Law Commons^™

State-Action Immunity And Section 5 Of The Ftc Act, Daniel A. Crane, Adam Hester

Michigan Law Review

The state-action immunity doctrine of Parker v. Brown immunizes anticompetitive state regulations from preemption by federal antitrust law so long as the state takes conspicuous ownership of its anticompetitive policy. In its 1943 Parker decision, the Supreme Court justified this doctrine, observing that no evidence of a congressional will to preempt state law appears in the Sherman Act’s legislative history or context. In addition, commentators generally assume that the New Deal court was anxious to avoid re-entangling the federal judiciary in Lochner-style substantive due process analysis. The Supreme Court has observed, without deciding, that the Federal Trade Commission might …

Protecting Personal Information: Achieving A Balance Between User Privacy And Behavioral Targeting, Patrick Myers

University of Michigan Journal of Law Reform

Websites and mobile applications provide immeasurable benefits to both users and companies. These services often collect vast amounts of personal information from the individuals that use them, including sensitive details such as Social Security numbers, credit card information, and physical location. Personal data collection and dissemination leave users vulnerable to various threats that arise from the invasion of their privacy, particularly because users are often ignorant of the existence or extent of these practices. Current privacy law does not provide users with adequate protection from the risks attendant to the collection and dissemination of their personal information. This Note advocates …

The New Road To Serfdom: The Curse Of Bigness And The Failure Of Antitrust, Carl T. Bogus

University of Michigan Journal of Law Reform

This Article argues for a paradigm shift in modern antitrust policy. Rather than being concerned exclusively with consumer welfare, antitrust law should also be concerned with consolidated corporate power. Regulators and courts should consider the social and political, as well as the economic, consequences of corporate mergers. The vision that antitrust must be a key tool for limiting consolidated corporate power has a venerable legacy, extending back to the origins of antitrust law in early seventeenth century England, running throughout American history, and influencing the enactment of U.S. antitrust laws. However, the Chicago School’s view that antitrust law should be …

The Cost Of Confusion: The Paradox Of Trademarked Pharmaceuticals, Hannah Brennan

Michigan Telecommunications & Technology Law Review

The United States spends nearly $1,000 per person annually on drugs—forty percent more than the next highest spender, Canada, and more than twice the amount France and Germany spend. Although myriad factors contribute to high drug spending in the United States, intellectual property law plays a crucial and well-documented role in inhibiting access to cheaper, generic medications. Yet, for the most part, the discussion of the relationship between intellectual property law and drug spending has centered on patent protection. Recently, however, a few researchers have turned their attention to a different avenue of exclusivity—trademark law. New studies suggest that pharmaceutical …

The Institutions Of Antitrust Law: How Structure Shapes Substance, William E. Kovacic

Michigan Law Review

Daniel Crane's The Institutional Structure of Antitrust Enforcement ("Institutional Structure") may do for antitrust law what Essence of Decision did for public administration. Unlike most literature on antitrust law, this superb volume does not address pressing issues of substantive analysis (e.g., when can dominant firms offer loyalty discounts?). Instead, Institutional Structure studies the design and operation of the institutions of U.S. antitrust enforcement. Professor Crane skillfully advances a basic and powerful proposition: to master analytical principles without deep knowledge of the policy implementation mechanism is dangerously incomplete preparation for understanding the U.S. antitrust system, or any body of competition law. …

Antitrust Rulemaking As A Solution To Abuse On The Standard-Setting Process, Adam Speegle

Michigan Law Review

While many recognize the critical role that technology plays in modern life, few appreciate the role that standards play in contributing to its success. Devices as prevalent as the modern laptop computer for example, may be governed by over 500 interoperability standards, regulating everything from the USB drive to the memory chip. To facilitate adoption of such standards, firms are increasingly turning to standard-setting organizations. These organizations consist of members of an industry who agree to abide by the organization's bylaws, which typically regard topics such as patent disclosure and reasonable licensing. Problems arise, however, when members violate these bylaws …

Privacy Policies, Terms Of Service, And Ftc Enforcement: Broadening Unfairness Regulation For A New Era, G. S. Hans

Michigan Telecommunications & Technology Law Review

This Note examines website privacy policies in the context of FTC regulation. The relevant portion of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a), uses the following language to define the scope of the agency's regulatory authority: "Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful." Specifically, this Note analyzes the FTC's power to regulate unfair practices (referred to as the FTC's "unfairness power") granted by Section 5, and also discusses the deception prong of Section 5, which allows the agency to …

Improving Patent Notice And Remedies: A Critique Of The Ftc's 2011 Report, Alan Devlin

Michigan Telecommunications & Technology Law Review

2011 was an eventful year for those interested in patent law. In March, the Federal Trade Commission ("FTC") released a report that urges the Patent and Trademark Office ("PTO") and courts to remedy perceived inadequacies underlying the U.S. patent system. The FTC observes that people of skill in the art routinely encounter difficulty in determining the meaning, and hence exclusive scope, of a patent's claims. Not only does this failure of notice stymie the efficient dispersion of technology throughout the economy, the FTC argues, but the judicial process can aggravate the problem by granting inappropriate remedies in patent-infringement cases. Then, …

A Path Toward User Control Of Online Profiling, Tracy A. Steindel

Michigan Telecommunications & Technology Law Review

Online profiling is "the practice of tracking information about consumers' interests by monitoring their movements online." A primary purpose of online profiling is to "deliver advertising tailored to the individual's interests," a practice known as online behavioral advertising (OBA). In order to accomplish this, publishers and advertisers track a individual's online behavior using cookies and other means. Publishers and advertisers aggregate the information, often compile it with information from offline sources, and sort individuals into groups based on characteristics such as age, income, and hobbies. Advertisers can then purchase access to these consumer groups, controlling their selections with such specificity …

Pharmaceutical Patent Litigation Settlements: Balancing Patent & Antitrust Policy Through Institutional Choice, Timothy A. Cook

Michigan Telecommunications & Technology Law Review

Should a branded pharmaceutical company be allowed to pay a generic competitor to stay out of the market for a drug? Antitrust policy implies that such a deal should be prohibited, but the answer becomes less clear when the transaction is packaged as a patent-litigation settlement. Since Congress passed the Hatch-Waxman Act, which encourages generic manufacturers to challenge pharmaceutical patent validity, settlements of this kind have been on the rise. Congress, the Department of Justice, and the Federal Trade Commission have condemned these agreements as anticompetitive and costly to American consumers, but none of these bodies has been able to …

Are Artificial Tans The New Cigarette? How Plaintiffs Can Use The Lessons Of Tobacco Litigation In Bringing Claims Against The Indoor Tanning Industry, Andrea Y. Loh

Michigan Law Review

Indoor tanning salons have grown significantly in popularity during recent years. Scientific research has revealed a strong link between skin cancer and ultraviolet light exposure from indoor tanning lamps. Despite such dangers, federal regulations place minimal restrictions on the labeling of indoor tanning lamps. Indoor tanning salons work vigorously to dispel notions of a link to skin cancer, often falsely promoting various health benefits of indoor tanning. The first lawsuit for injuries resulting from indoor tanning was recently filed against an indoor tanning salon, and other such litigation is poised to follow. This Note examines three potential tort claims against …

Antitrust Modesty, Daniel A. Crane

Michigan Law Review

Given Hovenkamp's influence and intellect, the publication of The Antitrust Enterprise is a major event, particularly since he sets out, according to the book's jacket, to provide "the first authoritative and compact exposition of antitrust law since Robert Bork's classic The Antitrust Paradox was published more than thirty years ago." Nevertheless, one could quibble with the jacket's claim. Richard Posner substantially updated his own authoritative and compact exposition of antitrust law in 2001. In a 2003 book review, Hovenkamp called Posner's second edition a "marvelous and important book." So, before beginning a review of Hovenkamp's new work, it seems necessary …

Antitrust Enfocement And High-Technology Markets, William J. Baer, David A. Balto

Michigan Telecommunications & Technology Law Review

Although the antitrust laws apply to all industries, the application must be tempered in each case by the myriad ways in which competition can be modified by structural, behavioral, technological, regulatory, and other characteristics. The Commission applies the antitrust laws with sensitivity to the special characteristics of high-tech industries and of intellectual property, but also with the recognition that--as in other industries--competition plays an important role in spurring innovation and in spreading the benefits of that innovation to consumers. This focus is not new. This balanced approach has roots that go back at least to the 1977 Antitrust Guide to …

Fairness And Unfairness In Television Product Advertising, Michigan Law Review

Michigan Law Review

The first section of this Note explores the impact of television product advertising on viewer attitudes. The next two sections set forth the statutory basis on which the Federal Communications Commission and the Federal Trade Commission could provide for the effective presentation of contrasting points of view on controversial issues implicitly or explicitly raised by television product advertising, could ensure that the implicit messages of such advertisements are delivered fairly and without deception, and could counter the adverse effects of such advertising. The purpose of these sections is not to predict actual regulatory behavior, for in fact the FCC and …

The Ftc's Injunctive Authority Against False Advertising Of Food And Drugs, Michigan Law Review

Michigan Law Review

Two judicial decisions in the early 1950s construing the FTC's section 13 (a) power produced a conflict that has not been resolved either by later courts or by the amendments to section 13 enacted in 1973. The dispute basically concerns the depth of the courts' inquiry into whether an advertisement violates- section 12 and the applicability of traditional equitable concepts in the context of the statutory injunction procedure. This Note contends that the legislative history of pertinent provisions of the Act suggests an appropriate resolution of the conflict through a two-step approach that would relax the scrutiny ordinarily accorded petitions …

Abuse Of Trademarks: A Proposal For Ompulsory Licensing, Mara L. Babin

University of Michigan Journal of Law Reform

This article neither deals with the propriety of the Federal Trade Commission's (FTC) proposed order nor evaluates the effectiveness of compulsory trademark licensing as a remedy for unfair trade practices.8 Rather, the pending cereal industry case is used as a point of departure for an examination of the problem of trademark abuse and the responses of the courts, the Congress, and the FTC to it. Acknowledging the legality of compulsory licensing of trademarks, the article suggests legislation which will incorporate licensing and standards for its application. Such legislation would make licensing an accessible remedy for trademark abuse while accommodating both …

Corrective Advertising And The Ftc: No, Virginia, Wonder Bread Doesn't Help Build Strong Bodies Twelve Ways, Michigan Law Review

Michigan Law Review

This Note will outline the development and theory of corrective advertising. In particular, it will discuss the residual effects of deceptive advertising, which are the basis for a corrective remedy. The Commission's statutory authority to require corrective advertising will then be explored: the analysis will compare corrective advertising with other types of affirmative disclosure required by the Commission and relate it to the present use of divestiture as a trade regulation remedy. Finally, the possible public benefit accruing from corrective advertising will be considered, along with some thoughts on what policies the FTC should pursue in order to maximize that …

Souped Up Affirmative Disclosure Orders Of The Federal Trade Commission, William F. Lemke Jr.

University of Michigan Journal of Law Reform

Under section 5(b) of the Federal Trade Commission Act the Commission is given authority to conduct hearings, make findings and issue cease and desist orders requiring any person, partnership or corporation to cease and desist from use of unfair methods of competition or unfair or deceptive practices in commerce. The Commission also issues consent orders in cases which are concluded by agreement between the Commission and the allegedly offending party. Consent orders have the same force and binding effect as those issued after hearings and findings. Although it is well established that the Commission has very broad discretion and authority …

Cox, Fellmeth, Schulz: The Consumer And The Federal Trade Commission, Ernest Gellhorn

Michigan Law Review

A Review of The Consumer and the Federal Trade Commission by Edward Cox, Robert Fellmeth, and John Schulz

Restraint Of Trade--Trading Stamps--The Federal Trade Commission And The Green Stamp: The Effect Upon Competition Of Restrictions On Distribution And Redemption Of Trading Stamps, Michigan Law Review

Michigan Law Review

Sperry and Hutchinson Company (S & H), the largest trading stamp company in the United States, has maintained two policies throughout its seventy-two years of business. The one-for-ten policy requires retailers licensed by S & H to issue stamps to consumers at the rate of one stamp for every ten cents worth of merchandise purchased. The intent of this policy is to prevent retailers from engaging in "multiple stamping"-the practice of giving more than one stamp for every ten-cent purchase. This restricted rate of issuance is maintained through contractual agreements between the stamp company and its licensees. The second policy …

Cease And Desist: The History, Effect, And Scope Of Clayton Act Orders Of The Federal Trade Commission, Thomas E. Kauper

Michigan Law Review

A cease and desist order is not entered in a vacuum. What an order should say or require depends upon the effect which the order is to have. A substantial portion of the present study is therefore concerned with the array of effects which may result from the order's entry, and with the relationship between those effects and the order itself. Not all of the detailed discussion of enforcement procedures which follows may seem directly relevant to the content of the FTC's orders. There are important unresolved issues within the enforcement procedures themselves which warrant examination for their own sake …

The Ftc's Power To Seek Preliminary Injunctions In Anti-Merger Cases, James H. Cohen

Michigan Law Review

This Comment will examine the bases and the implications of the Supreme Court's holding. It will point out a number of problems raised by granting the FTC this remedial power, and will suggest that the situations in which preliminary injunctions may be obtained from a court of appeals should be strictly limited.

Divestiture Of Illegally Held Assets: Observations On Its Scope, Objective, And Limitations, William T. Kerr

Michigan Law Review

"Divestiture has been called the most important of antitrust remedies. It is simple, relatively easy to administer, and sure." This observation was made with reference to an order requiring divestiture of illegally held stock. In the context of the divestiture of illegally held assets, however, the statement is an oversimplification of myriad complex problems. This Comment will examine the difficulties encountered in eliminating the anticompetitive effects of a fully consummated merger found to have violated section 7 of the Clayton Act. No attempt will be made to assess the substantive doctrine upon which the violation in any instance was based, …

Federal Trade Commission Proceedings And Section 5 Of The Clayton Act: Application And Implications, Michigan Law Review

Michigan Law Review

Although the primary responsibility for the enforcement of the antitrust laws falls upon governmental agencies, Congress has recognized the effectiveness of the private suit for damages as a deterrent and has sought to encourage such actions by providing for the recovery of treble damages by an injured party. To assist the private litigant, whose problem of proof is formidable, Congress enacted section 5(a) of the Clayton Act, which allows the introduction, as prima facie evidence of an antitrust violation, of a prior judgment or decree obtained by the Government. As a further aid to private litigants, section 5(b) provides for …

Ftc V. Jantzen: Blessing, Disaster, Or Tempest In A Teapot?, Thomas E. Kauper

Michigan Law Review

The court concluded that the Finality Act, by repealing the existing provisions for judicial enforcement proceedings in the courts of appeals, deprived it of jurisdiction to act upon the FTC's petition. It also approved earlier decisions holding that the Finality Act procedures were not applicable to orders issued prior to the act's effective date. These two rulings, in combination, indicate that there is no enforcement machinery now applicable to orders issued under the Clayton Act prior to July 23, 1959.

The question remains, however, whether enforcement of the Clayton Act has really been hampered, and, if so, whether the pre- …

Words "Civil Or Criminal" In Clayton Act Section 5 Do Not Include Federal Trade Commission Proceedings-Highland Supply Corp. V. Reynolds Metals Co., Michigan Law Review

Michigan Law Review

In a private antitrust action for treble damages filed in 1963, plaintiff referred in its complaint to a Federal Trade Commission proceeding brought against the defendant in 1957, which had resulted in a final divestiture order. Defendant moved to strike these references in the complaint on the ground that section 5(a) of the Clayton Act, which authorizes private parties to utilize a government "judgment or decree . . . rendered in any civil or criminal proceeding" as prima facie evidence in subsequent treble damage suits, does not include a Federal Trade Commission proceeding. Defendant also moved to dismiss the …

Rowe: Price Discrimination Under The Robinson-Patman Act, Glen E. Weston

Michigan Law Review

A Review of Price Discrimination Under the Robinson-Patman Act, By Frederick M. Rowe.

Federal Trade Commission-Adjudicatory Proceedings-Receipt Of Evidence In Camera, Peter W. Williamson

Michigan Law Review

During an adjudicatory hearing pursuant to a complaint filed by the Federal Trade Commission, counsel for the Commission offered as evidence some confidential documents subpoenaed from respondent. The hearing examiner, on his own motion, ordered all confidential documents placed in camera. Counsel for the FTC objected to the order and filed an interlocutory appeal to the Commission. On the interlocutory appeal, held, error in part. Because these documents do not contain highly secret business information they must appear on the public transcript, unless tendered to the Commission and obtained subject to an express stipulation that, if offered in …

Removal Of Judicial Functions From Federal Trade Commission To A Trade Court: A Reply To Mr. Kintner, Raoul Berger

Michigan Law Review

Not long ago, Attorney General Rogers stated that, "The entire field of administrative law and of Government regulation may require a searching re-examination of some of the premises on which we have based our conclusions." What lifts this utterance to the level of "man bites dog" is that the Attorney General almost alone among federal administrators does not insist that the administrative process, in major outline, is forever frozen. The orthodox administrative view is exemplified by Mr. Earl W. Kintner's (formerly General Counsel and now Chairman of the Federal Trade Commission) numerous strictures upon the American Bar Association proposal that …

Regulation Of Business-Discriminatory Practices In The Form Of Advertising Allowances, Services, And Facilities Under The Robinson-Patman Act, Rinaldo L. Bianchi

Michigan Law Review

This comment will deal solely with the last two forms of discrimination prohibited by sections 2(d) and (e) of the Robinson-Patman Act, and will attempt to illustrate the present state of the law and offer a possible alternative construction and method of implementation of these sections. A recent ruling of the FTC in a group of cases appears to be significant with respect to controversial aspects of sections 2(d) and (e), and indicative of the present attitude of the Commission in the search for an adequate standard by which honest businessmen may keep within the confines of the law. These …