Joseph J. Pinkus

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

IN THE MATTER OF JOSEPH J. PINKUS DOING BUSINESS AS PRACTICAL RESEARCH COMPANY, ETC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7177. Complaint, June 1955-Decision, Oct. , 1958 Consent order requiring the distributor of " 12" reducing preparation to cease representing falsely in advertising in newspapers, magazines, etc., that such product was safe to use by a11 obese persons and enabled them to Jose weight without dieting and to Jose a certain number of pounds in a given period.

M1' . lI.foTton Nes?nith and Mr. Be?Ty'ma:n Davis for the Commission.

Fast Fast by 1'.1. Herm,an L. Fast of Newark, N. , for respondent.

INITIAL DECISION BY EVERETT F. HAYCRAFT HEARING EXAMINER On June 27 , 1958, the Federal Trade Commission issued its complaint against the above-named respondent, charging him with the use of an unfair and deceptive act and practice in commerce in violation of the provisions of the Federal Trade Commission Act in the dissemination of false advertisements of a drug preparation designated " 12. " In lieu of. submitting answer to said complaint, the respondent entered into an agreen1ent for consent order with counsel supporting the complaint disposing of all the issues in this proceeding in accotdance ,with Section 3. 25 of the Rules of Practice and Procedure of the Commission, which agreement has been duly approved by the Bureau of Litigation. By the terms of said agreement, the respondent admitted all the jurisdictional facts alleged in the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Respondent in the agreement expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all of the rights may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement. It ,vas further provided that said agreement, together with the complaint Order 55 F.

shall constitute the entire record herein; 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 the respondent that he has violated the law as alleged in the complaint. The agreement also provided that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if entered after a full hearing; that it may be altered, modified or set aside in the manner provided for other orders; and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration by the hearing examiner on the complaint and the aforesaid agreement for consent order, and it appearing that said agreement provides for an appropriate disposition of this proceeding, the aforesaid agreement is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice; and in consonance with the terms of said agreement, the hearing examiner makes the following jurisdictional findings and order: 1. Respondent Joseph J. Pinkus is an individual doing business as Practical Research Company and as Practical Research K- Company, with his office and principal place of business located at 403 :Market Street, Newark, N.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Federal Trade Commission Act and this proceeding is in the interest of the public. ORDER It is onle1'ed That respondent, Joseph J. Pinkus, and individual doing business as Practical Research Company and as Practical Research K-12 Company, or under any other trade name or names, and respondent's representatives, agents or employees, directly or through any corporate or other device, in connection \with the offering for sale, sale or distribution of the preparation , or any other preparation of substantially similar composition or possessing substantially similar properties, \vhether sold under the same name or any other name, do forthv;ith cease and desist from, directly or indirectly:

1. Disseminating or causing to be disseminated any advertise- PRACTICAL RESEARCH CO., ETC. 553 551 Decision ment 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 indirectly:

(a) That said preparation is safe to use by all obese persons; (b) That obese persons can lose weight by the use of said preparation without dieting and while eonsuming the same kinds and amounts of food as they ordinarily consume; (c) That any predetermined weight reduction can be achieved by the taking or use of said preparation for a prescribed period of time.

2. Disseminating or causing the dissemination of any advertisement 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 said preparation, which advertisement contains any of the representations prohibited in paragraph 1 hereof. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practiee, the initial decision of the hearing examiner shall, on the 11th day of October 1958, become the decision of the Commission; and, accordingly:

It is ordered That the respondent herein shall, within sixty (60) days after service upon him of ,this order, file \with the Commission a report in writing, setting forth in det~il the manner and form in which he has complied with the order to cease and desist.

Decision 55 F.