Weinstock, I. Ralph

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IN THE MATTER OF I. RALPH WEINSTOCK, TRADING AS THYROLE PRODUCTS COM.P ANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. :> OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket ~160. Complaint, June 13, 19~0-Dec-ision, Nov. 19, 19~0 Where an individual engaged in sale and distribution of certain medicinal preparation by It designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, to purchasers in other States and in the District of Columbia; in advertisements of said preparation which he disseminated and caused to be disseminated through the mails and through advertisements In newspapers and by circulars, leaflets, pamphlets, and other advertising literature, and through various means In commerce and otherwise, and which were Intended and likely to Induce purchase of his said product- ( a) Represented that his said medicinal preparation, designated and known as aforesaid, constituted a cure or remedy for obesity and a safe, competent, and effective treatment therefor, through such statements, among others, as "oon"T BE FAT. Get rid of excess weight without strict diet IJr strenuous exercise. It you are overweight due to glandular deficiency, but normally healthy otherwise, you may be reasonably sure of satisfactory results by taking 0. B. C. Capsules," and "Slenderize this modern easy way without strict diet or exercise. Thousands of grateful users everywhere since 1923," and "Lose fat like magic. Youth restored. Health preserved. 0. B. C. is the sure-safe-pleasant--easy-modern method of slenderizing without exercise";

Facts being preparation in question was not a cure or remedy for obesity, and did not constitute a competent or etrective treatment therefor, nor a safe one, by virtue of inclusion of powdered strychnine alkaloid, powdered extract belladonna, aloin, thyroid, and other drugs In quantities sufficient to cause serious and Irreparable Injury to health if used under the conditions prescribed in said advertisempnts or under such conditions as are customary or usual, and use ot such product might produce headaches, muscular and particular pains, nausea, and various other conditions and result, among other things, in permanent injury to tissues and organic functions, and irreparable injury to heart muscle; and (b) Failed to reveal In his said advertisements that use of said preparation, or 0. B. C. Capsules, under conditions prescribed in said advertisements or under such conditions as are customary or usual might result in serious and irreparable Injury to health;

With effect of misleading and deceiving snbstuutlal portion of purchasing public into erroneous and mistaken belief that such false, deceptive and misleading statements, representations, and advertl8ements were true, and of Inducing portion of such public, because of such f'rroneous and mistaken belief, to purchase his said preparation:

29(l51flm-4t-vol. 31--91 Complaint 31 F. T.C. Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of tbe public, and constituted unfair and deceptive acts and practices in commerce.

Before Mr. Robert S. II all, trial examiner. Air. William L. Tagga1·t, 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 I. Ralph 'Veinstock, an individual, trading as Thyrole Products Co., hereinafter referred to as respondent, has 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: PARAGRAPH 1. Respondent, I. Ralph 'Veinstock, is an individual trading as Thyrole Products Co., with his office and principal plac{' of business at Thirty-fourth and Chestnut Streets, Philadelphia, Pa., from which address he transacts business under the above trade name.

PAR. 2. The respondent is now, and for more than 1 year last past has bet>n, t>ngaged in the sale and distribution of a cert.ain medicinal preparation, designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules.

In the course and conduct of his business the respondent causes said medicinal preparation when sold to be transported from his place of business in the State of Pennsylvania to purchasers thereof located in other States of the Unite>d States and in the District of Columbia.

At all times mentioned herein, respondent has maintained a course of trade in said medicinal preparation sold and distributed by him 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 his aforesaid business, the> respondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said product by the United States mails 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 Jikely to induce, directly or indirectly, the purchase of said product i nnd respondent has also disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertieements concerning his said product, by various means, for the purpose TRYROLE PRODUCTS CO. 1401 1399 Complaint of inducing, and 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, misleading and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated, as hereinabove set forth, by United States mails and by advertisements in newspapers, and by circulars, leaflets, pamphlets and other advertising literature, are the following: DON'T BE FAT Get rid of excess weight without stt·ict diet or strenuous ~>xercise. If you are overweight due to glandular deficiency, but normally healthy otherwise, you may be reasonably sure of satisfactory results by taking 0. B. C. Capsules. 0. B. C. REDUCING CAPSULES Slenderize this modern easy way without strict diet or exercise. Thousands of grateful users everywhere since 1923.

O. B. C. !!EDUCING CAPSULES Lose fat like magic. Youth restored.· Health pt•eserved. 0. B. C. is the sure-safe-pleasant--easy-modern ruf'thod of slenderizing without exercise. 0. B. C. Capsules promote the combustion of fats, thereby rl'duce the weight ot the body. They are mildly laxati\'e and are taken one before each meal. In this manner gradual and appreciable loss is acquired. The action of 0. B. C. can be accelerated by the user eating sparingly of the following foods: Bread, potatoes, milk, butter and sweets. However, this step in diet ls not strictly necessary and is recommended for- only those persons who are ''ery much overweight. It Is the purpose of 0, B. C. Capsules to reduce gradually. Gradual reduction as produced by 0. B. C. restores ,·im, vigor, mental alertness and efficiency. Sudden reduction due to extreme diet and exercise is disastrous, causing loss of vitality and weakness. 0. B. C. Capsules owe their ever incrensing popularity nnd recommendation to mildne;;s and efficiency of action. They should be taken fox: six to twelve we~>k;; for b~>st reiilults. PAR. 4. By the use of the representations hereinabove set forth and other representations similar thereto not specifically set out herein, the respondent represents that his medicinal preparation, designated as 0. ll. C. Reducing Capsules, otherwise known as 0. n. C. Capsules, is a cure or remedy for obesity, and a safe, competent, and effective treatment therefor.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact, the medicinal preparation sold and distributed by the respondent as aforesaid, designated as 0. B. C. Ueducin~ Capsules, otherwise known as 0. B. C. Capsules, is not a cure ur remedy for obesity and does not constitute a competent or effective treatment therefor. Moreover, said preparation is not safe, in that !>aid preparation contains powdered strychnine alkaloid, powdered extract hP.1hu1onna. aloin, phenolDhthalein, and thyroid, U. S. P. Findings 31 F.T.C.

The aforesaid drugs are present in the said medicinal preparation in quantities sufficient to cause serious and irreparable injury to health if Used under the conditions as prescribed in said advertisements or under ~;:uch conditions as are customary or usual. Such use of said medicinal preparation may produce headaches, muscular and particular pains, nausea, vomiting, vertigo, insomnia, physical exhaustion, tremor, and tachycardia. The use of said preparation, as aforesaid, may also result in thyroid toxicosis, permanent injury to tissues, organic functions, and the entire body mechanism and irreparable injury to the heart muscle with auricular fibrillation. In addition to the representations hereinabove set forth, the respondent has also engaged in the dissemination of false advertisements in the manner above set forth in that said advertisements so disseminated fail to reveal that the use of 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, 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 foregoing false, deceptive, v.nd mh;leading statements and representations with respect to his preparation, 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 statements, representations, and advertisements are true and induces a portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's medicinal preparation. PAR. 7. The foregoing acts and practices of the respondent, as herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive nets and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGB AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on June 13, 1940, issued and on June 15, 1940, served its complaint in this proceeding upon respondent, I. Ralph 'Veinstock, an individual, trading as Thyrole Products Co., charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On October 29, 1940, the respondent filed his answer, in which answer he admitted all the material allegations of fact set forth in said 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 the said complaint and the answer thereto, and the Commission, having duly considered the matter, THYROLE PRODUCTS CO. 1403 1399 Findings and being 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, I. Ralph w·einstock, is an individual trading as Thyrole Products Co., with his office and principal place of business at Thirty-fourth and Chestnut Streets, Philadelphia, Pa., from which address he transacts business under the above trade name. PAR. 2. The respondent is now, and for more than 1 year last past has been, engaged in the sale and distribution of a certain medicinal preparation, designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules.

In the course and conduct of his business the respondent causes said medicinal preparation when sold to be transported from his place of business in the State of Pennsylvania to purchasers thereof located in other States of the United States and in the District of Columbia. At all times mentioned herein, respondent has maintained a course of trade in said medicinal preparation sold and distributed by him 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 his aforesaid business, the respondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said product by the United States mails 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 said product; and respondent has a.lso disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said product, by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his said product in commerce, t~.s 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 hereinabo,·e set forth, by United States mails and by advertisements in newspaper.rs, and by circulars, leaflets, pamphlets, and other advertising literature, are the following: DON'T BE FAT Get rid of excess weight without strict diet or strPnuons E'XPrclse. It you are overweight due to glandular deficiency, but normally healthy otherwise, You may be reasonably sure of satisfactory results by taking 0. B. C. Capsules. Findings 31 F. T. C. 0. B. C. REDUCING CAPSULES Slenderize this modern easy way without stt·ict diet or exercise. Thousands of grateful users everywhere since 1923.

0. B. C. REDUCING CAPSULES Lose fat like magic. Youth restored. Health preset·ved. 0. B. C. Is the sure-safe-pleasant--easy-modern method of slenderizing without exercise. 0. B. C. Capsules promote the combustion of fats, thereby reduce the weight of the body. They are mildly laxative and are taken one before each meal. In this manner gradual and appreciable loss is acquired. The action of 0. B. C. can be accelerated by the user eating sparingly of the following foods: Bread, potatoes, milk, butter and sweets. However, this step In diet is not strictly necessary and is recommended for only those persons who are very much overweight. It is the purpose of 0. n. C. Capsules to reduce gradually. Gradual reduction as produced by 0. B. C. restores vim, vigor, mental alertness and efficiency. Sudden reduction due to extrem~ diet and exercise is disastrous, causing loss of vitality and weakness. 0. B. C. Capsules owe their ever increasing popularity and recommendation to mildness and efficiency of action. They should be taken for six to twelve weeks for best results. PAR. 4. By the use o£ the representations hereinabove set forth and other representations similar thereto not specifically set out herein, the respondent represents that his medicinal preparation, designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, is a cure or remedy for obesity, and a safe, competent, and effective treatment therefor.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact, the medicinal preparation sold and distributed by the respondent as aforesaid, designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, is not a cure or remedy for obesity and does not constitute a competent or effective treatment therefor. Moreover, said preparation is not safe, in that said preparation contains powdered strychnine alkaloid, powdered extract belladonna, aloin, phenolphthalein, and thyroid, U. S. P. The aforesaid drugs are present in the said medicinal preparation in quantities sufficient to cause serious and irreparable injury to health i£ used under the conditions pre,gcribed in said advertisements or under such conditions as are customary or usual.

Such use of said medicinal preparation may produce headaches, muscular and particular pains, nausea, vomiting, vertigo, insomnia, physical exhaustion, tremor, and tachycardia. The use o£ said preparation, as aforesaid, may also result in thyroid toxicosis, permanent injury to tissues, organic functions, and the entire body mechanism and irreparable injury to the heart muscle with auricular fibrillation. In addition to the representations hereinabove set forth, the respondent has also engaged in the dissemination of false advertisements THYROLE PRODUCTS CO. 1405 13!)9 'Order in the manner above set forth in that said advertisements so disseminated fail to reveal that the use of 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, 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 foregoing false, deceptive, and misleading statements and representations with respect to his preparation, 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 statements, representations, and advertisements are true and induces a portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's medicinal preparation. CONCLUSION The foregoing 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 Conunission upon the complaint of the Conunission and the answer by the respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint and states that he waives all intervening procedure and further hearings as to the said facts, and the Commission having made its findings as to the facts and its conclusion that the said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, I. Ralph \Veinstock, individually and trading as the Thyrole Products Co., or trading under any other name or names, his agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of his medicinal preparation designated as 0. B. C. Reducing Capsules, otherwise known as 0. B. C. Capsules, or any other medicinal preparation composed of substantially similar ingredients or possessing substantially similar properties, whether sold under the same names or any other name or names, 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, Order 31F.T.C.

which advertisement represents, directly or through inference, that said medicinal preparation is a. cure or remedy or a competent or effective treatment for obesity; that said preparation is safe; or which advertisement fails to reveal that the use of said preparation may cause permanent injury to the heart, thyroid gland, and other vital organs.

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 advertisement contains any of the representations prohibited in paragraph 1 hereof, or which fails to reveal that the. use. of said nreparation may cause permanent injury to the heart, thyroid gland, and other vital organs.

It is fwrther ordered, That the respondent shall within 10 days after the service upon him of this order file with the Commission an interim report in writing, stating whether he intends to comply with this order, and if so) the manner and form in which he intends to comply; and that within 60 days after the service upon him of this order, said respondent shall file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

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