Morehouse Manufacturing Company, trading as; the Shaving Powder Company

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IN THE l\IATTER OF MOREHOUSE 1\IANUF ACTURING COl\IP ANY, TRADING AS THE SHAVING POWDER COl\IP ANY COl\IPLAINT, FI:-.IDINGS, AND ORDER IN REGARD TO Tile ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CO:'IGRESS APPROVED SEPT. 26, 1914 Dflcket 3721. Compla.int, Feb. 23, 19J9-·Deeision, Dec. 11. 19J,.O Wiler~ a corporation ~ngaged in manufacture of its "Mugic Shaving Powder" for hair removal and in interstate sale thereof; in ad,·erti~t:>Iuents of its said product which it disseminated and cuu;;ed to be disseminated through insertion lu newsp11pers having gent:>ral circulation among the colort:>d race and distributed in commerce among the various States, and through other means in commerct:>, aud otherwi~e, and which were intt:>ndf'd und lik!)lY t() induce pm·chast:> of its said product- ( a) Represented <lirt:>ctly and by inference thllt said "lllngic Shaviug Powder" was a new method of remo\·ing hair and that a person could slun-e without a ruzor and that its use was harmless;

Facts being said product wus a depilatory wllkh accomplished results by dissolving hair rather than by cutting as ln shaving, and was not a new method for removing hair and was not harmless in all cases, but, by >virtue of presence therein, as solvents and active ingredients, of barium sulphide and calcium hydroxide might, under customary and usual conditions, be harmful to skin and underlying structures of people having tender skin, and, more particularly, those of the white race, and in such cases result in temporary rash or dermatitis, and also, by reason of prest:>nce of said ingredients, might result in injury to eyes of the careless user; and (h) Failed to include in its said advertisements cautionary statements to the effect that said powdt:>r should 110t be used by those having tender skin and should not be allowed to get into eyes of user thereof; With capacity and tendency to mislead and deceive a substantial portion of purchasing public into erroneous and mistaken belief that such statements. representations, and advertisements were true and that its said product was a new method of removing hair and was not a depilatory, and that its use was unqualifiedly harmless and of causing portions of said public bf'cause of such belief, thus engendered, to purchase its said preparation: Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and constituted unfair and dect:>ptlve acts and practices in commerce. Defore lltr. John lV. Addison, trial examiner. Air. Reuben J. ijj artin and ill r. M &rton N esm.ith for the Commission. Adarm.s, Douglas & Bt•ennan, of Savannah, Ga., for respondent. 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 Complaint 32F. T. C.

Trade Commission having reason to believe that the Morehouse Manufacturing Co., a corporation, trading under the name of Shaving Powder Co., hereinafter referred to as the 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, :Morehouse Manufacturing Co., is a corporation created and existing under and by virtue of the laws of the State of Georgia with its principal office and place of business located in the city of Savannah within the said State of Georgia. PAR. 2. Said respondent, trading under the name of Shaving Powder Co., is now, and for more than 5 years last past has been, engaged in the manufacture, distribution, and sale of a preparation for use in removing hair under the trade name "Magic Shaving Powder." Said respondent causes said preparation, when sold by it, to be transported from its place of business in Savannah, Ga., to the purchasers thereof located in various States of the United States other than the State of Georgia and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said preparation 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 aforesaid business the respondent has disseminated and is now disseminating, and bas caused and is now causing the dissemination of, false advertisements <:oncerning its said preparation by insertion in newspapers having a general circulation, all of which are distributed in commerce among and between the various States of the United States, and by other means in commerce as commerce is defined in the Federal Trade Com· mission Act for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its said preparatio~; and has disseminated and is now disseminating, and has caused .and. IS now causing the dissemination of, false advertisements concernmg 1ts said preparation by various means for the purpose of inducing a?d which are likely to induce, directly or indirectly, the purchase of It~ said preparation in commerce as commerce is defined in the Federa Trade Commission Act. Among and typical of the false state.ment~ and representations contained in said advertisements dissemmate and caused to be disseminated as aforesaid are the following: Magic Shaving Powder. Shave without a razor. 1\Iagic Shaving Powder. No more trouble.

At last science has found a way to remove a beard without shaving. THE SHAVING POWDER CO. 55 ti3 Complaint Merely apply Magic Shaving Powder as directed then wipe ofr leaving a clear smooth skin.

Have a clean shave without using a razor. Simply wipe your beard off. All of said statements together with other statements of similar import and meaning appearing in respondent's advertising literature, purport to be descriptive of respondent's preparation and of its effectiveness in use. In all of its advertising literature, respondent, directly and by inference, through the statements and representations herein set out, and through other statements and representations of like or similar import and effect, represents that the preparation, "Magic Shaving Powder," is, in fact, a shaving powder; that it is a new method of removing hair, and that its use is harmless and will leave the user with a clear, smooth skin. PAR. 4. The representations made by the respondent and the implications therefrom as to the nature and effectiveness of its said preparation are false or grossly exaggerated, and greatly exceed those which might truthfully be made for said preparation. In truth and in :fact, Magic Shaving Powder is not a shaving powder; it is not a new method for removing hair; and Magic Shaving Powder is not harmless in all cases and its use will not leave the user with a clear, smooth skin.

In truth and in fact, the use of Magic Shaving Powder may, under customary and usual conditions, be harmful to the skin and the underlying structures of the user thereof because o:f the ingredients from which said preparation is compounded, and its use may also result in severe injury to the eyes, o:f the user thereof. PAR. 5. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and advertisements disseminated as aforesaid with respect to said preparation, Magic Shaving Powder, 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 false statelUents, representations, and advertisements are true and that respondent's said preparation, Magic Shaving Powder, is in fact a shaving powder, is a new method of removing hair and that its use is harmless and will leave the user with a clear, smooth skin, and causes a portion of the purchasing public because o:f said erroneous and mistaken belief so engendered to purchase respondent's said Preparation. As a result thereof injury has been and is now being done by respondent to a substantial portion of the purchasing public in commerce among and between the various States of the United States and in the District of Columbia. . 56 FEDERAL TRADE COMMISSION. DECISIONS Findings 32F. T. C.

PAR. 6. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce ,,]thin 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 the 23d day of February 1939, issued and subsequently serwd its complaint in this prn·eeding upon said respondent, Morehouse Manufacturing Co., trading as The Shaving Powder Co., a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On March 14, 1939, the respondent filed its answer in this proceeding. Thereafter, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts signed and executed by the respondent's counsel, ,V. ,V. Douglas, and ,V. T. Kelley, chief counsel for the Federal Trade Commission, subject to the approval of the Commission, may be taken as the facts in this proceeding and in lieu of testimony in support of the charges stated. in the complaint, or in opposition thereto, and that the said Commission may proceed upon said statement of facts to make its report, stating its findings as to the facts and its conclusion based. thereon, and. enter its order disposing of the proceeding with· out the .filing of a report upon the evidence by the trial examiner, the presentation of argument or the filing of briefs. Thereafter, this proceeding regularly came on for final hearing before the Commission on said complaint, answer, and stipulation, said stipulation having been approved, accepted, and filed and the Commission ha"ing duly considered the same, and now being fully ad.vised in the premises, finds that this proceeding is in the interest of the public and. makes its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, l\Iorehouse 1\Ianufacturing Co. is a corporation created. and existing under and by virtue of the laws of the State of Georgia with its principal office and place of business located in the city of Savannah within the said State of Georgia. PAR 2. Said respondent, trading under the name of The Sha:ving Powder Co., is now, and. for more than 5 years last past (respondent states for more than 39 years) has been, engaged in the manuftl~­ ture, distribution, and sale of n preparation for use in removing hall" THE EHAVING POWDER CO. 57 Findings under the trade name ''~lagic Shaving Powder." Said respondent cau;;es said pt·epamtion when sold by it to be transported from its place of business in Satannah, Ga., to the purchasers thereof located in various States of the United States other than the State of Georgia and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said preparation in comt11erce between and among the various States of the United Stares and in the District of Columbia. PAR. 3. In the course and conduct of its aforesaid business the respondent has disseminated and-has caused the dissemination of ad- Veitisements concerning its said preparation by insertion in newspapers having a general circulation among the colored race all of Which are distributed in commerce among and between the various States of the United States and by other means in commerce as comnwrce is· rlefined in the Federal Trade Commission Act for the purvase of inducing and which ''ere likely to induce rlirectly or indirectly the purchase of its said preparation; and has di;;semi11ated and has caused the dissemination of advetiisements concerning its preparation by various means for the purpose of inducing or which were likely to induce directly or inchrectly the purchase of its said preparation in commerce as commerce is defined in the Federal Trade Commission Act. Among and typical of the statements and representations contained in said adveriisements disseminated and caused to be disseminated as aforesaid are the following, which are true excerpts from said advertisements:

J\.Iagic Shaving l'owdPr. Shave without a ra?.OI'- Magic Shaving Powder. No more trouble.

At last scitmce has found a way to remove a beard without shaving_ 1\Ierely apply Magic Shaving Powdt>r as directed, then wipe off lt>ltving n dear, smooth skm.

Haxe a clean sh:n-e without U><ing a razor. Simply wipe your beard off. All of said statements together with other statements of similar import and meaning appl:'aring in respondent's adn•rtising literature, Purport to be descriptive of respondent's preparation and of its effectiveness in use. In all of its advertising literature respondent directly or by inference through the statements and representations herein set out and through other statements and representations of like or !iimilar import and effect represents that the prepnration ".Mngic Shaving Powder" is a new method of removing hair, that a person can shave without a razor and that its use is hannless . • PAR. 4. The representations made by respondent and the implications therefrom as to the nature and effectiveness of its said prepura- ~ion are deceptive and exaggerated and greatly exceed tho,<;e which Order 32F. T. C.

might truthfully be made for said preparation in that Magic Shav· ing Powder is a depilatory which accomplishes results by dissolving hair rather than by cutting as in shaving and is not a new method £or removing hair and Magic Shaving Powder is not harmless in all cases as hereinafter specified.

Two of the active ingredients of Magic Shaving Powder are barium sulphide and calcium hydroxide which ingredients are capable of dissolving horny substances such as hair and the use of Magic Shaving Powder may under customary and usual conditions be harmful to the skin and the underlying structures thereof of people who have tender skin and more particularly those of the white race, in that the use of the preparation by people with tender skins and more par· ticularly those o£ the white race may result in a temporary rash or dermatitis. Also because of the ingredients barium sulphide and calcium hydroxide its use may result in injury to the eyes of the careless user.

PAR. 5. Respondent has discontinued all newspaper, periodical and direct· letter advertising since February 24, 1939. PAR. 6. The use by the respondent of the foregoing, deceptive and exaggerated statements, representations, and advertisements dissemi· nated as aforesaid with respect to said preparation, Magic Shaving Powder, has had the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and advertise· ments are true, and that respondent's said preparation is a new method of removing hair, is not a depilatory, and that its use is unqualifiedly harmless, and has caused a portion of the purchasing public, because of said erroneous and mistaken belief so engendered to purchase re· spondent's said preparation.

CONCLUSION .The aforesaid acts and practices of respondent as herein found are all to the prejudice and injury o£ 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 Com· mission upon the complaint of the Commission, the answer of the respondent, and a stipulation as to the facts entered into between the respondent herein, and W. T. Kelley1 .chief counsel for the Commission, which provides, among other things, that without fur· THE SHAVING POWDER CO. 59 53 Order ther evidence or other intervening procedure, the Commission may issue and serve upon the respondent herein~ findings as to the facts and conclusion based thereon, and an order disposing of the Proceeding, 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.

It i8 ordered, That the respondent, :Morehouse Manufacturing Co., a corporation, trading as The Shaving Powder Co., its officers, representatives, agents, and employees, directly or through any cor- Porate or other device in connection with the offering for sale, sale, or distribution of Magic Shaving Powder, or any product of substantially similar composition, or possessing substantially similar Properties, whether sold under the same name or any other name, do forthwith cease and desist from directly or indirectly- 1. Disseminating or causing to be disseminated any advertisements (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 in.ference that Magic Shaving Powder is a new method for removing hair or that the method prescribed for the use of Magic Shaving Powder constitutes shaving, or which advertisements fail to contain cautionary statements to the effect that Magic Shaving Powder should not be used by those having a tender skin and should not be allowed to get into the eyes of the user thereof.

2. Disseminating or causing to be disseminated any advertisement l.>y any means for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase in commerce as "comrnerce" is defined in the Federal Trade Commission Act, of said Magic Shaving Powder, which advertisements contain any of the representations prohibited in paragraph 1 hereof, or which fail to contain cautionary statementf] to the effect that Magic Shaving Powder should not be used by those having a tender skin, and should not be allowed to get into the eyes of the user thereof. It is fwrthe1' 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.

60 FEDERAL TRADE COMMISSION ·DECISIONS Syllabus 32F.'l'.C.