Federal Trade Commission v. Procter & Gamble Co.
United States Supreme Court
386 U.S. 568 (1967)
In 1957, Proctor & Gamble Company (P&G) (defendant) acquired Clorox Chemical Company (Clorox) in a merger. Prior to the merger, Clorox was the leading manufacturer of household liquid bleach. Clorox enjoyed a 48.8 percent share of national sales and possessed a near-monopoly position in several regions of the United States. In the year before the merger, Clorox spent approximately $5,400,000 to advertise and promote its product. P&G was the leading manufacturer of various cleaning products, including laundry detergent. In the year before the merger, P&G spent $127,000,000 on advertising and promotion for its products and was attempting to branch out from its existing product lines into complementary products. Due to the enormous volume of its advertising, P&G received discounts and enjoyed various advantages resulting from its ability to subsidize advertising costs for new products with profits from existing products. The Federal Trade Commission (FTC) (plaintiff) believed the merger between P&G and Clorox was unlawful under antitrust law and ordered that the merger be revoked. The court of appeals reversed, and the FTC appealed.
Rule of Law
Holding and Reasoning (Douglas, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.