The Procter & Gamble Company

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IN THE MA 'ITER OP' THE PROCTER & GAMBLE CO~IPANY AND THE PROC- TER & GAMBLE DISTRIBUTING COMPANY SUPPLEMENTAL RKI'ORT, FINDINGS A!'. TO THE F'ACTS, AND ORDER PURSUANT TO MANDATE 01<" COURT Docket 852-Decernbcr 28, 1928 Original findings arid order ln Procter & Gamble Co. et al., 8 F. T. C. 148 et seq., relating to the sale of soap, soap powder, and soap chips containing no naphtha, but a petroleum distillate of kerosene amounting to one-half of 1 per cent by weight, in the case of tlle soap, und 1 per cent in the case of the powder, upon manufacture, nnd not sufficient in the case of any, substantially to enhance their value upon use by the public, and sold umler brands, designations, and advertisements including and/or featuring the alleged naphtha content and the pretended. merits of the products, by reason thereof, modified and supplemented, pursuant to court mandate and stipulations entered into subsequent and incidental thereto, and respondents required to cease and desist entirely from the use of the word naphtha or its equivalent In the brand name, description In advertising, or otherwise in offering for sale (1) soap products In the form of powder or chips, or (2) Its "P & G the white naplltha soup", as made under the formula selected and submitted to the Commission, unless said soap shall have had Incorporated therein, at time of manufacture, a quantity of naphtha equal to ot· In excess of 1.25 per cent by weight thereof; jurisdiction I.Jeing retained over the proceeding to penult such changes ln the order us changes In formula or method of manufacture may require or permit, while stlll Insuring retention at time of sale to consumer, In naphtha named soups and soup products sold by respondent in Interstate commerce, of more than 1 per cent by weight of naphtha.

The above-entitled proceeding heretofore came on for hearing before the Federal Trade Commission, and the Commission, on August 6, 1~24, made its findings as to the facts and conclusion, and. caused its order to issue requiring the respondents above named, to cease und desist from the use of certain practices therein set out 1, whereupon the respondents applied to the United States Circuit Court of Appeals for the Sixth Circuit, to review such order, and said court, on January 5, 1926 2, by its opinion and decree affirmed paragraph 1 1 l:ke case reported<l In 8 F. T. C. nt 148, relating to aud condemning the use of the words "P & G '!'he White Nap!Jtha Soap", "Star Naphtha Washing row<ler ", aud "P & G The White Naphtha Soap Chips " ns the de~i;;nntlons and brnu<ls for soap, soap powder, and soup chip~ containing no nopbth:L but the petroleum distillate consisting of kerosene, and nmountlng, at time of manufacture, to one-halt of 1 per cent, and 1 per cent, In the case of the llr~t two products, subject to complete or partial loss by volatilization subsequent to manufacture and prior to sale In the normal course of trade, to the consuming public, and not present In any of the three In uu amount substantially to enhance tllelr value 111 cleansing power to the public: and also rclutlng to and condemning odvertlscments strt-s~lng the supposeu elllclency and time and strength M;n lug qualities ot the products In question by vh·tue of their naphtha conteut. • Reported In 11 F. (2d) 47.

Findings 12F.T.C.

of said order and vacated paragraph 2 of said order a" and remanded the cause to the Commission with instructions to take such further evidence as it may think necessary and pertinent and to make such further order, if it so desires, in reference thereto as it may conclude to be necessary and proper; and pursuant to such mandate, stipulations were made and entered into by and between counsel for the Commission and counsel for said respondents concerning facts not disclosed by the original record herein, which stipulations have been filed herein as a part of the record in this proceedin"g. Thereupon this proceeding came on for further hearing upon the original record herein, and the stipulations as to facts not disclosed by such original record, and the Commission now being fully advised in the premises adopts and reaffirms its findings as to the facts made herein on August G, 1V24, except in so far as such findings may be modified by these findings, and makes the following additional findings as to the facts:

ADDITIONAL FINDINGS AS TO THE FACTS 1. The soap products heretofore manufactured and sold by re- Fpondents, under the brand names of" Star Naphtha ·washing Powller" and "P & G The White Naphtha Soap Chips" do not contain naphtha to the amount of more than 1 per cent by weight thereof when such products reach the consuming public in the usual course of retail trade. That soap products in the form of powder or chips because of their nature, being composed of finely divided particles, will not retain a volatile ingredient such as naphtha to the extent of more than 1 per cent by weight thereof, up to the end of the period required for the distribution of such products to the ultimate users thereof in the usual and ordinary course of retail trade. 2. That at least DO per cent of the bar laundry soap manufactured and sold by respondents under the brand name of "P & G The 'Vhite Naphtha Soap" is distributed to the consuming public through retail dealers whose average sales approximate 17% boxes of such soap per year each, or approximately 1 box every 21 days; that such soap is a The original order (omitting period fixed tor compllance) required respondents, their ,1gents, etc., to cease and desist from- 1. u~lng the word "Naphtha", or Its equivalent, In the brand name of any soap or sonp product olrered for sale or sold by respondents, or otherwise Incidental to Its nclvertisPment and sale, If and when such sonp or sonp product contains the petroleum distillate !mown and sou ns k~rosene and the word "Naphtha" Is so used to designate the addition of said kerosene to or Its presence In such soap nr soap product; 2. Using the word "Naphtha", or Its equivalent, In the brand name of any soap or sonp product oll'ered tor sale or sold by respondents, or otherwise Incidental to 1ts advertisement and sale, If and when such soap or soap product normally contains nt the time of and upon Its sale to the consuming public, no naphtha or naphtha In nn amount of 1 per cent or less by weight thereof.

THE PROCTER & GAMBLE CO. ET AL. 301 299 Order in the factories and warehouses of respondents, after being packed in boxes and before shipment, and in transit to warehouses of respondents or warehouses of wholesale dealers to whom it is sold, and in storage in such warehouses and in transit from such warehouses to retail dealers, for a period not exceeding 53 days. That the distribution of 90 per cent of the output of the soap so manufactured and sold by respondents, is deemed to be normal distribution of such soap in the usual course of retail trade. 3. That the normal rate of evaporation o£ naphtha put into "P &. G The White Naphtha Soap " as now constituted, up to the end o£ the period required for its normal distribution in the usual course of retail trade, is 16.92 per cent, and if said soap as now constituted, has incorporated into it upon manufacture, a quantity of naphtha equal to 1.25 per cent by weight thereof, such soap will retain a quantity o£ such ingredient, exceeding 1 per cent of the weight thereof, up to the end of the period required for its distribution to the ultimate consumers in the usual course of retail trade. 4. That the bar laundry soap heretofore manufactured and sold by respondents under the brand name of "P & G The "White Naphtha Soap", has not contained naphtha to the amount of more than 1 per cent by "'·eight thereof, when such soap reached the consuming public in the usual course of retail trade. CO:NCLUSION The practices of said respondents, under the conditions and circumstances described in the foregoing findings, are unfair methods <•f competition in commerce, and constitute a violation of the act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ".

SUl'l'LEl\:lENTAL ORDER TO CEASE AND DESIST PURSUANT TO l\'IANDATE Ol' COURT This proceeding coming on for further hearing before the Federal Trade Commission, pursuant to the terms of the mandate of the United States Circuit Court of Appeals for the Sixth Circuit, issued on May 13, 1926, and the Commission having made its report in which it stated its findings as to the facts, and reached the conclusion that the respondents have violated section 5 of an act of Congress approved September 26, 1914, entitled "An act to create a Feder!ll Trade Commission, to define its powers and duties, and for other purposes", Order 12F.T.O.

Now, therefore, it is ordered, That the respondents, the Procter & Gamble Co. and the Procter & Gamble Distributing Co., their respective officers, agents, representatives, servants, and employees, do cease and desist, in the course of commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between ·any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation, from:

1. Using the word "Naphtha", or its equivalent, in the brand name, or in describing in advertising or in otherwise offering for sale, of soap products in the form of powder or chips offered for sale or sold by respondents.

2. Using the word "Naphtha", or its equivalent, in the brand name, or in describing in advertising or in otherwise offering for sale, of its "P & G The White Naphtha Soap " as constituted and made under the same general formula as the soap from which samples were selected and submitted by respondents to the Commission for analysis on or about February 9, 1928, made into bars or cakes for household use offered for sale or sold by respondents, unless such soap has had incorporated therein, at the time of manufacture, a quantity of naphtha equal to or in excess of 1.25 per cent by weight thereof.

3. Since the evidence in this proceeding shows that the quantity of naphtha which must be put into bar soap at the time of manufacture in order that it may retain more than 1 per cent by weight at the time it is sold to the consumer varies with the composition, formula, and methods of manufacture of the soap, jurisdiction of this proceeding is retained in order that such change may be made in the terms of the order as changes in formula or methods of manufacture may require or permit while still insuring the retention, at the time of sale to the consumer, in naphtha-named soaps and soap products sold by the respondent in interstate commerce, of more than 1 per cent by weight of naphtha. 4. This order shall take effect upon service thereof, except that the respondents are allowed 60 days within which to use up labels and advertising matter now printed for use in connection with the sale or offering for sale of its naphtha-named soap powder and soap chips which may be violative of the provisions of this order. It is f'lJil•ther ordered, That the respondents file a report in writing with the Commission within 60 days after the date of service upon them of this order, setting forth in detail the manner and form in which they have complied with such order. MARSAY SCHOOL OF BEAUTY CULTURE ET AL. . 303 Syllabus