Goldman, Jacob

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IN THE l\IA TIER OJo' JACOB L. GOLD~IAN, ALIAS J. L. COLEMAN, TRADING AS . ATLAS HEALTH APPLIANCE CO)IPA~Y CO:O.IPLAL.....-T, FINDI!'IGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 DocA·et 4291. Complaint, Aug. 29, 1940-DeciMon, Dec. 4. 1940 Where an individual engaged in interstate sale and distribution of device or apparatus designated Atlas Short \Vave Diathermy, in ad,·ertisements of said device which he disseminated and caused to he disseminated through the mails and by various other means in commerce, and by udvet·tisements in newspapers, radio continuities, circulars, leaflets, pamphlets, and other advertising literature, ami otherwh<e, and which were intended and likely to induce purchase of his said pt·oduct - (a l Represented that saitl device, when used by the unsldllPd lay public in the treatment of self-diagnosed diseases ot· ailments, and by individual selfapplication In the home, constituted a scientific, safe, harmlf'ss, and effective means aJHl method for the cm·e and effective tt·eatment of numerous diseases and ailments having to do, us set forth by him, with head, skin, throat, stomach aiu, ch~>st, and malf' :md f~>nwle disot·dprs, and inrluding also high blood pressure', arthritis, neuritis, and various other nilments and eouditions, and, expressly and by implication, that he was tr·:lint>d and experienced in physical therapy and in the technique of diagnosing and trpating pathological conditions by application of short-wave diathermy; Facts being he was not thus tminPd and experienced, and snell device would not accomplish r£>sults tlaimPd therpfor by him, ancl was not a scientific, safe, harmle~:-1. or effective means and method for use by the unskilled Jay public in the cure Ot' treatment of self-diagnosed diseases and ailments, as set forth by him, but such self-application by layman, by reason of technical inexperienc-e, might result in severe electric bum th1·ough improperly ndjusted electrode, and might canst> set·ious injury to health, thus used in treatment of self-diagno~ed diseases and ailnwuts, and might, among various other results, lead to peritonitis and blood poisoning in various conditions of acute inflammation, to sprious m· fatal hemorrhage when applied in any conditions where there is a tendency that·eto or in which congestion would nggravate existing trouble, to abortion when applied by layman dm·iug pregnaney, and in :,;timuluting growth of caneer cells and meta>tasis or in sprt>ndiug the trouble to other tissues wht>n applietl to areas which might be affectt>d by malignant tumors, and in tissue destruc· tion and s€'were burns where sense of heat in said areas of the skin might have been lost due to injury or impairment of nerves involved; and (b) Failed to reveal in said advertisements dh;seminated. by him as aforesaid, that llse of said device under conditions p1·escribed in such advertisements or under such conditions as are customary or usual, might result in serious and irreparable injury to health;

With pffect of misleading and deceiving substantial portion of purchasing public into e1·roneous and mistaken belief that such statements, rcpt·esentations; ATLAS HEALTH APPLIANCE CO. 33 32 Complaint and advertisements were true, and of inducing portion of said public, becllnf<e of EllH'h erroneous and mi:>taken uelief, to purchase his said device: lldd, That sud~ arts and practices, untler the C'ircnmstances Het forth, were all to the prejudice and injury of the public and constituted unfair and clccPptive art:3 and practices in commerce, Air. J1J au rice C. Pearce 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 Jacob L. Goldman, alias J. L. Coleman, an individual, trading as Atlas Health Appliance 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, Jacob L. Goldman, alias J. L. Coleman, is an individual trading as Atlas Health Appliance Co., with his office and principal place of business at 24:30 ·west Sixth Street, Los Angeles, Calif., 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 device or apparatus designated Atlas Short 'Vave Diathermy. In the course and conduct of his business, the respondent causes said device when sold, to be transported from his place of business in the State of California 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 device, 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 ctwsed and is now causing the dissemination of, false advertisements concern- ~ng his said device by the United States mails and by various other means in commerce, as commerce is defined in the Federal Trade Commission Act, and respondent has also 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, as commerce is defined in the Federal Trade Commission Act. 34 FEDERAL TRADE COM...l\1:ISSION DECISIONS Complaint 32F.T.C.

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, by radio continuities, and by circulars, leaflets, pamphlets, and other advertising literature, are the following:

The Atlas Short Wave Diathermy enables you to enjoy Its many benefits In your own borne.

Simplicity of operation is made possible for self-treatment without an attendant.

Self-treatments with the Atlas, whether for acute or chronic ailments, are very easily administered.

Although for some time only professionally available, Short Wave Diathermy may now be used by yourself In the privacy of your own home. The various ailments which readily respond to this pleasant yet effective method of treatment include the following: HEAD SKIN THROAT sinus boils asthma neuralgia abscesses laryngitis bay fever carbuncles tonsillitis headache infections irritations colds STOMACH MALE AREA CHEST DISORDERS gastritis bronchitis prostate colonic disorders pneumonia inflammation constipation colds of bladder pleurisy lumbago FEMALE kidney DISORDERS liver menstrual pains pelvic 1nflamruatlon also High Blood Pressure Muscular Ailments Arthritis Insomnia Neuritis Indigestion Inflamed Joints Anemia Sprains Impetigo and other ailments Inflammation in various parts of the body known to us by many dif· ferent names, causes untold suffering. In this field, Short Wave .Diathermy is most beneficial.

Marked success bas been met with in. treating pelvic conditions and relieving menstrual pains.

The use of Atlas Short Wave Diathermy Is always safe, harmless and health improving.

ATLAS HEALTH APPLIANCE CO. 35 Complaint For interesting clinical reports, be sure to check your ailment and mail, or -state ailment when writing.

Arthritis Boils Colonic Disorders Asthma Neuritis Chronic Coughs Sinusitis Hi-Blood pres. Pleurisy Kidneys Bladder Trouble Rheumatism Lumbago Colds Headaches Prostate Female Trouble Atlas Short Wave Diathermy accords its users amazing results. Hardly a day passes that we're not asked whether our device is good tor this disease or such a condition and which, after investigation, we have to report in the negative. It it is in the positive we do not hesitate to state our findings just as surely as we do not believe in hiding our light under a bushel. Our technician will gladly give you this test when you call us tor a home demonstration.

The soothing penetrating heat of Short Wave Diathermy creates-in effecta mild, artificial fever in the affected part, and definitely aids in kUling bacteria.

PAR. 4. By the use of the representations hereinabove set forth and other representations similar thereto not specifically set out herein, respondent represents that his device, designated as Atlas Short 'Vavc Diathermy, when used by the unskilled lay public in the treatment of self-diagnosed diseases or ailments of the human body by individual self-application in the home, is a scientific, safe, harmless, and effective means and method for the cure and effective treatment of the diseases and ailments and other ailments of the human body set forth in detail in paragraph 3; that it definitely aids in killing bacteria and that its use will have no ill effects upon the human body. Furthermore, said respondent represents expressly and by implication that he is trained and experienced in physical therapy and in the technique of diagnosing and treating pathological conditions of the human body by the application of short-wave diathermy. PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. The said device will not accomplish the results claimed by the respondent and is not a scientific, safe, harmless, or effective Ineans and method to bB used by the unskilled lay public in the cure ·or treatment of self-diagnosed diseases and ailments of the human body set forth in detail in paragraph 3 hereof by individual self-application in the home.

Furthermore, said respondent is not trained and experienced in Physical therapy or in the technique of diagnosing and treating pathological conditions of the human body by the application of short-wave -diathermy.

PAR. 6. In addition to the representations hereinabove set forth, the respondent has also engaged in the dissemination of false advertise- Complaint 32 F. T. C. ments in the manner above set forth, in that said advertisements so disseminated, fail to reveal that the use of said device 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. 7. In truth and in fact, the. device sold and distributed by the respondent as aforesaid, designated as Atlas Short "\Vave Diathermy, is composed principally of a short-wave generator housed in a portable cabinet. The current is a modified Coulpitt Circuit, using a transformer of 1,150 volts (half-wave), two Taylor T-55 tubes, plus the regular chokes for proper control. The output is on approximately a 16 meter wave length. The power output is 125 to )50 watts calibrated on a photoelectric watt meter. Under ordinary lamp load, it may be considered as 160 to 175 watts output. No cable is used with this apparatus as it is not adapted for this modality. Power is transmitted by two insulated condenser pads 6 by 8 inches, or by a small 4 by 7 inch pad used in connection with one of the larger pads. The self-application of this device may cause serious i11jury to health when used by the unskilled lay public in the treatment of self-diagnosed diseases and ailments of the human body.

By reason of technical inexperience on the part of laymen, an improperly adjusted electrode may produce a spark gap between the electrode and the skin causing severe electric burn. The use of said device, under the conditions prescribed in said advertisements or under such conditions as are customary or usual, by the unskilled lay public, may result in serious or irreparable injury to health.

Specifically such use, as aforesaid, may result in: Peritonitis and blood poisoning, in conditions of acute inflammation, such as boils, carbuncles, acute arthritis due to infection, acute pelvic infection in the female, acute cystitis, acute sinus infections, tonsillitis, lung abscess, appendicitis, and acute prostatitis; serious or fatal hemorrhage when applied in any conditions where there is a tendency to hemorrhage or in which congestion of the blood would aggravate existing troubles, such as varicose veins, gastric ulcer, ulcerative colitis, menstruation, and female disorders such as menorrhngea, dysmenorrhea from retroversion or anteversion of the uterus, sub· involution of the uterus from any cause, uterine infections and chronic pelvic inflammatory diseases; abortion, followed by subinvolution, putrefaction or infection with disastrous results in most cases when said device is applied by the layman during pregnancy; stimulating the growth of cancerous cells, metastasis or in spreading the trouble to other tissues when diathermy is applied to areas which ATLAS HEALTH APPLIANCE CO. 37 32 Findings may be affected. by malignant tumors and in those areas of tbe skin where the sense of heat has been lost due to injury or impairment of the peripheral nerves, the application of diathermy may result in tissue destruction and severe burns.

PAR. 8. The use by the respondent of the foregoing false, tleceptive, and misleading advertisements with respect to his device, disseminated as aforesaid, had had and now has the capacity and tendency to, and does, mislead and qeceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and advertisements are true and induce a portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' said device. PAR. 9. The foregoing acts and practices of the respondent as herein allt:>ged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practic.es in commerce within the intent and meaning of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO 'lhe FACTS, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on the 29th day of Au,!!ust 1\HO, issued and thereafter sen·ed its complaint in this proceeding upon respondent, Jacob L. Goldman, alias J. L. Coleman, an individual, trading as ~\tlas Health Appliance Co., charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. Subsequently, the respondent filed his answer, in which answer he admitted all of 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, 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, Jacob L. Goldman, alias J. L. Coleman, is an individual trading as Atlas Health Appliance Co., with his office and principal place of busin~ss at 2-130 West Sixth Street, Los Angeles, Calif., from which address he transacts business under the above trade name.

38 I<'EDERAL TRADE COMMISSION DECISIONS: Findings 32F.T. 0:.

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 device Ol" apparatus designated Atlas Short Wave Diathermy. In the course and conduct of his business, the respondent causes said device, when sold, to be transported from his place of" business in the State of California 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 device, 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 device by the United States mails and by various other means in commerce, as commerce is defined in the Federal Trade Commission Act, and respondent has also disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements conc.erning his product, by various means, for the purpose of inducing, and which are likely to inducer directly or indirectly, the purchase of his 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, by radio continuities, and by circulars, leaflets, pamphlets, and other advertising literature, are the following: The Atlas Short Wave Diathermy enables you to enjoy its many benefits In your own home.

"Simplicity of operation is made possible for self-treatment without an attendant.

Self-treatments with the Atlas, whether for acute or chronic ailments, arevery easUy administered.

Although for some time only professionally available, Short Wave Diathermy may now be used by yourself in the privacy of your own home. The various ailments which readily respond to this pleasant yet effectivemethod of treatment include the following: HEAD SKIN THROAT sinus boils asthma neuralgia abscesses laryngitis bay fever carbuncles tonsillitis headache infections irritations colds ATLAS HEALTH APPLIANCE CO. 39 32 Findings STOMACH AREA CHEST MALE DISORDERS gastritis bronchitis prostate colonic dis- pneumonia inflammation orders colds of bladder constipation pleurisy lumbago FEMALE DISORDERS kidney menstrual pains liver pelvic inflammation also High blood pt·essure Muscular ailments Arthritis Insomnia Neuritis Indigestion Inflamed joints Anemia Sprains Impetigo and other ailments.

Inflammation in various parts of the body known to us by many different names, causes untold suffering. In this field, Short Wave Diathermy is most bent>flclal. Marked success has been met with in treating pelvic conditions and relieving menstrual pains.

The use of Atlas Short Wave Diathermy is always safe, harmless and health improving.

For interesting clinical reports, be sure to check your ailment and mail, or state ailment when writing.

Arthrttis Neuritis Colonic Disorders Asthma Boils Chronic Cough Sinusitis Hi-blood pres. Pleurisy Kidneys Bladder Trouble Rheumatism Lumbago Colds Headaches Prostate Female Trouble Atlas Short Wave Diathermy accords its users amazing results. Hardly a day passes that we're not asked whether our device is good for this disease or such a condition and which, after investigation, we have to report in the negative. If it is in the positive we do not hesitate to state our findings just as surely as we do not believe in hiding our light under a bushel. Our technician will gladly give you this test when you call u01 for a home demonstration.

The soothing, penetrating heat of Short Wave Diathermy creates-in effecta mild, artificial fever in the affected part, and definitely aids in killing bacteria.

PAR. 4. By the use of the representations hereinabove set forth and other representations similar thereto not specifically set out herein, respondent represents that his device, designated as Atlas Short 'Vave Diathermy, when used by the unskilled lay public in the treatment of self-diagnosed diseases or ailments of the human body by individual self-application in the home, is a scientific, safe, harmless, and effective means and method for the cure and effective Findings 321<'. T. Q. treatment of the diseases and ailments and other ailments of the human body set forth in detail in parag-raph 3; that it definitely aids in killin~ bacteria and that its use will have no ill effects upon the human body.

Furthermore, said respondent represents expressly and by implication that he is trained and. expedenced in physical therapy and in the technique of diagnosing and treating pathological conditions of the human body by the application of short wave diathermy. PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. The device will not accomplish the results claimed by tlw respondent and. is not a scientific, safe, harmless, or effective means and. method to be used by the unskilled lay public in the cure or treatment of self-diagnosed diseases and ailments of the human body set forth in detail in paragraph 3 hereof by individnal self-application in the home. . Furthermor<?, respondent is not trained and experienced in physical tlwrapy or in the technique of diagnosing and treating pathological condition-> of the human body by the application of short wnve diathermy.

P.\R. 6. In addition to the representations hereinabove set forth, the respondent has also engaged in the dissemination of false adver-. tisements in the manner above set forth, in that said advertisements so disseminated, fail to reveal that the use of said device under the ~.:cnditions pre~ribed in said advertist>ments or under such· conditions as are customary or usual, may result in serious and irreparable injury to health.

·PAR. 7. In truth and in fact, the device sol<l and distributed by the re~pondenl; as aforesaid, designated as .\tlas Short ·wave Diathermy, is composed principally of a short-wave generator hous~d in a portable cabinet. The current is a modified Coulpitt Circuit,' using a transformer of 1,150 volts (half-wave), two Taylor T -55 tubes, plus the regular chokes for proper control. The output. is 01~ approximately a 16 meter wave length. The power output Js 1~:> to 150 watts calibrated on a photoelectric watt meter. Under archnary lamp lo.Hl, it may be considered as 160 to 175 watts outpu~. No cable is u~ed with this apparatus as it is not adapted for tins mqdality. Power is transmitted by two insulated condenser p~ds 6 by 8 inches, or by a small 4 by 7 inch pad used in connection wtth one of the larg-er pads.

The self-application of this device may cause serious injury to health when used by the unskilled lay public in the treatment of self-diagnosed diseases and ailments of the human body. ATLAS HEALTH APPLIANCE CO. 41 Conclusion By reason of technical inexperience 'on the part of laymen, an _jmproperly adjusted electrode may produce a spark gap between the _electrode and the skin, causing severe electric burn. · The use of said device, under the conditions prescribed in said advertisements or under such conditions as are customary or usual, by the un~killed lay public may result in serious or irreparable injury to health.

. Specifically such use, as aforesaid, may result in: Peritonitis and blood poisoning, in conditions of acute inflammation, such ns boils, carbuncles, acute arthritis due to infection, acute pelvic infection in the female, acute cystitis, acute sinus infections, tonsillitis, lung abscess, appendicitis, and acute prostatitis; serious or fatal hemorrhage when applied in any conditions where there is a tendency to hemor- _rhage or in which congestion of the blood would nggravate existing .troubles, such as varicose veins, gastric ulcer, ulcerative colitis, men- }:truation, and female disorders, such as menorrhagea, dysmenorrhelJ, from retroversion or anteversion of the uterus, subinvolution of the uterus from any cause, uterine infections and chronic pelvic inflammatory disea,;es; nbortion, followed by subinvolution, putrefaction of .infection with disastrous results in most cases when said device is applied by the layman during pregnancy; stimulating the growth .of cancerous cells, metastasis or in spreading the trouble to other tis:;;ues when diathermy is applied to areas which may be affected by malignant tumors, and in those areas of the skin where the sense of heat has been lost due to injury or impairment of the peripheral nerves, the application of diathermy may result in tissue destruction and severe burns.

PAR. 8. The use by the respondent of the foregoing false, deceptive, and misleading advertisements with respect to his device, disseminated as aforesaid, has had and now has the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing jmblic 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 device. CONCLUSION The foregoing acts and practices of the respondent, as herein found, are all to the prejudice and injury of the public and constitute unfairand deceptive acts and practices in commerce within the intent and llleaning of the Federal Trade Commission Act. 42 l<'EDERAL TRADE COMMISSION DECISIONS Order 32F.T.C.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- ~ion upon the complaint of the Commission and the answer of 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 hearing as to said facts, and the Commission having made its findings as to the facts ~md its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Jacob L. Goldman, alias J. L. Coleman, an individual, trading as Atlas Health Appliance Co., or trading under any other name or names, his representatives, agents, und employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of his device designated as "Atlas Short 'Vave Diathermy" or any other device of substantially similar construction, whether sold under the same name 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, which advertisement represents directly or through inference, that respondent is trained or experienced in physical therapy or in the technique of diagnosing or treating pathological conditions; that respondent's device when used by the unskilled lay public constitutes n scientific, safe, harmless or effective means or method for the treatment of: · Sinus, sinusitis, neuralgia, hay fever, headache, colds, boils, abscesses, carbuncles, infections, asthma, laryngitis, tonsillitis, throat irritations, chronic coughs, gastritis, colonic disorders, constipation, pleurisy, lumbago, kidney disorders, liver disorders, bronchitis, pneumonia, prostate disorders, inflammation of bladder, menstrual pains, pelvic inflammation, high blood pressure, arthritis, neuritis, inflamed joints, sprains, rheumatism, muscular ailments, insomnia, indigestion, anemia, or impetigo, or that said device aids in killing bacteria ;

or which advertisement fails to reveal that the unsupervised use of ~aid device by persons not skilled in the diagnosis, analysis, and methods of treatment of disease may result in serious and irreparable injury to health.

ATLAS HEALTH APPLIANCE CO. 43 ~2 Order 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 "comhlerce" is defined by the Federal Trade Commission Act, of said -device, which advertisement contains any of the representations prohibited in paragraph 1 hereof; or which advertisement fails to il.'eveal that the unsupervised use of said device by persons not skilled in the diagnosis, analysis, and methods of treatment of disease may result in serious and irreparable injury to health. It is fwrther ordered, That the respondent shall, within 10 days after 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 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.

Syllabus 32F.T.C.