Anylite Electric Co

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IN THE MATTER OF ANYLITE ELECTRIC COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. :1 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3"101,. Complaint, Feb. 10, 1939-Decision, May 8, 1939 Where a corporation engaged in manufacture, offer, and sale of an electric device consisting of a coil of wire, or solenoid, in container to be placed around patients, whereby, by means of alternating electric current, electromagnetic field of claimed therapeutic value was created- Represented, through statements appearing on carton in which said product was packed and shipped, and which set forth "Theronold Therapeutic Solenoid The New Way to Health," that use of said device would restore to user thereof normal health, and that lt had therapeutic value, facts being such representation and claim was grossly exaggerated, misleading, and untrue, and said "Theronold" did not possess any therapeutic, remedial, or curative value and would not restore user to normal health; With effect of misleading and deceiving substantial portion of purchasing publlc into erroneous and mistaken belief that said device would, in fact, restore user to normal health, and that it had therapeutic, remedial, or curative value, and of causing substantial portion of such public, because of said erroneous and mistaken bellef thus engendered, to purchase same; to the substantial Injury of a substantial portion of purchasing public in the various States and In the District of Columbia: Held, That such acts and practices were all to the prejudice of the public and constituted unfair and deceptive acts and practices In commerce. Before Mr. John J. Keenan, trial examiner. Mr. James L. Fort for the Commission.

Mr. Arthwr W. Parry, of Fort Wayne, Ind., for respondent. 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 Anylite Electric Co., a corporation, hereinafter referred to as respondent, has violated the provisions of the 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 Anylite Electric Co., is a corporation organized and existing under the laws of the State of Indiana with its principal office and place of business located at 200 Murray Street in the city of Fort Wayne, within the State of Indiana. Said respondent is now and for more than 2 years last past has been engaged A~YLITE ELECTRIC CO. 1571 1570 Complaint in the manufacture, offering for sale, and sale of a device consisting of a coil of wire, or solenoid·, in a container intended to be placed around patients, whereby, by means of alternating electric current, an electromagnetic field of the therapeutic value is said by respondent to be created. The said solenoid has been designated by respondent as a "Theronoid." Said respondent causes and for more than 2 years last past has caused said device, when sold by it, to be shipped from its place of business in Fort 1Vayne, Ind., to the purchasers thereof located in various States of the United States other than the State of origin of such shipments and in the District of Columbia. There is now and has been for more than 2 years last past a course of trade in said device, "Theronoid," sold and distributed by the respondent in commerce between and among the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of its aforesaid business, .and for the purpose of inducing the purchase of said device, the respondent has made, and does now make, false and misleading statements as to the therapeutic value and effect of said device. Said representations are made by means of a statement appearing on the carton in which said product is packed and shipped as follows: Theronoid Therapeutic Solenoid The New way to Health Through the use of the statement and representation hereinabove set forth, which purports to be descriptive o_f the remedial, curative, or therapeutic properties of respondent's device, respondent has represented and does now represent directly and indirectly that the use of respondent's device, "Theronoid" will restore to the user thereof normal health and that said device has a therapeutic value. PAR. 3. The aforesaid representation and claim made by the respondent as hereinabove described is grossly exaggerated, misleading, and untrue in that respondent's device, Theronoid, does not possess any therapeutic, remedial, or curative value and will not restore normal health to the user thereof.

PAR. 4. The use by the respondent of the foregoing false, deceptive, and misleading representation. as above set forth has had and now has the capacity and tendency to and does mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken beliefs that respondent's said device will in fact restore the user thereof to normal health and that it has a therapeutic, remedial, or curative value and causes a substantial portion of the purchasing public, because of said erroneous and mistaken belief so engendered, to purchase respondent's said device. As a result thereof 1572 FEDERAL TRADE COl\IMISSION DECISIONS · Findings 28F.T.C.

injury has been and is now being done by the respondent to a substantial portion of the purchasing public in the various States of the United States and in the District of Columbia. PAR. 5. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on February 10, 1939, issued, and on February 13, 1939, served, its complaint in this proceeding upon the Any lite Electric Co., a corporation, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. Respondent filed its answer in which answer the respondent stipulated that the testimony taken in the Federal Trade Commission case, Theronoid, Incorporated, Docket No. 1865,1 could be reviewed by the Commission in the consideration of the instant complaint with the same force and effect as though the testimony had been introduced directly in this proceeding. Respondent, in its answer, waived all intervening procedure and further hearing as to the said facts. Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint and answer, and the Commission, having duly considered said complaint, the answer thereto, and testimony introduced in the proceeding before the Commission known as Theronoid, Incorporated, Docket 1865; and the Commission, having duly considered the matter, and being now fully ad vised 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 PARAGRAfH 1. Respondent, Anylite Electric Co., is a corporation organized and existing under the laws of the State of Indiana, with its principal office and place of business located at 200 Murray Street in the city of Fort 'Vayne within the State of Indiana. Said respondent has been engaged in the manufacture, offering for sale and sale of a device consisting of a coil of wire, or solenoid, in a. container intended to be placed around patients, whereby, by means of alternating electric current, an electromagnetic field of therapeutic value is said by respondent to be created. The said solenoid has been z See for llndlngs and order to cease and desist ln said t11se 17 F. T. C. 298. ANYLITE ELECTRIC CO. 1573 1570 Findings designated by respond~nt as "Theronoid." Said respondent has caused said device, '\Vhen sold by it, to be shipped from its place of business in Fort W ~tyne, Ind., to the purchasers thereof located in various States of the United States other than the State of origin: of such shipments aJld in the District of Columbia. There has been, for more than 2 ye!lrs last past, a course of trade in said device, Theronoid, sold and distributed by the respondent in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 2. In the coarse and conduct of its aforesaid business, and for the purpose of iJlducing the purchase of said device, the respondent has made false tmd misleading statements as to the therapeutic value and effect of said device. Said representations are made by means of a statement appearing on the carton in which said product is packed and shipped as follows:

Theronoid Therapeutic Solenoid 'lhe New Way to Health Through the use the statement and representation hereinabove set forth, which purports to be descriptive of the remedial, curative, or therapeutic properties of respondent's device, respondent has represented, directly and indirectly, that the use of respondent's device) Theronoid, will restore to the user thereof normal health and that said device has a thefapeutic value.

PAR. 3. The aforesaid representation and claim made by the respondent as hereinabove described is grossly exaggerated, misleading, and untrue in that respondent's device, Theronoid, does not possess any therapeutic, rernedial, or curative value and will not restore normal health to the user thereof.

PAR. 4. The use by respondent of the foregoing false, deceptive, and misleading representn.tion as above set forth has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purch:tsing public into the erroneous and mistaken belief that respondent's said device will in fact restore the user thereof to normal health and that it has therapeutic, remedial, or curative value, and causes a substantial portion of the purchasing public, because of said erroneous and mistaken belief so engendered, to purchase respondent's said device. As a result thereof, injury has been and is now being done by the respondent to a substantial portion of the purchasing public in the various States of the United States and in the District of Colu!llbia.

Order 28F. T. C.

CONCLUSION The aforesaid acts and practices of the respondent as herein found are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondent, and testimony introduced in the proceeding before the Commission known as Theronoid, Incorporated, Docket 1865, which the respondent stipulated in its answer may be considered as evidence · in this proceeding with the same force and effect as though same had been introduced directly in this proceeding, and all intervening procedure and further hearing as to the facts having been waived, and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Anylite Electric Co., Inc., and its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of a certain electrical device known as a Theronoid, or similar electrical devices, in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

1. Representing that said Theronoid has any therapeutic, remedial or curative value in the treatment of persons suffering from illness or disease.

2. Representing that the Theronoid will restore a person to normal health or produce other beneficial results to individuals not in normal health.

It is further ordered, That the respondent shall, within 60 days after service upon it 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 this order.

UNITED ADVERTISING SERVICE 1575 Syllabus