American Extension School

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IN THE MATTER OF AMEIUCAN EXTENSION SCHOOL ET AL.

DECISION AND ORDER IN REGARD TO 'THE ALLEGED VIOLATION OJ.' THIi FJTDERAL TRADE COMMISSION ACT Docket 6055. Complaint, Nov. 1952--Decision, July, 1953 Where a corporation and its president, engaged in the interstate sale and distribution throu/(b the U. S. mails of a study course to prepare students thereof for exanlination for U. S. civil service positions; in advertisements in newspapers in tlJe northwestern part of the United States and advertising matter distributed to prospective students- (1) Used the word "University" in their trade or corporate name and the word Extension" to describe their course and thereby represented that their sehool was a resident institution of higher learning or an extension divisions of such instit.ution, when in fact they did not maintain a resident school and had no residcnt faculty hut operated a commercial business for profit; (2) Represented falsely as aforesaid and through use of emblems depicting the American eagle and sinlulation of the U. S. offcial seal on advertising, stationery, and lesson material, that their school was connected with the U. S. Civil Service Commission or other Government agency, and that their sales a/(ents were employees thereof; that ther had contractual relationsbips witll the U. S. Government for supplring applicants for civil service positions; that the U. S. Civil Service Commission reco/(nized and recommended iheir school; and that they had advance information of U. S. civil service examinatioIlS;

(3) Represented falsely as aforesaid and through their sales representatives that completion of their courses of study or passing of their aptitude or other tests assured emploYlncnt in the U. S. civil service; that it was necessary for persons seeking sneh positions to take their courses of study in order to qualify; that al1 persons completing their course and passing U. S, civil service examinations would be placed at the top of the list of eligibles; that eivil service positions were generally available which, in fact, required vet.erans' st.atus or special qualifieations, and that vacancies existed Contrary to fact; that starting salaries for such IJositions were greater than was the f Jtt; and that. the examinations they guye were for specific civil service positions; and (4) Represented falsely that unless prospective students enrolled immediately at the time their salesTTan called, their opportunity to take the course would have passed for a year because the enrollment quota was limitcd and students couid not he accepted for future enrollments: Held: That such acts and practices were all to the prejudice and injury of thc public, and constituted unfair and deceptive acts and practices iu commerce, Before lJlr. Abne?' E. Lipsr:mb hearing examiner. . Wiliam L. Pencke for the Commission. . John lJf. Brady, of Portland, Oreg., for respondents. AMERICAN EXTENSION SCHOOL ET AL. 103 102 Findings DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OJ!' COMPLIAKCE Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission, on November 3 1952, issued and subsequently served its complaint in this proceeding upon the respondent named in the caption hereof, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said Act. On December 18, 1952, by permission of the hearing examiner theretofore duly designated by the Commission, respondents withdrew their answer filed on November 28, 1952, and filed in lien thereof a substitute answer admitting all the material allegations of fact set forth in the said complaint and waiving all intervening prosa,id facts. Thereafter the proceed-cedure and further hearing as to ing regularly came on for consideration by the hearing examiner upon the said complaint and answer, and said hearing examiner, on December 24, 1952, filed his initial decision.

The Commission, having reason to believe that the initial decision did not constitute an adequate disposition of the matter, on February , 1953, issued and thereafter served upon the parties its order placing this case upon the Commission s docket for review. Thereafter the Commission, having considered the entire record and having prepared a tentative decision, caused copies of said decision to be served togetherupon respondents and counsel supporting the complaint, with its order, issued on June 4 , 1953, granting them leave to file within twenty days after service thereof, objections to the changes in the hearing examiner s initial decision as shown by the said tentative decision. No objections having been filed within the period specified in the said order, the proceeding thereafter came on for final consideration by the Commission upon the record on review 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 the following findings as to the facts, conclusion drawn therefrom, and order, the same to be in lieu of the initial decision of the hearing examiner.

FINDINGS AS TO THE FACTS PARAGRAPH 1. American Extension School is a corporation, organized and existing under the laws of the State of Oregon, with its principal offce and place of business at 1739 K northeast 42nd Avenue, Portland, Oregon.

Respondent Theodore E. Smith is an individual, and president and director of said corporation, and as such formulates a.l the policies and controls and manages all of the affairs of said corporation. His . . . . .

Findings 50 F. T. C.

principal offce and place of business is the same as that of the corporate respondent.

PAR. 2. For more than two years last past, respondents have been and are now engaged in the sale and distribution of a course of study and instruction intended for preparing students thereof for examination for certain Civil Service positions in the United States Government, which said course of study is pursued by correspondence through the United States mails. Respondents, in the course and conduct of said business, cause said ( oursc of study to be transported from their said place of business in the State of Oregon to, into and through States of the United States other than Oregon, to purchasers thereof located in such other States. There has been at all times mentioned herein a course of trade in said course of instruction so sold and distributed by respondents in commerce between and among the varous States of the United States, and said course of trade has been and is substantial.

PAR. 3. In connection with the sale of said course of study, respondents have made, and are making use of, advertisements placed in newspapers in the northwestern States of the United States and of printed advertising matter distributed to prospective students in the several States in which said course of study is sold, in and by which numerous representations have been and are made in regard to said course of study and matters and things connected therewith. Typical of such representations made on postal cards distributed to the public generally are the following:

IS YOUR ;rob PERMANENT 452 000 POSITIONS This Year, due to Deaths, Retirements and Normal Government Expansion CIVIL SERVICE Thousands Every Month Find the SECURITY of a Government Position ME;\-WOMEN If you Meet the Hequirements You are Eligible for JDxamination I am interested in securinl( Government Employment. Please furnish me without cost, information covering the requirements necessary to obtain a Civil Service position with the Government. I would appreciate a personal interview at your earliest eonvenience, if it appears I am eligible. A Few of Over 20 000 Different Kinds of U. S. CIVIL SIDIWICE POSITIONS Paying $2450 to $4200 to Start No Experience Needed--Comrnon School Education Usual11y Suffeient ____________ _ _ AMERICAN EXTENSION SCHOOL ET AL. lud. 102 Findings -- $3170 to $3870PositionsPostal Transportation Clerks__ Start-Salary Post Offce Clerk or Carrier - - $2870 to $3670 --------- $4200Rurall\ail Carrier-Average__--- Stenographer-Typist____- ----- $2450 to $2930 Postmaster - ---- $2500 to $9000 Storekeeper-Gauger______----- --- $3450 to $4200 Customs Positions--_ -- $3450 to $4200' lJepartmental Clerks_-- -------- $2000 to $3600 File Clerks-Statistical__ --- $2650 to $7400 Lihrarian_ -- $3727 to $6235 General Clerkships___ --------- $2450 to $4200 Social Seeurity Positions--_--_ - $2860 to $7500 Internal Revenue---- --- $2840 to $5100 Immigration Positions_-- ------- $2850 to $4200 Border and Port Patrol-----_------------ ------------------- $3450 and up Park RangeL-- ------------ $2974 and up Verifier, Opener and Packer----------------- ------------- $2850 to $3450 Telephone Operator-- -- $2650 to $3130 Jr. Accountant--__ --- $3100 and up Junior Investigators-__-- -------------- $3450 and up Forest and Field Clerlc_--_--_- ------- $2820 and up Jr. Nurse-- ---- $3000 and up VACANCIES :HIXIST NOW In connection with the use of said postal cards distributed to prospective purchasers, respondents have used the trade name "The American Extension Plan; and in connection with the distribution to said prospects of a booklet entitled "Civil Service Security" and purporting to describe the method of taking Civil Service tests, respondents are using the trade name "American Extension University. On their enrollment blanks, form letters, and some lesson material respondents use a facsimile of the American eagle in the form of a seal or shield similar to the offcial seal of the United States Government. PAH. 4. By means of the foregoing statements and representations and others to the same and similar effect not herein specifically set out respondents represent and imply that their said business is a branch of or connected with, the United States Government or the United States Civil Service Commission; that 452 000 positions are open in the United States Civil Service, consisting of over 20 000 different kinds including those sepcifically listed on said postal cards; that said vacancies are available to all applicants and that thousands of permanent appointments are made every month; that men and women are wanted by the United States Government to prepare for Civil Service Examinations and positions and that respondents and their agents are qualified to determine the qualifications of applicants for such positions and that said positions may be obtained through respondents' school; Findings 50 F. T. C.

that the starting salaries for the positions listed by respondents gen- ,erally are from $2 450 to $4 200 and are as high as $9 000; and that respondents' said school is an extension university or an extension division for correspondence study by an institution of higher learning. PAR. 5. In the course and conduct of said business, as aforesaid respondents employ sales agents or representatives who call upon prospective purchasers of said course of study. By means of oral statements made by said sales agents, respondents represent and imply to prospective students and purchasers of their said course of study: 1. That American Extension School is connected with, or is a branch of the United States Civil Service Commission or the United States Government or some agency thereof;

2. That respondents' said sales agents are representatives or employees of the United States Civil Service Commission or have some 'connection therewith;

3. That said American Extension School is recognized or recommended by the United States Civil Service Commission; 4. That American Extension School and the United States Government have some contractual relationship whereby said school supplies employees to the United States Government;

5. That the taking of respondents' said course of study is the only way to obtain a United States Government job; 6. That the examinations given by respondents are for specific positions in the United States Civil Service; 7. That students who pass the school's aptitude test or have a pleasing personality and experience are qualified to take United States Ci vii Service examinations;

8. That the American Extension School has information with respect to announcements of examinations prior to the time such announcements are made by the United States Civil Service Commission; 9. That the passing of examinations given by the school assures students of obtaining a position in the United States Civil Service; 10. That students who take respondents' course of study will be placed at the top of the list of eligibles for United States Civil Service positions;

11. That unless prospective students enroll immediately at the time said salesman calls upon such prospects, the opportunity for taking the course will have passed for a year for the reason that the enrollment quota is limited and students cannot be accepted for future enrollments.

PAR. 6. All of said representations, statements and implications are grossly exaggerated, false and misleading. In truth and in fact, the representation that over 400 000 positions will be vacant in the course AMICRICAN J;JXTENSION SCHOOL E'l AL. 107 J02 Findings of a year, and that thousands are appointed to United States Civil Service positions every month, is grossly exaggerated. Appointments to permanent United States Civil Service positions during the last two years have not exceeded several hundred appointments each month and it is not expected that appointments will be increased. Most of the positions specifically listed in respondents' advertising literature as being available are not open to applicants generally, but are either restricted to persons of veteran status or require special physical and educational qualifications and practical experience. Positions in the Postal service are restricted to persons living within the area of a given post offce. No examination has been announced for the position of store bookkeeper gauger for years, and none is contemplated. Positions in the Customs service are restricted to men only, and most of the positions in that service are open only to veterans. Positions in the Immigration, Border, Port and Patrol services are restricted to veterans and require special training. Examinations for the position of Verifier, Opener and Packer, and Forest and years. GenerallyField Clerk have not been announced in over 10 speaking, the starting salaries in said positions are not as high as those listed by respondents. Among the positions listed by respondents are many which require experience as one of the qualifications for employment.

, agents or sales- X either the respondents nor any of their offcers rnen are connected in any manner whatsoever with the United States Civil Service, the United States Government or any agency thereof. The United States Civil Service Commission neither recognizes nor recommends respondents' school to anyone, and no contractual relationship exists between said Commission and respondents for the furnishing of applicants for United States Civil Service examinations or employees. Applicants for United States Civil Service examinations are not required to take respondents' course of study in order to qualify for United 8t,ltes Civil Sel'ice examinations. The passing of respondents' so-called aptitude test or the possession of a pleasing personality and experience does not qualify applicants for United States Civil Service ex,llninations. Respondents have no advance information pertaining to announcements of United States Civil Service examinations, nor any other information that is not available to the public generally.

The examinations given by respondents to their students are not examinations for specific positions in the United States Civil Service; the passing of a United States Civil Service examination by respondents' students wil not assure them a position in the United States Civil Service or their placement at the top of the list of eligibles. Conclusion 50 F. T. C.

Prospects do not lose the opportunity to enroll for said course of study by failing to do so at the time of the salesman s call, but may enroll and purchase said course at any time they desire to do so. There is no limitation on the number of students; respondents sell said course to all persons who arc willing to purchase the same. PAR. 7. Through the use of the trade names "The American Extension Plan" and "American Extension University" respondents represent and imply that their business is part of an extension division of and operated by a resident institution of higher learning, with a resident faculty and a student body and equipped to offer courses in the subjects of Liberal Arts, professions and other subjects of higher education.

In truth and in fact, respondents operate a commercial business for profit engaged in the sale of a course of study designed to prepare individuals for the taking of Civil Service examinations of the lower level of general information type. Respondents do not maintain a resident school, have no resident faculty qualified to teach subjects in the several branches of higher education and do not offer any resident courses in such subjects.

P AU. 8. The use of an emblem depicting the American eagle, or a simulation of the offcial seal of the United States Government on some of their advertising literature, stationery and lesson material further represents and implies that respondents' school is connected with the United States Government or some agency thereof, and has no offcial approval. In truth and in fact, as hereinabove set forth respondents have no connection whatever with the United States Government, and the use of said emblems is wholly unauthorized and misleading.

PAR. 9. The use by respondents of the statements and representations aforesaid has had and now has the tendency and capacity to and does confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such statements and representations are true and to induce them to purchase respondents' course of study and instruction in said commerce on account thereof. CONCLUSION The aforesaid acts and practices of respondents, as herein found 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. AMERICAN EXTENSION SCHOOL ET AL. 109 102 Order ORDER 1 t is ordered That respondent, American Extension School, a corporation, and its offcers, agents, representatives, and employees, and respondent, Theodore E. Smith, as an offcer of said corporation, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution in commerce, as "commerce is defined in the Federal Trade Commission Act, of a course of study and instruction intended for preparing students thereof for examillation for Civil Service positions under the United States Government, or any similar courses of study, do forthwith cease and desist from:

1. Using the word "University" or any word of similar import as a part of respondents' corporate or trade name, or using the word Extension" or any word of similar import to describe their course of instruction, or otherwise representing that respondents' school is a resident institution of higher learning or is an extension division of a resident institution of higher learning;

2. Representing, directly or by implication: (a) That respondents or their school have any connection with the United States Civil Service Commission or any other agency of the United States Government;

(b) That respondents' sales agents are representatives or employees of the United States Civil Service Commission or any other government agency, or have any connection therewith; (c) That the completion of respondents' course of study assures students of positions in the United States Civil Service or makes them eligible for appointment to such positions; (d) That the passing of respondents' aptitude or other tests assures applicants of employment in the United States Civil Service; (e) That it is necessary for persons seeking United States Civil Service positions to take respondents' course of study in order to qualify for or obtain such positions;

(f) That the examinations given by respondents are examinations for specific positions in the United States Civil Service; (g) That all persons completing respondents' course of instruction and passing United States Civil Service examinations will be placed at the top of the list of eligibles;

(h) That any United States Civil Service position which requires appointees to have veteran s status, or special physical, mental, educational, or experiential qualifications is generally available; 110 FEDERAL TRADE COMMISSIOK DECISIONS Order 50 F. T. C.

(i) That respondents have advance information regarding announcements of United States Civil Service cxaminations, or any infonnation not generally available to the public; (j) That vacancies exist in any United States Civil Service position contrary to the fact; or that the number of positions available or vacant in the rnited States Civil Service or any branch thereof is greater than is actually the fact;

(k) That the starting salary for any United States Civil Service position is greater than it is in fact;

(1) That any contractual relationship exists between the United States Civil Service Commission and respond ants for the furnishing by respondents of applicants for United States Civil Service positions; (m) That the United States Civil Service Commission recognizes recommends or endorses respondents' school; (n) That there are any limitations with respect to the time when one may enroll as a student or to the number of students who may be enrolled.

3. Using emblems or other picturizations resembling or simulating the seal or insigne of the United States or any agency thereof, or otherwise representing that respondents are connected with the lJnitecl States Government or any agency thereof.

It is further ordered, That the respondents shall, within sixty (60) days after service upon them of this order, iile with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

, .

THE B-YIMM CO. 111 Decision IN THE MATTER 01 T. PILCHER AND PERRYTHOMAS D. McBRYDE, JOE ELLIOTT, TRADING IN THE NAME OF THE B-VIMM COMPANY DECISION AND ORD JR IN REGARD TO THE ALLEGED VIOLA'l' ION OF THE FEDERAL TRADE COMMISSION ACT Doclcet 6005. Complaint, June 30, 1952-Decision July 19, 19,,3 Where three partners, engaged in the interstate sale and distribution of their liquid drug preparation "B- VimIll " in advertisements in newspapers and magazines of general circulation, circulars and leaflets, and by radio broadcasts, directly or indirectly- (1) Represented that their said " Vimm" 'i\"as a vitamin, liver, iron and mineral dietary supplement, that it contained aU the essential vitamins and minerals and was a competent and effective treatment and gave" fast Tclief for all diseases or conditions caused by vitamin or mineral deficiencies; When in fad while, taken as dircetcd, B.Yimm supplied many times the adult it supplied only the minimum daily requiremcnts of Vitamin Bl and iron, minimum daiJr requirements of B2 alld niacinamide, did not supply the minimum daily requirements of calcium or pbosphorus, and did not supply , C, D, BG and the required mineral iodine or such essent.ial vitamins as A , therefore, not the adequate.e B12, or tbe anti-anelnia factor of liyer; was dietarr supjJlement claimed and was of no value in the treatment of defideficiencies ciency ailment.s other than those resulting from HI and iron ed in thc infrequent and did not give fast relief but, if benefit \Vas to he derh' cases of V:(-nmin Hi and iron deficiencies, had to be administered over a considerable period;

(2) RCjJresented falsely that daily consumption of the vitamins and minerals contained iu the preparation would effectively promote tbe removal of poisons from the blood by the liver and kidneys; and (B) Represented falsely that it \vas effective in relieving muscular pain and stiff joints, and constituted a competent and effective treatment for tired weak and rundown conditions, loss of pep or energy, lack of vitality, irriconsti- tability, ncrvousncss, sleeplessness, lack of appetite, underweight, pation, indigestion, hearth urn, high and low blood pressure, kidney and , nutritional heart troublc, arthritis, rheumatism, deficiency of red blood iron or liver anemia, cong. , colds, and other deficiency ailments: Held 'l' hat such acts and practices were aU to tile prejudice and injury of the jJuhlic, and constituted unfair and deceptive acts and practices in commerce. Before Mr. John Lmcis hearing examiner.

MI'. R. P. Bellinge7' for the Commission. DECISION OF THE CO::DIJSSION Pursuant to Rule XXII of the Commission s Rules of Practice, and as set forth in the Commission s "Decision of the Commission and " dated .July 19 1953, the initial Order to File Report of Compliance 112 FEDERAL TRADE COMMSSION DECISIONS Findings 50 F. T. C.

decision in the instant matter of hearing examiner John Lewis, as set out as follows, became on that date the decision of the Commission. INITIAL DECISION BY JOHN LEWIS, HEARING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on June 30, 1952, issued and subsequently served its complaint in this proceeding upon the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said Act. After respondents filed their answer in this proceeding, a stipulation was entered into between them and Robert P. Bellnger attorney in support of the complaint, wherein it was agreed that the stipulation as to the facts therein set forth should constitute the entire facts in this proceeding and serve as the basis for findings of fact and an ensuing order, subject to the limitation that said order would not exceed the scope and limitations prescribed by the United States Court of Appeals for the District of Columbia in Alberty et al Federal Trade Commission 182 F. 2d 36. Thereafter this proceeding regularly came on for final consideration by the above-named hearing examiner, theretofore duly designated by the Commission upon the complaint, the answer, and the aforesaid stipulation, said stipulation having been approved as affording the basis for an appropriate disposition of this proceeding and made a part of the record of this proceeding by the hearing examiner, who, after duly considering the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom, and order:

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondents Thomas D. McBryde, Joe T. Pilcher and Perry Elliott are copartners trading in the name of The B- Vimm Company, having th!)ir principal place of business at 101 Broad Street in Selma, Alabama. The business address of respondents Thomas D. McBryde and Joe T. Pilcher is the same as the firm s address in Selma Alabama. The address of respondent Perry Elliott is 1503 Twentythird A venue, Meridian, Mississippi.

PAR 2. Respondents are now, and for more than a year last past have been, engaged in the business of selling and distributing a drug preparation, as "drug" is defined in the Federal Trade Commission Act. The designation used by respondents for said preparation which is a liquid, and the formula and directions for use thereof, are as follows:

_ __ __ __ THE B-VIMM CO. 113 111 Findings Designation: B-Vimm.

Formula for one fluid ounce:

errous Gluconate---- ------- 6. 7 Grs. Calc. Hypophos_ o_---- -- 4.1 Grs. Manganese Citrate, 80L_-___-------- --- 0.49 Gr. Copper Proteinate------------ . 0.025 Gr. ---- 0.352 Gr. Citric Acid---- Propylene Glycol__--___ - 10.68 Minims 'l' biamine Hydrochloride_----- -- 7.92 Miligrams Ri hofia vin-----_---- - 1.43 Miligrams Niacinamide-- ----- 8.60 Miligrams Liver Fraction #L_ --- 0.109 Grain Yeast Extract------- - 0.109 Grain Butyl ParasepL___ ---- 0.060 Grain Methyl ParasepL_ - 0.152 Grain Hydrochloric Acid, Con-_------------ ------ 0.0018 cc Saccharin Soluble---- ----- 0.15 Grain OarameL_- ----- 5.62 Minims . 0.19 Minim Sweet Oran/(e------- Benzaldebyde-------- ------ 0.09 Minim Water q. s. ad-___------ _. 1 In Oz. Directions: Adults-One tablespoonful three times daily before meals. Children-One teaspoonful three times daily or as directed by the physieian.

PAR. 3. Respondents cause the said preparation, when sold, to be transported from their place of business in the State of Alabama, or from the place of business of the manufacturers of said preparation in the State of Alabama, to purchasers thereof located in various other States of the United States. Respondents maintain, and at all times mentioned herein have maintained, a course of trade in said preparation in commerce between and among the various States of the United States. Respondents' volume of business in commerce in said preparation is and has been substantial.

PAR. 4. In the cour e and conduct of their aforesaid business respondents ubseqllent to March 21, 1938, have disseminated and are now disseminating, and have caused a.nd are now causing the dissemination of advertisements concerning their said preparation by the United States mails and by various means in commerce, as "commerce" is defined in the Federal Trade Commission Act, including, but not limited to, advertisements inserted in newspapers and magazines of general circulation, by means of radio continuities and in circulars andleafJets, for the purpose of inducing, and which are and were likely to induce, directly or indirectly, the purchase of said preparation; and respondents have also disseminated and are now causing the dissemination of advertisements concerning their said preparation by the aforesaid means for the purpose of inducing, and which are and were likely to induce, directly or indirectly, the purchase of their said preparation in commerce, as aforesaid. PAR. 5. Through the use of said advertisements, respondents represented, directly and by implication, that B-Vimm is a vitamin, liver :iron and mineral dietary supplement; that it contains all the essen- 403443-57- 50 F. T. G. Findings tial vitamins and minerals and is a competent and effective treatment deficien-for all diseases or conditions caused by vitamin or mineral cies; that the daily consumption of the vitamins and minerals contained in B-Vimm will effectively promote the removal of poisons. gives fast re-from the blood by the liver and kidneys; that B- Vimm lief, is effective in relieving muscular pain and stiff joints and conweak and run-stitutes a competent and effective treatment for tired, down conditions, loss of pep or energy, lack of vitality, irritability, constipa-nervousness, sleeplessness, lack of appetite, underweight, tion, indigestion, heartburn, high blood pressure, low blood pressure kidney trouble, heart trouble, arthritis, rheumatism, deficiency of red blood, nutritional iron or liver anemia, coughs, colds and other diseases caused by deficiencies of vitamins and minerals. PAR. 6. The aforesaid statements and representations are misleading in material respects, and constitute "false advertisements" as that truth andterm is defmed in the Federal Trade Commission Act. In in fact, while 13-Vimm, taken as directed, supplies many times the , it sup-adult minimum daily requirements of Vitamin B1 and iron requirements of B2 and niacinamide.plies only the minimum daily It does not supply the minimum daily requirements of calcium or or suchphosphorus, nor does it supply iodine, a required mineral, H6 and 1312, or the anti-anemia factor essential vitamins as A, C, D, of liver. Said preparation cannot therefore be properly characterized as an adequate vitamin and mineral dietary supplernent and is deficiency or of no value in the treittment of any vitamin or mineral of conditions resulting therefrom other than H1 and iron deficiencies. in the infrequent cases of 13- Vinnn will not give faff relief, and, Vitamin 131 and iron deficiencies which occur, if any benefit is to be delived from taking said preparation, it nlUst be administered over a considerable period of time. It has no value in causing any organ to remove, or assisting auy organ in removing, poisons from the blood nor is iL of value in relieving muscular pain or stiff joints, in the treatment of high blood pressure, low blood pressure, heart trouble, kidney trouble, arthritis, rhenmatism, coughs or colds. The term "liver anemia" has no meaning medically, and respondents' preparation has no value in the treatment of anemia, except iron deficiency anemia. Vimm possesses no value in the treatment of tired, weak or rundown conditions, loss of pep or energy, lack of vitality, irritability,. nervousncs", sleeplessness, lack oj' appetite, underweight, constipation deficiency disease" indigestion, heartburn, deficiency of red blood or otherwj"e, except in those infrequent Ci,ses where "uch symptoms, eon- (1itial1 or diseases result from Vitamin 131 or iron deficiencies. u,. 7. The use by respond('nts of the foregoing false and misleading ,, a:emellts and representations contained in said advertisements THE B-VIMM CO. 115 111 Order tendency to mislead and de-has had and now has the capacity and ceive 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 said preparation because of such erroneous and mistaken belief.

PAR. 8. The complaint alleges that respondents' advertising is misleading in a further material respect. However, since said allegation is not covered by the stipulation as to the facts entered into herein and no proof was oflered in support thereof, said allegation will be dismissed.

CONCLUSION The acts and practices of the respondents, as herein found, 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 Tralle Commission Act.

ORDER It is ordered That the respondents Thomas D. McBryde, .Toe T. Pilcher and Pelts Elliott. individually and as copartners trading under the name of The B-Vimm Company, OJ' under any other name their agents, representatives and employees, directly or through any corporate or other device, in connection with the sale or distribution of their preparation designated B- Vimm, or any other preparation containing substantially similar ingredients or possessing substantially similar properties, whether sold under the same name OJ' ally ot her name, do fortlnvith cease and desist from: 1. Disseminating or causing to be disseminated any advertismneJlt by means of the lJnited States mails, OJ' by any lneans in commerce, as commerce" is defined in the Federal Trade Commission Act, which advertisement represents, directly OJ' by impljea1 ion: (a. ) That B- Vimm constitutes an a(lequate vii amin, liver, or mineral dietary supplement;

(b) That respondents preparation contains all the essential vitamins and minerals, or that it has any value in treating any vitamin or mineral deficiency or conditions resulting therefrom, other than Vitamin Bl or iron deficiencies;

(c) That said preparation will give fast relief from any physical disorders or symptoms;

(d) That said preparation has any value in causing any organ to remove, or assisting any organ in removing, poisons from the blood; (e) That said preparation has any value in relieving muscular pain or stiff joints, or in the treatment of high blood pressure, lo\v blood , Order 50 F. T. C.

pressure, heart trouble, kidney trouble, arthritis, rheumatism, coughs colds liver anemia" or pernicious anemia; (f) That said preparation possesses any value in the treatment of tired, weak or rundown conditions, loss of pep or energy, lack or vitality, irritability, nervousness, sleeplessness, lack of appetite, underweight, constipation, indigestion, heartburn, deficiency of red blood or any other symptoms or conditions resulting from vitamin or mineral deficiency, unless such representation be expressly limited to cases where such symptoms or conditions are due to Vitamin 131 or iron deficiencies;

2. Disseminating or causing to be disseminated by any means for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase of said preparation in commerce, as "commerce is defined in the Federal Trade Commission Act, any advertisement which contains any of the representations prohibited in Paragraph 1 above.

It i8 further ordered That with respect to the issues raised by the complaint other than those to which this order rcJates, the complaint , and the same hereby is, dismissed.

ORDER TO FILE REPORT OF COJlIPLIA,,CE I t is ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist Cas required by said declaratory decision and order of July 19, 1953). RUGS OF THE BLIND, INC.) ET AL. 117 Decision