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The FTC's Public Interest Requirement: An Anomoly in Consumer Protection *
Author(s) -
SEELEY JAMES J.
Publication year - 1972
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1972.tb00496.x
Subject(s) - commission , jurisdiction , public interest , action (physics) , business , consumer protection , law and economics , class action , law , administration (probate law) , political science , public administration , economics , state (computer science) , computer science , physics , algorithm , quantum mechanics
Proposals for consumer class actions and individual law suits have been considered by Congress during its last two sessions. Both bills sponsored by the administration condition recovery by the consumer upon successful completion of action by the FTC. FTC action, under these proposals, would be an absolute prerequisite to private recovery. Since private recovery is made to depend upon FTC action, the jurisdiction of the Federal Trade Commission becomes critical in determining whether or not a consumer will be entitled to relief. The “Public Interest Requirement” has long been viewed by the courts as a limitation upon Commission Jurisdiction. Thus, if the administration proposals are adopted, that requirement will have to be satisfied before individual consumer recovery will be available. This article seeks to identify the elements of the public interest requirement. Both judicial opinions and the Commission's criteria are considered and evaluated.