L. R. Kallman & Co

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IN THE 11ATTER OF L. R. I<ALL11AN & C011PANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4966. Complaint, Jfay 19, 194$-Decision, Apr. 11,194-5 Where a partner in active charge of a family partnership business financed by him, and engaged in interstate sale and distribution of two cosmetic preparations designated "Chin-Up "-more recently "Chin-Ep "-and "Digitite"; through advertisements in newspapers and by circulars and other advertising literature, directly and by implication- (a) Represented that the preparation "Chin-Up," or "Chin-Ep," was effective in tightening the throat line, that it eliminated flabbiness and crepiness along the throat line, made loose, flabby skin on the chin and throat line smoother and firmer, and caused a person to have and to retain a youthful throat line; and (b) Represented that the preparation designated "Digitite" tightened the skin of the hands and made it firm, and caused the hands to become velvety smooth, and that use thereof would result in the hands having a youthful appearance; The facts being that while the preparations in question-the active ingredients of which, namely, m-digallic acid in ethyl alcohol together with a fraction of 1% of phenyl carbinol, were the same-during the time they remained on the skin, because of their astringent action, might give a feeling of skin tightness, they would not in fact tighten loose skin or give the skin an appearance of smoothness; they would not in any way affect wrinkles and skin flabbiness due to changes within the skin or deeper tiss:ues, nor would they eliminate or prevent skin crepiness; while their continued use might harden the outer layer of the skin and might or might not, depending upon various circumstances, cause it to be temporarily firmer, such continued use might result in skin irritations and roughness; and said "Chin-Up" or "Chin-Ep" was not effective in tightening the throat line and would not cause a person to have or to retain a youthful throat line, nor would" D1gitite" cause the hands to become velvety smooth or give them a youthful appearance; With capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the mist.taken belief that such false representations were true, and thereby into the purchase of substantial quantities of said preparations: [{ eld, That said 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. John L. Hornor, trial examiner.

Mr. John M. Russell 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 Commission, having reason to believe that L. H.. Kallman, an individual, trading as L. R. Kallman & Company, hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to the Commission that a proceeding by it ~n respect thereof would be in the public interest hereby issues its complaint, stating its charges in that respect as follows: L. R. KALLMAN & CO. 363 .

362 Complaint PARAGRAPH 1. L. R, Kallman, is an individual, trading as L. R. Kallman & Company with his principal office located at 43 East Ohio Street, Chicago, Ill.

PAR. 2. Respondent is now, and has been for more than two years last past, engaged in the sale and distribution of two cosmetic preparations, designated "Chin-Up" (also designated "Chin-Ep ") and "Digitite." Respondent causes his said preparations, when sold, to be transported from his aforesaid place of business in the State of Illinois to the purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said preparations 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 his aforesaid business the respondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said products by the United States mails and by various other means of 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 his said products by various means for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of his said products 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 false advertisements disseminated and caused to be disseminated, as hereinabove set forth, by the United States mails, by radio continuities, by advertisements in newspapers, and by circulars and other advertising, are the following: Chin-Up CHIN-UP FOR Tile YOUNG LINE OF BEAUTY.

You can actually feel your throa~line tightening. It's a wonderful sensation. Don'1. let flabbiness, crepiness, dest.roy your youthful throat line. Quick, easy, and so effective you can cut down on the applications as time goes on. You'll never want a chin strap again.

A completely revolutionary astringent mask effective in making loose flabby skin on chin and throatline, firmer, smoother.

See how it helps to keep your throatline and chinline firmer and smoother. Use Chin-ep to help retain a youthful chinline.

Digitite Three-Minute Hand Treatment.

A revolutionary new beauty aid to help firm the skin! You'll feel the tightening sensation almost immediately ... and be enchanted by the velvety smoothness and youthful appearance of your hands.

You'll marvel at the economy of Digitite-you need use so little-you can gradually cut down the applications. A few drops a day does the trick. Non-sticky.

PAR. 4. Through the use of the statements and representations hereinabove set forth and others of similar import not specifically set out herein, all of which purport to be descriptive of respondent's said preparation Findings 40 F. T. C.

designated "Chin-Up" and of its effectiveness when used, respondent di- >ectly and by implication represents that it is effective in tightening the throat line; that it eliminates and prevents flabbiness and crepiness along the throat line; that it makes loose flabby skin on the chin and throat line smoother and firmer; that it causes a person to have and retain a youthful throat line.

By the use of the statements and representations hereinabove set forth, and others of similar import not specifically·mentioned herein which purport to be descriptive of respondent's said preparation designated "Digitite," respondent directly and by implication represents that it tightens the skin of the hands and makes it firm; that it causes the hands to become "velvety" smooth and that its use will result in the hands having a youthful appearance; that it is non-sticky when applied to the hands. PAR. 5. The foregoing representations are grossly exaggerated, false and misleading. In truth and in fact respondent's said preparation designated "Chin-Up" is not effective in tightening the throat line. It will not eliminate or prevent flabbiness or crepiness along the throat line. It will not make any loose or flabby skin firmer or smoother. It will not cause a person to have or retain a youthful throat line.

Respondent's preparation designated "Digitite" will not tighten the skin of the hands or make it firm. It will not cause the hands to become velvety smooth or result in the hands having a youthful appearance. It is sticky when first applied to the hands and remains so until it dries. PAR. 6. The true facts are that the only effect of each of respondent's said preparations designated "Chin-Up" and "Digitite" when used as directed, is a temporary local astringent action upon the skin. Said preparations will have effect only upon the outer horny layer of the skin and neither of them \Vill penetrate beneath this layer of the skin. Both of said preparations will harden and tan the outer layer of the skin, but neither of them will have any effect upon the deeper wrinkles and flabbiness of the skin which are the result of changes therein. PAR. 7. The use by the respondent of the foregoing false, deceptive and misleading statements and representations in said false advertisements, disseminated as aforesaid, has had and now has the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements and representations are true, and into the purchase of substantial quantities of respondent's said cosmetic preparations as a result of such erroneous and mistaken beliefs.

PAR. 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 ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on May 19, 1943, issued and subsequently served its complaint in this proceeding on respondent L. R. Kallman, an individual, charging him 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 respondent's answer thereto, testimony and other evidence in support of and in opposition to the allega- L. R. KALLMAN & CO. 365 862 Findings tions of the complaint were introduced before an 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, the proceeding regularly came on for final ht>aring before the Commission on the complaint, the answer thereto, testimony and other evidence, report of the trial examiner, and brief in support of the complaint (respondent not having filed brief and oral argument not having been requested); and the Commission, having duly considered the matter and beit.g now fully advis~d 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, Lawrence R. Kallman (referred to in the complaint as L. R. Kallman), an individual, is a partner in L. R. Kallman & Company, a copartnership consisting of the said Lawrence R. Kallman, his wife, Mabel P. Kallman, and his son, Donald R. Kallman. The said respondent financed the business carried on by the partnership and is in active charge and direction of its affairs. His principal office and place of business is located at 43 East Ohio Street, Chicago, Ill. PAR. 2. For more than two years last past respondent has been engaged in the sale and distribution of two cosmetic preparations, one designated "Chin-Up" (more recently called "Chin-Ep"), and the other designated as "Digitite." Respondent causes said preparations, when sold, to be transported from his place of business in the State of Illinois to the purchasers thereof located in various other States of the United States and in the District of Columbia, and maintains, and at all times mentioned herein has maintained, a course of trade in said preparations 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, respondent has disseminated, and has caused the dissemination of, false advertisements concerning said preparations by the 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 said preparations by various means, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of said preparations 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 false advertisements disseminated and caused to be disseminated as aforesaid by the United States mails, by advertisements in newspapers, and by circulars and other advertising liter- · ature, are the following respecting the preparation de~:>ignated "Chin-Up" or "Chin-Ep": · CHIN-UP For the Young Line of Beauty You can actually feel your thr11atline tightening. It's a wonderful sensation. Don't let flabbiness, crepiness destroy your youthful throatline, Quick, easy, and so effective 366 FEDERAL TRADE COMMISSION DECISION::;

Findings 40 F. T. C.

you can cut down on the applications as time goes on. Use it just before your biggest party-use it nightly. You'll never want a chin strap again! (Comm. Ex. 5). * * • • • • CHIN-EP For a More Beautiful, More Youthful-looking Throatline You've looked for it ... you've asked for it ... here it is! A new, completely revolutionary astringent mask. Amazingly effective in m~king loose flahby skin on your throatline and chinline firmer, smoother! You'll be delighted with the new beauty, the more youthful loveliness you see! Easy to apply, too! Once you use it you'll never be without it! (Comm. Ex. 13).

And the following respecting the preparation "Digitite ": FOR FIRMEH, MORE YOUTHFUL LOOKING HANDS use D1GITJTE! The Amazing Three l\Iinute Hand Treatment Not a lotion to soften the hands but a completely revolutionary new hand beauty aid to help firm the skin. So effective its tightening sensation is felt almost immediately upon application. Then-You'll be delighted with the new loveliness, the new beauty and velvety-smoothness of your hands! They'll be lovely to touch, to behold I A lingering fragrance. Nonsticky. Economical too ... so marvelously quick and so effective you can gradually cut down the applications. Hemember-a few drops a day does the trick! (Comm. Ex. 10).

PAR. 4. Through the use of the statements and representations contained in the advertisements set out above, and in others of similar import not specifically set out herein, all of which purport to be descriptive of respondent's said preparations and their effectiveness in use, respondent represents, directly and by implication, that the preparation "Chin-Up," more lately called "Chin-EP," is effective in tightening the throatline, that it eliminates and prevents flabbiness and crepiness along the throatline, that it makes loose, flabby skin on the chin and throatline smoother and firmer, and that it causes a person to have and to retain a youthful throatline; and that the preparation designated "Digitite" tightens the skin of the hands and makes it firm, that it causes the hands to become velvety smooth, and that its use ~ill result in the hands having a youthful appearance. · PAR. 5. The formula for the preparation "Chin-Up" was not changed when the name of the product was changed to "Chin-Ep." The ingredients in the preparations" Chin-Up" and" Digitite" are the same, but one contains a higher percentage of the active ingredients than the other. The active ingredient in both preparations in m-digallic acid in ethyl alcohol. Doth preparations also contain a fraction of one percent of phenyl carbinol. Respondent furnishes to purchasers of said preparations at their various L. R. KALLMAN & CO. 367 362 Or,der locations throughout the United States advertising copy and newspaper mats, and makes it a practice to reimburse dealers who purchase said preparations for all or a portion of the cost of publishing in newspapers the advertising mats or other advertisements containing representations similar to and based upon those supplied by respondent. PAR. 6. The aforesaid preparations will have a temporary local astringent action upon the skin, but they will not have any effect upon any part of the skin except its outer layer. During the time these preparations remain on the skin, because of their astringent action, they may give to the user a feeling of skin tightness but they will not in fact tighten loose skin or give the skin an appearance of smoothness. Wrinkles and skin flabbiness due to changes within the skin or deeper tissues cannot be corrected or affected in any way by said preparations, nor will said preparations eliminate or prevent skin crepiness. The continued use of the preparations may harden the outer layer of the skin and may or may not, depending upon various circumstances, cause the outer layer of the skin to be temporarily firmer. Such continued use, however, may result in skin irritations and roughness. The preparation" Chin-Up" or" Chin-Ep" is not effective in tightening the throatline and will not cause a person to have or to retain a youthful throatline. The preparation "Digitite" will not cause the hands to become velvety• smooth or give to the hands a youthful appearance.

PAR. 7. The use by respondent of the false, misleading, and deceptive statements and representations contained in the aforesaid false advertisements disseminated, as heretofore found, has had, and has, the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements and representations are true, and into the purchase of substantial 1uantities of respondent's said preparations as a result of such erroneous and mistaken beliefs. · CONCLUSION The acts and practices of respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices 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, the answer of respondent, testimony and other evidence taken before an examiner of the Commission theretofore duly designated by it, report of the trial examiner, and brief in support of the complaint, 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 respondent Lawrence R. Kallman, individually, and as a copartner in L. R. Kallman & Company, his representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of "Chin-Up" or "Chin-Ep" and "Digitite," or any preparations of substantially similar composition or possessing substantially similar properties, whether sold under the same names or under any other names, do f-'>rthwith cease and dP.sist from directly or indirectly:

Order 40 F. T. C.

1. Disseminating or causing to be disseminated, by means of the United States mails or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, any advertisement which represents, directly or through inference:

(a) That the preparation "Chin-Up" or "Chin-Ep" is effective in tightening the throatline; that it will eliminate or prevent flabbiness or crepiness along the throatline; that it will cause a person to have or to retain a youthful throat line; that it will make any loose or flabby skin smoother; or that it will make the skin firmer, in excess of possibly affording temporary firmness to the outer layer of the skin. (b) That the preparation "Digitite" will tighten the skin of the hands; that it will cause the skin of the hands to be smoother or velvety smooth; that it will give to the hands a youthful appearance; or that it will cause the skin to be firmer, in excess of possibly affording temporary firmness to the outer layer of the skin.

2. Disseminating or causing to be disseminated, by any means, any advertisement 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 the aforesaid preparation, which advertisement contains any of the representations prohibited in paragraph 1 above.

· It is further ordered, That the respotldent shall, within 60 days after service upon him of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with this order.

JOSEPH SPERLING, INC. 369 Complaint