Pow-A-Tan Medicine Co

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IN THE MATTER OF POW-A-TAN MEDICINE COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLA'l'IU.N OF SEC, li OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1914 Docket ~811. Complaint, Aug. 18, 1942-Decision, Apr. 22, 19~9 Where a corporation, engaged ln Interstate sale and distribution of its "Pow-A- Tan Herb Tonic" for treatment of various aliments and diseases; ln advertisements in newspapers and periodicals, radio broadcasts, circulars, leaflets and pamphlets, and other advertising literature, directly and by Implication- ( a) Represented that said preparation was a cure or remedy and competent and e11'ectlve treatment for all common human ailments, Including neuritis, arthritis, rheumatism, ind,lgestlon, gas and bloatiness, bad taste, sick beadache, tired-out feeling and general run-down condition, and femr.le complaints;

The facts being said preparation was essentially a laxative; its therapeutic value ln the treatment of gas and bloatlness, piles, blllousness, bad taste, and sick headache was limited to such temporary relief as might be afforded by a laxative when such conditions were caused by constipation, and similarly In case of latter condition Itself; and It was without therapeutic value In the treatment of the other conditions 'set forth above; (b) Falsely represented that use thereof would prevent such diseases and aliments as cold, appendicitis, tuberculosis, catarrh, typhoid, and other contagious and acute diseases; 1 (c) Represented that $1 was the regular price for Its quart·sb:e package, and that an offer to sell three for $1 was special and limited; when ln fact the latter was l ts regular and customary price; (d) Represented falsely, through use of designation "tonic" In its brand name of Its said product, that It was a general tonic; when lt was not, as generally understood, and produced no such elect; and (e) Falled to reveal facts material In the light of Its aforesaid representations and wltb respect to the consequences which might result from use thereof under prescribed or usual conditions, In that, as a laxative, It was potentially dangerous when taken by one suffering from abdominal pains, nausea, vomiting, or other symptoms of appendicitis, and In that frequent or coqtlnued use might result In dependence on laxath·es; With effect of misleading a substantial portion of the purchasing public Into the mistaken belief that said representations were true, thereby lnllucing Its purchase of such preparation:

Held, That such nets and practices, under the circumstances set forth, were all to the prejudice and lojury of the public, and constituted unfair and deceptive acts and practices ln commerce.

Mr. 8. F. Rose for the Commission.

Complaint I Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal I DECISIO~S532 FEDERAL TRADE COMMISSION Complaint 36F.T.O.

Trade Commission, having reason to believe that Pow·A-Tan Medicine Co., a corporation, 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, Pow-A-Tan Medicine Co·., is a corporation, organized and existing under and by virtue of the laws of the· State of ·west Virginia with its principal office and place of business located at 825 Fourth A venue, Huntington, W. Va. PAR. 2. The respondent is now, and has been for several years last past, engaged in selling and distributing a certain medicinal preparation which it designates "Powatan Herb Tonic," recommended for use in the treatment of various human ailments and diseases. Respondent causes said medicinal preparation, when sold, to be transported from its place of business in the State of 'Vest Virginia to purchasers thereof located in other States of the United States and in the District of Columbia. Respondent maintains, nnd at all times mentioned herein has maintained, a course of trade in its said prepa- Iation in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. Respondent, in the course and conduct of its business aforesaid, has disseminated and is now disseminating and has caused and is no~ causing the dissemination of false advertisements concerning its said medicinal preparations by the United States mails and various other means in commerce, as commerce is defined in the Federal Trade Commission Act; and respondent has also disseminated and is now disseminating, and has caused and is now causing the dissemination of false advertisements concerning said medicinal preparation by various means, for the purpose of inducing and which arc likely to induce, directly or indirectly, the purchase of its said preparation in commerce, as commerce is defined in the Federal Tr!tde Commission A. ct.

Among and typical of the false, misleading, and deceptive statements and representations contained in said advertisements, disseminated anJ caused to be disseminated as hereinabove set forth, by the United States mails, by advertisements inserted in newspapers and periodicals and by radio broadcasts, circulars, leaflets, pamphlets, and other advertising literature, nre the following: If you are suffering from any common ailment regardless ot how long you have sulrcred or wllat you llave tried In tbe pnst • • • we want you to try our famous rowntun Herb TQnlc wlllle you can do so at our expense. If you will mnll $1 check or money order to Pow-A-Tnn, spelled r-0-W-A-T-A-N, In care ot this station we wlll mall you three regular $1 quart size packages ot tnmous Powatan Herb Tonic • • • POW-A-TAN MEDICINE CO. 533 531 Complaint If you are suffering like thousands of others this morning with neuritis, a,rthritls, rheumatism, indigestion, gas and bloatlness, if you don't sleep at night like other folks do, and can't eat the things you like to eat-If you need a good builder upper-Let me recommend famous rowatan Herb Tonic. Folks nll over this part of the country are sending In testimonials telling of the wonderful results they have received since taking Famous Powatan Herb Tonic. Relieves constipation, piles, biliousness, la grippe and colds In one day, or no cost.

Relieves wel,lkl)ess, Ured out feelipg a:Q.d general run-down condition or no pay. Relieves pain In the neck, shoulders, side, back or hips in one day, or money back.

Relieves bilious or sick headache in two hours; heartburn and palpitation of heart at once; sick stomach, belching, gas on stomach at once, or no pay. Relieves lumbago and rheumatism; also female complaints or your cash refunded.

IT ACTS LIKE MAGIC Do you get up in the morning feeling worse than when you went to b€'d? Blue? Look on the dark side of everything? Worry about trifles? Tired? I,azy? Mouth taste bad? Probably you are simply a little bilious from something that did not agree with you; liver a Httle lazy. Take Pow-A-Tan Herbs tor a time and see if you don't lose all those unpleasant symptoms. A person whose liver Is acting perfectly will seldom have colds; lf the bowels act perfectly, appendicitis Is Improbable; with perfectly acting bowels and liver, the germs of tuberculosis, cold, catarrh, typhoid, and other forms of contagious or acute diseases seldom obtain a foothold. PAn. 4. Through the use of the statements and representations hereinabove set forth, ancl others of similar import not set forth herein, all of which purport to be descriptive of the therapeutic properties of respondent's said preparation, respondent represents, directly and by implication, that said preparation is a cure or remedy for and constitutes a competent and effective treatment for all common human ailments; that it is a cure or remedy for and constitutes a competent anu effective treatment for neuritis, arthritis, rheumatism, indigestion, gas and blontiness, constipation, piles, biliousness, la grippe, colds, weakness, tired out feeling and general run clown condition," ailments and disorders of the liver, bad taste in the mouth, pains in the neck, shoulders, side, back and hips, heartburn and palpitation of the heart, sick headache, belching, gas on stomach, sick stomach, lumbago, rheumatism, and female complaints; that the use of said prt>parn.tion will effectively prevent such diseases ancl conditions as cold, appendicitis, tuberculosis, catarrh, typhoid, ancl other contagious and acute disea~es; that $1 is the regular price for the quart size package of respondent's product and that an offer to sell three such packages for $1 is a special and limited offer. Through the use of the designation "Powatan Herb Tonic" respondent represents its said product is a general tonic and produces a tonic action on the body. Complaint 36F.T.O.

PAn. 5. The aforesaid statements and representations are grossly exaggerated, false, and misleading. In truth and in fact, respondent'e medicinal preparation is not a cure or remedy for neuritis, arthritis, rheumatism, indigestion, gas and bloatiness, constipation, piles, biliousness, la grippe, colds, weakness, tired out feeling and general run down condition, ailments and disorders of the liver, bad taste in the mouth, pains in the neck, shoulders, side, back and hips, heartburn and palpitation of the heart, sick headache, belching, gas on stomach, sick stomach, lumbago, and female complaints. It will not prevent such diseases and conditions as colds, appendicitis, tuberculosis, catarrh, typhoid, and other contagious and acute diseases. Said preparation is essentially a laxative, and has no therapeutic value in the treatment of neuritis, arthritis, rheumatism, indigestion, la grippe, colds, weakness, tired out feeling and general run down conditions, ailments and disorders of the liver, pains in the neck, shoulders, side, • back and hips, heartburn and palpitation of the heart, lumbago and female complaints, and has no therapeutic value in the treatment of gas and bloatiness, piles, biliousness, bad taste in the mouth and sick headache in excess of such temporary relief ns may be afforded by a laxative when such symptoms or conditions are due to or caused by constipation, and has no therapeutic value in the treatment of constipation in excess of affording temporary relief. The regular and customary price of the quart size package of respondent's product is not $1 and the offer to sell such packages for $1 is not a special or limited offer but on the contrary is the regular and customary price in such quantity lots generally available to the public. Respondent's product is not a tonic as this term is generally understood and produces no general tonic effect on the body.

PAR. 6. Respondent's advertisements, disseminntcd 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 the consequences which may result from the uso of the preparation to which the advertisements relate under the conditions prescribed in said advertisements or under such conditions as are customary and usual. In truth and in fact, respondent's said preparation is a laxative 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 continued use may result in dependence on laxatives. PAR. 7. The usc by the respondent of the aforesaid false and misleading statements nnd representations and others of similar nature, disseminated as aforesaid, has had, and now has, the tendency and capacity to and does, mislead a substantial portion of the purchasing POW-A-TAN MEDICINE CO. 535 531 Finding~ public into the erroneous and mistaken belief that such statements, representations, and advertisements are true and to induce a substantial portion of the purchasing public, because of such mistaken and erroneous belief, to purchase respondent's said preparation. PAn. 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 Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 18, 1942, issued and thereafter served its complaint in this proceeding upon the respondent, Pow-A-Tan Medicine Co.,· a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said net. Subsequently respondent filed its answer in which answer it admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on said complaint and the answer thereto, and the Commission having duly 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. FINDINGS AS TO Tile FACTS • PARAGRAPH 1. Responurnt, Pow-A-Tan :Meuicine Co., is a corporation, organized and existing under and by virtue of the laws of the State of 'Vest Virginia, with its principal office and place of business located at 825 Fourth Avenue, Huntington, W. Va. PAn. 2. The respondent, is now, and hns bren for several years last Past, engaged in selling and distributing a certain medicinal preparation which it designates "Powatan Herb Tonic," recommended for Use in the treatment of various human ailments and diseases. Respondent causes said medicinal preparation, when sold, to be trans- Ported from its place of business in the State of 'Vest Virginia to Purchasers thereof located in other States of the United States and in the District of Columbia. Respondent maintains and at all times Inentioned herein hns maintained, a course of trade in its said prepnration in commerce between and among the various States of the lJnitcu States and in the District of Columbia. Findings 36F.T.O.

PAR. 3. Respondent, in the course and conduct of its business afore· said, has disseminated and is now disseminating and has caused and is now causing the dissemination of false advertisements concerning its said medicinal preparations by the United States mails and various other means in commerce, as commerce is defined in the Federal Trade Commission Act; and respondent has also disseminated and is now disseminating, and has caused and is now causing the dissemination of false advertisements concerning said medicinal preparation by various means, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its said preparation in commerce, as commerce is defined in the Federal Trade Commission Act.

Among and typical of the false, misleading, and deceptive statements and representations contained in said advertisements, disseminated and caused to be disseminated as hereinabove set forth, by the United States mails, by advertisements inserted in newspapers and periodicals and by radio broadcasts, circulars, leaflets, pamphlets, and other advertising literature, are the following: If you are suffering from any common ailment regardless of how long you have suffered or what you have tried in the past • • • we want you to try out famous Powatan Ilet'b Tonic while you can do so at our expense. It you wlll mall $1 check or money order to Pow-A-Tan, spelled P-0-W-A· T·A·N, In care of this station we will mall you three regular $1 quart. size packages of famous Powatan Herb Tonic • • • H you are suffering like thousands of others this morning with neuritis, arthritis, rheumatism, Indigestion, gas and bloatlness, if you don't sleep at night lik~ other folks do, and; can't eat the things you like to cat-If you need a good builder upper-Let me recommend famous l'owatun Herb Tonic. Folks all over this part of the country are sending in testimonials telling of the .wonderful results they have received since taking Famous l'owutan Herb Tonic.

Relieves constipation, piles, biliousness, Ia grippe and colds In one day, or no cost.

Rellcves weakness, tired out feeling nnd general run-down condition or no pay.

Relieves palo In the ne<:k, sliouldt>rs, side, hnck or hips In one day, or money buck.

RE>lleves blllous or sick headache In two l~onrs; heartburn and palpitation of heart at once; sick stomach, belching, gas on stomach at once, or no pay. Relieves Iumlmgo and rheumatism; also female complaints or your cash refunded.

IT ACTS LIKE .\lh.OTC Do you gf't up In the morning feeling wor.-e than when you went to bell? mue? Look on the dark side of ewrythln,;? Worry about trifles? Tired? Lazy? Mouth tnste bnd? Pr<,IJnbly yon are ~irui1ly a little bilious from something that did not agree with you; li\"Pr ~t little lazy. Take POW-A-TAN IIEUllS tor a time and see It you don't lose ull those unpleasant symptoms. POW-A-TAN MEDICIXE CO. 537 il31 Findings A person whose liver Is acting perfectly will sPidom have colds; if the bowels act perfectly, appendicitis is improbable; with pet·fectly acting bowels and liver, the germs of tuberculosis, cold catarrh, typhoid, nnl other forms of contagious or acute diseases seldom obtain a foothold. PAn. 4. Through the use of the statements and representations hereinabo\·e ~E>t forth, and others of similar import not set forth herein, all of which purport to he descriptive of the therapeutic·properties of respondent's said preparation, respondent rt>prest>nts, directly and by implication, that said prt>paration is a cure or rt>medy for and constitutes a compett>nt and effective treatment for all common human ailments; that it is u cure or reml'dy for and constitutes a competent and effective tr<>atment for neuritis, arthritis, rheumatism, indigestion, gas and bloatiness, constipation, piles, biliousness, la grippe, collls, weakness, tired out feeling and general run down condition, ailments and disorders of the liver, bad taste in the mouth, pains in the neck, shoulders, sid(', back and hips, heartburn and palpitation of the heart, Rick headaelH•, bPlching, gas on stomach, sick stomach, lumbago, and female complaints; that the use of said preparation will effccti\·cly prevent such diseaf.:es and conditions ·as cold, appendicitis, tuberculosis, catanh, typhoid, and other contagious and acute diseases; that $1 is the regular price for the quart size package of re- ~pondent's prpduct nnd that :m offpr to sell three such packages for $1 is a special and limited offer. Through the use of the designation "Powatan Herb Tonic" re~ponderit represe.nts its said product is a general tonic and produces a tonic action on the body. PAR. 5. The aforesaid statements an:l representations are grossly t•xaggerat('d, fnhe nml misleading. In truth and in fact, l'('spondent's llWllicinalj))'eparation is not n eurc or remedy for neuritis, arthritis, rheumatism, indigt~stion, gas and bloatiness, constipation, pil('s, biliousJwss, la grippe, cohls, WPakness, tir<>J out f('eling and general run uown condition, a ilm<>nts anti disorder·s of the liver, bad taste in the lllOUth, pains in the JWC'k, shouhlHs, Si\le, back anJ hips, heartburn and palpitation of the ll('art, sick henuache, belching, gas on stomach, sick stomach, lumbago anu female complaints. It will not prevent ~uch diseases anu conditions as colds, appendicitis, tuberculosis, catarrh, typhoiu and other contngious nnu acute diseases. Said preparation is essentially 11 laxative, nml has no therapeutic value in the treatment of neuritis, arthritis, rheumatism, indigE>stion, la grippe, ('Olds, weakness, tircu out fe('ling and general run down conditions, nilnwnts anJ disord('l'S of the Jivl'r, pains in the neck, shoulders, side, back and hip:.;;, ]wartburn nnd palpitation of the heart, lumbago, and frmale complaints, nnll has no tlwrupNitic value in the tr('atJnent of gas nnd bloatinpss, piles, Liliousne!-':.;;1 b:d taste in the mouth nnd sick 1\:!~71 :1--t:l \"ul. ;,II 37 Order 36F. T. C.

headache in excess of such temporary relief as may be afforded by a laxative when such symptoms or conditions are due to or caused by constipation, and has no therapeutic value in the treatment of con- ~tipation in excess of affording temporary relief. The regular and customary price of the quart size package of respondent's product is. not $1 and the offer to sell three such p:tckages for $1 is not a special or limited offer but on the contrary is the regular and customary price in such quantity lots generally available to the public. Respondent's product .is not a tonic as this term is generally understood and produces no ~general tonic effect on the body. PAR. 6. 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 the consequences which may result from the use of the preparation to which the advertisements relate under the conditions pre~cribed in said advertisements or under such conditions as are customary and usual. In truth and in fact, respondent's said preparation is a laxative an<l is potentially dangerous when taken by one suffering from abdomina] pains, stomach ache, cramps, nausea, vomiting, or other symptoms of appendicitis. Its frequent or continued uee may result in dependence on laxatives. PAR. 7. The use by the respond('nt of the aforesaid false and misleading statements and representations and others of similar nature, disseminated as aforesaid, has had, and now has, the tendency and capacity to and does, mislead a substantial portion of the purchasing public into the erronrous anfl mistaken belief that such statements, r<>prcsrntations an<l a<lvertis<>ments are true and to induce a substantial portion of the purchasing public, because of such mistaken and erroneous belief, to purchase r£>sponu£>nt's said prepurntion. CONCLUSION The n!orpsaid acts nJHl pructitcs of the rt•spomkut as herein found are nl1 to the prejudice and injury of the public and constitute unfair and deceptive acts and prn(·tices in commt-rce within the intent and meaning of the Federal Trade Commi~sion Act. ORDER TO CEASE AND DESIST This proc£>eding having be£>n heard by the FNlernl Trade Commission upon the complaint of the Commission and the nnsw<>r of the respondent, in which answer respond('nt admits all the material allegations of fact set forth in said complaint and statps that it wail'es all intervening procedure and further hearing as to said facts; and POW-A-TAN MEDIC'IXE CO. 539 531 Order the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the l!"ederal Trade Commission Act.

It is ordered, That the respondent, Pow-A-Tan Medicine CQ., a corporation, its ofllcers, representatives, agents, anu employees, directly or through any corporate or other device in connection with the offering for sale, sale,, or distribution of its medicinal preparation designated "Pow-A-Tan Herb Tonic," or any other medicinal preparation of substantially similar composition or possessing substantially similar properties, whether solu under the same name or any other name, do forthwith cease and desist from: 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 l!"ederal Trade Commission Act which advertisement represents directly or through inference: (a) That respondent's preparation is a cure or remedy for neuritis, arthritis, rheumatism, indigestion, la grippe, colds, weakness, tired out feeling and general run-down condition, ailments or disorders of the liver, p!tins in the neck, shoulders, side, back, and hips, heartburn or palpitation of the h<>tut, b<>lching, gas on stomach, sick stomach, lumbago, or female complaints or that said preparation has any therapeutic value in the treatment of any of such conditions. (b) That respondent's preparation has any therapeutic value in the treatment of gas and bloatiness, piles, biliousness, bad taste in the mouth, or sick headache in excess of affording temporary relief '\\>hen such conditions are due to constipation . . {c) That respondent's preparation is a cure or remedy for constipn.llon or that it has any tlwrnpeutic value in the treatment thereof in excess of afl'ording temporary relief for such condition. (d) That the usc of respondent's preparation will prevent such diseases and conditions ns cohls, appel)dicitis, tuberculosis, catarrh .typlwid, or other contagious or acute diseases. ' (e) That respond<>nt's pr<'paration is a tonic or that its use will Produce a general tonic eflect on the body. 2. Disseminntin:;r or causing to be disseminated any advertis<'ment by means of the UnitNl States mails or by any means in comm<'rce as "commerce" is defined in the Federal Trade Commission Act which ndvertisenwnt fails to reveal that respondent's preparation should llot be used in cast•s of nausea,, vomiting, abdominal pains, or other F:Ymptoms of appendicitis; Pro·uded, hoU'n•er, That if the direction~ for use wll('rever they appear, on the label, in the labeling, or both 540 FEDERAL TRADE CO.MMISSION DECISIONS Order 36 F. T. 0.

on the label and in labeling, contain a warning of the potential dangers in the use of said preparation as hereinabove set forth, such advertisement need contain only the cautionary statement, "CAUTION: Ul:ie only as directed."

3. Disseminating or causing to be disseminated any advertisement by any means for the purpose of inducing or which is likely to in· duce directly or indirectly the purchase in commerce as "commerce" is defined. in the Federal Trade Commission' Act of respondent's prep• aration which advertisement contains any of the representations pro· hibited in paragraph 1 hereof and the respective subdivisions thereof or which fails to comply with the requirements set forth in paragraph 2 hereof.

4. Representing directly or by implication that said preparation is sold by means of a special or limited offer when the method. of distribution is the usual and customary method \!Sed by the respond· ents in the usual and customary course of business. 5. Using the word "tonic" alone or in association with any other word or words to designate, describe, or refer to any preparation which is not a tonic and which does not produce any general tonic dfect upon the body.

It is further ordered, That the respondent shall, within 60 days ufter service upon it of this order, file with the Commission a report in writing, setting :forth in detail the manner and form in which it hns complied with this order.

PHILIP R. PARK, IN'C., ET AL.

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