National Petroleum Refiners Assn. v. Federal Trade Commission case brief

National Petroleum Refiners Assn. v. Federal Trade Commission case brief summary
482 F.2d 672 (D.C. Cir. 1973), cert. denied, 415 U.S. 951 (1974)

CASE SYNOPSIS

Appellants petitioned from decision of the United States District Court for the District of Columbia, which held that the Federal Trade Commission lacked authority under the Trade Commission Act, 15 U.S.C.S. § 41 et seq. , to promulgate substantive rules of business conduct.

CASE FACTS
Appellants petitioned from decision of lower court, which held that Federal Trade Commission (FTC) lacked authority under Trade Commission Act (Act), 15 U.S.C.S. § 41 et seq., to promulgate substantive rules of business conduct. Appellees contended that FTC's substantive rule-making power should be less readily implied from general grant of rule-making authority.

DISCUSSION

• On appeal, the court held that it disagreed with lower court, as its result would render the FTC ineffective to do the job assigned it by Congress. 
• The court relied on the plain language of § 6(g) of Act, 15 U.S.C.S. § 46(g), which gave the FTC authority to make rules and regulations for purposes of carrying out provisions of § 5 of the Act, 15 U.S.C.S. § 45. 
• The court held that under the § 6(g), the FTC was authorized to promulgate rules defining the meaning of the statutory standards of the illegality the FTC was empowered to prevent.

OUTCOME

The court reversed the judgment remanded for further proceedings, on the ground that the lower court's opinion would render the Federal Trade Commission ineffective to do the job assigned it by Congress, and such a result was not required by the legislative history of the Trade Commission Act.

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