Staz-Set, Inc.

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

IN THE MATTER OF STAZ-SET, INC., ET AL.

CONSENT ORDER. ETC., IN REGARD TO THE ALLEGED VJOLATIO THE FEDERAL TRADE COMMISSION ACT Dochet 7302. Com.plaint, Nov. 14, %8-Decision, Mar. 10, 195,9 Consent ordN requiring a distributor and its advertising- 3g-ency in New York City to cease representing falsely in advertising' that their rlrug preparation desig-nated " 7 Day Reducel' " was safe for use by an obese persons would cause them to Jose weig"bt without dieting and at specific rates per week and per month, and was approved fol' reducing weight by the U. PubJjc Health authorities.

Mr. Bet1'J?nan Davis for the Commission. Bass Priend of New York, N. , for respondents. INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER The complaint in this matter charges the respondents with misrepresenting a weight reducing preparation advertised and sold by them. An agreement has now been entered into by respondents and cou118eJ supporting the complaint which provides among- other things, that responoents admit al1 of the j urisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shan be based shall consist solely of the complaint anti agree,r!1cnt; that the inclusion of findings of fact and conclusions of la-w in the decision disposing of this matter is waiveo, together with any further procedural steps before the hearing examiner and the Commissian; 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 speeilical1y waiving any and al1 rights to ehal1enge 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 law as alleged in the complaint. 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 Order 55 F.

agreement is hereby accepted, the following jurisdictional findings made, and the following order issued: 1. Respondent Staz-Set, Inc., is a corporation existing and doing business under the laws of the State of New York, with its offce and principal place of business located at 42 West 38th Street, New York, N.Y. Respondents David L. Ratke and Herman Liebenson are offcers of respondent Staz-Set, Inc., and the address of said individual respondents is the same as that of the corporate respondent.

Respondent Parker Advertising, Inc., is a corporation existing and doing business under the iaws of the State of New York with its offce and principal place of business located at 42 West 38th Street, New York, N.

2. 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 respondents, Staz-Set, Inc" a corporation . in-and its offcers and David L. Ratke. and Herman Liebenson dividually and as offcers of said corporation, and Parker Advertising, Inc., and its offcers, 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 7-Day Reducer, or any other preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same name or any other name, do forthwith cease and desist from, directly or indirectly: 1. Disseminating or causing to be disseminated any advertisement by means of the United States mails or by any means.in commerce, as "commerce" is defmed in the Federal Trade Commission Act, which advertisement represents, directly or indirectly, that:

(a) The preparation is safe to use by al1 obese persons; (b) Obese persons can lose weight by use of the preparation without dieting, that is while consuming the same kinds and amounts of food they ordinarily consume; (c) Any predetermined weight reduction can be achieved by the taking or use of said preparation for a prescribed period of time;

(d) United Stales Public Health Authorities approve or en- STAZ-SET, INC., ET AL. 1429 1427 Decision dorse the use of respondents' preparation for the purpose of reducing weight.

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 Pracon thetice, the initial decision of the hearing examiner shall, loth day of March 1959, become the decision of the Commission; and, accordingly:

It iH ordered That 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.

Decision 55 F.