Alex Sales Company

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IN THE MATTER OF ALEX SALES COMPANY ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 'l104, Co?!11Jlahll, Api'. 1958-Decisi, Au.g. 1958 Consent crder requiring sellers in Oklahoma City, Okla., of a preparation known as "Don s Hair Formula " to cease representing falsely in advertising that the great majority of cases of excessive hair fall and baldness are caused by disease of the scalp; that use of their preparation would cure such diseased condition and thereby prevent excessive hair fall and baldness, grow new hair, and cure baldness. 1111'. Anws vV. 1ViUio.,nrs supporting the complaint. 1\111'. Robert D. Allen of Oklahoma City, Okla., for respondents. INITIAL DECISION BY JOHN B. POINDEXTER, HEARING EXAMINER On April 3, 1958, the Federal Trade Commission issued a complaint alleging that Alex Sales Company, a corporation, T. O. \Vhitten Darwin Frayer, Gussie Singleton and Faye Whitten individually and as officers of Alex Sales Company, hereinafter referred to as respondents, had violated the provisions of the Federal Trade Commission Act by making false, misleading and deceptive statements and representations in advertisements concerning their product " Don s Hair For:iTIula" which they sell and distribute.

After issuance and service of the complaint, the respondents their counsel, and counsel supporting the complaint, entered into an agreement for a consent order. The order disposes of the matters complained about. The agreement has been approved by the director and assistant director of the Bureau of Litigation. The pertinent provisions of said agreement are as follows: Respondents admit all .i urisdictional facts; the complaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaint and the agreement; respondents waive the requirement that the decision must contain a statement of findings fact and conclusions of law; respondents waive further procedural Order 55 F.

steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance \with the agreement and the signing of 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.

The undersigned hearing examiner having considered the agreement and proposed order and being of the opinion that the acceptance thereof will be in the public interest, hereby accepts such agreement, makes the following jurisdictional findings, and issues the following order:

JURISDICTIONAL FINDINGS 1. Respondent Alex Sales Company is a corporation existing and doing business under and by virtue of the laws of the State of Oklahoma, with its office and principal place of business located at 2816 NW. 19th Street, Oklahoma City, Okla. 2. Respondents T. O. Whitten, Darwin Frayer, Gussie Singleton, and Faye Whitten are individuals and officers of the said corporate respondent, serving respectively as president, vice president, secretary and treasurer, with their office and principal place of business located at the same place as that of the corporate respondent.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER It is ordel' That the respondents Alex Sales Company, a corporation, and its officers, and T. O. Whitten Darwin Frayer Gussie Singleton, and Faye vVhitten, individually and as officers of said corporation, and their representatives, agents and employees, directly or through any c.corporate or other device, in connection with the offering for sale, sale or distribution of Don s Hair Formula or any other cosmetic or medicinal preparation for use in the treatment of disorders of the hair and scalp, do forthwith cease and desist from directly or indirectly: 1. Disseminating or causing to be disseminated by means of the United States mails, or by any means in commerce, as "com- ALEX SALES COMPANY ET AL. 241 239 Decision merce " is defined in the Federal Trade Commission Act, any advertisement which represents, directly or by implication: (a) That diseased scalp conditions are a major cause of excessive hair fall or baldness or misrepresenting in any manner the extent to which diseased scalp conditions may be a cause of excessive hair fall or baldness.

2. Representing that the use of respondent' s preparation alone or in conjunction with any method or treatment will: (a) Prevent excessive hair fall or baldness or cause the growth of new hair unless such representations are expressly limited to cases other than those known to dermatologists as male pattern baldness, and unless the advertisement clearly and conspicuously reveals that the great majority of cases of excessive hair fall and baldness are of the male pattern type and that in such cases the use of respondents' product will not be of value in preventing excessive hair loss, preventing baldness or in growing new hair. (b) Cure dandruff or have any beneficial effect upon dandruff in excess of the temporary removal thereof. 3. Disseminating or causing the dissemination by any means, any advertisement for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase of respondents preparation, in commerce, as commerce is defined in the Federal Trade Commission Act, which advertisement contains any of the representations prohibited by paragraphs 1 and 2 hereof or which fails to comply \with the affirmative requirements of paragraph 2 (a) hereof.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Prac- , on the tice, the initial decision of the hearing examiner shall 28th day of August 1958, 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 \;llriting setting forth in detail the manner to ceaseand form in which they have complied with the order and desist.

Decision 55 F.