Lekas and Drivas, Inc

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IN THE MATIER OF LEKAS AND DRIVAS, INC.

COllfPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLA'l:ION OF SEC. 6 Ob' AN ACT OF CONGRIDSS APPROVED SEPT. 26, 1914 Docket 4815. Complat:nt, Aug. 14, 1942-Decision, July '1, 1943 Wbere a corporation, engaged In the Importation and !'ale o! its "Aristocratic Imported Virgin Olive Oil" and "L. & D. Olive Oil", in advertisements in newspapers, periodicals, circulars, and other ndverti;;ing literature, antl by radio broadcasts- (a) Represented that its olive oil bad value as a tonic and would invigorate and build up the vital organs; and that use thereof would promote and maintain health, and p1·event such diseases as appendicitis, gallstones, and bladder Infections; and (b) llepresented that the nutritive value of its olive oil was three and one-half times greater than that Qf dried meat; that it contained 45 times more calories than. fresh meat; that use thereof supplied substantial quantities of vitamins A, E, and F, and that it was second only to cod liver oil in vitamin A content;

The facts being that olive oil does not have therapeutic and medicinal values thus attributed to it, being practically a pure fat and acting as such in nutrition; it contains very small amotmts of vitamin A and E, content of former being in no way comparable to that of cod liver oil or ranking second thereto; it bas no therapeutic value in the treatment of any condition where use ot such vitamins might be beneficial and no specific value in treatment of any disease or condition; vital;llin F is not generally known or recognized by the medical or biochemical professions; and comparison of the nutritive value of olive oil with that of meat on the basis of caloric content is misleading, since It supplies only pure fat or fatty acids and food value of meat lies chiefly In its proteins; and (c) Represented that Its olive oll, applied externally, would cure many skin irritations and relieve neuralgia and rheumatic aches; The facts being the value obtained from external use thereof w"as that of a lubricant, and while it might be beneficial to the skin when a deficiency of natural oils existed, It has little or no therapeutic value in the treatment ot skin irritations other than as a lubricant or ·as an oily base for other drugs, and none In the, treatment or alleviation of pain resulting from neuralgia or rheumatism other than facilitating rubbing or massage; With capacity and tendency to mislead and deceive a substantial portion Of the purchasing public Into the mistaken belief that saitl representations were true, thereby causing it to purchase substantial quantities of said product:

llcld, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and <leceptlve acts and practices In commerce.

Defore Mr. John L.llorner, trial examiner.

Mr. De 1V itt T. Puckett for the Commission. Mr. James Madison Blackwell and Mr. Louis S. Leu·is, of New York City, for respondent.

1169637-44--4 ·Complaint 37F.T.C.

Complaint Pursuant to the provisions of the Federal ·Trade Commission Act, and by virtue of the authority vested .in it by said act, the Federal Trade Commission, having reason to believe that Lekas and Drivas, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of the 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, Lekas and Drivas, Inc., a corporation organized under the laws of the State of New York, is now, and for several yearn last past has been, engaged in importing and selling olive oil. Respondent's olive oil is advertised and sold under the brand names "Aristocratic Imported Virgin Olive Oil" and "L. & D. Olive Oil." Respondent's principal office and place of business is at 19-21 Roosevelt Street, New York, N.Y.

In the course and conduct of its business as aforesaid, the respondent causes, and for several years last past has caused, its olive oil, when sold, to be transported from its said place of business in New York, to the purchasers thereof located in various States o£ the United States and in the District of Columbia. Respondent maintains and at all times herein mentioned has maintained, a course o£ trade in said prod· uct in commerce between and among the v.arious States of the United States and the District of Columbia. . · PAR. 2. In the course and conduct o£ its aforesaid business, the re· spondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of false advertisements concern· ing 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 com· merce 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 listen· ers 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, £or 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 com· merce, as commerce is defined in the Federal Trade Commission Act. LEKAS AND DRIV AS, INC. 11 9 Complaint Among, and typical of the false statements and representations contained in said advertisements, disseminated and caused to be disseminated, as aforesaid, are the fo!Jowing:

Tliere does exist, however, the elixir of health, and that is the Olive Oil, the good Olive Oil, as the "Aristocratic".

The "Aristocratic" and the "L and D" are the two famous brands of Olive Oil of the house of Lekas and Drivas, the brands of Olive Oil by means of which you secure perfect success In the preparation of your dishes, you secure health for yourself and for your family.

In many countries of the Mediterranean despite poverty and the lower stand· .ards of living, such ailments as appendicitis, gallstones and Infections of the bladder are almost unknown. A general state of health prevails. This is .attributed to the regular use of olive oil In the diet Olive oil has about three and one-half times more nutritive value than dried meat and about forty-five times more calories than fresh meat. It contains vlamins A, E and F, and the percentage of Its vitamin A content Is second only to that of cod liver oil, the king of tonics. · When used regularly, olive oil helps to purify the entire system. Grown-up persons find that olive oil massages cure many skin irritations, relieve neuralgia and even rheumatic aches.

Olive Oil is truly a prime essential to gracious and healthful living. For radiant beauty olive oil has been the favorite of beauty specialists, since the time of ancient Greece-Internally it tones up vital organs. Externally it is the means to a skin as smooth as alab!ister. For the complexion • • • stimulating. \ PAR. 3. Through the use of the aforesaid representations and others <>f similar import not specifically set out herein the respo~dent has represented, among other things, that olive oil is the elixir of health and will promote and maintain health; that it will prevent such ailments as appendicitis, gallstones, and infections of the bladder; that it has three and one-half times more nutritive value than dried meat; that it contains a substantial amount of vitamin A; that it contains vitamins E and F; that it will purify the entire system; that, when applied, externally, it assures a smooth skin, stimulates the circulation, cures many skin irritations, and relieves neuralgia and rheumatic .aches; and that it has a tonic effect upon the vital organs of the body. PAR. 4. The representations set out and referred to herein are false and misleading. In truth and in fact, olive oil will not promote or maintain health. It is of no value in the prevention of appendicitis, gallstones, or infections of the bladder. It does not contain a substantial amount of vitamin A nor does it contain a demonstrable. amount of vitamin E. There is no essential nutrition factor which is. generally recognized and characterized by a majority of the medical or biochemical professions as "vitamin F," and olive oil does not contain a significant quantity of those substances sometimes erroneously designated by the name "Vitamin F." Olive oil will not purify or accomplish any specific effect upon the entire system. 'When Findings . 37F.T.C,.

·applied externally, it will not relieve neuralgia or rheumatic aches and is of no value in treating skin irritations of stimulating circula~ tion other than to serve as an emollient and as a lubricant to facilitate massage. It is not a tonic and has no direct influence upon any of the vital organs of the body. The nutritive value of olive oil is not three and one-half times more than that of dried meat. PAR. 5. The use by the respondent of the acts and practices herein set forth had, and now has, the capacity and tendency to mislead and deceive, and has misled and deceived, a substantial portion of the pur~ chasing public into an erroneous and mistaken belief that its said olive oil contains the substances and will accomplish the results set forth in its advertising matter, and to purchase substantial quantities of respondent's olive oil as a result of such mistaken and erroneous belief. PAR. 6. The acts and practices of 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 ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 14, 1942, issued and subsequently served its complaint in tlus proceeding upon the respondent, Lekas and Drivas, Inc., 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 o£ said complaint, testimony and other evidence in support of, and in opposition to, the allegations of said complaint were introduced before a trial examiner of the Commission theretofore duly designated by it, and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission upon said complaint, testimony . and other evidence, report of the trial examiner upon the evidence and exceptions filed thereto, and briefs filed in support of the complaint and in opposition thereto (oral argument not having been requested); 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 PAR..-\GRAPH 1. Respondent, Lekas and Driva.s, Inc., a. corporation, organized under the laws of the State of New York, is now, und for LEKAS AND DRIVAS, INC. 13 I '9 Findings several years last past has been engaged in importing and selling olive -oil. Respondent's olive oil is advertised and sold under the brand names "Aristocratic In-lported Virgin Olive Oil" and "L. & D. Olive ·Oil." Respondent's principal office and place of business is. at 19-21 Roosevelt Street, New York1 N. Y.

In the course and conduct of its business as aforesaid, the respondent ·causes, and for several years last past has caused, its olive oil, when sold, to be transported from its said place of business in the State of New York to the purchasers thereof located in various other States of the United States. Respondent maintr.ins, and at all times herein mentioned has maintained, a course of trade in said product in commerce between and among the various States of the United States. PAR. 2. In the course and conduct of its aforesaid business, the respondent has disseminated1 and has caused the dissemination of, false advertisements concerning its said product by United States mails and by various other means in commerce as "commerce" is defined in the Federal Trade Commission Act; and respondent has also disseminated, and has caused the dissemination of, false advertisements concerning its said product by various means for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of its said product in commerce s.s "commerce" is defined in the Federal Trade Commission Act. . • Among and typical of the false, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated as hereinabove set forth, by United States mails, by advertisements inserted in newspapers and periodicals1 by circulars, leaflets, pamphlets, and other advertising literature, arid by continuities broadcast from radio stations which have. the power to, and do, convey the programs emanating therefrom to listeners located in various States of the United States other than the State from which said broadcasts originate, are the following: . There does exist, however, the elixir of health, and that Is the Olive Oil, the good Olive Oil, as the "Aristocratic."

The "AristO'cratlc" and the "L and D" are the two famous brands of Olive Oil of the bouse of Lekao~~ and Drlvas, the brands of Olive Oil by weans ()f which You secure perfect success in the preparation of your dishes, you secure health for yourself and for your family.

In rnany countrlcs ot the 1\lcdlterranean despite po-verty and the lower standards of living, sllch ailments as appendicitis, gallstones and infections of the bladder are almost unknown. A general state of health prel'a!l& This is attributed to the regular use of oll\"e oil in the diet. Olive oil has about three and one-half times more nutritive value than dried !neat and about forty-five times more calories than tresb meat. It contains vitamins A, E and F, and the percentage of its Vitamin A content Is second only to that of cod liver oil, the king of tonics. ' Findings 87F.T.C.

When used regularly, ollve oil helps to purify the entire system. Grown-up persons find that olive oil massages cure many skin irritations, relieve neuralgia and even rheumatic aches.

Olive Oil is truly a prime essential to gracious and bealthfulliving. For radiant beauty olive oil bas been the favorite of beauty speciallsts, since the time of ancient Greece-Internally it tones up vital organs. Externally it is the means to a skin as smooth as alabaster. For the complexion • • • stimulating. PAR. 3. Through the use of the aforesaid representations and others of similar import not specifically set out herein, the respondent has represented that its olive oil has therapeutic value in the treatment and prevention 9f various diseases and conditions. In this connection the respondent represents that its olive oil has value as a tonic and will invigorate and build up the vital organs and that its use will promote and maintain health and prevent such diseases and conditions as appendicitis, gallstones, and infections of the bladder. By the same means the respondent further represents that its olive oil, when applied externally, will. cure many skin irritations and relieve neuralgia and 1·rheumatic aches. It is further represented by the respondent that the nutritive value of its olive oil is three and one-half times greater than that of dried meat and that it contains forty-five times more calories ~hap fresh meat and that the use of said olive oil supplies substantial, quantities of vitamins A, E, and F and is second only to cod liver oil in vitamin A content.

PAR. 4. The foregoing statements and representations, disseminated by the respondent in the manner hereinabove described, are false, misleading, and deceptive. Olive Oil does not have the therapeutic and nutritional value attributed to it by the respondent.· It is practically a pure fat and acts as a fat in nutrition. Fatty acids, such as those supplied by ·butter, lard, and olive oil, are an essential part of th~ diet and, consequently, olive oil is of value when used with other foods so far as total nutrition is concerned.

Olive oil contains very small amounts of vitamins A. and E. Its vita~ min A content is in no way comparable to that of cod liver oil and it does not rank second to cod liver oil in vitamin A content. The use of olive oil will not supply substantial quantities of vitamins A or E and has no therapeutic value in the treatment of any condition where the use of such vitamins might be beneficial. Representations that respondent's olive oil has special therapeutic value or other beneficial properties because of a vitamin F content are deceptive and misleading, as vitamin F is not generally known or recognized by the medical profession or the biochemical profession.

LEKAS AND DRIVAS, INC. 15 9 Order Olive Oil, when taken internally, does not have any specific therapeutic value in the treatment of any disease or condition. It is not a tonic and will not invigorate or build up the vital organs. The use of olive oil will not prevent appendicitis, gallstones, or infections of the bladder.

The value obtainable from the external use of olive oil is that of a lubricant. When a deficiency of natural oils exists the use of olive oil might be beneficial to the skin. However, it has little or no therapeutic value in the treatment of irritations of the skin other than to serve as a lubricant or as an oily base for other drugs. It has no value in the treatment or alleviation of pain resulting from neuralgia or rheumatism other than the beneficial effects which might be obtained from the rubbing or massage facilitated by the use of olive oil as a lubricant. Since olive oil supplies only pure fat or fatty acids and since the food value of meat consists chiefly in protein, it is misleading to compare the nutritive value of olive oil with meat on the basis of caloric content. PAR. 5. The use by the respondent of the foregoing false, deceptive, and misleading statements and representations, disseminated as her~ inbefore described, has the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that respondent's olive oil has therapeutic value in the treatment and prevention of various diseases and conditions and has value as a tonic which will invigorate and build up the vital organs, and causes such members of the purchasing public to purchase substantial quantities of respondent's olive oil because of such erroneous and mistaken belief.

CONCLUSION The aforesaid acts and practices of the respondent, as herein found, nre all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEA.SE AND DESIST This proceeding having been heard by the FederalI Trade Commission upon the complaint of the Commission, testimony and other evidence in support of, and in opposition to, the allegations of said complaint taken before a trial examiner of the Commission theretofore duly designated by it, report of the trial examiner upon the evidence and exceptions filed thereto, and briefs filed in support of the complaint and in opposition thereto; nnd 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. Order 37F.T.C.

It is ordered, That the respondent Lekas and Drivas, 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 olive oil, do forthwith cease and desist :from directly or indirectly:

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 Federal Trade Commission Act, which advertisement represents directly or through inference, (a) That respondent's olive oil, when taken internally, has any specified therapeutic value in the treatment or prevention of any disease or condition.

(b) That respondent's olive oil is a tonic or that its use will in- 'Vigorate or build up vital organs.

(c) That respondent's olive oil will have any value in preventing appendicitis, gallstones, or infections of the bladder. (d) That respondent's olive oil, when applied externally, has any therapeutic value in the treatment of irritations of the skin other than that supplied by a lubricant.

(e) That respondent's olive oil has any therapeutic value in the treatment or alleviation of pain resulting from neuralgia or rheumatism other than the beneficial effects which might be obtained from the rubbing or massage facilitated by the use of olive oil as a lubricant. (f) That the nutritional value of olive oil is comparable to, or of greater value than, dried or fresh meat.

(g) That respondent's olive oil supplies substantial quantities of vitamins A ore or that it has any therapeutic value in the treatment of any condition where the use of such vitamins might be beneficial. (h) That respondent's olive oil contains vitamin F. 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, the purchase in commerce, as "commerce'' is de-· fined in the Federal Trade Commission Act, of respondent's olive oil, which advertisement contains any of the representations prohibited in paragraph 1 hereof and the respective subdivisions, thereof. It i.rJ further ordered, That the respondent shall, within 60 days after 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 has complied with this order.

M. J. KELLNER, BROKER, ETC. 11' Complaint