Louis Cohen

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IN Tile MATTER OF LOUIS COHEN, SOL COHEN AND MARVYN COHEN, INDI- VIDUALLY, AND TRADING AS COHEN'S CUT RATE DRUG STORE, AND AS COHEN DRUG CO., AND AS COHEN'S COMPLAINT, FINDINGS, AND ORDER 1::-1 REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4202. Complaint, July 30, 1940-Decision, Sept. 18, 1940 Where three individuals who owned and Operated a chain of dru!{ stores in '\Vest Virg:nia and were engaged in sale and distribution of various medicinal preparations, including product designated as Soluble Gelatin Capsules No. 5, Apiol, and Ergotin Compound, and advertised and sold as Lady Lydia Capsules; in advertisements which they disseminated or caused to be disseminated concerning their said product through the mails and through various other means in commerce and through various means, and whch were intended and likely to induce purchase thereof- ( a) Represented that their said product designated and advertised and sold as above set forth constituted a competent and effective treatment for delayed menstruation and was safe and harmless, facts being it was not such 11. treatment, was not safe or harmless, but contained drugs apiol green, ergotin, oa of savin, and aloin, In quantities sufticient to cause serious and irreparable injury to health if used under conditions prescribed in advertisements in question, ur such conditions as are customary or usual, and use thereof might result in a toxic condition and other serious consequences, including blood poisoning or septicemia; and (b) Failed to reveal in advertisements in question th.at use of said preparation under conuitions prescribed tben•in, or such conditions as are customary or usual, might result in serious and irreparable injury to health; With effect of misleading and deceiving substantial :r;ortion of purchasing public into erroneous and mistaken belief that such statements, representations, and advertisements were true, and that such preparation was safe, competent, and effective treatment for aforesaid condition, and to induce, directly or indirectly, purchase thereat by public:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice nnd injury of the public, and constituted unfair and deceptive acts and practices in commerce.

Mr. R. P. Bellinger for the Commission.

Mr. Philip Angel and Mr. Harry R. Angel, of Charleston, 1V. Va., for respondents.

CmrPLAINT 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 Louis Cohen, Sol Cohen, and Marvyn Cohen, individually, and trading as Cohen's Cut Complaint 31 F. T. C. Rate Drug Store, and as Cohen Drug Co., and as Cohen's, hereinafter 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 as follows: P ARAGRAPII 1. Respondents Louis Cohen, Sol Cohen, and 1\farvyn Cohen, are individuals trading and doing business under the names of Cohen's Cut Rate Drug Store, Cohen Drug Co., and Cohen's. The respondents own and operate a chain of drug stores in the State of 'Vest Virginia, with their warehouse and general offices located at 905 Virginia Street, East, in Charleston, ,V. Va., and their main store located at 160 Summers Street, Charleston, W. Va. PAR. 2. Respondents are now, and for more than 1 year lust past have been, engaged in the sale and distribution of various medicinal preparations. Among the various pro1lucts sold and distribut~d by respondents is a drug preparation designated as "Soluble Gelatine Capsules No. 5, Apiol and Ergotin Compound," and advertised and sold as "Lady Lydia Capsules."

PAR. 3. In the course and conduct of their aforesaid business, the respondents have disseminated and are now disseminating, and have caused and are now causing the dissemination of false advertisements concerning their said product, by the United States mrtils, and by various other means in commerce, as commerce is defined in the Federal Trade Commission Act, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of their said product; and respondents have also disseminated and are now disseminating, and have caused and are now causing the dissemination of false advertisements concerning their said product by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of their said product in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated, as hereinabove. set forth, by the United States mails, by advertisements in newspnpers1 and by other advertising literature, are the following: FOB DELAYED PERIODS MODERN WOMEN UHF.

LADY LYDIA CAPS.

BOX • • • U.fll ,:1 COHEN'S CUT RATE DRUG STORE, ETC. 919 VI7 Complaint FOR DELAYED PERIODS L~DY LYDIA CAPSULES $~ BOX * * * $2.69 lor DELAYED PERIODS-SMART WOM~~N PB!o:Fi:R LADY LYDIA CAPSULES-5.00 BOX * * * $2.69 PAR. 4. Through the use of the statements and representations herehJabove set forth, and others similar thereto not set out herein, the J·e.•'>pondents have represented, directly and by implication, that their preparation tlesignated as "Soluble Gelatine Capsules No. 5, Apiol nnd E1·gotin COmpound'~ and advertised and sold a.s "Lady Lydia Capsules," is a competent and effective treatment for delayed menstruation, and that said preparation is safe and harmless. PAR. 5. The foregoing statements and representations used and disseminated by the respondents as hereinabove set forth, are grossly exaggerated, false, and misleading. In truth and in fact, respondents' said preparation is not a competent or effective treatment for delayed 1nen!Struation. Said preparation is not safe or harmless, as it contains the drugs apiol green, ergotin, oil of savin, and aloin, in quantities sufficient to cause serious and ineparable injury to health if used under the conditions prescribed in said advertisements or under such conditions as are customary or usual.

.Such use of said preparation may result in a toxic c~mdition and ~xcessive purgation, and may give rise to abortion, resulting in uterine lnfection with extension to other pelvic and abdominal structures, and even the blood stream, causing the condition known as blood poisoning or septicemia.

Said advertisements are also false in that they fail to reveal that the use of said preparation under the conditions prescribed in said ad,'ert.isements or under such conditions as are customary or usual, lllny result in serious and irreparable injury to health. PAn. 6. The u~e by the re-spondents of the aforesaid false, misleatling-, and deceptive statements and representations with respect to their said pN'parntion, disseminated ns aforesaid, has the capacity and tendency to, and does, mislead and deceive a substantial po1tion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and advertisements are true, and that such preparation is a safe, competent, and effective treatment for delaypd menstruation, and to induce, directly or indire-Ctly, the l>Urchase by the public of respondents' said preparation. PAn. 7. The aforesaid acts and 1nuactices of the re~pondents as he1'tin allegpl] are all to the prejudice and injury of the public and constitute unfair and decepth·e acts and pradicPS in commerce within the intent and meaning of the Federal Trade Commission Act. :.!9U:;lG"'-H 'ol. 31-01 Findings 31F.'l'.C. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on July 30, 1940, issued and on July 31, 1940, served its complaint in this proceeding upon respondents, Louis Cohen, Sol (Saul) Cohen, and Marvyn Cohen, individually, and trading as Cohen's Cut Rate Drug Store, and as Cohen Drug Co., and as Cohen's, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On August 15, 1940, the respondents filed their answer, in which answer they admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. In said answer, however, the respondents alleged that they had, since February 1940, ceased advertising the medicinal preparation involved herein. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and tha 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 make~ this its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents Louis Cohen, Sol (Saul) Cohen, aml Marvyn Cohen are individuals trading and doing business under the names of Cohen's Cut Rate Drug Store, Cohen Drug Co., and Cohen~s. The respondents own and operate a chain of drug stores in the State of 'Vest Virginia, with their warehouse and general offices located at 905 Virginia Street, East, in Charleston, ,V. Va., and their main store located at 160 Summers Street, Charleston, W. Va. PAR 2. Respondents are now, and for more than 1 year last past have been, engaged in the sale and distribution of various medicinal preparations. Among the various products sold and distributed by respondents is a drug preparation designated as "Soluble Gelatine Capsules No. 5, Apiol and Ergotin Compound," and advertised and sold as "Lady Lydia Capsules."

PAR. 3. In the course and conduct of their aforesaid business, the respondents have disseminated and have caused the dissemination of false advertisements concerning their said product, by the United States mails, and by various other means m commerce, as commerce is defined in the Federal Trade Commission Act, for the pmpose of inducing, and which are likely to induce, directly or indirectly, the purchase of their said product; and respondents have also diss{'minated COHEN'S CUT RATE DRUG STORE, ETC. 921 017 Findings and have caused the dissemination o£ false advertisements concerning their said product by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of their said product in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated, as hereinabove set forth, by the United States mails, by advertisements in newspapers, and by other advertising literature, are the following: FOB DELAYED PEBIODB MODERN WOMEN USE LADY LYDIA CAPS.

$5 BOX • • • $2.69 FOB DELAYED PEBIODS LADY LYDIA CAPSULES $5 BOX • • • $2.6.') FOB m:LAYED PUUODB-SMABT WOMEN PBEFEII L\DY LYDIA CAPSULES-5.00 BOX * * * 52.69. PAR. 4. Through the use of the statements and representations hereinabove set forth, and others similar thereto not set out herein, the respondents have represented, directly and by implication, that their preparation designated as "Soluble Gelatine Capsules No.5, Apiol and Ergotin Compound" and advertised and sold as "Lady Lydia Capsules," is a competent and effective treatment for delayed menstruation, and that said preparation is safe and harmless. PAR. 5. The foregoing statements and representations used an,d. dis. ;;eminated by the respondents as hereinabove set forth, are grossly exaggerated, false, and misleading. In truth and in fact, respondents' said preparation is not. a competent. or effective treatment for delayed :menstruation. Said preparation is not safe or harmless, as it contains the drugs apiol green, ergotin, oil of savin, and aloin, in quantities sufficient to cause serious and irreparable injury to health if used under the conditions prescribed in said advertisements or under such conditions as are customary or usual.

Such use of said preparation may rf'sult in a toxic condition and ~xcessive purgation, and may give rise to abortion, resulting in uterine mfection with extension to other pelvic unrl aLtlominal struchtrl's, antl Ordet· :ll F. T. C. even the blood stream, causing the condition known as blood poisoning or septicemia.

Said advertisements are also false in that they fail to reveal that the use of said preparation under the conditions prescribed in said advertisements· or under such conditions as are customary or usual, may result in serious and irreparable injury to health. PAR. 6. The use by the respondent of the aforesaid false, misleading, and deceptive statements and representations with respect to their said preparation, disseminated as aforesaid, 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 statements, representations, and advertisements are true, and that such preparation is a safe, competent, and effective treatment for delayed menstruation, and to induce, directly or indirectly, the purchase by the public of respondents' said preparation.

OONCLUSION The aforesaid acts and practices of the respondents 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 Cmnmission upon the complaint of the Commission and the answer of the respondents, in which answer respondents admit all the material allegations of fact set forth in said complaint, and state that they waive all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and its conclusion that said respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, Louis Cohen, Sol (Saul) Coh(lln, and l\farvyn Cohen, individually, and trading as Cohen's Cut Rate Drug Store, and as Cohen Drug Co., and as Cohen's, or trading under any other name or names, their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of their medicinal preparation designated as "Soluble Gelatine Capsules No.5, Apiol and Ergotin Compound,'' and as '•Lady Lydia Capsules," or any other nwdicinal preparation composed of substantially similar ingredients or possessing substantially similar properties, whether soh.l under the same name or undN· any other name or names, do forthwith cease nnd desist from dilt'ctly or indirectly:

COHEN'S CUT RATE DRUG STORE, ETC. 923 917 Order 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 competent or effective treatment for delayed menstruation; that said preparation is safe or harmless; or which advertisements fail to reveal that the use of said preparation may result in serious and irreparable injury to the health of the user. 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 commerce, 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, or which fail to reveal that the use of said preparation may result in serious and irreparable injury to the health of the user.

It is further OT'dered, That·the respondents shall, within 10 days after service upon them of this order, file with the Commission an interim report in writing, stating whether they intend to comply with this order and, if so, the manner and form in which they intend to comply; and that within 60 days after service upon them of this order, said respondents shall file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

924 FEDERAL TRADE COMMISSION DECISIO~S Complaint 311<'. 1'. c.