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Southwest Sunsites, Inc. v. Federal Trade Commission

United States Court of Appeals for the Ninth Circuit
785 F.2d 1413 (1986)


Facts

The Federal Trade Commission (FTC) (plaintiff) lodged a complaint against Southwest Sunsites, Inc. (defendant) for violations of the Federal Trade Commission Act. The administrative law judge (ALJ) dismissed the complaint. The FTC reversed and issued a cease and desist order. In reaching its decision, the FTC employed a new deception standard, one that imposed a greater burden of proof on the FTC than the one used by the ALJ. Southwest Sunsites appealed the FTC’s finding, arguing that the agency’s application of a new deception standard violated the Administrative Procedures Act (APA).

Rule of Law

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Issue

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Holding and Reasoning (Beezer, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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