George C. Huskins

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IN THE MATTER OF GEORGE C. HUSKINS, MINA D. HUSKINS, AND HOWARD W. ELLISON, TRADING AS CARTER SALES COMPANY COMPLAINT, l;'INDINGS, AND OUDER IN REGARD '1'0 THE ALLEGED VIOLATION Ql<' SEC. 5 OF AN AC'T OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4028. Complaint, Feb. 8, 1940-Decigion, July 9, 1940 Where three individuals engaged In sale and tlistribution of their "Carter's Special Formula," drug-containing preparation, which they recommended for use as treatment and cure for alcoholi.sm and for liquor habit to purchasers in various other States and In the District of Columbia; in advertisements of their said product which they disseminated and caused to be disseminated through the mails, through insertion In newspapers of general cl.rculation, and through circulars and other printed or written matter distributed In commerce among the various States and through continuities broadcast from I radio stations of extrastate audience, and otherwise, and which ad"l'"ertlsements were Intended, and likely to, induce purchase of their said product- Represented, directly and by Implication, that their said formula was a cure or remedy for and a competent and effective treatment for alcoholism and the Uquor habit, and that through its use desire for alcoholic stimulants would be eradicated, and that it was absolutely harmless and contained no harmful drugs, through such statements, among others, as "It contains no harmful drugs"; "• • • In most cases at the end of three days the desire for alcohol is gone" ; "* • • complete relief from this vicious habit"; and "* • • the modern, \inexpensive THREE DAY LIQUOR TREATMENT * * * with an absolute MONEY BACK GUARANTEE CERTIFICATE"; and others of similar tenor; facts being, said product was not a cure or remedy nor competent or effective treatment for alcoholism or liquor habit, use thereof would not eradicate desire for alcoholic stimulants, and product was not absolutely harmless, In that it might, In some cases, cause skin rashes, dE-rmatitis, and injury to live-r and intestinal mucosa; With capacity and tendency to mislead 'and deceive substantial portion of purchasing public Into erroneous and mistaken belief that such statements and representations were true and to induce substantial portion of said public, because of such belief, to purchase their medicinal preparation aforesaid: Held, That such acts and practices, under the circumstances set forth, were> all to the prejudice an<l Injury of the public and constituted unfair and deceptive acts and pract~es In commerce.

Before Mr. William O.Reel-•es, trial examiner. Mr. Randol ph lV. Branch for the Commission. CmrPLAINT 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 George C. Huskins, !!fl0516'"-4l-\'0L. 31--34 Complaint 31 F. 1'. C. l\Iina D. Huskins, and Howard ,V. Ellison, individuals trading under the name of Carter Sales Co., hereinafter referred to as respondents, have 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. Respondents are individuals who, trading and doing business under the name of Carter Sales Co., maintained an office and principal place of business in the Arcade Building, Los Angeles, Calif., which was later removed to 208 "\Vest Eighth Street, Los Angeles, Calif.

PAR. 2. Respondents, from on or about September 1, 1938, have been engaged in the business of selling and distributing a certain preparation containing drugs, described by them as "Carter's Special Formula" and recommended by them for use as a treatment and cure for alcoholism and for the liquor habit. Respondents cause said preparation, when sold, to be transported from their aforesaid place of business in the State of California, to purchasers thereof located in various other States of the United States and in the District of Columbia. Respondents at all times mentioned herein have maintained a course of trade in said preparation in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of their aforesaid business, respondents have disseminated and caused the dissemination of false advertisements concerning their said preparation by United States mails, by insertion in newspapers having a general circulation, and also in circulars and other printed or written matter, all of which have been distributed in commerce among and between the various States of the United States, and by continuities broadcast from radio stations having sufficient power to convey, and which did convey, the programs eminating therefrom to listeners located in various States of the United States other than the State in which said broadcasts originated, and by other means in commerce as "commerce" is defined in the Federal Trade Commission Act, for the purpose· of inducing, and which were likely to induce, directly or indirectly, the purchase of their said product; and have disseminated and caused the dissemination of false advertisements, concerning their said preparation, by various means, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of their said medicinal preparation in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false statements and CARTER SALES CO. 489 487 Complaint representation contained in said false advertisements disseminated and caused to be disseminated, as aforesaid are the following: It contains no harmful drugs * * •.

• • • in mo,;t cases at the end of three days the desire for alcohol is gone. • • • complete relief froru this vicious habit. Carter's Special Formula is an effective * • * treatment for habitual drinkers • • • on a full money back guarantee. * • * satisfaction within ev.en a three-day period * * •. Alcoholism is being treated suceessfully • • • with Carter's Special formula.

Now this terrible craving may be conquered easily and Inexpensively right in your own horne.

• * • the safe • • • treatment.

The Inexpensive Guaranteed Three Day Secret Treatment for Alcoholism. * * * the modern, Inexpensive THREE DAY LIQl:OR TREATMENT * • • with an absolute MONEY BACK OUAR..4.NTEE CERTIFICATE. • * * does not contain harmful drugs. Just suppose disaster • • * should result from the use of liquor to the • one you had In mind • • •. You owe it to them and to your own peace of mind to do something right now.

STOP LIQUOB HABIT IMMEDIATELY. Regain the respect of JOUr family and frit>nds. Complete 3-day proven treatmt>nt succeeds when all other liquor treatmt>nts fail. Given secretly or voluntarily, no loss of time from work. Absolutely harmless. Your satisfaction guaranteed. Send only $1.00 today for complete treatment. CARTER, Box 6055, Los Angeles, Calif. PAR. 4. Through the use of the statements and representations hereinabove set forth, and others similar thereto not specifically set out herein, respondents have represented, directly and indirectly, that their preparation "Carter's Special Formula" is a cure or remedy for, and a competent and effective treatment for, alcoholism and the liquor habit; that by its use the desire for alcoholic stimulants will be eradicated; that it is absolutely harmless and contains no harmful drugs.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact respondents' product is not a cure or remedy nor a competent or effective treatment for alcoholism or the liquor habit. The use of such product will not eradicate the desire for alcoholic stimulants. Said product is not absolutely harmless, in that it may in some cases cause skin rashes, dermatitis, and injury to the liver and the intestinal mucosa. PAR. 6. The use by the respondents of the foregoing false, deceptive, and misleading statements and representations with respect to their preparation, disseminated as aforesaid, has the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into th(.> erroneous and mistaken belief that such statements 490 FEDERAL TRADE COMMISSION DECISlO:NS Findings 311<'. T. C. and representations are true, and to induce a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' medicinal preparation. PAR. 7. The aforesaid acts and practices of the respondents, as herein alleged, were all to the prejudice and injury of the public, and constituted 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 the 8th day of February 1940, issued, and thereafter served, its complaint in this proceeding upon the respondents, George C. Huskins, Mina D. Huskins, and Howard ·w. Ellison, trading as Carter Sales Co., charging them 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, hearings were held before "William C. Reeves, an examiner of the Commission theretofore duly designated by it, at which hearings testimony and other evidence were introduced in support of the allegations of said complaint. Before said hearings were concluded, the respondents filed an answer, in which they admitted all of the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint, answer, testimony, and other evidence, said testimony and other evidence having been duly recorded and filed in the office of the Commission, 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. Respondents are individuals who, trading and doing business under the name of Carter Sales Co., maintained an office and principal place of business in the Arcade Building, Los Angeles~ Calif., which was later removed to 208 1Vest Eighth Street, Los Angeles, Calif.

PAR. 2. Respondents, from on or about September 1,1938, have been engaged in the business of selling and distributing a certain preparation containing drugs, described by them as "Carter's Speci11.l Formula" and recommended by them for use as a treatment and cure for alcoholism nnd for the liquor habit. Respondents cause said preparation, when CARTER SALES CO. 491 487 Findings sold, to be transported from their aforesaid place of business in the State of California, to purchasers thereof located in various other States of the United States and in the District of Columbia. Respondents at all times mentioned herein have maintained a course of trade in said preparation in commerce among and between the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of their aforesaid business, respondents have disseminated and caused the dissemination of false advertisements concerning their said preparation by United States mails, by insertion in newspapers having a general circulation, and also in circulars and other printed or written matter, all of which have been distributed in commerce among and between the various States of the United States, and by continuities broadcast from radio stations having sufficient power to convey, and which did convey, the programs emanating therefrom to listeners located in various States of the United States other than the State in which said broadcasts originated, and by other means in commerce as "commerce" is defined in the Federal Trade Commission Act, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of their said product; and have disseminated and caused the dissemination of false advertisements, concerning their said preparation, by various means, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of their said medicinal preparation in commerce, as commerce is defined in tlie Federal Trade Commission Act. Among and typical of the false statements and representations contained in said false advertisements disseminated and caused to be disseminated, as aforesaid, are the following: It contains no harmful drugs • • •.

• • • in most cases at the end of three days the desire for alcohol is gone.

• • • complete relief from this vicious habit. Carter's Special Formula is an effective • • • treatment for habitual drinkers • • • on a full money back guarantee. • • • satisfaction within even a three-day period • • •. Alcoholism is being treated successfully • • • with Carter's Special l'formula.

Now this terrible craving may be conquPred en!'ily and inPxpenslvely right In your own home.

• • • the safe • • • treatment. The Inexpensive Guaranteed Three Day St-cret Treatment for Alcoholism. • • • the modern, lnexpensi>e THREE DAY LIQliOR TREATMENT • • • with an absolute MONElY Buff GUARANTEI!l CERTIFICATE. • • • dot-s not contain harmful drugs. Just suppose disaster • • • should result from the use of liquor to the <ide you had in mind • • •. You owe it to tht-m and to your own peace of mind to do something right now.

492 FEDERAL TRADE COMMISSION DECISIO:\'S Order 31 P. T. C.

STOP LIQUOR HABIT IMMEDIATELY. Regain the respect of your family and friends. Complete 3-day proven treatment succeeds when all other liquor treatments fail. Given secretly or voluntarily, no loss of time from work. Absolutely harmless. Your satisfaction guaranteed. Send only $1.00 today for complete treatment. CARTER, Box 6055, Los Angeles, Calif. PAR. 4. Through the use of the statements and representations hereinabove set forth, and others similar thereto not specifically set out herein, respondents have represented, directly or indirectly, that their preparation "Carter's Special Formula" is a cure or remedy for, and a competent and effective treatment for, alcoholism and the liquor habit; that by its use the desire for alcoholic .stimulants will be eradicated; that it is absolutely harmless and contains no harmful drugs. PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact respondents' product is not a cure or remedy nor a competent or effective treatment for alcoholism or the liquor habit. The use of such product wil111ot eradicate the desire for alcoholic stimulants. Such product is not absolutely harmless, in that it may in some cases cause skin rashes, dermatitis, and injury to the liver and the intestinal mucosa.

PAR. 6. The use by respondents of the foregoing false, deceptive, and misleading statements and representations with respect to their preparation, disseminated as aforesaid, has the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations are true, and to induce a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' medicinal preparation.

CONCLUSION The aforesaid acts and practices of the respondents, 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. OUDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, testimony and other evidence introduced before William C. Reeves, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint, and the answer of the respondents, in which answer respondents admit all the material allegations of fact set forth in said complaint, and state that they waive all intervening procedure and further hearing as to said facts, aml the Commission having made CARTER SALES CO. 493 487 Ot·det· its findings as to the facts and its conclusion that said respondents have • violated the provisions of the Federal Trade Conunission Act. It is ordered, That the respondents George C. Huskins, Mina D. Huskins, and Howard ,V, Ellison, individually, and trading as Carter Sales Co., or trading lmder any other name or names, their agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of their medicinal preparation designated "Carter's Special Formula," or any other preparation composed of substantially similar ingredients or possessing substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from directly or indirectly:

1. Disseminating or causing to be disseminated any advertisement (a) by means of the United States mails or (b) by any means in commerce, as "commerce" is defined in tlw Federal Trade Commission Act, which advertisements represent, directly or through inference, that said preparation is a cure or remedy or a competent or effective treatment for alcoholism or the liquor habit; that the use of said preparation will eradicate the desire for alcoholic stimulants; that said pre.paration is in all cases safe or harmless, or that it contains no harmful drugs.

2. 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 Acti of said preparation, which advertisements contain any of the representations prohibited in paragraph 1 hereof.

It i~ further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with this order.

Syllabus s1 P. ·r. c.