Removatron International Corporation and Frederick E. Goodman v. Federal Trade Commission

884 F.2d 1489, 1989 U.S. App. LEXIS 13594
CourtCourt of Appeals for the First Circuit
DecidedSeptember 11, 1989
Docket88-2245
StatusPublished
Cited by52 cases

This text of 884 F.2d 1489 (Removatron International Corporation and Frederick E. Goodman v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Removatron International Corporation and Frederick E. Goodman v. Federal Trade Commission, 884 F.2d 1489, 1989 U.S. App. LEXIS 13594 (1st Cir. 1989).

Opinion

BOWNES, Circuit Judge.

Petitioners, Removatron International Corporation (Removatron) and Frederick E. Goodman, seek review of the Federal Trade Commission’s 1 cease and desist order and decision which found the advertising of Re-movatron’s epilator machine to be deceptive. The FTC defends the Commission’s decision and order and requests that we issue an injunction pendente lite. For the reasons set forth below, we deny the petition for review and issue the injunction.

I. FACTS

Hirsutism is perceived as a problem by some people, particularly women. Many products are marketed to reduce or eliminate excessive hair. To remove hair permanently, the dermal papilla must be completely destroyed. The dermal papilla is a group of cells that forms a portion of the hair follicle. Most remedies offer only temporary relief. Electrolysis permanently removes hair but the process can be painful and may leave scars and pits in the skin.

Petitioners market a product that they claim can remove unwanted hair permanently without the side effects associated with electrolysis. Their product uses a pair of tweezers to remove the hair; while the tweezers grasp the hair but before it is removed, the machine emits radio frequency energy (RFE) that travels down the tweezers and along the hair. Petitioners claim that the RFE causes tissue damage and destruction of the dermal papilla by heating the tissue in much the same way a microwave heats food. Petitioners’ product is approved by the Federal Communications Commission (FCC) to emit radio waves at a particular frequency.

Petitioners advertise their product mainly in the beauty industry trade magazines. Sales are made after a series of telephone calls, mailings of literature, and meetings. The machine costs about $4,000. During the sales process, the purchasers are told that the machine will not work for everyone and that permanent removal will only be obtained after several treatments. Women who wish to be treated by the machine are given much the same information in written or oral form by the machine owner or operator. The written information is provided by petitioners who also provide purchasers with advertisements to place in local print media. Treatments cost approximately $35 per hour.

Rather than rehash all the evidence anent petitioners’ advertising, we present only a few typical samples of the types of claims made by petitioners. The petitioners stated that with Removatron treatments, hair removal can be “permanent” and unwanted hair will no longer be a *1492 problem; the ads also stated the machine is “effective” and an “alternative to electrolysis.” The advertising also included statements that the machine has been “clinically tested and endorsed” and “clinically tested and shown superior.” The ads also claimed that the FCC approved petitioners’ product.

The FTC filed a complaint against petitioners alleging that they did not have a reasonable basis for their advertising claims and thus, their ads were in violation of § 5 of the Federal Trade Commission Act, 15 U.S.C. § 45. 2 The complaint alleged that petitioners did not have a reasonable basis for their claims. It did not allege that petitioners had made “establishment” claims, which would require scientific evidence in support of the claims made. 3

After a lengthy trial, the administrative law judge (AU) agreed with the FTC and issued a cease and desist order. The AU found that the petitioners made both express and implied claims that their machine could remove hair permanently and that any disclaimers were ineffective and ambiguous. He also found that these claims were establishment claims, i.e. they purported to be supported by scientific evidence. He further found that the ads expressly claimed FCC approval and that these claims implied government approval of the entire product, not just the approval to emit radio waves at a certain frequency. 4

The AU then turned to the question of whether the petitioners had a reasonable basis for their claims. After an exhaustive discussion of hair growth and biology, he determined that, because the ads claimed scientific support for the claims made, two well-controlled scientific studies 5 were needed to show a reasonable basis for those claims. See Thompson Medical Co., Inc. v. FTC, 791 F.2d 189, 194-96 (D.C.Cir.1986), ce rt. denied, 479 U.S. 1086, 107 S.Ct. 1289, 94 L.Ed.2d 146 (1987). The AU analyzed the voluminous experimental, theoretical, and testimonial evidence, as well as the evidence relating to comparable products, presented by petitioners and found all of it lacking when compared to the rigors of well-controlled studies. The AU, therefore, held that petitioners had violated 15 U.S.C. § 45. The AU found that petitioners’ claims caused substantial financial and emotional consumer injury. Based on these findings and holdings, he entered an order, which in pertinent part required the petitioners: (1) to cease and desist from advertising their machine as a method of permanent hair removal unless they first possessed two well-controlled scientific studies supporting those claims; (2) to in- *1493 elude in future advertising claiming that their product will remove hair, a disclaimer that the machine can only remove hair temporarily; (3) to send each purchaser a copy of the order; and (4) to provide future purchasers with a copy of the order. Petitioners appealed to the Commission.

The Commission adopted most of the AU’s findings and conclusions and affirmed the order in large part. The Commission rejected petitioners’ arguments that the AU erred in various evidentiary rulings. The Commission rejecteeKUie AU’s finding that petitioners’ claims had caused emotional injury to any purchaser or woman who had used the machine. The Commission agreed with the AU’s findings that petitioners had made “establishment” claims and thus needed to have scientific support for those claims. It found, however, that petitioners needed one well-controlled scientific study in order to have a reasonable basis for their claims, not two, as the AU had found. In a footnote, the Commission analyzed the factors for non-establishment claims, see In re Pfizer, Inc., 81 F.T.C. 23 (1972), and held that, even when viewed in this light, petitioners needed at least one study in order to have a reasonable basis for their claims. 6 Because petitioners lacked any such studies, the Commission affirmed the finding of a violation of 15 U.S.C. § 45. By an evenly divided vote, the Commission modified the order to require that petitioners cease their permanency claims until they possessed one well-controlled scientific study supporting that claim; two Commissioners would have upheld the AU’s determination that two such studies were needed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bonnet v. Whitaker
118 F.4th 154 (First Circuit, 2024)
Gregg, G. v. Ameriprise Financial, Aplts.
Supreme Court of Pennsylvania, 2021
Kathy S. Brown v. Compass Harbor Village Condominium Association
2020 ME 44 (Supreme Judicial Court of Maine, 2020)
FTC v. Amg Capital Management, LLC
910 F.3d 417 (Ninth Circuit, 2018)
State Of Washington v. LA Investors, LLC
410 P.3d 1183 (Court of Appeals of Washington, 2018)
Fed. Trade Comm'n v. Omics Grp. Inc.
302 F. Supp. 3d 1184 (D. Nevada, 2017)
ECM BioFilms, Inc. v. Federal Trade Commission
851 F.3d 599 (Sixth Circuit, 2017)
Federal Trade Commission v. NPB Advertising, Inc.
218 F. Supp. 3d 1352 (M.D. Florida, 2016)
Federal Trade Commission v. Coorga Nutraceuticals Corp.
201 F. Supp. 3d 1300 (D. Wyoming, 2016)
Fanning v. Federal Trade Commission
821 F.3d 164 (First Circuit, 2016)
Pom Wonderful, LLC v. Federal Trade Commission
777 F.3d 478 (D.C. Circuit, 2015)
Federal Trade Commission v. E.M.A. Nationwide, Inc.
767 F.3d 611 (Sixth Circuit, 2014)
Federal Trade Commission v. AMG Services, Inc.
29 F. Supp. 3d 1338 (D. Nevada, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
884 F.2d 1489, 1989 U.S. App. LEXIS 13594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/removatron-international-corporation-and-frederick-e-goodman-v-federal-ca1-1989.