Motloid Company, Inc.

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II it IN' THE MATTER OF ., II,,i! MOTLOID COMPANY, INC. AND WALLACE A. ERICKSON COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE .ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 5042. Complaint, Sept. 7, 1943-Decision, June 21, 1944 Where a corporation and an individual engaged in the manufacture and interstate sale IJ,nd distribution of a denture base designated "Moldent"; by advertisements in trade periodicals and advertising circulars, and labels on the boxes or containers thereof- Falsely represented to the members of the dental profession and to those engaged in ... dental laboratory workthat the product "Moldent" was superior to all other denture bases and particularly acrylic denture bases, and complied with a certain specification set up by the American Dental Association known as Revised A.D.A. Specification No. 12 of January 1, 1942;

With effect of misleading and deceiving a substantial portion of the members of said profession and those engaged in said laboratory work into the erroneous belief that such representations were true and into the purchase of substantial quantities of such product because of such mistaken belief:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce:

Before Mr. Miles J. Furnas, trial examiner.

Mr. Joseph Callaway for the Commission.

Mr. John R. li ackett, of Chicago, Ill., for .respondents. 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 Motloid Company, Inc., and Wal- · lace A. Erickson, hereinafter referred to as respondents, have violated the provisions of said act, and it appearing to the Commission that a proceed- Ing 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, Motloid Company, Inc., is a corporation, organized and existing under and by virtue of the laws of the State of Illinois with its office and principal place of business located at 325 West l~uron Street, Chicago, Ill. Respondent, Wallace A. Erickson, is an indtvidual, with his place of business at 325 West Huron Street, Chicago, Ill. . . . PAn. 2. The respondent, Iv1otloid Company, Inc., is now and for more than one year last past, has been engaged in the sale and distribution of a denture base designated as l\1oldent. Respondent, Wallace A. E.rickson, was for a considerable period of time prior to January 1, 1943, V'lce president of said corporation. Since about January 1, 1943, he has been engaged as an in·dividual, in the business of manufacturing the prod- Uct Moldent, and selling and distributing it through Motloid Company, Inc. · Complaint 38F. T. C.

In the course and conduct of their said business respondents cause said product, when sold, to be transported from their place of business in the State of Illinois to the pui'chasers thereof located in various other States of the United States and in the District of Columbia. Respondents maintain and at all times mentioned herein have maintained a course of trade in said product in commerce among and between the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of their said business and for the purpose of inducing the purchase of said product in commerce by the members of the dental profession and those engaged in dental laboratory work, respondents have made and are now making certain false, deceptive and misleading statements and representations regarding said product by . means of advertisements inserted in trade periodicals,· advertising circulars and labels ·on the boxes or containers in which said product is sold and in various other ways. Typical representations are as follows: MOLDENT "Truly Superior"

The "Truly Superior"

Acrylic Denture Base A Methyl Methacrylate Composition Guaranteed to Comply with the Revised A.D.A. Specification No. 12 of January 1, 1942. ' PAR. 4. Through the use of the foregoing statements and representations and others of similar import and meaning not specifically set out herein, the respondents have represented and are now representing, among other things, to the members of the dental profession and those engaged in dental laboratory work that the product JVIoldent is superior to all other denture bases and particularly superior to all other acrylic denture bases, and further that it complies with a certain specification set up by the American Dental Association and known to the members of the dental profession and those engaged in dental laboratory work as Revised A.D.A. Specification No. 12 of January 1, 1942.

PAR. 5. The foregoing representations are extravagant, false, clecep- . tive and misleading in the following respects: The product Moldent is not superior to all other denture bases including acrylic denture bases now generally in use by the members of the dental profession and dental laboratories. It does not comply with the specification set up by the American Dental Association known as Revised A.D.A. Specification No. 12 of January 1, 1942. PAR. 6. The use by the respondents of the foregoing extravagant, false, deceptive and misleading ·statements and representations, disseminated as aforesaid, in connection with the offering for sale, and sale, of said product in commerce has had and now has the capacity and the tendency to and does mislead and deceive a substantial portion of the members of the dental profession and those engaged in dental laboratory work into the erroneous and mistaken belief that such statements and representations are true and into the purchase of substantial quantities of such product in commerce because of such erroneous and mistaken be· lief.

MOTLOID CO., INC. ET AL. 663 661 Findings PAR. 7. The aforesaid acts and practices of the respondents, as herein .II alleged, are all to the prejudice and injury of the public and constitute II unfair and deceptive ac,ts and practices in commerce within the intent and 1: il meaning of the Federal Trade Commission Act. ii [I ·I R]i}PORT, FINDINGS AS TO THE FACTS, AND ORDER [: i Pursuant to the provisions of the Federal Trade Commission Act, the !I· Federal Trade Commission, on September 7, 1943, issued and thereafter served its complaint in this proceeding upon the respondents, Motloid Company, Inc., a corporation, and Wallace A. Erickson, an individual, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondents' answer, the Commission, b~ order entered herein, granted respondents' motion for permission to • ! Wtthdraw said answer and _to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving a!~ intervening procedure and further hearing as to said facts, which substitute answer was duly .filed in the office of the Commission. Thereaf~er, this proceeding regularly came on for final hearing before the Commh ts~ion on said complaint and substitute answer, and the Commission avmg duly considered the matter and being now fully advised in the Premises makes this its findings as to the facts and its conclusion drawn therefrom.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Motloid Company, Inc., is a corporation, ~rganized and existing under and by virtue of the laws of the State of Il- ~nois with its office and principal place of business located at 325 West .1.1uron Street, Chicago, Ill. · b ~respondent, Wallace A. Erickson, is an individual, with his place of usmess also located at 325 West Huron Street, Chicago, Ill.. . PAn. 2. Respondent, Motloid Company, Inc., is now, and for more than one year last past has been, engaged in the sale and distribution of a denture base designated as Moldent. Respondent, Wallace A. Erickson was, for a considerable period of time prior to January 1, 1943, vice president of ~aid corporation. Since about January 1, 1943, he has been engaged as ~n ~ndividual in the business of manufacturing the product, lVIoldent, and selhng and distributing it through Motloid Company, Inc. In the course and 9conduct of their said business, respondents cause said product, when sold, to be transported froni their place of business in the State of Illinois St? the purchasers thereof located in various other States of the United tat_es and in the District of Columbia. Respondents maintain, and at . all times mentioned herein have maintained, a course of trade in said prodsuettatesin andcommercein the Districtamong andof Columbia.between the various States of the United PAn. 3. In the course and conduct of their said business, and for the burpose of inducing the purchase of said product in commerce by the memers of the dental profession and those engaged in dental laboratory work, respondents have made and are now making certain false and misleading stat~ments and representations regarding said product by means of ad- Vertisements inserted in trade 'periodicals, advertising circulars, and labels '-- Order 38 F. T. C.

on the boxes or containers in which said product is sold and in various other ways. Typical representations are as follows: MOLDENT "Truly Superior"

The "Truly Superior"

Acrylic Denture Base A Methyl Methacrylate Composition Guaranteed to Comply_ with the Revised A.D.A. Specification No: 12.of January 1, 1942. PAR. 4. Through the use of the foregoing statements and representa· tions and others of similar import and meaning not specifically set out herein, the respondents have represented and are now representing, among other things, to the members of the dental profession and to those engaged in dental laboratory work that the product Moldent is superior to all other denture bases and particularly superior to all other acrylic denture bases, and further that it complies with a certain specification set up by the American Dental Association and known to the members of the dental profession and those engaged in dental laboratory work as Revised A.D.A. Specification No. 12 of January 1, 1942.

PAR. 5. The foregoing representations are extravagant, false, deceptive and misleading in the following respects:

The product Moldent is not superior to all other denture bases including acrylic denture bases now generally in use by the members of the dental profession and dental laboratories. It does not comply with the specifica· tion set up by the American Dental Association known as Revised A.D.A. Specifi()ation No. 12 of January 1, 1942.

PAR. 6. The use by the respondents of the foregoing extravagant, false, deceptive and misleading statements and representations, with respect to their said product, disseminated as aforesaid, has had and now has the capacity and the tendency to and does mislead and deceive a substantial portion of the members of the dental profession and those engaged in den· tal laboratory work into the erroneous and mistaken belief that such state· ments and representations are true and into the purchase of substantial quantities of such product in commerce because of such erroneous and mistaken belief.

CONCLUSION The aforesaid acts and practices of the respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and de· ceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the substitute answer of the respondents, in which answer respondents admit all the material allega· tions of fact set forth in said complaint and state that they waive all intervening procedure and further hearing as·to said facts, and the Commis· . MOTLOID C0. 1 INC. ET AL. 665 661 Order sion having made its findings as to the facts and its conclusion that said respondents have violated the provisions of the Federal Trade Commission Act. • · It is ordered, That the respondent, 1\'lotloid Company, Inc., a corpora-· . tion, its officers, representatives, agents, and employees, and respondent, Wallace A. Erickson, an individual, his agents, representatives, or em- . ployees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of their product, Moldent, or any other product of substantially similar composition, whether sold ~nder the same name or any other name in commerce as "commerce" 1s defined .in the Federal Trade Commission Act, do forthwith cease and desist frt>m:

1. Representing directly or by implication that their product is superior to all other denture bases, or all other acrylic denture bases. 2. Representing that their product complies with the specification of the American Dental Association known as revised, A.D.A. Specification No. 12 of January 1, 1942 .

. 3. Falsely representing that their product complies with any specification promulgated for the guidance or information of the dental profession. _It is fur.ther ordered, That the respondents, and each of them, shall,· Within 60 days after service upon them of this order, file with the Com- ~ission a report in writing, setting forth in detail the manner and form lU which they have complied with this order.

o I 591546~6--vol.SS----45 Syllabus 38F. T. C.