UNITED STATES OF AMERICA BEFORE FEDERAL TRADE COMMISSION

File No. 1-10861

IN THE MATTER OF DEARBORN SUPPLY COMPANY, (A CORPORATION), CHICAGO, ILL. STIPULATION AS TO THE FACTS AND AGREEMENT TO CEASE AND RESIST

Pursuant to the provisions of an Act of Congress, approved September 26, 1914 (38 Stat. 717; 15 U. S. C. A., Sec. 41), the Federal Trade Commission caused an investigation to be made of the methods of competition in commerce used by Dearborn Supply Company, a corporation, and from representations made concerning the methods used in the sale of its products in interstate commerce, the Federal Trade Commission is of the opinion there is reason to believe that the aforesaid corporation has been using unfair methods of competition in commerce in violation of the provisions of Section 5 of said Act.

It now appearing that Dearborn Supply Company is desirous of avoiding the issuance of a complaint and the taking of testimony, by stipulating the facts and agreeing to cease and desist from using the methods of competition hereinafter set forth, and the Federal Trade Commission is willing to accept such stipulation and agreement without prejudice to its right to issue a complaint and institute formal proceedings against the said Dearborn Supply Company at any time the breach of this agreement or the use of unfair methods, not covered by this agreement, appear to the Commission to be justified by the facts:

IT IS HEREBY STIPULATED AND AGREED by and between the Federal Trade Commission, hereinafter referred to as the Commission, and Dearborn Supply Company, hereinafter referred to as the respondent, that in order to dispose of this matter without the issuance of a complaint, the following is a true statement of the facts;

Dearborn Supply Company is a corporation organized and existing under the laws of the State of Illinois, with its principal place of business located in the City of Chicago, in the State of Illinois. It is now and has been for more than one year last past engaged in selling in interstate commerce, preparations designated MERCOLIZED WAX, PARKER BELMONT BEAUTY CREAM, POWDERED SAXOLITE, POWDERED TARKROOT, and PHELACTINE, and causing the same when sold to be shipped from its place of busihess in the State of Illinois to purchasers thereof located in other States of the United States of America.

In the course and conduct of its business the said respondent was at all times herein referred to, in competition with other persons, firms, and corporations likewise engaged in the sale, in interstate commerce, of similar articles and of articles used for the same and similar purposes.

In the course and conduct of its business, as hereinbefore described, the respondent made, published, or caused to be published the following statements, claims, and representations to induce the purchase of its products:

Mercolized wax

"You'll find only Mercolized Wax has been so formulated that it actually absorbs the discolored outer scales in tiny flake-like particles clearing away the grimy, dirt-laden surface skin."

"Free your skin blemises and all discolorations that mar its natural loveliness with our Mercolized Wax."

"Mercolized Wax brings to you a simple, natural way of beautifying the skin and keeping it young. The effectiveness of Mercolized Wax lies in the fact that it contains active ingredients that actually absorb the surface skin with all its discolorations and blemishes. This absorption process is not discernible. Gradually you will notice the new clearness and smoothness of your skin. Soon the entire discolored outer layer of skin will have disappeared and the fresh underskin which forms your new complexion appears soft, white, and youthfully beautiful. Mercolized Wax brings out the hidden beauty in your skin."

"Any blemishes that exist on the outer skin are naturally absorbed with it." "While you sleep this delightful cream brings new loveliness and radiance up from beneath the discolored surface skin."

"There is only one way to completely beautify a discolored blemished complexion and that one way is to take off the worn out surface skin by absorbing it with pure Mercolized Wax."

"Coarseness, roughness, and other blemises that rob the skin of youthful beauty are dissolved with the surface skin."

"One reason Mercolized Wax is so strongly recommended is that it really takes the place of several different cosmetics, saving time, patience, and expense." "Any woman not satisfied with her complexion can easily remove it and have a new one... Mercolized Wax is a simple remedy which will always do the work."

"Mercolized Wax will convert a faded, worn-out, or discolored complexion into one of captivating loveliness."

"A treatment for a bad complexion that is always successful is the nightly application of pure Mercolized Wax."

"Any complexion can be made smoother, clearer, younger with Mercolized Wax."

"It takes away all imperfections.”

"It cleanses, softens, bleaches, lubricates, and protects."

"It clears away freckles, tan, oiliness, sunburn, or any other blemishes." "Invisible particles of aged skin are freed and all defects such as blackheads, tan, freckles, and large pores disappear."

Parker Belmont Beauty Cream

"Wonderful oxygen cream bleaches skin."

"Parker Belmont Beauty Cream beautifies any skin."

"A skillful scientific blending of creams for bleaching, pore-deep cleansing, clearing, softening, lubricating and all-around beautifying."

"Parker Belmont Beauty Cream whitens skin quickly.”

"Dark skin is lightened and whitened two or three shades."

"This single cream is a blend of all the creams your skin requires."

"Parker Belmont Beauty Cream normalizes a dry or too oily skin. It is soothing to sensitive tissues."

Powdered saxolite

"Saxolite Astringent is a refreshing skin tonic. Smoothes out wrinkles and age lines. Refines coarse pores. Eliminates oiliness." Powdered tarkroot

"A Tarkroot Beauty Mask revives and refreshes a fatigued, drooping face more quickly and completely than anything else can."

"It is beneficial for almost every condition such as age lines, wrinkles, enlarged pores, blackheads and other surface blemishes."

"Wrinkles and age lines are smoothed out. Relaxed, sagging contours are pulled up into proper position. The circulation is aroused to nourish the drooping tissues. Pores are purged of all impurities."

"Tarkroot Beauty Mask wakes up dull skin!"
"Tarkroot Face Rester relieves facial fatigue."

"The quickest way to renew your complexion is to give yourself a facial pack treatment with Tarkroot Beauty Mask."

"Beautify your skin with Tarkroot Face Mask."

"Tarkroot performs a four-purpose plan of beautifying by tightening, refining, purifying and stimulating."

Phelactine

"Try Phelactine Depilatory, removes superfluous hair gently. Leaves skin smooth, soft and hair-free. Simple to use."

"Try Phelactine the 'different' hair remover."

The respondent hereby admits:

That while, according to reliable medical authority, Mercolized Wax in concentrated form will act as an irritant and will tend to reduce, by contrast, the visibility of small skin discolorations, the ultimate result of the use of this preparation is a deeper and more persistent pigmentation than that which was previously visible;

That, according to reliable medical authority, Mercolized Wax does not "absorb" half-dead sluggish outer skin blemishes; and its continued excessive use may result in mercury poisoning;

That, according to reliable medical authority, Parker Belmont Beauty Cream cannot be considered an oxygen cream and, while it may have a slight bleaching effect, it is not a blend that supplies all the skin requires or an all-in-one beautifier and it will not normalize a dry or too oily skin;

That, according to reliable medical authority, Powdered Saxolite is not a skin tonic, will not remove wrinkles or age lines, correct flabby or sagging skin, refine coarse pores, or have any appreciable effect as a rub for tired, overworked muscles;

That, according to reliable medical authority, Powdered Tarkroot will not revive and refresh a fatigued, drooping face, or smooth out wrinkles and age lines, or pull relaxed and sagging contours into proper position, or arouse circulation or purge pores of all impurities, or wake up dull skin, or renew complexion, or beautify skin by tightening, refining, purifying, and stimulating;

That, according to reliable medical authority, Phelactine does not remove superfluous hair gently, or leave the skin smooth, soft and hair-free, and it is not different from many similar preparations on the market.

The respondent hereby stipulates and agrees in soliciting the sale of its products in interstate commerce to cease and desist from representing directly or otherwise

(a) That the use of Mercolized Wax will free the skin of blemishes and all discolorations that are not superficial and due to external causes;

(b) That Mercolized Wax

1. Keeps the skin young; or

2. Brings new loveliness and radiance up from beneath the discolored surface skin;

(c) That the use of Mercolized Wax is the "only" way to completely beautify a discolored blemished complexion;

(d) That Mercolized Wax—

1. Dissolves coarseness and other blemishes;

2. Is a simple remedy which will always easily remove the old complexion and produce a new one;

3. Will convert a faded, wornout, or discolored complexion into one of captivating loveliness;

4. Is always a successful treatment for a bad complexion;

5. Will make any complexion smoother, clearer or younger ;

6. Takes away all imperfections; or protects;

7. Clears away oiliness, sunburn, or any other blemishes that are not superficial and due to external causes;

8. Causes all defects, such as blackheads and large pores, to disappear;

(e) That Parker Belmont Beauty Cream:

1. Is an oxygen cream;

2. Lightens and whitens dark skin 2 or 3 shades; or

3. Normalizes a dry or too oily skin;

(f) That Parker Belmont Beauty Cream is a blend of all the creams the skin requires;

(g) That Parker Belmont Beauty Cream is a scientific blending of creams for pore-deep cleansing;

(h) That Powdered Saxolite:

1. Smoothes out wrinkles and age lines; or

2. Refines coarse pores; or

3. Eliminates oiliness;

(i) That Powdered Tarkroot is beneficial for almost every condition, such as age lines, wrinkles, enlarged pores, blackheads, and other surface blemishes; (j) That a Tarkroot Beauty Mask revives a fatigued, drooping face more quickly and completely than anything else can:

(k) That Powdered Tarkroot or a Tarkroot Beauty Mask:

1. Smoothes out wrinkles and age lines;

2. Pulls relaxed, sagging contours into proper position;

3. Arouses circulation to nourish drooping tissues; or

4. Purges pores of all impurities;

(1) That Tarkroot Beauty Mask:

1. Wakes un dull skin:

2. Relieves facial fatigue;

3. Beautifies the skin;

4. Renews the complexion; or

5. Performs a four-purpose plan of beautifying, by tightening, refining. purifying, and stimulating;

(m) That Phelactine:

1. Removes superfluous hair "gently"; or

2. Is the "different" hair remover;

and from making any other claims or assertions of like import.

The respondent further stipulates and agrees not to publish or cause to be published any testimonial containing any representation contrary to the foregoing agreement.

IT IS ALSO STIPULATED AND AGREED that if the said respondent should ever resume or indulge in any of the practices in question, this stipulation of the facts may be used in evidence against it in any proceeding that the Commission may institute against the said respondent.

(Whereupon, at 5: 20 p. m., Monday, March 11, 1946, the committee

adjourned.)