Scams are everywhere these days, but they aren’t new. Unscrupulous people have been selling fake products for centuries. These fraudsters are often called “snake oil salesmen.” Smithsonian Magazine published an article recently that explains why. Here’s a summary:
The term dates back to the 1890s when a man named Clark Stanley started selling bottles of oil extracted from one of America’s most feared creatures – the rattlesnake. He claimed the oil had the power to cure almost any ailment. People believed him. Scientific testing was in its infancy, so there was no reliable way to prove or disprove Stanley’s claims.
Stanley (and others) sold snake oil as a miracle cure for decades until Congress passed the Pure Food and Drug Act in 1906. The law required manufacturers to say what their products were actually made of. Labs tested products to verify that what was on the label and what was in the bottle matched.
Unfortunately for Stanley, his didn’t.
What he called snake oil turned out to be a mix of mineral oil, capsaicin, and turpentine. Ick.
Ironically, Stanley’s original liniment was made from real rattlesnake oil. He changed the formula to increase profits when the process of extracting oil at scale proved “too expensive.” Being dishonest ended up costing him more in the long run. He closed up shop in 1917 and was never heard from again.
Two sayings come to mind with this story:
1) Caveat Emptor (buyer beware). There will always be unscrupulous people in the world. Thankfully, we have more tools than ever to make sure we deal with legitimate business.
2) Penny wise, pound foolish. Cut corners or do questionable things (e.g., shrinkflation) to boost profits and you may end up paying a much bigger price.
