Belmont Laboratories, Inc. v. Federal Trade Commission

103 F.2d 538, 1939 U.S. App. LEXIS 3609
CourtCourt of Appeals for the Third Circuit
DecidedMarch 29, 1939
Docket6738
StatusPublished
Cited by5 cases

This text of 103 F.2d 538 (Belmont Laboratories, Inc. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belmont Laboratories, Inc. v. Federal Trade Commission, 103 F.2d 538, 1939 U.S. App. LEXIS 3609 (3d Cir. 1939).

Opinion

CLARK, Circuit Judge.

The Federal Trade Commission had before it here a rather mild instance from a black chapter of American business history. The emptor who is greedy (mail fraud) or gluttonous (food) or vain (cosmetics) may be getting more protection that he deserves; so he perchance should be forced to “cavere”. Around the emptor whose sole desire is relief from the ills to which our mortal flesh is heir, the law has thrown too transparent and tardy a cloak. That, at least, is the opinion of those who should know.

A distinguished Senator of the United States: “They are the people, who for the sake of a few dirty dollars, are willing to imperil the comfort, the wealth, and the lives of millions of people who cannot protect themselves.” From a speech by Senator McCumber sponsoring the original Pure *539 Food and Drugs Act (1906), 40 Cong.Rec., Part 3, p. 2653.

A leading medical authority:

“In the field of medicine human credulity learns little from experience. In the purchase of any kind of merchandise, except that sold fot the alleged alleviation or cure of disease, the buyer has a chance of learning eventually whether or not he has been swindled. In the purchase of an automobile, a piano, or a suit of clothes, time will prove whether it was a good or a bad bargain; nature, through its agencies of wear and tear, makes clear whether one has been cheated. But when we go into the market to buy medicament or medical service, we are at sea for here we have nature not as an assistant to aid our judgment but as an opponent to confuse it. In from 80 per cent to 85 per cent of all cases of human ailments, it is probable that the individual will get well whether he does something for his indisposition or does nothing for it. The healing power of nature — vis medicatrix naturae — fortunately for biologic perpetuity, works that way. The seller of medicaments, then, obviously starts with at least an eighty per cent chance in his favor.
“The pills and panaceas of today are colloquially, but incorrectly, called ‘patent medicines’; incorrectly, because among the thousands of remedies offered to the public for the self-treatment of disease there are probably not half a dozen that are really patented. The reasons are not far to seek. The United States Patent Office is not supposed to grant a patent on a product unless it can be shown that the article on which protection is sought is a new and useful invention. This simple requirement is sufficient in itself to prevent practically all so-called ‘patent medicines’ from being patentable.” From the Introduction (p. vii) of Dr. Arthur J. Cramp’s 3rd volume of Nostrums and Quackery and Pseudo-Medicine.

A leading legal scholar: “The seriousness of the problem of false advertising, both sociologically and financially, requires no demonstration. The toll which is assessed upon the consumer runs into the millions; the effects upon the health and well-being of the community are incapable of estimation.” Handler, The Jurisdiction of the Federal Trade Commission Over False Advertising, 31 Columbia Law Review 527, 551.

A leading journalist: “In the patent-medicine business, the essential art was not medicine, nor chemistry. The fundamental genius for it was psychological. It consisted of skill in playing on the credulity of the simple-minded and the trusting. ******

“The palent-rneiiicine manufacturers made an art of describing the symptoms of diseases in such a way as to terrorize the reader of their pamphlets and advertisements into believing he had one or more of the ailments they pretended to cure; and in describing their cure-alls in terms to convey the conviction of hope.” Mark Sullivan, Our Times, Vol. II, America Finding Herself, p. 511.

A distinguished former President and Chief Justice of the United States: “Fraudulent misrepresentations of the curative value of nostrums not only operate to defraud purchasers but are a distinct menace to the public health. There are-none so credulous as sufferers from disease. The need is urgent for legislation which will prevent the raising of false hopes of speedy cures of serious ailments by misstatements of facts as to worthless mixtures on which the sick will rely while their diseases progress unchecked.” President Taft, Message to Congress June 21, 1911, see 48 Cong.Rec., Part 12, p. 675.

The present distinguished Chief Justice of the United States: “ * * * we find no ground for saying that Congress may not condemn the interstate transportation of swindling preparations designed to cheat credulous sufferers and make such preparations, accompanied by false and fraudulent statements, illicit with respect to interstate commerce, as well as, for example, lottery tickets.”- In sustaining the Sherley Amendment (U.S.C.A. Title 21, sec. 10) to the original Pure Food and Drugs Act, an amendment made necessary by the failure of the' majority of the Court in the case of United States v. Johnson, 221 U.S. 488, 31 S.Ct. 627, 55 L.Ed. 823, to agree with his views. Seven Cases v. United States, 239 U.S. 510, 516, 517, 36 S.Ct. 190, 60 L.Ed. 411.

It is thus apparent that our “mild” is not in characterization of ethics but in description of harm. The products advertised (Mazon), a soap and an ointment, are germane only to the treatment of certain diseases of the skin. These diseases, always irritating and sometimes painful, *540 may work from the inside out. As the reverse is not true, they affect the case and not the wheels of our human watch. They cannot, therefore, make it cease ticking. So the false therapeutic claims of the petitioner company may disappoint. The disappointment will not, however, be fatal.

The advertisements' objected to are curative, not palliative in tenor. They assert the “elimination” rather than the alleviation of the conditions treated. They are listed as Federal Trade Commission Exhibits 4, 3, and 2B and read:

In circulars addressed to members of the medical profession:

“Mazon — an ethical preparation compounded under the personal supervision of its originator — is the original treatment of its character for:

Eczema Ring Worm

Psoriasis Athlete’s Foot

Head Scalds Barber’s Itch

Ivy Poison And Other Skin Disorders

The colloidal nature of the base of Mazon and its strong penetrating characteristics, together with its healing and soothing ingredients, afford quick and permanent elimination of Eczema and other skin disorders.” Federal Trade Commission’s Exhibit 4.

“ ‘No other treatment for permanent cure has ever been discovered. * * * Some of the best-known skin specialists in the City (of Philadelphia) are using it exclusively and praise it highly.’ ” Federal Trade Commission’s Exhibit 4.

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Bluebook (online)
103 F.2d 538, 1939 U.S. App. LEXIS 3609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belmont-laboratories-inc-v-federal-trade-commission-ca3-1939.