Syllabus

IN THE MATTER OF

CURRIER'S TABLETS, INC.

COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914

Docket 2095. Complaint, Mar. 14, 1933-Decision, June 26, 1934 Where a corporation engaged in the manufacture of a medicine for ailments and diseases of the stomach and digestive organs, the ingredients in which constituted at one time a popular stock combination with drug houses as a reputed remedy for gastric ulcer or irritation, but was discredited among the medical profession because of its untoward effects, and in the sale of said remedy by and through mail order, selected druggists, who acted as its exclusive agents in their particular localities, and, finally, through such druggists as desired to handle its said product, and sale direct to ultimate consumers who were not able to purchase from a druggist dealer; in describing the same in newspaper and radio advertising, and in bulletins and circulars distributed to druggist dealers

Falsely represented that said tablets never failed to rid sufferers of gas pains, indigestion, ulcers, heartburn, acidosis and constipation, were guaranteed to rid one of stomach troubles and bring instant and positive relief, constituted a "positive remedy" for gastritis, acute indigestion, hyperacidity, stomach ulcers, or any ailments caused by an excessive acid condition, regardless of the patient's condition, contained nothing that could possibly hurt one, a child could take a whole bottle without the slightest ill effects, X-ray pictures proved that they had rid 2,441 sufferers of gas pains and ulcers, and their discovery had startled the civilized world;

The facts being that the combination concerned merely provided temporary relief, might actually aggravate conditions and do more harm than good, involved actual danger to the user through presence of certain ingredients, and, for self-medication, constituted a dangerous combination in that it might actually harm one taking it without expert medical advice, and in that any possible temporary relief might give a false hope to a person with some serious disease needing immediate medical attention, and preparation did not possess such therapeutic value so that it could truthfully be designated or referred to as a cure or safe remedy for sufferers from stomach troubles, ulcers, acidosis, indigestion, nausea, or similar diseases, on fifteen days' trial or otherwise, nor give lasting relief;

With effect of inducing the consuming public to purchase said product in the erroneous belief that it was a remedy or cure for aforesaid various ailments and other diseases of the stomach, and use thereof would relieve or completely restore health to the persons suffering therefrom, and of diverting trade from and otherwise injuring competitors, and with tendency so to divert:

Held, That such practices, under the circumstances set forth, were to the prejudice of the public and competitors, and constituted unfair methods of competition.

Mr. Everett F. Haycraft and Mr. Marshall Morgan for the Commission.

Kelby & Lawson and Davis & Thorne, of Los Angeles, Calif., for respondent.

SYNOPSIS OF COMPLAINT

Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent, a Delaware corporation engaged in the sale and distribution in the various States of products described as remedies for stomach troubles, ulcers, acidosis, indigestion, nausea and other ailments or diseases, and with principal office and place of business in Los Angeles, with advertising falsely or misleadingly as to qualities or properties of product, and using endorsements or testimonials falsely or misleadingly, in that respondent (1) falsely represents through pamphlets, catalogs, leaflets, letters, circulars, radio broadcasts and otherwise that his said products or tablets constitute a cure or safe remedy for sufferers from stomach troubles, ulcers, acidosis, indigestion, nausea and other similar ailments or diseases, the facts

1 As alleged in the complaint, such false and misleading statements and representations included the following:

"I Guarantee to rid you of stomach troubles, gas pains 15-day trial or no pay Currier's Famous Stomach Tablets never fail to rid sufferers of gas pains, indigestion, ulcers, nausea, heartburn, acidosis, constipation. Agnes Riley of Monrovia, Calif., writes: My husband in bed with terrible gas pains and ulcers was given up. After taking 3 Currier's Tablets he began to improve. Now he is well and at work.' I don't care how old and severe your stomach trouble, I guarantee Currier's Tablets to bring you instant and positive relief or they are free to you. Write now for my free book, Facts How Currier's Tablets Quickly Rid Thousands of Sufferers From Stomach Trouble,' and my special 15-day trial or no pay. Currier's Tablets, Inc., Dept. 800, 1460 Vine St., Los Angeles!" X-ray pictures prove rids 2,441 sufferers of gas pains, 15-day trial offer."

"Stomach troubles healed! ulcers, indigestion; accept full "Friends, almost in every case, gastritis, acute indigestion, hyperacidity, stomach ulcers are caused by an excess acid condition of the stomach. If you have been suffering from stomach trouble for any length of time, caused by this condition, I want to say to you that I am bringing to you a message which is of vital importance to you. This message concerns the famous Currier's Stomach Tablets which are a positive relief remedy for these conditions. In fact, Currier's Tablets, Inc. are so sure that these tablets will relieve you that they absolutely guarantee them to bring you relief, regardless of your present condition, within 15 days, or your money will be refunded to you immediately. Also, please do not confuse Currier's Tablets with the ordinary stomach remedy, or anything that you have ever heard about or tried before. The discovery of the formula for Currier's Stomach Tablets has startled the civilized world, and I say to you that it makes it absolutely unnecessary for anyone to continue to suffer from these conditions. May we say to you also that it is not the object of this radio broadcast to have you send for Currier's Tablets. We are broadcasting this message in the hope that you who are suffering will hear this message and let us know where you are so that we may send to you, by mail, this priceless information concerning Currier's Tablets. Full detailed information will be sent to you without any obligation if you will take the trouble to go to your telephone now and call Hollywood 7934, or if you will write a letter or a postal card to Currier's Messenger, c/o K. N. X., Hollywood, California."

"Currier's Stomach Tablets are absolutely guaranteed to relieve gastritis, acute indigestion, hyperacidity, stomach ulcers, or any of these ailments caused by an excess acid

being they do not possess such therapeutic value or medicinal qualities so they may be truthfully so represented, designated or referred to, and in that respondent (2) distributes circulars, booklets or pamphlets in which various persons give or purport to give testimonials to the effect that they had been suffering from stomach troubles or other various diseases and had been completely cured or restored to health by use of respondent's said tablets, notwithstanding fact that respondent was without knowledge as to the disorder, diseases or ailments from which such persons were actually or had been suffering; with capacity and tendency to mislead and deceive, or with effect of misleading and deceiving the purchasing public into believing that tablets in question constituted remedies or cures for the various ailments and diseases for which represented as above set forth, and that their use would relieve, cure or completely restore to health persons suffering therefrom, and of inducing purchase of its said tablets in reliance upon such erroneous belief, and of diverting trade from and otherwise injuring competitors of respondent, and with tendency so to induce and divert; all to the prejudice of the public and competitors.

Upon the foregoing complaint, the Commission made the following

REPORT, FINDINGS AS TO THE FACTS, AND ORDER

Pursuant to the provisions of an Act of Congress approved September 26, 1914 (38 Stat. 717), the Federal Trade Commission issued and served a complaint upon the respondent, Currier's Tablets, Inc., charging it with the use of unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act.

Respondent thereupon entered its appearance by counsel and on April 20, 1933, filed its answer to said complaint. By such answer respondent generally and specifically denied the various allegations in said complaint. Thereafter hearings with respect to the charges in the complaint were held before an examiner of the Commission thereunto duly appointed, at which evidence was offered in support of and in opposition to the complaint.

Thereupon the taking of testimony was closed, briefs were filed on behalf of the Commission and the respondent, respectively, and

condition, within 15 days, regardless of your present condition, or your money will be refunded to you immediately. Friends, this is an absolute guarantee.

"Currier's Tablets are harmless. There is not one thing in Currier's Tablets that can possibly hurt you. A child could take the whole bottle without the slightest of ill effects."

"Can stomach ulcers be healed? Most emphatically 'Yes'. Tablets possibly harm me? Emphatically No!"

"Can Currier's

oral argument was waived on behalf of respondent. And the Commission having now duly considered the record, and being fully advised in the premises, makes this its report stating its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS

PARAGRAPH 1. Respondent Currier's Tablets, Inc., is a corporation organized under the laws of the State of Delaware, with its principal place of business in the city of Los Angeles, State of California. Since its organization in 1928, respondent has been engaged in the manufacture and sale of a remedy known as Currier's Tablets designed by respondent for treatment of human beings suffering from various ailments and diseases of the stomach and digestive organs. These tablets have been advertised and sold by respondent as relieving gastritis, acute indigestion, hyperacidity, stomach ulcers or any ailments due to excess acid condition, and as healing those suffering from gas pains, ulcers and indigestion. Respondent has been selling its said product to drug stores and to the consuming public located in the various States of the United States. The drug stores selected to handle respondent's product were furnished with booklets and circulars describing it. Ultimate consumers were reached by mail and through the medium of radio, magazine and newspaper advertising. Respondent causes its said product, Currier's Tablets, when sold to be transported in interstate commerce by mail and by other means of transportation from its place of business at Los Angeles, Calif., into and through States of the United States other than the State of California to the vendees at their respective points of location.

Respondent has been and is now in active competition with various persons, partnerships and other corporations, also engaged in the sale in commerce among the several States, of similar preparations designed for the treatment of persons suffering from like diseases and ailments.

PAR. 2. Respondent's methods of sale have included the following, among others:

For three and one-half years prior to August 1932, respondent conducted a mail order business in connection with the sale and distribution of its products. Mail order business was obtained largely through the medium of radio advertising. Newspaper advertising in papers of general circulation throughout the country was also resorted to with a view to obtaining mail order business. Copy was continued in papers so long as it was found to pay. Respondent

spent $1,200 a month for newspaper and magazine advertising throughout the United States. The last advertising of this character was carried in the "Pathfinder" magazine in February 1932. The last radio advertising, consisting of a dealer program, occurred in February 1933.

In August 1932 respondent adopted the plan of selecting drug stores in various cities and towns of the United States to act as its selling agents, constituting some one druggist in a city or town as its exclusive agent. Eight or nine hundred drug stores in this way acted as exclusive agents for respondent. These drug store agencies were, in turn, replaced by a plan whereby any drug store that wanted to sell the tablets could buy them. Bulletins and circulars describing respondent's product were distributed to the drug stores handling it, three booklets being sent with each bottle. This practice was followed for some months and then changed to that of sending booklets upon request. Respondent's last announced policy was that of distributing entirely through drug stores, mail order business being continued only in the case of customers unable to buy through a store. PAR. 3. In offering for sale and selling in interstate commerce its product called Currier's Tablets, respondent, among others, has made the following statements and representations: That Currier's Famous Stomach Tablets never fail to rid sufferers of gas pains, indigestion, ulcers, heartburn, acidosis and constipation; that Currier's Tablets are guaranteed to rid one of stomach troubles; are guaranteed to bring instant and positive relief; that X-ray pictures prove Currier's Tablets rid 2,441 sufferers of gas pains and ulcers; that the discovery of the formula for Currier's stomach tablets has startled the civilized world; that Currier's Tablets are absolutely guaranteed to relieve gastritis, acute indigestion, hyperacidity, stomach ulcers; or any ailments caused by an excess acid condition regardless of the patient's condition; that Currier's Tablets are harmless; that there is not one thing in them that could possibly hurt one, and a child. could take a whole bottle without the slightest ill effects; that stomach ulcers can most emphatically be healed and that Currier's Tablets cannot possibly harm one.

PAR. 4. The tablets manufactured and sold by respondent are composed of the following ingredients in the proportions indicated:

Bismuth subnitrate is an insoluble material which will coat over the mucous membrane of the stomach and intestines, reduce the nor