American Contact Lens Laboratories, Inc., et al.

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

IN THE J\IATTH OF AMERICAN CO TACT LEKS LABORATORIES, IKC., ET AL. CO:KSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VJOLATION OF Tile FEDERAL TRADE co:\unSSION ACT Docket "/951,. Complaint, June 1960-Decision, June 14, 1961 Consent order requiring sellers of contact lenses in Detroit fich. , to cease representing falsely in advertising in newspapers, by television, and otherwise, that their contact lenses could be ,yom all day without discomfort hy anyone needi.ng visual correction, that they ,vould correct all defects of vision, and that eyeglasses could be discarded upon their purchase. COJ\fPLAINT Pursuant to the provisions of the Federal Trade Commission theAct, and by virtue of the authority vested in it by said Act, Federal Trade Commission, having reason to believe that American Contact Lens Laboratories, Inc. , a corporate.ion, and Eli Shapiro Earl 'V. Ba,rtlett, Philip No1ish, and Arthur Shapiro, individually and as offcers of said corporation, hereinafter referred to as respondents, are in violation of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent American Contact Lens Laboratories, Inc.., is a corporation organized, exist.ing and doing business under and by virtue of the )a,\ys of the State of :Michigan with its main offce and principal place of business 10clttec1 at 1710 Book Bllil(ling, \Vashington Boulevard at Grand R,jyer in the Cit.y of Detroit State of Michigan.

()Sl-237- 1106 FEDERAL TRADE COM nSSION DECISIONS Complaint 58 F.

Eli Shapiro, Earl 'V. Bartlett, Philip Xo1ish and Arthur Shapiro are officers of the corporate respondent. These individuals direct formulate and control the acts, practices and policies of the corporate respondent. Theil' business address is t.he same as that of of the corporate respondent.

PAR. 2. Hesponclents arc now, and for some time last past have been, engaged in the advertising and in the sale to the public of corneal contact lenses known a,s "Natura" contact lenses. Contact lenses are designed to correct errors and deficiencies in the vision of the weare.r and are devices, as " clevice ' is de,fined ill the Fedl2ral Trade Commission Act.

-UL 3. In the course and conduct of their aforesaid business respondents have disseminated, and have caused the dissemination , advertisements concerning their said device, by the United States mail and by various means in commerce, as "commcrcc ' is defined in the Federal Trade Commission Act, including but not limiteel to, advertisements inserted in newspapers ana by means of circulars and pamphlets and television broadcasts, for the purpose of inducing, and which were likely to induce, the purchase of the sa.id devices; and respondents have also disseminated, and caused the dissemination of, advertisements concerning their products by various means, including but not restricted to the aforesaid media for the purpose of inducing and .which were and are likely to induce, directly and indirectly, the purchase of their said clevices in commerce, as " commerce" is defined in the Federal Trade Commission Act.

Among and typical, but not all inclusive, of the statements contained in advertiselnents, disseminated and caused to be disseminatcu as aforesaid, are the following:

Ideal For All Age Groups.

The answer for active youngsters, athletes and people on the go who ha,e to tolerate the burden or the unsightliness of thick heavy lenses. 'Vonderful for older folks who require bi-foeals.

At last f! contact lens has been perfected with you in mind. It' s invisible comfortable * * '"

A11 day comfort and an exciting new life for you without glasses. * '" '" Cancel out of your life a11 of the discomforts, embarrassments, and inconveniences of wearing glasses. * .. '" Broken oj' lost glasses right at the time when yoll need them most.

PAR. 4. By and through the statements made in said advertisements, and others of a similar import not speeifica.l1y set. out herein respondents represent and have represented, directly and by im- Illicatiol1 , that:

1. .All persons in need of visual correction can successfully wear their contact lcnses.

, ,, AMERICAN CONTACT LENS LABORATORIES, INC., ET AL. 1107 1105 Decision 2. Their contact lenses wil correct all defects of V1Slon, including those which require the use of bifocal lenses. 3. There is no discomfort in wearing their contact lenses. 4. Said contact lenses can be worn all day without discomfort. 5. Eyeglasses can be discarded upon the purchase of their contact lenses.

PAR. 5. The statements contained in the aforesaid advertisements aTB misleading in material respects and constitute "false advertisements, as that term is defined in the Federal Trade Commission Act. In truth and in fact:

1. A significant number of persons cannot successfully wear respondents' contact lenses.

2. Respondents' contact lenses will not correct all defects in vision. 3. Respondents' contact lenses will not correct defects in vision in all cases requiring bifocal lenses.

4. Practically all persons \\ill experience some discomfort when first wearing respondents' contact lenses. In a significant number of cases discomfort will be prolonged and in some cases will never be overcome.

5. J'Iany persons cannot wear respondents ' contact lenses all day without discomfort, and no person can ear said lenses all day in complete comfort until he or she has become fully adjusted thereto.

6. Eyeglasses cannot ahyays be discarded upon the purchase of respondents' contact lenses.

PAR. 6. The dissemination by the respondents of the false advertisements, as aforesaid, constituted, and now constitutes, unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act. 1.111' . FTede?'iek 111 eill an-us for the Commission. 3h. F"anl, M. Polasky, of Saginaw, Mich., for respondents. Tllat DECISION BY IIER)IAX Tacker, IIEARIXG EXA)IINER The complaint in this proceeding: issued June 16 , 1960, charged the respondents, American Contact Lens Laboratories, Inc. , a corporation located at 1710 Book Building, \Vashington Boulevard at Grand River, Detroit., :Michigan, and Earl "Y. Bartlett, Philip Xolish, Eli Shapiro and Arthur Shapiro, individually and as offcers of sa.ic1 corporation ith clisseminnJing and causing to be disseminatecl in commerce misleading a,ncl false advertisements as to 1l0S FEDERAL TRADE CO!I'IISSION DECISIO~S Decision 58 F.

the uses, performance, effects and benefits of, by, and to be derived from, corneal contact lenses sold by them in commerce, all in eontravention of the Federal Trade Commission Act. Earl 1V. Bartlett:s business address is t.he same as that of the corporate respondent, but Philip Nolish is now located at 116 South 1Vashington Avenue, in Saginaw, :Michigan, and Eli Shapiro and Arthur Shapiro are now located at 118 Kearsley Street, Flint, Michigan. After the issuance of thc complaint, respondents (with the advice of their attorney) and counsel in support of the complaint ent.ered into an agreement containing a consent order to cease and desist, disposing of all the issues as to all parties in this proceeding. It appears from said agreement and from papers submitted therewith, that respondents Philip Kalish, Eli Shapiro and Arthur Shapiro are no longer offcers or stockholders of the corporate respondent, they having severed the,iI' connections therewith and sold all their stock therein to Earl 'V. Bartlett on or about August 5, 1959. It appears also from said agreement that Eli Shapiro and Arthur Shapiro arc the same persons as are named in a cease and desist order heretofore issued against them in a prior case before the Commission, which order prohibits all the practices set forth in the complaint herein except those for which provision is made against them in the consent order herein. The agreement provides therefore, that the complaint be dismissed as to Philip Kalish, Eli Shapiro, and Arthur Shapiro as offcers of the corporate respondent ancl as to Eli Shapiro ancl Arthur Shapiro as to a11 parts thereof except that for which such provision is made in the said consent order.

It w tS expressly provided in said agree,ment that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as aJleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional facts aJlegec1 in the complaint and agreed that the record herein ma.y be taken as if the Commission had made findings of jurisdictional facts in acconlance with the allegations. By said agreement, t.he parties expressly waived any further procedural st.eps before the hearing Examiner and the Commission j the making of findings of fad or conclusions of law; and an rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. Respondents furt11cr agreed 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. A.'\ERICAN TACT LENS LABORATORIES, INC. , ET AL. 1109 1105 Order It was further provided that said agreement, together with the complaint, shall const.itute 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 appea.ring that said agreement and order provide for an appropriate.e 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 Rules of Practice, shall be fied; and, in consonance with the terms thereof, the Hearing Examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, and that this proceeding is in the interest of the public, and issues the following order: ORDER It is ordoTed That respondents American Contact Lens Laboratories, Inc. , a corporation, and its offcers, and Earl 'V. Bartlett individually and as an offcer of said corporation, and Philip Nolish, indivic1ually, and said respondents' representatives, agcnts and employees, directly or through any corporate or other device in conllction with the offering for sale, sale or distri bution of contact lenses, do fort.hwith 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 defined in the Federal Trade Commission Act, which advertisement represents, directly or by implication that:

(a) All persons in need of visual correction can successfully wear respondents' contact lenses.

(b) Their contact lenses will correct all defects in vision. (c) Their contact lenses wil correct defects in vision in all cases which require bifocal lenses.

(d) There is no discomfort in wearing said lenses. (e) All persons can wear said lenses all day without discomfort; or that any person can wear said lenses all day without discomfort except after that person has become fully adjusted thereto. Decision 58 F.

(f) Eyeglasses can always be discarded upon the purchase of respondents ' lenses.

2. Disseminating, or causing to be disseminated, any advertisement, by any means, for the purpose of inducing or which 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 above.

It i8 furthe?' ordered That respondents Eli Shapiro and Arthur Shapiro, incli vidua.lly, and their representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of contact lenses, do forthwith cease and desist from, directly or indirectly: 1. Disseminating, or causing La be disseminated, any advertisement 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 byimplication, that their contact lenses \'i11 correct defects in vision in all cases which require bifocal lenses.

2. Disseminating, or causing to be disseminated, any advertisement by any means for the purpose of inducing, or ,,,which is likely to induce, directly or indirectly, the purchase of said products in commerce, as "commerce" is defined in the :F'ecleral Trade Commission Act, which advertisement contains the re.presentation prohibited in Paragmph 1 above.

It i8 fUTthe)' ordered That the complaint, except as to Paragraph Four 2, as it reJates to respondents Eli Shapiro and Arthur Shapiro individually and as oflcers of the corporate respondent and as to Paragraph Four 2., as offcers of the corporate respondent, be and the SRme hereby is, dismissed and that the complaint insofar as it relates to respondent Philip Kalish as an offcer of the corporate respondent, be, and the same hereby is, dismissed. DECISION OF THE CO)DIISSION AXD ORDER TO l ILE REPORT OF CO?IPLIAXCE Pursuant to Section 3.21 of the Cormn1ssion s Rules of Practice the initial decision of the Hearing Examiner shall, on the 14th day of June, 1961, become the decision of the Commission; and, a.accordingly:

It is 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. MOXTGO ERY WARD & CO. ) INC. 1111 1111 Complaint