ADVERTISING UNDER THE FEDERAL TRADE COMMISSION ACT 183 (5) based upon advertising for a cosmetic product for application to the eyelashes, which advertising claimed in part "your eyes will have IT--the look of genuine glamor that comes only from long, thick lashes--the kind NATURE bestows on the favored few.*** Prove to yourself that you CAN have the long, lustrous lashes people rave about!" You as scientists might have anticipated the order of the Commission which prohibited the representation that this or any similar product will cause the eyelashes to grow longer or thicker. Returning to the provisions of the Statute, it may be well to discuss the subject of affirmative disclosures. You will recall that in the definition of a false advertisement, there was a reference to the failure to reveal mate- rial facts respecting consequences resulting from use of the product. It was under the authority of this provision that the Commission has issued a number of orders (6) forbidding claims that certain preparations will prevent or overcome excessive hair fall or baldness, or will grow hair, unless such representations be expressly limited to cases other than those due to male pattern baldness and unless the advertisement clearly and con- spicuously reveals the fact that the great majority of all cases of excessive hair fall and baldness are due to male pattern baldness and that said prepa- ration will not in such cases induce the growth of hair or thicker hair. Au- thority of the Commission to require such an affirmative disclosure was confirmed by the c6urts when some of these cases were appealed. A little earlier, I made the point that the Commission's considerations are on a case-by-case basis, each matter being decided by the facts presented therein. I stated that this was true generally as to substantive claims for the effectiveness of products. There are some areas, however, where general principles can be applied broadly regardless of the type of product involved. In these areas, the Commission is promulgating Guides. De- ceptive Advertising of Guarantees, Bait Advertising, and Deceptive Pricing Guides, apply to all products, including cosmetics. The fundamental purpose of the Guides is to assist the businessman in his efforts to avoid violation of the Federal Trade Commission Act and are written in layman's language. They are in the form of interpretive instructions issued to the staff, but made available to the public. The Guides Against Deceptive Pricing contain the following basic points. No statement which implies a reduction or saving from an established retail price should be used unless the saving or reduction applies to the specific article offered for sale and is a saving or reduction from the usual and customary retail price. Any statement which is used to imply a re- duction or saving is prohibited if an artificial mark-up has been used or the claim is based on infrequent or isolated sales or on a price no longer effective. On December 4, 1959, the Commission released its Guides Against Bait Advertising. These Guides define bait advertising as an alluring but

184 JOURNAL OF THE SOCIETY OF COSMETIC CHEMISTS insincere offer to sell a product or service which the advertiser in truth does not intend to sell, his purpose being primarily to switch customers from buying the advertised merchandise to something else. In other words, it is a way of luring the customer into the store or of obtaining leads to persons interested in buying merchandise of the type advertised. Guides Against Deceptive Advertising of Guarantees were announced on April 29, 1960. The general principle applicable to all advertising of guarantees as stated in Guide I, is as follows: "In general, any guarantee in advertising shall clearly and conspicuously disclose (a) The nature and extent of the guarantee, and (b) The manner in which the guarantor will perform, and (c) The identity of the guarantor." The Commission has another informal procedure which will be of in- terest to you, that of its trade practice conference programs. The ob- jective of such programs is to obtain and maintain compliance with laws administered by the commission on a voluntary basis. The Commission has promulgated Trade Practice Rules for the Cosmetic and Toilet Preparations -Industry. In administering these Rules, we at the staff level are frequently en- countering questions of possible deception as to origin of perfumes and other cosmetic products. Rule 3 states that: "It is an unfair trade practice to falsely represent, directly or by implication, through any means or device. 1. The origin of any industry product or the origin of any ingredient thereof or 2. The place where any industry product was made, compounded, diluted, mixed, blended, assembled, bottled, or packaged or 3. The origin of the bottle or package containing any industry product. "Under this rule the use of any foreign words or phrases, or the use of any other terms, words, symbols or picturizations indicative of foreign origin, which creates a false impression with respect to the origin of any industry product, or of any ingredient thereof, or of the con- tainer in which an industry product is sold or offered for sale, is to be considered as being among the practices which are inhibited by this rule. "Nothing in this rule is to be considered as preventing truthful and nondeceptive repre- sentations as to the country of origin of imported products or any ingredient thereof pro- vided, however, that when the product is composed of several ingredients, one or more of which is of foreign origin or manufacture and the remainder of domestic origin or manufac- ture, the foreign origin representation shall be clearly confined to the particular ingredients qualifying for such foreign origin representation and shall be accompanied in close conjunc- tion with a statement setting forth clearly, conspicuously, and nondeceptively the fact that such product was made, compounded, diluted, mixed, blended, or assembled in the United States, as the case may be." In carrying out the principle of the rule quoted, the Commission recently ordered an advertiser of products manufactured or compounded in this country, in connection with the sale of perfumes, toilet waters, colognes,