Rex Drug Company

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IN THE M:ATI'ER OF REX DRUG COMPANY, AND LOUIS PODROFSKI, INDIVID- UALLY AND TRADING AS REX DRUG COMPANY, AND AS AN OFFICER THEREOF COMPLAINT, FDfDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION 01!' SEC. ~ OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Doch·et 4·112. Complaint, Oct. Hi, 1.'140-Deci.~ion, July 11, 1941 1\"hPI'P n l"orporation :md an indiYillnnl, who was p1·e~ident and treasurer thereof nnd directly'd a]l(l controlled its policies nnd practices, engaged in interstate sale anll distribution of various m!'11icinal pr~>variations, including one designated "Rrx l'erio Pills," for treatment of delayed menstruation; by mau:,; of ad\·ertisements disseminated through the mails, in periodicals, and by cil'cnlars, leaflets, pamphlets, and other advertising literature; in cooperation with one another~ ( '') H<>presentl'tl, llirl'ctly or by implication, thn t their said preparation constituted a comret!'nt and effective treatml'nt for delayed, scanty, and painful mPustruation, :mll that it was safe nml harmless; The facts being it was not a competent or effective treatment for said condition, and was uot safe or harmless, in that it contained certain (]rugs, use wher!'of under . the conditions pre:;cril.Jed in said ad\·ertisements or under ;;uch <:olltlitions ns ure customary or u:mal, mi~ht result in gastro-intestinnl disturl.Janc!'s ami exce~;;ive cong!'stion anll hemorrhage of the pelvic organs, und, where u:>!'d t<.l interfere with pregnancy, might result in uterine infection an <I blood poh;uning or other serious and irreparable injury t<l health; and (b) Failed to rev Pal filets material in the light of such representations, and that th!' use of said preparation under prcserib!'d or usual conditions might result in said ;;erious and irreparable injury; With effect of mi~lending and tlecPiYing a sul.Jstantial portion of the purchasing vuhlic into the belief that their sail! prevarutiou pos;;essed properties which it dill not in fact pos;;ess, and that it was safe and harmless, when such was not the fact, ami with result, that, l.Jecnuse of such l.Jelief, said public purchased substantial quantities of their preparation: Held, That ;;uch act.s and practices, under the circumstances set forth, were all to the prejudice and injm·y of the pul.Jiic, and constituted unfair and tl!'c!'pth·e nets and vructices in commerce. Defore Mr. Arthur F. Thoma.~, trial examiner. Mr. lVilliam L. Taggart for the Commission. Jacobson, Merrick, Nierman & Silbert, of Chicago, Ill., for re::;pondents.

Col\IPLAINT 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 Rex Drug Co., a REiX DRUQI CO. 'ET AL. 625 ti24 Complaint corporation and Louis Podrofski, individually and trading as Rex Drug Co., and as an officer of Rex Drug Co., a corporation, 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 1·espect as follows:

PARAGRAPH 1. Respondent Rex Drug Co. is a corporation organized and doing business under the laws of the State of Illinois, with its principal office and place of business located at 201 East Thirty-fifth Street, Chicago, Ill.

Respondent Louis Podrofski is an individual trading as Rex Drug Co. with his principal office and place of business located at 201 East Thirty-fifth Street, Chicago, Ill. Respondent Podrofski is also president and treasurer of the corporate respondent Rex Drug Co. and directs and controls the policies and practices of the corporate respondent.

The respondents have acted in conjunction and cooperate with each Dther in carrying out the acts and practices hereinafter alleged. PAR. 2. Respondents are now and for more than 2 years last past have been engaged in the sale and distribution of various medicinal preparations, including a preparation designated Rex Perio Pills, intended for use in the treatment of delayed menstruation. Respondents cause and have caused their s·aid preparation, when sold, to be transported from their place of business in the State of Illinois to the purchasers therfof located in various other States of the United States and in the District of Columbia. Respondents maintain and at all times mentioned herein have maintained a course of trade in their said preparations 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 o£ their aforesaid business, the Tespondents 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 nre 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, misleading, and deceptive statements and representations contained in said false advertisements, disseminated and caused to be disseminated as hereinabove Complaint 33F.T.C.

set forth, by the United States mails, by advertisements in periodicals and by circulars, leaflets, pamphlets, and other advertising literature are the following:

Ladies • • • For abnormally Delayed Periods. REX PERIO PILLS used for many years by many women all over the country for the relief of ABNORMAI.LY DELAYED, SCANTY, and PAINFUL llfENSTRUATION PERIODS, when due to unnatural causes.

Rex Perlo Pills have given timely relief to many c~msiderably past due, abnormally delayed periods and are pr·aised highly by many women all over the country because they were not disappointed in their time of need, and for this reason tell one another how good they are for relief of abnormal, unnatural delay ..

This non-foeticidal compound Is composed of time tested ingt·edients, such as have been In use by many physicians in their practice for many years. It contains no 'Opiates, no dope, no narcotic, no habit forming drugs, so why take a chance and maybe experience the fretfulness and jitters that are often caused by unnatural delay? Order a box of Rex Perlo Pills at once and see for yourself the satisfactory relief they may bring you, which is just what women want, not flashy and exaggerat~d claims.

We cannot begin to tell you about the many satisfied customers we have all over the country and about the wonderful relief and satisfaction they report from these pills, In their time of need. Nothing we can say about the satisfactory relief these pills afford will be nearly as convincing as your using them yourself would be, and so sure are we that they will prove their satisfaction to you, that we make this liberal offer of your money back in full on the first box, it they fail to prove satisfactory.

Yon must agree with us that nothing could be more fair to you, and in no other way except by trying them could you experience the satisfaction their fine Ingredients, carefully compounded, will afford you, at this fretful trying time, when you really need something excellent. Then too, absolute privacy Is assured when ordering from us. No prying eyes or gossipy tongues to know your business.

Some women keep these pills always on hand and take a few just before the due time, so as to help obtain the relief of a full, unsuppressed period, free from abnormal delay, which is so desirable. • • • PAR. 4. Through the use of the foregoing statements and representations, and others of similar import not specifically set out herein, the respondents have represented, directly or through inference, that their said preparation constitutes a competent and effective treatment for delayed, scanty, and painful menstruation, and that said preparation is safe and harmless.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact respondents' preparation does not constitute a competent or effective treatment for delayed, scanty, or painful menstruation. Said· preparation is not safe or harmless, as it contains the drugs ergotin, extract of black hellebore, aloes, and (1il of savin, in quantities sufficient to cause serious and irreparable REX DRUG CO. ET AL. 627 624 Findings injury to health, if said preparation is used under the conditions prescribed in said advertisements or under such conditions as are customary or usual.

Such use of said preparation may result in gastro-intestinal disturbances, such as catharsis, nausea, and vomiting, with pelvic congestion, congestion of the uterus, leading to excessive uterine hemorl'hage, and in those cases where said preparation is used to interfere with the nor·mal course of pregnancy, such use may result in uterine infection, with extension to other pelvic and abdominal structures and even to the blood stream, causing the condition known as septicemia or blood poisoning.

Such use of said preparation may also produce a severe circulatory condition by the constriction of the blood vessels and contraction of the involuntary muscles, often with poisonous effects upon the human system, and tending to cause abortion in some instances, and may result in severe toxic conditions such as hemorrhagic diarrhea and in some instances producing a gangrenous condition of the lower limbs, resulting possibly in loss of limbs or in other serious and ilTeparable injury to health.

PAR. 6. The advertisements disseminated by 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.

PAR. 7. The use by the respondents of the aforesaid false, misleading, and deceptive statements and representations with respect to their said 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 belie£ that respondents' preparation possesses properties which it does not in fact possess, and that said preparation is safe and harmless, when such is not the fact. As a result of such erroneous and mistaken belief the purchasing public has been induced to purchase, and has purchased, substantial quantities of respondents' preparation. PAn. 8. The aforesaid acts and practices of the respondents as hen•in alleged ail' all to the prejudice and injury of the public and constitute unfair and ueceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FJNIHNGs AS TO THE FACTs, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on the loth day of October Findings 33 F. T. C. 194:0, issued, and on the 12th day of October 1940, served its com~ plaint in this proceeding upon respondents, Rex Drug Co., a corporation, and Louis Podmfski, individually and trading as Rex Drug Co., and as an officer of Rex Drug Co., a corporation, 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 and the filing of respondents' answer, the Commission, by order entered herein, granted respondents' motion for permission to withdraw said answer and to substitute therefor rrn 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 dra·wn therefrom: FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Rex Drug Co. is a corporation organized and doing business under the laws of the State of Illinois, with its principal office and place of business located at 201'East Thirty-fifth Street, Chicago, Ill.

R~spondent Louis Podrofski is an individual trading as Rex Drug Co. with his principal office and place of business located at 201 East Thirty-fifth Street, Chicago, Ill. Respondent Podrofski is also president and treasurer of the corporate respondent Rex Drug Co. and directs and controls the policies and practices of the corporate respondent.

The respondents have acted in conjunction and cooperate with each other in carrying out the act.s and practices hereinafter alleged. PAR. 2. Respondents are now and for more than 2 years last past have been engaged in the sale and distribution of various medicinal preparations, including a preparation designated Rex Perio Pills, intended for use in the treatment of delayed menstruation. Respondents cause and have caused their said preparation, when sold, to be transported from t4eir place of business in the State of Illinois to the purchasers thereof located in various other States of the United States and in the District of Columbia. Hespondents maintain and at all times mentioned herein have maintained a course of trade REX DRUG CO. ET AL. 629 624 Findings in their said preparations 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, 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 means of 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 prod~ct, 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, us "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 advertiseme11ts, disseminated and caused to be disseminated as hereinabove set forth, by means of the United States mails, by advertisements in periodicals and by circulars, leaflets, pamphlets, and other advertising litemture are the following: Ladies • • • For abnormally Delayed Periods. REX PERro riLLS used for many years by many women all over the country for the relief of ABNORMALLY DELAYED, SCANTY, and PAINFL'L MENSTRUATION PERIODS, when due to unnatural causes.

Rex Perio Pills have given timely relief .to many considerably past due, abnm·mally delayed periods and are praised highly by many women all over the country because they wet·e not disappointed In their time of need, and for this reason tell one another how good they are for relief of abnormal, unnatural delay.

This non-foeticidal compound Is composed of time tested ingreuients, such as have been in use by many physicians in their practice for many years. It contains no opiatf's, no dope, no narcotic, no habit forming drugs, so why take a chance and maybe experience the fretfulness and jitters that are often caused by unnatural delay? Order a box of flex Perio Pills at once and see for yourself the satisfactory relief they may bring you, which is just what women want, not flashy and exaggerated claims.

\Ve cannot begin to tell you about the many satisfied customers we have all O\·et• the country and about the wonderful relief and satisfaction they report ft·om these pills, In theit· time of need. Nothing we can say about the satisfactory relief these pills afford will be nearly as convincing as your using them Yourself woulu be, arul so sure are we that they will prove their satisfaction to you, that we mal{e this liberal offer of your money back in full on the first box, if they fail to pt·ove sn tisfactory. You must agree witll us that nothing could be mot·e fait• to ~·ou, and In no other way exact-pt by trying them could you experience the satisfaction their fine ingredients, cat·efully compounded, will afford you, at this fretful trying time, when you really need sometl1ing excellent. Then too, absolute privacy 11'! assured wiJCn ordering ft·om us. No prying eyes or gossipy tongues to know Your business.

Findings 33 F. T. C. Some women keep these pills always on hand and take a few just before the due time, so as to help obtain the relief of a full, unsuppt·essed period, ft·ee from abnormal delay, which Is so desirable. * * * PAR. 4. Through the use of the foregoing statements and representations, and others of similar import not specifically set out herein, the respondents have represented, directly or by implication, that their said preparation constitutes a competent and effective treatment for delayed, scanty, and painful menstruation, and that said preparation is safe and harmless.

PAR. 5. The foregoing representations are grossly exaggerated, false, and misleading. In truth and in fact respondents' preparation does not constitute a competent or effective treatment for delayed, scanty, or painful menstruation. Said preparation is not safe or harmless, as it contains the drugs ergotin, extract of black hellebore, aloes, and oil of savin, in quantities sufficient to cause serious and irreparable injury to health, if said preparation is used under the conditions prescribed in said advertisements or under such condition~ as are customary or usual.

Such use of said preparation may result in gastro-intestinal disturbances, such as catharsis, nausea, and vomiting, with pelvic congestion, congestion of the uterus, leading to excessive uterine hemorrhage, and in those cases where said preparation is used to interfere with the normal course of pregnancy, such use may result in utei'ine infection, with extension to other pelvic nnd abdominal structures and even to the blood stream, causing the condition known as septicemia or blood poisoning.

Such use of said preparation may also produce a severe circulatory condition by the eonstriction of the blood vessels and contraction of the involuntary muscles, often with poisonous effects upon the human system, and tending to cause abortion in some instances, and may result in severe toxic conditions such as hemorrhagic diarrhea and in some instances producing a gangrenous condition of the lower legs, resulting possibly in loss of legs or in other serious and irreparable injury to health.

PAR. 6. The advertisements disseminated by 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.

PAR. 7. The use by the respondents of the aforesaid false, misleading, and deceptive statements and representations with respect to REX DRUG CO. ET AL. 631 624 Order their said preparation, disseminated as aforesaid, has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the pm:chasing public into the erroneous and mistaken belief that respondents' preparation possesses properties which it does not in fact possess, and that said preparation is safe and harmless, when such is not the fact. As a result of sucli erroneous and mistaken belief the purchasing public has been induced to purchase, and has purchased, substantial quantities of respondents' 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. OflDER 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 that they waive all intervening procedure and further hearing as to said facts: and the Commission having made its finaings as to the facts and its conclusion that said respondents have violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondents, Rex Drug Co., a corporation, and its officers, and Louis Podrofski, as an officer of said corporation, and as an individual trading as Rex Drug Co., or trading under any other name or names, their representatiws, agents, aml employees, directly or t~u·ough any corporate or other device, in connection with the offering for sale, sale or distribution of their medicinal preparation known as Rex Perio Pills, or any other medicinal preparation or product of substantially similar composition 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 Le disseminated any advertisement by means of the United States mails, or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, which advertisement represents, directly or by implication, that said preparation constitutes a competent or effective treatment for delayed, scanty, or painful menstruation, or that said preparation is safe or harmless; or which advertisement fails to reveal that the use of said Order 33F. T. C.

preparation may cause gastro-intestinal disturbances and excessive congestion and hemorrhage of the pelvic organs, aml in cases of pregnancy, may cause uterine infection" and blood poisoning. 2. Disseminating or causing to be be disseminated any advertisement by any means for the purpose of inducing or which is likely t<> induce, directly or indirectly, the purchase in commerce as "commerce" is defined in the Federal Trade Commission Act, of said preparation, which advertisement contains any of the representations prohibited in paragraph 1 hereof, or which advertisement fails to reveal that the use of said preparation may cause gastro-intestinal disturbances and excessive congestion and hemorrhage of the pelvic organs, and in case~ of pregnancy, may cause uterine infection and blood poisoning. It is further ordered, That respondents shall within 10 days after service upon them of this order, file with the Commission an interim report in writing, stating whether 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 form in which they have complied with this order.

MOTOR TIR:E REri'READ CO., INC. ET AL. 633 Syllabus IN THE MATI'ER OF