American Drug Corporation

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IN THE MATTER OF AMERICAN DRUG CORPORATION COMPLAINT AND ORDER IN REGARD TO Tile ALLEGED VIOLATION OF SEC. ~ OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2170. Com1Jlaint, Apr. !4, 1934-order, Nov. U, 1934 Consent or<ler requiring respondent corporation, in connection with advertisement and sale in interstate commerce of its preparation "Sinasiptec" to desist from representing in advertisements, newspapers, magazines, journals, radio, circular letters, or otherwise, that said preparation wlll cure, pt·event, or relieve sinus trouble, except to the extent that inflammation and swclUng may be relieved through the use that·eof, as specified, or that said preparation has ever cured or prevented sinus trouble, or is an antiseptic.

Mr. Jolm lV. Hilldrop for the Commission.

Fordyce, White, Mayne &: lVilliam-8 and Mr. Wm. F. Fahey, all of St. Louis, Mo., for respondent.

Complaint Pursuant to the provisions of an 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", the Federal Trade Commission, having reason to believe that American Drug Corporation, hereinafter referred to as respondent, has been and is using unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to said 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 ns follows :

P ARAGRAI'II 1. Said American Drug Corporation, respondent, is a corporation organized and existing under and by virtue of the laws of the State of Delaware, having its principal office and place of business in the city of St. Louis, in the State of Missouri. It is, and for more than four years last past has been engaged in the business of manufacturing, selling, and distributing, to dealers, users, and the general consuming public throughout the United States, certain medicinal or therapeutic preparations or products denominated and designated by respondent as "Sinasiptec ", "Sinasiptec Inhalant", "Sinasiptec Ointment", "Sinasiptec Liquid", and "Sinasiptec Salve", which preparations or products are indicated, sold and distributed by respondent for use in the treatment of human ailments, AMERICAN DRUG CORP. 437 436 Complaint such as nasal and head congestion, hay fever, sinus trouble, inflammation, respiratory diseases, and other ailments. Such sale and distribution of said products or preparations is made and promoted by respondent through salesmen and agents employed by it for the purpose, also through and by means of trade promotional literature such as advertisements of said products published by respondent in newspapers, magazines, and other periodicals of general circulation among the purchasing public throughout the United States, and pamphlets, circulars, leaflets, letters, and other forms of communications and advertising matter, published and distributed by respondent to purchasers and prospective purchasers throughout the United States. In distributing said products and in executing the purchase orders therefor respondent caused and causes the same, as and when sold, to be shipped, transported and delivered from its place of business in the State of Missouri, through and into other States and Territories of the United States and the District of Columbia, to the respective purchasers thereof in such other States, Territories, and said District. In the sale and distribution of said products in the course of its business, respondent is and at all times herein mentioned has been engaged in commerce as " commerce " is defined in said act.

PAR. 2. At all times herein mentioned there have been and are various and sundry medicinal or therapeutic preparations, appliances, or products manufactured or sold and distributed by persons, partnerships, and other corporations to dealers, users, and the consuming public, in, between, and among the various States and Territories of the United States and the District of Columbia, for the preventtion, treatment, alleviation, or cure of human ailments of the type, kind, or character for the treatment, prevention or cure of which respondent indicates, recommends, and sells its said medicinal preparations. Respondent's said products and the said preparations, appliances, or products of such persons, partnerships, and other corporations are and have been competitive products; and the respondent is and at all times herein mentioned has been conducting its said business and selling and distributing its said products in direct, active competition with such persons, partnerships, and other corporations and with actual and potential competitors generally throughout the United States and in various sections thereof. PAn. 3. In promoting and effecting the sale and distribution of its aforesaid medicinal preparations or products in the course of its business and for the purpose of inducing and causing dealers, users, and consumers to purchase or use said preparations or products, respondent has caused and continues to cause various representations, Complaint 19F.T.C.

statements, and assertions to be made and set forth, in its trade promotional literature and by its salesmen and agents and otherwise, to the purport and effect that each of said medicinal preparations or products of respondent is a specific and an effective and efficacious therapeutic agent, treatment, remedy, and cure for, and will prevent, relieve, and cure sinus headaches, sinus pains, sinus inflammation, sinus infections, and all other sinus troubles, hay fever, catarrh, colds, respiratory inflammation, and diseases and rhinitis in any person using or applying said preparations or products. In the course and conduct of said business respondent has adopted the word "Sinasiptec" and has named, designated, and described said products and preparations with such word "Sinasiptec ", with the purpose, tendency, and effect of thereby representing to the purchasing and consuming public, directly and by implication, that each such preparation or product so named and designated by it is a specific and a therapeutic agent or remedy indicated for, and will prevent, relieve, and cure sinus inflammation, sinus infection, and any sinus trouble or diseased condition of the sinus. Said representations, statements, and assertions made by respondent, and its use of said term "Sinasiptec" are and have been false, misleading, and deceptive in that none of such medicinal preparations or prod.; ucts of respondent is a specific for, or a therapeutic agent or remedy indicated for any of said diseases or ailments, nor will any of said preparations or products cure, prevent, or relieve said ailments or diseases or any of them, nor is any such medicinal preparation or product of respondent an effective, competent, or efficacious treatment, remedy or cure for such ailments or diseases, or any of them. Among such false, misleading and deceptive representations, statements and assertions published and circulated by respondent in its aforesaid trade promotional literature are the following: DOOTORS WARN AGAINST SINUS INFECTION Worst colds, catarrh, sore throat, headaches, caused by germs that settle in the sinus passages. Physicians tell how coughs, laGrlppe, flu, pneumonia can follow 1t sinus condition is neglected. Thousands of people here, who formerly sutl'ered the painful pressure and stuffiness of threatened sinus trouble, now breathe freely since using Slnasiptec, the sensational discovery of a St. Louts doctor. Within :S seconds after using a little Sinasiptec in warm water, the head clears, and within a day the stutred up nasal condition dries up. The faithful use of Slnas!ptec In this way bas no doubt saved many folks from dangerous surgical operations and hospital bills.

Long continued colds, headaches, excessive nasal discharge, accumulation of phlegm likewise vanish when the nasal passages are bathed dally with Slnaslptec. A large bottle of Blnaslptec costs little and Is guaranteed to bring results, or money back. • • • AMERICAN DRUG CORP. 439 436 Complaint YI!!ABS OF UNBEARABLE SINUS PAIN CAN Now BE Avoided Any peraon amlcted with severe sinus trouble can tell you there Is no human pain so terribly unendurable. Even surgical operations bring no relief from the excruciating torture In many cases. Besfdea, sinus infection brings other treacherous diaeaaC$ that tear down bodily health. Be warned by frequent head colds, catarrh, mouth breathing, snoring, pressure at the bridge of the nose, congested nasal passages, headaches above the eyes, spells of temporary deafness, inflamed and phlegm-coated throat, bad odor from nasal mucous throat discharges.

Slnaslptec Is a doctor's discovery for safe protection against threatened sinus trouble. It quickly clears the nose and washes away the fetid matter congested In the passages.

Thousands who formerly feared sinus Infection, now prevent colds and other respiratory diseases, have a clear head, and breathe freely, since using Sinasiptec In warm water, as a twice-daily nasal bath. It's so easy and pleasant I The Sinaslptec treatment soon becomes a fine health habit, like brushing the teeth I SINASIPTEC (Pronounced "Sina-siptek ") Hay Fever?-Sinasiptec prevents-by a New Method Sbuuiptoo Ointment acts quickly when used in both acute and more prolonged conditions. Where the nose Is congested on one side or the other, and the case Is one of longer standing, a fresh cold is apt to aggravate the condition and make the swelling more pronounced. A simple cold will congest the mucous membranes In the nose and cause one side or the other, or even both sides of the nose to become engorged and create that stutry and clogged feeling ln the head. In both such Instances mentioned above Sinasiptec Ointment Is a highly effective treatment and may be applied to advantage at the very Inception of a Head Cold or at any stage during the progress of a cold and as an after treatment.

HAY FEVER Successfully treated by New Method Thousands of people who formerly suffered the misery of hay fever, have already found Sinasiptec a genuine blessing. Actual letters on file from enthusiastic and grateful users, show this treatment to be a magnificent success. Right now Is the time to start using Slnaslptec. Use in warm water In a nasal douche and bathe nasal passages regularly. It wlll give your bend a gloriously clear feeling. You wlll breathe with ease. Headaches and sinus "flare-ups" wlll become n rarity. And above all, you w111 be building up that' nasal strength which staves otr the ugony of Hay Fever and RoRe Cold. 440 FEDERAL TRADE COMl\IISSION DECISIONS Complaint 19F.T.C.

WHAT Do You KNOW ABOUT liAY FI!.."'VER7 How a St. Louis doctor disco\·ered Sinasiptec and forever solved the prob· lem-milions can now be saved from suffering. Gradually the preparation got used locally for other conditions-notably catarrh, sinus headaches, and sinus pains. And It came to be known as Slnasiptec.

The funny point Is that Sinasiptec became so well known nationally for sinus conditions, that its original use, bay fever, remained largely confined to St. Louis.

Now we are broadcasting the virtues of Siuaslptec 11s a bay fevt>r remedy, and believe the druggists of America will do a good business on 1t this summer.

If you have among your customers any hay fever sutrerers, tell them about Sinasiptec.

P .AR. 4. The use by the respondent of the false, misle~ding, and deceptive representations, statements, and assertions as hereinabove set forth, have and had the capacity, tendency, and effect of misleading and deceiving the purchasing public into the erroneous belief that said statements, representations, and assertions are true in fact and purport, and of causing members of the purchasing public to buy and use respondent's said preparations or products in such erroneous belief. A capacity, tendency, and effect of the use of such false, misleading, and deceptive !representations, statements, and assertions by respondent are (a) to prejudice and injure the public in that said products do not and will not accomplish or bring about the beneficial or curative results claimed therefor in said false, misleading, and deceptive representations hereinabove described; and (b) to prejudice and injure respondent's competitors in their business by tending to create and instill prejudice and distrust in the minds of purchasers and prospective purchasers against competing products indicated and sold for the treatment of the ailments of the type hereinabove mentioned; and further, in that said false, misleading, and deceptive representations of respondent attract custom and trade to respondent's said products, thereby unfairly diverting and tending to unfairly divert trade and custom from competitors' products, and (c) to otherwise prejudice and injure the public and respondent's competitors.

PAR. 5. The said false, misleading, and deceptive acts and practices as used by respondent are methods of competition which are unfair and which are prejudicial and injurious to the public interest and to legitimate trade and commerce in medicinal or therapeutic pr~para­ tions, agents or appliances for the prevention or treatment of human AMERICAN DRUG CORP. 441 436 Order ailments, particularly the human ailments hereinabove mentioned; and said false misleading and deceptive acts and practices as used Ly respondent constitute unfair methods of competition in commerce in violation of Section 5 of the Act of Congress entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", approved September 26, 1914. ORDER TO CEASE AND DESIST This proceeding having come on for final hearing by the Federal Trade Commission upon the respondent's amended answer, waiving all further proceedings and consenting that the Commission may make, enter, and serve upon it an order to cease and desist from the methods of competition charged in the complaint, pursuant to paragraph 2 of rule III of the Commission's Rules of Practice, and the Commission being fully advised in the premises- It is now ordered, That in the advertising and sale in interstate commerce of its certain preparation and article of merchandise known, designated, and described as Sinasiptec, the respondent cease and desist from representing by advertisements in newspapers, magazines, journals, radio, circular letters, or otherwise, that its certain preparation, known and designated as Sinasiptec, will cure, prevent, or relieve sinus trouble (except that by the use of said preparation, known and designated as aforesaid, as Sinasiptec, sinus trouble may be relieved to the extent that by its use the upper nasal passages, intersecting with the sinus passages, may be cleaned out, so that the sinus may properly drain and that by the use of said Sinasiptec inflammation and swelling may also be relieved) andjor that said preparation known and designated as Sinasiptec has ever cured or prevented sinus trouble, or that said Sinasiptec is an antiseptic. It is further ordered, That the respondent shall, within 60 days after service upon it of a copy of this order, file with the Commission, a report in writing, setting forth in detail the manner and form in which it has complied with and conformed to the order to cease nnd desist hereinbefore set forth.

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Syllabus 19F.T.C.