation "Retardo" is a Eafe, competent, effective or reliable method of treatment for losing weight.

2. Representing that the use of said preparation "Retardo" will reduce weight without dieting or exercise. 3. Representing that said preparation "Retardo" is the newest dis- ·covery for the reduction of excess weight. 4. Representing, through failure to reveal that said preparation is not wholly safe for U!:ie in self-medication or through any other means {)I' device, or in any other manner, that said preparation "Retardo" -contains no harmful or dangerous drugs, and that the use of said preparation will have no ill effects upon the human body. It is further ordered, That respondents, American Clinical Laboratories, htc., and Official Research Bureau of New York, Inc., corporations, and Shelley Braverman, an individual, and their respective .ttgents, sen·ants, representatives, and employees, in connection with the offering for sale, sale, alll distribution in commerce, as commerce is defined in the Federal Trade Commission Act, of a mediciltal preparation for the treatment of obesity, now known as "Retardo," \vhether sold under that name or under any other name, or of any {)ther medicinal preparation containing substantially similar ingredients or possessing substantially similar therapeutic effect, do forthwith cease and desist from:

Representing, through the use of the terms ".Approved by the Offi- <'ial Research Bureau of New York" or "Seal of Approval, Official Research Bureau of New York" or through the use of the eorpornte 11ame "Official Researeh Bureau of New York, Inc.," to designate, describe, or refer, in any way, to said preparation "Retardo,··' or through any other means or device or in any other manner, tha.t said preparation has been approved by any researeh bureau having an official connection with the city or State of New York, or has been ~tpprond by any municipal, State, or Governmental agency or bureau whatsoever, until and unless said preparation has in fact received such approval.

It is further ordered, That respondents, American Clinical Laboratories, Inc., a corporation, and Shelley Braverman, an individual, and their respective agents, servants, representatives, and employees, in connection with the offering for sale, sale, and distribution in commerce, as commerce is defined in the Federal Trade Commission Act, Qf a medicinal preparation for the treatment of obesity, now known as "Retardo," whether sold under that name or under any other namer or of any other medicinal preparation containing substantially simi- 1402 FEDERAL TRADE CO}Il\USSION DECISIONS Order 2UF. T.C.

1ar ingredients or possessing substantially similar therapeutic effect, do forthwith cease and desist from:

Representing, through the use of the term "Laboratories" in the corporate name of respondent, American Clinical Laboratories, Inc., or in any other manner, or through the use of any other term of similar meaning, or through any other means or device, that the respondent, American Clinical Laboratories, Inc., conducts, operates, or maintains a laboratory, or is the manufacturer or compounder of the preparation "Retardo," unless and until said corporate respondent actually owns and operates, or directly or absolutely controls, a laboratory for the purpose of manufacturing, testing, and experimenting with such preparation.

It is fwrther ordered, That the respondents shall, within 60 days after service upon them of this' order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with this order.

THE PEIU\IA-1\IAID CO., I:NC. 1403 Syllabus