American Drug & Chemical Co

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IN THE MATI'ER OF AMERICAN DRUG AND CHEMICAL COMPANY COMPLAINT, FINDINGS, .AND ORDER I~ REGARD TO THE ALLEGED VIOL.ATIO~ OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4200. Complaint, July 26, 1910-Decision, Sept. 19, 1940 Where a corporation engaged in sale and distribution of various drug products, including certain preparations designated and advertised by it as Ardanol, Chloro-Zol ann Germ-I-Tabs, to purchasers in various other States and in tbe District of Columbia; in advertisements which it disseminated and caused to be disseminated concerning its said products in periodicals and trade journals and circulars, leaflets, folders, pamphlets, booklets, and other advertising literature, through the mails and through various other means in commerce and otherwise, and which were intended and likely to induce purchase thereof;

(a) Represented directly and by implication that its said Ardanol was a cure or remedy for sterility in both sexes and would restore fertility of the generative organs, and was a reliable preventive of abortion, facts being, said product was not such a cure or remedy and possessed no value as such a preventive, and would not restore or beneficially effect fertility of organs;

(b) Represented that its said products Chloro-Zol and Germ-I-Tabs constituted competent and eflective antiseptics and germicides, and could be used as a basis to compound a reliable and effective douche for all needs and purposes in personal feminine hygiene, facts being, while products in que~tion possessed antiseptic properties of a low toxicity, they were not competent or effective antiseptics or germicides and, whether used separately or together, did not constitute reliable or effective means of feminine hygiene; and • (c) Represented that its said Chloro-Zol constituted a competent and effective treatment for bromidrosis, tetter, Cuban itch, itching between the toes, blisters on the feet, irritations of the skin, acne, boils, halitosis, and body odors, facts being said Chloro-Zol did not constitute competent or effective treatment for aforesaid ailments and conditions; With effect of misleading and deceiving a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations were true and, because of such belief, into purchase of its said product:

Hel4, That such acts and practices, under tbe circumstances set forth, were all to tbe prejudice and injury of the public, and constituted unfair and deceptive acts and practices.

Mr. R. P. Bellinger for the Commission.

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 Complaint 31 F. T. C. Trade Commission having reason to believe that American Drug and Chemical 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, American Drug & Chemical Co., is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of Minnesota, with its principal place of business located at 420 South Sixth Street, Minneapolis, Minn. PAR. 2. Respondent is now, and for more than 1 year last past has been, engaged in the business of selling and distributing various drug products. Among the drug products sold and distributed by respondent are certain preparations designated and advertised as Ardanol, Chloro-Zol and Germ-I-Tabs.

Respondent causes said products, when sold, to be transported from its place of business in the State of Minnesota to purchasers thereof located in various 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 said products in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its aforesaid business, the re.'lpondent has disseminated and is now disseminating, and has caused and is now causing the dissemination of false advertisements concerning its said products, by the 'United States mails and by various 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 said product; and respondent has also disseminated and is now disseminating, and has caused and is now causing, the dissemination of false advertisements concerning its said products, by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of its said products in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated as hereinabove set forth, by the United States mails, by advertisements in magazines and trade journals, and by circulars, leaflets, folders, pamphlets, booklets, and other advertising literature, are the following:

AMERICAN DRUG AND CHEMICAL CO. 945 943 Complaint 1. As to Ardanol :

For Vitamin E Deficiency ARDANOL Wheat Germ Oil Medicinal Dnriug recent years, it has been repeatedly demonstrated that a deficiency of Vitamin E in the diet Is the cause of degenerative changes In the reproductive organs of both t>exes. In the mules, they undergo irreparable damage to the germinal epithelium of the testes. While the sex glanus of the female may be apparently unaffected, the vitamin deficiency Is the cause of the death of the foetus with subsequent abortion or reabsorption. According to present knowledge, the principal function of Vitamin E is the prevention of certain types of sterility and infertility. Leading authorities have stated that ln the male the gradual loss of reproductive power due to Vitamin E deficiency leads to complete and incurable sterility, but that fprtility can be maintained if treatment with Vitamin E ls started while a few normal tubules remain in the that{'S. Also, that female sterility due to Vitamin E deficiency is not incurable, since only temporary tissues are damaged. 2. As to Chloro-Zol:

CHLOR<>-ZOL is u synthetic chlorine carrying <'chemical. It is a most powerful antiseptic and germicide, having approximutely 50 times the germicidal power o:t pure phenol (curbolic acid) yet being virtually non-poisonous unu non- Irritating.

Some suggested uses for CHLOno-zol:

Sterilization work Prevention. and treatment of infection Open wounds and sores Bromidrosis, tetter, Cuban Itch, itching between the toes, blisters on the feet Irritation of the skin. Acne, Boils, Sore Throat, Halitosis. Treatment of abscesses after extraction of teeth.

F.emlnine Personal hygiene Body deodorant.

FEMININE HYGIENI!l When the dom·he Is dt>slred, ust> a solution made by emptying the contents of one CHLOIW-ZOL Capsule ln one or two quarts of wurm water. Stronger solutions may be used 1:t desirable. 'lhe above strength, however, is the one usually prescribed by phy,;ichms and Is vpry effective in destroying many objectionable germs.

CIILORQ-ZOL SUPERIOR. TO MANY COMPOUNDS Ca1.0R<>-ZOL hus many advnntngps OYPr carbolic acid, cresol, hlchlol"ide of Dll'r<'ury, and similar poisonous compounds n~ed ln feminine hygiene. CHt.oiW- ZOL does not burn, hnrdPn or dry the tlSSU{'S and membranes. In !net, it Provides an {'ffident germlcllle that Is harmless, and Its action Is e!:peclally ben{'ficfal upon the delicate membranes and tlll-Ut>s of the vaglnul tract. It is also a very effective deodorant.

Complaint 311<'. T.C. 3. As to Germ-1-Tabs:

Always recommend Germ·I-Tabs • • • for the treatment and prevention of wound infection, feminine hygiene, personal deodorant or wherever an effective germicide and antiseptic may be required. The enlightened and fastidious woman of today knows the importance ol' the douche as part of the feminine toilet. The convenience and economy of Germ-I-Tabs In personal feminine hygiene appeal to the modern woman. Most women know HOW to take care of themselves In this respect but they so frequently employ the wrong compounds, using poisonous caustic solutions. PAR. 4. Through the use of the statements and representations hereinabove set forth, and others similar thereto, not specifically set out herein, the respondent represents and has represented, directly and by implication, that its product designated as Ardanol is a cure or remedy for sterility in both sexes and will restore fertility of the generative organs, and is a reliable preventive of abortion; that its product designated as Chloro-Zol and Germ-I-Tabs constitute competent and effective antiseptics and germicides; that said product Chloro-Zol constitutes a competent a.nd effective treatment for bromidrosis, tetter, Cuban itch, itching between the toes, blisters on the feet, irritations of the skin, acne, boils, halitosis, and body odors; that the products Chloro-Zol and Germ-1-Tabs can be used as the basis to compound a reliable and effective, douche for all needs a.nd purposes in personal feminine hygiene.

PAR. 5. The foregoing statements and representations used and disseminated by the respondent as herein set forth are grossly exaggerated, false, misleading, and deceptive. In truth and in fact, respondent's product Ardanol is not a cure or remedy for sterility in either of the sexes, nor does it possess any value as a preventive of abortion. The use of such product will not restore or beneficially affect the. fertility of the generative organs. While said products Chloro-Zol and Germ- I-Tabs possess antiseptic properties of a low toxicity, they are hot competent or effective antiseptics or germicides. Said product Chloro-Zol does not constitute a competent or effective treatment for bromidrosis, tetter, Cuban itch, itching between the toes, blisters on the feet, irritations of the skin, acne, boils, halitosis, or body odors. The products Chloro-Zol and Germ-I-Tabs, whether used separately or together, do not constitute a reliable or effective means of feminine hygiene.

PAR. 6. The use by the re;;pondent of the aforesaid fabe, exaggerated, misleading, and deceptive statements and representations with resped to respondent's said products, disseminated as aforesaid, 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 AMERICAN DRUG AXD CHEMICAl. CO. 947 943 Findings mistaken belief that said statements and representations are true, and into the purchase of respondent's said products because of such erroneous and mistaken belief.

PAR. 7. The aforesaid acts and practices of 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 Act. REPORT, FINDINGs AS TO THE Facts, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on July 2G, 194:0, issued and on July 29, 1940, seryecl its complaint in this proceeding upon respondent, American Drug and Chemical 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. On .August 27, 1940, the respondent filed its answer, in which answer it 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. Ther£>after, the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer thereto, 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, American Drug & Chemical Co. is a corporation, organized, existing, and doing business under and by virtue of tlw la\YS of the State of Minnesota, with its principal place of business located at 420 South Sixth Street, Minneapolis, 1\Iinn. PAR. 2. Respondent is now, and for more than 1 year last pa:ot has bet>n, t>ngaged in the busint>ss of selling and distributing Yarious dl'llg products. Among the drug products sold and distributed by respondent are certain ]H'£>parations designat£>d and adwrtis£>d as Ardanol, Chloro-Zol, and GHm-I-Tabs.

Respondent causes said products, "·hen sold, to be transported from its place of business in the State of Minnesota to purchasers thert>of locat£><1 in nrious other States of the United States and in the District of Columbia.

Uespondt>nt mailltains, and at all times mentioned heart>in has maintained, a course of trade in said products in commerce Lt>t\n>£'11 and among the Yarious Stalt>s of the Unit£>d Stat£>s and in tlw Di!';ti·iet of Columbia.

Findings 31 F. T. C. PAR. 3. In the course and conduct of its aforesaid business, the respondent has disseminated and is now dissemii1ating and has caused and is now causing the dissemination of false advertisements concerning its said products, by the United States mails and by various 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 said products; and respondent has also disseminated and is now disseminating, and has caused and is now causing, the dissemination of false advertisements concerning its said products, by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of its said products in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the fal:;e, misleading and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated as hereinabove set forth, by the United States mails, by advertisements in magazines and trade journals, and by circulars, leaflets, folders, pamphlets, booklets, and other advertising literature, are the following: 1. As to Ardanol :

For Vitamin E Defidency ABDANOL Wheat Germ Oil Medicinal During recent years, it has been repeatedly demou~>trated that a detideucy of Vitamin E in the diet is the cause of degenerative changes in the reproductive organs of both sexes. In the males, they undergo irreparable damage to the germinal epithelium of the testes. While the sex glands of the female may be apparently unaffected, the vitamin deficiency is the cause of the death of the foetus with subsequent aho1·tion or rPabsorption. According to prpsent knowledge, the principal function of Vitamin E is the prevention of certain types of sterility and infertility. Leading authorities have stated that in the male the gradual loss of reproductive power due to Vitamin E deficiency leads to complete and incurable sterility, but that fertility can be maintained if treatment with Vitamin E Is started while a few normal tubules remain in the testes. Also, that female sterility due to Vitamin E deficiency is not incurable since only temporary tissues are damaged. 2. As to Chloro-Zol:

CHLOBO-ZOL is a synthetic chlorine carrying chemical. It is a most powerful antiseptic and germicitle, having approximately 50 times the germicidal powerof pure phenol (carbolic acid) yPt being virtually non-poisonous and non- Irritating.

Some suggested uses for CHLOBO-ZOL:

Sterilization work Prevention and treatment of Infection AMERICAN DRUG AND CHEMICAL CO. 949 IH3 Findings Open wom1ds and sores Bromidrosis, tetter, Cuban itch, itchiug between the toes, blisters on the feet Irritation of the skin. Acne, Boils, Sore Throat, Halitosis. Treatment of abscesses after extraction of teeth.

Feminine Personal l1ygiene.

Boey deodorant.

FEMLVINE HYGIENE When the douche is desired, use a solution made by emptying the contents of one chloro·ZOL Capsule in one or two quarts of warm water. Stronger solutions may be used if desirable. The above strength, however, is the one usually prescribed by physicians and is very e!Iective In destroying many objectionable germs.

CHWRO·ZOL SUPERIOR TO MANY COMPOUNDS CHLOEIO·ZOL has many advantages over carbolic acid, cresol, bichloride of mercury, and similar poisonous compounds used in feminine hygiene. CHLORO- ZOL does not burn, harden or dry the tissues and membranes. In fact, It provilles an efficient germicide that is harmless, and its action is especially beneficial upon the delicate membranes and tissues of the vaginal tract. It is also a very e!Iectlve deodorant.

3. As to Germ-1-Tabs:

Always recommend Germ-1-Tabs • • * for the treatment and pt·evention of wound infection, feminine hygiene, personal de01lorant or wherever au effective germicide and antiseptic may be required. The enlightened and fastidious woman of today knows the importance of the douche as part of the feminine toilet. The convenience and economy of Germ·I- Tabl in personal feminine hygiene appeal to the modern woman. 1\lost women know HOW to take care of themselves in this respect but tht>y so frequently t>rnploy the wrong compounds, using poisonous caustic solutions. PAR. 4. Through the use of the statements and representations hereinabove set forth, and others similar thereto, not specifically set out herein, the respondent represents and has represented, directly and by implication, that its product designated as Ardanol is a cure or remedy for sterility in both sexes and will restore fertility of the generative organs, und is a reliable preventive of abortion; that its products designated as Chloro-Zol and Germ-I-Tabs constitute competent and effective antiseptics and germicides; that said product. Chloro-Zol constitutes a competent and effective treatment for bromidrosis, tetter, Cuban itch, itching between the tO<'s, blist{'rS on the. feet, irritations of the skin, acne, boils, halitosis, and body odors; that the products Chloro-Zol and Germ-1-Tabs can be used as the basis to compound a reliable and effective douche for all needs and purposes in personal feminine hygiene.

PAH ••1. The foregoing statements nnd representations used and disseminated by the respondent as herein set forth are grossly exaggerate{}, false, misleading, and deceptive. In truth and in fact, re- Order 31P.T.C.

spondent's product Ardanol is not a cure or remedy for sterility in either of the sexes, nor does it possess any value as a preventive of abortion. The use of such product will not restore or beneficially affect the fertility of the generative organs. While said products Chloro-Zol and Germ-I-Tabs possess antiseptic properties of a low toxicity, they are not competent or effective antiseptics or germicides. Said product Chloro-Zol does not constitute a competent or effective tre:h ment for bromidrosis, tetter, Cuban itch, itching between the toes, blisters on the feet, irritations of the skin, acne, boils, halitosis, or body odors. The products Chloro-Zol and Germ-I-Tabs, whether used separately or together, do not constitute a reliable or effective means of feminine hygiene.

PAR. 6. The use by the respondent of the aforesaid false, exaggerated, misleading, and deceptive statements and representations with respect to respondent's said products, disseminated as aforesaid, has had and now has the capacity and tendency to, and dqes, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements and representations are true, and into the purchase of respondent's said products because of such erroneous and mistaken belief. CONCLUSION The aforesaid acts and practices of 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 Tralle Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission 1tnd the answer of the respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint, and states that it waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, American Drug & Chemical Co., a corporation, its officers, agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for !;ale, sale, and distribution of its mNlicinnl preparations designated ns Ardanol, Chloro-Zol, a11d Germ-1-Tabs, or of any other medicinal preparations composed of substantially similar AMERICAN DRUG AND CHEMICAL CO. 951 943 Order ingredients or possessing substantially similar properties, whether sold under the same names or under any other names, 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 the Federal Trade Commission Act, which advertisements represent, directly or through inference, that said preparation designated .A.rdanol is a cure or remedy for sterility in either of the sexes or will restore or beneficially affect the fertility of the generative organs or possess any value as a preventtive of abortion; that said preparations designated Chloro-Zol and Germ-I-Tabs constitute competent or ('ffective antiseptics or germicides, or that they constitute a reliable or effective means of feminine hygiene; that said preparation designated Chloro-Zol constitutes a competent or effective treatment for bromidrosis, tetter, Cuban itch, itching between the toes, blisters on the feet, irritations of the skin, acne, boils, halitosis, or body odors.

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 Act, of any of said preparations, which advertisements contain any of the representations prohibited in paragraph 1 hereof.

It i8 further ordered, That the respondent shall, within 60 days after service upon jt 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.

20fl:H6m--tt Yol.lll-03 Syllabus 31 F'. 'l'. c.