Hicks Pharmacal Company

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

IN THE MATTER OF HICKS PHARMACAL COMPANY, ET AL.

CQNSE:-T ORDER, ETC., IN REGARD TO THB ALLEGED VIOLATION OF THE FIWERAL TRADE COMMISSION ACT Docket 7347. CO'!iplaint, Jan. 0 1959 Dec-ision Ap?' , 1959 Consent order requiring a distributor in Newark N. , and its advertisingagent, to cease representing' falsely in newspaper, radio, and other advertising" of the drug preparation "Arthrycin" for tl'catmr-;nt of arthritis and rheumatism, that the analgesic effect of the product built up day after day, that it was a special remedy providing greater relief than other analgesics and was the only tested pain-relieving complex on the market, and that the plan of taking it for five days in reduced amounts daily was new and unique, the following of which would pei11anently end the pains of arthritis, rheumatism, and other similar conditions. Mr. Chao'les W. O' Connell for the Commission. N a appearance for respondents.

INITIAL DECISION BY WILLIAM L. PACK , HEARING EXAMINER The complaint in this matter charges the respondents with misrepresenting a medicinal preparation advertised and sold by them, in violation of the Federal Trade Commission Act. An agreement has now been entered into by respondents and counsel supporting the complaint which provides, among other things that respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement; that the inclusion of finding-s of fact and conclusions of law in the decision disposing of this matter is waived, together with 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-, respondents 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 thc complaint may be used in construing the terms of the order; and that the agreement is for settement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

Order 55 F.

The hearing examiner having considered the agreement and proposed order and being of the opinion that they 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 Hicks Pharmacal Company is a corporation organized, existing and doing business under the laws of the State of New .Jersey, with its principal offce and place of business located at l:,G Tichenor Street, Newark, N.J. Respondents Carl H. White, Jr., John Garvey and Henry K Berman are offcers of said corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent, and their address is the same as that of the corporate respondent. Respondent Kenneth Rader Company, Inc. , is a corporation organized, existing and doing business under the laws of the State of New York with its principal offce and place of business located at 18 West 5Gth Street, New York, N. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the pu blic interest.

ORDER It is ordel' That the respondents, Hicks Pharmacal Company, a corporation, and its offcers, and Carl H. White, Jr., John Garvey and Henry K Berman, individually and as offcers of said corporation, and Kenneth Rader Company, Inc. , a corporation and its offcers, and respondents' representatives, agents and em- , in ployees, directly or through any corporate or other device connection with the offering for sale, sale or distribution of the preparation Arthrycin or any other preparation of substantially similar composition or possessing substantially similar properties, whether sold under the same or any other name, do forth- \'with cease and desist from:

1. Disseminating or causing to be disseminated by means of the Unit( States Mails or by any means in commerce, as "comany merce" is defined in the Federal Trade Commission Act, advertisement which represents directly or by implication: (a) That the analgesic effect of Arthrycin builds up day after day.

(b) That said preparation is a special remedy or that it provides a greater degree of relief from pain than is provided by other analgesic preparations.

HICKS PHARMACAL CO., ET AL. 1697 1695 Decision (c) That said preparation is the only tested pain relieving complex on thc market. .

(d) That the plan of administering the preparation, that is by taking- the preparation over a period of five days in reduced amounts, is a new or unique method of administering analgesics. (e) That said preparation, however taken, will relieve the pains of arthritis, rheumatism, sciatica, neuritis or lumbago unless limited to the temporary relief of the minor pains thereof. 2. Disseminating or causing to be disseminated any advertisement by any means for the purpose of inducing or which is Jikely to induce, directly or indirectly, the purchase in commerce. as "commerce" is defined in the Federal Trade Commission Act of said preparation, which advertisement contains any of the representations prohibited in paragraph 1 hereof. DECISION OF THE COMMISSION 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 16th day of April 1959, become the decision of the Commission; and, according-1y:

It is onlered That respondents herein shall, within sixty (60) days after scrvicc 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.

1698 n;DERAl. TRADE COMMISSION DECISIONS Decision 55 F.