Dorland International, Inc

Text (OCR of the scan at left; may contain errors)

IN THE ~latter OF TRANS-PAC SERVICES, INC. AND DORLAND INTERNATIONAL, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5039. Complaint, Sept. 1, 1943-Decision, June 7, 1944 Where a corporation, engaged in the interstate sale and distribution of its "OCA Pinkoveis" and "OCA," together with its advertising agency, in advertisements in newspapers, radio continuities and circulars and other advertising ·material, all in the Spanish Language- Represented that said preparation was a remedy and competent and adequate treatment for colds, use of which prevented the developments and complications of a cold, and that it overcame persistent pains in the head and back, ap.d was a new preparation and harmless;

The facts being it had no effect on the treatment of a cold in excess of temporarily alleviating some of the symptoms thereof; could not be depended upon to overcome persistent pains in the head and back, systemic disorders which cannot be successfully treated by an analgesic preparation; ingredients thereof had been used for many years in such products; and it was not harmless in that frequent and continuous use might be dangerous;

With effect of misleading a substantial portion of the purchasing public into the mistaken belief that said representations were true, and into the purchase of substantial quantities of said preparation_as a result of such erroneous belief: lleld, That said acts and practices, under the circumstances set forth, wilre all to the prejudice and injury of the public and"constituted unfair and deceptive acts in commerce.

Mr. William L. Taggart for the Commission.

Viault & Viault, of New York City, for Trans-Pac Services, Inc. Dannenberg & Hazen, of New York City, for Dorland International, Inc . • 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 Trans-Pac Services, Inc., a corporation, and Dorland International, a corporation, hereinafter referred to as respondents, have 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. ReFJpondent, Trans-Pac Services, Inc., is a corporation, organized and existing under the laws of the State of New York with its principal place of business located at 233 West 14th Street in the city of New York, State of New York. It is now and has been for more than one year last pa-st engaged in the business of offering for sale and selling a medicinal prepamtion known an~ designated as OCA Pinkovels and OCA. '- TRANS-PAC SERVICES, INC. ET AL. 603 602 Complaint Respondent, Dorland International, is a corporation, organized and existing under the laws of the State of Delaware with its principal place of business located in R.C.A. Building, Rockefeller Center, the city and ~tate of New York. This respondent is an advertising agency and as such IS engaged in preparing, disseminating and causing to be disseminated advertising matter. It is the advertising representative of the respondent, 'I_'rans-Pac Ser.v~ccs, Inc., a corporation, and as such aids in the prep!lratlon of advertrsmg material used by the respondent, Trans-Pac Services, Inc., and in the dissemination thereof, including the advertising matter hereinafter described and set forth. . The respondents, Trans-Pac Services, Inc., a corporation, and Dorland International, a corporation act in conjunction and cooperation with one another in the performance ~f the acts and practices hereinafter alleged. PAR. 2. The respondent, Trans-Pac Services, Inc., causes said preparation, when sold, to be transported from its place of business in the State of New York to purchasers thereof located in various other States of the United States and in the District of Columbia. This respondent main- ~ains and at all times mentioned herein has maintained, a course of trade m said medicinal preparation in commerce between and among the various States of the United States and in the District of Columbia. PAR: 3. In the course and conduct of the aforesaid business, respondents, acting in conjunction and cooperation, as aforesaid, have disseminated and are now disseminating, and have caused and are now causing the_ dissemination of, false advertisements concerning said preparation by Unrted States mails and by various other means in commerce, as "commerce" is defined in the Federal Trade Commission Act; and respondents have also disseminated and are now disseminating, and have caused and a_re now causing the dissemination of false advertisements of said prepara- ~ron by various means, for the purpose of inducing and which are likely to Induce, directly or indirectly, the purchase of said preparation in commerce, as "commerce" is defined by' the Federal Trade Commission Act. Among and typi~al of the false and misleading 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, by radio continuities, and by circulars and other adver-tising material all in the Spanish language, the English translation of which is as follows:

STOP THAT COLD BEFORE IT GETS THE BETTER OF YOU! OCA Pinkovels act quickly-are harmless· A cold is such a little thing. But what consequences it can have! Why run the risk of a serious illness? And, of course, you will not wish to serve as a carrier of cold germs and infect your family, your friends and the public when you sneeze or cough. Follow the example of thousands of personal. Take OCA Pinkovela at the first sign of a cold. The rapidity of the .action of OCA is really surprising! Doctors recommend OCA as the modern relief for ordinary headaches, neuralgia, aching muscles and incipient colds.

Carry OCA .;with you always. It is harmless and does not create a habit. i Complaint 38 F. T. C.

8 HOURS IN BED WITHOUT HAVING SLEPT 8 MINUTES! QCA a New and Rapid Relief for Headache Is there anything worse than a persistent headache? What would you not give for a few hours of calm repose? But you toss all night, and when you get up in the morning you are-more tired than when you went to bed! Headaches come from many causes-nervous extenuation, stomach disorders, eye fatigue, excess-but there is an easy, rapid method of obtaining relief. Thousands of men and women take advantage of it.

Doctors recommend OCA Pinkovels not only for simple headaches but for any ordinary pain, whether nervous, muscular or one caused by a cold. OCA acts rapidly! Thousands of persons consider it indispensable. Carry OCA with you always. It is harmless and does not create a habit. NO ONE LIKES A PERSON WHO ALWAYS COMPLAINS Doctors Recommend OCA Pinkovels So many women spend their lives complaining of pains which end up by becoming a calamity! Friends avoid them, and even their own family members lose patience with them. And they are worthy of pity, because they are suffering! It is often a headache, the persistence of which excites your nerves, making you irritable and rendering your tasks and diversions difficult. Or a persistent backacheor severe shoulder pains. You sleep and eat poorly. You feel half dead! So much suffedng may be unnecessary. Why suffer and annoy others with your complaints? Doctors recommend OCA Pinkovels for all ordinary pains, whether of the head, nerves, muscles or from incipient colds. Thousands of women find relief in OCA. OCA is harmless and does not create a habit.

PAR. 4. Through the use of the foregoing statements and representations and others of similar import not specifically set out herein respondents represent directly that said preparation is a remedy for and consti~ tutes a competent and adequate treatment for colds; that its use prevents the development and c<implications of a cold; that it overcomes persistent pains in the head and back; that it is a new preparation and is harmless in use.

PAR. 5. The foregoing statements and representations are false, misleading and deceptiv~. In truth and in fact, said preparation neither prevents or mitigates a cold, is of no value in preventing the complications of a cold, and has no effect in the treatment of a cold in excess of temporarily alleviating some of the symptoms thereof. Said preparation cannot be depended upon to overcome persistent pains in the head and back. Persistent pains are usually symptomatic of systemic disorders which cannot be successfully treated by an analgesic preparation. Respondent's product is not new. Its various ingredients have been used for many years in · analgesic preparations. Said preparation is not harmless. Frequent or continued use may be dangerous.

PAR. 6. The use by the respondents of the foregoing false, misleading and deceptive statements and representations with respect to said preparation has the tendency and capacity to, and does, mislead a substantial portion of the purchasing public into the erroneous and mistaken belief that said ·statements and representations are true, and into the purchase TRANS-PAC SERVICES, INC. ET AL. 605 602 ·Findings of substantial quantities of said preparation as a result of such erroneous or mistaken belief so engendered. . • PAR. 7. The aforesaid acts and practices of the respondents; as herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts 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 th~ Federal Trade· Commission Act, the Federal Trade Commission, on the 1st day of September, 1943, issued, and subsequently served its complaint in this proceeding upon respondents, Trans-Pac Services, Inc., a corporation, and Dorland International, Inc., a corporation, charging them with the use of unfair and deceptive acts and Practices in commerce in violation of the provisions of said act. On September 28, 1943, Dorland International, Inc., filed its answer herein, and on December 4, 1943, Trans-Pac Services, Inc., filed its answer admitting a!~ the material allegations of fact set forth in said complaint. After the fihng of answer by Dorland International, Inc., the Commission, by order entered herein, granted said respondent's motion for permission to withdraw its said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint, except that the acts and practices admitted were limited to those engaged in prior to October 31, 1942, which said substitute answer was duly filed in the office of the Commission. Both of the aforesaid answers waive all intervening Procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer of Trans-Pac Services, Inc., and the substitute answer of Dorland International, Inc., and the Commission, having duly considered the matter, and being 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 THE FACTS PARAGRAPH 1. Respondent, Trans~Pac Services, Inc., is a corporation, or~f;anized and existing under the laws of the State of New York with its ~~mcipal place of business located at 233 West 14th Street in the city of .l~ew York, State of New York. It is now and has been for more than one Year last past engaged in the business of offering for sale and selling a tnedicinal preparation known and designated as OCA Pinkovels and OCA. Respondent, Dorland International, Inc., is a corporation, organized and existing under the laws of the State of Delaware with its principal PJace of business located in R.C.A. Building, Rockefeller Center, in the Clty and State of New York. This respondent is an advertising agency and.as such is engaged in preparing, disseminating and causing to be dissehrnmated advertising matter. It was the advertising representative of t ~respondent, Trans-Pac Services, Inc., a corporation, and for some time Pnor to October 31; 1942, aided in the preparation of advertising material ~sed by the respondent, Trans-Pac Services, Inc., and in the dissemination thereof, including the advertising matter hereinafter described and set forth.

Findings 38 F. T. C.

The respondents, Trans-Pac Services, Inc., a corporation, and Dorland International, Inc., a corporation, acted in conjunction and cooperation with one another in the performance of the acts and practices hereinafter found.

PAR. 2. The respondent, Trans-Pac Services, Inc., causes said preparation, when sold, to be transported from its place of business in the State of New York to purchasers thereof located in various other States of the United States and in the District of Columbia. This respondent maintains and at all times mentioned herein has maintained, a course of trade in said medicinal preparation in commerce between and among the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of the aforesaid business, respondents, acting in conjunction and cooperation, as aforesaid, have disseminated and hav~ caused the dissemination of; false advertisements concerning said preparation by United States mails and by various other means in commercer as "commerce" is defined in the Federal Trade Commission Act; and respondents have also disseminated and have caused the dissemination of false advertisements concerning said preparation by various means, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of said preparation in commerce, as "commerce" is defined by the Federal Trade Commission Act. Among and typical of the false and misleading 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, by radio continuities, and by circulars and other advertising material all in the Spanish language, are the following, the English translations of which are as follows: STOP THAT COLD BEFORE IT GETS THE BETTER OF YOU! OCA Pinkovels act quickly-are harmless A cold is such a little thing. But what consequences it can have! Why run the risk of a serious illness? And, of course, you will not wish to serve as a carrier of cold germs and infect your family, your friends and the public when you sneeze or cough. Follow the example of thousands of persons. Take OCA Pinkovels at the first sign of a cold. The rapidity of the action of OCA is really surprising! Doctors recommended OCA as the modern relief for ordinary headaches, neuralgia, aching muscles and incipient colds.

Carry OCA with you always. It is harmless and does not create a habit. 8 HOURS IN BED WITI-IOUT HAVING SLEPT 8 MINUTES! OCA a New and Rapid Relief for Headache Is there anything worse than a persistent headache? What would you not give for a few hours of calm repose? But you toss all night, and when you get up in the morning you are-mo're tired than when you went to bed! Headaches come from many causes-nervous extenuation, stomach disorders, eye fatigue, excess_:_but there is an easy, rapid method of obtaining relief. Thousands of men and women take advantage of it.

TRANS-PAC SERVICES, INC. ET AL. 607 602 Conclusion Doctors recommend OCA Pinkovels not only for simple headaches but for any ordinary pain, whether nervous, muscular or one caused by a cold. OCA acts rapidly! Thousands of persons consider it indispensable. Carry OCA with you always. It is harmless and does not create a habit. NO ONE LIKES A PERSON WHO ALWAYS COMPLAINS Doctors Recommend OCA Pinkovels . So many women spend their lives complaining of pains which end up by becoming a calamity! Friends avoid them, and even their own family members lose patience with them. And they are worthy of pity, because they are suffering! It is often a headache, the persistence of which excites your nerves, making you irritable and rendering your tasks and diversi~ns difficult. Or a persistent backacheor severe shoulder pains. You sleep aqd eat poorly: You feel half dead! So much suffering may be unnecessary. Why suffer and annoy others with your complaints? Doctors recommend OCA Pinkovels for all ordinary pains, whether of the head, nerves, muscles or from incipient colds. Thousands of women find relief in OCA.

OCA is harmless and does not create a habit .

. PAn. 4. Through the use ~f the foregoing statements and, representations and others of similar import not specifically set out herein respondents represent that said preparation is a remedy for and constitutes a competent and adequate treatment for colds; that its use prevents the development and complications of a cold; that it overcomes persistent Pains in the head and back; that it is a new preparation and is harmless in use.

PAR. 5. The foregoing statements and representations are false, misleading and deceptive. In truth and in fact, said preparation neither prevents nor mitigates a cold, is of no value in preventing the complications of a cold, and has no effect in the treatment of a cold in excess of temporarily alleviating some of the symptoms thereof. Said preparation cannot be d~pended upon to overcome persistent pains in the head and back. Persistent pains are usually symptomatic of systemic disorders which cannot be successfully treated by an analgesic preparation. Respondent's Product is not new. Its various ingredients have been used for many Years in analgesic preparations. Said preparation is not harmless. Frequent or continued use may be dangerous.

PAn. 6. The use by the respondents of the foregoing false, misleading a.nd deceptive_statements and representations with respect to said preparatron has tl).e tendency and capacity to, and does, mislead a substantial Portion of the purchasing public into the erroneous and mistaken belief that said statements and representations are true, and into the purchase of substantial quantities of said preparation as a result of such erroneous or mistaken belief so engendered.

CONCLUSION The aforesaid acts and practices of the respondents, as herein found, are all to the prejudice and injury of the public and constitute unfair and ~eceptive acts in commerce within the intent and meaning of the Federal .1. trade Commission Act.

Order 38 F. T. C.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal 'Trade Commission on the complaint of the Commission and the answers of respondents, in which answers respondents admit all the material allegations of fact set forth in said complaint and state that they waive all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondents have violated the provisions of the Federal Trade Commission Act. It is ordered, That the respondents, Trans-Pac Services, Inc., a corporation, and Dorland International, Inc., a corporation, their officers, representatives, agents, and employees, directly or through any corporate or other device in connection with the offering for sale, sale, or distribution of the medicinal preparation designated OCA Pinkovels and OCA, or any other medicinal preparation" composed of substantially similar ingredients or possessing substantially similar properties, whether sold under the same names or any other name or names, 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 Federal Trade Commission Act, which advertisement represents, directly or through inference, that said preparation- (a) Constitutes a competent and effective treatment for colds; will mitigate a cold or prevent the complications of a cold or is of any value in the treatment of a cold in excess of temporarily relieving some of the symptoms thereof.

(b) Can be depended upon to overcome persistent pains in the head or back.

(c) Constitutes a new preparation.

(d) Is safe or harmless in use.

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 defined in the Federal Trade Commission Act of respondents' preparation, which advertisement contains any of the representations prohibited in paragraph 1 hereof and the respective subdivisions thereof. It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with this order.

AGRICULTURAL INSECTICIDE & FUNGICIDE ASS'N ET AL. 609 Order