Income Audit Service Corporation

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IN THE MATTER OF I lNCOliE .AUDIT SERVICE CORPORATION AXD FRANK H. IIIBBERD C01iplai~T. FI:>/DDIGS, AND ORDER IN REGARD TO THE ALLEG~D VIOLATION . OF SEC. 5 OF AN .ACT OF CONGRIDSS APPROVED SEPT. 26, 1914 Docket 4715. Complaint, Feb. 25, 1942-Decision, July 13, 19.j2 Where u corporation vnd its prin~ipal stockholllet' who controlled Its pt·actlces ana policies, engaged in the compilation and interstate sale and distribution Of their ''Income Audit Service" or bookkeeping anu accounting or business record system, consisting of a bound ledger for recording business transactions, and of a cettlficate of service wherein they agt·eed, upon request, that they would prepare the Federal Income tax returns of purchasers of sald service and advise them with regard to income, Social Security, and Other accounting questions; through the me<llum of the mails and through · their salesmen and canvassers, directly and by Implication- ( a) Falsely represented that their said representatives wet·e officers, agents. or represehtatives of the United States Government, an<l, in particular, of the Income Tax Unit of the Treasury, an<l that the purchase and use of a bookkeeping, accounting, or record system, and mor.e particularly their own, Was required under the· laws ol the Government or the rule!i, regulations, or Orders ol some department or agency thereof; (b) Falsely represented that their Income Audit Service emanated from, or was sold and distributed un<ler the auspices of, the Government or said Income Tax Unit, that it was the only bool>kPfpinr,, accounting, or business record system approved by the Government or said Unit, and that all others in use must be removed and replaced by their own: and (c) Falsely represented that prospective purchasers who failed to purchase and use their sai<l "Income Audit Service" and dld not com11ly with requests or demands of their representatives or salesmen in connection with its sale would, as a result, subject themselves to arrest or imprisonment; . lV'Ith effect of misleading and deceiving a substantial portion of the purchasing Public into the erroneous belief that such representations were true, thereby .~ausing it, because of spch mistaken belief, to purchase substautlal quantities of said "Incom~~ Au<lit Service":

lield, That such nets and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and pr11ctices in commerce. . Before Mr. Clyde 11!. Hadley, trial examiner. '- Mr. B. G. Wilson for the Commission.

Mr. John N. TonJestad, of Brentwood, Md., and 11/r. llyrnan 111. Ool<lstein, of \Vashington, D. C., for respondents. . Col\IPLAINT Pursuant ~o the provisions of the Federal Trade Commission Act, nnd by virtue of the authority vested in it by said act, the F~dernl 160 FEDERAL TRADE COMMISSION DECISION.S Complaint 35 F. T.C. Trade Commission, having reason to believe that Income Audit Sery· ice Corporation, a corporation, and Frank H. Hibberd, individually and as an officer of said Income Audit Service Corporation, hereinafter referred to as respondents, have violated the provisimfs 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: P.\RAGRAPH 1. Respondent, Income Audit Service Corporation, is 11 corporation organized, existing, and doing business under and bY virtue of the laws of the State of M!!l'yland. Respondent, Frank IJ. Hibberd, is an individual and is the principal stockholder in and an officer of respondent Income Audit Service Corporation and controls and dominates ·the practices and policies of the corporate respondent. Doth of the respondents have their office and place of business at 3407 Perry Street, Mount Rainier, Md.

PAR. 2. The respondent corporation is now, and for more than one year last past has been, under the supervision and control of said · respondent, Frank H. Hibberd, engaged in the compibtion of a so· called "Income Audit Service" and in the sale and distribution there· of in commerce between and· among the various States of the United States and in the District of Columbia.

Respondents have acted together and in cooperation each with the other in doing the acts and things alleged hereinafter. Respondents cause and have caused said "Income Audit Service,'' wlrcn sold, to be shipped from said place of business in MarylnnJ to the purchasers thereof located in the various States of the United States other than Maryland and in the District of Columbia. Respondents maintain and at all times mentioned herein have main· tained a course of trade in the said "Income Audit Service" in conl· merce between and among the various States of the United States and in the District of Columbia. . PAn. 3. Said "Income Audit Service" comprises a bookkeeping and accounting or business records system consisting of a bound record fol' recording various business tra?sactions. Included in said "Income· 1 Audit Service'' is a certificate of service, wherein respondents, npoil request, agree to prepare the federal income tax return of purchasers of said "Income Audit Service" and to advise subscribers with regard to income, social security tax, and other accounting questions. PAR. 4. In the course and conduct of said business, and for the pur· pose of inuucing the purchase of said "Income Audit Service," re· spondents directly, inuirectly, impliedly, and inferentially, through the medium of the United States mails and through nwthods used bY representatives, salesmen, agents, and canvassers under their direction, INCOME AUDIT Sli:RVICE· CORP.· ET AL. 161 Complaint control, and supervision, have made many representations to pur- ~hasers and prospective purchasers in the solicitation aud sale of said Income Audit Service," among and typical of which are the following:

l. That respondents' representatives, salesmen, agents, and can- ~asserts are officers, agents, or representatives of the United States Government and, in particular, of the Income Tax Unit of the Departl:llent of the Treasury. · '2. That the purchase and use of a bookkeeping, accounting, or busi- . !less record system, and, more particularly, of respondents' said "In- . Conle Audit Service," is necessary or required under the laws of the bnited States or under the rules, regulations, or orders of some de- Partment or agency thereof.

3. That respondents' "Income Audit Senice" emanates from or is Sold and distributed under the auspices of the United States Government or the aforementioned Iucome Tax Unit. l 4. That respondents' said "Income Audit Service" ~s the on.ly book- ~eeping, accounting, or business record system approved by the United states Government or said Income Tax Unit, and that all other sys- 1<'~s or services in use must. be reinoved and replaced by respondents' ~Uld "Income Audit Service."

5, That prospective purchasers who fail to purchase and use respondents' said "Income Audit Service" or who do not comply with . I the requests or demands o£ J;"respondents' representatives, salesmen, agents, or canvassers as made by them in connection with the sale o£ te11ondents' said "Income Audit Service" will as a result of such failure to purchase and use said service and of noncompliance with the del'nands of such representatives, salesmen, agents, or canvasser.s, subject themselves to arrest or imprisonment.

PAR. 5. The said representations as made by respondents in the man- ~er and method as hereinabove set out in paragraph 4 are false, miseading, and deceptive. In truth and in fact, respondents' repreagents, salesmen, and canvassers are not officers or agents sentatives, of, nor are they in any manner connected with, the United States lI Go,·ernment, the Income Tax Unit of t11e Department of the Treasury, II ~ any other department or agency o£ the United States Government. i respondents' said "Income Audit Service" is not necessary or req~ired under the laws of the United States or under the rules, regula.- ~ons, or orders of the Inc_ome Tax Unit of the Department of the reasury, or any other department or agency of the United States Government. Respondents' "Income Audit Service" does not emanate I fl·om, nor is it sold and distributed u~der the auspices of, the United 162 FEDERAL TRADE COl\IMISSION DECISIOXS Findings 35F. T.C.

States Government, or any department or agency thereof. In fact, 110 other bookke()·ping, accounting, or business record syst~:>m purchased or in use need be removed and replaced by respondents' said ''Inc0111e Audit Service." Prospective purchasers who do not purchase and use said "Income Audit Service" or comply with the request or demand made by respondents' representatives, salesmen, agents, and canvasser~ in connection with the sale of respondents' "Incon1e Audit Service' will not, as a result o£ such failure to purchase and use said "Incot118 Audit Service" or comply with the request or demand of said repre·. sentatives, salesmen, agents, and can~asserts, be subject to arrest or imprisonment. · PAR. 6. The use by the 1'respondents of the aforesaid false and mis· leading statements and r~presentations has the tendency and cap<tcitY . to, and does, mislead and deceive a substantial portion of the pur· chn,sing public into the erroneous and mistaken belief that such state· rnents and representations are true, and to cause the public, because of such erroneous and mistaken belief, to purchase substantial quantities of respondents' said "Income Audit Service_." PAn.· 7. The aforesaid acts and practices of the respondents, ns herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce withill the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS As TO TIID F Acrs, AND Onder 1 Pursuant to the provision~s of the Federal Trade Com1i1ission Ad, the Federal Tmde Conunission, on February 25, 1942, issued and subsequently served its complaint in this proceeding upon respond· ents, In~ome Audit Service Corporation, a· corporation, and Fran~ H. Hibberd, individually and as an officer of said I~come Audit 1 The findings as to the facta are publlshed as modified by order dated October 23, 1!'42• as follows:

This matter corning on to be heard by the Commission upon respondents' motion to delete the word "directly" from line four, paragraph 4, page 3, of the Findings as to th: Facts and certain other words from the Order to Cease and Desist, and it appearing tillld respondents' motion is well founded insofar as It relates to the deletion of the wor "directly" from line 4 ot paragraph 4 of the Findings as to the Facts, but Is not weil founded Insofar as It involves the deletion of certain words from the Order to Cease and Desist, and the Commission having duly considered the matter and being now full1 ad\'ised In the premises: . It is ordered, That the Findings as to the Facts lssuc_d herein on July 13th, 194!!, be, and they hereby are, modified to the E'extent of deletln:.l' from line four of llaragr•IJ•h 4 ot said Findings the word "directly": and that in all other respects the Findings nA to tb9 l<'acts and Conclusion issued by the Commission on· July 13th, 194!!, remain in full torce and effect.

It fs further tJrdered, That the motion to delete from the Order to Cease and Desist issued on July 13th, 1942, certain words, to wit, "directly or through any corporate or other device" imd the words "directly or by Implication" be, and the same hereby Js, denied.

!~TOME AUDIT SERVICE CORP. ET At. 163 159 Findings Serv-ice Corporation, charging them with unfair and deceptive .acts ?nd practices in violation of. the provisions of said act. After the lssuance of. said compla.int and the filing of respondents' answer thereto, at a hearing before an examiner of the Commission thereto· fore duly designated by it, a stipulation as to the facts was read into the record and. certain documentary evidei1.ce introduced in lieu of testimony in support of the charges stated in the complaint or in opposition thereto, and it was agreed that the Com·mission may Proceed upon said statement of facts and documentary evidence to tnrtke its findings as to the facts and its conclusion based thereon, Ulld issue its order disposing of this proceeding without the presen· tation of argument or the filing of briefs. The respondents expressly "'waived the filing of a report upon the evidence by the trial examiner. 'I'hereafter, this proceeding came on for final hearing before the Com· mission on said complaint, 'answer, stipulation as to the facts, and documentary evidence; and the Commission, having duly considered the same and being now fully advised in the premises, finds that this .Proceeding is in the interest of the public and makes this its findi1~gs as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Income Audit Service Corporation, is n,corporation organized, existing; and doing business under and by " 1rtue of the laws of the State of Maryland. Respondent, Frank H. liibberd, is an individual, and is the principal stockholder in and an Officer of respondent Income Audit Service Corporation, and conttols ~nd dominates the practices and policies of the corporate respondent. oth of the respondents have their office and place of business at 3{07 Perry Street, Mount Rainier, MJ.

PAn. 2. The respondent corporation, under the supervision and control of said respondent, Frank H. Hibberd, is now and for more than 1 year last past has been engaged in the compilation of a bookkeeping system ot service sold under the trade name "Income Audit Service," and in the sale and distribution thereof in commerce between and among the various States of the United States and in i ·I !he District of Columbia. Respondents have acted together and 111 cooperation each with the other in ·doing the acts and things hereinafter set out.

: Respondents cause and have caus~d s;id "Income Audit Service," "'hen sold, to be shipped from said place of business in Maryland to the purchasers thereof locrited in the various States of the United States other than Maryland and in the District of Columbia. Re- 164 FEDE-RAL TRAD.E COMMISSION DECISIONS Findings 35F. T.C.

~pondents maintain and at all times mentioned herein have mai~­ tained a course of trade in the said "Income Audit Service" 1n commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. Said "Income Audit Service" includes a bookkeeping and accounting or business. records system consisting of .a bound ledger :for recording various business transactions. Purchasers of said "ln· come Audit Service" are also furnished a certificate of service,' wherein respondents agree that, upon request, they will prepare th_e Federal income tax return of purchasers of said "Income Au(bt Service" and advise purchasers with regard to income, Social Security tax, and other accounting questions.

PAR. 4. In the course and conduct of said business, and for the purpose of inducing the purchase of said "Income Audit Service," respondents directly, indirectly, impliedly and inferentially, through the med.ium of the United States mails and through methods used by representatives, salesmen, agents, ancl canvassers under their direc· tion, control, and supervision, have made many representations to purchasers and prospective purchasers·in the solicitation and sale of said "Income Audit Service," among and typical of which are the following:

(a) That respondents' representatives, salesmen, agents, and can· vassers are officers, agents, or representatives of the United States Government and, in particular, of the Income Tax Unit of the Department of the Treasury.

(b) That the purchase and use of a bookkeeping, accounting, or business record system, and, more particularly, of respondents' said "Income Audit Service," is necessary or required under the laws of the United States or under the rules, regulations, or orders of some department or agency thereof.

(c) That respondents' "Income Audit Service" emanates from or is sold and distributed under the auspices .of the United States Government or the aforementioned Income Tax Unit. (d) That respondents' said "Income Audit Service" is the only bookkeeping, accounting, or business record system approved by the United States Government or said Income Tax Unit, and that all other systems or services in use must be removed and repiaced bY respondents' said "Income Audit Service."

(e) That prospective purchasers who fail to purchase and use respondents' said "Income Audit Service" or who do not comply with the requests or demands of respondents' representatives, salesmen, agents, or canvassers as made by them in connection with the sale of respondents' said "Income Audit Service" will, as a result of such INCOlHE AUDIT SERVICE CORP. ET AL. 165' 159 Order ffilure to purchase .and use said service and of noncompliance with t le .demands of such representatives, salesmen, agents, or canvassers, subject themselves to arrest or imprisonment. PA.R. 5. The said representations as made by respondents in the ln~nner and methou as hereinabove set out in paragrttph 4 are false, nusleading, and deceptive. In truth and in fact, respondents' representatives, agents, salesmen, and .canvassers are not officers or agents of, nor' are they in any manner connected with, the United States Govel·nrnent, the Income Tax Unit of the Department of the Treasu.ry, or any other department or agency of the United States Government. :Respondents' said "Income Audit Service" is not necessary or required llnder the laws of the United States or under the rules, regulations, or orders of the Income Tax Unit of the Department of the Treasury ~r any other department or. ng~nc~ of the United States Governmen~ . . respondents' "Income Audit Service" does not emanate from nor IS lt sold and distributed under the auspices of the United States Government or any department or agency thereof. In fact, no other bookkeeping, accounting, or business record system purchased or in use need be removeci and replaced by respondents' said "Income Audit ~ervice." Prospective purchasers who uo not purchase and use said Income Audit Service" or comply with the request or demnnd made by respondents' representatives, salesmen, agents, and canvassers in connection with the sale of respondents' "Income Audit Service" will not, as a result of such failure to purchase and use said "Income Audit Service" or comply with the request or demand of said representatives, ·Salesmen, agents, anu canvassers, be subject to arrest or imprisonment. PA.:lt G. The use by the respondents o£ the aforesaid false and misleading statements and representations has the tendency and capacity , and does, mislead and deceive a substantial portion of the purchas· !0 illg public into the erroneous and mistaken belie£ that such statements and representations are true, and to cause the public, because o£ such r.rroneous and mistaken belief, to purchase substantial quantities o£ .respondents' said "Income Audit Service."

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 nnd deceptive acts and practices in 'commerce within the intent and ·nteaning of the FecleTnl Trade Commission Act. OTIDER TO CEASE AND DESI:,\T · This proceeding having been heard by the Federal Trade Comtnission upon the complaint of thp. Commission and stipulation as to DE.CISIO~S "166 FEDEJ4.L TRADE C01'.1MlSSION Order 35F.T.C· the £acts entered into by and between counsel for tlle Commission and counsel £or the respondents upon the record; and the Commis~ sion having made its findings as to the facts and its conclusion that said respondents have violated the provisions of the Federal Trade Commission Att.

It is ordered, That the respondents, Income Audit Service Cor· poration, its officers, representath:es, agents, and employees, and Frank II. Hibberd, individually and as an officer of said Income Audit Service Corporation, his representatives, agents, and employees, directly or through any corporate or other device,· in. connection with·.. the offering for sale, sale, and distribution o£ a bookkeeping systeJll or service sold and distributed under the name, "Income Audit Serv'· ice," or any bookkeeping, accounting, or business record systetll whether sold under· the name, "Income Audit Service" or any other name in commerce, as "commerce" is defined in the Federal Tr::tde Commission Act, do forthwith cease and desist from representing,. directly or by implication:

1. That respondents'· agents, salesmen, or canvassers are officers, agents, or representatives of, or that they are in any manner con~ nected with, the United States Government or any department or agency thereof.

2. That respondents' bookkeeping, accounting, and business record system or "Incoine Audit Service" is necessary or requi.rej under the laws of the United States or under the rules, regulations, or orders of any department or agency thereof; or that other income tas: record systems or services must be replaced by respondents' said , system or service.

3. That respondents' bookkeeping, accounting, and business record system or "Income Audit Service" is produced by or sold and dis~ tributed under the direction of the· United States Government or any department or agency thereof.· . 4. That prospective purchasers who fail to purchase and use re· sponclents' said ''Income Audit Service" or record keeping system will be subject to arrest or imprisonment because of their failure to pur~ 'chase and use t>aid services.

It is further ordered, That 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.

MAR-GOL HEALTH PRODUCTS CORP. 167 Syllabus IN THE MA'ITER OF MAR-GOL HEALTH PRODUCTS CORP.

CO:Ut>q.INT, FD!DINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLA.TION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 19H I Doclcet 4601. Complaint, Oct. 1, 194.1-Decision, July 14, 1949! \\'ilre a corporation, engaged in the manufacture and interstate sale and distrlhutlon of its "Uoberta Blueberry Juice,'; made from the Flot·ida "Uabbit-Eye ~luebPrry" by means of advertisements in newspapers and periodicals, and · by circulars, leaflets, pamphlets, and other advertising literature- · (a) n!'presented, directly and by implication, that its said Blueberry Juice had thpr·apentie value in the treatment of stomach disorders, ulcers, constipation, fi( nmulatlon of impurities, Impaired digeRtlou, intestinal bleeding, acidosis, 'r EUwmla, .artl~ritis, liver .trouble, menstruation difficu.lties, and diabetes; .. he fads bemg It was nothmg more than a beverng·e with a foou value limited . to that of the berries from which the juice was extracteu; lt had no theru- Pl'ntic Yalue ln the treatment of stomach disorders anu other ailments above lllPntioned; and reliance thereon as a treatment for diabetes might be very \langet·ous through causing a patient to refrain from taking proper treat- . ' nwnt, particularly insulin; · (b) lli:>prescnteu in certain of its advertising that its product c<mtnined essential organic mllleral elements such us iron, pota~sium, phosphorus, magnesium, sodium, siHcon, sulphur, and calcium, by t·reason of which lt was of value in maintaining general health;

(c) lleprp;:enterl, U.ircetly and by implication, that lt was a buildct• and cleanser of reu blood. a fiusl1ing agent which promoted cell and tis~ue met.abolism, hau great healing power alld resistance-building properties, was beneficial fnr nen·e matter, e~llPCiully the heart nerve, .promoteu cell building and blnou fluidity, acted on the glands, anu ronde body fluid alkaline; and (d) P.£>pl'eRented further, .as aforesaid, that it beneficially affected maintenance ot mucous and other gland secretions; that It entered into sensitive tissues, light~ments, and arterial walls, was a powerful antiseptic anrl would increase energy; aml was effective in stimulating the 1:.ver, promoting bile flow, heautifylng the complexion, in bone and teeth building, ant! tissue repair; 'lhe facts being It contained no organic mineral eleruPnts in suflicient quantities to supply any mineral U.eflciency; and did not have the proper·ties, and would ' not a<-complish the results claimed therefor as above set forth; and (e) Fal:;~o>ly re111'esented that lt was effective as a tonic, eliminator, allmlizer, body builder, regulator, and as an antiseptic and beautifier;,__ \\"ith effect of mlslending and· deceiving a substantial portion of the purchasing public into the mistaken belief that such representations were true, thereby h'fluelng purchase of substantial quantities of said product because o~ such mbtaken belief:

1leltl, That such acts and practices, under the circnmlltances set foi·th, were all to the prejudice and injury of the public, and constituted unfair and decep· th·e acts and practices in commerce.

Before Mr. Arthur F. Tlwmas, trial examiner. · :Air. Joseph 0. Fehr and Mr. Carrel F. Rhodes for the Commission. 168 FEDE.RAL TRADE COMMISSION DE.CISIONS Complaint 35 F. T.C. Complaint Pursuant to the provisions of the Federal Trade Commission ·Act tmd by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Mar-Gol Jiealth Products Corporation, a corporation, hereinafter referred to as re· ~pondent, 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. Respondent, :Mar-Gol Health Products Corporation, is a corporation organized and existing under the laws of the State of Illinois with its principal office and place of business located at 203 North Humphrey A venue in the city of Oak Park, in the State of Illinois.

PA,R. 2. Respondent is now, and for more than 1 year last past has been, engaged in the sale and distribution of a product designated as "Roberta Blueberry Juice," in commerce between and among the various States of the United States and the District of Columbia. Respondent causes and has caused said. product, when sold, to be · transported from its place of bu~iness in Illinois to purchasers thereof located iri various States of the United States and the District of Columbia.

Respondent maintains, and at all times mentioned herein has main· tained, a course of trade in its said product in commerce between and among the various States of the United s·states and the District of Columbia. · PAR. 3. In the course and conduct.of its aforesaid business, there· spondent has disseminated and is now dissemimiting, and has caused and is now causing the dissemination of false advertisements con· cerning its said products, by United States mails, by insertion in news· papers and periodicals having a general circulation and also 1n circulars and other printed or written matter, all of which are dis· tributed in commerce among and between the various States of the United States; and by continuities broadcast from radio stations which have sufficient power to, and do, convey the programs emanating' therefrom to listeners located in various States of the United States ot~er than the State in which said broadcasts originate and by 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 its said products; and has disseminated and is now disseminating, and has caused· and is. now causing the dissemination of, false advertisements concerning MAR-COL HEALTH PRODUCTS CORP. 169 167 Complaint its ~aid products, by various means, for the purpose of inducing, and "-·l~Ich are likely to induce, directly or indirectly, the purchase of its ~Id products. i~ commerce, as commerce is. de~ned in the Federal trade Commission Act. Among and typical o£ the false state- ~ents and representations contained in said advertisements, dissem- Inated an"d caused to be disseminated, as aforesaid, are the following: Drink Roberta Blueberry Juice • • • as a body builder • • •; l1eneficial for sour stomach, ulcer, constipation, accumulation of impurities,1tlPaired digestion, intestinal bleeding, acidosious (sic), anemia, arthritis, liver trouble and menstruation difficulties • • •. Highly recommended for starch. restrictedn diet cases·, . Oberta Blueberry Juice • ·* • contains essential organic mineral ele- , ~ents ,., ,., • iron, potassium, phosphorus, magnesium, sodium, silicon, sulur and calcium· It's pleasant to' have your health restored with Roberta Blueberry Juice, a natural health food- • • •;

I! L~arn the secret of health . Get well and stay well. Drink Roberta lueberry Juice; • These blueberries, luscious and unsurpassed in therapeutic, health restorative "ulue. · b Dse' as a tonic, purifier, eliminatot·; alkalizer, builder, regulator, antiseptic, euutifler · A flushi~g agent, promotes cell and tissue metabolism, has great healing power and builds resistance;

ll Agent of life and growth. Beneficial for nerve matter .• Especially upon the enrt nerve· Promotes den building, blooa fluidity, mal•es body fluid alkaline,' acts on glands; . Ia responsible for the maintenance of mucus and gland secretions; · Enters into sensitive tissues, ligaments, arterial walls. It's a powerful antl- 6ePUc, it increases energy ;

Stimulates the liver, promotes bile flow and beautifies the complexion; , E~>sential and is responsible for bone u~d teeth building and tissue repair; A red blood builder and cleanser .

• PAR. 4. Through the use of the statements and representations herelnabove set forth, and other statements and representations similar1· thereto, not specifically set out herein, all of which purp01t to be descriptive of the food and therapeutic properties of respondent's llroduct, designated as "Roberta Blueberry Juice," respondent represents, directly and by implications, that said product is a body builder; that its use has a beneficial effect upon sour stomach, ulcers, con- ~tipation, accumulation of impurities, ini.paired digestion, intestinal ~eeding, acidosis, anemia, arthritis, liver trouble, and menstruation difflculties; that it is highly effective and beneficial for use in cases ·of starch restricted diet; that it contains essential organic mineral elelll~nts, including the mineral elements of iron, potassium, phosphorus, ~agnesium, sodium, silicon, sulphu~·, and calcium; that it is a natural •eatth-restoring food; that its use is the secret of getting well unu 170 FEDE.RAL TRADE COMMISSION DEGSIO~:S · Complaint 3-1 F. T~ C. Ftaying well; that it is unsurpassed in therapeutic, health-restoring ·value; that it is a tonic, purifier, eliminator, alkalizer, builder, reg· ulator, antiseptic, and beautifier; that it is a flushing agent which promotes cell and tissue metabolism, builds resistance and has ~rcut healing power; that it is an agent of life and growth which is brne· ficial for the nerves, and especially the heart nerve; that it' promotes cell building, blood fluidity, makes body fluid alknline, and acts oil glands; that it is responsible for the maintenance of mucus and secre· tions; that it enters into sensitive tissues, ligaments, and arterial wni19 and increases energy; that it is a powerful antiseptic; that its use sti:n· ulates the liver, promotes bile flow, and. beautifies. the complexion; that its use is essential and that its use promotes bone, teeth bnildiN~ and tissue repair; and that it is a red blood builder and cleanser. · PAn. 5. The significant representations anu advertisements used and disseminated by the respondent, as hereinabove described, are grossly exaggerated, false and misleading.

In truth and in fact, respondent's product designated as "Roberta Blueberry Juice" is not a body build~r and its use will not have a bene· .ficial effect upon sour stomach, ulcer, constipation, ·accumulation of impurities, impaired digestion, intestinal bleeding, acidosis, nnetnia, arthritis, liver trouble, and menstruation difficulties. Said product is not highly effective and beneficial for use in cases of starch restricted diet, and because of its sugar content, its _use may be dangerous to the health of one suffering from diabetes or one whose d.iet is restricted in the use of starch. Said product does not contain, in .significttnt a.mounts, the essential organic minerals, including iron, potassiutn, phosphorus, magnesium, sodium, silicon, sulphur, and calcium. S<tid product is not a natura] health-restoring food and its use is _not the secret of getting well and staying well. Said riroduct has no thera· peutic or health restorative value in excess of its mild laxative p.rop· erties. Said product is not a tonic, purifier, eliminator, alkalizer, builder, regulator, antiseptic, or beautifier; it is not a flushing agent . and it does not promote cell and tissue metabolism;-it has no- value in ·building resistance and it has no healing power. Said product is of no significant value in promoting life and growth, nor is it beneficial for the nerves~ including the heart nerve. Said product- does not promote cell building, blood fluidity, nor does it make the bod! fluid alkaline, nor does it act on glands of the body. The use of s;tid product will not be of any significant value in the maintetinnce of mucus and gland secretions~ It will not enter into sensitive tissues, ligaments, and arterial walls, or increase energy in ~x:cess of the energy derived from its sugar content. - It is not a powerful :uitiseptic; MAR-GOL HEALTH PRODUCTS CORP. 171 16i Findings llor an antiseptic in any sense of the word. The use of said product Will not stimulate the liver, promote bile flow, or beautify the complexion. Its use is not essential and will not materially promote bone and teeth building or tissue repair, nor is it a red blood builder or cleanser. . PAn. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements and advertisements with respect to its said Product, disseminated as aforesaid, has had and now has capacity and tendency to, and does, mislead and deceive a substantial portion of the :Purchasing public into the erroneous and mistaken belief .that such ~tatements, representations and advertisements are true .and _induces n substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's said product. PAn. 7. The acts and practices of respondent as herein alleged are n.U to the prejudice and injury of the public and constitute unfair lind deceptive acts and practices in commerce within the intent' and lneaning 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 October 7, 1941, issued and subse- ' quently served its complaint in this proceeding upon the respondent, Mar-Gol Health Products Corporation, a corpo.ration, cl\arging it 'With the use of unfair and deceptive acts an<.l practices in commerce in .Violation of the provisions of said act. After the issuance of said com- , Plaint and the filing of respondent's answer thereto, testimony and other evidence in support of the allegations of said complaint were introduced by J. C. Fehr, an attorney for the Commission, and in opposition to the allegations of the complaint by Martha S. Goll, vice president and treasurer of respondent corpora.tion, before Arthur F. 'riwmas, a trial exaininer of the Commission theretofore duly designated by it, and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter, the proceeding regularly came on for final hearing before the Commission upon said. complaint, the answer thereto, testimony and other evi.dence, report of the trial examiner upon· the evidence, briefs in suppm=t of the complaint and in opposition thereto, and oral argument before 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.

172 FEDE.RAL TRADE COMJ\HSSION DE,CISION'S Findings 35F. T.C.

FINDINGS AS TO THE FACTS r ARAGR,APH 1. Respondent, :Mar-Gol Health Products Corporation, js a corporation organized and existing under the laws of the State of Illinois, with its principal office and place of business located at 203 North Humphrey Avenue in the city of Oak Park, in the State of Illinois. R~spondent is engaged in the manufacture and in the sale and distribution of a fruit-juice product ~lesignated as "Roberta nineberry Juice," in commerce between and among tlle various States of the United States and in the District of Columbia. Respondent's blueberry juice is made from a type of blueberry known as ';Rabbit- Eye llliiebetry," which is grown by the respondent in the State of Florida and processed in the plant of the respondent located. at Crest View, Fla. Respondent causes, and has caused, said product, ,v}len sold, to be transported from its place of business in the State of Illinois or from its processing plant in the State of Florida, to purchaser!:! 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 its said product in commerce among and between the various States of the United States and in the District of Columbia. · PAR. 2. In the course nnd conduct of its business, respondent has disseminated and is now disseminating, and has caused and is now' causing tl(e dissemination of, false advertisements concerning its said product, by United States mails and by various other means in com· merce as "commerce" is defined in the Federal Trade Commission Act; and respondent has also disseminated and is now disseminating, and ~as caused and is now causing the dissemination of, :false advertise· ments concerning its product, by various means :for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of its said product 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 United States mails, by advertisements inserted in newspapers and periodicals, and by circulars, leaflets, pamphlets, and other advertising literature, are the following: Drink Tioberta Dluebcrry Juice as a body builder. Deneflcial for sour stomach, ulcer, con.stlpntion, accumulation of impurities, impaired digestion, intestinal bleeding, acidosis, anemia, arthritis, liver trouble, and menstruation difficulties, as well as a complexion beautifier. Highly rec· ommended for starch restricted diet cases. · Physicians recommend it highly for anemia, arthritis, diabetes, and ulcer. 1\IAR-GOL HEALTH PRODUCTS CORP, 173 167 Findings Roberta Blueberry Juice, a food containing essential organic mineral elements. l<'RUIT IRON, a red blood builder, and cleanser. FRUIT POTASSIUM, a flushing agent, promotes cell and tissue metabolism, has great healing power and builds resistance. . l<'nUIT PIIOSPHOUUS, agent of life and growth. Beneficial for nerve matter, especially upon the heart nerve. FRUIT MAGNESIUM promotes cell building, blood fluidity, makes body fluid Ulkaline, acts on glands. . L'RUIT SODIUM is responsible for the maintenance of mucous aml gland secretions.

l!'UUIT.SILICON enters into sensitive tissues, ligaments, arterial walls. Is a Il<:lwerful antiseptic, increases energy.

SULPHUR stimulates the liver, promotes bile flow, and beautifies the Complexion.

CALCIUM, essential and is responsibl~ for bone and teeth building and tissue repair.

Use as a tonic beautifier, eliminator, alkalizer, builder, regulator, antiset:itic, beautifier. ' 'rhe~e blueberries, luscious and unsurpassed In therapeutic, health-restorative "value, are grown In Florida. · ' I llOllERTA A food containing essential organic 'mineral elements, such as calcium, magnesium, sodium, potassium, phosphorus, chlorine, sulphur, iron, and manganese. . PAR. 3. Through the use of the statements and representations here- Inabove set forth~ and others similar thereto not specifically set ovt ~erein, respondent represents, both directly and by implication, that lts blueberry juice, designated "Roberta Blueberry Juice," has thera- :Peutic value in the treatment of stomach disorders, ulcers, constipation, ttccumulation of impurities, impaired digestion, intestinal bleeding, acidosis, anemia, arthritis, liver trouble, menstruation difficulties, and diabetes.

In certain of its advertising disseminated as hereinabove. set forth, the respondent represents that its product contains essential organic lllineral elements, such as iron, potassium, phosphorus, magnesium, Sodium, silicon, sulphur, and calcittm, and that by reason of tl:le existence of these organic mineral elements, its product has properties of \'value in maintaining the general health of the user of_ said product. !n this connection the respondent represents, both directly and by · 1rnplication, that its product is a builder and cleanser of red blood; that it is a flushing agent which promotes cell and tissue metabolism ' ~nd has great healing power and resistance-building properties; that ~t is beneficial for nerve matter, especially upon the heart nerve; that 1t promotes cell building, blood fluidity, acts on the 'glands, and makes hody flt!id alkaline; that it has properties beneficially affecting maintenance o£ mucous and other gland secretions; that it enters intp -50!l74!Jm-43-vol. 35-14 I·· FEDE.RAL T,UADE COl\11\IISSION DE,CISIONS 174 Findings 35F. T.c:

sensitive tissues, ligaments, and arterial walls and is a powerful anti· septic and will increase energy; that it has properties effective in Eotimulating the liver, promoting bile flow, and beautifying the corn· plexion; and that it has properties effective in bone and teeth building and tissue repair. .

It is further represented by the respondent that the use of this product is effective as a tonic, eliminator, alkalizer, body builder, regulator, and as an antiseptic and beautifier. PAR. 4. The aforesaid representations and claims used 'hnd· dis· !"eminated by the respondent as hereinabove described are grossly exaggerated, misleading, and untrue. Respondent's blueberry juice is a fruit juice composed entirely of juice· squeezed out of the leaves and berries, to .which no sugar or other ingredients have been added. This fruit juice is nothing more than a beverage having a food value limited to thatof the berries from which the juice is' extracted. It ha9 no therapeutic value in the treatment of stomach disorders, ulcers, constipation, accumulation of impurities, impaired digestion, intestinal bleeding, acidosis, anemia, arthritis, liver trouble, or menstruation difliculties.

Respondent's product contains an ingredient known as myrtillin, which is one of the natural dye substances .contained in blueberriet: and also in the leaf of the plant'. A number of years ago this ingredient w"as thought to have some beneficial value in the treatment of diabetes· However, subsequent research has developed that myrtillin htrs uo therapeutic value in the treatment of diabetes and is not recognized as a therapeutic agent at the present time by competent medical authority· There is no known cure for diabetes. The treatment consists of an effort to compensate for the power which the body has lost to regulate the blood sugar l~vel by regulating the diet so that not too big a load is put upon the body at any one time in regard to the handling of Sl:!-gar nnd by giving insulin to increase the body's po'.1'er to handle sugar. There is no active ingredient in ~respondent's blueberry juice which has any therapeutic effect in diabetic cases or which might in any way !iupply or supplant the use of insulin. In fact, a reliance upon re· spondent's blueberry juice as a t~eatment for diabetes might be very dangerous, since reliance upon this product might cause a patient to • refrain from taking proper treatment, particularly the use of insulin. Respondent's product does not contain any organic mineral elements in quantities sufficient to supply any inineral deficiency or to accomplish any of the results claimed for this product by the respondent. It is not a builder and cleanser of .red blood or a flushing agent which promotes cell and tissue metabolism and does not have great healing power or. resistance-building properties. The use of this product is. not bene· MAR-GOL HEALTH PRODUCTS CORP. 175 167 Order ficial for nerve matter or the heart nerve, and it will not promote cell building, blood fluidity, or make the body fluid alkaline. It does not. have any beneficial action on the glands and has no properties which beneficially affect maintenance of mucous and other gland sec~etions. 'I'his product is not a powerful antiseptic, will not increase energy, or enter into sensitive tissues, ligaments, and arterial_ walls. This product has no properties effective in stimulating the liver, promoting bile fiow, or beautifying the complexion and is of no value in bon~ and teeth building or tissue repair.

Respondent's product is not effective as 'a tonic, eliminator, alkalizer, body builder, or regulator and has no value as an antiseptic or beautifier.

PAn. 5. The use by the respomlent of the foregoing false, deceptive, and misleading sta~ements and advertisements with respect to its said l)todnct, 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 htatements, representations, and advertisements are true, and induces a iubstantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent's product. CONCLUSION The acts and practices of the 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 Trade Commission Act.

. ORDER TO CEASE AND DESIST . This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, answer of the respondent, testimony and other evidence taken before Arthur F. Thomas, a trial examiner of the Commission theretofore duly designated by it, ip. support of the allegations of said complaint and in opposition thereto, report of the trial examiner upon- the evidence, briefs filed in support of the complaint and in opposition thereto, and oral argument before the Commission; 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 ·;JJ ordered, ·That th.e respondent; Mar-Gol Health Products Corp., a corporation, its· officers, representatives, agents, and employees, directly or through any corporate or other device in connec- 176 FEDERAl TRADE COMMISSIO::-l" ,DE.CISim.;ng Order . 3&F.T.C· tion with the offering for sale, sale, or distribution of its fruit juice product known as "Roberta Blueberry Juice," or any other product of substantially similar composition or possessing substantially sirn· ilar propertie~, 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 by means of the United States mails or by any means in commerce ns "commtJrce" is defined in the Federal Trade Commission Act, which advertisement represents, directly or through inference: (a) That respondent's product has any properties or value other than that o;f a beverage having a food value limited to that of the · blueberries from which the juice is .extracted, (b) That respondent's product has any therapeutic value in the treatment of stomach disorders, ulcers, constipn.tion, accumulation of impurities, impaired digestion, intestinal bleeding, acidosis, ariemia, arthritis, liver trouble, or menstrual disorders, • · (c) That respondent's product has any therapeutic value in the treatment of diabetes, (d) That respondent's product contains any organic mineral ele· ments in quantities sufficient to supply any mineral deficiency, (e), That respondent's product is a builder and cleanser of red blood, or that it is a. flushing agent which promotes cell and tissue metabolism, or that it has great healing power or resistance-building properties, (f) That respondent's product is beneficial for nerve matter, especially upon heart nerves, or that it promotes cell building, blood fluidity, or makes body fluid alkaline, (g) That. respondent's product acts on the glands or that it has properties beneficially affecting maintenance of mucous and other gland secretions, · . (h) That respondent's product enters into sensitive tissues, ligaments, and arterial walls, or is a powerful antiseptic, or that it will increase energy, (i) That respondent's product has properties effecti-ye in stimulating the liver, promoting bile flow, beautifying the complexion, building bone and teeth, or in repairing tissue, (j) That the use of respondent's product is effective as a tonic, eliminator, alkalizer, body builder, regulator, or as an antiseptic or beautifier; · 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 respond~ MAR-GOL HEAI~TH PRODUCTS CORP. 177 167 Order <!~t's product, which advertisement contains any of the representat~ons prohibited in paragraph 1 hereof and the respective subdivi- IHons thereof.

It is furtlwr ordered, That the respondent shall, within 60 days ~after service upon it of this order, file with the Commission a report ~n writing, setting forth in detail the manner and form in which · lt has complied with this order.

FEDERA.L TRADE COMl\ITSSIO~ DECISIO~"'S178 Syllabus 33F. T.C.