Respondent, a retail druggist in Columbus, Georgia, was charged in two counts of an information with a violation of § 301(k) of the Federal Food, Drug, and Cosmetic Act of 1938. That section prohibits 'the doing of any * * * act with respect to, a * * * drug * * * if such act is done while such article is held for sale after shipment in interstate commerce and results in such article being misbranded.' Section 502(f) of the Act declares a drug 'to be misbranded * * * unless its labeling bears (1) adequate directions for use; and (2) such adequate warnings against use * * * dangerous to health, or against unsafe dosage * * * as are necessary for the protection of users.' The information charged specifically that the respondent had performed certain acts which resulted in sulfathiazole being 'misbranded' while 'held for sale after shipment in interstate commerce.'
The facts alleged were these: A laboratory had shipped in interstate commerce from Chicago, Illinois, to a consignee at Atlanta, Georgia, a number of bottles, each containing 1,000 sulfathiazole tablets. These bottles had labels affixed to them, which, as required by § 502(f)(1) and (2) of the Act, set out adequate directions for the use of the tablets and adequate warnings to protect ultimt e consumers from dangers incident to this use. Respondent bought one of these properly labeled bottles of sulfathiazole tablets from the Atlanta consignee, transferred it to his Columbus, Georgia, drugstore, and there held the tablets for resale. On two separate occasions twelve tablets were removed from the properly labeled and branded bottle, placed in pill boxes, and sold to customers. These boxes were labeled 'sulfathiazole.' They did not contain the statutorily required adequate directions for use or warnings of danger.
Respondent's motion to dismiss the information was overruled, a jury was waived, evidence was heard, and respondent was convicted under both counts. D.C., 67 F.Supp. 192.
The Circuit Court of Appeals reversed. 161 F.2d 629, 630. The court thought that as a result of respondent's action the sulfathiazole became 'misbranded' within the meaning of the Federal Act, and that in its 'broadest possible sense' the Act's language 'may include what happened.' However, it was also of the opinion that the Act ought not to be taken so broadly 'but held to apply only to the holding for the first sale by the importer after interstate shipment.' Thus the Circuit Court of Appeals interpreted the statutory language of § 301(k) 'while such article is held for sale after shipment in interstate commerce' as though Congress had said 'while such article is held for sale by a person who had himself received it by way of a shipment in interstate commerce.' We granted certiorari to review this important question concerning the Act's coverage.