FTC v. Raladam Co.
Annotate this Case
283 U.S. 643 (1931)
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U.S. Supreme Court
FTC v. Raladam Co., 283 U.S. 643 (1931)
Federal Trade Commission v. Raladam Co.
Argued April 24, 1931
Decided May 25, 1931
283 U.S. 643
1. The Federal Trade Commission ordered the respondent to cease from representing his "obesity cure" as a scientific method of treating obesity, or as being the result of scientific research, or the formula as a scientific one, and from representing the preparation as a remedy for obesity, unless accompanied by the statement that it could not be taken safely except under medical direction. There were findings, supported by evidence, warranting the conclusion that the preparation could not be used generally without danger to health, except under medical advice. Held beyond the jurisdiction of the Commission. P. 283 U. S. 646.
2. A method, to come within the jurisdiction of the Commission, must not only be unfair and such that a proceeding for its prevention appears to be in the public interest, but it must also be a method of competition in commerce. The Commission has no jurisdiction where no substantial competition, present or potential, is shown by proof or appears by necessary inference to have been injured or to be clearly threatened with injury to a substantial extent by the use of the unfair methods complained of. Pp. 283 U. S. 646, 283 U. S. 648.
3. While it is at least generally true that statements made by members of Congress in debate cannot be used as aids to the construction of a statute, yet the fact that, throughout the consideration of legislation, there was common agreement in the debate as to its purpose may properly be taken into consideration in determining what that purpose was and what were the evils sought to be remedied. P. 283 U. S. 650.
4. If as a result of an inquiry by the Federal Trade Commission, it turns out that the preliminary assumption of competition upon which the order was based was without foundation, jurisdiction to make a desist order fails, and the proceeding must be dismissed by the Commission. P. 283 U. S. 654.
42 F.2d 430 affirmed.
Certiorari, 282 U.S. 829, to review a decree reversing an order of the Federal Trade Commission.