The Norito Company

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IN THE MATTER OF THE NORITO COMP ANY ET AL.

ORDER, ETC., IN .REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6494., Complaint, Jan. 1956-Decision, Mar. , 1956 Order requiring dr.ug distributors in Chicago to cease advertising falsely thetherapeutic properties, nature, method of operation, etc. of its "Norito-Plus, Tablets" represented to be a specific treatment for all kinds of arthritis, and rheumatism.

Mr. Morton Nesmith for the Commission. Nash Donnelly, of Chicago, Ill. , for respondents. INITIAL DECISION BY ABNER E. LIPSCOMB, HEARING EXAMINER On January 12, 1956, the Federal Trade Commission issued its. complaint in this proceeding, charging the Respondents with unfair and deceptive acts and practices in commerce by the use of false, misleading and deceptive representations in the sale and distribution in commerce of their drug product, designated " N orito- Plus Tablets, in violation or the Federal Trade Commission Act., for Respondents submitted their On February 6 , 1956 , counsel answer to the complaint herein, admitting all material allegations, of said complaint to be true. Under the provisions or Section 3. (2) or the Commission s Rules or Practice, such an answer constitutes a waiver of hearing as to the facts alleged in the complaint and the Hearing Examiner is directed to issue an initial decision containing appropriate findings and conclusions and an appropriate order. Accordingly, on the basis of the complaint and adas,mission answer, the Hearing Examiner finds the facts to be follows:

1. Respondent, The Norito Company, is an' Illinois corporation having its office and principal place of business located at 225 North Michigan Avenue, Chicago, Illinois. Respondent L R. F. Spiegel is an individual having the same office and principal place of business as the corporate respondent, and serving as president and a director thereof. In such capacity, Respondent Spiegel, during the. controlled thetime mentioned herein, formulated, directed and practices of the corporate respondent, including those here involved.

2. Respondents are now, and have been for more than one year selling and, last past, engaged in the business of offering for sale, THE NORITO CO. ET AL. 1025 1024 Decision distributing in commerce a drug product, as "commerce" and "drug are defined in the Federal Trade Commission Act, designated Norito-Plus Tablets, of which the formula and directions for use are as follows:

Form1J,la 01' Sodium Salicylate 11,4 SaUcy lamide ---- Caffeine Alkaloid Directions for use:

Take 2 tablets followed by full glass of water, every 3 hours 4 times daily, in indicated conditions; in responsive cases when not needed for pain, gradually reduce number of tablets taken. Respondents maintain, and at all times mentioned herein have maintained, a course of trade in said product in commerce between and among the various states of the United States, their volume of business therein being su bstan tial.

3. In the course and conduct of their business, Respondents have disseminated and caused the dissemination of advertisements concerning said product by the United States mails and by various means in commerce, including, but not limited to, advertisements inserted in newspapers and magazines of general circulation and in circulars and leaflets, for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of said product; and also advertisements concerning said product by various means, including but not limited to the means aforesaid, for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of said product in commerce. 4. Through the use of the statements appearing in said advertisements Respondents represented, directly or by implication, that the use of N orito-Plus Tablets, as directed: (1) ' Is an adequate, effective and reliable treatment for all kinds of arthritis and rheumatism;

(2) Will arrest the progress of, correct the underlying causes of and cure all kinds of arthritis and rheumatism; (3) Is an adequate and effective substitute for laboratory-made ACTH and will relieve ACTH deficiency in the body; (4) Will stimulate the pituitary gland in the human body to produce more ACTH and thereby increase the production of cortisone-like substances;

(5) Will erect a "pain-block" in the thalamus to prevent pain impulses from reaching the brain;

(6) ""Viii afford complete and permanent relief of all pain of arthritis and rheumatism, and prevent its recurrence; and Order 52 F. T. C.

(7) Will expel pain-continuing pain-wastes (which Respondents claim gather in affected areas) quicker. 5. In truth and in fact the use of Respondents' product " N orito- Plus Tablets" without regard to the amount taken: (1) Is not an adequate, effective or reliable treatment for any kind of arthritis or rheumatism;

(2) Will not arrest the progress of, correct the underlying causes , or cure any kind of arthritis or rheumatism; (3) Is not an adequate or effective substitute for laboratorymade ACTH and will not relieve ACTH deficiency in the body; (4) Will not stimulate the pituitary gland in the human body to produce more ACTH and will not increase the production of cortisone-like substances in the human body; ( 5 ) Will not erect a "pain-block" in the thalam us or prevent pain impulses from reaching the brain;

(6) Will not afford any relief of the pains of arthritis or rheumatism in excess of temporary relief of the minor pains and will not prevent its recurrence; and (7) Cannot "expel pain-continuing pain-wastes because pain does not cause "pain-wastes.

6. Respondents' use in their advertising of the said false and misleading statements and representations has had and now has the capacity and tendency to mislead and deceive a substalltial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations are true, and, because of such belief, to purchase said product. CONCLUSION Respondents' acts and practices 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. Accordingly, the Federal Trade Commission has jurisdiction over Respondents and over their acts and practices as herein found, and this proceeding is in the public interest. Therefore It is ordered That Respondents The Norito Company, a corporation, and its officers, and I. R. F. Spiegel, individually and as an officer and director of said corporation, and Respondents' agents representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of N orito-Plus Tablets or any other product of substantially the same 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: , THE NORITO CO. ET AL. 1027 1024 Decision 1. Disseminating, or causing to be disseminated, by means of the United States mails, or by any other means in commerce, as "commerce" is defined in the Federal Trade Commission Act, any advertisement which represents, directly or by implication: (a) that N orito- Plus Tablets, in any amount however taken (1)' will constitute an adequate, effective or reliable treatment for any kind of arthritis or rheumatism; (2) will arrest the progress of, correct the underlying causes or cure any kind of arthritis or rheumatism; (3) will constitute an adequate or effective substitute for laboratory-made ACTH and relieve ACTH deficiency in the body; (4) will stimulate the pituitary gland in the human body to produce more ACTH and will increase the production of cortisonelike substances in the human body;

( 5) will erect a "pain-block" in the thalamus or prevent pain impulses from reaching the brain;

(6) will afford any relief of the pains of arthritis or rheumatism in excess of temporary relief of minor pains, or that said preparation will prevent the recurrence of pain; (7) will expel "pain-continuing pain-wastes (b) that pain causes pain-wastes;

2. Disseminating or ,causing to be disseminated any advertisements by any means, for the purpose of inducing, or which are likely to induce, directly or indirectly, the purchase in commerce, as commerce" is defined in the Federal Trade Commission Act, of the drug preparation Norito-Plus Tablets which advertisements contain any of the representations prohibited in Paragraph 1 of this order.

DECISION OF THE COl\Il\HSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 27th day of March, 1956, become the decision of the Commission; and, accordingly :

It is ordered That respondents The Norito Company, a corporation, and I. R. F. Spiegel, individually and as an officer and director of said corporation, 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 the order to cease and desist. 1028 FEDERAL TRADE COMM:ISSION DECISJONS Decision 52 F. T. C.