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National Petroleum Refiners Assn. v. Federal Trade Commission Case Brief Summary | Case Explained

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National Petroleum Refiners Assn. v. Federal Trade Commission | 482 F.2d 672 (1973)

People often complain that the government makes too many rules. But under what circumstances does a federal agency have the power to make a rule? National Petroleum Refiners Association versus Federal Trade Commission offers an answer to this potentially explosive issue.

Under section 5 of the Federal Trade Commission Act, enacted in 1914, the Federal Trade Commission, or the FTC, is empowered to prevent unfair competition by means of a hearing and potential cease-and-desist order. Section 6(g) of that act empowers the FTC to issue rules and regulations to implement section 5. In the early 1970s, the FTC made a rule that stated that not posting octane ratings on gasoline pumps was an unfair method of competition.

The National Petroleum Refiners Association sued the FTC in federal district court, arguing that the FTC only had adjudicatory powers and could only make procedural rules for those adjudications. The district court ruled in the association’s favor. The FTC appealed to the United States Court of Appeals for the District of Columbia Circuit.

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