Lanolin Plus, Inc.

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

IN THE !1A TTER OF LANOLIN PLUS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TI-IE FEDERAL TR~ille CO::\DIISSION ACT Docket 682i. Complaint, J'l/ly 1957-Deci,s-i.on, Oct. 15, 1957 Consent order requiring a 8e1Jer in Chicago of "Lanolin Plus Shampoo" to cease representing falsely in advertisements in ne,vspapers, by television, etc., that detergent shampoos burn the hair.

1111'. Daniel J. Murphy and 1111'. Thorn.a.s Stern€r for the Commission.

Frank E. and A1'thur Gettknwn of Chicago, Ill., for respondent. INITIAL DECISION BY LOREN H. LAUGHLIN , l-IEARING EXA1.IINER The Federal Trade Commission (sometime.s hereinafter referred to as the Commission), on July 8, 1957, issued its complaint herein under the Federal Trade Comlnission Act against the above-named respondent, Lanolin Plus, Inc., a corporation, charging said respondent with having violated the provisions of the Federal Trade Commission Act in certain particulars. The respondent was duly served' with process.

On August 23, 1957, there was submitted to the undersigned hearing examiner of the Commission for his consideration and approval an "Agreement Containing Consent Order To Cease And Desist which had been entered into by and between said respondent and by counselits attorneys and Daniel J. ~furphy and Thomas Sterner, supporting the complaint, under date of August 1, 1957, and subject to the approval of the Bureau of Litigation of the Commission. Such agreement had been thereafter duly approved by the Director of the Commission s Bureau of Litigation.

On due consideration of the said "Agreement Containing Consent finds that said Order To Cease and Desist " the hearing examiner agreement, both in form and in content, is in accord with Section 25 of the CO1mnission s Hules of Practice for Adjudicati,'e Proceedings and that by said agreement the parties have specifically' agreed that:

1. Respondent Lanolin Plus, Inc., is a corporation organized, existing and doing business under the laws of the State of Delaware with its office and principal place of business located at 30 'Yest lIubbarc1 Street, Chicago 10, Illinois.

2. Pursuant to the provisions of the. Federal Trade Commission Act, the Federal Trnc1e Comm.ission, on July, 1957 , issued ite LANOLIN PLUS, INC. 447 +~6 Order complaint in this proceeding against respondent, and a true copy was thereafter duly served on respondent. 3. R.respondent admits all the jurisdictional facts alleged in the complaint and agrees that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such :allegations.

4. This agreement disposes of a11 of this proceeding as to all parties.

5. R.respondent waives:

(a) . ny further proc.ec1ural steps before the hearing exam mer :and the Commission;

(b) The making of findings of fact or conclusions of law; and (c) All of the rights it may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

6. The record on which the initial decision and the decision of the Comlnission shall be based shah consist solely of the complaint and this agreement.

7. This agreement shall not become a part of the official record 1-mless and llntil it becomes a part of the decision of the Commission. 8. This agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

Upon due consideration of the complaint filed herein, and the said Agreement Containing Consent Order To Cease And Desist " the latter is hereby approved, aceeptec1 and ordered filed, the same not to be.come a part of the record herein, unless and until it becomes part of the decision of the Commission. The hearing examiner finds from t.he complaint and the said "Agreement Containing Consent Order To Cease And Desist " that the Commission has jurisdiction of the subject matter of this proceeding and of the person of the respondent herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act both generally and in each of the particular charges alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agreement is appropriate for the full disposition of a.11 the issues in this proceeding, such order to become final only if and said orderwhen it becomes the order of the Commission; and that therefore, should be, and hereby is, entered as follows: ORDER It i8 o1Ylered That respondent Lanolin Plus, Inc., a corporation its officers, agents, representatives, and employees, directly or through offering forany corporate or other device, in connection with the Decision 54 F. T. C.

sale, sale or distribution of the preparation "Lanolin Plus Shampoo or any preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from directly or indirectly:

1. Disseminating or causing to be disseminated by means of the isUnited States mails or by any means in commerce, as "conllnerce" defined in the Federal Trade Commission Act, any advertisement which represents, directly or by implication, that detergent shampoos will burn hair.

2. Disseminating or causing to be cbsseminated any advertisement. by any means, for the purpose of inducing, directly or indirectly, the purchase in commerce, as "commerce is defined in the Federal Trade Commission Act, of said preparation, which advertisement contains the representation prohibited in Paragraph 1 hereof. Ine. , a It is .f1.l?'ther ordered That the respondent Lanolin Plus, and employees, cli-corporation, its officers, agents, representatives, rectly or through any corporate or other device, in connection with the offering for sale, sale or distribution of Lanolin Plus Shampoo is defil1edor any other related product, in commerce, as "commerce" in the Federal Trade Commission Act, do forthwith cease and desist audio-visual rep-from representing, directly or by implication, in resentation in television or otherwise, that detergent shampoos will tactics to induce theburn hair, or othenyise utilizing such scare purchase of respondents preparation.

DECISION OF TI-IE COMMISSION .AND ORDER TO FILE REPORT OF OO:\IPLL\NCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did on the 15th day of October, 1957, become the decision of the Commission; and, accordin"l,,:~ o I t is ()1'(lei' That. respondent Lanolin Plus, Inc. , a corporation shall within sixty (GO) days after service upon it of this order, file detail thewit h the Commission a report in writing, setting forth in manner and form in "hieh they have complied with the order to cease and desist.

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GARY PHARMACAL CO. ET AL. 449 Decision