Roxanna Canning Co

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IN THE MATTER OF ROXANNA CANNING COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3904. Oom.plaint, Sept. 30, 1939-Decision, Apr. 29, 1940 Where a corporation engaged in manufacture of dog food and in sale and distribution under various trade nam·es of various brands thereof, to purchasers in various other States and in the District of Columbia, in substantial competition with others engaged in sale and distribution of such foods in commerce as aforesaid- Represented that its said various brands contained beef byproducts, ground beef bone or beef, and that its dog food was a scientifically balanced ration and scientifically balanced beef ration for dogs, through such statements and representations, with respect to ingredients and efficacy of said dog foods, as "Blackspot Brand. A Scientifically Balanced Beef Ration," "Dog Food. Contains Beef By-Products * • * Ground Beef Bone • * *," and "Harty Bmnd. A Scientifically Balanced Ration," "Contains Beef By- Products * • • Ground Beef Bone "' • • ," facts being its said products did not contain such ingredients and were neither scientific nor balanced ration~, or scientifically balanced beef rations; With tendency and capacity to mislead and deceive substantial part of purchasing and consuming public into erroneous and mistaken belief that said representations were true, and with consequence, as result of such mistaken and erroneous belief, that such public purchased substantial amount of its said products, and trade was unfairly deverted to it from its competitors engaged in manufacture, sale, and distribution of similar products and who truthfully represent character and ingredients thereof; to the substantial injury of com·petition in commerce: Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and competitors, and constituted unfair methods of competition in commerce and unfair and deceptive acts and practices therein.

Mr. S. Brogdyne Teu, II for the Commission. COMPLAINT Pursuant to the provisions o£ the Federal Trade Commission Act, and by virtue o£ the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Roxanna Canning Co., 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:

PARAGRAPH 1. Respondent Roxanna Canning Co. is a corporation organized, existing, and doing business under and by virtue of the laws ROXANNA C'ANNING 00. 1073 1072 Complaint of the State of Ohio and having its principal office and place of business in the city of Lebanon, State of Ohio. PAR. 2. Respondent is riow and for several years last past has been engaged in the sale and distribution of various brands of dog food, which it sells under the trade names of Harty Dog Food Co. and Dodds Packing Co. For this purpose the respondent maintains a factory and place of business in the city of Dodds, State of Ohio. Respondent causes said dog food, when sold, to be transported from its place of business in the State of Ohio to the purchasers thereof located in various other States of the United States, and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said dog food in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its business as aforesaid, respondent is now and during all the times mentioned hetein, has been engaged in substantial competition with other corporations and with firms, individuals, and partnerships selling and distributing dog foods in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 4. In the course and conduct of its aforesaid business, the respondent has made false, deceptive, and misleading statements and representations with reference to the ingredients of its various brands of dog food and their efficacy as a ration for dogs. Among and typical o:f such false, deceptive, and misleading representations made by the respondent are statements concerning its said products appearing on labels attached to the containers and cartons in which said products are packed and sold, as follows:

BLACKSPOT DOG BLACKSPOT Brand FOOD Brand A Scientifically Contains Beef By-Prod- A Scientifically Balanced ucts Cereal Composed of Balanced BEEF RATION Wheat, Corn, Oats, and BEEF RATION Soy Bean Products, Ground Beef Bone, Beef, DOG FOOD Carrots, Salt and Cod DOG FOOD Liver Oil Prepared in Broth. Guaranteed to contain not less than 8 Net Weight lib. percent Protein, 2 per- Net Weight lib. WHOLESOME AND cent fat and not over 2 WHOLESOME AND NUTRITIOUS percent Fiber. NUTRITIOUS Distributed by DODDS PACKING CO.

Lebanon, Ohio.

1074 FE-DERAL TRADE- COMMISSION DE·CISIONS Complaint 30F. T. C. HARTY DOG HARTY Brand FEED Wholesome-Nutritious Contains Beef By-Pmducts Cereal Composed of Keeps your Dog Wheat, Corn, Oats, and A. Scientifically Healthy and Hearty Soy Bean Products, Balanced Ration Ground Beef Bone, Beef, Carrots, Salt and Cod Net Weight One Pound Liver Oil Prepared in Net Weight One Pound Broth and added water sufficient to process the product properly, gum·anteed to contain not less than 10% protein, 2% fat and not over 1%% fiber or 74% water.

Distributed by DODDS P A.CKING CO.

Waynesville, Ohio.

Through the use of the aforesaid representations, and others similar thereto not specifically set out herein, the respondent has represented and does now represent that its aforesaid Harty Brand and Blackspot Brand dog foods contain beef byproducts, ground beef bone and beef, and that its dog foods are scientifically balanced rations, and scientifically balanced beef rations.

PAR. 5. The aforesaid statements and representations by respondent relative to said dog foods are false, misleading, and untrue. In truth and in fact, the respondent's dog foods do not contain beef byproducts, ground beef bone, or beef, and are not scientifically balanced rations or scientifically balanced beef rations. PAR. 6. The use by the respondent of the aforesaid false and misleading statements and representations has had and now has the tendency and capacity to and does mislead and deceive members of the purchasing public into the erroneous and mistaken belief that said statements and representations are true and into the purchase of substantial quantities of respondent's dog food because of such erroneous and mistaken belief. As a direct result thereof, trade in commerce between and among the various States of the United States and in the District of Columbia has been diverted unfairly to the respondent from its said competitors who are likewise engaged in the sale and distribution of dog foods in commerce between and among the various States of the United States and who do not falsely represent the ingredients of thefr products. As a consequence thereof, injury has been and is now being done by respondent to competition in commerce between and among the various States uf the United States and in the District of Columbia.

ROXANNA CANNING 00. 1075 1072 Findings PAR. 7. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice and injury of the public and of respondent's competitors and constitute unfair methods of competition in commerce and 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 September 30, 1939, issued and on October 1, 1939, served its complaint in this proceeding upon respondent Roxanna Canning Co., a corporation, charging it with the use of unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer, the Commission by order entered herein granted respondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, which substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and substitute answer 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 is a corporation organized, existing and doing business under and by virtue of the laws of the State of Ohio. Its principal office and place of business is located in the city of Lebanon, State of Ohio.

Respondent is now and for some time past has been engaged in the sale and distribution of various brands of dog food which it sells under various trade names. For the purpose of manufacturing its dog food respondent operates and maintains a plant located in the city of Dodds, State of Ohio. Respondent causes said dog food, when sold, to be transported from its place of business in the State of Ohio to the respective purchasers thereof located in various States of the United States other than the State of Ohio and in the District of Columbia. The respondent maintains and at all times mentioned herein has maintained a course of trade in said dog food in commerce between and among the various States of the United States and in the District of Columbia. 1076 FE-DERAL TRADE COMMISSION DECISIONS Findings 30F.T.C.

PAR. 2. Respondent is now and during all the times mentioned herein has been engaged in substantial competition with other corporations and with firms, individuals, and partnerships selling and distributing dog foods in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of its said business, as aforesaid, respondent has made false, deceptive and misleading statements and representations concerning the ingredients of which its various brands of dog food are made and with regard to the efficacy of said dog foods as a ration for dogs. Typical of the false, deceptive, and misleading representations so made by the respondent concerning its dog food are the following :

BLACK SPOT DOG BLACKS POT Brand FOOD Brand A Scientfically Contains Beef By-Prod- A Scientfically Balanced ucts Cereal Composed of Balanced BEEF RATION Wheat, Corn, Oats and BEEF RATION Soy Bean Products, Ground Beef Bone, Beef, DOG FOOD Carrots, Salt and Cod DOG FOOD Liver Oil Prepared in Broth. Guaranteed to Net Weight lib. contain not less than 8 Net Weight lib. WHOLESOME AND percent Protein, 2 per- WHOLESOME AND NUTRITIOUS cent fat and not over 2 NUTRITIOUS percent Fiber.

Distributed by DODDS PACKING CO.

Lebanon, Ohio.

HARTY DOG HARTY Brand FOOD Wholesome-Nutritious Contains Beef By-Products Cereal Composed of Wheat, Corn, Oats and Soy Bean Products, Ground Beef Bone, Beef, Carrots, Salt and Cod Keeps your Dog Liver Oil Prepared in A Scientifically Healthy and Hearty Broth and added water Balanced Ration sufficient to process the product properly, guaranteed to contain not less than loo/o protein, 2o/o fat and not over 1!/zo/o fiber Net Weight One Pound or 74o/o water. Net Weight One Pound Distributed by DODDS PACKING CO.

Waynesvllle, Ohio.

ROXANNA CANNING 00. 1077 1072 Order Through the use by the respondent of the above set out representations and others not herein set out respondent has represented and now represents that its various brands o£ dog foods contain bee£ byproducts, ground bee£ bone, and bee£, and that its dog food is a scientifically balanced ration, and scientifically balanced bee£ ration for dogs. PAR. 4. In truth and in fact the representations and statements made by the respondent with regard to its dog foods are false and misleading. Respondent's dog foods do not contain beef byproducts, ground beef bone, or beef, and are not scientifically balanced rations or scientifically balanced beef rations.

PAR. 5. The use by respondent of the aforesaid false and misleading representations and statements in connection with the sale and distribution of its Black Spot and Harty dog food products has had and now has the tendency and capacity to mislead and deceive a substantial part o£ the purchasing and consuming public into the erroneous and mistaken belief that said representations are true. As a result of such mistaken and erroneous belief the purchasing and consuming public have purchased a substantial amount of respondent's products with the result that trade has been unfairly diverted to respondent from its competitors engaged in the manufacture, sale and distribution o£ similar products, which competitors truthfully represent the character: and ingredients of their respective products. As a consequence thereof substantial injury has been and is being done by the respondent to competition in commerce between and among the various States of the United States and in the District of Columbia. CONCLUSION The aforesaid acts and practices of the respondent as herein found are all to the prejudice and injury of the public and of respondent's competitors and constitute unfair methods of competition in commerce and unfair and deceptive acts and practices 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 and the answer o£ the respondent, in which answer respondent admits all the material allegations o£ fact set forth in said complaint, and states that it waives 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 respondent has violated the provisions of the Federal Trade Commission Act.

1078 FE-DERAL TRADE COMMISSION DE.OISIONS Order 30F.T.C.

It is ordered, That the respondent, Roxanna Canning Co., a corporation, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of its food for dogs known as Black Spot and Harty dog foods, or any other product containing substantially similar ingredients, whether sold under the same name or under any other name or names, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

·1. Using the terms "beef byproducts" or "ground beef bone" or "beef" or any other term of similar import or meaning to designate or describe any ingredients of such products which ingredients are not in fact, respectively, beef byproducts, ground beef bone, or beef. 2. Representing that such products are scientifically balanced rations or scientifically balanced beef rations.

It is fwrther 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.

ERWIN RE·ATHE'R QUILT CO. 1079 Syllabus