Overell, Robert E

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IN THE MATTER OF ROBERT E. OVERELL, TRADING AS COPINOL COMPIANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Doolcet 4431. Complaint, Dec. 21, 1940-Decision, Sept. 12, 1941 Where an individual engaged in interstate sale and distribution of bis "Coplnol" or "Copinol Nnsal Medicine"; by advertisements through the mails and otherwise, Including purported testimonials, directly or by implication- (a) Represented that his said preparation wus a cure and remedy for head colds, catarrh-choked nose or throat, nasal catarrh, and sinus congestion, and constituted a competent and effective treatment for such conditions, and that it would rid tbe nose and throat of, and protect nose from, germladen mucus and instantly clear the head, and would afford relief to con· gested nusal passages more quickly nnd for a longer period of time than other similar preparations ;

Facts being said pt·oduct, which was a mild, soothing, and cooling emollient and local constrictor of the small blood vessels, was not a cure or remedy for aforesaid conditions anu had no therapeutic value In the treatment thereof in excess of furnishing temporary relief to congested nasal mucous membranes; it would not rid the nose and throat of, or protect nose from, germ-laden mucus, nor clear the bead instuntly; and had no special properties whlth would afford quicker or longer relief than other similar preparations; and (b) Failed to reveal material facts and that use of said product, as pre~cribed, might result in injury to health, in that he included neither on the pasteboard container of said "Copinol," or ln said lldvet·tisements, a warning statement to the effect that said preparation, which contained the drug ephedrine alkaloid, should not be used by persons suffering from heart trouble, high blood pressure, diabetes, or thyroid trouble except on competent advice, and that its use over a long period of time was likely to produce prolonged nasal constriction so as to cause tissue damage from anoxemia, with secondary inflammatory reaction, or a cautionary state· ment to the effect that !"aid preparation should be used only as directed on tbe label, and failed on the cautionary statement in the circular which it enclosed with its said product to which label referred user, to set forth the full danger in use of said preparation over a long period of time, and sufficiently to warn persons suffering from afot·esaid diseases that they should not use the product except on competent advice; ' With effect of misleading and deceiving a substantial portion of the purchasing public into the erroneous belief that such representations were true, and that his said preparation was harmless and would accomplish the results claimed for it, and of inducing It, because of such belief, to purcJ.iase his said "Copinol" medicinal 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 deceptive acts and practices In commerce.

lllr. John lV. Carter, Jr., for the Commission. Complaint 33 F. T.C.

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 Robert E. Overelll indiviuunlly and trading under the style and firm name of Copinol Co., hereinafter referred to as 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., Robert E. Owrell, is an individual trading under the style and firm name of Copinol Co. with his principal place of business located at Seventh antl l\lain Streets, Los Angeles, Calif.

PAn. 2. Acting in his individual capacity and trading under the style and firm name of Copinol Co., responde11t is now, anu for more than 1 year last past has been, engaged in the advertising, sale, anu distribution of a medicinal product or preparation designated as "Copinol" and sometimes designated as "Copinol Nasal l\fedicine," hereinafter referred to as "Copinol," in commerce among and between the various States of the United States. Respondent causes said medicinal preparation, when sold, to be tmnsported from responuent's place. of business in the State of Califm·nia to the purchasers thereof located in various other States of the United States and in the District of Columbia. Hesponclent maintains, and at all times mentioned herein, has maintained a course of trade in the said medicinn.l preparation in commerce between and among the various States oi the United States and in thp. District of Columbia.

r AR. 3. In the course and conduct of his aforesaid business responuent has disseminated and is now uisseminating, and has caused and is now causing the dissemination of false advertisements concerning his said. preparation by the United States mails and by various other means in commerce, as commerce is defined by the Federal Trade Commission Act and respondent has also disseminated, and is nmv disseminating, and has caused and is no"\Y causing, the dissemination of false ad\'ertisements 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, al'.. commerce is defined by the Federal Trade Commission Act. Among and typical of the hlse statements and representations contained in said advertisements disseminated and caused to be disseminated as aforesaid, are the following:

COPINOL CO. 1293 1291 Complaint TERRIBLE NOSE DISCHARGE EMBARRASSES LADY Suffers from stuffy bead c·olds, cat:urh-choked no~e anll throat, nasal sinus, helped by .Copinol. "I bad a bad discharge from my right nostt·il and used fr01n four to six handkerchiefs daily. It was terrible," writes Mrs. 0. E. J., Ocean Deach, California.

"No words can express my embarrassment in company. Copinol relieved rue Instantly. l\ly head is clear-the cmckling is gone." The secret formula of Sc>ven scientific ingredients for Copinol Nasal l\Iedicine is now revealed on the llllckage.

SECRET FORMULA FOR NOSE CATARRH REI'EAI.ED AT LAST! Special ingredient retains medication longer in nose-speeds relief in catarrhchoked nasal congestion, shrinks swollen membranes. Sufferers from stopped up nasal passages-choked by disgusting mucus dripl•ings in nose and throat-have gladly paid more for Copinol Nasal 1\Iedicine because it gave longE>r lasting relief. Now the secret is out. ~ew laws re- Quire that Copinol reveal Its treasured formula and now the whole world knows that LANOLIN, blended with six other scientific ingredients, is the amazingly ~ffective mediament that insures such lasting relief from stuffy head colds, l'atanh-chokeu noi"t' and throat, nasal catart"b and sinus congestions. * * * LONGER LASTING MEDICATlON FOR YOUR NOSE Sufferers from nasal congestion can rid nose of clogging mucus and get longer pr·otection by using COPINOT. N,).SAL MEDICINE. NASAL HYGIENE COPINOL NASAL MEDICINE.

!till nose of genu laden mucus! Loosen clogging congestion with copinol! tong lasting medication! A ft>w rtrops will aid you in bt·eaihing freely ngaln. PAR. 4. Through the use of the statements and representations hereinabove set forth and in other and similar statements and representations not specifically set out herein, all of which -purport to be descriptive of the therapeutic properties of his said preparation, respondent repre,sents, directly or by implication: That his said Preparation is a cure and remedy for head colds, catarrh-choked nose or throat, nasal catanh, or sinus congestion, and that it constitutes a competent and effective treatment for such conditions; that it Will rid nose and throat of, and protect nose from, germ laden mucus, and instantly clear the head; and that said preparation will afford relief to congested nasal passages more quickly and for a longer Period of time than other preparations.

PAR. 5. The aforesaid representations used and disseminated by respondent as aforesaid, are grossly exaggerateu, false and misleading. Respondent's preparation "Copinol" is not a cure or remeuy for head colds, nasal catarrh, or sinus congestion, and has no therapeutic value in the treatment of such conditions in excess of furnishing temporary relief to congested nasal mucus membranes. It will not rid the nose aJl(l throat of, or protect the nose from, germ laden mucus. It will not clear the head instantly. This preparation has no special therapeutic properties which will enable it to afford relief 435526m-42-vol. 33--82 Findings 33F. T.C.

more quickly or for a longer period of ti~e than many other similar preparations on the market, affording temporary relief to congested nasal passages. It is nothing more than a mild antiseptic emollient and constrictor of the. arterioles.

PAR. 6. Respondent's preparation contains the drug ephedrine alka· Ioid and the use of said preparation may be harmful to those suffering from heart trouble, high blood pressure, diabetes, or thyroid trouble and the use of this preparation over a long period of time is likely to produce such prolonged nasal constriction as to cause tissue damage· from anoxemia with secondary inflammatory reaction, and may also cause nervousness, restlessness, or sleeplessness. The advertisements disseminated by the respondent as aforesaid, contain no cautionary statements to the effect that this preparation should not be used by persons having heart trouble, high blood pres· sure, diabetes, or thyroid trouble or that its frequent or continued use may cause nervousness, restlessness, or sleeplessness, and conse· quently such advertisements constitute false advertising in that they fail to reveal facts material in the light of the representation con· tained therein and fail to reveal that the use of said preparation under the conditions prescribed in said advertisements or under such conditions as are customary or usual may result in injury to health. PAR. 7. The use by the respondent of the foregoing false, deceptive, and misleading statements and representations, disseminated as afore· said, has had and now has, the capacity and tendency to and does, mislead and deceive a substantial portion of the purchasing public in· to the erroneous and mistaken belief that such false statements, repre· sentations, and advertisements are true, and to induce a substanthtl portion of the purchasing public, because of such erroneous and mis· taken belief, to purchase respond~nt's medicinal preparation "Copinol." . PAR. 8. 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 Trade Commission Act, the Federal Trade Commission on the 21st day of December 1940. issued, and on the 26th day of December 1940, served its complaint in this proceeding upon said respondent, Robert E. Overell, charging hi.m with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act.

COipiNOL CO. 1295 1291 Findings . On January 15 ' 1941 ' the respondent filed his answer in this proceed- Ing. Thereafter, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts signed and execut~d by the respondent, Robert E. Overell, and Richard P. Whiteley, assistant 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 the said Commission m''Y 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 proceedings without the presentation of argufilent or the filing of briefs and without the filing of trial examiner's report upon the evidence. Thereafter, this proceeding regularly came on for final hearing before the Commission on said complaint, answe:r, and stipulation, said stipulation having been approved, accepted, and filed, and the Commission having duly considered the same and being ~ow fully advised in the premises, finds that this proceeding is in the Interest of the public and makes it findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS • PARAGRAPH 1. Respondent, Robert E. Overell, is an individual trad- Ing under the style and firm name of Copinol Co. with his principal Place of business located at Seventh and Main Streets, Los Angeles, Calif.

PAR. 2. Respondent, acting in his individual capacity, and trading Under the style and firm name aforesaid, is now and for more than 1 year last past has been engaged in the advertising, sale, and distribution of a medicinal preparation designated as "Copinol" and sometimes as "Copinol N asa.l Medicine." Respondent causes said preparation, when sold, to be transported from his aforesaid place of bm:iness in the State of Californin, to the purchasers thereof located in Various other States of the United States. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said medicinal prepar~tion in commerce among and between the variou~ Stn,tes of the United States.

PAR. 3. In the course and conduct of his aforesaid business as aforesaid, respondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of, advertisements concerning his said medicinal preparation, designated as aforesaid, by United States mails and by various means in commerce, as commerce is defined by the Federal Trade Commission Act; and respondent has also disseminated and is now disseminating, and has caused and is now 1296 FEDERAL TRADE COMl\USSION DECISIONS Findings 33F. T.C.

causing the dissemination of, advertisements concerning his said medicinal preparation by various means for the purpose of inducing~ and which are likely to induce, directly or indirectly, the purchase of his said medicinal preparation, designated as aforesaid, in commerce, as commerce is defined by the Federal Trade Commission Act. Among and typical of the statements and representations contained in said advertisement3, disseminated and caused to be disseminated by the United States mails and various other means, are the following: TERRIBLE NOSE DISCHARGE EMB_\RRASSES LADY Sufferers from stuffy head colds, catarrh-choked nose and throat, nasal sinus, helped by Copinol. "I had a bad discharge from my right nostril and used from 4 to-6 handkerchiefs daily. It was terrible," writes Mrs. 0. E. J., Oeean Beach. California.

"No words can express my embarrassment in company. Copinol relieves 1ne instantly. l\Iy head is clear-the crackling is gone." The secret formula of 7 sdentific ingredients for Copinol Nasal ::.\lellicine is now revealed on the package.

SECRET FO!!MULA FOR NOSt: CATARRH BEVK\LEO AT LAST! Speci'ul ingredient retains medication longer in nose--speeds relief in catarrh· choked nasal congestion, shrinks swollen membranes. Sufferers from stopped up nasal passages·-dwked by di~gusting mucus drip· pings in nose and throat-have gladly paid more for Copinol Nasal 1\Iedicine because it gave longer lasting relief. Now the secret is out. New laws require that Copinol re,·eal its treasured formula and now the whole world knows that LANOLIN blended with six other scientific ingredients is the amazingly effective medica· . ment that insures ~uch lasting relief from stuffy head colds, catarrh-choked nose and tl1roat, nasal catarrh and sinus congestion. * * • LONGI':R LASTING MEDICATION FOR YOUR NOSE.

Sufferers from nasal congestion cnn rid nose of clog and mucus 'and get longer protection by using COPINOL NASAL MEDICINE. NASAL HYGmNE COPINOL NASAL MEDICI:'IE Rid nose of germ-laden mucus l Loosen cloggy congestion with copinol! A few drops will aid you in breathing freely again. PAR. 4. Through the use of the statements and representations hereinabove set forth, and other statements and representations similar thereto but not specifically set out herein, all purporting to be descriptive of the therapeutic properties of the medicinal preparation "Copinol," respondent represents, directly or by implication, that his said preparation is a cure or remedy for head colds, catarrh-choked nose or throat, nasal catarrh, and sinus congestion, and that it constitutes a competent and effective treatment for such conditions that it will rid the nose and throat of, and protect nose from, germ-laden mucus, and instantly clear the head; and that said preparation will afford relief to congested nasal passages more quickly and for a longer period of time than similar preparations.

PAn. 5. The aforesaid representations, used and disseminated by respondent as aforesaid, are grossly exaggerated, false, and misleading. COPINOL CO. 1297 1291 Findings Respondent's preparation Copinol, designated as aforesaid, is a mild soothing and cooling emollient and local constrictor of the small blood Vessels. It is not a cure or remedy for head colds, catarrh-choked nose or throat, nasal catarrh, or sinus congestion, and it has no therapeutic "Value in the treatment of such conditions in excess of furnishing tern~ Porary relief to congested nasal mucous membranes. It will not rid the nose and throat of, or protect the nose from, germ-laden mucus. It will not clear the head instantly. This preparation has no special therapeutic properties which will en!lble it to afford relief more quickly or for a longer period of time than many other similar preparations affordirtg temporary relief to congested nasal passages . •PAR. 6. Respondent's preparation contains the drug ephedrine alka~ lord, and the use of this preparation may be harmful to those suffering from heart trouble, high blood pressure, diabetes, or thyroid trouble, and the use of this preparation over a long period of time is likely to Produce such prolonged nasal constriction as to cause tissue damage from anoxemia with secondary inflammatory reaction and may also cause nervousness, restlessness, or sleeplessness. PAR. 7. While the label now being used by respondent carries the statement ' See circular for full directions regarding use of Copinol, ~t carries neither a warning statement to apprise the reader that there lS potential danger in the use of said preparation to persons suffering from heart trouble, high blood pressure, or thyroid disease, and that this preparation should not be used over a long period of time, nor a cautionary statement specifically directing attention to a warning statement to such effect appearing in the accompanying labeling. The circular now· being packaged with respondent's preparation Copinol, contains directions for use and in connection therewith the following statement:

Care should be taken that this preparation is not used so continuously over a long period of time as to cause amassing of oily deposits in nose or lungs. Should be used with caution by persons subject to heart trouble, high blood pressure or thyroid disease. Consult your physicians, particularly regarding children's use. !n the light of the potential danger existing in this product as found In paragraph 6 hereof, the above statement appearing on the circular is inadequate as a warning'.~ It fails to set :forth the full danger exist-.1ng in this preparation if used over a long period of time, and it does not constitute a sufficient warning to persons suffering from heart trouble, high blood pressure, diabetes, or thyroid diseases. This preparation should not be used by persons subject to these diseases except on competent advice.

Order 33F. T.C.

The printed matter on the pasteboard box in which Copinol is now being packaged by respondent, and the advertisements disseminated by the respondent, as aforesaid, however, contain neither a statement to the effect that said preparation should not be used by persons suf· fering from heart trouble, high blood pressure, diabetes, or thyroid trouble except on competent advice and that its use over a long period of time is likely to produce prolonged nasal constriction as to cause tissue damage from anoxemia with secondary inflammatory reaction, nor a cautionary statement to the effect that said prepartion should be used only as directed on the label. Such advertisements constitute false advertisements in that they fail to reveal facts material" in the light of the representations contained therein, and fail to reveal that the use of said preparation under the conditions prescribed in s::~.id advertisements, or under such conditions as are customary or usual, may result in injury to health.

PAn. 8. The use by the respondent of the foregoing statements and representations,·and others of a similar nature, disseminated as afore· said, 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 statements, represen· tations, and advertisements are true and that respondent's preparation is harmless and will accomplish the results claimed for it, as found in paragraph 4 hereof, and to induce a substantial portion of the purchasing public, because of such erroneous and mistaken belief to purchase respondent's medicinal preparation "Copinol." OONCLUSION 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 of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the re· spondent, and a stipulation as to the facts entered into between the respondent herein and Richard P. 'Vhiteley, assistant chief counsel for the Commission, which provides, among other things, that without further evidence or other intervening procedure the Commission may issue and serve upon the respondent findings as to the facts and its conclusion based thereon and an order disposing of the proceeding, and the Commission having made its findings as to the facts and its conclusion that the respondent has violated the provisions of the Federal Trade Commission Act.

COPINOL CO. 1299 1291 Order It. i<J ordered, That respondent, Robert E. Overell, individually or tradmg under the name of Copinol Co., or trading under any other name, his representatives, agents, and employees, directly or t.through any corporate or other device, in connection with the o:ffermg for sale, sale, or distribution of his medicinal preparation designated "Copinol," or any other preparation of substantially similar com·· Position or possessing substantially similar properties, whether sold un~er 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 that said pre- Paration:

· (a) Is a cure or remedy for head colds, catarrh-choked nose or throat, nasal catarrh, or sinus congestion, or has any therapeutic Value in the treatment of such conditions in excess of furnishing temporary relief to congested nasal mucous membranes. (b) Will rid the nose and throat of, or will protect the nose from, germ-laden mucus.

(c) Will instantly clear the head.

(d) Will afford relief to congested nasal passages more quickly and for a longer period of time than similar preparations. 2. Disseminating or causing to be disseminated any advertisements 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 fails to reveal that respondent's medicinal preparation "~opinol" should not be used by persons suffering from heart trouble, high blood pressure, diabetes, or thyroid trouble, and that the use of said preparation over a lo:ng period of time is likely to produce prolonged nasal constriction resulting in tissue damage from anoxemia, Provided, however, that if the label of said preparation contains a Warning of the potential dangers in the use of said preparation, as hereinabove set forth, such advertisements need contain only the cautionary statement: CAUTION, USE ONLY AS DIREOI'ED ON THE LABEL· 3. Disseminating or causing to be disseminated any advertisement. by any means for the purpose of inducing or which is likely to in- ?uce, directly or indirectly, the purchase in commerce, as commerce ls defined in the Federal Trade Commission Act, of said preparation, ~which advertisement contains any of the representations prohibited ln paragraph 1 hereof, or which fails to comply with the requirements set forth in paragraph 2 hereof.

Order 33 F. T. O.

It is further 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 the 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.

BARD-PARKER CO., INC., EIT AL. 1301 Complaint