Walsh Laboratories, Inc.

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IN THE ~L\'ITER OF WALSH LABORATORIES, INC.1 ET AL.

COMPL.\INT, FINDJNOS, AND OllDER IN REGARD 'fO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEP'f. 26, 1914 Docket 5665. Complaint, Jnne 17, 1949-Decision, Sept. 21, 1950 Where a corporation and the two officers who controlled it, engaged in the interstate sale and distribution of a product which they designated as "Hodan"- (a} Hepresented in advertisements thereof in uewspapers and circulars, ou lPtlerhends and other advertising material, that sai<l preparation was au effective l(illing agent for mice and all vat·ieUes of rats, and would destroy the ruts on infested premises; the facts being that it was not such an agent ex('ept for brown rnts, and could not be depended upon to destroy all tlle 1·ats, or even all brown rats, on infested premises; (b) Heprcseuted falsely, as aforesaid, that the use of the product was com- J1IC'tely safe ancl would not h:nm domestic- animals or )JOn! try; (o} H'nlf:ely J'PPI'escntf'd through the use of the words "manufacturing chemists" in connect ion with fbC'ir rorporale name, that they manufactured or compounded chemicals and C'mploycd chemists in connection with their business; "With tendency and capacity to mislead nnd deceive a substantial portion of the pm·chasing;!; puhllc \\'itb respect to their saiu product and their business ;;talus, and thereby lndnce file purchase by it of substantial quantities of said p1·oducl:

H clrt, '!'hal sn<'l1 nets nncl pmcliccs, nmlct· the circumstances set forth, were all tu the prejutlicr ancl injury of the pulJiit antl constituted unfair nnd decetitive acts and practic-E's in commerce.

Before Jllr. William L. Pack, trial examiner. llh·. B. G. Wilson fot"the Commission.

Compl.\IN'l' Pursuant to the provisions of the Federal Trade Commission Act and by virt-ue of Lhc authority vesled in it by said act, the Federal Trnclc Commission h~tving reason to believe That Walsh Laboratodcs, Inc., a corporation, John J . \Valsh and Henry E . Stidfel, individual ly and as office1·s of \Valsh Laboratories, Inc., ·a corporation, 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. Respondent Walsh Laboratories, Inc., is a corporation organized and existing unclet· and by virtue of the laws of the State o£ I llinois. John J. \Valsh is president and treasurer and Henry E. Complaint 47 F.T. C.

Staffel is vice president and secretary of said Walsh Laboratories, Inc. The corporate respondent and individual officers have their office and principal place of business located at 525 West Seventy-sixth Street, Chicago 20, Ill. :I'he individual officers control the policies and practices of said corporate respondent.

PAR. 2. Respondents are now, and for more than 1 year last past, have been engaged in the sale and distribution of a product designated by them as "Rodan."

The respondents cause theit· said product when sold to be transported from their place of business in the State of Illinois to the purchasers thereof located in various States of the United States and in the District of Columbia. Respondents maintain, and at all times mentioned herein have maintained, a course o£ trade in said product between and among the various States of the United Sta.tes and in the District of Columbia.

PAR. 3. In the course and conduct of their business and for the purpose of inducing the purchase of their said product respondents have made and now make certain statements and representations with respect to said product by means of advertisements inserted in newspapers, circulars, on letterheads and other advertising material. Among and typical of such statements :tnd representations are the following:

GE'l' RID Oli' Rats With Guaranteed RODAN Why let l"ats destroy your" property, spread disease when it is so easy to kill them with RODAN-the only rat killer that contains both Dupont ANTU (the dealiest rat killer available to the public) and the scientiilc Walsh 16 Ingredient Rat Bait! Laboratory tests show UODAN safe around animals and poultry-get a package that contains enough to kill a thousand rats for only $1.00 from your dealer or mail coupon today. KILL Rats AND MICE * • • ltODAN Rat KILler contains ANTU, the most effective killing agent for use against rats and mice available to the public. Walsh Laboratories, Inc. Manufacturing Chemists. PAR. 4. Through the use of the foregoing statements and representations and others of the same import not specifically set out herein, respondents represented that their product "Rodan" is an effective killing agent for mice and all varieties of rats and will destory all rats on infested premises; and that the use of said product is completely safe and will not cause harm to animals or poultry. Further through the use of the words "manufacturing chemists" re- WALSH LABORATORIES, INC., ET AL. 189 187 Findings spondents represent that they manufacture or compound chemicals and·employ chemists in connection with their said business. PAR. 5. The above statements and representations are false, misleading and deceptive. In truth and in fact, respondents' product "Rodan" is not an effective killing agent for mice or for rats, other than brown rats. The use of the product catmot be depended upon to destroy all the rats on infested premises, including brown rats. The product may be harmful to animals and poultry. The respondents do not manufacture or compound chemicals nor do they employ chemists in their business.

PAR. 6. The use by the respondents of the aforesaid false, misleading and deceptive statements and representations has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations are true, and to induco a substantial portion of the purchasing public, because of such en·one- <>US and mistaken beliefs, to purchase said product. PAR. 7. The aforesaid 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 me!tning of the Federal Trade Commission Act. REPORT, FJNDINGS AS 'l'O THE FACTS, AND OuoER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on June 17, 1949, issued and subsequently served its complaint in this proceeding upon the respondents, Walsh Laboratories, Inc., a corporation, and John J. Walsh and Henry E. Sta:ffel, individually and as officers of said 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 thereto, a hearing was convened by a trial examiner of the Commission theretofore duly designated by it for the purpose of receiving testimony and other evidence in support of and in opposition to the allegations of the complaint. At said hearing there was read into the record a stipulation as to the facts between counsel in support of the complaint and respondents in which it was agreed, among other things, that the facts set forth therein may be taken as the facts in this proceeding and in lieu of evidence in support of and in opposition to the charges stated in the complaint, and thn.t the Commission may 190 FEDERAL 'trade COMMISSION DECISIONS. Findings 47 F. T. C.

proceed upon said statement of facts to make its report, stating its findings as to the facts and its conclusion based thereon and enter its order disposing of this proceeding without the presentation of argtm1ent or the filing of briefs. Also at the same bearing, certain explanatory testimony and other evidence were introduced. Such testimony and other evidence, including the aforesaid stipulation as to the facts, were duly recorded and fi led in the orrice of the Commission.

Thereafter this proceeding regulltrly came on for final hearing before the Commission upon the complaint, answer thereto, testimony and other evidence, including the stipulation as to the facts and recommended decision of the trial examiner; and the Commission, having duly considered the matter and being now fully ad vised in the premises, finds that this proceeding is in the interest of the public and makes th.is its findings as to the facts and its concl11sion drawn therefrom. l 'INDDWS 1\S TO THE l''.\ C"l'l:i PARAORAru 1. Respondent Walsh Laboratories, Inc., is a corporation organized and existing under and by virtue of the laws of the State of Illinois. John J. Walsh is president and ireasm·er and Henry ·E. Staffel is vice president and secretary of said Wa Ish Ln bo1·atories, Inc. The corporate respondent and individual oflicers have their office !tnd principal place of business locn.tecl at: 52.5 ·w est Scve11Ly-sixth Street, Chicago 20, Ill. The individual offtcers control the policies and practices of Stticl corporate respondent. Respomlents are now, and for H 15more than 1 year last past, have been engaged in the sale and distribution of a product designated by them as "Roclan.'' l'~ tl PAR. 2. The respondents cause their said product when sold to be hEtransported from their place of business in the State of lllinois to the purchasers thereof located in various States of the United States. 111 thRespondents maintain, and at all times 1nentionetl herein have maintained, a course of t1·a.de in said product between and among the various 111.Sta.tcs of the United Sta.tes.

PAn. 3. In the course and conduct of their business nnd for the Hll sppurpose of inducing the purchase of their said pro!lnct respondents bnhave made certain statements and representations with respect to said pnproduct by means of adver tisements inserted in newspapers, circulars, ofon letterheads and other advertising material. Among and typical of such statements and representrttions are tlw following : ,.

J to WALSH LABORATORIES, INC. E'l1 AL. 191 1 '7 Conclusion GET RID OF RATS With Guaranteed RODAN Why let rats destroy your property, spread disease when it Is so easy to kill them will RODAN-the only mt killer that contains both Dul'ont ANTU (the deadliest rat killer available to the public) and the scientific Walsh lG Ingredient Hat Bnit I Laboratory·y tests show RODAN snfe around auimuls and JJOnltrygct a package that contains enough to kill a thousand rats lor only $1.00 from your dealer or mail coupon today.

KILLS RATS AND MICEJ * • • HOOAN Rat Killer contains ANTU, lhe most effective ldllhrg agent for ut;e against rats :mel mice available to the public. Walsh Labomlories, Inc. Manufacturing Chemists. PAn. 4. Through the use o£ the foregoing slatements and representalions nnd others of the same import, rcsponclonls have represented that their product "Rodan" is an effective killing agent for mice and all varieties of rats and will destroy all the rats on infested premises; and Lhnt the use of said product is completely safe and will not ca11se harm to domestic animals or poultry. Thro11gh the use of the worrls "manufa.clming chemists" in connection with the name o·f the corporation, responllents have also represrnted that they manllfa.cturc or compo11nd chemicals and that they employ chemists in connection with their busiliE>Ss.

P AR. 5. The a have statements nnd ret)l'csen tal ions !LI'C erroneous and misleading. In truth and i11 fact, respondent's p product "Rodan" is not nn effective killing agent for mice or for mt·s, oLhor thn.n brown mts. The use of Lhc prod11ct ca11not be depondell upon to destroy all ! he rnls, even a 11 brown rals, on infested premises. The product may be harmful to llomestic animals aucl po11ltry. The re::;pondents do not ma,n11facture or l·ompouml chemicals nor do tht>y employ chcmist..c; in their business.

PAte 6. The use by the respondents of the aforesaid erroneous and misleading l'Ppn'sentations has the lenclency and capacity to mislead and decei,·e a substantial portion of the purcl1asing public with respecl Lo respondents' said product and with respect to respondents' business sl1\lus, nnll to imlucc a substantial portion of the purchasing public to purchase Sllbstanlinl quantities of said product as a result of the erroneous and mistaken belief so engendered. CONCI .USION Tho <tcts aJH1 pntetices of the respondents as herein found arc a,ll to the prejudice and injury of the public and constitute unfair and !110fii:i- 5:l - 16 Order 47F.T.C.

deceptive acts and practices in commerce within the intent a.nd 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 respondents, testimony and other evidence, including a stipulation as to the facts agreed upon by counsel, introduced before a trittl examiner of ,the Commission theretofore duly designated by it, and the recommended decision of the trial examiner; and the Commission having made its findings as to the facts and its conclusion that respondents have violated the provisions of the Federal Trade Commission Act: I t is ordered That the respondents, Walsh Laboratories, Inc., a corporation, its officers, agents, representatives, and employees, and J ohn J. Walsh and Henry E. Staffel, individually and as officers of 1·respondent corporation, their agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution in commerce, as "commerce" is defined in the F ederal Trade Commission Act, of their product designated "Rodan" or any other product of substantially similar composition or possessing substantially similar properties, whether sold under the same name or any other name, do forthwith cease and desist from:

(1) Representing, directly or by implication, (a) That said product is an effective killing agent :for mice; (b) That said product is an effective killing agent for rats other than brown rats;

(c) That the use of said product will destroy all rats on infested -premises ;

(d) That the use of said product will not cause harm to domestic animals and poultry.

(2) Using the words "manufacturing chemists" in connection with the corporate name of respondent corporation; or otherwise representing, directly or by implication, that respondents manufacture or compound chemicals or that they have chemists in their employ. I t is fwrther ordered, That the respondents shall, within sixty (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.

FREDE'RICK GODFREoY 193 Complaint IN THE :MA'ITER OF FREDERICK GODFREY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEO. 5 OF AN AOT OF CONGRESS APPROVED SEPT. 26, 1 914 Doc1Get 5'102. Oomplaint, Oct. 11, 1949- D ecision, Sept. 22, 1950 Where an individual engaged In the interstate sale and distribution of its drug product "Terits," made, successively, under two different fot·mulae; in advertisements thereof in various newspapers published in larger cities in Indiana, Colorado, and Ohio, among others; directly and by implication- (a) Falsely represented that said product was an adequate, effective, and competent treatment and cure for all kinds of rheumatism, arthritis, and neuritis; would arrest the pt·ogress and correct the underlying causes; and would afford complete and permanent relief from, and cure, the aches and pains thereof; and (ll) Falsely represented that such product was beneficial in the treatment of the aforesaid symptoms beyond furnishing a temporary and partial relief from minor aches and pains and fever associated therewith; and constituted a new mccUcine:

'lhe facts being that the aches and pains incident to the various kinds of such diseases may be of such a nature that they would be in no way alleviated by the usc of said. product, under either formula nnd however tal<en; and In any event relief would be limited to temporary nnalges!c and antipyretic eliect of the salicylate con tent;

With capacity and tendency to mislead and deceive a substantial portion of the pmchasing public with respect to its product, and thereby cause it to purchase substantial quantities thereof:

Hell],, Tliut such acts anu practices, under the circumstances set forth, were all to the prejudice and injury of tlle public, and constituted unfair and deceptive nets and practices in commerce.

Mr. Joseph Oalla·way for the Commission.

CoMPLAIN'r 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 Frederick Godfrey, hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its ·complaint, stating its charges in that respect as follows: Complaint ·H F.T. C_ P ARACRAl'J £ 1. Respondent Frederick Godfrey is un individual trading and doing b11siness under the name "Canam Sales Agency," and having an offite and principal place of business at Rockport, Mass. PAR. 2. Respondent is now, and has been for more than one yeut· lnst past, engaged in the business of selling antl distributing a certain drug product, as "drug" is deli ned in the Fe1lera l Trade Uomutission Act.

The designation used by rcspomlellt1 the forut11la and 1lirections. for use thereof are as follows:

Designation: Terits.

Formula: Each tablet contains 5 grains potassium l>itarbonale and 5 grains sodium salicylate.

Directions: For adults only. Take two tablc>s after each Jueal ,,·ith glass of water. Repeat dosage in 3 or 4 hours if necessat·y. Respondent causes the saill p1·oduct, when sold, to be transported from his pla.ce of business in the State of 1\fassn<"husett s to purchasers thereof located in other States of the United ~tales and in the District of Columbia. Hesponc(]eHt. maintains, and aL all times mentioned heroin has maintained, a course of trade in said product in commet·ce bet\Teen a1Hl among the n trious Stntt•s of the United States and in the District of Columbia. Respondent's Yol11me of business in such commerce is substantia 1.

P An. 3. In the cour~e and condttcl; of l1is business the respondent, su bscqucnt to March 2l, 1038, has clisst>mi nn.tecl and caused the dissemination of certain advertisements concerning Terits by Lhe United States mails and by various means in commerce, as "commerce" is defined in the Federal Trade Commission Act, for the purpose of inducing, and which were likely to induce, directly or indirectly, its purchase.

.Among the said advertisements are those of which copies a.re attached hereto, marked "Exhibits 1 to G," inclusive, and by this reference incorporated herein and made a part he1·eof. The a.dvertiscment exemplified by Exhibit 1 >Yas published in various 11cwspapcrs, including, but not limited to, the following newspapers and issues thereof: Terre Haute (Ind.) Star, issue of ,January 21, 1947; Denvel (Colo.) Post, issue of February 24, 1947; Cincinnati (Ohio) Times-Star, issue of A.april14, 1947. The a.advertisement exemplified by Exhibit 2 was published in various newspapers, including, but. not limited to, the following newspapers nnd issues thereof: Denver (Colo.) P ost, issue of February 28, 1947; Duluth (Minn.) News-Tribune, issue of 1\farch 1, 1947; Dayton (Ohio) Herald, issue of June 13, 1947.

FREDE'RICK OODFRE·Y 195 193 Complaint The advertisPHlent exemplified by Exhibit 3 was published in the following 11newspaper: Cincinnati (Ohio) Post, issue of October 1, 1948.

The advertisement exemplified by Exhibit 4 was p11blished in various newspapers, including, b11t not limited to the following newspapers and issucl:i thereof: Terre H aute (Ind.) Star, issue of February 18, 194'7; Cincinnati (Ohio) Times-Star, issue of October1· 21, 194'7; Inclian}tpolis (Incl.) News, issue of Ocfober 7, 1947. The nclvertisernenL exempliiiccl by Exhibit 5 was published in the following newspaper: Denver (Colo.) Post, issue of March o, 1047. The ndvertisenlPnt exemplified by Exhibit 6 was published in the following newspapers and is..c;ues thereof: Indianapolis (Ind.) News, issue of March 5, 194'7; Peoria (Ill.) .Journal-Transcript, issue of l\farch 5, 1947; Detroit (Mich.) News, issue of February 13, 1948. Respondent has also disseminated and caused the dissemination of the advertise~ucnt s rcfeJTcd lo above for the purpose of inducing, and the said advertiseme11ts were likely to induce, directly or indirectly, the purchase of 'l'<'J'ils in commerce as "commerce" is defined in the Fedel·n 1 Trade Commission Act.

PAR. 4. Through the usc of the snicl advertisements respondent has 111nde, directly nncl by implication, the 1·eprcsenlations shown in the follo"·ing subpftrugraphs identified as (A) to (E) inclusive. The said advertisement s, by reason of the said representations, are misleading in matcriftl 1·espects and constitute ''fftlse advel.tisements" a::; that term is defined in tho F ederal Trade Commission Act, by reason -of the true facls which are set forth in suhpn mgraphs (1) to ( 5) inclusive.

(A) That Tcrit s is 1111 adequate, effective and compete11t treatment for all Jtinds of arthritis, rheumatism, and neuritis. (1) Terits, however taken, is not an adequate, effective OJ' competent tratment for any kind of rheumatism, arthritis, or neuritis. (B) That Terits will arrest the progress of, correct the underlyi11g cau es of, and cur!' all kinds of arthritis, rheumatism, and nemiLis. (2) Terits, however taken, will not arrest the progress of, correct 1he underlying causes of, and will 110L cure any kind of rheumatism, arthritis, or nenri tis.

(C) That Tm·its will a[ord complete and immediate and permanent relief from, and will cure, the aches and pains of all kinds of arthritis, rheumatisn'i, and neuritis.

(3) Terits, however taken, will not correct the underlying causes of the aches and pains incident to the various kinds of arthritis, rheunmtism, and neuritis, and will not c tlle such fl<'hel:i and pains. These Complaint 47 F.T. C.

aches and pains may be of such a nature that they well be in no way alleviated by the use of Terits, however taken, and in other cases the relief afforded will be limited to such degree of temporary and partial analgesic and antipyretic effect as its content of sodium salicylate may afford in the individual case.

(D) That Terits is beneficial in the treatment of arthritis, rheumatism, and neuritis and manifestations and symptoms thereof above and beyond furnishing a temporary and partial relief for minor a:ches and pai11s, and fever, associated therewith. ( 4) The effect of Terits when used in any of the ailments mentioned herein is limited to temporary and partial relief of minoraches and pains, and fever, associated therewith. (E) That Terits is a new medicine.

( 5) The ingredients of Terits are not new, and so far as arthritis, rheumatism, and neuritis are concerned, it is not a new medicine. PAR. 5. The use by respondent of said false advertisements with respect to Terits has had the capacity and tendency to mislead and deceive, and has misled and deceived, a substantial portion of thepurchasing public into the erroneous and mistaken belief that the representations and statements contained therein were true, and into the purchase of substantial quantities of Terits by reason of said erroneous and mistaken belief. · PAR. 6. The aforesaid acts and practices of respondent, !V> her~in' alleged, are all to the prejudice and injury of tho public and constitute unfair and deceptive acts and practices in comnterce within theintent and meaning of the Federal Trade Commission Act. (Exhibit 1) HAD ENOUGH .Arthritis PAIN Now of great interest to many sufferers is in a compound by a Canadian firm, now being distributed here for the agonizing pains of Al·lbritis, Rheumatism, Neuritis. Many can now get fast-acting relief by taking a product called TERITS. It is a small tablet, inexpensive and easy to take. Lick your Arthritis and Rheumatism pains today. Your druggist bas TERITS, or can get them for you. Double your money back If they fail to help you. Get TERITS now. For sale by (name of local store) and druggists everywhere. (Exhibit 2) HAD ENOUGH ARTHlliTIS PAINS? Considerable interest is being shown thru-out Canada in a compound called TERITS now being distributed here, that brings fast-acting relief from the agonizing pains of Arthritis, Rheumatism, Neuritis. TERI'.rS Is a small tablet, FREDERICK GODFRWY 197 193 Complaint inexpensive-easy to take. Your druggist bas TERITS or can get them for you. Double your money back if they fail to help you. Get them today. For sale bY (name of local store) and druggists everywhere. (Exhibit 3) HAD ENOUGH ARTHRITI S PAINS? A noted New Yorl;: physician bas created a new formula that brings fast-acting relief from agonizing pains of Arthritis, Rheumatism, Neuritis. Known as TERl'.rS. It Is a small tablet, inexpensive, easy to talte, and a real blessing to sufferers. Your druggist bas them, or can get them for you. Be sure to ask for the new TERITS. Money back if they fail. Try them today. For sale by (name of local Rtore) and druggists everywhere. (Exhibit 4) CANADIAN I.IOKS Arthritis PAINS Considerable Interest is being shown throughout Canada in a compound now being distributed here wbicb is bringing fast-acting relief f rom the agonizing pains of Arthritis, Rheumatism, Neut·itis, which often cripple so many sufferers. Many can now get fast-acting relief by taking the product called TERITS. It iS a small tablet, inexpensive and easy to take. Lick your Arthritis or Rheumatic pains today. Your druggist has TERITS, or can get them for you. Double your money back if they fail to help you. Get TERITS now. For sale by (name of local store) and druggists everywhere.

(Exhibit 5) FAST RELIEF FOR ARTHRITIS PAINS Considemblc interest is being shown throughout Canada in a compound now being distributed here which is bringing fast-acting relief from the agonizing pains of Arthritis, Rheumatism, Neuritis, which often cripple so many sufferers. Many can now get fast-acting relief by taking the product called TIDRI'fS. It is a small tablet, inexpensive and easy to take. Itelieve your Arthritis and Rheumatic pains today. Your druggist bas Terns or can get them for you. Double your money back If they fail to help you. Get TEJRITS now. For sale by (name of local store) and drngb'ists everywhere. (Exhibit 6) NEWS FOR ARTHRITIS SUFFIDREJRS Now of great interest to many sufferers is in a compound by a Canadian firm, now being distributed here, for the agonizing pains of Arthritis, Rheumatism, Neuritis. Many can now get fast-acting relief by taldng a product called TERITS. It's a small tablet, inex-pensive and easy to take. Your druggist bas Terits or can get them for you. Lick your Arthritis and Rheumatism pains today. Douhle your money bad< if they fail to help you. For sale by (name of local store) nnd druggists everywhere. Get TERITS today. F EDEHAL TRADE COMMISSION DECISIONS198 Findings 47 F. T. C. REPOR'l', FINDINGS AS '1'0 THE FACTS, AND ORDER Pursuant to the provisions of the F ederal Trade Commission Act, the F ederal Trade Commission, on October 11, 1049, issued and subquently served its complaint in this proceeuing upon respondent Frederick God-frey, an indivichml tmuing as Canam Sales Agency, cha.rging said respondent with the use of Hnfair and deceptive acts and practices .in commerce in violation of tho provisions of said act. After the filing of answer to such compla.int, a stipulation as to the facts was entered into between Daniel J. Murphy, Chief of Trial Division, of the Federal Trade Commission, and the respondent, subject to the approval of the Commission, whereby it was stipulated that ihe statement of facts set out in such stipulation might be taken as the facts in this proceeding and in lieu of evidence in support of the charges stated in the complaint or in opposition thereto, and that the ·Commission might proceed upon said statement of facts to make its report stating its .findings as to the facts (including inferences which might be drawn from said stipulated facts) and its conclusion based thereon, and enter its order disposing of This proceeding without other intervening procedure. Thereafter, this proceeding regularly ·came on for final hearing before the Commission upon said complaint, answer thereto, and stipulation, said stipulation having been approved and accepted and filed by 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 Lhe facts and its conclusion drawn therefrom.

FL"'DINGS AS 1.'0 '!"lie F.\ Cls P .ARAGHAPH 1. Respondent Frederick God frey is an individual trading and doing business under the name "Canam Sales Agency," and having an office and principal place of business at Rockport, Mass.

PAR. 2. Respondent is no,v, and has been for more than one year last past, engaged in the business of selling and distributing a certain drug product, as "drug" is defined in the F ederal Trade Commission Act.

Respondent's product is designated as "Terits" and under the formula followed prior to J.uly 1, 1948, each tablet contained 5 grains potassium bicarbonate and 5 grains so<lium salicylate. At such time; the directions for use were as follows :

FREDE'RICK GODFRE'Y 199 li'indings 193 For adults only. Take two tablets after each meal with glass of water. Repent dosage in 3 or 4 houxs if necessary. Since July 1, 1948, the designation has remn in ell tho same. The formula and directions for use have been as follows : Each tablet. contains;) grains salysal, 3 gmins strontium salicylate 11nd 3 grains of aspirin.

Take Lwo or three tablets with a glass of water. 1\lay be repeated in two or three hotn·s.

Respondent causes I he said protluct, when sold, to be transported from his place of business in the State of Massachusetts to purchasers thereof loc·atcd in ot.heL'Slates of the United States and in the District of Columbia. Rrspomlent nuLintains, and at all Times mention11ed herein has maintained, a course of trade in saiu prouuct in commerce between nnd among the various States of the United States ru1cl in the District of Columbia. Respondent's volume of business in such commerce is bUOslantial.

PAn. 3. In the course and conduct of his business the respondent, subsequent to :March 21, 1!)38, has disseminated and caused tho dissemination of certain advertisements concerning 'ferits by the United States mails nnd by various nwttns in commerce. as "commerce" is defined in the Fedenil Trade Commission Act, for the purpose of inducing, nncl which wf.>rc likely to induce, cl ircctly or im1directly, its purchase.

Among tlw said advertisements have been those inserted by respondent during the years 1947 nnd 1!)48 i11 various newspapers published in larger cilies local·eel in the S! ates of lntl ian a, Colorado, and Ohio, among others, wltich advertisements are' as follows : HAD E :>~Oral AH'rllHI'f!f.; PAl ~ 1'\ow of grcnt iutt·rest to mnn.v sntierers is in a compou•ul lJy a Cnnaclian ll1·m, now being distributed here for the al!;onizing pains of Arthritis, Rheumatism, Neuritis. Many can uow :.:et fast-acting relief hy Inking a prolluc>t cnllecl 'l'EftJTS. It ls a small tnblcl. inel:pensil·e nucl Pasy to take. Licl\ ~·onr Arthritis and Rheumntif'm )laius torlny. Your drug:gist hns TELUTS, OJ' eau get them for you. Double your money hn('k lf the~· fail to hel[J ~·on. Get Tl•:IU ~I'S now. For snlc by (name of local stm·e) ancl druggists everywhere. HAD ENOUGll AH'l'HRJTIS PAl:'\S? Co11siclernble interest is !wing shown lhrn-out Cnua!la in n compound cnlled 'l'EltiTS now being distrilJntecl here, that brings fnst-acting relief f rom tbe agonizing pains of Arthritis, Hheumatism, Neuritis. TERITS is a small tablet. iuexpensive~asy to take. Your druggist has TERITS or can get them for you. Double your money back if they fail to help you. Get them today. For sale by (name of local store) and druggists everywhere.

Findings 47 F.T.O.

HAD ENOUGH ARTHRITIS PAINS? A noted New York physician has created a new f01·mula that brings fast-acting relief from agonizing pains of Arthritis, Rheumatism, Neuritis, Known as Terits. It is a small tablet, inexpensive, easy to take, and a real blessing to sufferers. Your druggist has them, or can get them for you. Be sure to ask for the new TERITS. Money back if they fail. Try them today. For sale by (name of local store) and druggists everywhere.

OANA.DIAN LICKS AR'l'URI'l'IS PAINS Oonsidcrnble interest is being shown th roughout Canada in a compound now being distributed here which is bringing fast-acting relief from the agonizing pains of Arthritis, Rheumatism, Neuritis, which often cripple so many sufferers. Many can now get fast-acting relief by taking the product called TERITS. It Is a small tablet, inexpensive and easy to take. Lick your Arthritis or Rheumatic pains today. Your druggist has TERITS, or cnn get them for you. Double your money back if they fail to help you. Get 'l'ERI'l'S now. For sale by (name of local store) and druggists everywhere.

FAST RELIEF FOR ARTHRITI S PAINS Considerable interest is being shown throughout Canada in a compound now being distributed here which is bringing fast-acting relief from the agonizing pains of Arthritis, Rheumatism, Neuritis, which often cripple so many sufferers. Many can now get fast-acting relief by taking the product called TERITS. It is a small tablet, inexpensive and easy to take. Relieve your Arthritis and Rheuwntic pains today. Your druggist has TllllUTS or can get them for you. Double your money back if they fail to help you. Get 'J.'MERITS now. For sale by (name o·f local store) and druggists everywhere.

NEWS FOR ARTHRITIS SUFFERERS Now of great interest to many sufferers is in a compound by a Canadian firm, now being distributed here, for the agonizing pains of Arthritis, Rheumatism, Neuritis. Many can now get fast-acting relief by taking a product called TERITS. It's a small tablet, inexpensive and easy to take. Your druggist has TERITS or can get them for you. Lick your Arthritis and Rheumatism pains today. Double your money back if they fail to help you. For sale by (name of local store) and dt·uggists everywhere. Get TERITS today.

Respondent has also disseminated and caused the dissemination of the advertisements referred to above for the purpose of inducing, and the said advertisements were likely to indue\!, directly or indirectly, the purchase of Terits in commerce as "commerce" is defined in the F ederal Trade Commission Act.

PAR. 4. Through use of the foregoing advertisements, respondent has represented directiy and by implictttion that Terits is an adequate, effective, and competent treatment and cure for all kinds of rheumatism, arthritis, and neuritis, and that it will arrest the progress of FREDERICK GODFRIDY 201 193 Conclusion and correct the underlying causes thereof, that it will be effective in affording complete and permanent relief from and will cure the aches and pains of all kinds of arthritis, rheumatism, and neuritis, that such product is beneficial in the treatment of the aforesaid diseases and the symptoms thereof above and beyond furnishing a temporary and partial relief from minor aches and pains, and fever associated therewith, and that Terits is a new medicine.

PAR. 5. The said advertisements by reason of the foregoing repre- .sentations are misleading in material respects and constitute "false advertisements" as that term is defi.ned in the Feclern1 Trade Commission Act. In truth and in fact, under either formula however taken, Terits is not an adequate, effective or competent treatment or cure for any kind of rheumatism, arthritis, or neuritis. Respondent's said preparation will not arrest the progress of or correct the underlying causes of any kind of rheumatism, arthritis, or neuritis, or correct the underlying causes of such aches and pains as are incident to any kind of rheumatism, arthritis, or neuritis.

Respondent's preparation will not afford complete or permanent relief from nor will it cure the aches and pains incident to the various kinds of rheumatism, arthritis, and neuritis. These aches and pains may be of such a nature that they will be in no way a.lleviated by the use of Terits under either formula however taken, and in other cases the relief afforded will be lin1ited to such degree of temporary and partial analgesic and antipyretic effect as the salicylate content of Terits may afford in individual cases. In any event, the value of Terits under either formula or directions when used for the ailments mentioned herein is limited to temporary and partial relief of minor aches and pains, and fever associated therewith. The ingredients of Terits under either formula are not new and insofar as arthritis, rheumatism, and neuritis are concerned it is not a new medicine. PAR. 6. The use by respondent of said false advertisement..<; has had the capacity and tendency to mislead and deceive a substantial portion of the purchasing public with respect to respondent's product and the tendency and capacity to cause such portion of the public to purchase substantial quantities of Terits as a result of ihe erroneous and mistaken belief so engendered.

CONCLUSION The aforesaid acts and practices of respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. 202 FE'DERAL TRIADE COMMISSION DECISIONS Order 47F.T. C..

ORDER TO CEASJ~ AND DESIST This proceeding came on to be heard by the Federal Trade Commission upon the complaint of the Commission, the answer to the respondent, and a stipulation as to the facts, in which stipulation respondent w~dvecl all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and its conclusion that the said respondent has violated the · provisions of the Fedei·al Trade Commission Act: I t is O?'dered, That the respondent Frerlerick Godfrey, individually and trading under the name of Canam Sales Agency, or any other name, and his agents, representatives, and employees, directly or Through any corporate or other device, in connection with the offering for sale, sale, or distribution of the preparation designated "Terits," or any other preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same name or any other name, do forthwith cease and desist from: (1) Disseminating or causing to be disseminated by means of the United States mails, or by any means in commerce, as "commerce" is defined in the F ederal Tl'Ucle Commission Act, any advertisement which represents directly or by impli<'ation: (a) That said preparation is a competent or effective treatment or cure :for rhcnmfl.tism, arthritis, or neuritis or that it wiil have any therapeutic value in· the treatme11t of rheumatism, arthritis, or neuritis, or in treating or relieving any of the sy1nptoms thereof, in excess of n:[ording temporary and partial relief of minor aches and pains, and. fever associated therewith.

(b) That said preparation is a new medicine. (2) Disseminating or causing to be disseminated by any means for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase of said product in commerce, as "commerce" is defined in the F ederal Trade Cmmnission Act, any advertisement which contains any of the representations prohibited in P aragraph (1) hereof.

I t is furtlte?' ordel·ed, That the respondent, Frederick Godfrey, shall, within sixty ( 60) days after service upon him of this order, fiJe with the Commission a report in writing setting :forth in detail the manner and form in which he has complied wit.h this order. STERLlliG DRUG, INC. 203 Syllab1_1s