NATIONAL PETROLEUM REFINERS ASSOCIATION V. FEDERAL TRADE COMMISSION
482 F.2d 672 (D.C. Cir. 1973), cert. denied, 415 U.S. 951 (1974)
NATURE OF THE CASE: This was a dispute over the FTC's ability to issue rules and
regulations. FTC (D) petitioned from decision which held that D lacked authority to
promulgate substantive rules of business conduct.
FACTS: The issue of whether the FTC (D) could promulgate substantive rules of business
conduct that would give greater specificity and clarity to a broad standard of illegality
with respect to what was meant by unfair methods of competition in commerce, and unfair or
deceptive acts or practices in commerce. Once promulgated the rules would be used by the FTC
in adjudicatory proceedings aimed at producing cease and desist orders against violations of
the statutory standard. The relevant statutes specified that the Commission may from time to
time, make rules and regulations for the purpose of carrying out the provisions of its
mandate. Under these facts, the Commission ruled that the failure to post octane rating
numbers on gasoline pumps at service stations was an unfair method of competition and an
unfair or deceptive act or practice. The National Petroleum Refiners Association (P) opposed
this finding contending that the statute allowing for the creation of rules under Section 6
should not be read to encompass substantive rulemaking in implementation of Section 5
adjudications.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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