Cinderella Career and Finishing Schools, Inc. v. Federal Trade Commission case brief

Cinderella Career and Finishing Schools, Inc. v. Federal Trade Commission case brief summary
425 F.2d 583 (D.C. Cir. 1970)

CASE SYNOPSIS

Petitioners sought review of an order from respondent Federal Trade Commission that required petitioners to cease and desist from engaging in certain advertising and recruitment practices that were held to be unfair and deceptive under § 5 of the Federal Trade Commission Act, 15 U.S.C.S. § 45.

CASE FACTS
Respondent, the Federal Trade Commission, charged petitioners, a finishing school and its operators, with making representations and advertising in a manner which were false, misleading, and deceptive in violation of § 5 of the Federal Trade Commission Act, 15 U.S.C.S. § 45. A hearing examiner held hearings and determined the charges should be dismissed. Respondent reversed as to several of the charges and ordered petitioners to cease and desist the allegedly unfair conduct. Petitioners sought further review.

DISCUSSION

• The court held that respondent was not authorized to ignore the evidence amassed during the hearings and decide the case de novo. 
• The court further held that a commissioner's refusal to recuse himself was a denial of due process where he had made a public statement that indicated that he had already reached a decision in the case. 
• The order was vacated and the case was remanded.

OUTCOME

The court vacated order requiring petitioners to cease and desist from engaging in certain practices that were allegedly unfair and deceptive under Federal Trade Commission Act and remanded case where respondent ignored evidence and decided case de novo and where commissioner's refusal to recuse himself was denial of due process.

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