Julius Miller

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IN THE :MAT.rer OF JULIUS MILLER AND JESSIE MILLER, TRADING AS MILLER DRUG COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS ·APPROVED SEPT. 26, 1914 Docket 4363. Complaint, Oct. 25, 191,0-Decision, Dec. 12, 1940 Where two Individuals engaged in interstate sale and distribution of their variously designated "Belite," "Reducers," and "Miller's Reducing Prescription"; in advertisements of their said medicinal preparation which they disseminated and caused to be disseminated through the mails and by other means in commerce, and otherwise, and by advertisements in newspapers and other advertising literature, and which were intended and likely to induce purchalie of their said product- ( a} Represented that their said medicinal preparation was a cure or remedy for obesity and constituted a safe, competent, and effective treatment therefor, and for reduction of body weight, facts being it did not constitute such a treatment, and was not safe, by virtue of inclusion therein of desiccated thyroid extract, present therein in quantities sufficient to cause serious and irreparable injury to health, if used under conditions prescribed in said advertisements or under such conditions as are customary or usual, and which, thus used, would accelerate rate of metabolism, burning body tissues in excess of that which is normal, and might produce nausea and various other etrects, including angina pectoris, and result, among other things, in permanent injury to tissues, organic functions, and entire body mechanism, and irreparable injury to heart muscles, as in detail set forth; and (b) Failed to reveal in said advertisements facts material In the light of the representations therein contained, and that use of said preparation under conditions prescribed in said advertisements, or under such conditions as are customary or usual, might result in serious and irreparable Injury to health, In that it accelerated rate of metabolism, thereby burning body tissues in excess of normal and causing permanent Injury to heart, thyroid gland, and other vital organs;

With effect, through use of aforesaid false, deceptive, and misleading statements and representations with respect to their said preparation, disseminated as aforesaid, of misleading and deceiving substantial portion of purchasing public into erroneous and mistaken belief that such statements, representations, and advertisements were true, and of inducing portion of said public, because of such erroneous and mistaken belief, to purchase their said preparation :

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

Mr. James L. Baker for the Conunission.

Stone & Hoffenberg, of Rochester, N.Y., for respondents. :!\filler DRUG CO. 123 Complaint 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 Julius Miller and Jessie Miller, individuals trading as Miller Drug 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, Julius Miller and Jessie Miller, are individuals trading as Miller Drug Co., with their office and principal place of business at 1160 North Clinton A venue, Rochester, N. Y., from which address they transact business under the above trade name.

Respondents, Julius Miller and Jessie Miller as individuals trading as Miller Drug Co., act in conjunction and in cooperation with each other in performing the acts and practices hereinafter alleged. PAR. 2. The respondents are now, and :for more than 1 year last past have been, engaged in the sale and distribution of a certain medicinal preparation designated as Belite, Reducers, and as Miller's Reducing Prescription. . In the course and conduct of their business the respondents cause said medicinal preparation when sold to be transported from their place of business in the State of New York to purchasers thereof located in other States of the United States and in the District of Columbia.

At all times mentioned herein, respondents have maintained a. course of trade in said medicinal preparation sold and distributed by them 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 their aforesaid business, the respondents have disseminated and are now disseminating, and have caused and are now causing the dissemination of, false advertisements concerning their said product by the United States .mails and by various other means in commerce, as commerce is defined in the Federal Trade Commission Act; and respondents have also disseminated and are now disseminating, and have caused and are now causing the dissemination of, false advertisements concerning their said product, by various means, for the purpose of inducing, and which are likely to induce, directly or indirectly, the purchase of their said product, in commerce, as commerce is defined in the Federal Trade Commission Act. Among and typical of the false, mis- 124 FEDERAL TRADE CO:MMISSION DECISIONS Complaint 32F.T.C.

leading, and deceptive statements and representations contained in said false advertisements disseminated and caused to be disseminated ·as hereinabove set forth, by United States mails and by advertisements in newspapers and other advertising literature, are the following:

Reduce 10-20 lbs. in a month.

Miller's Reducing Prescription.

Harmless ingredients guaranteed by the 1\Iiller Drug Co.

PAR, 4. By the use of the representations hereinabove set forth and other representations similar thereto not specifically set out herein, the respondents represent and have represented that their medicinal preparation, designated as Belite, Reducers, and as Miller's Reducing Prescription, is a cure or remedy for obesity and constitutes a safe, competent, and effective treatment for obesity and the reduction of bodily weight.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact, the medicinal preparation sold and distributed by the respondents as aforesaid, designated as Belite, Reducers, and as Miller's Reducing Prescription, is not a cure or remedy for obesity and does not constitute a competent or effective treatment for obesity or the reduction of bodily weight. Moreover, said preparation is not safe, in that it contains desiccated thyroid extract.

The aforesaid drug is present in the said medicinal preparation in quantity sufficient to cause serious and irreparable injury to health if used under the conditions prescribed in said advertisements or under such conditions as are customary or usual. Such use of said medicinal preparation accelerates the rate of metabolism, thereby burning the body tissues in excess of that which is normal, and may produce nausea, vomiting, headaches, muscular and particular pains, vertigo, insomnia, physical exhaustion, tremor, tachycardia, and angina pectoris. The use of said preparation, as aforesaid, may also result in thyroid toxicosis, permanent injury to tissues, organic functions, and the entire body mechanism, and irreparable injury to the heart muscles, with auricular fibrillation. The advertisements disseminated by the respondents as aforesaid constitute false advertisements for the further reason that they fail to reveal facts material in the light of the representations contained therein, and fail to reveal that the use of said preparation under the conditions prescribed in said advertisements, or under such conditions as are customary or usual, may result in serious and irrepar· MILLER DRUG CO. 125 122 Findings able injury to health, in that it accelerates the rate of metabolism, thereby burning the body tissues in excess of that which is normal, causing permanent injury to the heart, thyroid gland, and other vital Qrgans.

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 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 statements, representations, and advertisements are true and induces a portion of the purchasing public, because Qf such erroneous and mistaken belief, to purchase respondents' medicinal preparation.

PAn. 7. The foregoing acts and practices of the respondents, 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 ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on October 25, 1940, issued, and on October 26, 1940, served its complaint in this proceeding upon respondents, Julius Miller and .Tessie Miller, individuals trading as Miller Drug Co., charging them with the use of unfair and deceptive acts and Practices in commerce in violation of the provisions of said act. Subsequently respondents filed their answer, in which they admitted all the lnaterial 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 ()ommission, 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, Julius Miller and Jessie Miller, are inqividuals trading as Miller Drug Co., with their office and principal Place of business at 1160 North Clinton Avenue, Rochester, N. Y., :from which address they transact business under the above trade name. 322695m--41--VOL. 32----9 Findings 32F. T: c~ Respondents, Julius Miller and Jessie Miller, as individuals trading: as Miller Drug Co., act in conjunction and in cooperation with each other in performing the acts and practices hereinafter described. PAR. 2. The respondents are now, and for more than 1 year last past have been, engaged in the sale and distribution of a certain medicinal preparation designated as Belite, Reducers, and as 1\Iiller~s Reducing Prescription.

In the course and conduct of their business the respondents cause said medicinal preparation when sold to be transported from theirplace of business in the State of New York to purchasers thereof located in other States of the United States and in the District of Columbia.

At all times mentioned herein, respondents have maintained a course· of trade in said medicinal preparation sold and distributed by them in commerce between and among the various States of the United' States and in the District of Columbia.

P .AR. 3. In the course and conduct of their aforesaid business, the· respondents have disseminated and are now disseminating, and have caused and are now causing the dissemination of, false advertisements concerning their said product by the United States mails and by various other means in commerce, as commerce is defined in the Federal Trade Commission Act; and the respondents have also disseminated and are now disseminating, and have caused and are now causing the dissemination of, false advertisements concerning their said product, by various means, for the purpose of inducing', and' which are likely to induce, directly or indirectly, the purch~se of their said product in commerce, as commerce is defined in the Federaf Trade Commission Act. Among and typical of the false1 misleading; and deceptive statements and representations contained in said false· advertisements disseminated and caused to be disseminated as hereinabove set forth, by United States mails and by advertisements in newspapers and other advertising literature, are the following~ Reduce 10--20 lbs. in a month. Miller's Reducing Prescription. Harmless ingredients guaranteed by the Miller Drug Co.

P .AR. 4. By the use of the representations hereinabove set forth,. and other representations similar thereto noii specifi"cally set o~t herein, the respondents represent and have represented that their medicinal preparation, designated as Belite, Reducers, and as Miller's Reducing Prescription, is a cure or remedy for obesity and constitutes a safe, competent, and effective treatment for obesity and thereduction of bodily weight.

MILLER DRUG CO. 127 122 Findings PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact, the medicinal preparation sold and distributed by the respondents as aforesaid, designated as Delite, Reducers, and as 1\Iiller's Reducing Prescription, is not a cure or remedy for obesity and does not constitute a competent or effective treatment for obesity or the reduction of bodily weight. 1\Ioreover, said preparation is not safe, in that it contains desiccated thyroid extract.

The aforesaid drug is present in the said medicinal preparation in quantity sufficient to cause serious and irreparable injury to health if used under the conditions prescribed in said advertisements or under such conditions as are customary or usual. Such use of said medicinal preparation accelerates the rate of :metabolism, thereby burning the body tissues in excess of that which is normal, and may produce nausea, vomiting, headaches, :muscular and particular pains, vertigo, insomnia, physical exhaustion, tremor, tachycardia, and angina pectoris. The use of said preparation, as aforesaid, may also result in thyroid toxicosis, permanent injury to tissues, organic functions, and the entire body mechanism, and irreparable injury to the heart muscles, with auricular fibrillation.

The advertisements disseminated by the respondents as aforesaid constitute false advertisements for the further reason that they fail to reveal facts material in the light of the representations contained therein, and fail to reveal that the use of said preparation under the conditions prescribed in said advertisements, or under such conditions as are customary or usual, may result in serious and irreparable injury to health, in that it accelerates the rate of metabolism, that·eby burning the body tissues in excess of that which is normal, causing permanent injury to the heart, thyroid gland, and other \"ital organs.

PAR. 6. The use by the respondents of the foregoing false, deceptive, and misleading statements and representations with respect to their preparation, disse~inated 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 :mistaken belief that such statements, representations, and advertisements are true and induces a portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondents' medicinal preparation.

Order 32F. T. C.

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. ORDER 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 respondents, in which answer the respondents admit all the material allegations of fact set forth in said complaint and state th:1.t they waive all intervening procedure and :fmther hearing as to said :fads, and the Commission having made its findings as to the facts and its conclusion that said respondents have violated the provisions o:f the Federal Trade Commission Act.

It is ordered, That the respondents~ Julius Miller and Jessie Miller, individually and trading as Miller Drug Co., or trading under any other name or names, their representatives, agents, and emnloyees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of their medicinal preparation designated as Belite, Reducers, and Miller's Reducing Prr£cription, or any medicinal preparation of substantially similar composition, or possessing substantially similar properties, whether sold under the same names or under any other name, do forthwith cease and desist from directly or indirectly- !. Disseminating or causing to be disseminated any advm·tisement (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 advertisement represents, directly or through inference, that said preparation is a cure or remedy for obesity or constitutes a safe, competent, or effective treatment for obesity or the reduction of body weight; or which advertisement fails to reveal that the use of said preparation may result in permanent injury to the heart, thyroid gland, and other vital organs.

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 prep~nation, which advertisement contains any of the representations prohibited in paragraph 1 hereof, or which advertisement Iails to reveal that the use MILLER DRUG CO. 129 122 Order of said preparation may result in permanent injury to the heart, thyroid gland, and other vital organs.

It is further ordered, That the respondents shall, within 10 days after service upon them of this order, file with the Commission an interim report in writing, stating whetha they intend to comply with this order, and if so, the manner and form in which they intend to comply; and that within 60 days after the service upon them of this order, said respondents shall file with the Commission a report in writing, setting forth in detail the manner and fo:rm in whir.h they have complied with this order.

Syllabus 32F.T.C.