Dan M. Thompson, doing business as Danson Laboratories and Thompson Laboratories

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IN THE ~Lo\'ITER OF DAN ~I. THOMPSON, DOING BUSI~ESS AS DANSON LABOHA TO HIES AND THO~IPSON LABORATORIES COM !'J,.\IN'l', FINDINGS, A :"'V OHIJER I:'\ Rl·;lL\I{V TO 'flflo} ALLE<:Io:D YIOLATIOX" 01•' SEt'. :> OF AN .\CT OF COX<lRESS .\l'l'UO\'Ell SEPT. :.!\\, 1\IH Docket 875.!. Com1ilainf, Jlar. J 1, /9.1!1-lJcd.~iou, June 29, 1940 'Vhen• an inuividnal engagt>d In "ule utul tli,.,trial.motion of his Danson Formula. nwdieinal prto>pnrutiou, :HlYto>t'tiliPIIunll ~old as cure for alcoholi>'m or urnnkenness, to purcha,;er,; in 10 or 1~ States other thnn ~tate of Illinois, or place of bu::;iJJPI"s, lltHl including l\Iinnesotu, ~li ouri, und Ohio, in which hecirculated his udwrtising and labels os Llt'low set forth- ( a) Rl·preNL·utptf through tHlYertisto>ment" in ntrious new,.:papers n u<l other IJUh· llcations, und through eirculnrs Sf'nt through the mails and circular letter~. that his said Danson Formula cC>nstltnted a remedy or <·ntf> for alcolwlism and that it wns n compete:'nt and effl•ctivc:' treatment for !'llid condition or t..lrunk<'mle;;;;, fllHl countc:'rnetetl de,.:!re for uleol10lic t<tlmnlatlon and relieved craving therefor;

Facts ueiug his said prolluet, uetiYe llrn~ iugreuieut of which was a sedative, wus not n remedy or cure for either ll(·ute l>r chronic n koltoli>'m, requiring separate trenhll<'llts and also, in ~<ome ruse;;, diffl•rent tr<'atments in cases of same type', and it would not relic:'ve craving fnr sneh stimulation Ol' counteract dt>iiil'<' thf'f<'for, or have any ,-alone as a comvetent or effective treatment for alcoholism in excess of its vulne as n sedative for quieting net·ves; and· ( IJ) ll<'presented through n!:ie of word "Laboratories," as ineluued by him In his trndt> names and disvlayed on labels attached to his product, that he conduct<'d a Inborn tory in connection with his said busilwss; Facts being he did not own or operate a laboratory or m~e nny laborntory f'l}uipnwnt in connedion with the business in question; With effect of misleading nnd deceiving substantiltl portion of purchasing public into erroneous und mistaken belief that such represc:'ntntious were true, and into purl'hn><e of subHtantlulquuutity of said product: Jlcld, That snl'h ults tlllll pra('tlces, und<'r the cireumstances set forth, were all to the preju!lic·e and injury of tit<' public and conf:titntC'<l uufafr and dcc:'pti\·e acts n nrl rwat>tices in comnwrce.

miners~ Before Mr. Joltn J. /{eenan und Jflo. Lewis 0. R118.~e1l1 trial ex» Jfr. Dewitt T. Pud·ett for the Commisf>ion. Colli PLAINT Purl'uant 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 heliew that Dan M. Thompson, an individual doing business as Danson Laboratories und Thompson Laboratories, hereinafter referred to as re~pondent, has violated t l1e provisions of the said act, and it appearing to the C'onuni~o-sion that a Complaint 31Jt'. T.C. 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, Dan M. Thompson, is an individual doing business as Danson Laboratories and Thompson Laboratories at 32 North State Street, Chicago, Ill. He is engage9. in the sale and distribution of a medicinal preparation called "Danson Formula," an alleged cure for alcoholism or drunkenness, said medicinal preparation constituting a drug within the intent and meaning of the Federal Trade Commission Act.

Respondent now causes, and for more than 1 year last past has caused, his said medicinal preparation, when sold by him, to be shipped from his said place of business in Chicago, Ill., to the purchasers thereof located in the various States of the United States, other than the State of Illinois, and in the District of Columbia. There is now, and has been at all times mentioned herein, a course of trade in said medicinal preparation so sold and distributed by respondent in commerce between nnd among the various States of the United States antl in the District of Columbia.

PAR. 2. In the course and conduct of his aforesaid business, the respondent has disseminated and is now disseminating, and has caused nnd is now causing the dissemination of false advertisements concerning his said product, by Unitetl States mails, by insertion in newspapers and periodicals having a general circulation anll also in circulars and other printed or written matter, all of which are distributed in commerce among and between the various States of the Unite1l States, and by other means in commerce, as commerce is defined in the Federal Trade Commission Aet, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his said product; :md has disseminated and is now disseminating, and has caused and is now causing, the dissemination of false tHlwrtisements conceming his said product, by various means, for the purpose of inllucing, ami which are likely to induce, directly or indirectly, the purchase of his said product in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false statements and representations contained in said advertisements, disseminated and caused to be disseminatell, as aforesaid, are the following: LIQl10R HABIT.-A new home treatment; harmless, tasteless; gh·eu seeretly in cotree, tea, et<'.; send for FREE BOOKLE:r. DA.Nso:-;o wo .• 32 N. State St., Chicago. D.\NSO:-J FORMULA THE TRIED TREATME:-IT FOR ALCOHOl ISM DANSON LABORATORIES, ETC. 375 373 Findings DA:r<"SON '"FORMULA. relieves the craving by counteracting the desire tor alcoholic stimulation and the principle (sic) idea is to get the system thoroughly inoc· culated with this preparation. • • • DANSON FORMULA THOMPSON LABORATOI!IES CHICAGO, ILL.

• • • Through the use of the statements hereinabove set forth and others similar thereto not specifically_ set out herein, respondent has represented and does now represent that his said medicinal preparation is an adequate remedy or cure for alcoholism or drunkenness; that it is a competent and effective treatment for alcoholism or drunkenness; that said medicinal preparation relieves the craving for alcoholic stimulation by counteracti11g the desire therefor; and that respondent conducts a laboratory.

PAR. 3. In truth and in fact, respondent's said prl::'paration, Danson Formula, is not an adequate remedy or cure for alcoholism or drunkenness, nor is it a competent and effective treatment therefor. It does not relieve the craving for alcoholic stimulation by counteracting the desire therefor. The respondent does not own, operate, or control a laboratory.

PAR. 4. The use by 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 mislead and deceive, and has misled and deceived, a substantial portion of the purchasing public into the erroneous belief that such representations are true and into the purchase of substantial quantities of respondent's said Danson Formula as a result of such an erroneous belief.

PAR. 5. The aforesaid acts and practices of 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. lh:PORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on March 31, 1939, issued and subsequently served its complaint in this proceeding upon respondent, Dan M. Thompson, an individual doing business as Danson Laboratories and as Thompson Laboratories, charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the !!!JG:illl'0 -4l-\"OL. 31-27 Findings 311<'. '1'. c. 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 Commission, and in opposition thereto by the respondent, who appeared in his own behalf, before John J. Keenan and Lewis C. Russell, trial examiners of the Commission theretofore duly designated by it, and said testimony and other evidence were duly recorded and. filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearing before the Commission on said complaint, the answer thereto, testimony, and other evidence and brief in support of the complaint (no brief having been filed by respondent and oral argument not having been requested), 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 Tile FACTS PARAGRAPH 1. The respondent, Dan M. Thompson, an individual was for several years immediately preceding the month of August 1939, engaged in the sale and distribution of a medicinal preparation designated and sold under the trade name "Danson Formula." He advertised and sold said product as a cure for alcoholism or drunkennes..;;. Respondent's place of business was at 32 North State Street, Chicago, Ill.

In the course and conduct of the aforesaid business, respondent sold and shipped his said product from his aforesaid place of business. in Chicago, Ill., to purchasers thereof in 10 or 12 States other than the State of origin, including the States of :Minnesota, Missouri, and Ohio, in all of which States respondent circulated his advertising and labels hereinafter mentioned.

P .AR. 2. During the time mentioned above and in the course of his aforesaid business, respondent caused to be published and disseminated through the Minneapolis Tribune, the St. Louis Neighborhood Ne"·s, a Grand Rapids, 1\Iich., paper, and other publications, certain advertisements of which the following are typical. Liquor HABIT--A new home treatment; harmless, tasteless; given secretly In coffee, tea, etc.; send for FREEl BOOKIEr DANSON LAB., 32 N. State St., Chicago. Respondent also sent through the United States mails to prospective purchasers, circulars and circular letters containing representations of which the following are typical:

DANSON FORMULA THE TRIED THEA TMENT FOR AI.COHOUSM DANSON LABORATORIES, ETC. 377 873 Findings DANSON' ronw:trt.A. relieves the craving by counteracting the desire for 'alcoholic stimulation and the principle (sic) idea is to get the system thoroughly inoculated with this preparation • • *.

Respondent also represented on his labels attached to the product the following:

DANSO~ FORMULA THOliPSON LABORATORIES CHIOAIGO, ILL.

• • • By the use of the above representations, respondent represented that "Danson Formula" is a remedy or cure for alcoholism; that said preparation is a competent and effective treatment for alcoholism or drunkenness; that said preparation counteracts the desire ior alcoholic stimulation; that said product relieves the craving for alcoholic stimulation; and that 1·respondent conducts a laboratory in connection with his aforesaid business.

PAR. 3. The quantitative formula for respondent's product is: 03.

Ammonium bromide (U. S. P.>----------------------------- 8 Ammonium carbonate (U. S. P.) -------------------------- lA. Glycerine__________________________________________________ 2 Distilled water-------------------------------------------- 10 The recommended dosage is 20 drops three times a day, or 30 drops twice a day.

PAR. 4. Alcoholism may be defined as a condition resulting from excessive use of alcohol. If taken in moderation, alcohol is burned by the body and acts as a fuel for energy. If the use of alcohol exceeds the body's need for fuel, alcoholism results. There are two types of alcoholism, viz, acute and chronic. Acute. alcoholism results from excessi,·e use of alcohol for a comparatively short period of time and may be described as a temporary condition, whereas chronic alcoholism results from an excessive and regular use of alcohol for a considerable period of time and may be described as a more or less permanent condition. The treatment for acute alcoholism is not the same as the treatment for chronic alcoholism nor should all cases of either type be treated the same way. Acute alcoholism is usually treated by giving the patient a blood sugar intravenously and by administration of a sedative drug, if necessary, to quiet the patient's nerves. Chronic alcoholism is usually treated by psychiatric methods, such as an attempt to solve the problem which causes the patient to desire drink or the effects produced thereby. Sedative drugs are also Uf'ed in some cases of chronic alcoholism to quiet the patient's 11enes.

Order 31F.1'.C.

PAR. 5. The active ingredient contained in respondent's product is ammonium bromide, which is a sedative drug. Sedative drugs containing bromides are sometimes used in the treatment of alcoholism as an adjunct for the purpose of quieting the patient's nerves. The Commission finds that respondent's product is not a remedy or cure for either type of alcoholism nor will it relieve the craving for alcoholic stimulation or counteract the desire therefor, or have any value as a competent and effective treatment for alcoholism in excess of its value as a sedative for quieting the nerves. The respondent does not own or operate a laboratory nor does he use any laboratory equipment in connection with his business.

PAR. 6. The use by the respondent of the foregoing deceptive and misleading statements, representations, and advertisements, disseminated as aforesaid, has the capacity and tendency to mislead and deceive, and has misled and deceived, a substantial portion of the purchasing public into the erroneous and mistaken belief that such representations are true and into the purchase of substantial quantities of respondent's product as a result of such erroneous and mistaken belief.

CONCLUSION The aforesaid acts and practices of the respondent as herein found 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. 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, and other evidence taken before John J. Keenan and Lewis C. Russell, trial examiners of the Commission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, and brief filed herein in support of the complaint (no brief having been filed by respondent and oral argument not having been requested), and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Dan M. Thompson, trading as Danson Laboratories and as Thompson Laboratories, or trading under any other name or names, his representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of his medicinal DANSON LABORATORIES, ETC. 379 873 Order preparation designated "Danson Formula," or any other medicinal preparation composed of substantially similar ingredients or possessing substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from directly or indirectly:

1. Disseminating or causing to be disseminated any advertisement (a) by means of the United States mails or (b) by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, which advertisements represent, directly or through inference, that said preparation is a cure or remedy for alcoholism or the liquor habit, that said preparation has any value as a competent and effective treatment for alcoholism in excess of its value as a nerve sedative, or that said preparation will counteract the desire for liquor, or relieve the craving for alcoholic stimulation. 2. Disseminating or causing to be disseminated any advertisement by any means for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase in conunerce, as "commerce" is defined in the Federal Trade Commission Act, of said preparation, which advertisements contain any of the representations prohibited in paragraph 1 hereof.

It is fu.rther ordered, That the respondent, Dan :M. Thompson, his representatives, agents, and employees, as aforesaid, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of said preparation, or any other similar preparation, as hereinabove referred to, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

1. Using the word "Laboratories" or any other word of similar import or meaning in any trade or corporate name or in any other manner to describe or refer to respondent's business. 2. Representing in any manner that respondent owns or operates a laboratory.

It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

380 FEDERAL TRADE CO:MMISSION DECISIONS Syllabus at F. •.r. a.