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,

ADVERTISING UNDER THE FEDERAL TRADE COMMISSION ACT 185 or any other cosmetic, to cease and desist from disseminating any ad- vertisement which represents, directly or by implication, that any such product was manufactured or compounded in France (7). The same Order prohibited advertising which "Uses any French name or word as a trade or brand name, or as a part thereof, or any name, word, term, or depiction indicative of French origin in connection with any product manufactured or compounded in the United States, unless it is clearly and conspicuously revealed in immediate connection and conjunction therewith that such product was manufactured or compounded in the United States." On the basis of this Rule and this and other Orders of the Commission, the Bureau of Consultation has taken the position that when a disclosure is required it must appear conspicuously and in direct connection with the term suggestive of French origin. This means, for example, that an ex- planation will appear on the front face of a package if any term suggestive •of French origin appears on that face. Any domestic manufacturer or cornpounder of perfume or other cosmetic, who uses language suggesting French origin without explanation of the actual source, can expect to be contacted by the Bureau of Consultation in the near future. The broad authority and the varied activities of the Federal Trade Commission in many instances touch upon those of other Federal Agencies. This is especially true of the Food and Drug Administration, charged with responsibility for the labeling of these products. While Section 12 of the Federal Trade Commission Act excludes labeling from the definition of false and misleading advertising, the jurisdiction of the Commission over false and misleading statements on labels as a violation of Section 5 has not been revoked. In order to correlate more effectively the work of the Commission and the Food and Drug Administration and to prevent overlapping activities and duplication of effort, a working agreement between the agencies was devised. It was agreed that the Federal Trade Commission would exercise sole jurisdiction over advertising and the Food and Drug Administration over labeling, in the absence of express agreement to the contrary. I should like to close my remarks by quoting from a statement by Chair- man Earl W. Kinter before a meeting of the Association of Consulting Chemists and Chemical Engineers, about a month ago. His comments are equally a challenge to this group: "When our attention has been focused on an advertising claim supported by scientific testing we commence our investigation by examining the raw data supporting the laboratory reports. In the course of this examina- tion we employ a set of universal criteria regardless of the nature of the test examined. These are the questions that we ask: