In the Matter of the Complaint Against

 STEIN'S STEIN'S MFG. CO., and LOU STEIN, P.C. 
 at Woodbury, New Jersey
 (hereinafter called Respondent)

 is engaged in conducting a scheme for obtaining money through
 the mails in violation of 39 U.S. Code 4005.  

 P.O.D. Docket No. 2/131; 

 APPEARANCES:
 Mayo H. Roberts, Esq.
 Office of the General Counsel
 Post Office Department
 for the Complainant

 Mitchell S. Lipschutz, Esq.
 1 East Penn Square Building
 Philadelphia, Pennsylvania
 for the Respondent

In the above-named case the Complainant alleges that a fraudulent scheme is being conducted in violation of 39 U.S. Code

4005 ¹/ by the Respondent; that the Respondent has been obtaining remittances of money through the mails by means of false and fraudulent pretenses and representations.

The products involved are called "Complemin, Blood Building Pep Tablets" and "La Femme Skin Ointment."

Mr. Lewis Stein, the Respondent herein, related at the hearing how he became interested in these products--Tr. 297-301. He said that about nine years ago he was a sick man who had many problems--problems with his family and problems in relation to sex with his wife. He lost weight. He found a book on physical culture. He took the exercises and applied the water applications it described for stimulation and mental concentration. He said his concentration on past sexual relations helped him in relationship with his wife. In addition to the exercises and the mental concentration on sex he took a vitamin. As a result of all this he felt like a new man at 37 years of age. He advised this procedure to some of his friends on the job where he worked and he said his advice helped them. As a patient and friend, he went to see Dr. Harry Beloff in Philadelphia, Pennsylvania, and to him described the above experience and that now his desire was to help others. He asked about a vitamin. Dr. Beloff recommended Complemin--Tr. 300. Mr. Stein also consulted with Dr. Beloff about a method. Dr. Beloff looked into the physical culture manual and took out what he thought would be an aid along with Mr. Stein's methods. Dr. Beloff okayed the Complemin and the methods and the ads of the product of Complemin.

Mr. Stein said that he did not finish trade school but had worked as an electrician in the Navy Yard. He used P. C. after his name on some of the ads and said in the hearing that it meant "Physical Culturist."

The issues in this proceeding are whether the Respondent falsely makes the representations set forth in the complaint and whether such representations, if falsely made, were made with an intent to defraud.

Dr. Charles D. Lenhoff was called as an expert witness for the Complainant. His qualifications cannot be challenged. The gist of his testimony is that Complemin has no effect on stimulating sex in a person and that the cold water applications to the male genital

organs are not effective; that no medical theory would sustain the representations made by the Respondent and that he was conversant with the general medical knowledge in this field.

Dr. Harry Beloff, whose qualifications cannot be challenged, was called to testify by the Respondent. Dr. Beloff corroborated the testimony of Mr. Lewis Stein saying that Mr. Stein did come ot him as a friend to discuss the taking of a certain vitamin, the benefit of cold applications to the male genital organs, and the effect of time set aside for a man to concentrate on former sex incidences. Dr. Beloff said he recommended Complemin and also the methods proposed by Mr. Stein in his ads. He said that Complemin was an old remedy and that it was advertised and sold by the Physicians' Drug and Supply Company. It is listed in the catalogue of the Physicians' Drug and Supply. Dr. Beloff said it was listed there long before Mr. Stein had anything to do with it--Tr. 291. Dr. Beloff said he had advocated in some cases using the cold applications that were described in Mr. Stein's ad.

Neither Dr. Lenhoff nor Dr. Beloff maintained that Complemin would activate any sex ability. Counsel for the Respondent argued that Complemin and the methods were for making better family relationship but the representations on the ads did ot stress sex. I sustain the Hearing Examiner in his interpretation of the ads in this respect. ²/ The representations held out for Complemin are false but from the facts adduced at the hearing the intent to defraud is not sustained.

Complainant's Exhibit F (a copy of which is hereto attached) calls attention to Blood Building Pep Tablets. The ad goes on to say (referring to MEN-WOMEN in large letters) "If you want a happy home life and need to feel younger and stronger in fulfilling your home obligation -- send for your FREE SUPPLY today." If a man responded to this ad he was sent the Blood Building Pep Tablets along with the instructions (the methods) in the use of cold water applications to the male genital organs, and the method used for mental concentration on sex. But if a woman responded to the ad she was sent only the Blood Building Pep Tablets. It was brought out in the testimony that Complemin and Blood Building Pep Tablets are one and the same thing. Counsel for the Respondent maintains this ad does ot refer to sex but I believe that it does. Furthermore, I believe that the average person would so interpret it. Since both the doctor for the Complainant and the doctor for the Respondent testified that Complemin would not activate any sex ability and since Blood Building Pep Tablets are the same as Complemin the representations set out in Complainant's Exhibit F are fraudulent. With Mr. Stein's knowledge of Complemin which he received from Dr. Beloff he knew the ad on Blood Building Pep Tablets would not do what it says it will. There is a clear intent to defraud.

Complainant's Exhibit D sets out the Respondent's ad inviting the attention of women. On the right side of the ad is a good-looking young woman with large breasts. The ad says:

WOMEN] YOU TOO CAN DEVELOP A MORE

EXCITING, ALLURING BODY

FREE 30-DAY TRIAL

Bring out your hidden beauty. We'll send you (NO OBLIGATION) a 30-day supply of LA FEMME SKIN OINTMENT (Vitamin Fortified) and methods. See for yourself. Please en- close 25c / for postage and handling.

STEIN'S, Box 4-375, Woodbury, New Jersey

Dr. Kenneth D. Campbell, whose qualifications cannot be challenged, was called as the Complainant's witness. In answer to the questions asked about the instructions accompanying the product for the massage of the female breasts with the La Femme Skin Ointment with 15 strokes upwards on the underside of the breast and 15 strokes on the upperside of the breast and after the massaging to take 7 deep breaths, Dr. Campbell said it was dangerous to massage the female breast and that he never recommended it because the breast is the site of one of the two most frequently occurring cancers in the female Tr. 209 that it was ill advised medically to traumatize a pre-malignant or malignant lesion. Dr. Campbell referred to reports from literature in the various cancer institutes. He went on to say that "You can say with a fair degree of medical certainty that the traumatization of a cancerous lesion in an animal will cause its spread; the same thing will ensue in a human being." Tr. 175. He said that never in his practice did he ever recommend any manipulation of the female breast. He also stated that he knew of no doctor who held a contrary view; that the views he expressed were in conformity with the universality of medical opinion Tr. 212.

Dr. Beloff testified for the Respondent relative to La Femme Skin Ointment. He did not agree with Dr. Campbell, the witness for Complainant. He said he knew of no scientifically proven basis for a statement that massaging of a female breast will cause the spread of any latent or incipient malignancy that might exist. He also said that his opinion is in accord with the universal opinion of medical men.

Dr. Campbell went on to say that deep breathing could help the chest cavity but that the size of the female breasts largely depend upon heredity. Dr. Beloff said that the deep breathing improves the posture so increases the size of the chest cavity and firm sup tissues and the breast may be pushed forward. The seven deep breaths per day are not sufficient to enlarge the chest cavity so that female breasts may be more prominently displayed.

I agree with the Hearing Examiner when he says "Similarly, the matter of 'Blood Building Pep Tablets' as charged in subparagraphs j and k of the amended complaint appears to have been sustained by the evidence, including, of course, the exhibits mentioned above. There is no evidence that Complemin is a blood-building substance, and the evidence on behalf of each party hereto negates any value as a sexual stimulant. The fact that the ingestion of this product without any additional method is represented to female users in order to have 'a happy home life, and need to feel younger and stronger infulfilling your home obligation' (** Exhibit 'F' to the complaint) is patently false, and as in the case of La Femme, supra, is concluded to be fraudulent."

A fraud order is hereby issued against Stein's, Stein's Mfg. Co., and Lou Stein, P.C., at Woodbury, New Jersey.

02/14/66

Bosone, Reva Beck

1/ § 4005. Fraudulent and lottery matter

(a) Upon evidence satisfactory to the Postmaster General that any person is engaged in conducting a scheme or device for obtaining money or property through the mail by means of false or fraudulent pretenses, representations, or promises; or engaged in conducting a lottery, gift enterprise, or scheme for the distribution of money or of real or personal property by lottery, chance, or drawing of any kind; the Postmaster General may--

(1) direct postmasters at the office at which registered letters or other letters or mail arrive, addressed to such a person or to his representative, to return the registered letters or other letters or mail to the sender marked "fraudulent" or "lottery mail"; and

(2) forbid the payment by a postmaster to such a person or his representative of any money order or postal note drawn to the order of either and provide for the return to the remitters of the sums named in the money orders or postal notes.

(b) The public advertisement by a person engaged in activities covered by subsection (a) of this section, that remittances may be made by mail to a person named in the advertisement, is prima facie evidence that the latter is the agent or representative of the advertiser for the receipt of remittances on behalf of the advertiser. The Postmaster General is not precluded from ascertaining the existence of the agency in any other legal way satisfactory to him.

(c) As used in this section and section 4006 of this title the term "representative" includes an agent or representative acting as an individual or as a firm, bank, corporation, or association of any kind.

2/ P. Lorillard Company v. Federal Trade Commission, (CA 4) 186 F.2d 52, 58.