Forrest I. Brodie

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IN THE MATTER OF FORREST 1. BRODIE ET AL. DOING BUSINESS AS BIWCRESS LABORATORIES, ETC.

CONSENT ORDER, ETC. , IN REGARD TO Tile ALLEGED VIOLATION OF Tile FEDERAL TRADE COl\fl\HSSION ACT Docket 8291. Complaint, Mar. 1961-Decision, June, 1961 , toConsent order requiring "hair and scalp specialists" in Louisvile, Ky. cease representing falsely-in newspaper advertisements and to interested persons coming for diagnosis and advice to their visiting- "c1inies" in various cities-that, by use of the preparations in their home treatment kits except in the case of completely bald persons, baldness or excessive hair loss would be completely overcome, and hair would be induced to grow and would become thicker; and by use of the word "Trichologist" , that they had had competent scientific training in the diagnosis and treatment of scalp disorders affecting the air, CO:MPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Forrest I. Brodie and Alberta L. Brodie, individually and as copartners, trading and doing business as Brocress Laboratories, Lesley IIair and Scalp Consultants and Lesley Hair find Scalp Specialists, hereinafter referred to as respondents have violat.ed the provisjons of said Act and it appearing to the Commission that a proceeding by it respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. Hesponclents fue Forrest 1. Brodie and Alberta L. trading and doing business as Brodie, individually and as copartners Brocress Laboratories, Lesley Hair and Scalp Consultants and Lesley BROCRESS LABORATORIES, ETC. 1019 1018 Complaint Hair and Scalp Specialists, with their offce and principal place of business located at 2531 'Vest Broadway, Louisville, Kentucky. PAR. 2. Respondents are now, and for more than one year last past have been, engaged in the business of selling and distributing drug and cosmetic preparations as "drug and "cosmetic" are defied in the Federal Trade Commission Act for external use in the treatment of conditions of the hair and scalp. The respondents cause said preparations to bc transported from their place of business in the Stale of Kentucky to purchasers thereof located in various other States of thc United States. Said respondents maintain, and at all times mentioned herein lutve maintained, a course of trade in said preparations in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 3. Respondents sell and have sold their said preparations the following manner: Respondents, or one of their representatives travel about the United States stopping at various cities where advertisements appear in local newspa.pers inviting persons to callnpon respondents or such representatives, usually in a hotel rOOlll in that locality, for diagnoses and advice. Respondents, or their representatives~ examine the scalp of such persons and, if treatment is recommended and agreed to, sell such persons home treatment kits containing certain of respondents' said preparations. The orders for Quch kits are transmitted to respondents' place of business in Kentucky for processing and the kits are shipped, together with instructions for use therefor, direct to the purchasers at their place of residence.

PAR. 4. Respondents' preparations are prepared in fOllr series each series consisting of four combinations of two preparations each. Each series is a separate kit. Respondents' preparations are and have been composed of the following ingredients: Formulas and Ing1'cdi.ents per Gallon #16 Distilled Water 2 mg, nicotinic acid Contents filtered 10 mI. Philocarpns .Taborandi Distiled water #34 Vegctable colol' added 84 oz. alcohol Contents filtered 38 grams Quinine Hydrochloride 1 c.c. PhiiocarpuR Jaborandi #27 Distiled \Vater 20 grams Tartaric Acid Vegetable color added 7 grams Salic 'li(' Acid Contcnts filterecI 1 c.c. Philocarpus Jaborandi 5 mI. '\Vintergreen Oil #67 Vegetable Color added 16 grams Quinine Bisulfate Complaint 58 F.

Formulas and Ingredients per Gallon-Continued 1 c.c. Philocarpus Jaborandi #33 Distiled water 38 ml. Phenol Vegetable color added 10 ill. Balsam Peru Contents filtered per gal. Hair Dress Base #79 #43 108 oz. alcohol I1J2 oz. Pine Tar 12 oz. glycerine 1 oz. mineral oil 2 grams resorcinol pci' gal. Hair Dress Base 2 oz. Philocarpus Jaborandi #55 10 mil. mil. oil of La vendar 26 ml. Pine Oil Distiled water 1 mI. Philo carpus Jabordani Vegetable Color added per gal. Hair Dress Base Contents filtered #96 #82 40 mI. Phenol 100 ml. Tincture capsicum 1 ill. Philocal'pus .Taborandi 200 ru1. sulfonated castor oil per gal. Hair Dress Base. 1 c.c. Jaborandi 28 grams tartaric acid #92 Distiled water 15 ml. Phenol Vegetable color added 30 rol. glycerine Con ten ts filtered 1 rul. Jaborandi Distiled ,vat.er #48 Contents filtered 11 oz. Boric Acid Crystals #6230 ml. Lactic Acid 76 oz. Alcohol10 ml. Jaborandi 28 ml. sulfonated Olive Oil 32 oz. Distiled Water Distiled Water 20 oz. Tincture of capsicum Contents fiteredVegetable color added Contents fitered Solvent # 20 1112 Qt. Sulfonated Castor Oil#51 35 grams Phenol 8 oz. Olive Oil Shampoo 1 c.c. Philo carpus Jaborandi Distiled 'Vater Distiled water Contents filtered Vegetable color added Antiseptic #30Contents filtered 1 oz. Glycerine #25 1 oz. Sulfonated Castor Oil 28 gram :iIagnesium Chloride 1 mI. EucaJyptns Oil 14 gram Quinine Hydrochloride 2 ro!. Oil of Lemon 3 ml. .Taborandi 20 ml. of a 9% solution resorcinol 1/10 gram Thymol64 oz. Alcohol Distiled 'Vater Distilled Water Vegetable Color added Vegetable color added Contents filtered Contents filtered #23 IIair Dress # 40 7 grams flowers of Sulphur Purchased per gal. hair dress base 15 dr. resorcinol added per gal. BROCRESS LABORATORIES, ETC. 1021 1018 Complaint Fonnulas ana Inqrerlicnts per Gallon--Continued Shampoo # 10 Vegetable color added Purchased & packaged Contents filtered #55 Ointment (black) no. 10 Antiseptic Shampoo 8 oz. Petroleum no. 20 Solvent 4 oz. Lanolin no. SO Antiseptic % oz. sulphur no. 40 Hail' Dress Tmol iodide Shampoo plus egg and Lanolin1/8 oz. 'l' 31f.! oz. Pine tal' Shampoo with protean (sic) pel' pound Cream Rinse no. 55 Ointment (black) #D7 1(" Ointment (tan) 56 oz. Alcohol K" Ointment (tan) 0 gram Thymol Purchased & packaged 5 rul. Eucalyptus oil io gram Benizoic Acid Cream Rinse 47 oz. Distilerl Water Purchased & packaged 3 mI. Cassia PAR. 5. In the course and conduct of their aforesaid business, respondents have disseminated, and have caused the dissemination of advertisements by the United St.ates mails and by various means in commerce, as "commerce" js defined in the Federal Trade Commission Act, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of said preparations; and respondents have disseminated, and have caused the dissemination of advertisements by various means, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of said preparations in commerce, as "commerce" is defined in the Federal Trade Commission Act.

Among and typical of the statements contained in said advertisements, principally in newspapers, disseminated and caused to be disseminated as hereinabove set forth, are the following: He Re-Grew Hair.

Hair Specialist Here Tomorrow; Wil Show How To Save Hair and Prevent Baldness.

Xe,v home treatment for saving hair and improving its growth wil be demonstrated * * * The Lesley Specialists point out that remarkable results have been attained by means of a personal examination followed by simple individual treatments that anyone can easily carry out in the privacy of his or her own home. Regular checkups in your city by a Lesley Specialist assure success in a mini. mum period of time.

Your only obligation to yourself to ease your wind of hairworries by learning how to save and thicken your hair at home. When you first notice your hail' thinning, brought on usually by dandruff itching, dryness, oiliness or follcles clogged with .sebum or seborrhea, take positive action at once. See a Hail' & Scalp Specinlist. 1022 FEDERAL TRADE CO:'IMISSIOK DECISIONS Complaint Ci8 F. Of course, we must have a client who stil has some hair. If a person is completely bald, he waited too long and is refused treatment. However, if your scalp is stil producing short hair it is possible to at least save and thicken what you have.

Some conditons, such as "spot baldness " usually have complete coverage if caught in time Last year, the Lesley Organization was able to atj fy 96.3 per cent of its cEents.

No Treatment Of Any Kind Is Administered At The Clinic, Actually, the two most common calises of baldness are neglect and mis. treatment of the hair.

Baldness in its common forms does not come suddenly; it is a gradual starvation and shrinking of the hair follcles unti no hair growing abilty remains. Hair loss begins with its warning signs of dandruff, itchy or tender scalp, fading hail', 01' an excessive oil." or dry scalp. Once these symptoms are noticed immediate steps should be taken to check these growth- dcstroying conditions befot'e fatal follcle shrinkage ruins all hopes for hair replacement. ''with Lesley s home treatment you can put your scalp in a healthy hairgrowing condition. What's more, Lesley s method of hair care ",vil enable you to keep it that 'vay.

\'lritten Guarantee.

WHY GO BALD? THEY HE-GREW HAm! SA VFJ Your HAIR The findings of our trichologist who examined you ha,e been checked in Ot1r laboratory.

You are under profcssional1y supervised self-t.treatment ,. * * Trichologist F. 1. Brodie, representing the nationally-famous Lesley Hair & Scalp Specialists Organization, will personally examine hair-worried men and women from 1 :00 to 8 :00 P.l\. tomorrow at the hotel * * * PAR. 6. Through use of the aforesaid statements and representations, and others similar thereto not specifically set out herein, respondents have represented, directly nd by implication, that by the use of their said preparations and methods of application in almost every case, or except in cases of persons who are completely bald (a) baldness or exeessiyc hair loss will be prevented and overcome and (b) hair will be induced to grow and the hair will become thicker.

By the use of the word "Trichologist" and by other means in said advertisements, respondents have represented, directly or by implication, that they have had competent training in derma1010gy or other branches of medicine having to do wit.h the diagnosis and treatment of sealp disorders affecting the hair.

PAR. 7. The said a,advertisements are misleading in material respects and constitute "false advertisements as that term is defined in the Federal Trade Commission Act. In truth and in fact, the great majority of cases of baldness and excessive hair loss is the &:

BROCRESS LABORATORIES , ETC. 1023 1018 Decision common type known as male pattern baldness. Regardless of the exact formulae or combination of ingredients of the preparations, or the method of application, the use of said preparation or the use of any other preparations, regardless of their composition or method of application, will not in such cases (ll) prevent or overcome baJdness, or excessive hajr loss or (b) induce hair to grow or cause the hair to become thicker.

Respondents have not undergone competent training having to do with the diagnosis or treatment of scalp disorders affecting the hair. PAR. 8. Respondents' advertisements are misleu(ling in a further material respect and constitute " false advertisements" by reason of failure to reveal facts material in the light of representations made therein. In advertising that their preparations "ijj Clause hair to grow and will overcome baldness, respondents suggest that there is a reasonable probability that hair loss or bllJdness in any particular case may involve a condition in which their preparations would be of benefit, or will constitute an effective treatment therefor. truth and in fact, the instances in which respondents' preparations will be of any benefit, or constitute an effecti, e treatment for hair loss or baldness, are rare. In the great majority of cases, Joss of hair or baldness is the male pattern type in which eases respondents preparations are of no value whatever in the trea.trnent thereof. Thus there is no reasonable probability that any particubr case of hair loss or baldness is a condition for which respondents' preparations would be beneficial, and respondents' advertising is misleading because of respondents' failure to reveal the materilll fact that the great majority of cases of loss of hair or baldness is the type known as male pattern baldness and when hair loss or baldness is of that type, respondents' preparations are of no value in the treat.ment thereof.

PAR. 9. The dissemination by respondents of the false advertisements, as heroin alleged were, and are, all to the prejudice and injury of the public and constituted, and and now constitute, unfair and deceptive acts and practices within the intent and meaning of the Federal Trade Commission Act.

lift. illichael J. Filale for the Commission. Dudley, of Louisville, Ky. for respond- Erman, ATde?"J, Todd ents.

INITIAL DECISION BY lIElDrA TOCKEH, HEARI G EXAMINER The eompla.int in this proceeding, issued iarch 2 , 1961, charged the respondents Forrest I. Brodie and Alberta L. Brodie, indi- Decision 58 F.

vidually and as copartners, trading and doing business as Brocrcss Laboratories, Lesley Hair and Scalp Consultants and Lesley Hair and Scalp Specialists, al1 located at 2531 "'Vest Broadway, Louisville, Kentucky, with violation of the provisions of the Federal Trade Commission Act, by misrepresenting the results which may be obtained from the use of drug and cosmetic preparations sold and distributed by them in commerce and by misrepresenting the extent of their training in dermatology or other branches of medicine in connection with their efforts to sell and distribute such preparations.

After the issuance of the complaint, respondents (with the advice of their attorneys), and counsel supporting the complaint entered into an agreement, containing consent order to cease and desist thus disposing of all thc issues as to all parties to this proceeding. It was expressly provided in said agreement that the signing thereof is for settement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

By the terms of said agreement., the respondents admitted al1 the jurisdictional facts alleged in the complaint and agreed that the re,cord herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. By said agreement, the parties expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and al1 rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance therewith. Respondents agreed further that the order to cease and desist issued in accordance with said agreement, shall have the same force and effect as if made after a full hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that said order may be altered, modified or set aside in the manner prescribed by the statute for orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provide for an appropriate disposition of this proceeding, the same is hereby accepted and, upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Bules of Practice, shall be file.d; and, in consonance with the terms thereof, the hearing examiner finds tlmt the Federal Trade Com- BROCRESS LABORATORIES , ETC. 1025 1018 Order mission has jurisdiction of the subject matter of this proceeding a.nd of the respondents named herein, and that this proceeding is. in the interest of the public, and issues the following order: ORDER It i8 ordered That respondents Forrest 1. Brodie and Alberta L. Brodie, individually and as copartners, trading a.nd doing business as Brocress Laboratories, Lesley I-Iair and Scalp Consultant.s and Lesley IIaiI' and Scalp Specialists, or under any other name or' names, and respondents' agents, rcpresentatives and employees, directly or through any corporate or other device, in connection ,with the offering for sale, sale or distribution of the various cosmetic and drug preparations, or of any other preparations for use in the treatment of hair and scalp conditions, do forthwith cease and de,sist from:

1. Disseminating, or causing to be disseminated by means of thc, United States mail, or by any means in commerce, as "com merce is defined in the Federal Trade Commission Act, any advertisement which represents, directly or by implication: (a) That the use of said preparations alone or in conjunction with any method of treatment will:

(1) Prevent or overcome, baldness or excessive hair loss unless such representation be expressly limite,d to cases other than those known as male pattern baldness, and unless the advertisements clearly and conspicnol1.sly reveal the fact that. the great majority of all cases of baldncss or excessive hair loss are of the male pattern type, and that said preparations will not in such cases prevent 01' overcome baldness or excessive ha,ir loss; (2) Induce hair to gl'm or c1tuse the hair to become thicker, or othenvise grow hair, unless such representations be expressly limited to cases other than those arising by reason of male pattern baldness, and unless the advertisement clearly and conspicuously 1'evea1s the fact that the great majority of all cases of baldness or excessive hair loss are of the J1fllc patteI'll type, a,nel that said preparations "ill not in such cases induce the growth of hair or thicken hail'.

(b) That respondents, their agents, representatives or employees have had competent training in dermatology or other branches of medicine having to do with the diagnosis and treatment of scalp c011(11tions affecting the hair or a.re trichologists. 2. Disseminat.ing, or causing to be c1isseminate(l, by any means any advertisement for the. pl1rpose of inc1ncing, or \which is likely to induce, directly y or inc1directly the purchase of said preparations 081- 37- 63- Decision 58 F.

in commerce, as "Comnlerce ' is defined in the Federal Trade Commission Act, which advertisement contains any of the representations prohibited in Paragraph 1 hereof.

DECISION OF THE COl\DnSSJO:; AXD QIWER TO FILE REPORT OF C01lPLIAXCE Pursuant to Section 3.21 of the Commission s Hulcs of Practice the initial decision of the hearing examiner shah, on the 1st day of June, ID61, become the decision of the Commission; and, accordingly:

It is olde1wl That respondents herein shah, 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.

Ix THE )IA TTEH or B. LOWENSTEIN & BIWTHERS INC. ET AL.* ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE F"GR pnODUCTS LABELING ACTS Docket 7981. COJnp (1i.nt June 1960 Deci.sion, June, 1961 'Order in Fur Products Labeling Act case dismissing charges of false advertising as to a fonner vice-president of respondent company, who was neither ser.ed with the complaint nor employed by respondent company when it \vas issued.

lift. Oharles S. Cox for the Commission. .11'1. J'living J. Zipin of Xcw York City, for respondent. INITIAL DECISION ASD Onder DH;)USSIXG COMPLAINT AS TO RESPONDENT PHILIP DE .JOR O BY HEH.MAN TOCKER I-IEAIUXG EXAJ)IIXER The complaint in this proceeding was issued on the 24th day of Tune 1960. amec1 as respondents in the comp1oint ,were B. Lowenstoin & Brothers, Inc. : Stanley Fried and Philip De Torno. By decision dated Kovember 2:1, J960 , the initial decision of IIearing Examiner I-Iarry H. I-linkes accepting a consent order to cease and desist, submitted on behalf aT the respondents E. Lm.enstein & Brothers, Inc. and Stanley Fried, became the' Deeision of the Commission. The making of that order did not dispose of the . SettleiJ by consent oriJer Not'. 24, 1960, 57 F, C. l1S2 , as to all respondents other 1.han the individual herein concerned.

CONTACT LENS CEXTER 1027 i026 Complaint complaint herein in so far as Philip de Jorno (named therein as Philip De Jorno) is concerned. Counsel supporting thc complaint has moved that the complaint herein be dismissed as to said respondent Philip de Journo.

It now appears that the said respondent, Philip de Journo, at the time of the issuance and service of the complaint herein was no longer an offcer or employee of the corporate respondent herein was not served wit.h a copy of the complaint herein, but on the contrary, was employed by a department store in Grand Rapids Michigan, which department store is not connected with either the respondent corporation or the corporation which owns and controls the respondent. Consequently, it does not appear that the public Interest requires that this proceeding be continued against the said respondent Philip de Jom'llO. ..Accordingly, It i, he,.eby onlered That the complaint herein in so far as the respondent Philip de Journo (named therein as Philip De Jorno) is made a party hereto, be, and the same hereby is dismissed. DECISION" OF Tile COl\DIISSIO \S TO PHILIP DE JORXO PUl'snnnt. t.o Section 3. 21 of the Commission 8 R.lllcs of Practice the initial decision of the hearing examiner as to respondent Philip de Journo (named in the complaint as Philip De .Torno) shajj, on the 3rd day of .June, 1961 , become the decision of the Commission.