Olive Tablet Company

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

In THE MartTrTer oF OLIVE TABLET COMPANY ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 5090. Complaint, Dec. 1, 1948—Decision, Apr. 28, 1960 Consent order requiring the legal successors to the respondents named in the complaint, distributors of “Dr. Edwards’ Olive Tablets,” and their advertising agency, to cease advertising falsely that their said medicinal preparation would increase the flow of bile from the liver and cause the evacnation of bile from the gall bladder, and that it would tone up intestinal muscular action.

Mr. Fletcher G. Cohn supporting the complaint. Mr. EF. B. Kimpel, Jr., of Memphis, Tenn., and Clark, Carr and Ellis of New York, N.Y., for respondents. Initia, Decision By Epwarp Creer, Hrartne Examiner On December 1, 1948, the Federal Trade Commission issued its complaint charging respondents named in the caption hereof with violating the Federal Trade Commission Act by making false and deceptive representations in advertising the product known as “Dr. Edwards’ Olive Tablets.” Thereafter these respondents agreed to discontinue making the representations alleged to be false and deceptive pending final disposition of similar issues in Carter Products, Inc., Docket No. 4970, and they also agreed to execute a stipulation as to the facts based on the facts relating to these issues as would be found by the Commission in the Carter Case. On account: of this agreement, proceedings in this matter have been held in abeyance until this time.

Since the issuance of the complaint all of the outstanding stock of respondent Olive Tablet Company, a corporation, has been acquired by Plough, Inc., a corporation, and Olive Tablet. Company has been dissolved as a corporation. Also during this interval Erwin, Wasey, Ruthrauff and Ryan, a corporation, has become the legal successor to respondent Erwin, Wasey and Company, a corporation.

An agreement has been entered into between counsel supporting the complaint and Plough, Inc., a corporation, and Erwin, Wasey, Ruthrauff and Ryan, a corporation, and their attorneys, in which these two corporations consent that they may be legally bound as successors in interest by the complaint served on their predecessors OLIVE TABLET CO. ET AL. 1333 1332 Order as though the complaint had been served upon them, and they consent that they may be made parties respondent herein. The agreement referred to above with the existing respondents was submitted to the hearing examiner on March 8, 1960. This agreement also provides for the entry of a consent order. Under . the agreement, the respondents admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cease and desist order there set forth may be entered without further notice and have the same force and effect as if entered after a full hearing and the document includes a waiver by the respondents of all rights to challenge or contest the validity of the order issuing in accordance therewith. The agreement further recites that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint.

The hearing examiner finds that the content of the agreement meets all of the requirements of Section 3.25(b) of the Rules of the Commission.

The hearing examiner having considered the agreement and proposed order, and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding, the agreement is hereby accepted, and it is ordered that said agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission. The following jurisdictional findings are made and the following order issued. 1. Respondent Plough, Inc. is a corporation organized and existing under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 3022 Jackson Avenue, Memphis, Tennessee, and is the legal successor to respondent Olive Tablet Company, now dissolved. 2. Respondent Erwin, Wasey, Ruthrauff and Ryan is a corporation existing by virtue of the laws of the State of Delaware, with its office and principal place of business located at 711 Third Avenue, New York, New York, and is the legal successor to respondent. Erwin, Wasey and Company, ® corporation which is no longer in existence.

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 ordered, That the respondents Plough, Inc., a corporation, and Erwin, Wasey, Ruthrauff & Ryan, a corporation (the legal Decision 56 F.T.C.

successors to the Olive Tablet Company, and Erwin, Wasey and Company, which were named as respondents in the original complaint), and their respective officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of the products designated “Dr. Edwards’ Olive Tablets,” or any other product of substantially similar composition or possessing substantially similar properties under whatever name sold, do forthwith cease and desist from:

(1) Disseminating or causing to be disseminated any advertisement by means of the United States mails, or by any other means, in commerce, as “commerce” is defined in the Federal Trade Commission Act, which advertisement represents directly or by implication :

(a) That said preparation will aid in promoting the flow of bile or that it will increase or beneficially influence the formation, secretion or flow of bile from the liver or gall bladder; (b) That said preparation will have any favorable effect on the toning up of any intestinal muscular action; (2) Disseminating or causing to be disseminated any advertisement by any means for the purpose of inducing or is likely to induce, directly or indirectly, the purchase of said products in commerce, as “commerce” is defined in the Federal Trade Commission Act, which advertisement. contains any representation 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 Practice, - the initial decision of the hearing examiner shall, on the 28th day of April, 1960, become the decision of the Commission; and, accordingly:

It ts ordered, That respondents Plough, Inc., a corporation, and Erwin, Wasey, Ruthrauff & Ryan, a corporation (the legal successors to the Olive Tablet Company, and Erwin, Wasey and Company, which were named as respondents in the complaint), 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.

ANCHOR CHEMICAL CO., INC. 1385 Complaint