Purex Corporation, LTD

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IN THE MATTER OF PUREX CORPORATION, LTD.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOI.ATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 10i4. Complaint, Mar. 29, 1940-Decisiun, Jan. 13, 1941 Where a corporation engaged in manufacture of its "Purex" chemical preparation for use as gel·micide, and in interstate sale and distribution thereof, ln advertisements of its said product which it disseminated and caused to be disseminated through the mails and by various other mf'ans in comrnt:>rce and otherwise, and including advertisements by circulars, leaflets, pamphlets, and other advertising literature- (a) Represented, In its said advertising, that said product was "a most powerful germicide" and, dir!'Ctly and by implication, that such preparation possessed such powerful germicidal qualities that solution made by adding two tnblespoonfuls thereof to gallon of water would, applied externally to livestoek or othf'r animals, destroy all bacteria and disinfect any surface cnts or sores; and (b) Represented that snell a solution would prevent spread of and destroy all bacteria on metal or wood equipment, through such statements as "• • • After thoroughly washing and cleaning equipment," "such as l\lilk cans, l\Iilking Equipnlf'nt, Feed Pans, Troughs, Etc.," "spray or soak with a di::<infecting hath made by using two tablespoons PUREX to each gallon of water";

Facts being, while such a solution possessed disinfectant and germicidal qualities, it was not effective for all purposes and would not destroy all bacteria or absolutely disinfect surface cuts and sores, nor, used as recommended and directed, prevent spread of all bacteria, nor destroy all such life on metal or wood or any other kind of equipment, but degree of effectiveness thereof, used as disinfectant or antiseptic, was df'pendent upon concentration of solution and length of time of exposure, in order for solution of product in question to constitute competent and effective germicide or disinfectant in treatment of surface cuts and sores, in accordance with accepted medical practice, it would have to contain at least 10 percent by volume of preparation in qtwstion in its undiluted form, and solution diluted, as above set forth in such a "disinfectant bath," was not an absolute chemical dh·dnft:>ctant or germicide, capable of killing all bacterial life;

With result that purchasing public was caused to believe it such an absolute chemical disinfectant, etc., as above set fot·th, through use of word "dishlf<>ctunt" as above stated, and portion of such public was also caused to believe that pro<hwt in question possess<>d strong-er get·micidal qualities whe-n u><ed in solution recommendt>d and directt:>d, through statement "a most powerful germidde," than was actually the case, and with effect, through use of forpgoing mblPnding statenwnts and rf'prt:>sentations, dis- ~<eminated as afore;:uid, of mi!<lt:>ading and deceiving substantial portion of purehnsing puhlic into enoneons and mistaken ht:>lief that such statements Comj)laint 32F.T.C.

and representations were true, and into purchase of substantial quantity of its said product:

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 deceptive acts and practices In commerce.

Before Mr. William C. Reeves, trial examiner. Mr. L. E. Creel, Jr. and .Mr. Robert Mathis, Jr. for the Commis- SIOn.

Mr. /. llenry Hm·ris, Jr., of Los Angeles, Calif., for respondent; Col\! PLAINT 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 Purex Corporation, Ltd., a corporation, 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 Purex Corporation, Ltd., is a corporation organized and existing under and by virtue of the laws of the State of California, with its factory and principal plac~ of business located at 1001 East Sixty-second Street, in the city of Los Angeles, State of California. The respondent is now and for more than 2 years last past has been, engaged in the business of manufacturing, selling, and distributing a chemical preparation known as "Purex," intended for use as a germicide.

In the course and conduct of its business, re::;pondent causes said preparation, when sold, to be transported from its place of business in the State of California to the purchasers thereof located in various other States of the United States and in the District of Columbia. The respondent maintains, and at all times mentioned herein has maintained a course of trade in said preparation in commerce among and between the various States of the United Stat£>s and in the District of Columbia.

PAR. 2. In the course and conduct of its afo.resaid business, the re~ spondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning its said product, by the United State'> 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 also disseminated and is now disseminating and has caused and is PUREX CORP., LTD. 397 395 . Complaint now causing the dif';semination of, ftilse advertisements concerning its said product, by various means, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its 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, and by circulars, leaflets, pamphlets, and other advertising literature, are the following: * * • It Is a most powerful gf'rmicide * • * BATHING: Livestock, Small Animals and Pests. Use 2 tablespoons PUREX to each gallon of wash water. Thil'! will aid in disinfecting any surface cuts or sores and will materially aid in prevf'nting the spread of contagious diseases. EQUIPMENT SANITATION: (Such as Milkcans, Milking Equipment, Feed Pans, Troughs, Etc.) After thoroughly washing and cleaning equipment, spray or soak with a disinfecting bath made by using two tablespoons PUI!EX to each gallon of water.

PAR. 3. Through the UE>e of the statements and representations hereinabove set forth and others similar thereto not specifically set forth herein, the respondent represents, directly or by implication, that its preparation Purex possesses such powerful germicidal prop- E>rties that a solution made by adding two tablespoons of the preparation to a gallon of water will, when applied externally to livestock and other animals, destroy bacteria and disinfect any surface cuts or sores; that such solution will prevent the spread of bacteria and will destroy bacteria on metal or wood equipment. PAR. 4. The foregoing representations are grossly exaggerated, false and misleading. 'While respondent's preparation possesses . germicidal properties, the solution in question is wholly ineffective. Such solution will not destroy bacteria and will not disinfect surface cuts or sores. It will uot prevent the spread of bacteria nor will it destroy bacteria on metal or wood or any other kind of equipment. In truth and in fact, in order for a solution of respondent's preparation to constitute a competent and effective germicide or disinfectant, such solution would have to contain at least 10 percent of respondent's preparation in its undiluted form.

PAR. 5. The use by the respondent of the fore>going false and misleading statements and representations, 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 £-rroneous and mistaken belief that such false statements ami representations are true, and into the purchase of substantial quantities of responde1_1t's product.

3226!15m 41-VOL,32-26 .398 FEDERAL TRADE COMMISSION DECISIONS Findings 32 F. T. C. PAR. 6. The aforesaid acts and practices of the 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. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal TraJ.e Commission Act, the Federal Trade Commission, on the' 29th day of March 194:0, issued, .and subsequently served, its complaint in this proceeding upon the respondent, Purex Corporation, Ltd., 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 l\fay 15, 1940, the respondent filed its answer in this proceeding. After the issuance of said <:om plaint and the filing of rpspondents answer tlwreto, testimony and other evidence in support of the allegations of said complaint were introduced by Hobert l\Iathis, Jr., for the Commission~ and in opposition to the allegations of the complaint by I. Henry Harris, Jr., for the respondent, before "\Villiam C. Reeves, an examiner 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, this proceeding regularly came on for final hearing before the Commission on the complaint, the aJ1swer thereto, testimony and other evidence, respondent having expressly waived the filing of briefs, 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 ihe public and makes this its findings as to the facts and its condusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Purex Corporation, Lt<l., is a coi·porntion organized and existing under and by virtue of the laws of the State of California, with its factory and principal place of business located at 9300 Rayo Avenue, in the city of Southgate, State of California. The respondent is now, and for more than 2 years last past has been, engaged in the bul>in('ss of manufacturing, selling and distributing a chemical preparation known as "Purex," intended for use as a germicide.

In the course and conduct of its business, respondent causes said preparation, when sold, to be transported from its place of business in the State of California to the purchasers thereof located in various .other States of the United Stat{'s and in the District of Columbia. PUREX CORP., LTD. 399 I<'indings The respondent maintains and for more than two years last past has maintained a course of trade in said preparation in commerce .among and between the various States of the United States. PAR. 2. In the course and conduct of its aforesaid business, the t·respondent has disseminated, and is now disseminating, and has ·caused, and is now causing, the dissemination of false advertisements .and statements concerning its 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 respondent's product. Respondent has also disseminated, and is now <lisseminating, and has caused, and is now causing, the dissemination of false advertisements concerning its said product by various means for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of its said product in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the statements and representations contained in said advertisements disseminated and caused to be disseminated as hereinabove set forth, by the United States mails and by circulars, leaflets, pamphlets, and other advertising literature are the following: • • • It is a most powerful germicide • • •. BATHING: Livestoek, Smull Animals and Pet.-. U;;e 2 tallle,;lloons Pur~:x to -each gallon of wash water. This will aid in disinfecting any surface cuts or ~ores and will materially aid in preventing the spread of contagious diseases. EQUIPMENT SANITATION: (Such as Milk-canR, Milking Equipment, Feed Pans, '.rroughs, Etc.) After thoroughly washing and cleaning equipment, spray or soak with a disinfecting bath made by using two tablespoons Purex to each _gallon of water.

PAR. 3. Through the use of the statements and representations hereinabove f:et forth, and others similar thereto not specifically set forth herein, the respondent represents, directly or by implication, that its prep..1.ration "Purex" possesses such powerful, germicidal qualities that a solution made by adding two tablespoons of the preparation to a gallon of water will, when applied externally to livestock and other .animals, destroy all bacteria and disinfect any surface cuts or sores; ·'lnd that such solution will prevent the spread of, and will destroy, .all bacteria on metal or wood equipment.

PAR. 4. The Commission finds that while a solution containing Purex in the strength recommended by respondent possesses disinfectant and gerimicidal properties, it is not effective for all purposes and will not destroy all bact£'ria or absolutely disinfect surface cuts and sores. Respondent's preparation, when used in the solution rec- ()mmended and as directed, will not prevent the spread of all bacteria, llor will it destroy all bactf•ria. on metal ot· woOll or any other kind of Order 32 F. T. C.

equipment. The degree of effectiveness of respondent's preparation when used as a disinfectant or antiseptic, is dependent upon the concentration of the solution used, the cleanliness of the surface treated and the length of time o£ exposure. In order for a solution of respondent's preparation to constitute a competent and effective germic.ide or disinfectant in the treatment of surface cuts and sores in accordance with the accepted medical practice, such solution would have to contain at least ten percent, by volume, of respondent's preparation in its undiluted form.

PAR. 5. The Commission further finds that while respondent's directions for diluting its product to make what is called a "disinfectant bath" may constitute an acceptable scientific use o£ the term "disinfectant," such use of said term is misleading to the pmchasing public in that it causes the public to believe that such diluted solution is an absolute chemical disinfectant or germicide capable of killing all bacterial life. The statement "It is a most powerful germicide" is also misleading in that it causes a portion of the purchasing public to believe that respondent's product possesses stronger germicidal properties when used in the solution recommended and as directed than is actually the case. · PAR. 6. The use by the respondent of the foregoing misleading statements and representations disseminated us herein set forth has the capacity and tendency to, and does, mislead and deceive a substantial portion o£ the purchasing public into the erroneous and mistaken belief that such statements and representations are true and into the purchase of a substantial quantity of respondent's product designated as "Purex."

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 o£ the Federal Trade Commission Aet. ORDER TO CEASE AXD DESIST This proceeding having been heard by the Federal Trade Cormnission upon the complaint of the Commission, the answer of respond- ~nt, testimony and other evidence taken before 'Villiam C. Reeves, an examiner of the Commission theretofore designated by it, in support o£ the allpgations of said complaint, and in opposition thereto, respondent having waived the filing of briefs, and oral argument not having been requested, and the Commission having ma<le its PUREX CORP.~ LTD. 401 395 Order 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, Purex Corporation, Ltd., a corporation, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of its product designated as "Purex," or any product of substantially similar composition 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 by means of the United States mails or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, which advertisement represents, directly or through inference: (a) That a solution containing any amount less than 10 percent of respondent's pre.paration is a competent or effective germicide for the treatment of surface cuts or sores.

(b) That a solution of respondent's preparation containing two tablespoonfuls of such preparation to each gallon of water used i!? a competent or effective disinfectant or "disinfecting bath" for use on metal or wood surfaces, except in those cases where such surfaces have been previously cleaned and thoroughly washed. (c) That a solution containing two tablespoonfuls of respondent's preparation to one gallon of 'vater is capable of killing all forms of bacterial life.

(d) That respondent's preparation possesses any disinfectant or germicidal or antiseptic properties in excess of such properties as it ~.ctually possesses.

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.

It is further o1·dered, 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 ~nd form in which it has complied with this order.

Syllabus 32F. T. C~