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State or Territory, or political subdivision thereof, presents evidence satisfactory to the United States attorney of any such violation, to cause appropriate proceedings to be instituted in the proper courts of the United States without delay. All suits instituted under this Act shall be by and in the name of the United States. (c) The Secretary shall, before reporting any violation of this Act to the United States Attorney for institution of criminal proceedings thereunder, afford due notice and opportunity for hearing to interested parties in accordance with such regulations as the Secretary shall prescribe. The report of the Secretary to the United States Attorney for the institution of criminal proceedings under this Act shall be accompanied by findings of the appropriate officers and employees duly authenticated under their oaths.

SEIZURE

SEC. 16. (a) Any article of food, drug, or cosmetic in interest commerce that is adulterated or misbranded or that has been manufactured, processed, or packed in a factory or establishment, the operator of which did not, at the time of manufacture, processing, or packing, hold a valid permit if so required by regulations under section 12, shall be liable to be proceeded against while in interstate commerce or at any time thereafter on libel of information and condemned in any district court of the United States within the jurisdiction of which the article is found. The article shall be liable to seizure (1) by process pursuant to the libel, or (2) if a chief of station or other officer of the Food and Drug Administration, duly designated by the Secretary, has probable cause to believe that the article is so adulterated as to be imminently dangerous to health, then by order of such officer, issued under his oath of office, particularly describing the article to be seized, the place where located, and the officer or employee to make the seizure. In case of seizure pursuant to any such order, the jurisdiction of the court shall attach upon such seizure. Any article seized pursuant to any such order shall thereupon be promptly placed in the custody of the court and a libel of information shall be promptly filed for condemnation thereof.

(b) If recovery is had in any suit or proceeding against any officer or employee by reason of a seizure pursuant to any such order, and the court certifies that there is probable cause for the acts done by such officer or employee, or that he acted under the direction of the Secretary or a duly designated officer of the Food and Drug Administration, no execution shall issue against such officer or employee, but the amount so recovered shall, upon final judgment, be provided for and paid out of appropriations for the administration of this Act.

(c) The court may, by order at any time before trial, allow any party to a condemnation proceeding to obtain a representative sample of the article seized.

(d) Any article of food, drug, or cosmetic condemned under this section shall, after entry of the decree, be disposed of by destruction or sale as the court may in accordance with the provisions of this section, direct and the proceeds thereof, if sold, less the legal costs and charges, shall be paid into the Treasury of the United States; but such article shall not be sold under such decree contrary to the provisions of this Act or the laws of the jurisdiction in which sold: Provided, That after entry of the decree and upon the payment of the costs of such proceedings and the execution of a good and sufficient bond conditioned that such article of food, drug, or cosmetic shall not be sold or disposed of contrary to the provisions of this Act or the laws of any State or Territory, the court may by order direct that such article be delivered to the owner thereof to be destroyed or brought into compliance with the provisions of this Act under the supervision of an officer or employee duly designated by the Secretary, and the expenses of such supervision shall be paid by the party obtaining release of the article under bond. Any article condemned by reason of the manufacturer, processor, or packer not holding a valid permit when so required by regulations under section 12 shall be disposed of by destruction.

(e) The proceedings in cases under this section shall conform, as nearly as may be, to the proceedings in admiralty; except that either party may demand trial by jury of any issue of fact joined in any such case.

(f) When a decree of condemnation is entered against the article, court costs and fees, and storage and other proper expenses, shall be awarded against the person, if any intervening as claimant of the article.

PENALTIES

SEC. 17. (a) The following Acts are hereby prohibited:

(1) The introduction into interstate commerce of any food, drug, or cosmetic that is adulterated or misbranded.

(2) The receipt in interstate commerce of any food, drug, or cosmetic that is adulterated or misbranded and the delivery or proffered delivery thereof in the original unbroken package for pay or otherwise.

(3) The dissemination of any false advertisement by radio broadcast, United States mails, or in interstate commerce for the purpose of inducing, directly or indirectly, the purchase of food, drugs, or cosmetics.

(4) The dissemination of a fasle advertisement by any means for the purpose of inducing, directly or indirectly, the sale of food, drugs, or cosmetics in interstate

commerce.

(5) The introduction into interstate commerce of any food, drug, or cosmetic if the manufacturer, processor, or packer does not hold a valid permit when so required by regulations under section 12.

(6) The refusal to permit access to or copying of any record as required by section 14.

(b) Any person who violates or causes to be violated any of the provisions of paragraph (a) of this section shall be guilty of a misdemeanor and shall on conviction thereof be subject to imprisonment for not more than one year, or a fine of not less than $100 nor more than $1,000, or both such imprisonment and fine; and for a second or subsequent offense imprisonment for not more than two years, or a fine of not less than $500 nor more than $3,000, or both such imprisonment and fine.

(c) Notwithstanding the provisions of paragraph (b) of this section, in case of a willful offense the penalty shall be imprisonment for not less than six months nor more than three years, or a fine of not less than $1,000 nor more than $10,000 or both such imprisonment and fine.

(d) No person acting in the capacity of publisher, advertising agency, or radiobroadcast licensee shall be prosecuted under paragraphs (b) or (c) of this section for disseminating a false advertisement if, on request of an officer or employee duly designated by the Secretary, he furnishes the name and post-office address of the person who contracted for or caused him to disseminate such advertisement. (e) No dealer shall be prosecuted under paragraph (b) of this section if he establishes a guaranty or undertaking signed by the person residing in the United States from whom he received the article of food, drug, or cosmetic, or the advertising copy therefor, to the effect that such person assumes full responsibility for any violation of this Act, designating it, which may be incurred by the introduction of such article into interstate commerce or by the dissemination of such advertising. To afford protection, such guaranty or undertaking shall contain the name and address of the person furnishing such guaranty or undertaking, and such person shall be amenable to the prosecution and penalties which would attach in due course to the dealer under the provisions of this Act.

(f) Any person who forges, counterfeits, simulates, or falsely represents, or without proper authority uses any mark, stamp, tag, label, or other identification devices authorized by the provisions of sections 12 and 22 of this Act or regulation thereunder, shall be guilty of a misdemeanor, and shall, on conviction thereof be subject to imprisonment for not more than one year, or a fine of not less than $1,000 nor more than $5,000, or both such imprisonment and fine.

LIABILITY OF CORPORATE OFFICERS

SEC. 18. (a) When construing and enforcing the provisions of this Act, the act, omission, or failure of any officer, employee, or agent acting for or employed by any person, within the scope of his employment or office, shall in every case be deemed to be the act, omission, or failure of such person, as well as that of the officer, employee, or agent.

(b) Whenever a corporation or association violates any of the provisions of this Act, such violation shall also be deemed to be a violation of the individual directors, officers, or agents of such corporation or association who authorized, ordered, or did any of the acts constituting, in whole or in part, such violation.

INJUNCTION PROCEEDINGS

SEC. 19. (a) The repetitious introduction into interstate commerce of any adulterated or misbranded food, drug, or cosmetic, or the repetitious dissemination by radio broadcast or United States mail or in interstate commerce of false advertising of any food, drug, or cosmetic, by any person, is hereby declared to be a public nuisance. In order to avoid multiplicity of criminal proceedings with respect to such person or libel for condemnation proceedings with respect to the

food, drug, or cosmetic, the district courts of the United States are hereby vested with jurisdiction to restrain by injunction, temporary or permanent, any person from continuing any such nuisance. In such injunction proceedings it shall not be necessary to show on the part of such person an intent to continue such nuisance.

(b) Violation of any such injunction may be summarily tried and punished by the court as a contempt. Such contempt proceedings may be instituted by order of the court or by the filing of an information by the United States attorney; and process of the court for the arrest of the violator may be served at any place in the United States or subject to its jurisdiction.

IMPORTS

SEC. 20 (a) The Secretary of the Treasury shall deliver to the Secretary of Agriculture upon his request, from time to time, samples of food, drugs, and cosmetics which are being imported or offered for import into the United States, giving notice thereof to the owner or consignee who may appear before the Secretary of Agriculture and have the right to introduce testimony. If it appears from the examination of such samples or otherwise that (1) any false advertisement of such food, drug, or cosmetic has been disseminated in the United States within three months prior to the date such article is offered for import, or (2) such article has been manufactured, processed, or packed under unsanitary conditions, or (3) such article is adulterated or misbranded within the meaning of this act, then such article shall be refused admission.

(b) The Secretary of the Treasury shall refuse delivery to the consignee and shall cause the destruction of any such article refused admission, unless such article is exported by the consignee within three months from the date of notice of such refusal, under such regulations as the Secretary of the Treasury may prescribe: Provided, That the Secretary of the Treasury may deliver to the consignee any such article pending examination and decision in the matter on execution of a bond as liquidated damages for the amount of the full invoice value thereof together with the duty thereon, and on refusal to return such article or any part thereof for any cause to the custody of the Secretary of the Treasury when demanded for the purpose of excluding it from the country or for any other purpose said consignee shall forfeit the full amount of the bond as liquidated damages. (c) All charges for storage, cartage, and labor on any article which is refused admission or delivery shall be paid by the owner or consignee and in default of such payment shall constitute a lien against any future importations made by such owner or consignee.

PUBLICITY

SEC. 21. The Secretary shall cause to be published periodically a report summarizing all judgments, decrees, and orders which have been rendered, and all proceedings instituted and seizures made, including the nature of the charge and the disposition thereof. The Secretary shall cause to be disseminated such information regarding any food, drug, or cosmetic as he deems necessary in the interests of public health and for the protection of the consumer against fraud.

VOLUNTARY INSPECTION SERVICE

SEC. 22. The Secretary, upon application of any manufacturer or packer of any food, drug, or cosmetic sold in interstate commerce, may at his discretion, designate supervisory inspectors to examine and inspect all premises, equipment, methods, materials, containers, and labels used by such applicant in the production of food, drugs, or cosmetics. If upon such examination the food, drug, or cosmetic is found to conform to the requirements of this Act, the applicant may be authorized, in accordance with regulations prescribed by the Secretary, to mark the food, drug, or cosmetic so as to indicate such conformity and such other facts relating to the identity or quality of the food, drug, or cosmetic as the regulations may provide. Services to any applicant under this section shall be rendered only upon the payment of fees to be fixed by regulations of the Secretary in such amount as to cover the cost of the supervisory inspection and examination, together with the reasonable costs of administration (including costs of establishing under section 11 additional definitions and standards for the purposes of this section) incurred by the Secretary in carrying out this section Receipts from such fees shall be covered into the Treasury and shall be available to the Secretary for expenditures incurred in carrying out this section.

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SEC. 23. (a) The Secretary of Agriculture is authorized to prescribe such regulations as he may deem necessary for the efficient enforcement of the functions vested in him by the provisions of this Act) other than the provisions of sec. 20), including regulations with the force and effect of law as to notice and conduct of hearings by the Secretary. The Secretary of the Treasury and the Secretary of Agriculture shall jointly prescribe such regulations as they may deem necessary for the efficient enforcement of the provisions of Section 20. Regulations prescribed under this Act shall be promulgated in such manner and take effect at such time as the Secretary of Agriculture (and, in appropriate cases, the Secretary of the Treasury) shall determine.

(b) For the efficient administration of the provisions of this Act, the provisions, including penalties, of sections 9 and 10 of the Federal Trade Commission Act, approved September 26, 1914 (U.S.C., title 49, secs. 49 and 50), are made applicable to the jurisdiction, powers, and duties of the Secretary under this Act and to any person subject to the provisions of this Act, whether or not a corporation.

(c) Hearings authorized or required by this Act shall be conducted by the Secretary or such officer or employee as he may designate for the purpose. The findings of fact by the Secretary shall be conclusive if in accordance with law.

LIABILITY FOR PERSONAL INJURIES

SEC. 24. A right of action for damages shall accrue to any person for injury or death proximately caused by a violation of this Act.

SEPARABILITY CLAUSE

SEC. 25. If any provision of this Act is declared unconstitutional, or the applicability thereof to any person or circumstances is held invalid, the constitutionality of the remainder of the Act and the applicability thereof to other persons and circumstances shall not be affected thereby.

EFFECTIVE DATE AND REPEALS

SEC. 26. (a) This Act shall take effect six months after the date of approval. The Federal Food and Drugs Act of June 30, 1906, as amended (U.S.C., title 21, secs. 1-15), shall remain in force until such effective date, and is hereby repealed effective upon such date: Provided, That upon the approval of this Act and before its effective date the Secretary is authorized to conduct hearings and to promulgate regulations, definitions, and standards under the provisions hereof which shall become effective on or after the effective date of this Act as the Secretary shall direct.

(b) The provisions of this Act shall not be held to modify or repeal but shall be held in addition to the provisions of the following Acts, as amended: The Tea Import Act, approved March 2, 1897 (U.S.C., title 21, secs. 41-50); the Virus Act, approved March 4, 1913 (U.S.C., title 21, secs. 151-158); the United States Grain Standards Act, approved August 11, 1916 (U.S.C., title 7, secs. 70-87); the Insecticide Act, approved April 26, 1910 (U.S.C., title 7, secs. 121-134); the Import Milk Act, approved February 13, 1927 (U.S.C., title 21, secs. 141-149); the Caustic Poison Act, approved March 4, 1927 (U.S.C., title 15, secs. 401-511); the Virus, Serum, Toxin, and Antitoxin Act, approved July 1, 1902 (U.S.C., title 42, secs. 141-148).

We wish first to call upon the Secretary of Agriculture, Mr. Wallace, who will present the views of the Department of Agriculture which has in charge the particular work of the Food and Drugs Bureau. Mr. Wallace, we shall be glad to hear from you.

STATEMENT OF HON. HENRY A. WALLACE, SECRETARY OF AGRICULTURE

Mr. WALLACE. I regret that owing to an engagement made several weeks ago, before I knew of this hearing, I must be across town by 11 o'clock, which will necessitate my reading this prepared statement rather rapidly and making my informal remarks very short.

The Department of Agriculture officially endorses the bill, S. 1944, which you are considering. I personally give approval.

I must say candidly that I am not prepared to discuss its detailed provisions. I shall leave that responsibility to officials of the Food and Drug Administration.

My own time has been taken up so exclusively with emergency matters in the field of agricultural and national recovery that I have not had an opportunity to give this measure the degree of study and active support it deserves. I am none the less interested in its broad purposes. I have kept constantly in touch with it through the Assistant Secretary and the Solicitor of the Department. Along with these officials, I wish to express my unqualified approval of the public-spirited work that has been done for years by Mr. Walter G. Campbell, Chief of the Food and Drug Administration, and by his associates, and that has resulted in the bill you are now considering. You no doubt know that Mr. Campbell and many of his associates have been engaged in guarding the food and drug supply of this country almost since Federal regulation started in 1906. They have written into this revision the needs that have become apparent during that time. There is nothing new or startling about most of the changes. Most of them have been recommended time and again by responsible officials charged with the duty of protecting the public health.

The Food and Drugs Act of 1906 was something of an innovation in Federal legislation. It was bitterly opposed at the time by many interests which subsequently became some of its strongest supporters. The 1906 law, as far as it goes, has been effective in controlling adulterated and misbranded foods and drugs; it has served to correct many of the abuses that existed at the time of its enactment. But presentday conditions in the food and drug businesses are very different from what they were more than a quarter of a century ago.

There is a greatly increased traffic in foods and drugs today as compared to 1906. The cosmetic industry has become of first importance, whereas when the present law was written the cosmetic industry was in its infancy. The effectiveness with which a worthless or dangerous product can be sold today through modern advertising methods was not an acute problem in 1906. New narcotic and habit-forming drugs have appeared on the market. Totally new food constituents and important nutrition elements like the vitamins have been discovered.

These developments call for new methods of control. Then, too, during the past 27 years of enforcement, officials have had driven home to them many weaknesses and loopholes in the present law. For example, the necessity of the Government's proving that a drug product is both falsely and fraudulently represented has proved a great hindrance to effective enforcement.

I doubt that anyone will wish to appear before this committee in defense of the many abuses which cannot be remedied under existing legislation; there is too much grim evidence of the tragic effects that almost daily result from the Government's inability to prevent the shipment and sale of dangerous and worthless products. The Department will place some of this evidence before you, because only through a clear recognition of the abuses can we secure the right kind of remedial legislation.

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