Gary Pharmacal Company et al.

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

IN THE l\L-\TTER OF GAR.Y PI-IAR,:MACAL COl\IPANY ET AL.

CONSENT onder, ETC., IN :REGARD TO TI-IE ALLEGED VIOLATION OI~ THE FEDERAL TRADE COMMISSION ACT Docket 6650. Complaint, Oct. 19;'j6- Deeision, Oct. , 1957 Consent orclel. requiring a seder in Chicago to cease representing falsely in a(h-ertising that its drug prepnrntion "Dry- nbs" yras a new discovery that wouhl correct the bed-,,-setting llabit in all cases, :md to reveal conspicuously that tlle preparation ,,-as of no .value except in cases of functional bed- setting not inyoJYing organic defects 01' diseases nml should not be used by children under six except on a physicinn s advice. ill-I'. 1TT-illiam A. Smners for the Commission. FTamk E. (6 A TthuT Gettle?nan of Chicago, Ill. , by jJj'r. Franlc E. Gettlema'l1 for respondent Gary Pharmacal Co. INITIAL DECISION BY ,VILLI.-Dl L. PACK, BEAnING EXA:!\IINER The complaint in this matter charges the respondents with the dissemination of false advertisements in connection with a medicinal preparation sold by them, the preparation being for use in the prevention 01' correction of enuresis or bed-wetting. .An agreement has now been entered into by counsel supporting the complaint, and the corporate respondent Gary Pharmacal Company which provides among other things, that said respondent admits alj of the jurisdictional allegations in the. complaint; that the record on which the initial decision and the decision of the Commission shall be based shan consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is 'waived, together "it h any further procedural steps before. the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, said respondent specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by said respondent that it has violated the Jaw ~lS alleged in the complaint.

The proposed order covers all of the issues raised in the complaint except that as to whether respondents advertisements should con- Ii.

Order 54 F. T. C.

tain an affirmative statement to the effect that most cases of bedwetting occur in children under six years of age. Counsel supporting the complaint is of the view that this is a matter of such common knowledge that it is unnecessary that such a statement appear in the advertisements. The hearing examiner concurs in this view. The individual respondent in the proceeding, Saul C. J(orkin, has died since the issuance of the complaint, and the proposed order provides for the dismissal of the complaint as to him. The hearing examiner being of the opinion that the agreement and proposed order provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued: 1. Respondent Gary Pharmacal Company is a corporation existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 7460 Exchange A venue, Chicago, Illinois. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is O?'dered That respondent Gary Pharmacal Company, a corporation, and its officers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of "Dry-Tabs " or any other.r preparation of substantially similar composition or possessing substantially similar properties, do forthwith cease and desist from: 1. Disseminating or causing to be disseminated any advertisement by means of the United States mails or by any means in commerce as "commerce is defined in the Federal Trade Commission Act which advertisement represents, directly or indirectly: (a) That "Dry-Tabs" will be effective in stopping bed-wetting or correcting the bed-wetting habit in all cases. (b) That "Dry-Tabs is a new discovery for treatment of the bed-wetting habit.

2. Disseminating or causing to be disseminated any advertisement by means of the United States mails or by any means in commerce as "commerce is defined in the Federal Trade Commission Act which advertisement fails to clearly and conspicuously reveal that said preparation is of no value in stopping bed-wetting or in correcting the bed-wetting habit, except in cases of functional bedwetting not involving organic defects or diseases; and that the preparation should not be used by children less than six years of age except upon the advice of a physician.

GARY PHARMACAL CO. ET AL. 451 Decision 3. Disseminating or c.ausing to be disseminated any advertisement, by any means ~ for the purpose of inducing or which is likely to induc.e, directly or indirectly~ the purchase of respondent's preparation, or similar products, in commerce, as "commerce" is defined in the Federal Trade Commission Act, which contains any of the representations prohibited in Paragraph 1 of this order, or which . fnils to comply with the affirmative requirements set forth in Paragrnph 2 hereof.

It is further ordered That the complaint be~ and it hereby is dismissed as to respondent Saul C. H::orkin. DECISION OF THE COl\Il\lission AKD ORDER TO FILE REPORT OF GO:MPLU.NCE Pursuant to Section 3. 21 of the Commission s R,ules of Practic.e the initial decision of the hearing examiner did, on the 18th day of October, 1957, become. the decision of the Commission; and, accordingly :

It ? s o?'dered That the respondent Gary Pharmacal Company, a corporation, shall within sixty (60) days after service upon it this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has c.complied with the order to cease and desist..

Decision 54 F.