Epstein, Harry

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

IN :I"HE :MATTER OF HARRY EPSTEIN, TRADING AS RESTORIA COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3131. Complaint, Mar. 14, 1939-Decision, .Aug. 1, 1939 Where an individual engaged in sale and distribution of "Restorla," medicinal preparation, as treatment for blood and remedy for blood disorders and related conditions; in advertisements wl1ich he disseminated through the mails, through newspapers and periodicals of general circulation, and through circulars and other printed matter, including purported testimonial letters, and pamphlets, booklets, and advertising copy, and which advertisements were intended and calculated to induce purchase of his said product- ( a) Represented ti:!Ut said "Restoria" was an effective remedy or cure for various conditions due to ''bad blood," such as ulcers, eruptions, swollen glands, eczema, etc., and constituted a competent treatment fol" such condition and was a remedy or cure for neuritis, neurasthenia, rheumatism, skin eruptions, blood poisoning, and other related conditions, and would furnish relief therefrom;

(b) Represented, as aforesaid, that it would control diseased blood and would restore the same, and was safe and harmless, and would produce no bad after effects, and that It was n rem£>dy or cure for syphilis and a competent treatment therefor, and that persons suffering from said ailment would react favorably within- a short time after using said "Restoria ;" and (c) Represented that it was manufactured in modern laboratories and under expert supervision ;

Facts being It was not a competent treatment nor effect!Ye remedy or cure for said various conditions, and use would not relieve the same or build up the body, sufferers from syphilis would not be favorably affected thereby, it was not manufactured In a modern laboratory or under supervision of skilled scientist, and would not control diseased blood nor restore the same, was not harmless under all conditions of use, but might have severe harmful results when used by public in treatment of conditions for which it was recommended, and use by uninformed persons under conditions prescribed, or such as are customary and usual, might, in some cases, cause users to suffer irreparable injury to health, and it was definitely harmful, by reason of certain Ingredients, in early treatmc!Jt of syphilis, in which iodides contained therein might disseminate and generalize the. disease, and, by reason of iodine content, might aggravate certain diseases, such ns pulmonary tuberculosis, hyperthyroidism and nephritis; With effect of misleading and deceiving suhstantial portion of purchasing public into erroneous and mistaken belief that such false statements and representations and advertist>ments were true, and of inducing, directly or indirectly, purchase by public of such drug-containing medicinal preparation, and with likelihood so to induce:

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and constituted unfair and deceptive acts and practices In commerce.

RESTORIA CO. 429 428 Complaint llfr. J. lV. Brookfield, Jr. for the Commission. Mr. Joseph A. Padway, of 'Vashington, D. C., for respondent. Complaint l 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 Harry Epstein, an individual, trading as Restoria Co., 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 Harry Epstein is an individual, doing business under the trade name of Restoria Co., with his principal office and place of business located at 805 East l\Iason Street, in the city of Milwaukee, State of 'Visconsin. Respondent, for more than 1 year last past, has been and still is engaged in the sale and distribution of a certain medicinal preparation known as "Restoria" which is offered for sale and sold as a treatment for the blood and remedy for blood disorders and related conditions. In the course and conduct of J1is business respondent causes said medicinal preparation, when sold, to be transported froin his place of business in the State of 'Viseansin, to the purchasers thereof located in other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in commerce, in said preparation, among and between the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of his aforesaid business, the respondent has disseminated, and is now disseminating, and has caused and is now causing the dissemination of false advertisements concerning his said product, by United States mails, by insertion in newspapers and periodicals having a general circulation and also in circulars and other printed or written matter, all of which are distributed in commerce, among and between the various States of the United States, and by other means in commerce, as commerce is defined in the Federal Trade Commission Act, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his said product; and has disseminated, and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said product, by various means for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his said product in commerce, as com- 21370!l'"-40-vol.2!l-30 Complaint 29F. T. C.

merce is defined in the Federal Trade Commission Act. Among, and typical of the false statements and representations contained in said .advertisements, disseminated and caused to be disseminated, as aforesaid, are the following:

Diseased Blood. Free Book tells of Control and Relief to thousands of sufferers.

Restoria Is manufactured in thoroughly equipped, modern laboratories and under the supervision of trained experts. It Is a stable and reliable product made of .only the best ingredients, as must be the case where the battle is against an enemy as persistent and overpowering as syphilis. You must constantly bear in mind that the earlier in the development of the -disease the llestoria Treatment is begun, the more potent and beneficial is the treatment, as treatment affects very favorably syphilis cases in the first and second stages but not so favorably in the third or tertiary stage. No Bad After-Effects. The llestoria treatment is 100 per cent safe, and its use is warranted to produce no bad after-effects. No harm can come from the use of Restoria • • • we know from past experience and from what thousands of users nave told us that the average person should react favorably within a Very -short time.

In addition to the foregoing advertisements the respondent disseminates false advertisements in the same manner as set out above by means of purported testimonial letters which the respondent places in pamphlets, booklets, and in advertising copy. Among, and typical of the false statements and representations, disseminated as aforesaid by responden~ by use of purported testimonial letters in its advertising, are the following:

I have used ·two bottles of your Restoria which have cured my rheumatism. "' • "' I have seen and heard of the results of your Restorla in the case of my mother, long afflicted with Water Eczema • • • My brother works in Harrisburg, Pu., and he came in touch with llestoria there. He bought two bottles, .and it cured my mother • • • • "' "' I was rapidly getting worse, worse, worse, until I was on the verge {)f suicide. Ulcers begun to appear on my body, and all sorts of unusual pains kept me in constant misery. My sleep was rarely ever natural • • • my throat was inflamed and constantly sore, and near each elbow a horrid looking -sore formed "' "' "' In less than a week after beginning Restoria, the sores {)n my arms begun to dry, and I began to feel like a new woman. • • • After five months' treatment with your wonderful llestoria, I can truthfully say, I am well.

I had Eczema on both hands for about three years. • • • I was finally induced to try Restorla. I bought one bottle, and before taking one-half of it my Eczema began to disappear, and before the bottle was gone I was entirely cured; and now I weigh about thirty pounds more than before taking Restoria. • • • I've suffered from stubborn Neuritis and Neurasthenia for years and -spent a fortune on patent medicine, only to poison my blood still further. Restorla .is a wonder, and just what I've been looking for. RESTORIA CO. 431 428 Complaint I was unfortunate enough to contract a serious disorder; I consulted the family physician; be said my case was well marked, and that it was clearly a case of blood poison. A friend to whom I confided my condition told me about Restorla • • • My improvement was steady, and after taking only the fifth bottle, I was pronounced well • • • I am grateful to Restorla • • • I want to say further: Take Restoria, and get well. • • • I did not seem to gain, and after seventeen weeks my condition was in every way worse. The local swelling and inflammation had become alarming; painful and offensive ulcers appeared in my mouth, and the glands of my throat were beginning to enlarge • • • I had been told about Restoria, • • • I began taking it • • • In less than ten days the local ulcers began to dry up and disappear, and I was generally better • • • I am now well and strong • • • • • • Restoria is the best blood medicine I have ever heard of, and it is doing the work in my case • • • • • * it has taken those scars off my face, and I am improving in general health.

• • • One year from the time I started with Restor! a, I bad my blood tested, and I am a sound and well man-thanking Restoria for my health, PAR. 3. Through the use o:f th~ statements hereinabove set forth, and others similar thereto not specifically set out herein all of which purport to be descriptive of the remedial, curative or therapeutic properties of respondent's preparation, respondent has represented and does now represent, directly and indirectly, that his preparation "Restoria" (a) is an effective remedy or cure for various conditions due to "bad blood", such as ulcers, eruptions, swollen glands, eczema, etc., and constitutes a competent treatment for such conditions; (b) is a remedy or cure for neuritis, neurasthenia, rheumatism, skin eruptions, blood poisoning and other related conditions, and will furnish relief from such conditions;

(c) will control diseased blood and will restore the blood; (d) is manufactured in modern laboratories under expert supervision;

(e) is a remedy or cure for spyhilis and constitutes a competent treatment therefor, and that persons suffering from syphilis will react \I.favorably within a short time after using Resto ria; (f) is safe and harmless and its use will produce no bad after effects.

The aforesaid representations and claims used and disseminated by the respondent, as hereinabove described, are grossly exaggerated, misleading, and untrue. In truth and in fact, Restoria is not a competent treatment, nor effective remedy or cure for bad blood, rheumatism, syphilis, neuritis, neurasthenia, eczema, ulcers, swollen glands, skin eruptions, or blood poison, and its use will not relieve these conditions or build up the body. Syphilis sufferers will not be favorably affected by Restoria.

\' Findings 29F. T.C.

Said preparation is not now manufactured in a modern laboratory, nor under the supervision of skilled scientists. Restoria will not control diseased blood, nor restore the blood. Restoria is not harmless under all conditions of use, but in truth and in fact, its use may have severe harmful results when used by the public in the treatment of the conditions for which it is recommended by respondent.

PAR. 4. In addition to the false and misleading statements hereinabove set forth, the respondent is also engaged in the dissemination of false advertisements as aforesaid, in that the respondent fails to reveal to purchasers and prospective purchasers that the use of said medicinal preparations by uninformed persons under the conditions prescribed or under such conditions as are customary and usualr may in some cases cause them to suffer irreparable injury to health. By reason of the existence of iodides in respondent's preparation~ the use of said preparation would be definitely harmful in the, early treatment of syphilis in that these iodides may disseminateand generalize the disease, and, further, that the administration of a preparation containing iodine may aggravate certain diseases such as pulmonary tuberculosis, hyperthyroidism, and nephritis. PAR. 5. The use by the respondent of the foregoing false, deceptive~ and misleading statements, representations, and advertisements, disseminated as aforesaid, with respect to said medicinal preparationsr has had ana now has the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such false statements representations and advertisements are true, and induces or is likely to induce, directly or indirectly, the purchase by the public of respondent's medicinal preparation containing drugs. PAR. 6. The aforesaid acts and practices of the respondent, as, herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Acl REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act,. the Federal Trade Commission, on March 14, 1939, issued and served its complaint in this proceeding upon respondent Harry Epstein, an individual, trading as Restoria Co., charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent's answer, the Commission, by order entered herein, granted respondent's motion for permission to with-; RESTORIA CO. 433 Findings draw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, 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 substitute answer, and the Commission having duly considered the matter 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 facts and its conclusion drawn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Harry Epstein is an individual, doing business under the trade name of Restoria Co., with his principal office and place of business located at 805 East l\Iason Street, in the city of Milwaukee, State of ·wisconsin. Respondent, for more than t year last past, has been and still is engaged in the sale and distribution of a certain medicinal preparation known as "Restoria," which is offered for sale and sold as a treatment for the blood and remedy for blood disorders and related conditions. In the course and conduct of his business respondent causes said medicinal preparation, when sold, to be transported from his place of business in the State of Wisconsin, to the purchasers thereof located in other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in commerce in said preparation among and between the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of his aforesaid business, the respondent has disseminated, and is now disseminating, and has caused and is now causing the dissemination of false advertisements concerning his said product, by United States mails, by insertion in newspapers and periodicals having a general circulation, and also in circulars and other printed or written matter, all of which are distributed in commerce among and between the various States of the United States, and by other means in commer~, as commerce is defined in the Federal Trade Commission Act, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his :1 (:said product; and has disseminated, and is now disseminating, and has caused and is now causing the dissemination of, false advertisements concerning his said product, by various means for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of his said product in commerce, as commerce is defined in Findings 29F.T.C.

the Federal Trade Commission Act. Among, and typical of the false statements and representations contained in said advertisements, disseminated and caused to be disseminated, as aforesaid, are the following:

Diseased Blood Free Book tells of Control and Relief to thousands of sufferers.

Restoria is manufactured in thoroughly equipped, modern laboratories and under the supervision of trained experts. It is a stable and reliable product made of only the best ingredients, as must be the case where the battle is against an enemy as persistent and overpowering as syphilis. · You must constantly bear in mind that the earlier in the development of the disease the) Restoria Treatment is begun, the more potent and beneficial is the treatment, as treatment affects very favorably sybphilis cases in the first and second stages but not so favorably in the third or tertiary stage. No Bad After-Effects. The Restorla Treatment is 100 per cent safe, and its use is warranted to produce no bad after-effects. No harm can come from the use of Restoria • • • we know from past experience and from what thousands of users have told us that the average person should react. favorably within a very short time.

In addition to the foregoing advertisements, the. respondent disseminates false advertisements in the same manner as set-out above by means of purported testimonial letters which the respondent places in pamphlets, booklets, and in advertising copy. Among, and typical of the false statements and representations, disseminated as aforesaid by respondent by use of purported testimonial letters in its advertising, are the following:

I have used two bottles of your Restoria which have cured my rheumatism. • • • I have seen and heard of the results of your Restoria in the case of mY, mother, long afflicted with Water Eczema • • • My brother works in Harrisburg, Pa., and be came in touch with Restorla there. He bought two · bottles, and it cured my mother • • • • • • I was rapidly getting worse, worse, worse, until I was on the verge of suicide. Ulcers began to appear on my. body, and all sorts of unusual pains kept me In constant misery. My sleep was rarely ever natural • • • my throat was inflamed and constantly sore, and near each elbow a horrid looking sore formed • • • In less than a week after beginning Restoria, the sores on my arms began to dry, and I began to feel like a new woman. • • • After five months' treatment with your wonderful Restorla, I can truthfully say, I am well.

I bad Eczema on both hands for about three years. • • • I was finally Induced to try Restoria. I bought one bottle, and before taking one-half of it my Eczema began to disappear, and before the bottle was gone I was entirely cured; and now I weigh about thirty pounds more than before taking Restoria. • • * I've suffered from stubborn Neuritis and Neurasthenia for years and spent a fortune on patent medicine, only to poison my blood still further. Restoria is a won<ter, and just what I've been looking for. RES TORI A. CO. 435 428 Findings I was unfortunate enough to contract a serious disorder; I consulted the family physician; he said my case was well marked, and that it was clearly a case of blood poison. A friend to whom I confided my condition told me about Restoria • • • My improvement was steady, and after taking only the fifth bottle, I was pronounced well • • • I am grateful to Restoria .- • • I want to say further: Take Restoria, and get well.

* • • I did not seem to gain and after seventeen weeks my condition was in every way worse. The local swelling and inflammation had become alarming; painful and offensive ulcers appeared in my mouth, and the glands of my throat were beginning to enlarge • • • I had been told about Restoria, • • • I began taking it • • • In less than ten days the local ulcers began to dry up and disappear, and I was generally better • • • I am now well and strong • • • . • • • Restoria is the best blood medicine I have ever heard of, and it is doing the work in my case • • • • • • it has taken those scars off my face, and I am improving in general health.

• • • . One year from the time I started with llestorla, I had my blood tested, and I am a sound and well man-thanking llestoria for my health. PAR. 3. Through the use of the statements hereinabove set forth, and others similar thereto not specifically set-out herein, all of which purport to be descriptive of the remedial, curative, or therapeutic properties of respondent's preparation, respondent has represented and does now represent, directly and indirectly, that his preparation "Resto ria"

(a) is an effective remedy or cure for various conditions due to "bad blood", such as ulcers, eruptions, swollen glands, eczema, etc., and constitutes a competent treatment for such conditions; (b) is a remedy or cure for neuritis, neurasthenia, rheumatism, skin Ieruptions, blood poisoning and other related conditions, and will furnish relief from such conditions ;

( o) will control diseased blood and will restore the blood; (d) is manufactured in modern laboratories under expert super- VISIOn;

(e) is a remedy or cure for syphilis and constitutes a competent treatment therefor, and that persons suffering from syphilis will react favorably within a short time after using "Restoria"; (/) is safe and harmless and its use will produce no bad after effects. The aforesaid representations and claims used and disseminated by the respondent, as hereinabove described, are grossly exaggerated, misleading, and untrue. In truth and in fact, "Restoria" is not a r'. competent treatment nor effective remedy or cure for bad blood, rheumatism, syphilis, neuritis, neurasthenia, eczema, ulcers, swollen glands, skin eruptions, or blood poisoning, and its use will not relieve these ·i' conditions or build up the body. Syphilis sufferers will not be favorably affected by "Restoria." 1. 436 FEDERAL TRADE COl\11\IISSION DECISIONS Order 29F.T.O.

Said preparation is not now manufactured in a modern laboratory, nor under the supervision of skilled scientists. "Restoria" will not control diseased blood, nor restore the blood. "Restoria" is not harmless under all conditions of use, but in truth and in fact its use may have severe harmful results when used by the public in the treatment of the conditions for which it is recommended by the respondent.

PAR. 4. In addition to the false and misleading statements hereinabove set forth, the respondent is also engaged in the dissemination of false advertisements as aforesaid, in that the respondent fails to reveal to purchasers and prospective purchasers that the use of said medicinal preparation by uninformed persons under the conditions prescribed or under such conditions as are customary and usual, may in some cases cause them to suffer irreparable injury to health. By reason of the existence of iodides in respondent's preparation, the use of said preparation would be definitely harmful in the early treatment of syphilis in that these iodides may disseminate and generalize the disease, and, further, that the administration of a preparation containing iodine may aggravate certain diseases such as pulmonary tuberculosis, hyperthyroidism, and nephritis.

PAR. 5. The use by the respondent of the foregoing false, deceptive, and misleading statements, representations, and advertisements, disseminated as aforesaid, with respect to said medicinal preparation, 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 belief that such false statements, representations, and advertisements are true, and induces or is likely to induce, directly or indirectly, the purchase by the public of respondent's medicinal preparation containing drugs.

CONCLUSION The aforesaid acts and practices of the respondent, as herein found, are all to the prejudice and injury 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 and answer of respondent, in which answer respondent admits all the material allegations of ·fact set forth in said complaint and states that he waives all intervening procedure and further hearing as to said facts, and the Commis- RESTORIA CO. 437 428 Order sian having made its findings as to the facts and conclusion that respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent Harry Epstein, individually and trading as Restoria Co., or under any other name or names, his representatives, agents, and employees, directly or through any corporate or any other device, do forthwith cease and desist from: Disseminating or causing to be disseminated any advertisement by means of the United States mails or in commerce, as commerce is defined in the Federal Trade Commission Act, by any means, for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase of a medicinal preparation containing drugs now designated by the name "Restoria," or any other medicinal preparation composed of substantially similar ingredients or possessing substantially similar therapeutic properties,. whether sold under the same name or any other name or names, or disseminating or causing to be disseminated, any advertisement by any means for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase in commerce, as commerce is defined in the Federal Trade Commission Act, of said medicinal preparation, which advertisements represent, directly or through implication, that said medicinal preparation "Restoria," is a cure or remedy or an effective treatment for bad blood, ulcers, swollen glands, or eczema; or that said preparation is a cure or remedy for neuritis, neurasthenia, rheumatism, blood poisoning, or skin eruptions, or is beneficial in relieving any of such conditions; or that said preparation is a cure or remedy for or is beneficial in the treatment of syphilis, or will control diseased blood or restore the blood; or that said preparation is manufactured in a modern laboratory or under the supervision of skilled scientists, unless and until such is the fact; or which advertisements fail to reveal that said preparation is not a wholly safe drug to be used by the lay public in selfmedication. , It is further ordered, That the respondent shall within 60 days after the service upon him of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with this order.

I I.

Syllabus 29F.T.C.