Scholl Manufacturing Co., Inc

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I:r-r THE MATTER OF SCHOLL MANUFACTURING COMPANY, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC, 5 OF AN ACT OF CONGRESS APPROVED SEPT, 213, llh Docket 4241. Complaint, Aug. 20, 1940-Decision, Dec. 2, 1940 Wbere a corporation engaged in manufacture, interstate sale and distribution of its "Dr. Scholl's Zlno-Pads" and "Dr. Scholl's Kurotex Foot Plasters" for treatment of corns, bunions, and other foot ailments, in advertisements of Its said products which it disseminated and caused to be disseminated through the mails, and in various other ways in commerce, through newspaper and periodical advertisements and by radio continuities, and circulars, leaflets, pamphlets, and other advertising literature, and otherwise, and which were Intended and likely to Induce purchase of such products- (a) Represented that use of said pads stopped pain instantly and In 1 minute, and that corns and callouses could be lifted out after application thereof without use of surgery or other aids, and that they constituted a cure or remedy for said conditions and had healing properties, facts being said pads were not such a cure or remedy, any relief from pain atrorded by their use would be gradual, and would not relieve pain as above claimed, and while, in some instances, through relief of pressure of shoes, it might be possible to peel otr or remove layers of the corn, use thereof would not make it possible, without use of surgery, to lift out corns or callouses; and (b) Represented that use of said toot plaster Instantly relieved pain caused by corns, sore toes, callouses, bunions, and tender spots on the feet or toes caused by new or tight shoes, facts being such plasters would give only such degree of relief as would follow from the protection from outside pt'el!lsure and friction and only that as long as they were employed or worn for protective purposes, and they would not instantly relieve pain caused by various conditions above set forth, as claimed therefor; With effect of misleading and deceiving substantial number of members of purchasing publlc into erroneous and mistaken belief that such false statements, representations, and advertisements were true, and of Inducing portion of such public, because of said erroneous and mistaken belief, to purchase its said products or devices:

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.

Mr. Donovan R. Divet for the Commission.

Col\! PLAINT 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 Scholl Manufactur· B22695m-41-VOL. 32--2 Complaint 32F.T.C.

ing Co., Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of 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. The respondent, Scholl Manufacturing Co., Inc., is a corporation organized and existing under and by virtue of the l:ms of the State of New York and having its office and principal place of business at 211 West Shiller Street in the city of Chicago; State of Illinois.

Respondent is now, and has been for several years last past, engaged in the manufacture, sale, and distribution of certain devices known as "Dr. Scholl's Zino-Pads" and "Dr. Scholl's Kurotex Foot Plasters," and designed for the treatment of corns, bunions, and other foot ailments. Respondent causes said devices, when sold, to be trans-, ported from its aforesaid place of business in the State of Illinois or from the State of origin of the shipment thereof to the purchasers thereof at their respective points of location in various States of the United States other than the State of origin of the shipment thereof and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said devices in commerce among and between the various States of the Pnited States and in the District of Columbia. PAR. 2. In the course and conduct of its aforesaid business, the respondent has disseminated and is now disseminating, and has raused 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 s::tid products; and respondent has also disseminated and is now disseminating, and has caused and is now causing the dissemination 0£, false advertisements concerning its said products, by various means, for the purpose of inducing, and which are likely to induce, tlirectly or indirectly, the purchase of its said products in commerce, as commerce is defined in the Federal Trade Commission Act. Among, and typical of th~ false, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated, as hereinabove set forth, Ly the United States mails, by advertisements in newspapers and periodicals, by radio continuities, and by circulars, leaflets, pamphlets, and other advertising literature, are the following: SCHOLL Manufacturing CO., INC. 15 13 Complaint In relation to said device designated as Zino-Pads- 1. Pain stops instantly.

2. Pain stops the instant you apply Dr. Scholl's Zino-Pads. 3. Stops pain in one minute.

4. Corns, callouses soon lift out.

5. Ends corns.

6. -- healing - pads.

7. New miracle relief from corns, callouses, bunions, sore toes. and in relation to said device designated Dr. Scholl's Kurotex Foot Plaster- Instantly relieves corns, sore toes, callouses, bunions, tender spots on feet and toes' caused by new or tight shoes.

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 o_f respondent's said products, respondent represents that the use of said Dr. Scholl's Zino-Pads stops pain instantly and in 1 minute; that corns and callouses can be lifted out after the application of said Zino- Pads without the use of surgery or other aids; that the use of said Zino-Pads is a cure or remedy for corns, callouses, and bunions; that the said Zino-Pads have healing properties; that the use of said Zino~ Pads abolishes shoe pressure and friction; and that the use of said Kurotex Foot Plaster instantly relieves the pain caused by corns, sore toes, callouses, bunions, and tender spots on the feet and toes caused by new or tight shoes.

PAn. 3. 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, said product or device known as "Dr. Scholl's Zino-Pads" is not a cure or remedy for corns, callouses, or bunions. Said product will not relieve pain instantly or in 1 minute, any relief from pain· afforded by the use of said product being gradual. The use of said product will not make. it possible to lift out corns or callouses without the use of surgery, although in some cases, as a result of relieving the pressure of shoes, it may be possible to peel off or remove layers of the corn. Said Zino- Pads have no healing qualities. The use of respondent's product i'Kurotex Foot Plaster" does not instantly relieve the pain caused by corns, sore toes, callouses, bunions, or tender spots on the feet caused by new or tight shoes, Lut would give only such degree of relief as would follow from the protection from outside pressure and friction, and then only as long as these pads were employed or worn for protective purposes.

Findings 32F. T.C.

PAR. 4. The use by the respondent of the foregoing false, deceptive, and misleading statements and advertisements disseminated as aforesaid, has the capacity and tendei1cy to and does mislead and deceive a substantial number of members of the purchasing public into the erroneous and mistaken belief that such false statements, representations, and advertisements are true and induces a portion of the purchasing public, because of such erroneous and mistaken belief,. to purchase respondent's products or devices.

PAR. 5. The aforesaid acts and practices of the respondent, as herein alleged, are all to the prejudice and injury of the public and ~onstitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. RuonT, FINDINGS AS TO THE Facts, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 20, 1940, issued and served its complaint in this proceeding upon respondent, Scholl Manu· facturing Co., Inc., charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. . On September 14, 1940, respondent filed its answer in which answer it admitted all 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 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. The respondent, Scholl Manufacturing Co., Inc., is a corporation organized and existing under and by virtue of the laws of the State of New York and having its office and principal place of business at 211 '\Vest Shiller Street, in the city of Chicago, State of Illinois.

Respondent is now, and has been for several years last past, engaged in the manufacture, sale, and distribution of certain devices known as "Dr. Scholl's Zino-Pads" and "Dr. Scholl's Kurotex Foot Plasters," and designed for the treatment of corns, bunions, and other foot ailments.

SCHOLL MANUFACTURING CO.; INC, · 17 13 Findings Respondent causes said devices, when sold, to be transported from its aforesaid place of business in the State of Illinois or from the State of origin of the shipment thereof to the purchasers thereof at their respective points of location in various States of the United States other than the State of origin of the shipment and in the District of Columbia. Respondent maintains, and a.t all times mentioned herein has maintained, a course of trade in said devices in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 2. In the course and conduct of its aforesaid business, the respondent 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 products; and respondent has also disseminated alld is now disseminating, and ~as 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 b.e disseminated, as hereinabove set forth, by United States mails, by advertisements in newspapers and periodicals, by radio continuities, and by circulars, leaflets, pamphlets, and other advertising literature, are the following:

In relation to said device designated as Zino-Pads: 1. Pain stops instantly.

2. Pain stops the instant you apply Dr. Scholl's Zino-Pads. 3. Stops pain in one minute.

4. Corns, callouses soon lift out.

5. Ends ·corns.

6. - - healing - - pads.

1. New miracle relief from corns, callouses, bunions, sore toes. and in relation to said device designated Dr. Scholl's Kurotex Foot . Plaster:

Instantly relieves corns, sore toes, callouses, bunions, tender spots on feet and toes cnused by new or tight shoes.

Through the use of the statements hereinaboye set forth, and others similar thereto not specifically set out h~rein, all of which 18 FEDERAL TRADE COMM:ISSION DECISIONS Conclusion 32F.T.C.

purport to be descriptive of the remedial, curative, or therapeutic properties of respondent's said products, respondent represents that the use of said Dr. Scholl's Zino-Pads stops pain instantly and in 1 minute; that corns and callouses can bo lifted out after the application of said Zino-Pads without the use of surgery or other aids; that the use of said Zino-Pads is a cure or remedy for corns, callouses, and bunions; that the said Zino-Pads have healing properties; and that the use of said Kurotex Foot Plaster instantly relieves the pain caused by corns, sore toes, callouses, bunions, and tender spots on the feet and toes caused by new or tight shoes. PAR. 3. The aforesaid representations and claims used and disseminated by the respondent as hereinabove described are grossly exag· gerated, misleading and untrue. In truth and in fact, said 'product or device known as "Dr. Scholl's Zino-Pads" is not a cure or remedy for corns, callouses, or bunions. Said product will not relieve pain instantly or in 1 minute, any relief from pain afforded by the use of said product being gradual. The use of said product will not make it possible to lift out corns or callouses without the use of surgery, although in some cases, as a result of relieving the pressure of shoes, it may be possible to peel off or remove layers of the corn. Said Zino-Pads have no healing qualities. The use of respondent's product "Kurotex Foot Plaster" does not instantly relieve the pain caused by corns, sore toes, callouses, bunions, or tender spots on the feet caused by new or tight shoes, but would give only such degree of relief as would follow from the protection from outside pressure and friction, and then only as long as these pads were employed or worn for pro· tective purposes. . PAR .. 4. The use by the respondent of the foregoing :false, deceptive, and misleading statements and advertisements disseminated as afo;e· said, has the capacity and tendency to and does mislead and decmve a substantial number of members of the purchasing public into the erroneous and mistaken belief that such false statements, representa· tions, and advertisements are true and induces a portion of the pur· chasing public, because of such erroneous and mistaken belief, to purchase respondent's products or devices.

CONCLUSION The aforesaid acts and practices of tit~ respondent, as herein :foun?, . are all to the prejudice and injury of t.he public and constitute un:fai~ and deceptive acts and practices in commerce within the intent an meaning of the Federal Trade Commission Act. SCHOLL MANUFACTURING CO., INC. . 19 .18." Order ORDF.R TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of the respondent, in which answer respondent admits all the material allegatiqns 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 Trn.de Commission Act. · · It i8 ordered, That respondent, Scholl Manufacturing Co., Inc., a corporation, 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 its products, "Dr. Scholl's z:no- Pads" and "Dr. Scholl's Kurotex Foot Plasters," whether sold.under the same name or any other names, do forthwith cease and desist from directiy 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 the use of said "Dr. Scholl's Zino-Pads" stops pain instantly, or in 1 rilinute; that corns or callouses can be lifterl out after the application of said "Dr. Scholl's Zino-Pads" without the use of surgery or other aids; that the use of said "Dr. Scholl's Zino-Pads" is a cure or remedy for corns, callouses, or bunions; that said "Dr. Scholl's Z\no-Pads" have healing properties; or that the use of said "Kurotex Foot Plasters" instantly relieves the pain caused by corns, sore toes, callouses, bunions, or tender spots on the feet caused by new or tight shoes, or gives any degree of relief for such conditions in excess of that which follows .from the protection from outside pressure and friction, or gives any relief from such conditions except during the time that said "Kurotex Foot Plasters" are worn.

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 said "Dr. Scholl's I\:urotex Foot Plasters," or of said "Dr. Scholl's Zino-Pads," which advertisements contain any of the representations prohibited in Paragraph 1 hereof.

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.

20 FEDERAL TRADE CO.MMISSION DECISIONS Syllabus 32 F. T. 0.