Oxol Laboratories

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IN THE MATTER OF W. S. McCLYMONDS AND G. L. McCLYMONDS, DOING BUSINESS AS OXOL LABORATORIES COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 1i OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4208. Oomplai·nt, ·July 31, 1940-Deciswn, Sept. 17, 1941 f Where two lndlvldnals engaged In manul'actm·e and Interstate sale and distrl· button o1' their "Trox: Tablets," ingredients of which included powdered extract triticum repens, ox:yqulnoline sulphate, charcoal, starch, and sugar o1' milk; by means o1' advertisements disseminated through the mails and otherwise- Falsely represented that said preparation was a cure or remedy for various diseases and ailments of the kidneys and prostate gland, and constituted an effective treati~ent there!' or; facts being tablets in question were with· out therapeutic value; modern pharmacologists ascribe no therapeutic properties to- said first ingredient or conch grass, second ingredient is a decld<'dly less efficient antiseptic than phenol, with amount contained in said tablets so Insignificant that no beneficial action would result therefrom for said ailments, and other ingredients are of no medical value; With effect of misleading and deceiving a substantial portion of the purchasing public Into the erroneous belief that such false representations were true. and of inducing it, because of such erroneous belief, to purchase substantial quantities of their said "Trox Tablets":

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury o1' the public, and constituted unt'air and deceptive acts and practices In commerce.

Defore Mr. William 0. Reeves, trial examiner. Mr. Donova:n R. Dwet for the Commission.

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 W. S. McCly· monds and G. L. 1\fcClymonds, individuals, doing business as Oxol Laboratories, hereinafter referred to as respondents, have 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. The respondents, ,V, S. 1\fcClymonds and G. J, McClymonds, are individuals doing businrss under the firm name and style of Oxol Laboratories with their principal office and place o{ business at 1042-48 Santa Fe Drive, Denvrr, Colo. OXOL LABORATORIES 1339 1338 Complaint Respondents are now and for more than 2 years last past have been engaged in the business of manufacturing, selling, and distributing a drug preparation designated as "Trox Tablets." The respondents cause said preparation when sold, to be shipped from their said place ?f business in the State of Colorado to the purchasers thereof located In various other States of the United States and·in the District of Columbia. Respondents maintain, and at all times mentioned herein have maintained, a course of trade in said preparation in commerce among and between the various States qf the United States and in the District of Columbia.

PAR. 2. In the course and conduct of their aforesaid business, respondents have disseminated, and are now disseminating and have caused and are now causing, the dissemination of false advertisements concerning their said preparation, "Trox Tablets," by United States lllails, and by 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 their said preparation; and have 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 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 as aforesaid, are the following:

Prostate and Kidney * • * sufferers? Amazing results with our ten day trPatnient with Trox Tablets. Quick relief or your money back • • • Prostate and Kidney sufferers. Use Trox Tablets for Instant relief; money· back after.

PAR. 3. Through the use of the aforesaid statements and representations and other statements and representations of similar import or llleaning not herein set out, respondents represent and have represented that their said preparation, "Trox Tablets," is a cure or remedy for varous diseases and ailments of the kidneys and of the Prostate gland, and constitutes a competent and effective ti·eatment for such diseases and ailments.

PAR. 4. The aforesaid statements and representations by respondents relating to said preparation, to wit, "Trox Tablets,'' are exaggerated, misleading, and ,untrue. In truth and in fact, said preparation, "Trox Tablets," has no therapeutic value in the treatment of diseases and aillll.('nts of the kidneys or prostate gland and does not constitute a cure Findings 33F. T. C.

or remedy for any ailment or disease of the kidneys or prostate gland. Said preparation has no value with respect to relieving any such disease or ailment or any symptom thereof.

PAR. 5. The use by the respondents of the aforesaid false and misleading statements, representations, and advertisements disseminated as aforesaid with respect to said preparation has had and now has the capacity and tendency to, and does, mislead and deceive a substantial number of the members of the purchasing public into the erroneous and mistaken belief that the aforesaid false and misleading statements, representations, and advertisements are true and induce the purchase of substantial quantities of respondents' said preparation because of said erroneous and mistaken belief.

PAR. 6. The aforesaid acts and practices of the respondents, 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 31st day of July 1940, issued and served its complaint in this proceeding upon the respondents, W. S. McCiyinonds and G. L. McClymonds, individuals, doing business as Oxol Laboratories, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provi- E>ions of said act. On August 21, 1940, the respondents filed their 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 respondents 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 that the said Commission may proceed upon said statement of facts to make its report, stating its findings ns to the facts and its conclusion based thereon, and enter its order disposing of the proceeding without the presentation of argument or the filing of briefs. Thereafter, this proceeding rpgularlY 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 having duly considered the same and being now fully advised 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.

OXOL LABORATORIES 1341 1338 Findings FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondents, ,V. S. McClymonds and G. L. Mc- Clymonds, .are individuals and for more than 2 years prior to 1\fay 1, 19~1, did business under the firm name and style of Oxol Laboratories, Wlth their office and principal place of business located at 1042-48 Santa Fe Drive, Denver, Colo.

For more than 2 years prior to May 1, 1941, the respondents were engaged in the business of manufacturing, selling, and distributing a drug preparation designated as "Trox Tablets," the formula for Which is:

Powdered extract triticum repens________________________ 4 grs. Oxyquinoline sulphate----------------------------------· 1/20 gr. Charcoal--------------------------------··------------· 1 gr. Starch------------------------------------------------ 3/4 gr. Sugar of milk---------------------------------··-------· 1/4 gr. During the time that respondents were so engaged in said business, they caused said preparation when sold to be shipped from their said Place of business in the State of Colorado to the purchasers thereof located in the various other States of the United States and in the District of Columbia. Respondents, at all times mentioned herein ~rior to May 1, 1941, maintained a course of trade in said preparation ln commerce among and between various States of the United States and in the District of Columbia.

PAR. 2. In the course and. conduct of their aforesaid business, respondents disseminated and caused the dissemination of false advertisements concerning their said preparation, "Trox Tablets," by means of ~he United States mails and by other means in commerce as commerce lS defined in the Federal Trade Commission Act; and have disseminated and have causeJ the dissemination of false advertisements con- ~erning their said preparation by various means for the purpose of lnducing, and which were likely to induce, directly or indirectly, the PurclUtse of their said produce in commerce as commerce is defined in the Federal Trade Commission Act. Among and typical of the false statements and representations contained insaid advertisements, disseminated and caused to ·be disseminated as aforesaid, were the following:

·Prostate and kidney-sufferers? Amazing results with our ten-day treatment With Trox Tablets. Quick relief or your money buck • • • . Pt·ostute and kidney sufferers. Use Trox Tablets for instant relief; mont-y hack offer.

PAn. 3. Through the use of the aforesaid statements and representations, and other representations of similar import or meaning not herein set out, respondents represented that their said preparation, 435526m--42-vol.33----85 Order 33 F. T. C.

"Trox Tablets," was a cure or remedy for various diseases and ailments of the kidneys and of the prostate gland, and constituted a competent and effective treatment for such diseases and ailments. PAR. 4. The aforesaid statements and representations by respond· ents relating to said preparation, "Trox Tablets," were exaggerated, misleading, and untrue. In truth and in fact, no therapeutic proper· ties are ascribed to triticum repens (conch grass) by modern pharma· cologists. Oxyquinoline sulphate is an antiseptic decidedly less efficient in its killing power than phenol. The standard dose of oxyquino1ine sulphate is 5 to 15 grains, and the amount of oxyquinoline sulphate contained in "Trox Tablets" is so insignificant that no beneficial action would result from its use in kidney or prostate disorders. The other ingredients of "Trox Tablets," to wit, starch, sugar of milk, and char· coal, are of no medical value. "Trox Tablets" have no therapeutic value, and the claims made by respondents as to the therapeutic value of "Trox Tablets," as hereinabove set forth, are false and misleading in their entirety.

PAR. 5. The u·se by respondents of the aforesaid false and misleading statements, representations, and advertisements, disseminated as afore· said, has had the capacity and tendency to, and did, mislead and de· ceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false and misleading statements, repre· ::;entations, and advertisements were true, and has induced a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase substantial quantities of respondents' said "Trox Tablets.'' CONCLUSION The aforesaid acts and practices of the respondents, 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 Conunis· sion upon the complaint of the Commission, the answer of the re· spondents, and a stipulation as to the facts entered into between the respondents herein and Richard P. 'Whiteley, assistant chief counsel for the Commission, which provides, among other things, that with· out further evidence or other intervening procedure, the Commission may issue and serve upon the respondents herein findings as to the facts a~d conclusion based thereon and an order disposing of the proceedmg, and the Commission having made its findings as to the OXOL LABORATORIES 1343 1338 Order f~c~s and conclusion that said respondents have violated the pro- VISions of the Federal Trade Commission Act. . It itt ordered, That the respondents, "\V. S. McClymonds and G. L. McClymonds, individually and doing business as Oxol Laboratories, or trading under any other name, their representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of their Product "Trox Tablets," or any product of substantially similarcomposition 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: b 1. Disseminating or causing to be disseminated any advertisement Y means of the United States mails, or by any means in commerce, as commerce is defined in the Federal Trade Commission Act, which advertisements represents, directly or through inference: (a) That respondents' product "Trox Tablets'' constitutes a cure or remedy for diseases and ailments of the kidneys or of the prostate gland, or constitutes a competent or effective treatment therefor. (b) That respondents' product "Trox Tablets" possess any thera- Peutic value in the treatment of diseases and ailments of the kidneys or of the prostate gland.

b 2. Disseminating or causing to be disseminated any advertisement Y any means for the purpose of inducing or which. is likely to in- ?uce, directly or indirectly, the purchase in commerce as commerce :,s defined in the Federal Trade Commission Act of said product, _Trox Tablets," which advertisement contains any of the representations prohibited in paragraph 1 hereof.

It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a rep.ort in writing setting forth in detail the manner and form in Which they have complif!d with this order . • Complaint 33 F.T.C.