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Administrative Law Keyed to Schwartz
FTC v. American Tobacco Co.
Citation:
264 U.S. 298 (1924)Facts
The Federal Trade Commission initiated an investigation of American Tobacco Company and P. Lorillard Company, ostensibly based on complaints of unfair competition regarding price regulation and in response to a Senate resolution directing the FTC to investigate the tobacco industry. The FTC sought access to extensive business records, including all correspondence with jobber customers, salesmen, tobacco associations, and other corporations over a one-year period. The companies refused to comply with this broad request, arguing it constituted an unreasonable search. The FTC then petitioned for writs of mandamus to compel production of these documents, claiming statutory authority under the Federal Trade Commission Act to access all company records for investigative purposes. The FTC’s demands included records related to both interstate and intrastate commerce without demonstrating their relevance to any specific violation.
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