Elkhorn Mining Company

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IN THE MATTER OF ELKHORN MINING COMPANY T/A FREE ENTERPRISE URANIUM-RADON MINE, ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Dockel 272I. Complaint, Aug. 197iJ- Deeision, Aug. , 1975 Consent order requiring a Boulder, Manl, owner and operator of a uranium mine among other things to ('case misrepresenting thi' curative or physiological effect of radon gas on disease; and failing to disclose to prospective customers that radon gas has any provable physiological effect on disease, including arthritis, sinusitus, eczema and asthma.

Appearances For the Commission: Thomas C. Armitage. For the respondents: John F. Bell, Eolkovatz & Romine Helena Mont.

COMPLAINT The Federal Trade Commission, having reason to believe that Elkhorn Mining Company, a corporation dba Free Enterprise Uranium-Radon Mine, Radon Research Foundation, a corporation, and John T. Lewis, individually and as an offcer of Elkhorn Mining Company (hereinafter respondents), have violated Section 5 of the Federal Trade Commission Act, and that a proceeding would be in the public interest hereby issues its complaint:

PARAGRAPH 1. Elkhorn Mining Company is a Montana corporation with its office located at Boulder Bank Bldg., Boulder, Mont. It does business under the name Free Enterprise U ranium- Radon Mine. Radon Research Foundation is a Montana nonprofit corporation with its office located at Boulder Bank Bldg., Boulder, Mont. It had no receipts or disbursements in the past three years. It employed no one to do research. All expenses were paid by the Elkhorn Mining Company or its former president Wade V. Lewis personally. It distributes promotional literature for the Free Enterprise Mine and authors promotional literature distributed by the Elkhorn Mining Company. Its activities therefore inure to the monetary benefit of the Elkhorn Mining Company. It is therefore subject to Federal Trade Commission jurisdiction, 15 U. C. 944.

John T. Lewis is an individual and officer of Elkhorn Mining Company. He formulates, directs and controls the policies of said corporation, and his address is the same as that of said corporation. 412 FEDERAL THADF, COMMISSION DECISIONS complaint 86 F.

PAR. 2. Respondents carryon the following business: The Free Enterprise Uranium-Radon Mine is a vertical shaft some eighty-five feet in depth with a horizontal shaft at the bottom some four hundred feet in length. Persons afficted with various diseases, principally arthritis, are taken into this mine for a fee. In the mine shaft they remain for various periods of time breathing air which contains radon, a gaseous element derived from the decaying uranium surrounding the shaft. It is claimed that breathing radon wil benefit these persons by curing or improving various afflictions.

PAR. 3. Respondents advertise in media of interstate dissemination and ship advertisements and brochures in commerce through the mails. PAR. 4. Respondents' advertisements and brochures claim that the cause of arthritis is known and that cause is hormone deficiencies. Respondents claim that radon gas, derived from the ore in the mine stimulates the production of ACTH, a hormone, which in turn stimulates the production of hydrocortisone. These hormones, it is claimed, are beneficial to and curative of arthritis, bursitis, sinusitis asthma, eczema, skin affiction, and kindred ailments. PAR. 5. Ilustrative of respondents' advertising claims are the following quotations:

NATURE' S RADON THERAPY and IONIZATION are now recognized as REACHING THE CAUSE OF ARTHRITIS and many kindred affictions. NATUHE reaches CAUSE OF ARTHRITIS.

Visit the Free Enterprise Uranium-Radon Mine at Boulder, Montana, for arthritis sinusitis, asthma, skin affictions and kindred ailments. radiation due to RADON GAS transmutation elements in the air of the mine workings, is of such type and amount as to stimulate the master pituitary gland in its production of ACTH, this body product thereupon acting upon the adrenal cortex to produce hydrocortisone, the great pain kiler. Research through Radon Research Foundation indicates there are two basic causes of arthritis and kindred glandular connected ailments: 1. AN EXTERNAL CAUSE: Stress, strain or shock of physical, mental or emotional origin.

2. AN INTERNAL CAUSE: Retardation of the glands' activities, resulting in nonnormal production of body hormones.

Exposure to the mild radiation from breathing transmuted elements from radon, a ga..; represents a scientific break-through, offering a remedy reaching a principal CA USE of rheumatoid arthritis and allied glandular affictions. It (radon gas) exerts an influence on the autonomic nervous system, improves the circulatory state, and causes removal of waste from the organism and an activation of hormone producing organs, particularly the pituitary-adrenal system. PAR. 6. These statements and others contained in respondents advertisements and promotional literature are false, misleading and deceptive as follows:

A. Radon gas and the Free Enterprise Uranium-Radon Mine do not have any curative or physiological effect upon any disease or bodily 411 Complaint condition, including arthritis, sinusitus, eczema or other skin afflictions or asthma.

B. Radon gas does not have any beneficial effect on the autonomic nervous system, the circulatory state, the removal of waste, and the utilization of oxygen by defense cells of the body. C. There is no one cause for arthritis. There are more than sixty (60) forms of joint disease now recognized by the American Rheumatism Association, and it is unlikely that any two have the same cause. Some of these causes are well known; a number of causes are unknown. D. The role of stress, either internal or external, in causing or aggravating arthritis is unknown.

E. Below normal production of adrenal hormones is a well-known condition named Addison s Disease. Underproduction of hormones is not related to any form of joint disease.

F. Lack of or deficiency in ACTH and hydrocortisone does not cause joint disease.

G. Radon gas does not increase production of ACTH, hydrocortisone, or any other hormone.

H. White blood cells are the most sensitive to radiation. If the radiation in respondents' mine is not great enough to affect these cells it does not affect the body at all. If, on the other hand, the radiation is sufficient to affect white blood cells, it is dangerous and requires careful monitoring. The level of radiation in respondents' mine is in fact not dangerous to humans.

1. Even if the production of ACTH and hydrocortisone were increased by the inhalation of radon gas, the beneficial effects would be only symptomatic, failing to reach the causes of arthritis. J. The use of radon gas does not represent a scientific breakthrough.

K. Such "cures" as are claimed by customers of respondents' mine are either of psychosomatic origin or are due to the coincidental cyclical remission of arthritis.

PAR. 7. Respondents further fail to disclose, prior to the purchase of visits to the mine by customers, a number of material facts as follows: A. Neither radon gas nor the Free Enterprise Mine has any includingphysiological effect on any disease or bodily condition, arthritis, sinusitis, eczema or other skin afflictions, or asthma. B. Any benefits claimed by visitors to the Free Enterprise Mine are psychosomatic or are due to the coincidental cyclical remission of a disease.

C. Patients should consult their doctors before and/or after going to the Free Enterprise Mine. They may be missing the benefits of known and medically approved forms of therapy. Lack of medically accepted 414 FF,OERAL TRADE COMMISSION DF,CISlONS Decision and Order 86 FTC. treatment of arthritis may result in greater pain and possible permanent disability.

Knowledge of these facts may affect a customer s decision as to whether to purchase visits to respondents' mine. PAR. 8. The above-described conduct constitutes unfair and deceptive acts and practices in commerce in violation of Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereto with violation of the Federal Trade Commission Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint and waivers and other provisions as required by the Commission rules; and The Commission having considered the agreement and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of sixty days, and having duly considered the comments filed thereafter pursuant to Section 2.34 of its rules, now in further conformity with the procedure prescribed in Section 2.34 of its rules, the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the followingA. Respondentorder: Elkhorn Mining Company is a Montana corporation with its office located at Boulder Bank Bldg., Boulder, Mont. It does business under the name Free Enterprise U ranium- Radon Mine. Respondent Radon Research Foundation is a Montana corporation with its office located at Boulder Bank Bldg., Boulder, Mont. Respondent John T. Lewis is an individual and officer of Elkhorn Mining Company. He formulates, directs and controls the policies, acts and practices of said corporation, and his address is the same as that of said corporation.

B. The Federal Trade Commission has jurisdiction of the subject 411 Decision and Order matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Elkhorn Mining Company, a corporation dba Free Entcrprise Uranium-Radon Mine, Radon Research Foundation, a corporation, their successors and assigns, and their officers, and John 1'. Lewis, individually and as an officer of Elkhorn Mining Company, and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, do forthwith cease and desist from representing directly or by implication, that:

A. Radon gas or the Free Enterprise Uranium-Radon Mine has any curative or physiological effect upon any disease or bodily condition including arthritis, sinusitus, eczema or other skin afflictions, or asthma.

B. Radon gas has any beneficial effect on the autonomic nervous system, the circulatory state, the removal of waste, or the utilization of oxygen by defense cells ofthe body.

C. There is a single cause of arthritis or that the cause or causes of arthritis are known.

D. Arthritis is caused by or has any relationship to stress, either internal or external.

E. Arthritis or any form of joint disease is caused by hormone deficiencies of any type.

F. Arthritis is caused by underproduction of ACTH or any hormone associated with the pituitary gland or the adrenal gland. G. Radon gas increases production of ACTH, hydrocortisone, or any other hormone.

H. Exposure to any radioactive gas has any physiological effect on any disease or bodily condition.

1. ACTH or hydrocortisone, no matter how administered, results in anything but temporary symptomatic relief of arthritis. J. The use of radon gas represents a scientific breakthrough. K. Improvements in condition claimed to result from visits to the Free Enterprise Uranium-Radon Mine are neither psychosomatic nor the result of coincidental remission of a disease. It is further ordered That respondents shall clearly and conspicuously (a) include in all advertising and promotional materials for radon gas or the Free Enterprise Uranium-Radon Mine, and (b) provide by means of a separate written statement furnished to each prospective customer prior to the time he or she pays for the Free Enterprise Uranium- Radon Mine visit, the following form of notice: 416 FEDERAL TRADE COMMISSION DF,CISIONS Decision and Order 86 F. NOTICE Neither radon gas nor the Free Enterprise Uranium-Radon Mine has any provable physiological effed on any disease or bodily condition, including arthritis, sinusitus eczema or other skin afflictions, or asthma. You are advised to consult with your doctor before and/or after going to the Free Enterprise Uranium-Radon Mine. You may be missing the benefits of known and medically approved forms of treatment. Lack of medically accepted treatment of arthritis may result in greater pain and possible permanent disability. This notice is made pursuant to order of the Federal Trade Commission. In addition to the above, the separate written statement shall set forth the following language:

I have read and understand the above information. Name (please print) Signature Address (please print) Date Respondents shall retain for their records, for a period of at least three years, copies of such written statements which have been signed and dated by the customers.

It is further ordered That respondents shall forthwith distribute a copy of this complaint and order to each of their employees and shall continue such distribution to each new employee for a period of two years from the date this order becomes effective. It is further ordered That respondents shall maintain such records as wil fully disclose the manner and form of their compliance with this order.

It is fU1ther ordered That the corporate respondents notify the Commission at least thirty (aO) days prior to any proposed change in the corporate respondents such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporations which may affect compliance obligations arising out of this order. It is further ordered That the individual respondent promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent' s current business address and a statement as to the nature of the business or employment in which he is engaged, as well as a description of his duties and responsibilities. 417 Complaint