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Administrative Law Keyed to Breyer
National Petroleum Refiners Assn. v. Federal Trade Commission
Citation:
482 F.2d 672 (1973)Facts
In 1971, the Federal Trade Commission promulgated a Trade Regulation Rule requiring gasoline retailers to post octane ratings on their pumps. The FTC claimed authority to issue this rule under Section 6(g) of the Federal Trade Commission Act, which empowers the Commission to “make rules and regulations for the purpose of carrying out the provisions” of the Act. The National Petroleum Refiners Association and 34 gasoline refining companies challenged this rule, arguing that the FTC lacked statutory authority to issue substantive rules defining what constitutes an unfair method of competition or unfair or deceptive practice under Section 5 of the Act. They contended that the FTC could only define such practices through case-by-case adjudication as specified in Section 5. The District Court agreed with the plaintiffs, holding that the FTC’s rulemaking authority was limited to procedural matters and did not extend to substantive rules that would have binding effect in subsequent adjudications.
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