Codrin Corp

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IN THE MATTER OF CODRIN CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. ti OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4598. Complaint, Sept. 29, 1941-Decision, May 5, 191,2 Where a corporation, engaged in interstate sale and distribution of its "Mag· nesia S. Pellegrino" medicinal preparation; by means of advertisements sent through the mails, by radio broadcasts, and otherwise, directly and by implication- ( a) Falsely represented that ,said preparation acted as a disinfectant and would normalize the digestive system, and assure perfect digestion and health; that it would, regulate the intestines, was gentle and would not irritate the Intestinal walls; and that a teaspoonful taken ·every morning and night was a sure and final remedy against constipation and stomach acidity;

The facts being It was n<'t of any therapeutic value except as a laxative and cathartic which would temporarily evacuate the bowels and 'as an antiacid which would temporarily reduce stomach acidity; and (b) Failed to reveal facts material In the light of such representations, or with respect to consequences which might result from use of preparation in question under prescribed (lr usual conditions, in that a laxative or cathartic, depending upon the dose, Is potentially dangerous when taken by one suffering from abdominal pains, stomachache, cramps, nausea, vomiting, or other symptoms of appendicitis, while frequent or excessive , use thereof may result in dependency Cln laxatives; With capacity and tendency to mislead a substantial portion of the purchasing public into the· erroneous belief that such statements were true, thereby inducing it to purchase said preparation:

Held,allThatto thesuchprejudiceacts andof practices,the public,underand theconstitutedcircumstancesunfairsetandforth,deceptivewet·e acts and practices in commerce.

Before Mr. John W. Addison, trial examiner. M 1'. Joseph 0. F ehr for the Commission.

Viault & Viault, of New York City, for respondent. CourLAINT 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, ha.ving reason to believe that Codrin Corporation, a corporation, hereinafter referred to as respondent, has violated th~ 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 ns follows:

CODRIN CORP. 1149 1148 Complaint PARAGRAPH 1. Respondent, Codrin Corporation, is a corporation organized, existing, and doing business under, and by virtue of, the laws of the State of New York, and it has its principal office and place of business located at 333 Sixth Avenue, New York, N.Y. PAR. 2. Respondent is now, and for more than 1 year last past has been, engaged in the sale and distribution of a medicinal preparation designated as "Magnesia S. Pellegrino," in commerce between and among the various States of the United States and the District of Columbia. Respondent causes and has caused said product, when sold, to be transported from its place of business in New York to purchasers thereof located in various States of the United States, and in t.he District of Columbia.

The respondent maintains, and at all times mentioned herein has maintained, a course of trade in its medicinal preparation in commerce between .and among the various States of the United States and the District of Columbia.

PAR. 3. 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 advertisements concerning its said product, by United States mails, by insertion 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 programs 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 are likely to induce, directly or indirectly, the purchase of its said product; and has disseminated and is now disseminating, 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 false statements and representations of and concerning said product contained in said advertisements disseminated and caused to be disseminated, as aforesaid, are the following:

Disinfectant.

In the mot·ning normallze your digestive system. by taking a teaspoon o! Magnesia S. Pellegrino.

Complaint 34F. T. C.

In the morning before coffee take a teaspoon of Magnesia S. Pellegrino and you will assure yourself of a perfect digestion and thus of perfect health. It is a sovereign remedy against constipation and stomach acidity. • • • a teaspoonful, e'\'ery morning and every evening, in half a tumblerful of water or milk, will rid you forever of constipation and stomach acidity. A teaspoonful, every morning and every night In half a tumblerful of water or milk, is the sure, final, and sovereign remedy against constipation and stomach acidity .

.Against constipation and against other intestinal disturbances you must use Magnesia San Pellegrino • • • the only purgative with efficient and sure action* •without• onlyIrritatingits gentlenessthe intestines.to the intestine walls. • • • only one tablespoonful is sufficient regulator of intestines * * *. Infallible action against any form of constipation, • • •. Is guaranteed to possess • • * efficiency unequalled by any other magnesia. * • • acts surely as purgative • * * acts as regulator of intestines.

PAR. 4. Through the use of the statements and representations hereinabove set forth, and other statements and representations similar thereto, not specifically set out herein, all of which purport to be descriptive of the therapeutic properties o£ respondent's said preparation, respondent represents, directly and by implication, that its preparation, Magnesia S. Pellegrino, acts as a disinfectant; that it will normalize the digestive system; that through its use one will be assured o£ perfect digestion and perfect health; that its use will regulate the intestines; that it is gentle to the intestines and that it will not irritate the intestinal walls; that it will rid one o£ constipation; that it will rid one of stomach acidity; and that a teaspoonful of said preparation taken every morning and every night is a sure and final remedy against constipation and stomach acidity. PAR. 5. The aforesaid representations and advertisements used and disseminated by the respondent, as hereinabove described, are grossly exaggerated, false, and misleading.

In truth and in fact, respondent's preparation does not act as a disinfectant; it will not normalize the digestive system; its use will not assure one of perfect digestion or o£ perfect health; its use will not regulate the intestines; it is not gentle to the intestines and it will irritate the intestinal walls; it will not rid one of constipation; it will not rid one of stomach acidity; the taking of a teaspoonful of said preparation every morning and every night, or the frequent or continu<'d taking of any dosage of said preparation is not a sure, final, or effective remedy against constipation and stomach acidity; nor is said preparation of any therapeutic value except as a laxative or a cathartic which will temporarily evacuate the bowels and as an antiacid which will temporarily reduce stomach acidity. CODRIN CORP. 1151 1148 Findings PAn. 6. The respondent's advertisements, disseminated as aforesaidr constitute false advertisements for the further reason that they fail to reveal facts material in the light of such representations or material with respect to consequences which may result from use of the preparation to which the advertisements relate under the conditions prescribed in said advertisements, or under such conditions as are customary or usual.

In truth and in fact, respondent's said preparation is a laxative or a cathartic, depending upon the dose, and is potentially dangerous when taken by one suffering from abdominal pains, stomachache, cramps, cholera, nausea, vomiting, or other symptoms of appendicitis. Its freq~ent or continued use may result in dependency on laxatives. PAR. 7. The use by the respondent of the foregoing false, deceptive, and misleading statements and advertisements with respect to its said preparati.on, disseminated as aforesaid, has had and now has the capacity and tendency to, and does, mislead and deceive a substan· • tial portion of the purchasing public into the erroneous and mistaken belief that such statements, representations, and advertisements are tne, and induces a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's said preparation.

PAR. 8. The 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 Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on September 29, 1941, issued and subsequently served its complaint in this proceeding upon respondent Codrin Corporation, a corporation, charging it with the use of 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, at a hearing before an examiner of the Commission theretofore duly designated by it, a stipulation was entered into between counsel for the respondent and counsel for the Commission whereby it was stipulated and agreed that, subject to the approval of the Commission, a statement of facts read into the record might 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 Commission might proceed upon such statement of facts and the inferences drawn therefrom to make its report, stating Findings 34 F. T. C. its findings as to the facts and its conclusion based thereon, and issue its order disposing of this proceeding without the presentation of argument or the filing of briefs. Respondent! expressly waived the filing of the trial examiner's report upon the evidence. Thereafter, this proceeding came on for final hearing before the Commission on said complaint, answer, and stipulation as to the facts, said stipulation having been approved by the Commission; 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 this its findings as to the facts and its conclusion drawn therefrom. . FINDINGS AS TO Tile FACTS PARAGRAPH 1. Respondent, Codrin Corporation, is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of New York, and has its principal office and place of business located at 333 Sixth Avenue. New York. N. Y. PAR. 2. Respondent is now, and for more than 1 year last past hats · been, engaged in the sale and distribution of a medicinal preparation designated as ":Magnesia S. Pellegrino." Respondent causes and 1-las caused said product, when sold, to be transported from its place of business in New York to purchasers thereof located in va:r;ious States of the United States and in the District of Columbia, and maintains, and at all times mentioned herein has maintained, a course of trade in its said medicinal preparation in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of its aforesaid business, respondent has disseminated, and has caused to be disseminated, false advertisements concerning its said product by United States mails, by radio broadcasts, and py 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 its said product; and has disseminated, and has caused the dissemination of, 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 prqduct in commerce, as "commerce" is defined in the Federal Trade Commission Act. Among and typical of the statements and representations concerning said product contained in said advertisements disseminated and caused to be disseminated, as aforesaid, are the following: Disinfectant.

In the morning normalize your digestive system by taking a teaspoon of Magnesia S. Pellegrino.

CODRIN CORP. 1153 1148 Findings In the morning beJ'ore coffee take a teaspoon of Magnesia S. Pcllegrino and you will assure yout·self of a perfect digestion and thus perfect health. It is a sovereign remedy against constipation and stomach acidity. • • • a teaspoonful, evet·y morning and every evening, hi half a tumblerful of water or milk, will rid you forever of constipation and stomach acidity. A teaspoonful every morning and every night In a half turublerful of water or mllk, is the sure, final, and sovereign remedy against constipation and stomach acidity.

Aga1nsr- constipation and against other intestinal disturbances you must use :Magnesia San Pellegrino • • "' the only purgative with efficient and sure action without irritating the intestines.

• • • only Its gentleness to the intestine walls. • • • only one tablespoonful is sufficient regulator of intestines • • •. Infallible action against any form of constipation, • • •. Is guaranteed to possess • • • efficiency unequalled by any other Magnesia. • • "' acts surely ns pm·gative • * • acts as regulator of intestines.

PAR. 4. Through the use of the statements and representations hereinabove set forth, and other statements and representations similar thereto not specifically set out herein, all of which purport to be descriptive of the therapeutic properties of respondent's said preparation, respondent has represented directly and by implication that its preparation, Magnesia S. Pellegrino, acts as a disinfectant; that it will normalize the digestive system; that through its use one will be assured a perfect digestion and perfect health; that its use will regulate the intestines; that it is gentle to the intestines and that it will not irritate the intestinal walls; that it will rid one of constipation; that it will rid one of stomach acidity; and that a teaspoonful of said preparation taken every morning and every night is a sure and final rem· edy against constipation and stomach acidity. PAR. 5. The aforesaid representations and advertisements used and disseminated by the respondent, as hereinabove described, are grossly exaggerated, false, and misleading. In truth and in :fact, respondent's preparation does not act as a disinfectant; it will not normalize the digestive system; its use will not assure one of perfect digestion or of perfect health; its use will not regulate the intestines; it is not gentle to the intestines and it will irritate the intestinal walls; it will not rid one of constipation; it will not rid one of stomach acidity; the taking of a teaspoonful of said preparation every morning and every night, or the :frequent or continued taking of any dosage of said preparation, is not a sure, final, or effective remedy against constipation and stomach acidity; nor is said preparation of any therapeutic value except as a laxative or a cathartic which will temporarily evacuate the bowels and as an antiacid which will temporarily reduce stomach acidity.

466506~2--vol.84----73 Order 3-!F. T. C. PAR. 6. The respondent's advertisements, disseminated as aforesaid, constitute false advertisements for t,he further reason that they fail to reveal facts material in the light of such representations, or rna· terial with respect to consequences which may result from use of the preparation to which the advertisements relate under the conditions prescribed in said advertisements, or under such conditions as are customary or usual. In truth and in fact1 respondent's said preparation is a laxative or a cathartic, depending upon the dose, and is potentially dangerous when taken by one suffering from abdominal pains, stomach ache, cramps, nausea, vomiting, or other symptoms of appendicitis. Its frequent or excessive use may result in dependency on laxatives.

PAR. 7. The use by the respondent of the foregoing false, deceptive, and misleading statements and advertisements with respect to its said preparation, disseminated as aforesaid, has had the capacity and tendency to mislead a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements, repre· sentations, and advertisements were true, and induced a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's said preparation. CONCLUSION The aforesaid acts and practices of respondent are all to the prejudice 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 Commis: sion upon the complaint of the Commission, the answer of the respondent, and a stipulation as to the facts entered into between counsel for the respondent and 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 herein findings as to the facts and conclusion based thereon and an order disposing of the proceeding; and the Commission having made its findings as to the facts and conclusion that respondent has violated the provisions of the Federal Trade Commission Act. It is ordered, That re!"pondent Codrin Corporation, a corporation, its officers, representatives, agents, and employe.es, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of its medicinal preparation Magnesia S, Pelle- CODRIN CORP. 1155 lus Onlcr grino, or any other product containing the -same or similar ingredients 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, by means of the United States mails or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, any advertisement which (a) R"presents, directly or through inference, that said preparation is a disinfectant.

(b) Represents, directly or through inference, that the use of said preparation will normalize the digcstiYe system, or assure perfect digestion or perfect health.

(c) Represents, directly or through inference, that said preparation will not irritate the intestines of the user, or that its use will regulate the intestines, or that it is a sure or final cure :for constipation, or that said preparation is a cure or remedy or a competent or effective treatment for, or has any therapeutic value in the treatment of constipation in excess of affording temporary relief therefrom. (d) Represents, directly or through inference, that said preparation is a cure or remedy or a competent or effective treatment :for stomach acidity, or has any therapeutic value in the treatment of such condition in excess of temporarily reducing stomach acidity. (e) Represents, directly or through inference, that said preparation has therapeutic value in the treatment of any disease or condition in excess of temporarily relieving constipation and temporarily reducing stomach acidity.

(f) Fails to reveal that said preparation should not be used in cases of abdominal pains, stomachache, cramps, nausea, vomiting, or other symptoms of appendicitis, and, further, that its frequent or continued use may result in dependence upon laxatives: Provided, however, That if the directions :for use, wherever they appear on the label, in tile labeling, or both, contain a warning of the potential dangers in tile use of said preparation as above set forth, such advertisement need contain only the statement, "CAUTION: Use Only as Directed." 2. Disseminating or cau~ing to be disseminated, by any means, any advertisement 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 respomlent's preparation, which advertisement contains any of the representations prohibited in paragraph 1 hereof or which fails to reveal, as required in paragraph 1 hereof, the dangerous consequences which may result ft·om Order 3-!F. T.C. the use of said preparation or which does not in lieu of the statement of such consequences contain the affirmative cautionary statement as provided in said paragraph.

It is further ordered, That the respondent shall, within 60 days after service upon it of this order, file with the (Jommission a report in writing setting forth in detail the manner and form in whicb it has complied with this order.

GENERAL SURVEYS, INC., ET AL. 1157 Syllabus