Beeman'S Laboratory, Inc.

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IN THE MATTER OF BEEMAN'S LABORATORY, INC., AND E. A. RUSH, MRS. J. F. RUSH, AND H. C. ALLEN, INDIVIDUALLY AND AS OFFICERS THEREOF COl\IPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket H51. Complaint, Jan. 25, 191,1--Decision, ltlar. 13, 19.p Whe1·e a corporation and three individuals, wl10 were its president, vice president and secretary, and director, determined, directed, and administered its business policies and sales activities, or participated In so doing, engaged in interstate sale and distribution of their so-called "DQR'' or "BQR Remedy" medicinal prepamtion; in advertisements which they disseminated and caused to be disseminated in commerce and otherwise through the mails, newspapers, periodicals, radio continuities, anll other advertising literature-- Represented, directly and by implication, that snfd "BQR" preparation posst>ssetl value in preventing colds and cold inft>ction, constituted a cure and remedy or competent and effective treatment for colds, and would overcome cold discomforts and the misery of tough C'Oids; facts bt>ing "BQit" was nothing more than a laxative with mild analg-esic properties, had no curative effect on the underlying factors which cause colds, would not prevent colds, and had no therapeutic value in the treatment of colds in excess of furnishing temporary relief from some of the symptoms often associated therewith by reason of its amllgesic prompt>rties and of furnishing a laxative action to the bowels, anu would not accomplish other results claimed therefo1· as above set forth;

With effect of misleading and deceiving a substantial portion of the purchasing public into the erroneous and mistaken belief that such false representations of its said product were true, and of inducing thereby its purchase thereof: lleld, That such acts and practices, under the circumstances set forth, we1·e all to the prejudice anil injury of the public, and constituted unfair and deceptive acts and practices in commerce.

Jfr. John W. Carter, Jr.; for the Commission. Col\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said net, the Federal Trade Commission having reason to believe that Beeman's Laboratory, Inc., n corporation; E. A. Hush, individually and as presidellt of Beemnn's Laboratory, Inc.; 1\frs. J. F. Hush, individually and no.; l"ice president and secretary of Beeman's Laboratory, Inc.; anti H. BEEMAN'S LABORATORY, INC., ET AL. 895 894 Complaint C. Allen, individually and as director of Beeman's Laboratory, Inc., 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:

PARAGRAPH 1. Respondent, Beeman's Laboratory, Inc., is a corporation organized and existing under the laws of the State of Georgia, with its principal office and place of business located at 70 Central Avenue S,V., Atlanta, Ga.

The respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, all of Atlanta, Ga., are the president, vice president and secretary, and director, respectively of the respondent, Beeman's Laboratory, Inc., with their office and principal place of business located at 70 Central Avenue SW., Atlanta, Ga.

PAR. 2. Respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, determine, direct, and administer, or participate in determining, directing, and administering the business policies and sales activities of the respondent, Beeman's Laboratory, Inc., as hereinafter set forth.

PAR. 3. Respondent, Beeman's Laboratory: Inc., and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, acting as aforesaid, are now, and for more than 1 year last past have been, engaged in the sale and distribution of a medicinal preparation designated as. "BQR," and as "BQR-Remedy" in commerce among and between the various States of the United States.

Respondent, Beeman's Laboratory, Inc., and respondents, E. A. Rush, :Mrs. J. F. Rush, and H. C. Allen, acting as aforesaid, cause said medicinal preparation when sold to be transported from respond- ('llts' place of business in the Sbte of GPorgia to purchasers thereof located in various other States of the United States. Respondent, Deeman's Laboratory, Inc.~ and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, acting as aforesaid, maintain_ and at. all times mentioned herein have maintained, a course of trade in the said medicinal preparation in commerce between and among the various States of the United States.

PAR. 4. In the course and conduct of their aforesaid business, respondent, Beeman's Laboratory, Inc., and respondents, E. A. Rush, .Mrs. J. F. Rush, and H. C. Allen, acting as aforesaid, have dis- ~eminated and are now disseminating and h:we caused and are no"· causing the dissemination of false adnrtisements concerning their ~aid preparation by United States mails and by nrious other means in commerce, as commerce is defined by the Federal Trade Commis- Coml)laint 32F. T.C.

sion Act; and respondents as aforesaid have also disseminated and are now disseminating and have caused and are now causing the dissemination of false advertisements concerning their said preparation by various means for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of their said preparation in commerce, as commerce is defined by the Federal Trade Commission Act.

Among and typical of the false stat€ments and representations contained in the aforesaid advertisements, disseminated and caused to be disseminated by the United States mails and by advertisements in newspapers and periodicals, by radio continuities, and by other advertising literature, are the following:

B. Q. R. Remedy Fights Colds.

During un.'lea;;oral weather periods k{>{'p B. Q. R. Cold Remedy on hand for use in preventing colds.

• • • The danger of cold infection is greater; hence it is wise to keep at hand reliable tested remedy which has been used successfully by thousands of people • • •.

Fight those cold db;comforts with the fighting C?ld remedy-BQR-and remember it takes a fighting cold remedy t.o lick the misery of a tough cold. Get BQR-the fighting cold remedy-for your nagging cold discomforts • • •. Through the use of the statements and represe~tations hereinabove set forth and in other statements and representations not specifically set out herein, aU of which purport to be descriptive of the therapeutic properties of the aforesaid preparation, the said respondents, as aforesaid, represent directly and by implication that their said preparation possesses value in preventing colds and cold infection; that it is a cure and a remedy for colds and will overcome cold discomforts and the misery of tough colds; and that it constitutes a competent and effective treatment for colds.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact respondents' preparation is nothing more than that of a laxative having mild analgesic properties. This preparation has no curative action on the underlying factors that cause colds, and it will not prevent colds or cold infection. It is not a cure or remedy for colds, and will not overcome cold discomfort or the misery of tough colds. It has no therapeutic value in the trl"atment of such condition in excess of furnishing temporary relief from some of the symptoms often associated with colds and of furnishing a laxati,·e action of the bowels. PAR. 6. The use by the said respondents, as aforesaid, of the foregoing false, deceptive, and .misleading statements and representations, and others of a similar nature, disseminated as afon>said. has had and BEEMAN'S LABORATORY, INC., ET AL. 897 8!)4 Findings now has the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements, representations, and advertisements are true, and to induce a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' preparation.

PAR. 7. The aforesaid acts and practices of the said respondents as herein alleged are all to the prejudice and injury o:f 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 'fr<Jde Commission Act, the Federal Trade Commission on the 25th day of January 1941, issued, and on the 27th day of January 1941, o;served, its complaint in this proceeding upon respondent, Beeman's I .. ~boratory, Inc., and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, individually, and as president, vice president and secretary, and director, respectively, of respondent, Beeman's Laboratory, Inc., charging said respondents with unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On February 15, 1941, respondent, Beeman's Laboratory, Inc., and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, jointly and severally in their individual capacities and as president, vice president and secretary, and director, respectively, o:f Beeman's Laboratory, Inc., filed their answer in which 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 ~nd waived the filing of briefs and the presentation of oral argument. Thereafter, the proceeding regularly came on for final hearing before the Commission on the srtid 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 fls to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Beeman's Laboratory, Inc., is a corporation organized and existing under the laws of the State of Georgia with its principal office and place of business located at 70 Central A venue SW., Atlanta, Ga.

898 FEDERAL 'I'TRADE COMMISSION DECISIONS Findings 32F.T.C.

Respondents E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, are the president, vice president and secretary, and director, respectively, of respondent, Beeman's Laboratory, Inc., with their office and principal place of business located at 70 Central Avenue S,V., Atlanta, Ga. These respondents determine, direct, and administer, or participate in determining, directing, and administering, the business policies and sales activities of respondent, Beeman's Laboratory, Inc. PAR. 2. Respondent, Beeman's Laboratory, Inc., and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, as aforesaid, are now and for more than 1 ye,lr last past have been engaged in the sale and distribution in commerce between and among the various States of the United States of a medicinal preparation designated "BQR" and ''BQR Remedy."

The said respondents cause the said medicinal preparation, when sold, to be transported from their said place of business in Georgia to purchasers thereof located in various other States of the United States, and they maintain and at all times mentioned herein have maintained a course of trade in the said medicinal preparation, designated as aforesaid, in commerce between and among the various States of the United States.

PAR. 3. In the course an<.l conduct of their aforesaid business, respondent, Beeman's Laboratory, Inc., and respondents, E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, as aforesaid, have disseminated and are now disseminating, and have caused and are now causing, the dissemination of false advertisements, concerning their aforesaid medicinal preparation, by the United States mails, and by various other means in commerce as commerce is defined by the Federal Trade Commission Act; and respondents, as aforesaid, have also disseminated, and are now disseminating, and have caused and are now causing, the dissemination of false advertisements concerning the aforesaid medicinal preparation, designated as aforesaid, by various means for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of their said medicinal preparation, in commerce, as commerce is defined in the Federal Trade Commission Act.

Among and typical of the false statements and representations contained in said advertisements, disseminated and caused to be disseminated by the United States mails, by advertisements in newspapers, periodicals, radio continuities, and other advertising literature, are the following:

BEEMAN'S Laboratory, INC., ET AL. 89fl 804 Conclusion BQR Remedy Fights Colds.

During unseasonal weather • • • keep BQR Cold Remedy on band for use in preventing colds.

• * * The danger of cold infection is greater; hence it is wise to keep at hand a reliable tested remedy wltic:h has been used successfully by thousands of people • * •.

Fight those cold discomforts with the fighting cold reml'dy-BQR-and remember it takes a fighting cold remedy to lick the misery of a tough cold. Get BQR-the fighting cold remedy-for your nagging cold discomforts * * •. PAR. 4. Through the use of the statements and representations hereinabove set forth and other similar statements and representations not specifically set out herein, all purporting to be descriptive of the therapeutic properties of tlh• aforesaid medicinal preparation, respondents represent, directly and by implication, that said preparation "BQR" possesses value in preventing colc.ls and cold infection; that it is a cure and remedy for colds and will overcome cold discomforts and the misery of tough colds; and that it constitutes a competent and effective treatment for colds.

PAR. 5. The foregoing representations are · grossly exaggerated, false, and misleading. Respondents' preparation "BQR" is nothing more than a laxative having mild analgesic properties. It has no curative action on the underlying factors that cause colds and it will not prevent colds or cold infection. It is not a cure or remedy for colds, and will not overcome cold discomforts or the misery of tough colds. Said preparation has no therapeutic value in the treatment of colds in excess of furnishing temporary relief from some of the symptoms often associated with colds by reason of its analgesic properties and of furnishing a laxative action to the bowels.

PAR. 6. The use by the said respondents of the foregoing false, deceptive, and misleading statements and representations, and others of a similar nature, with respect to their aforesaid preparation "llQR," sometimes otherwise d~signated as "llQ.R Remedy," 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 false statements, representations, and advertisements are true, and to induce a portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' slid preparation.

CONCLUSION The aforesaid nets and practices of the said respondents, as aforesaid, 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 32F.T. C.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the joint and separate 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 iB ordered, That respondents, Beeman's Laboratory, Inc., and its officers, and E. A. Rush, Mrs. J. F. Rush, and H. C. Allen, and their respective representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of their medicinal preparation "BQR," or any other preparation 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 (a) by means of the United States mail or (b) by any means in commerce, as commerce is defined in the Federal Trade Commission Act, which advertisements represent, directly or through inferenre, that respondents' medicinal preparation "BQR"- ( a) Is a cure or remedy for colds.

(b) ·wm prevent colds or cold infection.

(c) Has any curative value on the underlying factors which cause colds.

(d) Will overcome cold discomforts or the misery of tough colds. (e) Constitutes a competent and effective treatment for colds. (f) Has any therapeutic value in the treatment of colds in excess of that furnished by a laxative and a mild analgesic. 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 medicinal preparation "BQR," which advertisements contain any of the representations prohibited in paragraph 1 hereof. It i8 further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

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