Jerome Milton, Inc

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IN THE MATTER OF JEROME MILTON, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket 9187. Complaint, Sept. 24, 1984—Decision, Oct. 26, 1987 This consent order prohibits, among other things, the Chicago, Illinois maker of Shane toothpaste from representing that Shane cures or alleviates the symptoms of canker or cold sores; reduces tooth sensitivity or plaque more effectively than any other toothpaste or oral hygiene product; or cures or alleviates gum problems unless they have reliable evidence that substantiates the representation. Appearances For the Commission: Nancy Warder.

For the respondents: Maurice Raizes, Cohon, Raizes, & Regal, Chicago, IL.

Complaint 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 Jerome Milton, Inc., a corporation, and Jerome Milton Schulman, individually and as an officer of Jerome Milton, Inc., hereinafter sometimes referred to as respondents, have violated the provisions 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 Jerome Milton, Inc., is an Illinois corporation with its office and principal place of business located at 4350 W. Ohio Street, Chicago, Illinois.

Respondent Jerome Milton Schulman is an officer of Jerome Milton, Inc. He formulates, directs and controls the acts and practices of Jerome Milton, Inc. His address is the same as that of Jerome Milton, Inc.

The aforementioned respondents cooperate and act together in car- ‘rying out the acts and practices hereinafter set forth. Par. 2. Respondents are engaged in the advertising, offering for sale, sale and distribution of various dietary and health care products, including Shane toothpaste. In connection with the marketing of JEROME MILTON, INC., ET AL. 105 104 Complaint Shane, respondents are now and have been engaged in the dissemination, publication, and distribution of advertisements and promotional material for the purpose of promoting the sale. of Shane. As advertised, Shane is a “drug” within the meaning of Section 12 of the Federal Trade Commission Act.

Par. 3. Respondents have caused Shane to be transported from their places of business in various states to purchasers located in other states. Respondents maintain, and at all times mentioned herein have maintained, a substantial course of trade in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act. , Par. 4. Respondents have disseminated and caused the dissemination of certain advertisements and promotional materials for Shane, such as the advertising materials attached hereto as Exhibits A through F, through the United States mails and by various means in or affecting commerce, as “commerce” is defined in the Federal Trade - Commission Act.

Par. 5. Through the use of the advertisements and promotional materials referred to in paragraph four, and others not specifically set forth herein, respondents have represented, and now represent, directly or by implication, that:

a. the use of Shane will cure, or alleviate the symptoms of, canker sores (recurrent aphthous stomatitis), cold sores (herpes simplex type I lesions), and the gum problems associated with gingivitis and periodontitis;

b. Shane is superior to other toothpastes in reducing or eliminating plaque; and c. the use of Shane will lessen the sensitivity of the teeth to hot and cold. substances.

Par. 6. Through the use of the advertisements and promotional materials referred to in paragraph four, respondents have represented and now represent directly or by implication that, at the time of making the representations set forth in paragraph five, they possessed and relied upon a reasonable basis for those representations. Par. 7. In truth and in fact, respondents, at the time of making the representations set forth in paragraph five, did not possess and rely upon a reasonable basis for those representations. Therefore, the representation set forth in paragraph six was and is unfair and deceptive. Par. 8. The use by respondents of the aforesaid unfair and deceptive representation has had, and now has, the capacity and tendency to mislead members of the consuming public into the erroneous and mistaken belief that said representation was and is true and has Complaint 110 F.T.C.

induced, or is likely to induce, directly or indirectly, the purchase of Shane.

Par. 9. The acts and practices of respondents, as herein alleged, including the dissemination of the aforesaid advertisements and promotional materials, were and are all to the prejudice and injury of the public and constituted and now constitute unfair and deceptive acts or practices in or affecting commerce in violation of Sections 5 and 12 of the Federal Trade Commission act, as amended. ORDER I.

It is ordered, That respondents Jerome Milton, Inc., a corporation, its successors and assigns, and its officers, and Jerome Milton Schulman, individually and as an officer of Jerome Milton, Inc., and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacture, advertising, labeling, packaging, offering for sale, sale, or distribution of Shane toothpaste, any other toothpaste, or any other oral hygiene product in or affecting commerce, as ‘“‘commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that any such product:

a. cures or alleviates the symptoms of canker sores (recurrent aphthous stomatitis), cold sores (herpes simplex type I lesions), or the gum problems associated with gingivitis and periodontitis; b. reduces plaque more effectively than any other toothpaste or oral hygiene product;

c. reduces the sensitivity of teeth to hot and cold substances; or d. has any other therapeutic property unless at the time of making such representation, respondents possess and rely upon competent and reliable evidence substantiating the representation. For purposes of this order, “competent and reliable evidence” shall mean a test, analysis, research project, or study in which the evidence has been objectively obtained and evaluated by persons qualified to do so, using procedures generally accepted in the relevant profession to yield accurate results. Il.

It is further ordered, That respondents, their successors and assigns, for at least three (3) years after the date of the last dissemination of JEROME MILTON, INC., ET AL. 107 104 Complaint the representation, shall maintain and upon request make available to the staff of the Commission for inspection and copying copies of, and dissemination schedules for, every advertisement containing any representation(s) about oral hygiene product(s), copies of all evidence relied on for such representation(s), and copies of any document(s) in the possession or control of respondents, their successors and assigns contradicting or qualifying any such representation. III.

It is further ordered, That respondents notify the Commission at least thirty (30) days prior to the effective date of any proposed change in the corporate respondent 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 corporation which may affect compliance obligations arising out of the order. IV.

It is further ordered, That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment. In addition, for a period of five years from the effective date of this order, the individual respondent shall promptly notify the Commission of each affiliation with a new business or employment. Each such notice shall include the individual respondent’s new business address and a statement of the nature of the business or employment in which the respondent is newly engaged, as well as a description of respondent’s duties and responsibilities in connection with the business or employment. The expiration of the notice provision of this paragraph shall not affect any other obligation arising under this order.

V.

It is further ordered, That the respondents forthwith distribute a copy of this order to each of the corporate respondent’s operating divisions and to all present and future employees, agents, or representatives engaged in the preparation and placement of advertising and that the corporate respondent shall secure from each such person a signed statement acknowledging receipt of the order. Complaint 110 F.T.C.

VI.

It is further ordered, That the respondents shall, within sixty (60) days after the date of service of this order, file with the Commission a report, in writing, signed by a responsible officer for respondents, setting forth in detail the manner and form in which they have complied with this order.

JEROME MILTON, INC., ET AL. 109 104 Complaint EXHIBIT A SHANE TOOTHPASTE Radio TV Reports ‘:.

: SECRET OF p PROGRAM: OBR. KILDARE 6/20/ 41 East 42nd Street New York N.Y. 10017 WGN-TV (CHICAGO) 10:08AM (212) $99-5500 1. JEROME SCHULMAN: 2. with my gums and teeth, and 3. I've tried the major brands t'm Jerome Schulman, sensitivity to hot and cold. of toothpaste with no results. pee years, I've had pro- Jems 6. Gary Clark, Milwaukee, 5. called Shane. Now, people writes “Shane is fantastic”, 4. Since i'm a chemist, | developed a toothpaste across the country are using Shane with excellent results.

8. Buy Shane, if it isn’t the finest 9. return the empty tube with the purchase receipt, and | 7. ange fetter from Chicago, : i st toothpaste I've toothpaste you've ever used, ever used”.

will give you a full refund.

ALSO AVAILABLE IN COLOR VIDEO-TAPE CASSETTE While Rad:o TW Meoorts Inc endeavors 10 aaaure Ihe ec Curecy Of Meters! BUDOHEd By I if CANAO! Be reaponeiote for Miatanes OF OMOBIONS Complaint EXHIBIT B Radio TY Reports sce snonanenc”’ WIThTV (MILWAL.

41 Last 42nd Street New York N.Y. 10017 (212) $99-$500 monee Falla.

1. MAN: Why are more people 2. GERI ROSIN: In the past, I've 3. being sensitive to hot and cold, switching from ordinary tooth- had problems with my teeth and also plaque formations, and paste to Shane? Here's Geri Nothing on the market seemed . to work.

Rosin, 6. Almost immediately, the 4. Then | heard about Shane S. | noticed how refreshing it Ost Toothpaste. tasted, and it had a very sensitivity was gone, and soothing effect on my gums within months, and teeth, 8. aimost disappeared. 9. ANNCR: Buy it now at 7. the plaque formatian val * greens.

ALSO AVAILABLE IN COLOR VIDEO-TAPE CASSETTE Weg Radio TV Reports Inc enceavore to eBure INe accuracy Of MAIN’ sUODNEd Dy 1 «1 Cann! De reasonable for MieteReE OF OMBBIONS JEROME MILTON, INC., ET AL. 111 104 Complaint EXHIBIT C JEROME MILTON WHY ARE MORE CHICAGO AREA PEOPLE SWITCHING FROM ORDINARY TUOTH- PASTE TO SHANE.

HERE ARE SOME SHANE USERS TO TELL YOU WHY..... GER! ROSIN OF MENOMENEE FALLS, WISCONSIN, “BY NATURE | AM SKEPTICAL OF ANY NEW PRODUCT THAT CLAIMS MIRACULOUS RESULTS, BUT YOUR SHANE TOOTHPASTE DOES EVERYTHING ITS SAID TO Dv --- PLUS MORE! | HAVE GONE THROUGH PERIODONTAL SURGERY TWICE AND HAVE SUPFERED A GREAT DEAL OF PAIN AND DISCOMFORT, MY CREAT- EST PROBLEMS WERE SENSITIVITY AND PLAQUE FORMATION, NOTHING SEEMED TO HELP. I TRIED SHANE AND ALMOST IMMEDIATELY THE SENSITIVITY TO HOT AND COLD WAS GONE. BEST OF ALL PLAQUE HAS ALMOST DISAPPEARED AND MY TEETH ARE CI.EANER." AUORIE KLUSZEWSKI OF CHICAGO, WHEN5 1 8 1 1 6 1450 1505 5 20 63.121296 |5 1 8 1 1 7 1480 1505 78 21 95.657486 FIRSTS 1 8 1 1 8 1576 1506 82 20 49.273483 HEARD5 1 8 1 1 9 1678 1506 44 21 95.865067 THES 1 8 1 1 10 1741 1506 97 21 94.659004 CLAIMS5 1 8 1 1 11 1855 1506 64 21 87.806992 MADE4 1 8 1 2 0 870 1566 1003 29 -1 5 1 8 1 2 1 870 1566 47 20 94.980370 FOR5 1 8 1 2 2 935 1567 79 21 95.965118 SHANE5 1 8 1 2 3 1039 1569 5 19 60.206287 |5 1 8 1 2 4 1066 1569 49 21 94.751495 WAS5 1 8 1 2 5 1134 1569 158 26 96.861458 SKEPTICAL,5 1 8 1 2 6 1316 1572 79 20 96.108681 BEINGS 1 8 1 2 7 1413 1573 16 18 94.469063 A5 1 8 1 2 8 1447 1572 145 21 94.469063 PESSIMIST5 1 8 1 2 9 1615 1573 5 19 68.564713 |5 1 8 1 2 10 1644 1573 46 20 95.049194 LETS 1 8 1 2 11 1709 1575 30 17 91.438614 MY5 1 8 1 2 12 1758 1575 115 17 39.408306 HUSIs\ND4 1 8 1 3 0 871 1632 1034 26 -1 5 1 8 1 3 1 871 1632 45 21 94.460304 USES 1 8 1 3 2 937 1632 78 22 96.035019 SHANE5 1 8 1 3 3 1036 1634 80 21 96.141510 FIRSTS 1 8 1 3 4 1135 1635 79 21 96.191109 SINCE5 1 8 1 3 5 1234 1636 30 20 95.150787 HE5 1 8 1 3 6 1288 1637 25 20 95.655907 IS5 1 8 1 3 7 1331 1638 17 18 95.745567 A5 1 8 1 3 8 1365 1637 80 21 95.910263 HEAVY5 1 8 1 3 9 1465 1638 95 20 96.256409 SMOKERS 1 8 1 3 10 1578 1638 49 20 91.431801 ANDS 1 8 1 3 11 1644 1638 97 20 52.979828 DRINKS5 1 8 1 3 12 1760 1638 145 20 40.830303 EACISSIVE2 1 9 0 0 0 871 1698 1051 24 -1 3 1 9 1 0 0 871 1698 1051 24 -1 4 1 9 1 1 0 871 1698 1051 24 -1 5 1 9 1 1 1 871 1698 113 20 91.610374 AMOUNTS5 1 9 1 1 2 1003 1699 30 19 95.597000 OF5 1 9 1 1 3 1054 1699 108 22 88.108650 COFFEE.5 1 9 1 1 4 1201 1700 31 20 96.319344 WE5 1 9 1 1 5 1250 1701 64 20 96.832672 WERE5 1 9 1 1 6 1333 1701 98 21 96.236305 AMAZED5 1 9 1 1 7 1448 1703 65 19 95.194740 WITH5 1 9 1 1 8 1532 1702 45 20 95.659027 THES 1 9 1 1 9 1596 1701 128 21 94.463837 DRAMATIC5 1 9 1 1 10 1744 1702 112 20 91.816086 RESULTS5 1 9 1 1 11 1875 1701 47 21 96.239418 ONE2 1 10 0 0 0 874 1762 1018 26 -1 3 1 10 1 0 0 874 1762 1018 26 -1 4 1 10 1 1 0 874 1762 1018 26 -1 5 1 10 1 1 1 874 1762 129 21 96.023651 BRUSHING5 1 10 1 1 2 1020 1764 77 24 95.652122 MADE,5 1 10 1 1 3 1124 1764 28 21 88.207970 IN5 1 10 1 1 4 1168 1765 133 21 88.207970 ADOITION5 1 10 1 1 5 1318 1767 47 20 95.609665 HIS5 1 10 1 1 6 1384 1767 130 21 96.124413 BLEEDING5 1 10 1 1 7 1531 1768 48 20 96.188187 ANDS 1 10 1 1 8 1599 1767 94 21 96.028831 TENDER5 1 10 1 1 9 1711 1767 64 20 94.415939 GUMS5 1 10 1 1 10 1795 1768 45 18 75.714005 AKL5 1 10 1 1 11 1865 1767 27 19 89.121559 IN2 1 11 0 0 0 873 1826 1071 281 -1 3 1 11 1 0 0 873 1826 1037 86 -1 4 1 11 1 1 0 873 1826 1037 25 -1 5 1 11 1 1 1 873 1826 146 20 96.003784 EXCELLENT5 1 11 1 1 2 1038 1827 158 21 86.404274 CONDITION,5 1 11 1 1 3 1237 1830 79 19 92.050507 SHANE5 1 11 1 1 4 1339 1830 27 20 68.146011 IS5 1 11 1 1 5 1385 1831 96 19 95.622986 BETTER5 1 11 1 1 6 1501 1832 63 19 96.081390 THAN5 1 11 1 1 7 1581 1834 46 17 91.869377 ANY5 1 11 1 1 8 1649 1831 151 18 40.594521 TOOTHPAST!5 1 11 1 1 9 1830 1830 80 21 93.786118 WE'VE4 1 11 1 2 0 875 1887 198 25 -1 5 1 11 1 2 1 875 1887 71 22 91.721786 EVER5 1 11 1 2 2 958 1887 115 25 0.633629 USEDL'L:3 1 11 2 0 0 874 1955 1070 152 -1 4 1 11 2 1 0 874 1955 1035 25 -1 5 1 11 2 1 1 874 1955 64 19 56.458744 HALF5 1 11 2 1 2 955 1956 33 18 93.727303 AS5 1 11 2 1 3 1006 1956 66 18 95.180244 MUCH5 1 11 2 1 4 1090 1956 80 20 95.987381 SHANE5 1 11 2 1 5 1190 1957 128 23 96.117294 PRODUCES5 1 11 2 1 6 1337 1958 96 20 85.625603 BETTER5 1 11 2 1 7 1451 1959 113 19 95.032845 RESULTS5 1 11 2 1 8 1585 1959 63 19 94.122627 THAN5 1 11 2 1 9 1664 1959 129 18 76.910019 ORDINARY5 1 11 2 1 10 1819 1958 90 17 17.359734 [UOTH-4 1 11 2 2 0 875 2017 1047 27 -1 5 1 11 2 2 1 875 2017 93 23 90.170425 PASTE.5 1 11 2 2 2 1009 2019 45 22 95.253922 THES 1 11 2 2 3 1074 2019 82 22 95.253922 EXTRAS 1 11 2 2 4 1174 2020 129 22 95.380608 BENEFITS5 1 11 2 2 5 1321 2022 63 21 96.049095 MORE5 1 11 2 2 6 1406 2022 62 21 96.174171 THAN5 1 11 2 2 7 1484 2022 64 21 95.027618 MAKES 1 11 2 2 8 1568 2023 32 21 95.137016 UP5 1 11 2 2 9 1618 2022 46 21 95.137016 FOR5 1 11 2 2 10 1685 2022 44 21 93.146683 THES 1 11 2 2 11 1748 2022 81 20 52.848190 ADUID5 1 11 2 2 12 1847 2020 75 21 85.594742 COST.4 1 11 2 3 0 875 2082 1069 25 -1 5 1 11 2 3 1 875 2082 49 20 95.116028 CANS 1 11 2 3 2 943 2083 47 20 95.116028 YOU5 1 11 2 3 3 1007 2084 99 20 94.428017 AFFORDS 1 11 2 3 4 1125 2085 79 20 86.443611 LESS?5 1 11 2 3 5 1238 2087 49 18 86.443611 WHY5 1 11 2 3 6 1306 2085 46 22 96.182510 USES 1 11 2 3 7 1370 2087 33 19 93.995277 AN5 1 11 2 3 8 1420 2086 130 20 94.972809 ORDINARY5 1 11 2 3 9 1570 2085 159 21 83.114433 TOOTHPASTE5 1 11 2 3 10 1748 2087 66 18 93.689018 WHEN5 1 11 2 3 11 1832 2086 48 18 94.262970 YOU5 1 11 2 3 12 1896 2084 48 20 95.597420 CAN2 1 12 0 0 0 876 2148 804 27 -1 3 1 12 1 0 0 876 2148 804 27 -1 4 1 12 1 1 0 876 2148 804 27 -1 5 1 12 1 1 1 876 2148 47 22 96.199562 USES 1 12 1 1 2 943 2149 92 23 89.166145 SHANE.5 1 12 1 1 3 1075 2151 80 22 87.507950 SHANE5 1 12 1 1 4 1180 2152 25 21 76.669540 IS5 1 12 1 1 5 1222 2152 147 22 86.178650 AVAILARLE5 1 12 1 1 6 1406 2151 112 23 91.264183 (FOLLOWS 1 12 1 1 7 1537 2153 46 21 95.253799 TAGS 1 12 1 1 8 1603 2150 77 25 96.374344 LIST)2 1 13 0 0 0 787 2342 1330 28 -1 3 1 13 1 0 0 787 2342 1330 28 -1 4 1 13 1 1 0 787 2342 1330 28 -1 5 1 13 1 1 1 787 2342 95 20 94.432304 JEROME5 1 13 1 1 2 894 2345 106 23 95.329536 MILTON,5 1 13 1 1 3 1010 2346 48 19 88.675735 INC.5 1 13 1 1 4 1075 2351 10 10 90.252037 ©5 1 13 1 1 5 1099 2346 55 19 92.955872 43505 1 13 1 1 6 1162 2347 66 19 95.017876 WEST5 1 13 1 1 7 1237 2347 65 20 92.789818 OHIO5 1 13 1 1 8 1311 2346 94 21 92.789818 STREETS 1 13 1 1 9 1422 2352 10 10 87.775200 ©5 1 13 1 1 10 1446 2346 121 24 92.225578 CHICAGO,5 1 13 1 1 11 1578 2350 109 19 94.136215 ILLINOIS5 1 13 1 1 12 1696 2350 68 18 94.765610 606245 1 13 1 1 13 1780 2355 10 9 83.637054 ©5 1 13 1 1 14 1806 2350 40 18 43.610653 TIL5 1 13 1 1 15 1856 2348 93 20 43.610653 FPHONE5 1 13 1 1 16 1964 2348 90 18 35.079712 312/83H5 1 13 1 1 17 2068 2348 49 17 80.695045 1800 Complaint 110 F.T.C.

EXHIBIT D WEL SPorAive | (CC announcer READS: ) WHY ARE MORE PEOPLE SWITCHING FROM ORDINARY TOOTHPASTE TO PROFESSIONALLY FORMULATED SHANE? HERE ARE SOME SHANE USERS TO TELL YOU WHY....LOIS GRIFFIN OF ELK GROVE VILLAGE WROTE, SHANE5 1 8 2 1 2 1036 1052 195 23 95.751755 TOOTHPASTE5 1 8 2 1 3 1255 1053 34 23 96.500084 IS5 1 8 2 1 4 1312 1053 212 25 91.903954 FANTASTIC! SHE IS ONE WHO MUST HAVE HER TEETH CLEANED EVERY THREE MONTHS AND IT WAS BOTH PAINFUL AND EXPENSIVE. SHE HAS BEEN USING SHANE AND NOW HER DENTIST TELLS HER THAT SHE CAN CUT DOWN ON THE FREQUENCY OF HER VISITS. MARY SWART OF EVERGREEN PARK WROTE THAT SHE HAS HAD CHRONIC PROBLEMS WITH CANKER SORES. SHE LEARNED ABOUT SHANE TOOTHPASTE AND WITHIN THE HOUR AFTER APPLYING SHANE, THE SORENESS WENT AWAY AND IT WAS A JOY TO EAT WITHOUT THE PAIN AND DISCOMFORT. HALF AS MUCH SHANE PRODUCES BETTER RESULTS THAN ORDINARY TOOTHPASTE. THE EXTRA BENEFITS MORE THAN MAKE UP FOR THE ADDED COST. YOU CAN'T AFFORD LESS. WHY USE AN ORDINARY TOOTHPASTE WHEN YOU CAN USE SHANE. IT'S AVAILABLE AT: JEROME MILTON, INC., ET AL. 113 104 Complaint EXHIBIT E JEROME MILTON/ SHANE 8/3/83 :60 SPOT/LIVE Qaywouncer READS. >) WHY ARE MORE PEOPLE SWITCHING FROM ORDINARY TOOTHPASTE TO PROFESSIONALLY FORMULATED SHANE? HERE ARE SOME SHANE USERS TO TELL YOU WHY....PATRICIA KAWA, FROM PHOENIX, ARIZONA, WROTE SHE HAD RECENTLY VISITED HER DENTIST AND WAS TOLD THAT ALL HER BOTTOM TEETH HAD TO BE EXTRACTED. HER GUMS WERE INFECTED, HER TEETH WERE LOOSE AND SHE WAS SENSITIVE TO HOT AND COLD. SHE STARTED USING SHANE TOOTHPASTE AND THREE AND A HALF MONTHS LATER ALL HER. PROBLEMS WERE GONE. SHE'S EVEN BACK TO ENJOYING CORN ON THE COB. SHANE TOOTHPASTE IS TRULY A MIRACLE-~- SHE SAID IT HAS CHANGED HER LIFE. CLEO LEVINE OF CLEVELAND, OHIO SUFFERED FOR YEARS WITH PLAQUE PROBLEMS AND SENSITIVITY TO HOT AND COLD. SHE STARTED USING SHANE AND ALMOST IMMEDIATELY THE SENSITIVITY TO HOT AND COLD WAS GONE. HER PLAQUE FORMATION HAS DISAPPEARED TOO. SHE THINKS SHANE IS WONDERFUL. HALF AS MUCH SHANE PRODUCE BETTER. RESULTS THAN ORDINARY TOOTHPASTE. THE EXTRA BENEFITS MORE THAN MAKE UP FOR THE ADDED COST. YOU CAN'T AFFORD LESS. WHY USE AN ORDINARY TOOTHPASTE WHEN YOU CAN USE SHANE? SHANE IS AVAILABLE AT: Complaint 110 F-.T.C.

EXHIBIT F JEROME MILTON/SHANE .

:60 SPOT/LIVE 8/3/83 C ANNOUNCER READS: >} WHY ARE MORE PEOPLE SWITCHING FROM ORDINARY TOOTHPASTE TO PROFESSIONALLY FORMULATED SHANE? HERE ARE TWO SHANE USERS TO TELL YOU WHY.....GARY CLARK OF MILWAUKEE SAID HE COULD NOT BELIEVE HOW FAST HIS COLD SORE HEALED! SHANE TOOTHPASTE IS GOOD FOR EVERY MOUTH TROUBLE. HE SAID SHANE IS FANTASTIC! CARL HIX OF AURORA SAID, IN HIS OPINION, SHANE TOOTHPASTE IS THE GREATEST PRODUCT SINCE THE DEVELOPMENT OF THE WD-40 LUBRICANT. NORMALLY HIS DENTIST IS REQUIRED TO USE AN” AIR-HAMMER”5 1 9 5 3 9 1874 1436 57 21 96.654709 AND3 1 9 6 0 0 931 1496 1174 418 -1 4 1 9 6 1 0 933 1496 1136 25 -1 5 1 9 6 1 1 933 1497 95 22 66.634705 “BELTS 1 9 6 1 2 1051 1496 132 23 83.736526 SANDER”5 1 9 6 1 3 1207 1498 39 21 96.919373 TO5 1 9 6 1 4 1267 1497 116 22 96.236710 REMOVES 1 9 6 1 5 1405 1497 115 23 96.544647 STAINS5 1 9 6 1 6 1540 1498 59 22 93.242828 ANDS 1 9 6 1 7 1618 1499 118 22 90.565575 TARTER5 1 9 6 1 8 1757 1500 77 21 96.055481 FROM5 1 9 6 1 9 1855 1500 57 21 92.823914 HIS5 1 9 6 1 10 1933 1500 136 21 83.570023 TEETH--4 1 9 6 2 0 931 1551 1174 39 -1 5 1 9 6 2 1 931 1563 58 22 95.863579 ANDS 1 9 6 2 2 1011 1563 76 22 96.051765 EVEN5 1 9 6 2 3 1108 1563 93 25 95.490898 THEN,5 1 9 6 2 4 1227 1563 38 23 96.194923 HE5 1 9 6 2 5 1286 1561 138 25 95.875626 DOESN'T5 1 9 6 2 6 1445 1563 115 23 94.977524 REMOVES 1 9 6 2 7 1579 1564 72 23 94.977524 ALL.5 1 9 6 2 8 1697 1565 99 22 95.719955 AFTER5 1 9 6 2 9 1815 1565 20 22 96.501999 A5 1 9 6 2 10 1856 1565 97 22 96.275925 SHORT5 1 9 6 2 11 1975 1551 130 39 96.946861 PERIOD,4 1 9 6 3 0 932 1628 1118 25 -1 5 1 9 6 3 1 932 1629 97 21 95.988113 SHANE5 1 9 6 3 2 1050 1628 197 22 96.083992 TOOTHPASTE5 1 9 6 3 3 1268 1629 136 21 96.764336 REMOVED5 1 9 6 3 4 1424 1629 60 22 96.743286 ALL5 1 9 6 3 5 1504 1629 57 23 95.831390 THES 1 9 6 3 6 1581 1629 115 24 96.575424 STAINS5 1 9 6 3 7 1717 1630 58 22 96.023819 ANDS 1 9 6 3 8 1798 1630 36 23 96.923225 IS5 1 9 6 3 9 1855 1630 136 23 96.363045 WORKINGS 1 9 6 3 10 2013 1631 37 21 96.558807 ON4 1 9 6 4 0 931 1693 1056 26 -1 5 1 9 6 4 1 931 1694 58 22 93.255928 THES 1 9 6 4 2 1010 1694 132 22 91.872322 TARTER.5 1 9 6 4 3 1171 1693 115 23 37.472073 “SHANE5 1 9 6 4 4 1306 1695 197 23 96.659698 TOOTHPASTE5 1 9 6 4 5 1525 1695 34 24 96.919998 IS5 1 9 6 4 6 1581 1695 231 24 95.677574 TREMENDOUS! HE SAID.

HALF AS MUCH SHANE PRODUCES BETTER RESULTS THAN ORDINARY TOOTHPASTE. THE EXTRA BENEFITS MORE THAN MAKE UP FOR THE ADDED COST. YOU CAN'T AFFORD LESS. WHY USE AN ORDINARY TOOTHPASTE WHEN YOU CAN USE SHANE. IT'S AVAILABLE AT: JEROME MILTON, INC., ET AL. 115 104 Decision and Order DECISION AND ORDER The Commission having heretofore issued its complaint charging the respondents named in the caption hereof with violations of Sections 5 and 12 of the Federal Trade Commission Act, as amended, and the respondents having been served with a copy of that complaint, together with a notice of contemplated relief; and The respondents, their attorneys, 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, 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’s Rules; and The Secretary of the Commission having thereafter withdrawn this matter from adjudication in accordance with Section 3.25(c) of its Rules; and The Commission having considered the matter and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 3.25(f) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order:

1. Respondent Jerome Milton, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 4350 West Ohio Street, in the City of Chicago, State of Illinois. 2. Respondent Jerome Milton Schulman is an officer of Jerome Milton, Inc. He formulates, directs, and controls the policies, acts and practices of Jerome Milton, Inc., and his address is the same as that of Jerome Milton, Inc.

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 I.

It is ordered, That respondents Jerome Milton, Inc., a corporation, its successors and assigns, and its officers, and Jerome Milton Schulman, individually and as an officer of Jerome Milton, Inc., and re- Decision and Order 110 F.T.C.

spondents’ representatives, agents, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale, or distribution of Shane toothpaste, any other toothpaste, or any other oral hygiene product in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that any such product: a. cures or alleviates the symptoms of canker sores (recurrent aphthous stomatitis) or cold sores (herpes simplex type I lesions); b. reduces the sensitivity of teeth to hot and cold substances; c. is useful in the diagnosis, cure, mitigation, treatment, or preventtion of disease in man;

d. reduces plaque more effectively than any other toothpaste or oral hygiene product; or e. cures or alleviates the gum problems associated with gingivitis or periodontitis, unless at the time of making such representation, respondents possess and rely upon competent and reliable evidence that substantiates the representation.

For purposes of paragraphs a and b, above, “competent and reliable evidence” shall include at least one adequate and well-controlled, double-blind clinical study that conforms to accepted designs and protocols and is conducted by persons qualified by training and experience to do so;

For purposes of paragraphs d and e, above, “competent and reliable evidence” shall include at least two adequate and well-controlled, double-blind clinical studies that conform to accepted designs and protocols and are conducted by different persons, independently of each other, with such persons being qualified by training and experience to conduct such studies;

For purposes of paragraph c, above, “competent and reliable evidence” shall mean test(s), analysis(es), research project(s), or study- (ies) in which the evidence has been objectively obtained end evaluated by persons qualified to do so, using procedures generally accepted in the relevant profession to yield accurate results; Provided, however, with respect to any representation covered by this part of the order other than a claim concerning superior or comparative efficacy, if the Food and Drug Administration promulgates any standard, or any advisory review panel appointed by the Food and Drug Administration has issued a monograph, establishing that such representation is true, then in lieu of the above studies the respondents may rely on the Food and Drug Administration’s standard or the JEROME MILTON, INC., ET AL. 117 104 Decision and Order panel’s monograph as long as it has not been superseded and remains in effect.

Il.

It is further ordered, That respondents, their successors and assigns, for at least three (3) years after the date of the last dissemination of the representation, shall maintain and upon request make available to the staff of the Commission for inspection and copying copies of, and dissemination schedules for, every advertisement containing any representation(s) about oral hygiene product(s), copies of all evidence relied on for such representation(s), and copies of any document(s) in the possession or control of respondents, their successors and assigns contradicting or qualifying any such representation. II.

It is further ordered, That respondents shall notify the Commission at least thirty (30) days prior to the effective date of any proposed change in the corporate respondent 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 corporation which may affect compliance obligations arising out of the order.

IV.

It is further ordered, That the individual respondent named herein shall promptly notify the Commission of the discontinuance of his present business or employment and, for a period of five (5) years after the date of service of this order, shall promptly notify the Commission of each affiliation with a new business or employment, each such notice to include the individual respondent’s new business address and a statement of the nature of the business or employment in which the respondent is newly engaged, as well as a description of respondent’s duties and responsibilities in connection with the business or employment.

V.

It is further ordered, That the respondents shall distribute a copy of this order to each of the corporate respondent’s operating divisions and to all present and future employees, agents, or representatives engaged in the preparation and placement of advertising and that the Decision and Order 110 F.T.C.

corporate respondent shall secure from each such person a signed statement acknowledging receipt of the order. VI.

It is further ordered, That the respondents shall, within sixty (60) days after the date of service of this order, file with the Commission a report in writing, signed by the individual respondent and a responsible officer for the corporate respondent, setting forth in detail the manner and form in which they have complied with this order. TARRANT COUNTY MEDICAL SOCIETY 119 119 Complaint