S. S. S. Company, Inc. And Tucker Wayne & Company, Inc. v. Federal Trade Commission

416 F.2d 226, 1969 U.S. App. LEXIS 10554, 1969 Trade Cas. (CCH) 72,929
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 6, 1969
Docket19029_1
StatusPublished
Cited by3 cases

This text of 416 F.2d 226 (S. S. S. Company, Inc. And Tucker Wayne & Company, Inc. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. S. S. Company, Inc. And Tucker Wayne & Company, Inc. v. Federal Trade Commission, 416 F.2d 226, 1969 U.S. App. LEXIS 10554, 1969 Trade Cas. (CCH) 72,929 (6th Cir. 1969).

Opinion

WEICK, Circuit Judge.

Petitioners, SSS Company and its advertising agency, Tucker Wayne & Company, seek to review and set aside an or *228 der of the Federal Trade Commission requiring them to cease and desist from false and misleading advertisements of SSS Company’s tonic in violation of Sections 5 and 12 of the Federal Trade Commission Act. 1

The advertisements were aimed principally at the rural and urban poor. Typical of the advertisements is the following radio broadcast:

“Do you find yourself missing out on the fun of life? Do you feel, dull, draggy * * * just ‘too tired’ to do things ? Then maybe you’re suffering from Iron Deficiency Anemia — low blood power. If so, what you need is Three-S Tonic! New formula ThreeS Tonic — now with B vitamins — is rich in iron to help build back your blood power * * * restore your energy * * * help you feel better fast! Three-S Tonic goes to work within hours. And if you don’t feel better in just six days the ThreeS Company will refund your money * * * every cent of it! So don’t miss out on the fun in life. Don't let yourself feel ‘too tired’ to enjoy things. If you're suffering from Iron Deficiency Anemia, take Three-S Tonic! Yes, yes, yes, * * * get S.S.S.! Get started on new-formula, iron-and-vitamin-enriched Three-S Tonic * * * in liquid or tablet form * *• * right away!”

The Commission found that such advertisements created for listeners the false impression that tiredness and lack of pep or energy symptoms experienced by many people were the result of iron deficiency or iron deficiency anemia, and would be cured or alleviated by SSS tonic which contains iron, vitamins and various herbs. The truth, as found by the Commission, is that only a small minority of people suffer from tiredness or lack of energy due to iron deficiency or iron deficiency anemia, and in most cases these symptoms are attributable to other ailments, for the treatment of which the tonic is not a remedy.

The SSS preparations were specific only for the treatment of iron deficiency and iron deficiency anemia and are worthless in the treatment of the other ailments. The vitamins and herbs in the SSS preparations are of no benefit even in the treatment of iron deficiency or iron deficiency anemia.

There is substantial evidence in the record to support the factual findings of the Commission and they are binding on us. In our judgment, the Commission correctly interpreted the language of the advertisements.

This case is similar to and is controlled by our decision in J. B. Williams Co. v. Federal Trade Comm., 381 F.2d 884 (6th Cir. 1967), in which we sustained a cease and desist order of the Commission prohibiting false and misleading advertisements of the product “Geritol”.

The Commission’s Order in the present case required that any representations by petitioners that their preparations are beneficial in treating tiredness symptoms be limited to those symptoms caused by a deficiency of one or more of the vitamins or iron provided by such preparations, *229 and further required that their representations must be accompanied by the affirmative disclosure that the great majority of persons experiencing tiredness symptoms will derive no benefit from such preparations. We approved an order requiring such an affirmative disclosure in J. B. Williams Co., supra.

Paragraph 1(b) of the Commission’s Order further prohibits petitioners from representing that the SSS preparations will be of benefit to any particular population group, provided, however, that it shall be a defense in any future enforcement proceedings for petitioners to show either that there is a reasonable probability that a majority of persons within such group suffers from iron or vitamin deficiency or iron deficiency anemia or that their advertising did no more than truthfully and accurately represent the percentage of persons in a specific population group with such deficiencies. Petitioners argue that this provision is beyond the Commission’s power, claiming that it shifts the burden of proof from the Commission to them in future enforcement proceedings.

The record indicates that it is very unlikely that there is any major population group the majority of whose members at any one time suffer deficiency of the ingredients of the SSS preparations. Rather than broadly prohibit all such representations, the Commission has given petitioners authority to make these representations so long as they are completely truthful. It seems quite clear that rather than impose a burden, the Commission has allowed them an “escape”. Colgate-Palmolive Co. v. Federal Trade Comm., 326 F.2d 517, 523 (1st Cir. 1963), rev’d, 380 U.S. 374, 85 S.Ct. 1035, 13 L.Ed.2d 904 (1965) (order enforced in toto).

Petitioners further contend that the provisions of paragraphs 1(a), 1(b) and 1(g) of the Order cannot stand in their present form because these paragraphs contain prohibitions against representations that the SSS preparations will be of benefit to the general public in the prevention of iron or vitamin deficiency or iron deficiency anemia. Petitioners do not maintain that it would be truthful for them to make such representations. They argue instead that they were not given notice that the question of prevention would be in issue; that there was no evidence pertaining to this question adduced at the hearings; and that no findings were made concerning the question of prevention. We see no merit in these contentions.

As before stated, the evidence substantiates the finding that only a small minority of the population suffer from iron or vitamin deficiency or iron deficiency anemia. The Commission’s Order would be rendered largely nugatory if the prohibitions relating to prevention were not enforced. Without such prohibitions petitioners would be able to promote their preparations as something which the preparations clearly are not, i. e., prophylactics for deficiencies commonly experienced by the general public.

As to petitioners’ contention involving notice, the Supreme Court has, under similar circumstances, held:

“The emphasis that there was no charge, no evidence, no finding to support the inclusion of the objectionable provision in the order is misplaced. Its insertion was nothing more than a mode of implementation, selected by the Commission, to enforce its findings of violations of the Act.” Federal Trade Comm. v. National Lead Co., 352 U.S. 419, 427, 77 S.Ct. 502, 508,1 L.Ed.2d 438 (1957).

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Bluebook (online)
416 F.2d 226, 1969 U.S. App. LEXIS 10554, 1969 Trade Cas. (CCH) 72,929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-s-s-company-inc-and-tucker-wayne-company-inc-v-federal-trade-ca6-1969.