The Colgate-Palmolive Co. (Colgate) manufactured and sold a shaving cream called Rapid Shave. Colgate hired Ted bates & Company (Bates), an advertising agency, to prepare television commercials designed to show that Rapid Shave could shave the toughest beards. With Colgate's consent, Bates prepared a television commercial that included the sandpaper test. The announcer informed the audience, "to prove Rapid Shave's super-moisturizing power, we put it right from the can onto this tough, dry sandpaper, And off in a stroke.
While the announcer was speaking, Rapid Shave was applied to a substance that appeared to be sandpaper , and immediately a razor was shown shaving the substance clean. Evidence showed that the substance resembling sandpaper was in face a simulated prop, or "mock-up" made of Plexiglas to which sand had been glued. The Federal Trade Commission (FTC) issued a complaint against Colgate and Bates, alleging a violation of Section 5 of the Federal Trade Commission Act.
Have the defendants engaged in false and disrespective advertising, in violation of Section 5 of the FTC Act?