Volverine Laboratories, Inc.

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IN THE MATTER OF "VOL VERINE LABORATORIES, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6829. Complaint, July 8, 1957-Dec.ision, Oct. 125, 1957 Consent order requiring distributors in Detroit, Mich., to cease representing falsely through advertising mats furnished to dealer-purchasers-in payment for use of which in advertising they participated-and through display cards and circulars also fumished for dealers' use, that their preparation "Alpha Tablets" constituted an effective treatment for aU kinds of arthritis, rheumatism, neuritis, and neuralgia, and afforded complete and permanent relief from the pains and discomforts thereof; that it was a new discovery and a new medicine; that the alfalfa ingredient was of value in such treatment; and through use of the words "Manufacturers and "Laboratories" on stationery and in advertising literature, that they manufactured the product.

E.larolcl A. llennedy, Esq. , for the Commission. Respondents, pto se.

INITIAL DECISION BY JOSEPH GALLAWAY, I-learing EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on July 8 , 1057, charging them with having violated the Federal Trade Commission Act as set forth in said complaint. After issuance and service of the complaint, all respondents e.entered into an agreement, dated August 5 , 1957, containing a consent order to cease and desist, disposing of all the issues in this proceeding without hearing, which agreement has been duly approved by the Director and the Assistant Director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein for h.is consideration in accordance with Section 3.25 of the Hules of Practice of the Commission.

Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreement further provides that respondents waive an further procedural steps before the hearing exnminel' or the Commission, including the making of findings of fact or conclusions of law and the right to 472 FEDERAL 'I'TRADE COMMISSION DECISIONS Order 54 F. T. C.

challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, that the agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission, that said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint, that said order to cease and desist shall have the same force and effect as if entered after a full hearing and may be altered, modified or set aside in the manner provided for other orders of the Commission and that the complaint may be used in construing the terms of the order. This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order and it appearing that the agreement and order cover all the allegations of the complaint and provide for appropriate disposition of this proceeding, the order and agreement are hereby accepted :and ordered filed upon becoming part of the Commission s decision pursuant to Sections 3.21 and 3.25 of the R.ules of Practice and the hearing examiner accordingly makes the following findings for jurisdictional purposes and order:

1. Respondent 'Volverine Laboratories, Inc. is a corporation existing and doing business under and by virtue of the laws of the State of ::l\fichigan, with its office and principal place of business located at 2454 Fenkel Street, in the City of Detroit, State of ~lichigan. The individual respondents, Lawrence R.. O'Connor and Elaine t Connor, are respectively president-treasurer and vice-presidentsecretary of said corporate respondent and their address is the same as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act. This proceeding is in the public interest.

ORDER I t is once?' That respondents ,YolYerine Laboratories, Inc. , a corporation, and its offcers, and Lawrence R.. O'Connor and Elaine J. O'Connor, individually and as officers of said corporation, and respondents' representatives, agents and employees directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of the preparation "Alpha Tablets , .

WOLVERINE LABORATORIES INC. ET AL 473 471 Order or any preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from directly or indirectly:

I. 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 by implication, that said preparation: (a) Is an adequate, effective or reliable treatment for any kind of ~uihritis, rheumatism, neuritis or neuralgia. (b) Is an adequate, effective or reliable treatment for, or will afford complete or permanent relief the aches, pains or discomforts of any kind of arthritis, rheumatism: neuritis or neuralgia, or has any beneficial effect in any of such conditions or disorders in excess of affording temporary relief of the minor aches and pains thereof.

( e) Is a new discovery or a ne", medicine. (cl) Possesses any value in the treatment of any kind of arthritis rheumatism, neuritis or neuralgia, or in the relief of the aches, pains and discomforts thereof, by virtue of the alfalfa ingredient therein. II. Disseminating or causing to be disseminated any advertisements 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 such preparation which contain any of the representations prohibited in Paragraph 1 of this order.

1 t is fui,their' 07Ylered That respondents ",Volverine Laboratories Inc., a corporation, and its officers: and Lawrence H. O'Connor and Elaine (T. O'Connor, individuany and as officers of said corporation their representatives, agents and employees, directly or through any corporate or other device, in connection with the otTering for sale sale or distribution of Alpha Tablets or any other preparation or prod uct in commerce, as "commerce ~: is defined in the Federal Trade Commission Act, do forthwith cease and desist from: (a) Using the word "Laboratories " or any other word of similar import or meaning, in respondents' corporate name, or representing in nny other manner, that respondents own, operate or control a laboratory.

(b) Hepresenting, directly or by imphcation, through the use words "~lanufac.turers~' or "~Ianufactured/' alone or in conjunction with other '\\01'(18, or in any other manner, that respondents manufacture the products ,,"which they sell or distribute. Decislon 54 F. T. 0.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 25th day of October, 1957, become the decisioi1 of the Commission; and, accordingly :

1 t is ordered That the respondents herein shall within sixty (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 the order to cease and desist. TOPPS CHEWING GUM, INC. 475 Complaint