Lanolje Phoducts, Inc.

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

IN THE MATTER OF LANOLJe PRODUCTS , INC., ET AL.

CQNSBNT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION UF Tile FEDERAL TRADB COMMISSION ACT Docket 7085. Coml)luint, !va?" 19S5-Decision, Aug. 1.' , 1958 Consent order requiring a select' in Detroit, ::ich., of its "Lanole Scalp Treatment Kit" to ('case advertising falsely that its products would prevent excessive hair fall and baldness in the majority of cases and that the principal cause of such conditions was bad scalp hygiene and scalp infection, that the business desig-natecl "Patten Research Institute" had engaged in research in connection with the hair and scalp or its prepara tions, and that it was an institute.

Mr. 1Vlo1'ton Nesmith for the Commission. Mr. Pete,. T. Jumeson of Detroit, Mich. , for respondents. INITIAL DECISIO:- BY WILLIAM L. PACK, HEARING EXAMINER The Commission s complaint in this m"tter charges the respondents with misrepresenting certain cosmetic prepamtions sold by them, the preparations being intended primarily for use in the treatment of the hair and scalp. An agrcement has now been entered into by respondents and counsel supporting the complaint which provides, among other things, that respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall he based shall consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of la\\l in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondents specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified, or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the Jaw as alleged in the complaint.

186 FEDERAL TRADE COMMISSION DECISIO Order 55 F.

The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following ordcr issued:

1. Respondent Lanole Products, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of Michigan, with its offce and principal place of business located at 9611 E. Forest A venue, Detroit, Mich. Respondent A. P. Abbey is the presiC:::t of said corporation, having the same address as the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this procecding and of the respondents, and the proceeding is in the public interest. ORDER It is orcleTecl That the respondents, LanoJe Products, Inc. , a corporation, and its offcers, and A. P. Abbey, individual1!y and as an offcer of said corporation, and their representatives, agents and employees, directly or through any corporate or other device in connection with the offering for sae, sale, or distribution of their various cosmet.ic preparations known as Lanale Anhydrous or Prophylactic Shampoo, Lanole Scalp Lotion, LanoJe Lasco Ointment and Professional Shampoo, or any preparations of substantially similar composition or possessing substantially similar properties, \vhether sold under said names or any other names or any other preparations, do forthwith cease and desist from: 1. Disseminating, or causing to be dissClninated by means of the United States mail, or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, any advertisement. which represents, directly or by implication: (a) That bad scalp hygiene or scalp infections, are the principal or major causes of excessive falling hair or baldness. (b) That the use of respondents' preparations alone, or in any combination, or in conjunction ,,,ith any method of application \vill prevent excessive hair fall or baldness unless such representations be expressly limited to cases other than male pattern baldness and unless it is dearly and conspicuously revealed that the great majority of cases of excessive hair fa1! and baldness are the male pattern type and that in sllch cases respondents' preparations will be of no value.

(c) That the business known as Patten Research Institute has LAN OLE PIWDUCTS, INC., ET AL. 187 185 Decision engaged in research in connection with hair or scalp conditions or in connection with respondents' preparations, or that such business is an institute.

2. Disseminating, or causing to be disseminated, by any means, any advertisement for the purpose of inducing, or which is likely to induce, direcUy of indirectly, the purchase of said preparations in commerce, as "commerce" is defined in the Federal Trade Commission Act, which advertisement contains any of the representations prohibited in paragraph 1 above, or which fails to comply with the affrmative requirements of subparagraph (b) of paragraph 1 hereof.

DECISION OF THE COMMISSION AND ORDER TO FILE HEPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 13th day of August 1908, become the decision of the Commission; and, accordingly:

It 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.

188 FF,DERAL TRADE COMMISSIO~ DECISIONS Complaint 55 F.