Philip R. Park, Inc

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IN THE ?latter OF PHILIP R. PARK, INC.

COMPLAINT, FINDINGS, .AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF .AN .ACT OF CONGRESS .APPROVED SEPT. 26, 1914 Docket 3815. Complaint, June 9, 1939-Deaiaion, JutUJ SO, 1941 Where a corporation engaged in the competitive interstate sale and distribution of a dehydrated kelp product in powdered and tablet form designated respectively as "Gt·anular Parkelp" and "Parkelp Tablets"; by advertisements In newspapers and periodicals and by circulars and leaflets, pamphlets and other advertising material and by radio broadcasts- (a) Represented that Its said preparation was rich in iodine, iron, calcium, and other minerals which were not present in land tot>dl'! :. '\VOUld· correct mineral deficiency, build resistance to mineral deficiency diseases, and furnish food minerals of value In combating goiter, anemia, and other mineral deficiency diseases; and contained Iodine, iron, copper, calcium, phosphorus, sodium. potassium, .magnesium, sulphur, and other minerals In quantities sufficient to have therapeutic value in the treatment and prevention of diseases or conditions resulting from a deficiency in such minerals, listing various diseases claimed to be thus caused; and (b) Represented that the average diet of the American people Is deficient In the minerals necessary for the proper functioning and health of the human body, and that vegetables such as lettuce, celery, asparagus, spinach, etc.• are deficient In such necessary minerals;

Facts being that the only mineral appearing in Its product In an amount that would be of therapeutic value was Iodine; therapeutic value thereof was limited to the value of its Iodine content, It being beneficial only in conditions resulting from an iodine deficiency and where administration of Iodine was indicated; and Its said preparation would not correct mineral deficiency, build up resistance to mineral deficiency diseases, or furnish food minerals other than iodine In quantities sufficient to combat such diseases; and, contrary to its claims, all the other minerals listed are present in varying amounts In land foods and their average diet contains as much as health requires;

With capacity and tendency to mislead and deceive purchasers into the erroneous belief that such misrepresentations were true and into the purchase of substantial quantities of Its product, with result that trade was unfairly diverted from Its competitors to it:

Held, That such acts and practices were all to the prejudice and injury of the public, and competitors, and constituted unfair methods of competition In commerce and unfair and deceptive acts and practices therein. As respects etrect of seller's dehydrated kelp product on mineral deficiencies or its therapeutic value In the treatment or prevention of anemia or other mineral deficiency diseases In human beings, testimony with reference to certain biological tests made upon rats to determine effect of said product In cases of anemia, was of little or no probative value, It appearing that there was no testimony on the relationship between the effect of such tests upon rats as compared with humans, or the relationship between the amounts ingested by the rats under test as compared with the amount PHILIP R. PARK, INC. 467 466 Complaint which would be ingested by human beings under the directions for use, and that while test in question was made specifically to determine etrect of said product on anemia caused by an iron or copper deficiency, which commonly appears in rats fed exclusively on a' diet of mllk, anemia In humans caused by such a deficiency in the diet is very rare as compared with other recognized forms of said ailment.

Before Mr. William 0. Reeves and Mr. John W. Addi.8on, trial exammers.

Mr. Robert Mathi<J, Jr. for the Commission. Mr. Daniel Douglwrty, of Los' Angeles, Calif., 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 Trade Commission, having reason to believe that Philip R. Park, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to said Commission that a. proceeding by it in respect thereof would be ~n the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent, Philip R. Park, Inc., is a corporation, organized, existing, and doing business under the laws of the State of California, with its principal place of business located at San Pedro, Calif. It is now, and for some time last past has been, engaged in the sale and distribution of a dehydrated kelp product in powdered and tablet form, designated, respectively, as Granular Par kelp and Parkelp Tablets, in commerce between and among the various States of the United States and in the District of Columbia. Respondent causes, and has caused, said products, when sold, to be transported from San , Pedro, Calif., to purchasers thereof located in the various States of the United States and in the District of Columbia. There is now, and has been for some time last past, a course of trade by said respondent in such merchandise in commerce between and among the various States of the United States and in the District of Columbia. In the course and conduct of its business, respondent is in competition with other corporations and with individuals and partnerships engaged in the sale and distribution of like or similar products, in commerce between and among the various States of the United States and in the District of Columbia. , PAR. 2. In the course and conduct of its aforesaid business, the respondent has disseminated, and is now disseminating, and has caused and is now causing the dissemination of, false and misleading advertising concerning its said product, by United States mail, by inserting Complaint 33F. T.C.

the same in newspapers and periodicals having a general circulation, and also in circulars and other printed or written matter, all of which are distributed in commerce among and between the various States of the United States, and by continuities broadcast from radio stations which have sufficient power to, and do, convey the program emanating. therefrom to listeners located in various States of the United States other than the State in which said broadcasts originate, and by other means in commerce, as commerce is defined in the Federal Trade Commission Act, for the purpose of inducing, and which is likely to induce, directly or indirectly, the purchase of its said product. Among and typical of the false statements and representations contained in said advertising, disseminated and caused to be disseminated as aforesaid, are the following:

1. Parkelp is amazingly rich in iodine, iron, calcium and other food minerals which land foods lack.

2. Builds resistance to mineral deficiency diseases. 3. PALE GIRLS fin!J- sea plant better than rouge. Girls who lack colorful lips and cheeks should know that their blood stream needs more of certain minerals. No amount of rouge can bring beauty that is truly glamorous and sparkling. The romantic story of kelp-the wonder plant of the sea-reveals that it is a veritable storehouse of iron, iodine and those other minerals needed to attain mineral-rich blood, rosy cheeks, red lips and sparkling eyes. For an aid to natural beauty, eat kelp-in its pure forlll-not mixed with anything else.

4. Kelp is today recognized as nature's richest source of essential food minerals for combating goiter, anemia and other mineral deficiency diseases. 5. If you need food iodine, food manganese and calcium, you will find Parkelp nn easy, economical way to add these food minerals to your diet. 6. It is interesting to know that lack of food minerals in such land-grown vegetables as lettuce, celery, asparagus, spinach, etc., which form a part of our /daily diet, often results In deficiency conditions of the body. You can add these important minerals and vitamins to your diet in an easy and economical way. Try Parkelp, a pure, deep sea kelp product that brings you food minerals from the sea. 7. There is a new and pleasant way of correcting this mineral and vitamin deficiency by using Parkelp-a pure deep-sea kelp product, 8. Kelp-a n~tural sea plant that is a source of important food minerals. 9. Many of our land-grown vegetables are lacking in food minerals and Parkelp will help you restore those minerals to your diet. 10. Those of you who feel that you need more food iodine, food iron and other minerals In your diet, you will want to try Parkelp--a pure deep-sea kelp product that is amazingly rich in food minerals which many of our land foods lack. PAR. 3. The respondent, through the use of the aforesaid representations and others not herein detailed, represents that the diet of the American people is deficient in the minerals necessary for the proper functioning and proper health of the human body; tha.t vegetables such as lettuce, celery, asparagus, spinach, etc., are deficient in these necessary minerals; that by the use of respondent's product, as -above PHILIP R. PARK, INC. 469 466 Complaint described, the deficiency in iodine, iron, calcium, manganese and other minerals will be supplied; that the use of respondent's product will also correct the alleged vitamin deficiency of the human body; that it will prevent and relieve anemia; and that the use of the product is of great therapeutic value to all who will take it. PAR. 4. In truth and in :fact the statements and representations of respondent hereinabove set out with respect to its product are false and misleading in the following respects: The only one of the minerals appearing in said product in an amount that would be of therapeutic value to anyone needing the minerals is iodine. The amount of minerals other than iodine contained in respondent's product is not sufficient to produce the results claimed in respondent's advertising. The diet of the American people is not deficient in the minerals mentioned in respondent's advertising, nor are the vegetables therein referred to deficient in such minerals. Respondent's product will not prevent and relieve anemia. Said product is refractory to digestion and the minerals therein contained are not made available for assimilation. Said product will not produce the general beneficial effects claimed by respondent.

PAR. 5. There are among the competitors o£ :respondent many other corporations and individuals and firms that manufacture, sell, and distribute products and preparations which contain some or all of the minerals contained in respondent's product, or other preparations designed for similar uses, in commerce, as hereinabove set out, that do not misrepresent the therapeutic value or efficiency of their products. PAR. 6. The use by respondent in its advertising matter and otherwise of the representations set forth in paragraph 2 hereof had, and has, a capacity and tendency to, and did, and does, deceive and mislead prospective purchasers and purchasers o£ its product into the belief that such representations are true.

On account of such mistaken and erroneous beliefs, a substantial portion of the purchasing public has been, and is, induced to purchase said product Parkelp from respondent, and thereby trade has been, and is~ unfairly diverted to respondent from competitors named in paragraphs 1 and 5 hereof. As a result thereof injury has been, and is now being, done by respondent to competitioll in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 7. The aforesaid acts and practices o£ the respondent as herein alleged are all to the prejudice of the public and of respondent's competitors, and constitute unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. Findings 33F.T.C.

Report, FINDINGS As TO THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on June 9, 1939, issued and subsequently served its complaint on the respondent, Philip R. Park, Inc., a corporation, charging it with the use of unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer thereto, t~stimony and other evidence in support of the allegations of said complaint were introduced by Robert Mathis, Jr., attorney for the Commission, and in opposition to the allegations of the complaint by Daniel Dougherty, attorney for the respondent, before trial examiners 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 said complaint, answer thereto, testimony and other evidence, report of the trial examiners upon the evidence and exceptions filed thereto, briefs in support of the complaint and in oppo~ sition thereto (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 the public and makes this its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Philip R. Park, Inc., is a corporation , organized, existing, and doing business under the laws of the State of California, with its principal place of business located at San Pedro, Calif. It is now and for some time last past has been engaged in the sale and distribution of a dehydrated kelp product in powdered and tablet form, designated respectively as "Granular Parkelp" and "Parkelp Tablets" in commerce among and between the various States of the United States and i~ the District of Collumbia. Respondent causes and has caused said products when sold to be transported from San Pedro, Calif., to purchasers thereof located in the various States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said products in commerce among and between the various States of the United States and in the District of Columbia. In the course and conduct of its business respondent is iri. competition with other corporations and with individuals, firms, and partnerships engaged in the sale and distribution of like or similar products in com- PHILIP R. PARK, INC. 471 466 Findings merce among and between the various States of the United States and in the District o:f Columbia.

PAR. 2. In the course and conduct of its aforesaid business therespondent has disseminated, and is now disseminating, and has caused, and is now causing, the dissemination o:f false advertisements concerning its said product by United States mails and by various other means in commerce as "commerce" is defined in the Federal Trade Commission Act, for the purpose o:f inducing, and which are likely to induce, directly or indirectly, the purchase of its said product. 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, by advertisements in newspapers and periodicals, and by circulars, leaflets, pamphlets, and other advertising material and by continuities broadcast from radio stations which have sufficient power to and do convey the programs emanating therefrom to listeners located in the various States of the United States other than the State in which said broadcasts originate are the following: 1. That respondent's preparation "Parkelp" is rich in iodine, iron, calcium, and other minerals which are not present in land :foods; 2. That respondent's preparation will correct mineral deficiency, build resistance to mineral deficiency diseases, and furnish :food minerals of value in combating goiter, anemia, and other mineral deficiency diseases;

3. That respondent's preparation contains iodine, iron, copper, calcium, phosphorus, sodium, potassium, magnesium, sulphur, and other minerals in quantities sufficient to have therapeutic value in the treatment and prevention of diseases or conditions resulting from a deficiency in such minerals;

4. That respondent's preparation has therapeutic value in the treatment or prevention of the following mineral deficiencies and the diseases and conditions which are alleged by the respondent to result therefrom:

(a) Iodine deficiency, which may cause goiter, skin diseases, low vitality, neuritis, nervousness, overweight, and rickets; (b) Iron deficiency, which may cause anemia, headaches, weakness, and asthma;

(c) Copper deficiency, which may cause anemia; (d) Calcium deficiency, which may cause stomach trouble, rickets, · and eczema ;

(e) Phosphorus deficiency, which may cause rickets, subnormal growth, and mental exhaustion;

Findings 33F.T.C.

(/) Sodium deficiency, which may cause r;tomach trouble, rheumatism, kidney disorders, and bladder disorders; (g) Potassium deficiency, which may cause acidosis, heart disorders, and constipation;

(h) Magnesium deficiency, which may cause underweight and skin diseases;

( i) Sulphur deficiency, which may cause constipation, blood disorders, and liver disorders;

5. That the diet of the American people is deficient in the minerals necessary for the proper functioning and proper health of the human body and that vegetables such as lettuce, celery, asparagus, spinach, etc., are deficient in these necessary minerals. PAR. 3. Respondent's product Parkelp is composed of the following mineral ingredients:

Percent Percent Iodine_______________________ 0.186 Magnesium------------------ 0.740 Calcium___________________ 1.050 Manganese------------------ 0.00044 Phosphorus---------------- 0.339 Sodium--------------------- 3.98 Iron_________________________ 0.037 Potassium------------------ 11.15 Copper-------------------- 0.008 Chlorine----------·--·------- 13.07 The respondent recommends that 1f2 to 1 teaspoonful be taken three times daily, preferably before meals, or 3 to 5 tablets of 5 grains each before or with meals if the product is used in tablet form. There is no difference in the constituent ingredients of Parkelp in the powder or tablet form.

PAtt. 4. The Commission finds that under conditions of use the only mineral appearing in respondent's product in an amount that would be of therapeutic value is iodine. The therapeutic value of respondent's preparation is limited to the value of its iodine content and is beneficial only in those conditions resulting from an iodine deficiency and where the administration of iodine is indicated. There is not a sufficient amount of iron, copper, calcium, phosphorus, sodium, potassium, magnesium, or sulphur to have any therapeutic value in the treatment of any mineral deficiency or any disease or condition resulting from such mineral deficiency. All of these minerals are present in varying amounts in land foods and the average diet contains a sufficient amount of such minerals as are necessary for the proper func· tioning and he;tlth of the human body. Respondent's preparation will not correct mineral deficiency; will not build up resistance to mineral deficiency diseases, and will not furnish food minerals other than . iodine in quantities sufficient to be of value in combating mineral defi· ciency diseases. 1 PAR. 5. On the subject of the therapeutic value of respondent's prep· aration Parkelp the respondent introduced in evidence testimony with PHILIP R. PARK, INC. 473 466 Order reference to certain biological tests made upon rats to determine the effect of respondent's product in cases of anemia. There is no testimony on the relationship between the effect of such tests upon rats as compared with human beings, or the relationship between the amounts ingested by the rats under test as compared with the amount which would be ingested by human beings under the directions for llse. Furthermore, the test is mad0 specifically to determine the effect of Parkelp on anemia caused by an iron or copper deficiency which commonly appears in rats fed exclusively on a diet of milk. Anemia in human beings caused by a deficiency of iron or copper in the diet is very rare as compared with other forms of anemia recognized in human beings. Consequently the Commission is of the opinion and finds that the testimony with reference to the biological tests made by the respondent is of little or no probative value in connection with the effect of respondent's preparation on mineral deficiencies or the therapeutic value of its preparation in the treatment or prevention of anemia or other mineral deficiency diseases in human beings. PAR. 6. The use by the respondent of the aforesaid false advertisements and misleading representations has the capacity and tendency to and does mislead and deceive purchasers and prospective purchasers into the erroneous and mistaken belief that the aforesaid false and misleading statements and representations are true and into the purchase of substantial quantities of respondent's product. As a direct result thereof trade has been diverted unfairly to the respondent from its competitors who are likewise engaged in the sale and distribution of similar products in commerce among and between the various States of the United States.

CONCLUSION The aforesaid acts and practices of the respondent as herein found are all to the prejudice and injury of the public and of respondent's competitors and constitute unfair methods of competition in commerce and 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 Commission on the complaint of the Commission, answer of the respondent, testimony and other evidence before trial examiners of the Commission theretofore duly designated by it in support of the allegations of said complaint and in opposition thereto, report of the trial examiners upon the evidence and exceptions filed thereto and briefs filed herein and the Commission having made its findings as to the facts and its Order · 331<'. T. C. conclusion that said respondent has violated the provisions of the Federal Trade Comm)ssion Act.

It is ordered, That respondent Philip R. Park, Inc., a corporation~ its officers, representatives, agents, and employees, directly or through any corporate or other device, in conne~tion with the offering for sale,. sale or distribution of their products "Granular Parkelp" or "Parkelp Tablets," or any other 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 advertisement by means of the United States mails o~ by any means in comm,erce as "commerce" is defined in the Federal Trade Commission Act, which advertisement represents, directly or through inference: (a) That ·respondent's preparation has any therapeutic value in excess of that afforded by the iodine content thereof; (b) That respondent's preparation contains iron, copper, calcium, phosphorus, sodium, potassium, magnesium, sulphur, or other minerals in quantities sufficient to have therapeutic value in the treatment or prevention of diseases or conditions resulting from, a deficiency in such minerals or that it will build resistance to mineral deficiency diseases or furnish food minerals other than iodine in quantities suffi.. cient to be of value in combating mineral deficiency diseases; (c) That respondent's preparation contains minerals which are not present in land foods or that the average diet is deficient in the minerals necessary for proper functioning and health of the human body. It u further ordered, That the respondent shall, within 60 days from 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.

FARMERS VACCINE & SUPPLY CO. 475 Syllabus