In the Matter of the Complaint Against: BANNER LABORATORIES, Post Office Box 10288 at Detroit, Michigan 48210 P.S. Docket No. 5/77 07/12/77 Lussier, Edward F.; Judicial Officer APPEARANCES FOR COMPLAINANT: Thomas A. Ziebarth, Esq. Law Department United States Postal Service Washington, D.C. APPEARANCES FOR RESPONDENT: Clarence Meriwether, Detroit, Michigan
On September 13, 1976, the Consumer Protection Division of the Law Department United States Postal Service, hereinafter referred to as Complainant, filed a Complaint seeking the issuance of a mail-stop order against the above-named Respondent. The Complaint alleged that Respondent in the sale of its product Ultra Hair falsely represented that:
"(a) ULTRA HAIR will stop balding; and
(b) ULTRA HAIR will cause hair to grow again".
Under date of October 22, 1976, Respondent executed a Consent Agreement as a result of which the administrative proceeding was indefinitely suspended. Under the terms of the Consent Agreement Respondent agreed that the promotional materials and representations described in the Complaint would be permanently discontinued and not renewed directly or indirectly.
Under date of June 21, 1977, Complainant filed a Petition alleging a breach of the Consent Agreement by Respondent and attaching advertisements used by Respondent after the date of the Consent Agreement which advertising continues to make the representations complained of in the original proceeding. Under Clause 3 of the Consent Agreement an order was issued by the undersigned detaining the mail and giving Respondent the opportunity to reply to the Petition.
Respondent has now filed its reply. It does not deny the facts pleaded in the Petition. While promising to take steps to avoid using a brochure which headlines that Ultra Hair will "Stop Balding" it does not address the second misrepresentation, namely that the product will cause hair to grow again. In fact, Respondent appears to say that it intends to continue making that representation.
The Consent Agreement commits the Respondent not to continue the representations alleged in the Complaint to be materially false. Whether the representations are made in a magazine advertisement, a brochure or a direct mail circular is irrelevant. Under the terms of the Consent Agreement upon showing of a breach of this commitment a mail-stop order may issue. Such a showing has here been made and accordingly a mail-stop order is being issued forthwith.