Hogan Advertising Co

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IN THE M.\TIER OF HOGAN ADVERTISING COMPANY, TRADING AS THE SENDOL COMPANY COMPJ,AINT, FINDINGS, AND ORDER IN REGARD ~1'0 THE ALLEGED VIOLATION OF SEC. 5 OF AN AC'l' OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2881. Complaint, July 24, 1936-Dccision, !Jlay 1.S, 19.37' Where a corporation engaged in the sale and distribution of a proprietary med- Icine designated and known as "Sendol" and as alleged remedy for colds, headaches, and pains; In advertising the same in newspapers, magazines, pamphlets, by radio, and through testimonials and otherwlse- (a) Fnli"cly represented that said product was a safe medicine to administer in all cases and was a safe remedy to give to children; and (b) Falsely represented that it was effective and reliable in all cases of muscular, rheumatic or neuralgic aches and pains, and afforded quick relief In all cases of headaches, colds, aches or pains, and was an efficacious remedy in cases of nervousness or nervous exhaustion; With effect of misleading and deceiving substantial portion of purchasing public into the erroneous belief that said representations were true, and with result that consuming public, ns a direct consequence of mistaken and erroneous beliefs Induced by such false and misleading statements and representations, purchased substantial volume of its said product, and trade was unfairly diverted to It from those of its competitors engaged in sale and distribution of products prepared for and sold as remedif'S for colds, headaches, and muscular aches and pains, and who truthfully advertise and represent the therapeutic value, and the effects to be derived from the use of, their said products; to the substantial Injury of competition in commerce: Ilcld, ']'!tat such nets and 11r11ctices were to the prejudice of the public and competitors and constituted unfair methods of competition. Defore 11/r. Roberts. II all, trial examiner. iJlr. Dewitt T. Puckett for the Commission. JJir. Terence 111. O'Brien, of Kansas City, Mo., for rpspondent. Col\IPLAINT Jlur:,uant to the provisions of an Act of Congress, approved September 2G, 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 the Hogan Advertising Company, a corporation, doing business under the firm name and !ityle of the Semlol Company, hereinafter referred to as the respondent, has lJeen ~md is using unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to the said Commis::;ion that a proceeding by it in respect thereof would 'Order published, as modified, as of l\fay 29, l!J37. THE SENDOL CO. 1219 1218 Complaint ?e in the public interest, hereby issues its complaint, stating its charges In that respect as follows :

PARAGRAPH 1. Hogan Advertising Company is a corporation, organized and existing under the laws of the State of Missouri, and h·ading and doing business under the firm name of the Sendol Company, with its office and principal place of business located at Room 1~9 Coates Building, 1008-1010 'Valnut Street, in the city of Kansas City and State of Missouri. Respondent is now and for more than one year last past has been engaged in the sale and distribution, in constant course of trade and commerce between and among the various St~tes of the United States and the District of Columbia, of a pro- }ll'letary medicine, designated "Sendol," an alleged remedy for colds, headaches, and pains. In the course and conduct of its business re- ~Pondent causes said medicine, when sold, to be transported from its place of business in the State of Missouri, into and through variou~ ?ther States of the United States to the purcho.aers thereof located ln other States of the United States and the District of Columbia. PAn. 2. In the course a11d conduct of its business as aforesaid, re- ~Pondent is llow and for more than one year last past has been iu ~ubstantial competition "·ith other corporations, individuals, part.- JJerships, and firms engaged in the business of manufacturing and selling remedies and proprietary medicines in commerce between and among the yarious Stntl's of the United States and the District of Columbia.

PAn. 3. In the course and conduct of its business as aforesaid, by llleans of statements and testimonials, published in magazine and newspaper advertisements, pamphlets, folders, labels, radio broad- ~asting, and otherwise, respondent falsely makes to the general public the following and many other similar and equivalent statements and ~·epret>entations with reference to the efficacy and therapeutic value of Its said product and its effect upon the users thereof: You will like the quick, plensaut actiou of Semlol and the effe>ctive way in ~-which it starts to work to gh·e quick relief from a simple cold, ache or pain ... SE'ndol soothes tired, o\·erworkE'd, frayed nerres, a ud one or two tablets gh·e relief in just a few minutes.

It dissolves almost instantly in the stomach and starts to wot·k immediately to give relief from simple colds, 11s well ns simple headaches, muscular rheumatic 'lind neuralgic aches and pains.

Sendol dissolves almost Instantly In the stomach-and the relief Is immediate. :!'hey nre p£>rfectly safe to take or to give-even to children. They are safe-pleasant-effective-reliable.

In truth and in fact said statements and representations 'n•re aml are ~alse and misleading, in that said "Sendol" is not a safe medicine to give or to take in all cases, and is not a safe medicine to gi,·e to Findings 24F. T.C.

chil<.lren; it is not effective and reliable in cases of muscular rheumatic or neuralgic aches and pains; it does not afford quick relief in all cases of headaches, colds, aches or pttins and it is not an efficacious remedy in cases of nervousness or nervous exhaustion. Said preparit· tion contains aspirin and digitalis and is therefore not safe to administer to all persons or to children.

There are among the competitors of respon<.lent, as mentioned in paragraph 1 hereof, dealers and distributors of products similar in kind and purpose, who do not in any way misrepresent the efficacy ol' therapeutic value of their products.

PAn. 4. The above and foregoing representations as to the thera· peutic value and effects of its product as set forth in paragarph 3 hereof in the course of its advertising, offering for sale and selling its product in commerce as aforesaid, have the capacity and tendency to and do mislead and deceive the purchasing public into the erroneous belief that said product is an effective remedy for the treatment or relief of headaches, colds, aches and pains and have the capacity an<.l ten<.lency t.o and do induce the sai<.l purchasing public, acting in such erroneous belief, to purchase respondent's product., thereby diverting trade to the respondent from those of its competitors who do not misrepresent the efficacy and therapeutic value of their products, and in this way respondent does substantial injury to competition in interstate commerce.

PAR. 5. The above acts and things done or caused to be done by tho responuent corporation were and are eac·h and all to the prejudice of the public and of respondent's competitors, and constitute unfail· methods of competition in interstate commerce within thg meaning and intent of Section 5 of "An Act to create a Federal Trade Coin- • • .1 fi . ,,misswn, to ue ne Its powers and duties, and for other purposes, approvefl September 26, 1914.

REPORT, FINDINGS AS TO THE FACTS, AND Onder Pursuant to the provisions of an Act of Congress, approved Sep· tember 26, 1914, entitled "An Act to create a Federal Trade Corn· mission, to define its powers and duties, and for other purposes," the Federal Trade Commission, on July 24, 1936, issued, and on July 27, 1936, served, its complaint in this proceeding upon respondent, Hogan Advertising Company, a corporation h·adin•., as The Sendol Corn· pany, charging it with the use of unfair' methods0 of competition 111• commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer, the Conl· mission, by order entered herein, granted respondent's motion for per· THE SENDOL CO. 1221 1218 Findings mission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of the complaint to be true and Waiving the taking of further evidence and all other intervening procedure, which substitute answer was duly filed in the office of the Commission. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and the stlbstitute answer, filing of briefs having been waived and no request having b.een made for oral argument, and the Commission having duly con- !,ndered the same and ·being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as to the fact~ and its conclusion drawn therefrom: FINDINGS AS TO THE FACTS !)ARAGRAPH 1. The respondent, Hogan Advertising Company, is a l\bssouri corporation, doing business under the firm name of The Sendol Company. Its place of business is at Room 129 Coates Building, 1008-1010 'Walnut Street, Kansas City, Mo . . It is now and for more than one year last past has been, engaged 111 the sale and distribution of a proprietary medicine designated an~ known as "Sendol," an alleged remedy for colds, headaches, and Prnns. 1Vhen orders are received for Sendol, respondent causes said :Product to be shipped and transported from its place of business in 1\:.ansas City, 1\fo., to the purchasers thereof located in various States of the United States other than the State of Missouri and in ths District of Columbia.

At all times since respondent has been in said business there ha vc ?een other corporations, and firms and individuals, likewise engaged In the sale and distribution of products prepared for and sold as l·emedies or treatments for colds, headaches, and pains, in commerce among and between the yarious States of the United States and in the District of Columbia. Respondent, in the sale and distribution of it~ product is in competition with such other corporations, firms and individuals in such commerce.

PAn. 2. The respondent advertises its said product in newspapers, lllagazines, pamphlt>ts, by radio, through testimonials, and otherwise. Representative of its ad,·ertising claims are the following: You Will like the qultk, vlcus:wt nction of Seudol ond the effective way which 1t starts to wo1·k to give quick rcliPf from a simple rold, ache or pain ... Scudol ;~othes tired, ov<•rwork('(}, frayed IJerws, and one or two tablets give relief in st a few minutes.

It di!lROlY£>s almost instantly in the stomach and starts to work immediately ~- give rcli£>t from simple colds, as well as simple headaches, muscular rheu· atlc and neuralgic aches nnd pains.

Order 24F.T. C.

Sendol dissolves almost instantly in the stonuwh-and the relief is immediate. They are perfectly safe to take or to give-even to children. They are perfectly safe to take or to give-even to children. The representations set forth above are untrue in that Sendol is not a safe medicine to administer in all cases and is not a safe remedy to give to children; it is not effective and reliable in cases of muscular rheumatic or neuralgic aches and pains; it does not afford quick relief in all cases of headaches, colds, aches or pains and it is not an efficacious remedy in cases of nervousness or nervous exhaustion. PAR. 3. The false and misleading statements and misrepresentations made by respondent, in its said advertising, as to the therapeutic value and effects of its said product, have the capacity and tendency to mislead and deceive and have misled and deceived a substantial portion of the purchasing public into the erroneous belief that said representations are tme. As a direct consequence of the mistaken and erroneous beliefs induced by the false and misleading statements and representations above referred to, the consuming public has purchased a substantial volume of respondent's product and as a result thereof, trade has been unfairly diverted to the respondent from those of its competitors, likewise engaged in the business of selling and distributing products prepared for and sold as remedies for colds, headaches, and muscular aches and painsr who truthfully advertise and represent the therapeutic value of and the effects to be derived from the use of their said products. As a result thereof substantial injury has been and is now being done by respondent to competition, in commerce, among and between the various States of the United States and in the District of Columbia. CONCLUSION The aforesaid acts and practices of the respondent Hogan Advertising Company, trading as The Sendol Company, are to the preju· dice of the public and of respondent's competitors, and constitute unfair methods of competition in commerce, within the intent and nwaning of Section 5 of an .Act of Congress, approved September 2G, 1914, entitled. "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes." ORDER TO CEASE AND DESIST 1 This proceeding having been heard by the Fe<leral Trade Coin· mission upon the complaint of the Commission and the answer filed t Published, as modltled, as ot May 29, 1937. THE SENDOL CO. 1223 1218 Order herein on l\lay 11, 1937, by respondent admitting all the material allegations of the complaint to be true and waiving the taking of further evidence and all other intervening procedure, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of an Act of Congress, approred September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

It is ordered, That the respondent, Hogan Advertising Company, a corporation, doing business under the firm name and style o£ The Sendol Company, its officers, representatives, agents, and employees, in connection with the offering for sale, sale aml distribution of a Product now known as "Sendol," or any product containing the same, 0 1' substantially the same, ingredients, sold under that name, or any other trade name, in interstate commerce or in the District of Columbia, do forthwith cease and desist from representing that said Product:

1. Is a safe medicine to give or to take in all cases; 2. Is a safe medicine to give to children;

3. Is an effcctiYe and reliable remedy in cases o£ muscular, rheumatic or neuralgic aches and pains;

4. Afl'ords quick relief in all cases of headaches, colds, aches or pains· ' 5. Is an effective remedy for nervousness or nervous exhaustion. It is further ordered, That the respondent shall, within 60 days ~after service upon it of this order, file with the Commission a report ~n writing, setting forth in detail the manner and form in which 1t lias complied with this order.

1224 FEDERAL TRADE COl\Il\IISSION DECISIONS Syllabus 24 F.T. C.