Montgomery Ward & Co., Inc.

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IN Tiie MATTER OF 1\IO.NTGOMERY WARD & COl\IPANY,· INC.

COliPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION ' OF SEC. 5 OF AN ACT 01!' CONGRESS APPROVED SEPT. 26, 1914 Docket 4728. Complaint, Mar. 12, 1942-Decision, Oct. 12, 1942 Where a corporation, engaged In Interstate sale and distribution, by, mall order, . of various cosmetic preparations, among other things, directly and by- . Implication, through advertisements disseminated by it in various ways- (a) Represented that just as vitamins internally consumed help make a healthy body, so vitamins A and D externally applied help make the skin healthy and beautiful; and .

(b) Rept·esented that Its said preparations, because of the addition of vitamins A and D would therapeutically treat or benefit the skin, and were more . etrectlve in _keeping the complexion clear and smooth, helped retard the appearance of age, and would relieve skin dryness and pi'Omote· beautiful, glowing skin; and that its hand pt·eparations, because· of the addition of Vitamin D would aid in keeping the hands soft, smooth, and white; lhe facts being that external application of vitamins will not therapeutically . affect the skin as will Internal consumption thereof affect the health, and ordinary appllcatlon thereof by ·means of cold cream would have no therapeutic value; whlle vitamins may be absorbed to some extent through the skin under certain conc:litlons, the effect would be systemic and not restricted to the site of the ·application; said creams contained so little Of said· vitamins that even if the entire vitamin content were carried Into the blood stream, It would not affect the appearance of the skin beyond having an emollient, smoothing, and cleansing action; and its said pro· ducts, either with or without the addition of vitamins, were of no value In excess of their properties as ordinary cosmetlo cream pt·eparations; and. (c) Falsely Implied, through use of words "Tissue Cream" in name of preparation, or by t·eference thereto, that such product had therapeutic value In treating and nourishing the tissues of the skin beyond the ordinary- \\'· Value of a lubricant; . , · · _ ltb effect of misleading and deceiving a substantial number of the purchas-. ing public into the mistaken belief that said representations were true, thereby Inducing purchase tbereot: 11 !!ld, That such acts and practices, under the circumstances set forth, were an to the prejudice and injury of the public, and constituted unfair and, deceptive acts 'and practices In commerce . . Mr. William L. Pencke.for the Commission. ~­ Mr. Brooks Wynne, of Chicago, Ill.,for respondent. Complaint · th Pursuant to the Federal Trade Commission Act, and by virtue of he ~authority vested in it by said act, the Federal Trade Commission; aving reason to believe that 1\fontgomcry 'Vard & Co., Inc., a corpo· 604 FEDERAL TRADE COMMISS'ION DECISIONS Complaint 35F.T.C· Tation, hereinafter referred to as respqndent, has violated the provi· sions of the said act, and it appearing to the Commission that a pro· ceeding 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, Montgomery Ward & Co., Inc., is a cor• poration, organized, 'existing and doing business u~der the laws of the State of Illinois, with its principal office and place of business locate~ at 619 'Vest Chicago A venue in the city of Chicago and State 0 Illinois. · Respondent is now, and for several years past has been, engaged in the operation of a mail order business. Among the articles sold b)' the respondent are various cosmetic preparations which have been and are sold and distributed in commerce between and among the various States of the United States and in the District of Columbia. Jlar. 2,. In the course and conduct of its said business, responde?t causes and has caused said products, when sold, to be shipped fron11ts place of business in the State of Illinois to purchasers thereof locate~ in various other States of the United States and in the District 0 Columbia. Respondent maintains, and at all times mentioned herein has ;maintained, a course of trade i~ said cosmetic products in corn· merce among and between the various States of the United States and in the District of Columbia. ~ · PAR. 3. In the course and conduct of its said business, the·respon~· ent has disseminated and is now disseminating, and has caused and 19 now causing the dissemination of, false and misleading advertisements concerning its said products by the United States mails and by variodus other means in commerce, as commerce is defined in the Federal Tra e Commission Act, for the purpose of inducing and which are likely~ to induce, directly or indirectly, the purchase of said products; an respondent has also disse~inated and is now disseminating, and }las caused and is now causing the dissemination of, false advertisement; concerning its said products by various means, for the purpose 0 inducing and which are likely to induce, directly or indirectly, t~e purchase of its said products in commerce, as commerce is defined 1Jl the Federal Trade Commission Act. Among and typical of the fal~e, misleading, and deceptive statements and representations contained 1Jl said false advertisements, dissemi~ated and caused to be disseminated{ as hereinabove set forth, by the United States mails, by means 0 catalogs and other written or printed advertising matter, are the following:

WARD'S CREAMS CONTAIN VITAMINS "A" AND "D" Super-fine Crea!ll~ doubly rich In vitamins. When made, 1400 U. S. P. Units of Vitamin A and aD U. S. P. Units D are added to each ounce of cream. ' MONTGOMERY WARD & CO., INC. 605 Complaint Double-Vitamin Cold Cream In Vitamins ,A and D. ·us~ for cleansing skin of dirt, make-up. Pat into8k~ichl' In lllorning and evening-will help keep complexion clear and satin smooth. or normal and dry skins.

SKIN SOFTENING CREAM llrli'or~erly called Wards Tissue Cream. Rich in Vitamins A and D. When ~rst Signs of age appear-a skin needs massage with a rich Cream like Wards to ~Ide beneficial lubrication. . he! 11'AMINS! VITAMINS! Whose S'kin Needs Vitamins? Just as vitamins Cr Dlllake a healthy body, so they help make a beautiful skin. Vita Ray Vitamin nn~am brings directly to your skin Vitamins A.and D. It helps relieve dryness c1• Udds a fresh, glowing tone to your face. Try Vita Ray-an all purpose eam. Double Vitamin Cream for Dry Skins heavy, rich-for skins susceptible to dryness. Double-vitamin skin-80~xt:a ~otn ~'ning cream. Rich and softening oils for massnging that "past 30" Dlexion.

Kleer Skin Oil\n 11llproved formula containing Vitamin D and Olive Oil in addition to Almond t~D and other skin-softening Ingredients. Not sticky-easy-to-rub-in vanishing· e crl'am-helps keep hands smooth, soft, white. Lady Carole Vita Facial Pak ea!~ Unlts of Vitamin D per ounce. Easy-to-make facial packs for less than 2c sllto · A powder-just mix with water. Cleansing, stimulating-helps keep skin Oth. • • • 5-oz. Jar, Enough for 20-Faclals. ot~ An. 4. By the use o£ the representations hereinabove set forth, and tes \lts similar thereto not specifically set out herein, respondent rep~ ~r \llj.ts, directly and by implication, that its various cosmetic cream ~eep~tations, because o£ the addition thereto o£ vitamins, will therabe U.tlcally treat or benefit the skin to which they are applied; that, ti~cause of the addition o£ vitamins to said preparations, said preparasll\118 are made more effective in keeping the complexion clear and be]ooth; ·that in the same manner as vitamins internally consumed th };lll1ake a healthy body, so vitamins A and D externally applied to skin help make the skin healthy and beautiful; that said prepara~ti: ~kill.s, because of their vitamin A and D content, help keep the facial sni~ firtn and ~mooth, and help to ret.ard .the ~appearance of_ age; ~hat ~ki Preparations, by reason o£ their v1tamm content, Will reheve lJ. dryness and promote beautiful, growing skin; and that respond- 1500719"'-43-vol. 3.5--41 606 FEI>ERAL TRADE COMMISSION DECISIONS Complaint 35 F.']'. c. ent's hand cr~am preparations, because of the addition of vitamin]) thereto, will aid in keeping the hands soft, smooth and white. d PAR. 5. The foregoing representations and advertisements, use and disseminated by the respondent as hereinabove described, are grossly exaggerated, false, and misleading. In truth and in fact, the respondent's various cosmetic cr~nJll preparations will not, because of the addition tlwreto of vitl11~ 1115; therapeutically treat or benefit the skin to ·which said prepar~t 10\ are applied. The addition of vitamins to said preparations will ~f1 • aid said preparations in keeping the complexion clear and smoo n· The external application~ of vitamins to the skin will not thcf' 1 peutically affect such skin in the same manner as will the inter~;e consumption of vitamins therapeutically affect the health of . ~­ body. In truth and in fact, the skin does not require local applJCbO 'tions of vitamins, and ·although vitamins, to some extent, may er absorbed through the skin if applied thereto in a suitable marbe and under certain conditions, the effect of such absorption w~ul . 11• systemic and not local or restricted to the site of the appl1C11t1°JJ The ordinary application, however, of vitamins by means of ~he cream applied to the skin would have no therapeutic value.. }. respondent's preparations, by reason of the addition of vitamins rd" nnd D, will not help keep the facial skin firm and smooth and retnoll the appearance of age. The said preparations will not, by re~~tll, of their vitamin content, relieve skin dryness and promote be~utl 0t1 glowing skin. The respondent's hand cream preparations wtll nth, as a result of their vitamin D content, aid in keeping hands smofo po soft, and white. Further, respondent's said preparations are 0 0r value either with or without the addition of vitamins A and p, tic r.ny other vitamins, in excess of their properties as ordinary,_ cosine (_.cream preparations. ;!1'' PAR. 6. The use by the respondent of the words "Tissue Crell{ tl as the name or as part of the name, or by reference as pa~t ~}Jilt former name of a cosmetic cream preparation is misleading !n h~' the words "Tissue Cream" so used implies that said preparation ~jll a therapeutic value in treating or nourishing the tissues of the s beyond the or~inary value of a lubricant. ti"e' PAR. 7. The use by the. respondent of the foregoing false, decep jts and misleading statements; and representations with respect, tob6s, F3::tid preparations, disseminated as aforesaid, has had, and now' vb· the capacity and tendency to, and does, mislead and deceive l:t 511pd fitantial number of the purchasing public into the erroneous 1111t1 mistaken belief that said statements and representatives are true, tl;c induces a substantial number of the purchasing public, bectl . MONTGOMERY WARD & CO., INC. 607 603 Findings of such erroneous and mistaken belief to purchase respondent's said Preparations.

PAR. 8. The aforesaid acts and practices of the respondent are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and lneaning of the Federal Trade Commission Act. RI<.PORT, F~NDINGS AS TO THE Facts, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on March 12, 1942, issued and sub- ~equently served its complaint in this proceeding upon the respondent, Iontgomery ·ward & Co. Inc., a corporation, charging it with the 11•8e of unfair and d~ceptive acts and practices in commerce in violahan of the provisions of said act. After the issuance of said comlllaint and the filing Qf respondent's answer thereto, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts signed and executed by counsel for the respondent and Richar.u P. "Whiteley, assistant chief counsel for the Federal Trade Cornlnlssion, 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 ;o lllake its report stating its findings 11s to the facts and its conclusion Ja.sed thereon, and enter its order disposing of the proceeding. In· sa1<1 stipulation, respondent expressly waived the filing of a report 11Pon the evidence by a trial examiner. Thereafter, this proceeding regularly carne on for final hearing before the Commission upon said cotnplaint, answer, and stipulation, said stipulation having been ll.f>proved, accepted, and filed; and the Commission, having duly ~considered the same and being now fully advised in the. premises, t ~ds that this proceeding is in the interest of the public ancl makes his its findings as to the bets and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. .Respondent, Montgomery Ward & Co., Inc., is a , Corporation, organized, existing, and doing business under the laws ~f the State of Illinois, with its principal office and place of business 8ocat~d at 619 'Vest Chicago Avenue in the city of Chicago and tate of Illinois. th Uespondent is now, and for several years past has been, engaged in e operation of a mail-order business. Among the articles sold by the resnondent are various cosmetic preparations which have been, and are, 608 FEDERAL TRADE COMM:ISS'ION DECISIONS Findings 35 F. 'f. C. sold and distributed 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 said business, respondent causes, and has caused, said cosmetic products, when sold, to be shippc~ from its place of business in the State of Illinois to purchasers there_o located in various other States of the United States and in the District of Columbia. Respondent maintains, and at all times mention~d herein has maintained, ~ course of trade in sai9. cosmetic products Ill commerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its said business, the responde~1t has disseminated and has caused the dissemination of, false and nus· leading advertisements concerning certain of its said cosmetic prod· nets, by the United States mails and by various other means in coJll' merce as "commerce" is defined in the Federal Trade Commission Act, for the purpose of inducing and which are likely to induce, directly or jndirectly, the purchase of said products; and respondent has ~}so -disseminated, and has caused the dissemination of, false and misleadrvg .advertisements concerning its said cosmetic products by various n1cans, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its said cosmetic products in commerce, as ':commerce" is defined in the Federal Trade Commission Act. Among and typical of the false, misleading, and deceptive state· ments and representations contained in said false advertisements, disseminated and caused to be disseminated as hereinabove set forth, by the United States mails by means of catalogs and other written or printed advertising matter, are the following: WARD'S CREAl\lS CONTAIN VITAMINS "A" AND "D" Super-fine Cren!11:~ 3doubly rich in vitamins. When made, 1400 U. S. P. Units of Vitamin A and U. S. P. Units of Vitamin Dare added to each ounce of cream. Double-Vitamin Cold Cream Rich in Vitamins A and D. Use for cleansing skin of dirt, make-up. Pat it~~ s~in morning and evening-will help keep complexion clear and satin sn100 For normal and dry skins.

SKIN SOFTENING CREAM • . Jl Formerly called Ward's Tissue Cream. Rich in Vitamins A and D. Wb;.s first signs of age appear-a ~kin needs massage with a rich Cream like war to provide beneficial lubrication. . 1111g VITAMINS! VITAMINS! Whose Skin Needs Vitamins? Just as· v1tan . help make a healthy body, so they. help make a beautiful skin. Vita Ray v·ta1f!111-I ss Cream brings directly to your skin Vitamins A and D. It helps relieve dryneJlland adds a fresh, glowing tone to your face. Try Vita Ray-an all purpose Cr_ea MONTGO:MEUY WARD & CO., INC. 609 603 Findings Double Vitamin Cream for Dry Skins Extra hea.vy, rich-for skins susceptible to dryness. Double-vitamin skin-· Softening cream. Rich and softening oils for massaging that "past 30" complexion. Kleer Skin improved formula containing Vitamin D and Olive Oil in addition to Almond0.Ant 11 and other skin-softening ingredients. Not sticky-€asy-to-rub-in vanishingtpe crenm-helps keep hands smooth, soft, white. Lady Carole . Vita Facial Pak 1000 units of Vitamin D per ounce. Easy-to-make facial packs for less than2 c each. A powder-just mix with water. Cleansing, stimulating-helps keep ~kin smooth. • • • 5-oz. Jar, Enough for 20 Facials. PAn. 4. By the use of the representations hereinabove set forth, and others similar thereto not specifically set out herein, respondent represented, directly and by implication, that its various cosmetic cream preparations, because of the addition thereto of. vitamins, would thherapeutically treat or benefit the skin to which they were applied; t at, because of the additions of vitamins to said preparations, said Preparations were made more effective in keeping the complexion clear ~nd smooth; that in the same manner as vitamins internally consumed elp make a healthy body, so vitamins A and D externally applied to t?e skin help make the skin healthy and beautiful; that said preparuhons, because of their vitamin A and D content, help keep the facialsk· tn firm and smooth, and help to retard the appearance of age; that ~kU~d preparations, by reason of their vitamin content, would relieve s 1l1 dryness and promote beautiful, glowing skin; and that respondehnt's hand cream preparations, because of the addition of vitamin D ' t ereto, would aid in keeping the hands soft, smooth, and white. PAR. 5. The foregoing representations and advertisements, 'used and disseminated ,by the respondent us hereinabove described, are grossly exaggerated, false, and misleading. _ In truth and in fact, the respondent's various cosmetic cream preparations will not, because of the addition thereto of vitamins, thera- Peutically treat or benefit the skin to which said preparations are a~plied. The addition of vitamins to said preparations will not aid Satd preparation in keeping the complexion clear and smooth. The e).:ternal application of vitamins to the skin will not therapeutically affect such skin in the same manner as wiu the internal consumption of \'vitamins therapeutically affect the health of the body. In truth and in fact, the skin does not require local applications of vitamins, and although vitamins to some extent may be absorbed through the Conclusion 35F. T.C.

skin if applied thereto in a suitable manner and under certain con· ditions, the effect of such absorption would be systemic and not local or restricted to the site of the application. The ordinary application, however, of vitamins by means of cold cream applied to the skin would have no therapeutic value. The respondent's preparations, by areas~n of the addition of vitamins A and D, will not help keep the facial skill firm and smooth and retard the appearance of age. The said prepara· tions will not, by reason of their vitamin content, relieve skin dryness and promote beautiful, glowing skin. The respondent's hand crea~ preparations will not, as a result of their vitamin D content, aid ~n keeping hands smooth, soft, and white. Further, respondent's said preparations are of no value either with or without the addition of vitamins A and D, or any other vitamins, in excess of their properties as ordinary, cosmetic cream preparations. Its creams contain such small amounts of vitamins A and D that if they are in contact with the skin only a short time no "effective absorption by the skin will t~ke place, and even if the entire vitamin A-content of the cream apphed should be absorbed by the skin and then carried into the blood. stream, it would not affect the appearance of the skin beyond l1aving an emol· client, smoothing, and cleansing action.

PAR. 6. The use by the respondent of the words "Tissue Cream" as the name or as part of the name, or by reference as part of a former name of a cosmetic cream preparation is misleading in that the wor~s "Tissue Cream" so used imply that said preparation has a therapent~c value in treating or nourishing the tissues of the skin beyond the ordi· nary value of a lubricant.

PAR. 7. The Commission furtl1er finds that the dissemination of the false and misleading advertisements herein above described, was dis· continued by the respondent a short time prior to the issuance of the complaint herein. . . e PAR. 8. The use by the respondent of the foregoing false, deceptn' ' and misleading statements and representations with i·espcct to thes~ preparations, .disseminated as aforesaid, has had the capacity an tendency to, and did, mislead and deceive a substantial number of tl:~. purchasing public into the erroneous and mistake11 belief that ·s~i\ statements and representations were true, and to induce a sub-;tan~ll number of the purchasing public, because of such erroneous and n1i~­ taken belief, to purchase respondent's said preparations. CONCLUSION The aforesaid acts and pra~tices of the respondent as herein foun.d are all to the prejudice and injury of the ~ublic, and constitute unfair MONTGOMERY WARD & CO., INC.' 611 Order and deceptive acts and practices in commerce within the intent and l'lleanil.lg of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST .1'his proceeding having been heard by the Federal Trade Comllllssion upon the complaint of the Commission, the answer of the respondent, and a stipulation as to the facts entered into between e~~nse1 for the respondent herein and Richard P. Whiteley, assistant ~h'lef counsel for the Commission, which provides, among other lh lngs, that without further evidence or other intervening procedure fi e .Commission may issue and serve upon the respondent herein, d~dings as to the facts and conclusions based thereon, and an order fi18P.0sing of the proceedings; and the Commission having made its t~dings as to the facts and its conclusion that respondent has violated e Provisions of the Federal Trade Commission Act. It is' ordered, That the respondent, Montgomery 'Vard & Co., Inc., ~·corporation, its officers, representatives, agents, and employees, t~rectiy or through any corporate or other device in connection with Q. e offering for sale, sale, or distribution of cosmetic preparations, 0 forthwith cease and desist from:

rn 1. Disseminating, or causing to be disseminated, any advertiseent by means of United States mails or by any means in commerce ~~ ,''commerce" is defined in the Federal Trade Commission Act, 'which advertisement represents, directly or through inference. '\''(a) That any of respondent's cosmetic preparations containing t~arnins A and D have any therapeutic value when applied to the Stln or have any effect upon the appearance of the skin beyond the ;lllollient, soothing, and cleansing action of ordinary cosmetic cream reparations. · · tn (~) That the presence of vitamins A and D in respondent's cosa etJc preparations gins such preparatioi1s special properties over lld above those of orclinarv cosmetic creams, or that the use of such ~~nrns, because of such vitamin content, will have any beneficial : ~t in keeping the facial skin firm and smooth or the hands soft, s0ooth, and white, or have any effect in relieving dryness of the 'nn, promoting glowing skin, or retarding the appearance of age. tn 2· Disseminating,. or cahsing to be disseminated, any advertisei ent by any means, for the purpose of inducing or which is likely to :Pndnce, dir(•ctly or indirectly, the purchase of respondent's cosmetic. '!'reparations in comnwrce as "commerce" is defined in the Feueral lade Commission Act, which auvertisement contains any of the 612 FEDER:AL TRADE CO:MMISS'ION DECISIONS Order a5F. r:r.c.

representations prohibited in paragraph 1 hereof and the respecti'l'e subdivisions thereof. f 3. The use of the words "Tissue Cream" or any other words ~ similar import or meaning to designate or describe any cosmetl~ preparation, or representing through any other means or device, tba. respondent's cosmetic preparations have therapeutic value in trent· ing or nourishing the tissues of the skin.

It is fu_rther or~ered, ~hat the respo?dent shall, ~it?in 60 ds~: after service upon It of this order, file with the Commission a repo •t in writing, setting forth in detail the manner and form in which 1 has complied with this order.

• L. L. EDWARDS 613 Complaint