Sterling Drug, Inc. v. Federal Trade Commission

741 F.2d 1146, 1984 U.S. App. LEXIS 19141
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 28, 1984
Docket83-7700
StatusPublished
Cited by34 cases

This text of 741 F.2d 1146 (Sterling Drug, Inc. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sterling Drug, Inc. v. Federal Trade Commission, 741 F.2d 1146, 1984 U.S. App. LEXIS 19141 (9th Cir. 1984).

Opinion

HUG, Circuit Judge:

In this appeal from a decision of the Federal Trade Commission, Sterling Drug, Inc. seeks review of a determination that it disseminated false advertising for its nonprescription analgesic products. Sterling contests findings by the Commission that its advertising was deceptive. It contends that the provisions of the cease and desist order are not warranted by the record and that the order applies to more of Sterling’s *1148 products than is warranted by the record, We uphold the findings and enforce the order.

I

Facts and Procedural History

Sterling Drug, Inc. (“Sterling”) manufactures nonprescription internal' analgesic products, including Bayer Aspirin, Bayer Children’s Aspirin, Vanquish, Cope, and Mi-dol. In February 1983, the Federal Trade Commission issued an administrative complaint against Sterling in which it was alleged that certain Sterling advertisements violated sections 5 and 12 of the Federal Trade Commission Act, 15 U.S.C. §§ 45 and 52. On the same day, the Commission also charged that two of Sterling’s competitors had engaged in deceptive advertising practices. Those complaints named Bristol-Myers Company, which manufactures Bufferin and Excedrin, and American Home Products Corporation, which produces Anaein and Arthritis Pain Formula.

The cases were partially consolidated before an administrative law judge, who held joint hearings on issues common to the three cases. After extensive pretrial discovery, the AU held a separate hearing in this case in 1979-80. He heard testimony from forty witnesses, including experts in the fields of medicine, pharmacology, and advertising. He also reviewed hundreds of exhibits and a large volume of scientific publications submitted in conjunction with the testimony of the expert witnesses.

The AU found each of the companies liable for violations of the Act and issued broad cease and desist orders barring future violations. Each of the companies appealed to the Commission. In each case, the Commission affirmed the AU’s decision as modified. 1

In considering Sterling’s appeal, the Commission reviewed a complaint against Sterling that charged deceptive advertising as to several of its products. Briefly summarized, the charges made by the corn-plaint and the holdings reached by the Commission are as follows:

A. Advertising for Bayer Aspirin.
1. The complaint charged that Sterling had advertised that it was scientifically established that Bayer Aspirin had overall pharmaceutical superiority to other brands and that it was also pharma-ceutically superior as to four specific attributes: purity, freshness, stability, and speed of disintegration.
The Commission held that the Government had not met its burden of proof on the charge that a study done by Sterling on overall pharmaceutical quality did not demonstrate Bayer’s superior quality. However, the Commission held that Sterling’s scientific study did not establish superior pharmaceutical quality as to the four specific attributes.
2. The complaint charged that Sterling had represented that Bayer’s therapeutic effectiveness had been established by scientific means.
The Commission found that the representation had been made in the advertising and that the claim was not supported by scientifically acceptable evidence.
3. The complaint charged that advertising- represented that Bayer relieved nervous tension, stress, fatigue, and depression and that there was no reasonable basis for the claim.
The Commission held that the advertising did not make this representation.
B. Advertising for Cope.
1. The complaint charged that advertising falsely claimed that Cope had a unique formula that acted as a powerful pain reliever and as a gentle relaxer.
The Commission found that the advertising made the representation and that *1149 there was no reasonable support for the claim that the formula was unique.
2. The complaint charged that advertising represented that Cope relieved nervous tension, stress, fatigue; and depression and that its effectiveness was established.
The Commission found that the representation was made and that there was no reasonable support for the claim.
C. Advertising for Midol.
1. The complaint charged that advertising represented that Midol did not contain aspirin as its analgesic agent whereas, in fact, it did.
The Commission found that a false representation had been made.
2. The complaint charged that advertising represented that Midol relieved nervous tension, stress, fatigue, and depression.
The Commission found that the representation was made and that there was no reasonable support for the claim. Sterling does not challenge this finding on appeal.
D. Advertising for Vanquish.
1. The complaint charged that Sterling claimed that Vanquish was superior to other products as a pain reliever and caused less stomach upset than other products and that this claim was scientifically established.
The Commission found that Sterling had represented that Vanquish was superior as to these qualities and that there was no reasonable basis for the claim, but the Commission also found that Sterling had not claimed that superiority was scientifically established.
E. Advertising for Bayer Children’s Aspirin.
1. The complaint charged that Sterling had represented that its children’s aspirin had superior therapeutic effectiveness to other products.
The Commission found that there had been no such representation.

The Commission entered a cease and desist order, which is set forth in Appendix A. All portions of the order covered the following Sterling products: Bayer, Bayer Children’s Aspirin, Vanquish, Cope, Midol, or other nonprescription internal analgesic products. Paragraph IV of the order also covered all of Sterling’s nonprescription drug products. The order set forth the criteria that must be met before Sterling can claim that superior therapeutic effectiveness or pharmaceutical quality has been established scientifically. The order also set forth the standard to be met for these products where claims of therapeutic performance are made but no claims are made that such performance has been scientifically established.

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Bluebook (online)
741 F.2d 1146, 1984 U.S. App. LEXIS 19141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterling-drug-inc-v-federal-trade-commission-ca9-1984.