Kelpe'Koe, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE MATTEU OF KELPE'KOE, INC., AND C. C. HANSON COMPLAINT, FINDI:XGS, AND ORDER IN REGAUD TO Tim ALLEGED VIOLATION OF SEC. li OF AN AC'.r OF CONGUEf.\S .\l'l'HOVED SEPT. 26, 1914 Docket 2JJJ. Co111plainf, Apr. 6, J!J.JJ-Dcdsion, July 24, 1931 Where a corporation eugaged In sale and distribution of "Kelpe'Koe," alleged meuieiunl prPparat!on, purported to possess therapeutic or curative proper·ties, thr·ongh sales, prlncipi!lly, dirPI't to users thereof, and an Individual, ageut, and represPntatlve therpof, engaged in sale and distribution of said product direct to ultimate users, principally, in various States; in adverthdng their said prl'pnrutlon tht·ough distribution of circulars, leaflets, booklets, form letters, and other pr·inted advertising matter- (a) Fals!'ly rl'presented and implied that said prPparntion might with safety be substituted for product Insulin In treatment of diabetes, and that it would cure or be of substantial benefit In treatment of some twenty-five or twentysix other ailments, afflidions, diseases, and conditions, including nervous disorders, undue fatigue, neuriti~. rhl.'umutism, arthritis, kldnE'y trouble, etc.;

(b) Fuh;('ly rl'prp,;ent('d and Implied that said preparation was of great benefit as n tonic and bnllder of <'hildreu of all agp~, and more particularly those Who 8showed a tendeney to be haekward, an(} those who were ill-nourished, llcft•etive, stunted, and puny, anl that it would suvply vital elements l'Pqulred by nature in tile building and formation of bone, tissue and cell structure, and provid('d elements required to harmonize glandular activity during childhood;

(c) Fal~>ely represented ami implied that it was an effe<"tive tonic for men and women, and E'Sp('cially RO during the tryh1g perlo!ls of a woman's life, and that Its rpgulnr use exerted a normalizing lnflnenre upon organs anl toned up the RystE'm generally, building up the blood, and that use thereof had an invigorating effect, not temporary, on the body; and (d) l•'falsely repres('nte<l and implied that use thereof would result in remineralization of the body, noti<'l'nbly reflected in a keener expression, more youthful appP.anmel', fte., and that regular use thereof by one in a Wl'ak and run-<lown condition would "bring one power," "quicken the brain and body acth·ities," and make one healthier and happier, etc., and that It suppli<'d the salts necessary to maintain a strong and vigorous body aml insure a greater expectancy for a happier and healthier life; l'acts being only therapeutic value of preparation in qnestlon was as an eliminant, possibly, and as a tonic, possibly, for use by persons suffering from anemia or other ailments requiring an extra amount of iron in the diet, it was not efficacious as a treatment or palliative for diabetes and did not aet In same manner or with same effect as, and was not a sub- Stitute for, insulin, unique prortuct, as long recognized by medical profession, useful in control of said danget·ous and progressively destructive disease, for which no cure is known, and aforesaid representations and implications were grow<sly exaggerated and false, and preparation in Complaint 25F. T. C.

question was not of any benefit as a tonic and a builder of children of all ages, etc., as an effective tonic for men and women, and of any benefit to a woman at any period of her life, and did not have an invigorating or other effect on the body, as hereinabove set forth, or bring about results claimed therefor, and did not cure and was of no substantial therapeutic value in the treatment of any of the enumerated aliments, afflictions, diseases, and conditions: With effect of misleading and deceiving many prospective purchasers of remedies for such ailments, etc., about which said rept·esentations and implications were made, and of causing a substantial portion of such persons erroneously to believe that such representations and implications were true and that preparation In question possessed therapeutic efficacy represented and implied by them, and was a competent and effective treatment and corrective for use in remedying said ailments, etc., for which recommended, and that users thereof, for purposes other than as a treatment for specific aliments, etc., would derive the general benefits represented and implied by them, and of causing a substantial portion of prospective purchasers to buy said preparation, then'bY unfairly and unlawfully diverting trade in commerce to them from competitors engaged in substantial competition with them in offer, sale anu distribution of min· eral salts, drugs, remedies, and other me<licants used and useful in treatment of ailments, etc., for which said "Kclpe'Koe" was rccommcnued, and who truthfully represent their products; to substantial injury of such competitors and to injury of public:

IIeld, '!'hat such acts and practices were to the prejudice of the public and competitors nnd constitutcu unfair methods of competition. Defore Mr. Edward 111. Averill and lllr. lV. lV. Sheppard, trial examiners.

11/r. John lV. llilldrop and lllr. Edw. lV. Thomerson for the Commission. ' llfr. Guston T. Fitzhugh, of Memphis, Tenn., for respondents. Complaint Pursuant to the provisions of an Act of Congress, approved September 26, 1914, and 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 Kelpe'Koe, Inc., a corporation, and C. C. Hanson, hereinafter re· ferred to as respondents, have been and are using unfair methods of competition in commerce as "commerce" is defined in said act of Congress, and it appearing to said Commission that a proceed· ing by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARACRAPII 1. Respondent Kelpe'Koe, Inc., is a corporation or· ganized, existing, and doing business under and by virtue of the !aws of the State of Arizona, with its principal office and place of KELPE'KOE, INC., ET AL. 599 5!)7 Complaint business in the city of Seattle, State of ·washington. It is now and has been for more than two years last past engaged in the distribution and sale in both liquid and solid form, of a shale-like mineral of alleged therapeutic or curath·e properties which it designates as "Klepe'Koe". In solid form this mineral is a shale-like day containing iron and aluminum sulphates with a trace of sulphur, and in liquid form it is an aqueous solution of. iron and aluminum sulphates with traces of calcium, magnesium and potassium salts. When this said product of said respondent, designated as aforesaid as Kelpe'Koe, is packed or bottled, the said respondent causes the same when sold. to be transported from its said. place of business in Seattle, Wash., into and through the various other States of the United States of America for delivery to the purchasers thereof located in such various other States of the United States. In the udvertising and in the promotion of the sale of said Kelpe'Koe between anJ. among the various States of the United States, the said ~·respondent transmits through the mails of the United States from lts said principal place of business to various and divers places in the several other States of the United States, circulars, leaflets, and other advertising literature, soliciting various persons in the different States of the United States to buy said product, Kelpe1Koe. . Hrspondent, C. C. Hanson, is a resident of the city of Memphis 111 the State of Tennessee, and is an agent of said respondent Relpe'Koe, Inc., in the sale and distribution of the aforementioned Products sold and distributed by said Kelpe'Koe, Inc. From his Place of business in the city of Memphis, Tenn., the said C. C. ~anson ships the said product aforesaid known and designated as h.elpe'Koe, into and through divers other States of the United States, to various customers and purchasers who have bought said Product, and from the said city of Memphis, Tenn., said respondent, C. C. Hanson, transmits through the United States mails, pamphlets, l('aflets, and circulars furnished him by said respondent Kelpe'Koe, Inc., in the selling and the promoting of sales of Kelpe'Koe in com- Inerce between and among the various States of the United States. ln the course and conduct of the business aforesaid, both re- ~Pondents are and have been at all times hereinafter referred to, 111 substantial competition with other individuals and corporations and with partnerships, associations, and firms engaged in the sale and distribution in interstate commerce of mineral salts, drugs, remedies, and other meJ.icants of therapeutic value. par. 2. In the course and conduct of their business aforesaid the said respondents in soliciting the sale by them of said Kelpe'K,)e in Complaint 25F.T. C.

commerce among the various States of the United States, have represented and still represent by circulars, leaflets, labels, and other advertising matter, through and by means of the United States mails, that Kelpe'Koe, in both liquid and solid form, and when used either externally or internally, according to directions, will bo of substantial therapeutic benefit, remedy, and cure for nervous disorders glandular trouble arthritis anemia prostate trouble abnormal blood pressure undue fatigue liver trouble constipation asthma eczema indigestion catarrh rickets feminine disorders neuritis diabetes goiter lumbago mal-nutrition !'exual weakness acidosis general debility llropsy stomach ulcers hay fe,·er Rkin infections kidney trouble rheumatism and hemorrhoids; that Kelpe'Koe has been found a great benefit as a tonic and builder of children of all ages, particularly those who show a tendency to be backward, ill-nourished, defective, stunted, and puny, that it supplies vital elements required by nature in the building and formation of bone, tissue, and cell structure, and provides elements required to harmonize glandular activity at this important time of life; that it is an effective tonic for \Yonwn us well as for men; that for all ages during the trying periods of a woman's life, including ndolesence, pregnancy, and the menopause, the regular use of Kelpe'Koe exerts a normalizing influence upon the organs and tones up the system generally; that it is a powerful blood builder and tonic, and has a remarkable invigorating effect which is not tempc:rary in duration; that the remineralization of the body through th~ Kelpe'Koe treatment is noticeably reflected in a keener expression, clearer complexion and more youthful appearance; that if one is in a weak and run-down condition, the regular use of Kelpe'Koe should bring one power, quicken the brain and bodily activities, and make one healthier and happier; that Kelpe'Koe supplies the body with the mineral salts rf'quired in maintaining a strong and vigorous body, and that the use of Kelpe'Koe assures a greater expectancy for a happier and more healthy life.

PAR. 3. In truth and in fact the said product of respontlents, Kelpe'Koe, was not and is not in either liquid or solid forlll and when used either extemally or internally, according to directions, or in any other way, of substantial therapeutic benefit, remedy, or cure for H:ELPE'KOE, INC., ET AL. 601 597 Complaint nervous disorders glandular trouble arthritis anemia prostate trouble abnormal blood pressure Undue fatigue liver trouble constipation asthma eczema indigestion catarrh ricliets feminine disorders neuritis diabetes goiter lumbago mal-nutrition sexual weakness acidosis general debility dropsy ~tomach ulcers hay fever skin infections kidney-trouble rheumatism and hemorrhoids; '1\:elpe'Koe has not been found, nor is it of great benefit nor of any benefit, as a tonic or builder of children of all ages, particularly ·those who show a tendency to be backward, ill-nourished, Jefective, stunted, and puny; it Joes not supply vital elements required by nature in the building of bone, tissue and cell structure; it does not provide elements required to harmonize glandular activity at this important time of life, and it is not an effective tonic for women as Well as for men; for all ages during the trying periods of a Woman's life, including adolescence, pregnancy, and the menopause the regular use of Kelpe'Koe will not exert a normalizing infbence ~1Pon the organs, nor will it tone up the system generally; Kelpe'Koe Is not a powerful blood builder and tonic; it has no invigorating ~ffect which is not temporary in duration; the reminemlization of the body through the Kelpei(oe treatment is not noticeably reflected in a keener expression, clearer complexion and more youthful appearance; if one is in a weak and run-down condition the regular lise of Kelpe'Koe will not bring one power, quicken the brain nnd Lodily activities and will not make one healthier and happier; !\:elpe'Koe does not supply the body with the mineral salts required 1h maintaining a strong and vigorous body, and the use of Kelpe'Koe ~oes not assure a greater expectancy for a happier and more healthy hfe.

PAn. 4. The respondents in the conduct of their s:ticl business between and among the various States of the United States, by their advertisements, consisting of circulars, labels, pamphlets, personal letters and other forms of publicity, which are mailed to various customers and prospective customers, and to certain of the public at large in the various States of the United States of America, while not claiming that said product designated aforesaid ns Kelpe'Koe is a cure for diabetes, yet by suggestion, implication, and innuendo, ~ndeavor to create, and do create the impression that said Kelpe'Koe ~s a cure for diabetes, and that it is superior as a treatment for diad~tes to insulin. 'Vhile not directly advising diabetic patients to lscontinue the use of insulin and to use in its room and stead said FEDERAL TRADE COl\IMISSION DECISIONS602 Complaint 25F.T.C.

Kelpe'Koe, yet the general tenor and purpose of its said advertisements have a tendency and capacity to create on the minds of diabetic patients the belief and impression that Kelpe'Koe as a treatment for diabetes is superior to insulin, and that insulin should be discontinued by them and Kelpe'Koe substituted in its room and stead. PAn. 5. In truth and in fact, respondents' said product, Kelpe'Koe, is not a cure, remedy, or palliative for diabetes, and is in no sense superior to the insulin treatment which for a number of years has been recognized by the medical profession, both in the United States of America and in other countries, as the approved, standard and· regular treatment for diabetes, and has been, and is now extensively used therefor.

The said mineral material contained in Kelpe'Koe in both solid and liquid form, and when used externally or internally or both, according to respondents' directions, acts and operates as an antiseptic astringent mineral oil, and will not act and operate as a benefit, remedy, or cure to or of persons afilictecl with the maladies and diseases heretofore set out, and has little or no therapeutic value for any disease.

PAn. G. The foregoing misrepresentations and exaggerations advertised, published, and distributed by respondents in the manner and form as aforesaid, in interstate commerce, are calculated to, and do have a tendency and capacity to mislead and deceive the public, and particularly that portion thereof which is suffering from various forms of human ailments hereinbefore set out, by creating in their minds the erroneous impression and belief that by purchasing and using respondents' Kelpe'Koe according to directions, they will be benefited, remedied, or cured of their diseases and ailments. l3y such misrepresentations and exaggerations the purchasing public, and particularly that portion thereof which is suffering from the various forms of human ailments hereinbefore set out, are induced to purchase respondents' said Kelpe'Koe under the erroneous impressions and with the erroneous beliefs hereinbefore stated. PAR. 7. The foregoing misrepresentations and exaggerations of facts have a capacity and tendency to, and do unfairly divert trade to respondents from other individuals, corporations, associations, and firms selling and distributing in interstate commerce similar or like products and remedies to that of respondents' Kelpe'Koe, but which are honestly and truthfully advertised and labeled; thereby substantial injury is done by respondents to substantial competition in interstate commerce.

PAR. 8. The acts and things done as herein alleged by respondents are to the prejudice of the public and the competitors of the respond- KELPE'KOE, INC., ET AL. 603 597 Findings ents and constitute unfair methods of competition in commerce within the intent and meaning of Section 5 of an Act of Congress, entitled, "An Act to create a Federal Trade Commission, to define its po,vers and duties, and for other purposes," approved September 26, 1914. REPORT, FINDINGS AS TO THE FACTS, AND ORDER . 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, on April 6, HJ35, issued, and thereafter ~served its complaint in this proceeding upon respondents Kelpe' Koe, Inc. and C. C. Hanson, charging them with the use of unfair methods of competition in commerce in violation of the provisions of said act. After the issuance of said complaint, and the filing of respondents' answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by John ,V. liilldrop, attorney for the Commission, before Edward M. Averill, an examiner of the Commission theretofore duly designated by it, llo testimony or other evidence was offered in opposition to the allegations of the complaint; and said testimony and other evidenet~ Were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearing before 1he Commission on the complaint, the answer thereto, testimony and other evidence and brief in support of the complaint; and the Com- ~ission having duly considered the same, and being now fully ad- Vlsed in the premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS PARAGRAPH 1. The respondent Kelpe]Coe, Inc. is a corporation organized under the laws of the State of Arizona, and has its office ?nd principal piace of business in the city of Seattle, State of Washlngton. The respondent is now and has been for more than two Years last past engaged in the sale and distribution of an alleged llledicinal preparation, purported to possess therapeutic or curative Properties, under the name Kelpe'Koe.

Respondent markets the preparation Kelpe'Koe principally ~hrongh sales direct to the users lhereof located in the several States of. the United States and in the District of Columbia, and causes Paid preparation Kelpe'Koe when sold to be transported from its Place of business in Seattle, 'Vash., to the said purchasers thereof 604 FEDERAL TRADE COl\Il\!ISSION DECISIONS l!'indlngs 25F.T.C.

located at various points in the said several States of the United States other than the State of Washington and in the District of Columbia.

PAR. 2. The respondent C. C. Hanson is an individual residing in the city of Memphis, in the State of Tennessee, and he acts as an agent for and the representative of the respondent Kelpe'Koe, Inc. in the sae and distribution of said preparation Kelpe'Koe. He maintains an office and principal place of business in the city of :Memphisr Tenn., from which point he solicits customers in nearby States. The respondent C. C. Hanson sells the preparation Kelpe'Koe principally direct to the ultimate users located in various of the States of the United States and causes said preparation when sold to be transported from his said place of business in the city of 1\Iemphis, State of Tennessee, to the purchasers thereof located nt various points in the several States of the United States other than the State of Tennessee.

The respondents Kelpe'Koe, Inc. and C. C. Hanson have acted to· gether and cooperated with each other in doing the acts and things hereinafter set out.

PAR. 3. Uespondents Kelpe'Koe, Inc. and C. C. Hanson, in offering for sale, selling, and distributing the preparation "Kelpe'Koe'' in commerce, as above set out, are in substantial competition with other corporations and individuals and with partnerships, firms, and associations engaged in said commerce in offering for sale, ~selling, and distributing mineral salts, drugs, remedies, and other medicants possessing therapeutic and used and useful in the treatment of the ailments, afllictions, diseases, and conditions for which the respondents recommend the preparation "Kelpe'Koe." PAn. 4. The preparation "Kelpe'Koe'' is a "n~tuml" product "mined" in the State of Ort>gon from what are claimed to be crysta1Iized deposits of kelp, or seaweed, found underground. An analysis of the preparation "Kelpe'Koe" on April 27 1935, by The A. L. Kinsely Chemical Laboratory of Seattle, Wash., produced the results indicated in the following report: G:iG5 Sample KELPEKOE ORE taken from package.

Kl'lpekoe Inc.

Rayview Dldg.

Seattle, Washington.

Grntlem!'n: Submitted sample ot "KI'lpekoe Ore" has been analyzed and tbe results are as follows:

Water soluble portion amounted to 17.76o/o and the analysis was made on the dried water soluble portion.

KELPE'KOE, IN,c., ET AL. 605 597 Fintllngs Water soluble Calaulated to flOrtion original ore l!'errous Sulphate--------------------------- 28. 45% 5. 05% l!'erric Sulphate----------------------------- 21. 58% 3. 83o/o Aluminum Sulphate------------------------ 28. 00% 5.13% Nickel Sulphate----------------------------- 0. 45% 0. 08% l\Ianga nef'e Sulphate________________________ 0. 32% 0.05% Calcium Sulphate--------------------------- 2. 78% 0.4\)o/o 1\Iagnel>ium Sulphate ________________________ 11. SO% 2. 0!}% Sotlium Sulphate___________________________ 2. 92% 0. 52o/o Sodium Chloride---------------------------- 0.189'o 0.03% Sodium Phosphate-------------------------- 0. 20'/o 0. (}!'(o Potassium Sulphate------------------------- 0. 4G% 0.44% silica -------------------------------------- 0. 13% 0. 02% Copper------------------------------------- Trace Truce Co!Jalt ------------------------------------- Tmce Truce Iodine-------------------------------------- Trace Trace Lithium------------------------------------ Trace Trace Nitrates, NltrlteS--------------------------- Trace Trace Cnrhonn tes --------------------------------- Trn<"e Trace The preparation is sold in its natural state and is "put up" in capsule form. The user of the preparation in its natural state concocts a tea for drinking by brewing the "ore," and the user of the Preparation- in capsule form uses it us purchased by taking the capsules by mouth.

PAR. 5. The respondents advertise the preparation Kelpe'Koe by distributing circulars, leaflets, booklets, form letters and other Printed advertising matter. In said advertising matter, respondents hlake many representations and implications concerning the therapeutic efficacy of the preparation Kel pe'Koe and concerning the symptoms, and the treatment and cure, of various of the ailments, ufllictions, diseases, and conditions from which mankind suffers. Many representations and implications are made concerning the benefits which users derive from Kelpe'Koe, other than as a treatment for specific ailments, afllictions, diseases, and conditions. In saill advertisements, respondents represent and imply that the Preparation Kelpe'Koe when used according to directions will cure ?r be of substantial therapeutic benefit in the treatment of the follow- Ing ailments, nftlictions, diseases, nnd conditions: nervous disorders stomach ulcers mal-nutrition anemia kidney trouble general debllity Undue fatigue glandular trouble hay fever asthma prostate trouble rheumatism catarrh liver trouble arthritis neuritis eczema abnormal blood lumbago rickets pressure aeidof;is diabetes constipation Findings 25 F. 'l'.l'. Indigestion sexual weakness and feminine disorders dropsy hemorrhoids. goiter skin infections The preparation Kelpe'Koe will not cure, nor is it of substantial therapeutic benefit in the treatment of the above enumerated. ailments, afllictions, diseases, and conditions. In said advertisements respondents represent and imply that the preparation Kelpe'Koe is of great benefit as a. tonic aml builder of children of all ages, more particularly those who show a tendency to be backward. and those who are ill-nourished, defective, stunted, and puny, that it will supply vital elements required. by nature in the building and. formation of bone, tissue and cell structure, and that it provides the elements required to harmonize glandular activity <luring childhood. Respondents also represent and imply that the prepa.ration Kelpe'Koe is an effective tonic for men and women, especially so during the trying periods of a woman's life, such as adolescence, pregnancy and the menopause and that its regular use exerts a normalizing influence upon the organs and tones up the system generally, lmilJing up the blood. Respondents also represent and imply that the u<>e of the preparation Kelpe'Koe has an invigorating effect on the human body, which is not temporary in its <lurution, and that the remineralization of the houy through the use of the preparation is noticeably rcflecteu in a "keener expression," "clearer complexion" and a "more youthful appearance." Respondents also represent and imply that, if one is in n weak and run-down condition, regular usc of the preparation will ''bring one power," "quicken the brain anu body activities" and make one healthier anu happier, and that its use supplies the body with the mineral salts necessary to maintain a strong niHl vigorous bouy and assures a greater expectancy for a happier and healthier life.

The preparation Kelpe'Koe is not of great benefit, or of any benefit at all, as a tonic or builder of children of all ages, anu is of no benefit to children who are backward, ill-nourished, defective, stuntrcl or puny, and it does not supply vital elements requirl'cl by nature in the building and formation of Lone, tissue, and cell structure, and it does not provide the elements required to harmonize glandular activity during childhood. The prrparation Kelpe'Koe is not an effective tonic for men and women and is of no benefit to a woman at•• any• period of her life, nn(l its rerrularb use docs not exert a normal- 1zmg mfluence upon the organs anu tone the system generally, nor docs it build up the blood.

The use of the preparation Kelpe'Koe J.oes not have an invigorating effect on the human holly. It docs not result in remincralization KELPE'KOE, INC., ET AL. 607 597 Findings of the human body nor does it result in a "keener expression," "clearer complexion," or a "more youthful appearance." The use of the preparation Kelpe'Koe will not "bring one power," "quicken the brain and body activities," and "make one healthier and happier" nor will it supply the body with the mineral salts necessary to maintain a strong and vigorous body, nor does it assure one of a greater expectancy for a happier and healthier life.

PAn. 6 In said advertisements, repondents represent and imply that the preparation Kelpe'Koe may be substituted for insulin as a treatment or palliative for diabetes. The preparation Kelpe'Koe is not efficacious as a treatment or palliative for diabetes, and will llot and does not act in the same manner or with the same effect as, and is not a substitute for, insulin in the treatment and control of <liabetes. For many years insulin has been recognized in the medical profession !lS the one product useful in the control of diabetes, which lS a dangerous aml progressively destructive disease and for which there is no known cure. The representations and implications of lef:;pondents as above stated in regard to the use of the preparation Relpe'Koe as a treatment or palliative for diabetes or as a substitute for the product insulin in the control of diabetes lead many sufferers from this disease to discontinue the use of insulin in the treatment of diabetes and to substitute therefor the preparation Relpe'Koe to the injury of such sufferers. PAn. 7. The representations and implications made by the respondents for the preparation Kelpe'Koe as hereinabove set out are grossly rxaggerated and false, for the preparation does not possess ~he thereapeutic efficacy represented and implied by the respondents, Its only therapeutic value being as an eliminant, possibly, due to the Ptesencc in the preparation of magnesium and sodium sulphate, and us a "tonic," possibly, for usc by persons suffering from anemia or other ailments requiring an extra amount of iron in the diet, due to the presence in the preparation of ferrous and ferric sulphate. P.AR. 8. The representations and implications so used by the re- ~Pondents in connection with the sale of the preparation Kelpe'Koe 111 said commerce, in the manner hereinabove SC't out, have had, and do have, the tendency and capacity to nnd do mislead and deceive ~:any prospective purchas('rs of remedies for the ailments, nffiictions, r !~,;eases, and conditions hereinabove mentioned and about which said t'l)Oltioepre~entutionsn of sue11 andpersonsimplicationsrrroneousare1y tomade,b c1·1eveandt l tatcausesal'da representa-substantial l:ons and implications are true and that the preparation Kclpe'Koe srossesses the therapeutic efficacy represented and implied by the rc- )Ondents, ::mel that it is a competent and effective treatment and 158121m---3D----4l Order 251~. T.C. corrective for use in remedying the ailments, afttictions, diseases, and conditions for which it is recommended, and that the users of Kelpe'Koe for purposes other than as a treatment for specific ailments, a11lictions, diseases, and conditions will derive the general benefits as represented and implied by the responuents ns hereinabove set out. The acts and practices of the respondent as above ucscribeu cause a. substantial portion of prospective purchasers to purchase the preparation Kelpe'Koe, thereby unfairly and unlawfully diverting trade in said commerce to the respondents from their competitors, as ucscribed in paragraph 3 hereof, who truthfully represent their products, to the substantial injury of such competitors anu to the injury of the public.

CONCLUSION The aforesaid acts and practices of the respondents Kelpe'Koe, Inc., nnd C. C. Hanson are to the prejudice of the public and of the responuents' competitors, and constitute unfair methods of competi· tion in commerce, within the intent and meaning of Section 5 of an Act of Congress, approved September 2G, 1914, enf itlec1 "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Conl' mission upon the complaint of the Commission, the uns,ver of the respondents, testimony and other evidence taken before Ed ward ~r. Averill, an examiner of the Commission theretofore duly designated by it, in support of the allegations of the complaint, und brief in. f.support of the complaint (no brief having been filed by the re· spondents and no request for oral argument having been made)t tnd the Commission having made its findings as to the facts and its conclusion that the respondents have violated 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."

It i8 ordered, That the respondents Kelpe'Koe, Inc., a corporation, its officers, agents and employees, and C. C. Hanson, his representa· tives, agents, and employees, in connection with the offering fol' sale, sale and distribution of the product now known as, and sold under the name, Kelpe'Koe, or any other product or preparation, under whatever name sold, composed of similar inO'redients and possessing therapeutic properties similar to the produ~t Kelpe'J(oet KELPE'KOE, INC., ET AL. 609 597 Order in interstate commerce or in the District of Columbia, forthwith cease and desist from representing, directly or by implication: 1. That the use of said preparation will cure, or be of substantial benefit in the treatment of, the following ailments, affiictions, disloses and conditions:

nervous disorders rheumatism abnormal blood pressure undue fatigue arthritis indigestion asthma acidosis feminine disorders catarrh l'.tomach ulcers goiter neuritis kidney trouble sexual weakness lumbago glandular trouble <lropsy diabetes prostate trouble skin Infections tnal-nutrltion li\·er trouble hemorrhoids; general debility eczema l"tay fever rickets 2. That said preparation provides the elements required to harmonize glandular activity during childhood or that it will supply vital elements required by nature in the building and formation of bone, tissue and cell structure;

3. That said pn•paration is an effective tonic for use by women during adolescence, pregnancy and the menopause, or that its regular use will exert a normalizing influence upon the organs and tone Pp the system gcn£'rally or build up the blood; 4. That the use of said pr!'paration will result in remineralization of the body or that its use will supply the body with the mineral !ialts necessary to maintain a strong and vigorous body; 5. That said preparation may, with safety, be substituted for the Product insulin in the the treatment of diabetes; G. That said preparation has any therapeutic value except as an l'lirninant and as n "tonic" where additional iron in the diet is indicated.

It i.y further m·dered, That the respondents shall, within GO days after service upon them of this ordert file .. with the Commission. a report in writing setting forth in detail the manner and form in ''"hi<.:h they have complied with this order. Syllabus 25 F. T. C.