Di-Function Co., Inc

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IN THE l\fA'ITER OF DI-FUNCTION COMPANY, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO Tile ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4666. Complaint, Jan. 8, 19.12-Decision, Nov. 2, 19.f2 '"' \Vhe1·e a corporation: engaged in the manufactm·e and sale and distribution of its "Di-Function" preparation for diabetes; by means of advertisements through the mails, In newspaper1·s and periodicals of general circulation, und In circulars and other printed or written matter, which included reproduc· ' tions of purported testimonials and which were distribute!] in commerce among various states and by radio broadcasts heard by listeners therein. uud by other means- ( a) Uepresented, directly or by· Implication, th~Jt its said "Di-I<'nuction" was an effective treatrn!'nt which would cure sugar diabetes, revive the gJan1lS of the pancreas so that they would Pl"Oduce sufficient insulin for the body's needs, cure long-standing, severe cases of diabetes, und make possible tbe resumption of the regular diet, discontinuance of all medicines, and the enjoyment of a normal healthy life;

The facts being said preparation was of no therapeutic value in the treatment of any disease or condition; and (b) Fa lied -to reveal facts material in the light of such representations and with re!<pect to consequence\! which might result from the use of said preparation under usual or pL"eseribed conditions, in that said adwrti>'ements failed to revcnl that the only diabetic trPntment reeognized as co~11petent consists of a regulated diet, with or without the supervised admintstl·atlon of insulin, following which a diabetic mny live out his normal life; whereus, if Induced hy false adverthst>ments to ubandon such treatment or fail to take advahtage thereof, his diabetic cemlition will become wm·se and his health and life be endangered ;

With effect of misleading and deceiving a substantial number of the purchasing public into the mistaken belief that said lrtatements were true, thereby inducing purchase of said preparation:

Held, That sm·h acts and }lrrtcticcs under the circumi-Jtances Ret fm·tb, were all to the prejudice and injury of the public, and constituted unfair and decep· tive acts nnd practice:-; in commerce.

Before Mr. Arthur F. Thom@r trial examiner . .Vr. John M. Run8cll and J/r. Edw. lV. Tlwmetl:ion 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 Coinmission, having reason to believe that Di-Function Co., Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to the Commission that DI-FUNCTION CO., INC. 685 684 Complaint 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: · . PAUAGRAPII 1. Respondent, Di-Function Co., Inc., is a corporation, created, organized, and existing under and by virtue of the laws of the State of Texas, with its office and principal place of business located nt 2233 North Main Street, Fort Worth; Tex.

Respondent is now, imd has been for more than 1 year last past, engaged in the business of manufacturing, selling and distributing a Preparation designated as "Di-Function" ami advertised as a trcatlllent for diabetes.

PAR. 2. In the course and conduct of its business aforesaid, the respondent has disseminated aml is now disseminating,· and has caused and is now causing the dissemination of, false advertisements concerning its said preparation, by United Stutes 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 Dnited States; and by continuities broadcast from radio stations '"which have sufficient power ta, and do, convey the programs emanating therefrom to listeners located in various States of the United States other than the State in which the said broadcasts originate, and by other~ means in commerce, as "commerce" is defined in the Federal 1'rnde Commission Act, for the purpose of inducing, and which ale l~kely to induce, directly or indirectly, the purchase of its said preparation; and has disseminated and is now disseminating, and has caused nnd is now causing the dissemination of, false advertisements con- · ?erning its said preparation, by various means, for the purpose of Inducing, ·and which are likely to induce, directly or indirectly, the Purchase of ifs said preparation in commerce, as "commerce" is define!} in the Federal Trade Commission Act.

Among, and typical of, the false statements and representations Contained in said advertisement, disseminated nnd caused to be dissemillu.ted, as aforesaid, are the following:

• • • DinbPtes is caused, in the opinion of medical expprts, by the failure Of certain glands iT, i:he pancreas to do tllPir normal work, which is the exeret!on Of natural insulin. Some people say that these glands are dead or desh:oyed, and that the only way a diabetic can keep alive ls to continue to furnish the bo!]y with the necessary insulin from the outside, by use of a needle. However, it is my opinion that these glands are not deud, but are nll.'rely lylug dormant. li''or some r<'nson, thf'Y have ceased to function, and need some food nnd Rtimulatlon to cause them to become nctlve again. I bt>lleve that my me<lklne Is this necessary element to these glands to make them become active again: They gt·ow, under the influence of DI-l<'FUNCTION, until they are '!.gain In a strong 686 FEDERAL TRADE COMMIS&'JON DECISJONS Complaint 35 l!'. T.C. enough condition to produce the insulin which Is necessary to the human body· At that time, diabetes is gone, and the sufferer is cured. • • · • DI-FUNCTION has, In a great many cases, been very effective in the treatinent of SUGAR DIABETES. It is a liquid extract of plant juices, containing otbei" beneficial medicinal ingredients. Those who have taken DI-FUNCTION, even those people having very severe cases of DIABETES, have been able to entirely eliminate the use of other medicines and to resume their normal diet. • • • · "For eleven years I had sugar diabetes. 1\Iy complexion was sallow and pasty looldng. I was nervous and had headaches and pains all over my body. "I took 3:3 units of Insulin every day for 11 years, until I heard of DI-FUNCTIO:N and started taking it. In a month I was greatly improved-headaches and pains all gone-complexion clear and rosy.

"Now I don't take any kind o! medicine, and I !eel that Di-Function has cured me of sugar diabetes. .. " (Signed) M. M. S· Fort Worth, Tex. • • • · Those suffering from sugar diabetes wll be interested In the following )etter from R. S. Ratliff of Bruceville, Texas • • • "In Ul31 my Doctor told :me I ha·d sugar diabetes • . • • put me on strict diet and prescription. • • • This condition continut>d until December 1938 when·! heard about Di-Functton; which I took regularly for two months • * * gradually feeling better "' • Recent blood test showed no sugar and now I don't feel any symptoms of Diabetes • * * Thanks to Dl-Function."

PAR. 3. Through the use of the statements and representations here· inabove 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 preparation, respondent represents, and has represented, directly and by irnplic~· tion, that its s::tid preparation designated and advertised as "PI· Function" is an effective treatment which will cure sugar diabete.s{ that its use will revive the glands of the pancreas so that they 'W11 produce sufficient insulin for the body's needs; and that it will cure long-standing, severe ·cases of sugar diabetes and make possible the resumption of regular diet, the discontinuance of all medicines, and the enjoyment of a normally well and healthy life. PAR. 4. The aforesaid representations and advertisemehts used and disseminated by the respondent, as hereinabove described, are gross11 exaggerated, false, and misleading. In truth and in fact, respondent~ ~;:aid preparation is not an effective treatment for sugar diabetes, an it will not cure such disease or condition. Said preparation will pot revive the glands of the pancreas or have any therapeutic effect thereoll· Said preparation will not cure long-standing cases of sugar diabetes und will not make possible the resumption by a diabetic person of ~ regular diet, the discontinuance of all medicines, or the enjoyment 0 a normally well and healthy life. · ·· DI-FUNCTION CO., INC. 687 '684 Findings Said preparation is of no thempeutic value in the treatment of any -disease or condition of the human body.

PAR. 5. The respondent's advertisements, disseminated as aforesaid, -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 the use of the preparation to which the advertisements relate under the conditions prescribed in such advertisements, or under such conditions as are ~us­ tomary or usual. . • - In truth n.nd in fact, respondent's said advertisements are particularly false in that they fail to reveal that there is only one diabetic treatment which is accepted by the medical profession as competent for use in the treatment of sugar diabetes and that said treatment -consists of a regulated diet, or a regulated diet and the supervised administration of insulin. If the accepted medical treatment is carefully followed, a diabetic person may live out his normal life expectancy. On the other hand, if a diabetic person is induced by false 'advertisements to abandon the accepted treatment or fail to take advantage thereof, his diabetic condition will become W?rse and as a result~ thereof his health and life will be endangered. PAR. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements and representations with respect to its said preparation has had, and now has, the capacity and.tendency to, and -does, mislead and deceive a substantial number of the purchasing public into the erroneous and mistaken belief that said statement and l·epresentations are true and to induce a substantial number of the purchasing public, because of said erroneous and mistaken belief, to purchase respondent's preparation. · . PAR. 7. 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 Qommission Act. · REPORT, FINDINGS As TO THE Facts; AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on January 8, 1942, issued, and thereafter served, its complaint in this proceeding charging the respondent, Di-Function Co., Inc., a corporation, with the use of Unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On September 1, 1942, the respondent filed its answer to said complaint, in which answer it admitted all of the :material allegations of fact set forth in said complaint to be true and ' ~ I • • FEDERAL TRADE COMMISS'ION DECISIONS688 Findings 35F. T. C.

waived all intervening procedure and further hearing as to said facts. Thereafter this proceeding regularly came on for final hearing before the Commission on said c~mplaint and said answer, and the Commission having <lnly 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.

l'INDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Di-Function Co., Inc., is a corporation, created, organized, and existing under and by virtue of the laws of the State of Texas, with its office and principal place of business located at 2233 North Main Street, Fort Worth, Tex. Respondent is now, and has been for more than 1 year last past, engaged in the business of manufacturing, selling, and distributing a preparation designated as "Di-Function:' and advertised as a treatment for diabetes.

PAR. 2. The Commission finch; that in the course and conduct of its said business the respondent has disseminated and .is now disseminating, and luis caused and is now causing, the dissemination of, false advertisements concerning its said preparation, 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 the distributed in commerce amonq and between the various States of the United States; and by continuities broadc(\st 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 the said broadcasts originate, and by other means in commerce, ns "commerce" is defined in the Federal. Trade Commission Act, for the purpose of inducing, and which are likely to indnee,.dir£>etly or indirectly, the purchase of its said preparation. Trle respondent bas disseminated and is now dis!"eminating, nnd has caused nnd is now causing the dissemination of, false advertisements conceming its said' preparation, by various m('ans, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of its said preparation in commerce, rts "commerce·e" is defined in the Federal Trade Commission Act.

Among, and typical of, the false strttements nnd representations contained in the advertisements disseminated and caused to be disi'ieminnted as above found, are the f<)}Jowing: • • • Diabetes IR caused, in the opinion of meulcal experts, by the failure of certain glands in the pancreas to <!o their norm~.l work, which is the excre- DI-FUNCTION CO., INC. 689 '684 Findings tion of natural insulin. Some -·poople say that these glands are dead or ·destroyed, and that the only way a diabetic can J,;eep alive is to continue to furnish the body with necessary insulin from the outside, l>y use of a needle. However, it Is my opinion that these glands are not dend, but merely lying tlormant. For some reason, they have ceased to function, and need some food and stimulation to cause them to become active again. I believe that my medl- ·cine is this necessary plement to these glands to make them become active ~gain. They grow, umler the influence of DI-FVNCTION, until they are again in a strong enough condition·n to produce the insulin whkh Is necessary to the human body. At that time, diabetes Is gone, and tlh~ sufferer Is cured. * * • DI-FUNCTION has, in a great many cases, been very effective in the treatment of SUGAR DIABETER. It is a liquid extract of plant juices, containing other beneficial medicinal ingredit>nts. Those who have taken DI- FUNCTION, even those people having very severe cases of DIABETES, have been able to entirely eliminate the use (lf other medicines and to resume their normal diet. • • "' "For elevm years I had sugar diabetes. My complexion wail sallow and pasty looking. I was nervoufl and had headaches and pains all over my body. "I took 35 units of insulin every . day for 11 years, until I heard of DI- FUNCTION and started taking it. In a month I was greatly improvedheadaches and pains all gone-complexion clear and rosy. "Now I don't take any ldnd of medicine, and I fppJ tllat Di-Function )ws ~nred me of sugar 1Uabetps, .

. "(Signed) M. M. S."

Fort Worth, Tex. * '" "' Those l:iuiTering from sugar diabetes will ue Interested In the fullowing lett«:>r from H. S. Ratliff of Drucevllle, Texas "' "' '" "In lDHl my Doctor told me I hnd sugar diabetes • * * put me on strict dirt anu prescription. "' "' * This condition continued until DPrember 1P3~ whf'll I heard about DI-Function, which I took regularly for two month~ 00 '" • grad- Ually feeling better "' "' •. Recent blood test showed no tiugnr and now I don't feel any symptoms of Diabetes • • • Thanks to Di-Function." • PAR. 3. The Commission finds that through the use of the statements and representations above set out, all of which purport to be descriptive of the therapeutic properties of respondent's preparation, the respondent represents, and has represented, directly and by impli- -cation, that its said preparation designated anu advertised as "Di- Function" is an effective treatment which will cure sugar diabetes; that its use will revive the glands of the pancreas so that they will produce sufficient insulin for the bouy's needs; and that it will cure - long-standing, severe cases of sugar diabetes and make possible the resumption of Tegulnr diet, the discontinuance of all medicines, and the enjoyment of a normally well and healthy life. PAR. 4. The aforesaid statements and representations used and ~disseminated by the respondent as hereinabove found, are grossly o(>Jraggerated, false and misleading and said advertisements consti- FEDERAL TRADE COMMISS'ION- DECISIONS · 690 Conclusion 33 F. T, C. tute false advertisements within the meaning of the Federal Trade· Commission Act. In truth and in fact,· respondent's said preparation is not an effective treatment for sugar diabetes, and it will not cure such disease or condition. Said preparation will not revive the glands of the pancreas or have any therapeutic effect thereon. Said' preparation will not cure long-standing cases of sugar diabetes and will not make possible the resumption by a diabetic person of a regular diet, the discontinuance of all medicines, or the enjoyment of a normally well arid healthy life. · Said preparation is of no therapeutic value in the. treatment of any disease or condition of the human body . . PAR. 5. The respondent's advertisements, disseminated as aforesaid, 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 the use of the preparation to which the adv£rtisements relate under the conditions prescribed in such advertisements, or under such conditions as are customary or usual, in that they fail to reveal that the only diabetic treatment recognized as competent for use in the treatment of sugar diabetes consists of a regulated diet, or a regulated die£ and the sup<>rvised administration of insulin, If the recognized treatment indicated :ls carefully followed, a diabetic person may live out his normal life expectancy. On the other hand, if a diabetic person is induced by false advertisements, to abandon the recognized treatment or to fail to take advantage thereof, his diabeticr condition will become worse and as a result thereof his health and life will be endangered.

PAR. 6. The use by the respondent of the foregoing false, decep- . tive and misleading statements and representations with respect to its said preparation has had, and now has, the capacity and tendency to, and does, mislead and deceive. a substantial number of the purchasing public into the erroneous and mistaken belief that said state-· ments and representations are true and to induce a substantial number of the purchasing public, because of said erroneous and mistaken belief, to purchase respondent's preparation. CONCLUSION The aforesaid acts aml practices o·f 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. DI-FUNCTION CO., INC., 691 684 ' Order ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission. and the answer of the respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint and ~states that it waives all intervening procedure and further hearing as. to said facts, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the Federal 'trade Commission Act.

It is ordered, That the respondent, Di-Function Co., Inc., a corporation, and its officers, agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of respondent's medicin11l preparatio11 designated "Di-Function," or any other preparation containing the same or similar ingredients .or po~sessing substantially similar propforties, whether sold under the same name or under any other name, do forthwith cease and desist from: · 1. Disseminating, or causing to be disseminated, any advertisement (a) by means of the United States mails or (b) by any means in coml'h.erce, as "commerce" is defined in the Federal Trade Commission Act, Which advertisement represents, directly or by implication, that said Preparation ,constitutes a cure or an effective treatment for sugar diabetes; that the use of said preparation will revive the glands of the Pancreas or enable them to produce sufficient insulin for the body's needs; that the use of said preparation will make it possible for one having sugar diabetes to discontinue dieting and the use of medicines, or enable one to enjoy a normally well and healthy life; or that said Preparation is of any therapeutic value in· the treatment of any disease o~ condition of the human body. · 2. Disseminating, or causing to be disseminated, any advertisement by any means for the purpose of inducing, or which is likely to induce~ directly or indirectly, th~~ purchase in commerce, as "commerce" is defined in the Federal Trade Commission·Act, of said preparation, ~which a4vertisement contains any of the repres~ntations prohibited ln paragraph 1 hereof.

It is further ordered, That the respondent shall, within. 60 days ~after service upon it of this order, file with the Commission a report ln writing, setting forth in detail the manner and form in which it has complied with this order. . · · Syllabus 35 F. T. C.