Charles J. Braun

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

In the Martrer oF CHARLES J. BRAUN AND ROSE MARIE WITT TRADING AS RENNEL SALES ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6692. Complaint, Dec. 18, 1956—Decision, Dec. 18, 1957 Order requiring sellers in Detroit, Mich., to cease representing falsely in advertisements in newspapers—prepared mainly from solicited testimonial letters, writers of which were given free bottles of the product—that their preparation “Rennel Concentrate,” essentially a Jaxative, constituted an effective treatment for obesity and would greatly reduce weight. Mr. John W’. Brookfield, Jr., supporting the complaint. Boggs, Boggs & Boggs by Mr. Ralph S. Boggs of Toledo, Ohio, for respondents.

INITIAL DECISION BY JOSEPH CALLAWAY, HEARING EXAMINER Formal complaint, issued December 13, 1956, charged respondents with disseminating and causing the dissemination through the United States mails and in commerce of false advertisements for a drug preparation called Rennel Concentrate. The allegations of the complaint in effect charge violation of section 12(a)(1) of the Federal Trade Commission Act which is, by section 12(b), made an unfair or deceptive act or practice within the meaning of section 5. After service of the complaint, answer was filed by respondents. Hearings were held pursuant to notice and agreement of counsel in Toledo, Ohio, Detroit and Ann Arbor, Mich., at which respondent Charles J. Braun was present and both respondents were represented by counsel, who participated in the hearings and who was afforded full opportunity to be heard, to introduce evidence pertinent to the issues, and to examine and cross-examine witnesses. Proposed findings as to the facts, conclusions and orders were submitted by all parties.

The facts found, the conclusions reached and the order entered herein are based upon the entire record and hearing the testimony. All findings as to the facts, conclusions and orders proposed by all parties hereto not adopted and included in this initial decision are specifically rejected.

FINDINGS AS TO THE FACTS AND CONCLUSIONS Respondents Charles J. Braun and Rose Marie Witt are copartners trading in the name of Rennel Sales and located in that business at 2440 Fenkel Street, Detroit, Mich.

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649 2260 1306 489 -1 4 1 4 5 1 0 692 2260 1262 45 -1 5 1 4 5 1 1 692 2265 132 40 96.430756 During5 1 4 5 1 2 843 2265 57 31 96.430756 thes 1 4 5 1 3 918 2264 114 41 96.471901 periods 1 4 5 1 4 1051 2263 35 33 96.960526 of5 1 4 5 1 5 1104 2264 82 32 96.540253 times 1 4 5 1 6 1203 2263 222 41 96.133400 respondents5 1 4 5 1 7 1444 2263 87 31 96.865135 have5 1 4 5 1 8 1549 2262 85 32 96.883026 been5 1 4 5 1 9 1652 2262 34 31 95.607315 in5 1 4 5 1 10 1707 2260 65 33 96.501213 this5 1 4 5 1 11 1791 2260 163 39 96.642708 business,4 1 4 5 2 0 651 2311 1303 45 -1 5 1 4 5 2 1 651 2316 80 40 96.956131 they5 1 4 5 2 2 748 2316 88 31 96.634224 have5 1 4 5 2 3 852 2315 115 41 96.203339 placed5 1 4 5 2 4 985 2325 37 21 96.949135 or5 1 4 5 2 5 1039 2314 121 33 96.907524 caused5 1 4 5 2 6 1178 2313 281 32 96.345665 advertisements5 1 4 5 2 7 1477 2312 34 32 93.287361 of5 1 4 5 2 8 1528 2311 128 33 92.521278 Rennel5 1 4 5 2 9 1674 2311 227 32 96.548424 Concentrates 1 4 5 2 10 1920 2314 34 27 96.548424 to4 1 4 5 3 0 651 2360 1304 47 -1 5 1 4 5 3 1 651 2367 41 31 95.871948 be5 1 4 5 3 2 706 2365 117 42 95.871948 placed5 1 4 5 3 3 837 2364 86 33 96.371979 from5 1 4 5 3 4 938 2365 81 31 96.580444 times 1 4 5 3 5 1034 2369 36 27 96.869423 to5 1 4 5 3 6 1085 2364 81 31 96.087471 times 1 4 5 3 7 1180 2364 34 31 96.087471 in5 1 4 5 3 8 1228 2367 41 28 96.846870 425 1 4 5 3 9 1285 2363 91 40 96.690598 daily5 1 4 5 3 10 1391 2373 222 31 96.908226 newspapers,5 1 4 5 3 11 1629 2361 171 40 96.804039 including5 1 4 5 3 12 1816 2361 58 31 93.302345 thes 1 4 5 3 13 1888 2360 67 31 92.944260 De-4 1 4 5 4 0 651 2410 1304 43 -1 5 1 4 5 4 1 651 2416 81 32 91.014626 troit5 1 4 5 4 2 756 2416 99 31 96.720734 News5 1 4 5 4 3 880 2415 66 32 96.413704 ands 1 4 5 4 4 969 2414 137 32 96.809822 Detroit5 1 4 5 4 5 1129 2415 124 38 96.371025 Times,5 1 4 5 4 6 1278 2414 66 32 96.530441 ands 1 4 5 4 7 1369 2414 95 31 96.368309 three5 1 4 5 4 8 1486 2412 127 40 96.373535 weekly5 1 4 5 4 9 1637 2421 210 31 91.861618 newspapers5 1 4 5 4 10 1871 2410 84 40 91.861618 pub-4 1 4 5 5 0 649 2461 1306 44 -1 5 1 4 5 5 1 649 2466 106 32 96.853317 lished5 1 4 5 5 2 777 2466 33 31 96.268562 in5 1 4 5 5 3 834 2466 57 31 96.530518 thes 1 4 5 5 4 913 2465 96 32 96.410149 States 1 4 5 5 5 1030 2465 35 32 96.694786 of5 1 4 5 5 6 1087 2464 184 41 96.202888 Michigan.5 1 4 5 5 7 1319 2464 72 31 96.168556 Thes 1 4 5 5 8 1414 2474 86 30 96.743034 copy5 1 4 5 5 9 1522 2463 52 31 96.547348 for5 1 4 5 5 10 1596 2463 58 31 96.547348 thes 1 4 5 5 11 1675 2461 280 33 96.784172 advertisements4 1 4 5 6 0 650 2511 1305 46 -1 5 1 4 5 6 1 650 2528 36 21 96.510506 so5 1 4 5 6 2 703 2517 117 40 96.872826 placed5 1 4 5 6 3 837 2527 37 21 97.000290 or5 1 4 5 6 4 890 2515 120 33 96.100334 caused5 1 4 5 6 5 1028 2520 36 27 97.004654 to5 1 4 5 6 6 1081 2515 41 32 96.812927 be5 1 4 5 6 7 1138 2515 118 41 96.744270 placed5 1 4 5 6 8 1273 2515 34 31 96.439056 in5 1 4 5 6 9 1325 2515 58 31 96.500946 thes 1 4 5 6 10 1399 2525 211 29 96.856323 newspapers5 1 4 5 6 11 1623 2513 27 32 96.925652 is5 1 4 5 6 12 1663 2512 163 42 94.868385 prepared5 1 4 5 6 13 1838 2512 45 39 96.872955 by5 1 4 5 6 14 1898 2511 57 31 97.018631 thea 1 4 5 7 0 650 2561 1304 47 -1 5 1 4 5 7 1 650 2567 204 41 96.608826 respondents 1 4 5 7 2 874 2566 136 32 96.311401 Charles5 1 4 5 7 3 1030 2566 31 32 96.374985 J.5 1 4 5 7 4 1082 2565 114 31 96.213554 Braun5 1 4 5 7 5 1218 2565 96 40 96.822220 using5 1 4 5 7 6 1336 2569 150 36 96.214058 excerpts5 1 4 5 7 7 1506 2564 87 31 96.214058 from5 1 4 5 7 8 1614 2561 204 33 96.504486 testimonials 1 4 5 7 9 1838 2561 116 31 96.742142 letters4 1 4 5 8 0 650 2611 1305 46 -1 5 1 4 5 8 1 650 2617 134 31 96.727936 written5 1 4 5 8 2 800 2622 34 26 96.037552 to5 1 4 5 8 3 850 2616 218 41 96.037552 respondents5 1 4 5 8 4 1084 2615 45 41 96.765633 by5 1 4 5 8 5 1144 2626 91 21 96.506477 users5 1 4 5 8 6 1252 2614 34 32 96.731003 of5 1 4 5 8 7 1303 2615 56 31 96.447449 thes 1 4 5 8 8 1373 2614 227 41 95.791008 preparation.5 1 4 5 8 9 1648 2614 108 30 95.256241 Those5 1 4 5 8 10 1771 2612 74 31 96.427895 who5 1 4 5 8 11 1861 2611 94 31 89.204247 write4 1 4 5 9 0 652 2663 1302 43 -1 5 1 4 5 9 1 652 2668 57 31 96.963272 thes 1 4 5 9 2 728 2666 220 32 96.129898 testimonials5 1 4 5 9 3 968 2677 54 21 96.324043 ares 1 4 5 9 4 1040 2666 99 40 96.837982 given5 1 4 5 9 5 1159 2677 19 20 96.548767 a5 1 4 5 9 6 1196 2665 63 31 96.678413 few5 1 4 5 9 7 1278 2665 125 32 96.204842 bottles5 1 4 5 9 8 1423 2665 34 31 96.204842 of5 1 4 5 9 9 1477 2665 58 30 96.700859 thes 1 4 5 9 10 1553 2664 214 40 96.022774 preparations 1 4 5 9 11 1786 2663 34 30 96.711205 in5 1 4 5 9 12 1840 2667 114 25 96.275543 return4 1 4 5 10 0 651 2715 1157 34 -1 5 1 4 5 10 1 651 2719 52 30 96.803070 for5 1 4 5 10 2 719 2718 85 31 96.739670 theirs 1 4 5 10 3 820 2717 114 32 96.848190 letters5 1 4 5 10 4 950 2716 26 32 96.428673 if5 1 4 5 10 5 992 2716 86 32 95.849243 theirs 1 4 5 10 6 1093 2727 114 20 96.492477 names5 1 4 5 10 7 1225 2727 55 19 96.717812 ares 1 4 5 10 8 1297 2716 80 30 95.655083 used5 1 4 5 10 9 1394 2716 34 30 96.342789 in5 1 4 5 10 10 1447 2715 56 31 96.342789 thes 1 4 5 10 11 1520 2715 288 31 96.347374 advertisements. RENNEL SALES. 727 725 Findings Typical of the testimonials contained in respondents’ said advertisements are the following:

“T started taking Rennel Concentrate three and one-half months ago weighing 220 pounds. Up to now I have lost 45 pounds and feel a lot better. I eat as as much as I did before I started taking Rennel. Not only have I lost weight but I also lost 4 inches at the waist. I know Rennel is doing mea lot of good. All this has been done with just a few bottles of Rennel and I will continue to take it until I reach my correct weight,” so writes Joe Diguard, Box 141. (Com. Ex. 14) “My doctor wants me to weigh 145 pounds and I think I will make it soon’’ writes Mrs. Mary Allen 5553 French Road, Detroit 18, Michigan. ‘I would like to tell you how much J like Rennel Concentrate, because with it I have lost 25 pounds in three months. My weight has gone from 197 to 172 and I am still losing weight regularly, several pounds a week. I am telling all my friends. about Rennel since it is the only thing that helps me.” Thousands have found this amazing simple home recipe the safe economical no diet way to reduce * * *, (Com. Ex. 17) The placing, scheduling and billing of the newspaper advertising copy prepared by respondent Charles J. Braun has been handled by the Miller Advertising Co. of Toledo, Ohio. The advertising company has, at the direction of respondents, arranged the placing and scheduling of these ads in the newspapers in Michigan having a relatively large circulation on an average of three times a week and less often in newspapers having a relatively small circulation. Particular reference is made to the circulation of two Detroit, Mich., papers in which respondents’ advertising appeared. The Detroit News, a daily newspaper of general circulation published in the city of Detroit, Mich., during a period respondents’ said advertising appeared therein, from April 1, 1954, to March 31, 1955, had a total average daily circulation of 532,659, including 844 copies sent to subscribers through the United States mails and 9,166 copies sent to out of the State subscribers. The Detroit Times, a daily newspaper of general circulation published in the city of Detroit, Mich., during a period of time respondents’ said advertising appeared therein, from April 1, 1954, to March 31, 1955, had total average daily circulation of 592,178 copies including 1,672 copies sent to subscribers through the United States mails and 13,638 copies sent to out of the State subscribers. The circulation of each of these newspapers for the 12 months’ period following the period mentioned was approximately the same as the circulation given, and during that period of time respondents’ said advertising was carried.

On the above state of facts, the finding is made that respondents have disseminated and caused the dissemination by United States mails and in commerce of advertisements for the purpose of inducing Findings 54 F.T.C.

and which were likely to induce, directly or indirectly, the purchase of Rennel Concentrate, which is a drug within the intent and meaning of section 12 (a)(1) of the Federal Trade Commission Act. Through the use of said newspaper advertisements respondents have represented, directly and by implication, that Rennel Concentrate constitutes a competent and effective treatment for obesity and will greatly reduce weight.

It was agreed between counsel on the record that the product involved in this proceeding and its directions for use are the same as the product involved in a companion case, Rennel Products, et al., docket No. 6691. Also counsel for respondents in both proceedings being the same it was agreed on the record that the direct ‘and cross-examination of the expert medical witnesses to be offered in support of the allegations of the complaint, would be along the same line and one hearing for receiving such testimony would suffice. Accordingly, the hearing examiner directed on the record that there be only one hearing held to receive such testimony and that copy of the proceedings at that hearing go into the official record and become a part thereof in docket No. 6691 and in this proceeding. At such hearing, held by agreement of the parties and order of the hearing examiner in Ann Arbor, Mich., on Apmil 25, 1957, tavo medical experts appeared and testified. They were Dr. Jerome W. Conn and Dr. Henry H. Swain. Their qualifications as experts are in the record. They testified generally on direct examination that obesity is overweight, but if the degree of overweight is less than 20 percent above the average weight it is not usually called obesity; that. they had each seen the formula and directions for use of the product in question; that the effect of the preparation when taken in accordance with directions would be that of a mild laxative; that a laxative is not a competent or effective treatment for obesity or overweight and will not reduce obesity or overweight; that the mgredients of Rennel Concentrate taken singly or in combination will not reduce a person’s obesity or overweight; that Rennel Concentrate will not reduce a person's obesity or overweight. Neither doctor had ever taken Rennel Concentrate or prescribed it for any patients nor performed any experiments with this preparation. Both doctors admitted that the effect of a laxative may be to cause a runny stool, in which event a person’s weight is temporarily reduced by the weight of water or liquid so removed from the body, but that upon loss of any significant amount of body fluid the person would become thirsty and rapidly replace the weight loss so caused by an equal or approximately equal intake of fluid. Both RENNEL SALES 729 725 Findings such weight loss and the reversal would happen in a matter of hours. Reduction of obesity or overweight to be of any significance means not a loss of body fluids, but a loss of fatty tissues which have been built up in the body over a period of time by a greater intake of calories in food than the body has used up in the expenditure of energy. Such excess of calories is deposited in the body as fat. The only way to reduce the fatty tissues in the body is to reverse the process and cut down the intake of calories to a point where the calories used by the body in expenditure of energy over a period of time is less than the intake. When this happens the store of fat in the tissues is used up by the body to replace the deficiency in intake of calories. This does not mean that the reduction of fatty tissues will be permanent. Fat will again be stored in the body and one’s weight will increase again any time the intake of calories over a period of time exceeds those used by the body in the expenditure of energy. There are certain drugs that are recognized as assisting in cutting down the ratio between the intake of calories and those used by the body, but Rennel Concentrate does not contain any of them. The testimony in opposition to that. of the medical experts mentioned consisted of six users of Rennel Concentrate who testified to losing from 23 pounds to 82 pounds over varying periods of time while taking Rennel Concentrate according to directions. Such weight losses, they testified, were maintained by them for months after stopping the use of the preparation. None of them had kept any records. There was no medical testimony to the effect that the weight loss by them should be attributed to the use of Rennel Concentrate. The testimony of users as to the beneficial results derived by them from the use of a medicinal preparation is of little value and expert testimony is to be preferred over that of lay witnesses.1. Indeed, the qualifications and background of the experts who testified in support of the allegations of the complaint, their knowledge of the subject, their frank answers and explanations, and their general demeanor on the stand make their testimony preponderate overwhelmingly on the point that Rennel Concentrate is not a competent or effective treatment for obesity or overweight.

The testimonials used in respondents’ advertising refer to loss of weight of 45 pounds and other amounts so large that they could not. possibly be the result of loss of liquids by the body. Also the testimonials refer to continuing loss of weight over a number of months while taking Rennel Concentrate. This also is proof of the fact that the weight loss referred to in the advertising was a loss of fatty tissue 1 Elliott v. Frisk, 58 F, 2d 820, 825; Failey v. Heininger, 105 F. 2d 79, 84; Kay v. F.T.C., 845 FP. 2d 160, Decision 54 INT.C.

rather than loss of liquids which would be replaced within a few hours. It is therefore found that the advertising was false advertising within the meaning of section 12(a)(1) of the Federal Trade Commission Act.

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.

ORDER It ws ordered, That respondents Charles J. Braun and Rose Marie Witt, individuals and copartners trading as Rennel Sales, or under any other name, and respondents’ agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of the preparation designated as Rennel Concentrate or of any other preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same name or names, or any other name, do forthwith cease and desist from, directly or indirectly: 1. Disseminating or causing to be diseminated 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 by implication: (a) That said preparation constitutes a competent or effective treatment for obesity.

(b) That said preparation will reduce the weight of the user. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE This matter having come on to be heard by the Commission upon its review of the hearing examiner’s initial decision filed on October 2, 1957, and the Commission having determined that said initial decision is adequate and appropriate in all respects to dispose of this proceeding:

It 1s ordered, That the aforesaid initial decision be, and it hereby is, adopted as the decision of the Commission. It is further ordered, That the respondents, Charles J. Braun and Rose Marie Witt, 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 contained in said initial decision. RIVIERA PACKING CO. ET AL. 731 Complaint