Millard, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE MATTER ' MILLARD, INC., ET AL.

ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6427. Complaint, Oct. 1955-Decision, Mar. 30 1956 Order vacating and setting aside-for the reason that respondents were out of business and had no intention of resuming-initial decision prohibiting false advertising in connection with the sale of hair and scalp preparations and a "new" method of treatment for baldness or thinning hair for use by persons in their homes.

M'l'. Morton Nesmith for the Commission. INITIAL DECISION BY J. EARL Cox, HEARING EXAMINER , The respondents in this proceeding are charged with violating- the Federal Trade Commission Act by the dissemination of false and deceptive advertising pertaining to a suggested course of treatment and the use of certain medical and cosmetic preparations sold by them to induce hair growth and prevent baldness. The complaint was issued October 17, 1955, mailed October 20, 1955, and served on respondents October 24, 1955. No answer was filed by respondents and no appearance was made by any of them at the initial hearing held January 10, 1956. They are, therefore, in default. Under the rules of the Commission and in accordance with the Notice, which is attached to and part of the complaint duly served upon respondents, the hearing examiner is authorized to and does find the facts to be as alleged in the complaint. All the transactions at the hearing, including the submission by counsel supporting the complaint of a proposed cease and desist order, were duly recorded and the transcript thereof filed in the office of the Commission. No request for the submission of proposed findings and conclusions has been received, and the proceeding before the hearing examiner has been closed.

Upon this record, the following findings of fact are made: 1. Respondent Millard, Inc., is a corporation organized. existing and doing business under and by virtue of the laws of the State of Illinois, having its office and principal place of business located at 2511 East 75th Street, Chicago, Illinois. Individual respondents, E. V. Safran ski and Eugene .J. Dooley. are president and secretary-treasurer, respectively, of the corporate respondent, :Millard, Inc. These .individual respondents formulate.. MILLARD , INC., ET AL; 1041 1040 Decision direct and control the advertising and sales activities and policies of said corporate respondent.

3. Respondents are now and for the past year have been engaged in the business of selling and distributing various cosmetic and medicinal preparations for external use in the treatment of conditions of the hair and scalp by self-application in the home. Respondents have their said preparations compounded for them by others in Chicago, Illinois, and cause saiel preparations to be transported from the place of their manufacture to the respondents office and to individual purchasers located in various States of the United States. R,respondents maintain and at all times mentioned herein have maintained a substantial course of trade in said cosmetic and medicinal preparations in commerce among and between various States of the United States.

3. In the course and conduct of their business the respondents by means of newspaper advertisements and otherwise, solicit members of the general public to submit to a free hair and scalp examination by a J\1:illard specialist, designated as a "trichologist." The diagnosis is followed by a suggested course of treatment which employs the use of medicinal and cosmetic preparations sold by the respondents. The contents of home treatment kits are determined by the "trichologist" making the examination and consist of the following ingredients which are included in various rations and combinations in.. respondents' products:

Duponol WAT Lanolized soap with Hexachlorophene Hyamine Merca pto- benzo- thiazole Oxyquinoline sulphate G.,-1441 Atlas water-soluble lanolin (Derivative), Boric Acid Propy lene glycol Isopropyl alcohol Oil Bay Terpeneless Mineral oil.

4. In the course and conduct of their business, respondents have disseminated, and caused the dissemination of, advertisements concerning their said preparations by the United States mails and by various means in commerce, as "commerce" is defined in the Federal Trade Commission Act, including but not limited to advertisements inserted in newspapers, Tor the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of said preparations; and respondents have disseminated, and caused' the , Decision 52 F. T. C.

dissemination of, advertisements concerning their said preparations by various means, including but not limited to advertisements inserted in newspapers, for the purpose or inducing and which were likely to induce, directly or indirectly, the purchase of their said preparation in commerce, as "commerce" is defined in the Federal Trade Commission Act.

Among and typical or the statements contained in said advertisements are the rollowing:

This new method of home treatment for saving and growing thicker hair will be demonstrated in Ft. Wayne, Wednesday, Feb. 3 only. First the Millard specialists are quick to tell hopeless cases that they cannot be helped. But the "hopeless" cases are few. Only if a man is completely,shiny bald is he in this last category. If there is fuzz, no matter how light, thin, or colorless, the Millard people can perform wonders. We have no cure-all for slick, shiny baldness Safranski emphasis." If there is fuzz, the root is still capable of creating hair and we can perform what seems to be a miracle.

There is one thing Safranski wants to be certain every man and woman knows. If a recession appears at the temples or a s:pot begins to show up on the crown of the head, there is something wrong and it should be given immediate attention.

If clients follow our directions during treatment, and after they finish the course, there is no reason why they will not have hair all the rest Of their lives, "Safranski said.

Famous trichologist tells truth about saving and improving hair. How s your hair-If it worries you call Trichologist E. J. Dooley at the Hotel Keenan * * * 5. Through the use or the statements in the aroresaid advertisements and others similar thereto, respondents represented, directly and by implication, that their method or treatment or the hair and scalp is a new method; that the use or their preparations in acpersons in their homes cordance with their method or treatment by in cases or thin will prevent baldness and cause a regrowth or hair hair and partial baldness; will cause ruzz on the scalp to develop into a normal head or hair and will assure a normal head or hair during the liretime or the user.

6. The aforesaid advertisements were and are misleading in material respects and constituted and now constitute "false advertisements" as that term is defined in the Federal Trade Commission Act. In truth and in fact, respondents~ method or treatment is type of baldness or partial baldness not new. The most common aging. The use has its origin in heredity, endocrine balance and or respondents' preparations, singly, or in any possible combination prevent baldness of or combinations, and by any method~ will not this type. When so originated, such use will not cause a regrowth MILLARD, INC., ET AL. 1043 104 ') Order of hair in cases of thin hair and partial baldness. Such use will not cause fuzz on the scalp to develop into normal hair or be effective in causing or maintaining a normal head of hair, under any circumstances, for the lifetime, or any other specified period of time, of the users.

7. Respondents by the use of the designation of "Triehologist" in their advertisements thereby represent that they and certain of their employees have had competent training in dermatology and other branches of medicine having to do with the diagnosis and treatment of sealp diseases affeeting the hair. In truth and in fact, neither of the respondents nor any of their employees have had such training.

CON CLUSION S The use by the respondents of the foregoing false, deceptive and misleading statements, disseminated as aforesaid, has had and now has the capacity and tendency to mislead and deceive a substantial portion of the publi-c into the erroneous and mistaken belief that all such statements were and are true, and to induce a substantial portion of the purchasing public to purchase respondents' preparations.

were and are The aforesaid acts and practices of respondents and all to the prejudice and injury of the public and constituted now constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. Therefore Inc. , a corporation It is ordered That the respondent J\-Ellard, :and its officers, and the respondents E. V. Safranski and Eugene J. Dooley, individually and as officers of respondent corporation and respondents' representatives, agents or employees, directly or through any corporate or other device, in connection with the offering for sale and sale of the various cosmetic and medicinal preparations, as set out in the findings herein, for use in the treatment of conditions of the hair and scalp in accordance with any method . or any other preparations of substantially similar composition or possessing substantially similar properties, do forthwith cease and desist from, directly or indirectly:

1. Disseminating or causing to be disseminated any advertisement means in commerce by means of the United States mails, or by any as "commerce is defined in the Federal Trade Commission Act which represents, directly or through inference: (a) That the.ir method of treatment 01 the hair and scalp is a new method;

1044 FEDERAL TRADE COMlVIISSION DECISIONS 52 F. T. Order (b) That the use of their method or treatment: or any other like method of treatment, and their preparatiOlls, singly or in any combination or combinations, will:

(1) Prevent baldness, unless expressly limited to that type or baldness having its origin other than in heredity, endocrine balance and aging;

(2) Cause a regrowth of hair in case.s of thin hair or partial baldness, unless expressly limited as in (1) above; (3) Cause fuzz on the scalp to develop into normal hair; ( 4) Be effective in causing or maintaining a normal head or hall' of users for any specified period of time; 2. Disseminating or causing to be disseminated by any means, any advertisement for the purpose of inducing, 01' which is likely to induce, directly or indirectly, the purchase of said preparations in commerce as "commerce" is defined in the Federal Trade Commission Act, which advertisement represents, directly or by implication that respondents or any or their employees or other.r persons who have not had competent t.~aining in dermatology or other branches of medicine having to do with the diagnosis and treatment or scalp disorders affecting the hair, is a trichologist, or which advertisement contains any or the representations prohibited in Paragraph 1 of this order.

ORDER VACATING INITIAL DECISION AND DISMISSING COMPLAINT WITHOUT PREJUDICE This matter having come before the Commission upon its review or the initial decision of the hearing examiner, filed January 23 1956; and It appearing rrom the record that respondents are out or business and have no intention of resUlning business; and The Commission having duly considered the matter, and being of the opinion that, under these circumstances, the public interest does not require further corrective action at this time: It is ordered That the aroresaid initial decision be, and it hereby , vacated and set aside.

herein be, and it hereby It is further O1Yie1' That the complaint , dismissed, without prejudice, however, to the right of the Comany mission to take such further action against the respondents at time in the future as may be warranted by the then existing circumstances.

OLD EMPIRE INC. ET AL. 1045 Complaint