Cooga Mooga, Inc

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

IN THE MATTER OF COOGA MOOGA, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF SECTIONS 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-2925. Complaint, Aug. 9, 1978—Decision, Aug. 9, 1978 This consent order, among other things, requires a Los Angeles, Ca. marketer and promoter of Acne-Statin, a product advertised for the treatment of acne, to cease disseminating advertisments which misrepresent, through endorsements or otherwise, the characteristics, performance, efficacy or superiority of its skin products. Additionally, the firm is required to maintain ad substantiation records for a specified period of time; and to pay a pro rata share of any restitution which might be ordered by the Commission or a-court. Appearances For the Commission: Mark A. Heller and Ira R. Nerken. For the respondents: James J. Cook, Los Angeles, California. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Cooga Mooga, Inc. (hereinafter “Cooga Mooga”), a corporation, and Charles E. Boone (hereinafter “Boone”), as an individual and corporate officer, hereinafter, at times referred to as respondents, having violated the provisions of the said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. “Cooga Mooga” is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York with its office and principal place of business located at 9255 Sunset Boulevard, Suite 519, Los Angeles, California. Par. 2. “Boone” is an individual and corporate president of “Cooga Mooga.” He formulates, directs and controls the acts and practices of “Cooga Mooga,” including the acts and practices described herein, and he is the principal beneficiary of the corporation’s business. “Boone’s” business address is 9255 Sunset Boulevard, Suite 519, Los Angeles, California.

Par. 3. Respondent “Cooga Mooga” is a privately held corporation which was organized and is maintained for the purpose of promoting and conducting the business interests of “Boone.” “Cooga Mooga” COOGA MOOGA, INC., ET AL. 311 310 , Complaint and “Boone” in conjunction with Karr Preventative Medical Products, Inc., a California corporation, Dr. Atida H. Karr, The National Media Group, Inc., a Delaware corporation and Robert J. Marsh have been and now are engaged in the business of marketing and advertising health related products, including but not limited to the product Acne-Statin, a product advertised for the treatment of acne. The above-named parties, in connection with the manufacture and marketing of said product, have disseminated, published and distributed, and now disseminate, publish and distribute advertisements and promotional material for the purpose of promoting the sale of Acne-Statin for human use. This product, as advertised, is a “drug” within the meaning of Section 12 of the Federal Trade Commission Act.

Par. 4. “Boone” for his part, aided the promotion of Acne-Statin by providing an endorsement which related directly to the product’s efficacy, the medical evaluation of the product and his family’s satisfaction with the product. This endorsement appeared in virtually every disseminated advertisement for Acne-Statin. In return for his endorsement “Boone” received a share of the product’s sales.

Par. 5. In the course and conduct of their said business, the respondents have disseminated and caused the dissemination of certain advertisements concerning Acne-Statin through the United . States mail and by various means in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, including, but not limited to, the insertion of advertisements in magazines and newspapers with national circulations and the placement of advertisements through television stations with sufficient power to broadcast across statelines and into the District of Columbia and advertisements in the form of a booklet, entitled “Acne: Its Cause and Its Treatment” which was, and is, sent through the United States mail, for the purpose of inducing and which was likely to induce, directly or indirectly, the purchase of the product Acne-Statin; and have disseminated and caused the dissemination of advertisements concerning said products by various means, including but not limited to the aforesaid media, for the purpose of inducing and which are likely to induce, directly or indirectly, the purchase of said products in commerce.

Par. 6. Typical of the statements and representations in said advertisements, disseminated as previously described, but not necessarily inclusive thereof, are the following: “ACNE? Our girls got lasting help with Acne-Statin “With four daughters, we've tried the leading gcne medications at our house, and nothing ever seemed to work untill ly Hills doctor and got some real help through a product she developed called ‘Acne-Statin’.’ ‘3 our girls met a B:

The doctor explained that a bacteria called “C-Acne” located deep in the pores of the skin breaks the oi! in the pores into Fatty Acids. The pores become blocked and irri- ” tated, resulting in blemishes, blackheads, whiteheads and pimples.

WHAT MAKES ACNE-STATIN SO DIFFERENT? The doctor went on to say that many medicatlons only attack acne at the surface level by attempting to dry-up the oll, Usually this is ineffective against Acne, and only irritates, dries and peels the skin, ACHE-STATIN goes tight to the root of the problem. Ii liquifies at body temperature and deposits an antibacterial agent that kills bacteria on contact, and keeps on killing bacteria hours after each washing. The photogranis below Sramatically Complaint has an M.S. in Physiology and a Ph.D. in Cellutar Physiology and Biochemistry. For five years she was involved in cancer research at the University of Pennsylvania under a federal grant.

Equaily impressive were the letters she had teceived from youth and adults alike who had received. significant help with Acne-Statin. HERE ARE EXCERPTS from two of those letters. The first ene is from an editor of ene af the nation's leading fashion magazines.

“Thank you for recommending your fabulous product. | have literally tried everything on the market, plus some of my own home remedies and have spent hundreds,’ in fact probably Pat Boone and his daughter Debbie.

MONEY BACK IF HOT DELIGHTED Vf you are not pleased with the help you et you may return the empty container jor a full refund.

ACHE-STATIN IS NOT AVAILABLE IN STORES But you can order a 30-day four-ounce treatment without a prescription for only $9.50. Order now and you'll receive FREE the booklet entitled “Acne, Hts Cause and Its Treatment” by Atida Karr, M.D.

HERE'S HOW TO ORDER 1. the coupon below. Be sure to thousands of dollars on tr facials and the like and nothing has ever reaily cleared up my skin, much less left it in good tiveness compared to the inelfectiveness ot soap.

WHAT ABOUT SENSITIVE SKIN? Debbie said that even when she feaves it on overnight it-doesn't irritate or dry her skin. Dr. Karr ined that it is hyp and that it contains a moisturizer. So it leaves even sensitive skin moist and soft with NO PEELING. REGARDLESS OF AGE or sex, Acne- Statin helps contro! skin irritations from occasional blemishes to chronic acne, DR. ATIDA KARR’s genuine concern for skin care was as impressive to me as her credentials. In addition to being an M.D, she also |. That's why | can’t believe that such a pleasant lotion-like cleanser and Areatment mark the number ef bottles you wish te order, 2. Make out a check or money order for: the appropriate amount, or use Master Charge ‘icard. Be sure to add 50¢ for like Acne-Statin could work as it did. {t really is fantastic. It's the only thing that has ever worked.”

“Being 25 and having had occasional acne for the past 10 years, | have tried almost every commercial and prescription product, and the results have varied. Since using your Acne- Statin for the first time 1 have a clear complexion, As an actress, it is necessary that | have my skin-clear. My blemishes are completely gone. Not just on the surface, but all traces of infection have disappeared. My skin has reached a balanced condition."

SEE THE DIFFERENCE fn these micros:

copic photographs, each tiny “bubble” is 3 postage for each bottle.

3. Mail the coupon with payment to: ACNE- STATIN; P.O. BOX 100; BEVERLY HILLS, CALIFORNIA 90213.

ORDER NOW AND RECEIVE FREE This booklet, “Acne, Its Cause and Its Treatment” by Atida H.

Karr, M.D.

Se ee oe ee re Os ee te ee ee et ee ow oe ey COLONY of millions of bacteria. Stide A is part of a facial culture taken eight hours after washing with soap. As you can see there are still countless bacterial colonies. Slide B shows a culture of the same facial area a full eight hours after washing with Acne-Statin. Acne-Statin kills bacteria on contact. and keeps on killing bacteria hours after each washing.

After Seap After Acne-Statin a. ey Mail coupon with payment to; wos § ACHE-STATIN, P.O. Boz 100, Beverly Hills, California 30213 § DO Please Rush 30 day 4-02. bottles of Acne-Statin. t Wo.

Enclosed is $10.00 ($9.50 + 50¢ postage & handling for each) H © BankAmericard (© Check or Money Order DD Master Charge j PLEASE PRINT i CREDIT CARD #. EXP. DATE. rj NAME i ADDRESS. APT. WO. i CITY. STATE. ZIP. a SIGNATURE i (IF USSNG CREDIT CARD) { KPMP Products 510 £ Commercial St. Los Angeles, Calif. yg Mademoiselle for May 1977 COOGA MOOGA, INC., ET AL. B13 310 Complaint Radio TV Reports wz sees" meer 2nsp7 120 SEC, Ml East 42nd Street New York: N.Y. 10017 PAGE! WPIX-TV (NEW YORK) 10:19PM (212) 697-5100 1, PAT BOONE: Acne is 2. Acne causes embarassment 3. I'm one of the lucky ones. | 4. but ! do have four daughters painful, both physicatly and and anxiety, never had much of a skin We've tried a lot of skin emotionally, | don’t care problem, claansers and medications if you're a teenager or an sround our house. aduit.

a S. And nothing ever really 6, DEBBIE BOONE: No,not 7, Hills doctor and got tome 8. PAT: Right. The doctor seemed to work, did it, Deb? until) my sisters and | met a real help through a product explained that a bacteria Beverly se developed called Acne called C-Acne tatin, 9. located deep in the pores of 10. The pores become blocked 11. This results in’ blemishes, 12, DEBBIE: Many medicatthe skin, breaks tho oil of the and irritated, whiteheads, blackheads, and ions only attack acne at pores into fatty acids. pimples, the surtace level by trying to draw out the oil.

13. Usually this: doesnt work 14. it only irritates, dries and 15. PAT: Let me snow you 2 16. Here are thousands of against acne, peels the skin photograph. bacteria colonies still teft ‘on facial skin after washing with soap.

277-685 O—79-—21 Complains 92 BTC.

Radio TV Reports PRopucy, Ace SraTiN, 771837 PROGRAu, 2/5/77 120 Sec, ‘SM East 42nd Street New York N.Y. 10017 PAGE 2 WeDry iNEW YORK) lo:t9pK (242) 697-5100 :

1. Now, here are the same 2. See, Acne Statin goes right Pad liquifies st body temperatures, ang thare it deposits areas eight hours ster to the root of the problem, 80 thst it can cantraty despinto on onti-bactarial agent using Acne Statin. . tite pores. that kilts the bactarig Tesponsibie for athe, j 1 HIGABS ie 5. and keeps on kitting the 6. DEBBIE: | like it because it's 7. PAY: Acne Statin is not £. but you can tet bacteria hours atter each loticn-like, not greasy, ang aveilabse in Rtores, 20-day tone ounce net, . application. i goes on Citar, leaving my vompee P . Skin eo aad tone ment without proscription . mee age xis > Ely SS -~ se an Le 9. And it you're not completely 10, Order right away, and you'y 1 fone: Cause Ang 12, ANNER: Cait ton free, Satistied, you just return the 3180 receive a booklet entitlad, Treatment” by Ting Carr, 1-800-224-2200, empty container for z tutt MLD. Here's how tn order. refund.

- When your package olives, 14, That's 1-800-228-2200, Pay just $9.50 pius C.0.5. 1-800-228-2260. This a5 Postage 3 free co.

Our girls got lasting help Acne- Stat UUUT A INDUIUUTA, LINU., Gok Complaint nm”

“With four daughters, we've tried the leading acne modications at our house, and nothing ever seemad fo work gt our girls mat a Beverly Hills doctor and got some real through @ product she developed called ‘Acne-Statin'.” The doctor oxplained that a bacteria catled C-Acne™5 1 10 1 2 3 745 919 56 11 92.826927 located5 1 10 1 2 4 809 918 36 14 88.963432 deop5 1 10 1 2 5 854 920 12 9 96.935684 in5 1 10 1 2 6 875 918 23 11 96.253540 thea 1 10 1 3 0 611 935 287 17 -1 5 1 10 1 3 1 611 941 41 11 88.654015 poras5 1 10 1 3 2 659 938 14 11 97.003532 of5 1 10 1 3 3 680 938 22 11 96.410294 thes 1 10 1 3 4 709 938 29 11 95.699303 skins 1 10 1 3 5 745 936 51 12 95.699303 breaks5 1 10 1 3 6 802 936 23 12 96.412262 thes 1 10 1 3 7 831 936 17 12 65.101120 gil5 1 10 1 3 8 856 938 13 8 92.109291 in5 1 10 1 3 9 875 935 23 12 89.729050 thea 1 10 1 4 0 611 953 287 17 -1 5 1 10 1 4 1 611 959 41 11 94.240616 pores5 1 10 1 4 2 659 956 29 11 93.554756 into5 1 10 1 4 3 695 954 36 15 96.629166 Fatty5 1 10 1 4 4 737 954 42 12 96.480881 Acids.5 1 10 1 4 5 791 953 27 13 96.665657 Thes 1 10 1 4 6 826 956 41 12 92.838890 pores5 1 10 1 4 7 875 954 23 11 91.342354 be-4 1 10 1 5 0 611 971 287 15 -1 5 1 10 1 5 1 611 977 41 9 92.088272 como5 1 10 1 5 2 659 974 60 11 93.071602 blocked5 1 10 1 5 3 727 972 26 13 93.092392 ands 1 10 1 5 4 761 972 63 12 47.538460 srritated,5 1 10 1 5 5 832 971 66 15 54.802612 resulting4 1 10 1 6 0 611 989 287 15 -1 5 1 10 1 6 1 611 995 12 9 82.736855 in5 1 10 1 6 2 630 992 79 12 60.406616 blemishes.5 1 10 1 6 3 716 990 90 13 25.085167 dlackhseds.5 1 10 1 6 4 812 989 86 13 0.000000 whiteheads:4 1 10 1 7 0 610 1010 97 14 -1 5 1 10 1 7 1 610 1010 28 12 80.364342 ands 1 10 1 7 2 646 1010 61 14 59.979019 pimptes.2 1 11 0 0 0 610 1040 288 58 -1 3 1 11 1 0 0 610 1040 288 58 -1 4 1 11 1 1 0 611 1040 256 16 -1 5 1 11 1 1 1 611 1043 51 13 95.912277 WHAT5 1 11 1 1 2 675 1042 62 14 93.168465 MAKES5 1 11 1 1 3 748 1040 119 16 15.820015 ACNE-8STATIN4 1 11 1 2 0 612 1060 145 15 -1 5 1 11 1 2 1 612 1061 25 14 89.002197 805 1 11 1 2 2 648 1060 109 14 95.269859 DIFFERENT?4 1 11 1 3 0 610 1083 288 15 -1 5 1 11 1 3 1 610 1085 28 12 83.246475 Thes 1 11 1 3 2 646 1086 48 11 96.872948 doctors 1 11 1 3 3 701 1085 35 11 92.497543 wants 1 11 1 3 4 744 1086 18 9 96.138557 on5 1 11 1 3 5 770 1085 14 10 92.634491 to5 1 11 1 3 6 791 1086 24 12 92.634491 says 1 11 1 3 7 823 1083 27 12 74.931564 that5 1 11 1 3 8 857 1085 41 12 96.799667 many2 1 12 0 0 0 673 919 17 12 -1 3 1 12 1 0 0 673 919 17 12 -1 4 1 12 1 1 0 673 919 17 12 -1 5 1 12 1 1 1 673 919 17 12 95.000000 2 1 13 0 0 0 647 1102 28 17 -1 3 1 13 1 0 0 647 1102 28 17 -1 4 1 13 1 1 0 647 1102 28 17 -1 5 1 13 1 1 1 647 1102 28 17 95.000000 2 1 14 0 0 0 1226 304 606 557 -1 3 1 14 1 0 0 1226 304 606 557 -1 4 1 14 1 1 0 1226 304 606 557 -1 5 1 14 1 1 1 1226 304 606 557 95.000000 2 1 15 0 0 0 1417 865 103 12 -1 3 1 15 1 0 0 1417 865 103 12 -1 4 1 15 1 1 0 1417 865 103 12 -1 5 1 15 1 1 1 1413 858 28 28 81.569580 Pat5 1 15 1 1 2 1448 858 40 28 78.930191 Benes5 1 15 1 1 3 1494 858 29 28 69.120468 and2 1 16 0 0 0 1321 895 193 14 -1 3 1 16 1 0 0 1321 895 193 14 -1 4 1 16 1 1 0 1321 895 193 14 -1 5 1 16 1 1 1 1321 896 13 13 96.321404 of5 1 16 1 1 2 1344 896 51 12 53.576859 dollars5 1 16 1 1 3 1405 898 18 10 95.021812 on5 1 16 1 1 4 1433 895 81 12 80.088776 treatments,2 1 17 0 0 0 999 900 311 6 -1 3 1 17 1 0 0 999 900 311 6 -1 4 1 17 1 1 0 999 900 311 6 -1 5 1 17 1 1 1 999 900 311 6 95.000000 2 1 18 0 0 0 922 896 288 239 -1 3 1 18 1 0 0 922 896 288 123 -1 4 1 18 1 1 0 922 896 287 17 -1 5 1 18 1 1 1 922 899 28 12 95.209618 that5 1 18 1 1 2 960 899 8 11 93.904724 it5 1 18 1 1 3 978 898 11 12 68.448471 is5 1 18 1 1 4 999 898 26 15 68.448471 hyp5 1 18 1 1 5 1105 897 2 3 85.477936 ic5 1 18 1 1 6 1126 898 27 11 92.671913 ands 1 18 1 1 7 1163 897 28 12 95.696983 that5 1 18 1 1 8 1201 896 8 13 76.721764 It4 1 18 1 2 0 922 915 286 14 -1 5 1 18 1 2 1 922 917 64 12 90.168922 contains5 1 18 1 2 2 996 918 8 10 84.966202 @5 1 18 1 2 3 1015 916 88 12 77.190239 moisturizer.5 1 18 1 2 4 1114 915 19 12 95.074417 So5 1 18 1 2 5 1143 915 9 12 89.254608 it5 1 18 1 2 6 1162 915 46 12 26.992279 ieaveo4 1 18 1 3 0 922 933 287 14 -1 5 1 18 1 3 1 922 937 35 10 79.165199 even5 1 18 1 3 2 963 934 66 13 74.570496 Bonaltiva5 1 18 1 3 3 1034 934 30 12 93.663277 skins 1 18 1 3 4 1069 934 41 12 94.545158 moist5 1 18 1 3 5 1115 933 27 13 94.594467 ands 1 18 1 3 6 1147 933 27 13 94.594467 soft5 1 18 1 3 7 1179 933 30 12 95.132019 with4 1 18 1 4 0 922 950 286 15 -1 5 1 18 1 4 1 922 952 24 13 80.614616 HO5 1 18 1 4 2 952 951 73 13 88.593689 PEELING.5 1 18 1 4 3 1033 951 109 13 82.429771 REGARDLESS5 1 18 1 4 4 1148 951 21 13 96.935501 OF5 1 18 1 4 5 1176 950 32 13 96.461006 AGE4 1 18 1 5 0 922 969 287 15 -1 5 1 18 1 5 1 922 973 16 10 80.277946 or5 1 18 1 5 2 943 973 29 11 93.283714 sex,5 1 18 1 5 3 979 969 88 13 75.094513 Acne-Statin5 1 18 1 5 4 1074 970 40 14 71.452835 helps5 1 18 1 5 5 1120 970 53 11 65.017700 controls 1 18 1 5 6 1180 969 29 12 86.704712 skin4 1 18 1 6 0 923 986 287 15 -1 5 1 18 1 6 1 923 990 71 11 88.314178 irritations5 1 18 1 6 2 1002 988 35 12 86.569382 from5 1 18 1 6 3 1044 987 82 13 84.635857 occesional5 1 18 1 6 4 1133 986 77 13 77.976425 blemishes4 1 18 1 7 0 922 1007 124 12 -1 5 1 18 1 7 1 922 1009 14 10 67.332092 to5 1 18 1 7 2 942 1007 56 11 96.355812 chronic5 1 18 1 7 3 1006 1008 40 10 82.133484 acne.3 1 18 2 0 0 922 1028 288 89 -1 4 1 18 2 1 0 923 1028 287 16 -1 5 1 18 2 1 1 923 1029 26 13 87.433739 BR.5 1 18 2 1 2 958 1028 48 13 92.209068 ATIDA5 1 18 2 1 3 1014 1028 58 13 46.786423 KARR's5 1 18 2 1 4 1080 1031 60 13 0.000000 genuine5 1 18 2 1 5 1148 1031 62 10 75.786301 concern4 1 18 2 2 0 923 1047 287 14 -1 5 1 18 2 2 1 923 1048 20 12 95.204445 for5 1 18 2 2 2 949 1049 30 10 96.371536 skins 1 18 2 2 3 985 1050 33 9 95.557213 cares 1 18 2 2 4 1024 1049 28 10 94.612679 was5 1 18 2 2 5 1059 1049 17 10 75.391525 a85 1 18 2 2 6 1082 1047 81 14 86.840752 imprezsive5 1 18 2 2 7 1168 1047 14 12 94.187416 to5 1 18 2 2 8 1188 1048 22 10 93.670311 me4 1 18 2 3 0 922 1065 288 13 -1 5 1 18 2 3 1 922 1068 16 10 61.795925 as5 1 18 2 3 2 946 1067 24 11 94.676598 hor5 1 18 2 3 3 978 1065 88 12 85.779831 credentials.5 1 18 2 3 4 1075 1065 13 12 94.962265 In5 1 18 2 3 5 1096 1065 61 12 96.462410 additions 1 18 2 3 6 1165 1065 14 12 91.936935 to5 1 18 2 3 7 1186 1065 24 11 83.742218 be-4 1 18 2 4 0 923 1082 287 16 -1 5 1 18 2 4 1 923 1084 21 14 94.450317 ings 1 18 2 4 2 953 1086 18 10 90.678780 an5 1 18 2 4 3 980 1083 33 12 69.544991 ‘A.D.5 1 18 2 4 4 1021 1084 26 11 88.599556 she5 1 18 2 4 5 1056 1083 31 12 65.454987 also5 1 18 2 4 6 1096 1083 25 12 78.757896 hess 1 18 2 4 7 1130 1085 17 10 92.913368 an5 1 18 2 4 8 1156 1082 31 13 80.338394 MS,5 1 18 2 4 9 1198 1082 12 12 59.515877 In.4 1 18 2 5 0 923 1100 287 35 -1 5 1 18 2 5 1 923 1102 81 33 22.075317 Pree5 1 18 2 5 2 1016 1102 27 11 93.482109 ands 1 18 2 5 3 1056 1104 8 9 93.482109 a5 1 18 2 5 4 1076 1100 39 14 60.631336 Pho.5 1 18 2 5 5 1128 1101 12 12 96.045555 in5 1 18 2 5 6 1151 1100 59 31 0.000000 Celiwiat2 1 19 0 0 0 740 1122 407 7 -1 3 1 19 1 0 0 740 1122 407 7 -1 4 1 19 1 1 0 740 1122 407 7 -1 5 1 19 1 1 1 740 1122 407 7 95.000000 2 1 20 0 0 0 610 1101 288 51 -1 3 1 20 1 0 0 610 1101 288 51 -1 4 1 20 1 1 0 610 1101 288 15 -1 5 1 20 1 1 1 610 1104 93 11 76.066986 medications5 1 20 1 1 2 712 1101 30 15 89.759148 only5 1 20 1 1 3 752 1101 46 12 78.433311 attacks 1 20 1 1 4 807 1103 35 10 89.360802 acne5 1 20 1 1 5 852 1101 14 12 95.403831 et5 1 20 1 1 6 874 1101 24 11 89.057877 thea 1 20 1 2 0 610 1119 288 16 -1 5 1 20 1 2 1 610 1121 56 12 81.291451 surtace5 1 20 1 2 2 674 1121 34 11 63.422836 love!5 1 20 1 2 3 716 1121 17 14 95.703766 by5 1 20 1 2 4 828 1119 14 12 92.151329 to5 1 20 1 2 5 849 1119 49 15 79.778679 dry-up4 1 20 1 3 0 610 1137 288 15 -1 5 1 20 1 3 1 610 1140 24 11 96.197281 thes 1 20 1 3 2 667 1148 3 2 79.261292 oil.5 1 20 1 3 3 685 1139 53 13 94.053108 Usually5 1 20 1 3 4 754 1139 26 11 92.847977 this5 1 20 1 3 5 796 1140 10 9 70.685753 1s5 1 20 1 3 6 820 1137 78 12 71.253433 inoffective2 1 21 0 0 0 648 1139 23 12 -1 3 1 21 1 0 0 648 1139 23 12 -1 4 1 21 1 1 0 648 1139 23 12 -1 5 1 21 1 1 1 648 1139 23 12 95.000000 2 1 22 0 0 0 610 1155 289 194 -1 3 1 22 1 0 0 610 1155 289 194 -1 4 1 22 1 1 0 611 1155 287 17 -1 5 1 22 1 1 1 611 1159 54 13 71.729774 against5 1 22 1 1 2 672 1157 42 12 25.406349 Acao,5 1 22 1 1 3 721 1157 28 11 95.065582 ands 1 22 1 1 4 755 1156 31 14 95.065582 only5 1 22 1 1 5 793 1157 61 10 37.509037 irritates.5 1 22 1 1 6 861 1155 37 11 80.270065 dries4 1 22 1 2 0 611 1172 287 17 -1 5 1 22 1 2 1 611 1176 27 11 95.475960 ands 1 22 1 2 2 652 1175 39 14 75.993484 peels5 1 22 1 2 3 704 1175 23 11 95.610367 thes 1 22 1 2 4 740 1174 30 12 88.904961 skin.5 1 22 1 2 5 789 1172 109 13 49.879799 ACNE-STATIN:4 1 22 1 3 0 610 1191 288 16 -1 5 1 22 1 3 1 610 1196 37 11 81.356323 gees5 1 22 1 3 2 653 1193 35 14 84.952408 rights 1 22 1 3 3 695 1193 13 11 96.215500 to5 1 22 1 3 4 715 1192 22 12 72.576797 thes 1 22 1 3 5 745 1193 25 10 90.439423 roots 1 22 1 3 6 782 1191 14 12 96.717484 of5 1 22 1 3 7 802 1191 22 12 95.251488 tha5 1 22 1 3 8 832 1191 66 14 94.433090 problem.4 1 22 1 4 0 613 1208 285 17 -1 5 1 22 1 4 1 613 1212 7 10 32.783020 HW5 1 22 1 4 2 631 1211 58 14 15.600998 bquifies5 1 22 1 4 3 700 1212 13 10 95.554741 at5 1 22 1 4 4 723 1211 36 13 44.407803 body5 1 22 1 4 5 769 1211 91 12 23.085701 temperatures 1 22 1 4 6 871 1208 27 12 70.896957 snd4 1 22 1 5 0 611 1226 287 16 -1 5 1 22 1 5 1 611 1230 64 12 95.638435 deposits5 1 22 1 5 2 685 1231 17 9 90.792221 an5 1 22 1 5 3 711 1228 99 12 38.747513 anti-bactenel5 1 22 1 5 4 820 1229 40 13 93.544548 agents 1 22 1 5 5 871 1226 27 12 88.991684 that4 1 22 1 6 0 612 1245 286 14 -1 5 1 22 1 6 1 612 1248 29 11 67.269142 kals5 1 22 1 6 2 650 1247 62 12 87.506721 bacteria5 1 22 1 6 3 721 1249 17 9 94.413795 on5 1 22 1 6 4 748 1247 60 16 89.199539 contact,5 1 22 1 6 5 818 1246 26 11 96.540726 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Par. 7. Through the use of said advertisements and others referred to in Paragraphs Five and Six, respondents represented, and now represent, directly or by implication that: a. Use of Acne-Statin will cure acne regardless of the severity of the condition.

‘b. Acne-Statin can penetrate the pores of the skin to eliminate the bacteria responsible for pimples, blackheads, whiteheads and other acne blemishes.

c. Acne-Statin can penetrate the pores of the skin to eliminate the fatty acids responsible for pimples, blackheads, whiteheads and other acne blemishes.

d. Acne-Statin is superior to all other acne preparations in the antibacterial treatment of acne.

e. Acne-Statin is superior to soap in the antibacterial treatment of acne.

f. Acne-Statin is a medically and scientifically tested acne treatment.

g. All of “Boone’s” daughters used Acne-Statin for the treatment of acne and experienced favorable results. Pak. 8. In truth and in fact:

a. Use of Acne-Statin will not cure acne. b. Acne-Statin cannot penetrate the pores of the skin to eliminate the bacteria contributively responsible for pimples, blackheads, whiteheads and other acne blemishes. c. Acne-Statin cannot penetrate the pores of the skin to eliminate the fatty acids contributively responsible for pimples, . blackheads, whiteheads and other acne blemishes.

d. Acne-Statin is not superior to prescription and over-thecounter drug preparations which are efficacious in the antibacterial treatment of acne.

e. Neither Acne-Statin nor soap is an effective antibacterial treatment for acne.

f. At the time of the dissemination of the advertisements referred to in Paragraph Five supra, Acne-Statin was neither medically nor scientifically tested as an acne treatment. g. Not all of “Boone’s” daughters used Acne-Statin for the treatment of acne or for any other skin condition. Therefore, the advertisements referred to in Paragraphs Five and Six were and are misleading in material respects and constituted, and now constitute, false advertisements, and the statements and representations set forth in Paragraph Seven were, and are false, misleading or deceptive.

Par. 9. Furthermore, through the use of the advertisements ° COOGA MOOGA, INC., ET AL. 514 31¢ Complaint referred to in Paragraphs Five and Six, respondents represented, and now represent, directly or by implication that: a. Use of Acne-Statin by persons with acne will result in skin free of pimples, blackheads, whiteheads and other acne blemishes. b. Acne-Statin can penetrate the pores of the skin to eliminate the cause of acne.

c. Acne-Statin is superior to all prescription acne preparations for the treatment of acne.

d. Acne-Statin is superior to all other over-the-counter acne preparations for the treatment of acne.

Par. 10. There existed at the time of the first dissemination of the representations contained in Paragraphs Seven a, b, c, and f and Nine no basis for the making of these representations. Therefore, the making and dissemination of said representations as alleged, constituted, and now constitute, unfair or deceptive acts or practices in or affecting commerce.

Par. 11. Through the use of photographs of bacterial colonies, in both the print and television advertisements referred to in Paragraphs Five and Six, respondents represented, and now represent, to consumers that Acne-Statin effectively kills “C-acne,” the bacteria responsible for acne.

Par. 12. In truth and in fact, the slides in the photographs did not contain “C-acne,” correctly C-acnes, now generally referred to as Pacnes. They contained staph and other resident bacteria on the facial surface, an environment in which “C-acne” (P-acnes) does not survive. Furthermore, these surface bacteria are neither involved nor in any manner related to the cause of acne. Therefore, the use of the photographs of bacteria in the advertisements referred to above, constituted, and now constitute, false, misleading or deceptive acts or practices. Par. 13. In the course and conduct of its aforesaid business, and at all times mentioned herein, the respondents have been, and now are, in substantial competition in or affecting commerce with corporations, firms and individuals representing or engaged in the over-thecounter and prescription drug industries. Par. 14. The use by respondents of the aforesaid unfair or deceptive representations and the dissemination of the aforesaid false advertisements has had, and now has, the capacity and tendency to mislead members of the consuming public into the erroneous and mistaken belief that said representations were and are true.

Par. 15. The aforesaid acts and practices of respondents, as herein alleged, including the dissemination of the aforesaid false advertise- Complaint $2 F.T.C.

ments, were and are all to the prejucice and injury of the public and of respondents’ competitors, and constituted, and now constitute, unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, in violation of Sections 5 and 12 of the Federal Trade Commission Act. DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the bureau proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violations of the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of such agreement is for settlement. purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Cooga Mooga, Inc. is a corporation organized, existing, and doing business under and by virtue of the iaws of the State of New York, with its principal office and place of business at 9255 Sunset Boulevard, Suite 519, Los Angeles, California. 2. Respondent Charles E. Boone is an individual and corporate officer of Cooga Mooga, Inc., and maintains an office at 9255 Sunset Boulevard, Suite 519, Los Angeles, California. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

CUUUAR WUE, LING., BE fh. wl 310 Complaint ORDER I Tt is ordered, That respondents Cooga Mooga, Inc., a corporation, and Charles E. Boone, individually and as a corporate officer, their successors and assigns, either jointly or individually, and the corporate respondent’s officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of all products do forthwith cease and desist from: , A. Disseminating or causing the dissemination of any advertisement by means of the United States mail or by any means in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, which directly or indirectly: i. Represents that use of Acne-Statin will cure acne or any skin condition associated with acne.

2. Represents that Acne-Statin will eliminate or reduce the bacteria responsible for pimples, blackheads, whiteheads, other acne blemishes or any skin condition associated with acne. 3. Represents that Acne-Statin will eliminate the fatty acids responsible for pimples, blackheads, whiteheads, other acne biemishes or any skin condition associated with acne. 4, Represents that Acne-Statin is superior to prescription or over-the-counter antibacterial acne preparations in the treatment of acne. .

5. Represents that Acne-Statin is superior to soap in the. antibacterial treatment of acne.

6. Represents that either Charles E. Boone or any member of his family used and/or benefited from a product, unless such representation is true.

7. Misrepresents the extent to which any product has been tested or the results of any such test(s).

8. Misrepresents the efficacy, use or the mode of performance of ny product where the use or misuse of the product may affect the & health or safety of the user.

B. Disseminating or causing the dissemination of any advertisement by means of the United States mail or by any means in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, which directly or indirectly: 1. Represents that use of Acne-Statin or any other acne product by persons with acne will result in skin free of pimples, blackheads, whiteheads or any other blemishes associated with acne; 2. Represents that Acne-Statin or any other acne product can oe Complaint; 92 F.T.C.

eliminate the cause of acne or any skin condition associated with acne;

3. Represents that Acne-Statin or any other acne product is superior to prescription or over-the-counter acne preparations in the treatment of acne or any skin condition associated with acne, unless, at the time of each dissemination of such representation(s) respondents possess and rely upon competent and reliable scientific or medical evidence as a reasonable basis for such representation(s). Competent and reliable scientific or medical evidence shall be defined as evidence in the form of at least two double-blind clinical studies which conform to accepted designs and protocols and are conducted by different persons, independently of each other. Such persons shall be dermatologists who are recognized as specialists in acne and its treatment and who are experienced in conducting such studies. C. Disseminating or causing the dissemination of any advertisement by means of the United States mail or by any means in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, which directly or indirectly makes representations referring or relating to the performance or efficacy of any product or refers or relates to any characteristic, property or result of the use of any product, unless, at the time of each dissemination of such representation(s) respondents possess and rely upon a reasonable basis for such representation(s).

D. Disseminating or causing the dissemination of any advertisement by means of the United States mail or by any means in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, which directly or indirectly: 1. Represents through an endorsement that use of Acne-Statin or any other acne product by persons with acne will result in skin free . of pimples, blackheads, whiteheads or any other blemishes associated with acne;

2. Represents through an endorsement that Acne-Statin or any other acne product can eliminate the cause of acne or any skin condition associated with acne;

3. Represents through an endorsement that Acne-Statin or any other acne product is superior to prescription or over-the-counter acne preparations in the treatment of acne or any skin condition associated with acne;

4. Makes representations through an endorsement, referring or relating to the performance or efficacy of any product or referring or COOGA MOOGA, LNU., ET AL. O41 310 : Complaint relating to any characteristics, property or result of the use of any product, unless, prior to the time of the first dissemination of such representation(s), respondents make a reasonable inquiry into the truthfulness of a proposed endorsement and possess and rely upon information from reliable sources independent of the advertiser or other parties with an interest in the product or service which is the subject of the endorsement. For purposes of this provision “information” may include tests or studies in the possession of the advertiser; however, such information must be independently evaluated by reliable sources in order to provide a basis for an endorsement. For products or services not related to health or safety, respondents may rely on the personal experience of the endorser where the evaluation of such products or services, for purposes of any endorsement, requires no professional expertise and such products or services can be reasonably evaluated through lay use. Additionally, if a material connection exists between the endorser and the advertiser or its advertising agency, such connection must be disclosed in the advertisement(s) which contain the endorsement. A “material connection” shall mean, for purposes of this section, any financial interest in the sale of the product or service which is the subject of the endorsement or any familial connection between the endorser and the advertiser or its advertising agency. II It is further ordered, That if any party involved in the marketing, sale and/or advertising of Acne-Statin is directed, by a final order of the Commission or a final court decree, to make restitution, then respondents Cooga Mooga, Inc. and/or Boone will contribute their pro rata share to such restitution. Such restitution shall not exceed the total amount of monies paid by the Acne-Statin Joint Venture and/or any party to that venture to Cooga Mooga, Inc. and/or Boone. Furthermore, such restitution shall be limited to no more than twenty-five cents (25¢) for each bottle for which a refund is returned. However, if a partial restitution is ordered, respondents’ pro rata share of such restitution shall be the fraction, that is twenty-five cents (25¢) per bottle (the numerator) over the actual sales price of the bottle (the denominator), of the restitution ordered. Respondent’s restitution shall be confined to all purchases made during the advertising campaign which contained “Boone’s” endorsement and all reorders made by persons who first purchased Acne-Statin during such campaign or for a period of two (2) months Complaint 92 E.T.C.

after the last disseminated advertisement bearing “Boone’s” endorsement; provided, however, if a United States District Court, pursuant to Section 19 of the Federal Trade Commission Act, 15 U.S.C. 57b, imposes different restitution obligations on Cooga Mooga, Inc. and/or Boone, such obligations shall supersede this order provision. However, if the District Court does not address the respondents as parties, their obligation for restitution shall be defined by this provision.

Ill It is further ordered, That respondents shall forthwith distribute a copy of this order to each of its operating divisions. It is further ordered, That each respondent notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordered, That each respondent shall, within sixty (60) days after this order becomes final, and annually thereafter for one (1) year, file with the Commission a report, in writing, signed by respondent, setting forth in detail the matter and form of its compliance with this order.

It is further ordered, That each respondent shall maintain files and records of all substantiation related to the requirements of Parts IB, IC and ID of this order for a period of five (5) years after the first dissemination of any advertisement which relates to that portion of the order. Additionally, such materials shall be made available to the Federal Trade Commission or its staff within fifteen (15) days of a demand for such material.

COCA-COLA BOTTLING CO. OF N.Y., LNU. ati 323 ; Interlocutory Order