# Opposition — Brown & Williamson Tobacco Corp. v. Federal Trade Commission

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_0965%3A2

## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition
- **Published:** January 1, 1984
- **Citation:** 465 U.S. 1100

## Text

Office - Supreme Court, U.S
FILED

FE@ 22 104

ALEXANDER L. STEVAS

No. 83-1010

In the Supreme Court of the Hnited States

OCTOBER TERM, 1983

Brow’ & WILLIAMSON TOBACCO CORPORATION,
PETITIONER

v.

FEDERAL TRADE COMMISSION

ON PETITION FOR A WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF APPEALS FOR
THE SIXTH CIRCUIT

BRIEF FOR THE FEDERAL TRADE COMMISSION
IN OPPOSITION

Rex E. Lee
Solicitor General
Department of Justice
Washington, D.C. 20530
202) 633-2217

JOHN H. CARLEY
General Counsel

Jerotp D. CUMMINS
Deputy Assistant General Counsel

Federal Trade Commission
Washington, D.C. 20580

QUESTION PRESENTED

Whether, in an action for jnjunctive relief in which
further fact-finding is not necessary to resolve the issues, a
court of appeals may finally determine the merits of the
action on review of the district court's judgment denying a
preliminary injunction and dismissing the complaint on
jurisdictional grounds.

(1)

TABLE OF CONTENTS

Page
se ce eek abenle eke nehe s saéneenwe ne l
i Un tana eae ke beres och eeeeetenese un l
Statutory provisions involved ....... cece eee eens 2
ee aS Ae ceweah 66 im 050.04 UBER, FRU 0c escccesinuauns 5, 11, 12

VI

Statutes—Continued:

Federal Trade Commission Act, § 5,

1S U.S.C. cccccccceccccsccccesseees
2B U.S.C. 2106 wn ccccccccccccccccceccces

Miscellaneous:
48 Fed. Reg. (1983):

9 Moore, Ward & Lucas, Moore's Federal

Braction (26 66. TGS). cccccccscccccess

16 Wright, Miller, Cooper & Gressman,
Federal Practice and Procedure

CIDTT) .cccccccccccccecccccccsceccesss

Jn the Supreme Court of the Hnited States

OCTOBER TERM, 1983

No. 83-1010

BROWN & WILLIAMSON TOBACCO CORPORATION,
PETITIONER

Vv.

FEDERAL TRADE COMMISSION

ON PETITION FOR A WRIT OF CERTIORARI TO
THE UNITED STATES COURT OF APPEALS FOR
THE SIXTH CIRCUIT

BRIEF FOR THE FF DERAL TRADE COMMISSION
I) OPPOSITION

OPINIONS BELOW
The opinion of the court of appeals (Pet. App. B1-B28) is
reported at 710 F.2d 1165. The order of the court of appeals
denying petitioner's request for rehearing (Pet. App. D!-
D3) is reported at 717 F.2d 963. The opinion of the district
court (Pet. App. C1-C6) is not reported.

JURISDICTION
The judgment of the court of appeals was entered on June
24, 1983. A petition for rehearing was denied on September
19, 1983 (Pet. App. DI-D3). The petition for a writ of
certiorari was filed on December 16, 1983. The jurisdiction
of this Court is invoked under 28 U.S.C. 1254(1).

(1)

2

STATUTORY PROVISIONS INVOLVED

Pertinent provisions of the Administrative Procedure
Act, 5 U.S.C. 551 et seg. are set forth at Pet. App. E1-E6.

STATEMENT

1. Since 1967, the Federal Trade Commission has con-
ducted a testing program to analyze and report the tar and
nicotine yield of the various brands of cigarettes sold in the
United States, The tests, which utilize a smoking machine,
are designed to determine the amount of tar and nicotine
that a hypothetical smoker would receive if that person
smoked cigarettes under specific standardized conditions.
The purpose of the testing method is to provide an objective
and comparative basis for assessing the relative amounts of
tar and nicotine that cigarettes will deliver when each is
smoked in the same way (Pet. App. B1-B2). Since 1971, the
leading cigarette companies voluntarily have disclosed in
advertising the tar and nicotine data pertaining to their
cigarettes, derived either from the most recently published
FTC test results or from their own tests applying the FTC
method (Pet. App. B2).!

2. In January 1981, petitioner Brown & Williamson
Tobacco Corporation introduced a new cigarette brand—
“Barclay.” Petitioner heavily promoted Barclay as a
cigarette that contained only | mg. tar (Pet. App. C3). The
R. J. Reynolds Tobacco Company, later joined by a
number of other cigarette manufacturers, complained to
the Commission that the claim that Barclay cigarettes con-
tained only | mg. tar was inaccurate. They asserted that the
filter used in the Barclay cigarette is unlike other filters,
because when it is smoked between human lips, its air

'The Commission had commenced a rulemaking proceeding in 1970
to require disclosures in advertising of the FTC tar and nicotine figures.
The rulemaking was suspended when the companies agreed voluntarily
among themselves to disclose this information (Pet. App. B2).

3

ventilation system inevitably is obstructed, causing the
Cigarette to deliver disproportionately more tar and nico-
tine than other comparably rated cigarettes.2 The FTC's test
machine did not reproduce this obstruction. Thus, the other
cigarette manufacturers claimed, the FTC test method did
not accurately rate the Barclay (Pet. App. B3).

The Commission commenced an inquiry to determine if
the Barclay cigarette was accurately rated by the FTC test-
ing methodology. It solicited comments and evidence on
this question from all the cigarette companies. Petitioner
participated fully in the Commission’s inquiry, presenting
evidence to support its own contentions and commenting
upon studies performed by others (Pet. App. B14-B17).

To assist in evaluation of the evidence, the Commission
selected three consultants, each of whom is a respected
expert in the chemistry or use of tobacco. None was con-
nected with any cigarette company. The three experts ana-
lyzed the extensive data and tests on the Barclay that were
submitted to the Commission by petitioner and other
cigarette companies. Working independently, each scientist
arrived at the same ultimate conclusion: that the Barclay
Cigarette is not properly rated by the FTC testing methods
and that when smoked by humans, it yields substantially

?The court of appeals explained (Pet. App. B3):

Cigarette manufacturers have traditionally lowered the “tar”
content of cigarettes by allowing air to be mixed with the smoke to
dilute the intensity of the smoke. Most low “tar” cigarettes have a
filter surrounded by porous paper with one or more rows of small
ventilating holes encircling the filter which allow air into the
smoke channel. The Barclay cigarette, however, has four length-
wise channels to conduct the air from the ventilating holes directly
into the mouth. The air does not mix with the smoke until both are
in the smoker's mouth. The amount of air dilution in the Barclay
cigarette may be reduced if the smoker crushes or blocks channels
with his lips.

4

more tar than other cigarettes rated | mg. tar. Their esti-
mates of the proper tar rating for the Barclay ranged
between 3 mg. and 7 mg. (Pet. App. B15, B17-B18).

After reviewing the evidence and the reports of the three
scientists, the Commission, on June 25, 1982, issued a press
release announcing the following determinations (Pet. App.
B2):

(1) the present FTC testing methodology does not
accurately assess the tar and nicotine yields of Barclay
cigarettes, and the Commission will not accept the test
results based on the current methodology as substanti-
ation for claims made about the tar and nicotine con-
tent of Barclay cigarettes;

(2) a prior FTC report stating that the tar yield of
the Barclay cigarette is | mg. was inaccurate, and the
report would be amended to omit Barclay’s rating; and

(3) pending a revision in the test methodology to
provide for an accurate measurement of the Barclay
yield, future FTC reports would not include test results
for Barclay cigarettes.

At the same time, the Commission informed petitioner
that it intended to publish this information ina notice in the
Federal Register and to request public comment on several
issues, including how to modify the FTC testing methodol-
ogy (Pet. App. B3).

3. After the Commission's announcement, petitioner
immediately commenced this action in the United States
District Court for the Western District of Kentucky to
enjoin the Commission, temporarily and permanently,
from: (1) amending its most recent tar and nicotine report
to delete Barclay’s | mg. tar rating; (2) refusing to continue
to test Barclay by its present test methodology or to publish
the results of such tests in future reports; and (3) prohibiting

5

petitioner from relying on the Commission's present test
methodology to substantiate tiie claim that Barclay is a |
mg. tar cigarette. The complaint alleged that the Commis-
sion’s determinations of June 25, 1982, amounted to sub-
stantive rulemaking and were in violation of the rulemaking
requirements of the Administrative Procedure Act (APA),
5 U.S.C. 553, because the Commission had not provided
notice and an opportunity for comment. The complaint
also alleged that the Commission’s actions were arbitrary,
capricious, an abuse of agency discretion, and not sup-
ported by the evidence before the Commission at the time of
its action, and therefore should be set aside under 5 U.S.C.
706(2)(A) (Pet. App. F12). The district court issued a tem-
porary restraining order to maintain the status quo until it
ruled on petitioner's application for a preliminary injunc-
tion (Pet. App. B3-B4).

Petitioner’s motion for preliminary injunction and the
Commission's opposition were submitted to the district
court, after oral argument, on the basis of affidavits and
exhibits. Included in the documents before the court was
the entire administrative record — the written submissions
to the Commission from the cigarette companies (including
petitioner), the test data and studies that were before the
Commission, and the reports of the Commission's consul-
tants.

The district court held that the Commission’s determina-
tions were not “final agency action” and for this reason were
not reviewable under 5 U.S.C. 702 and 704. The court

The district court, over Commission objections, placed the exhibits
constituting the administrative record under seal (Pet. App. B4).

6

therefore denied preliminary relief and dismissed the com-
plaint (Pet. App. C1-C6).4

4. a. Thecourt of appeals held that the district court had
erred in dismissing the complaint on jurisdictional grounds,
and it entered judgment for the Commission on the merits
(Pet. App. BI-B19).5 The court of appeals ruled that under
the principles of ripeness enunciated in Abbott Laborato-
ries v. Gardner, 387 U.S. 136 (1967), the Commission's
June 25, 1982 announcement constituted final agency
action appropriate for judicial review. In reaching that
conclusion, the court noted, inter alia, that petitioner's
challenges raised legal issues that could be determined
without further fact-finding proceedings before the agency
(Pet. App. B10), that petitioner would suffer substantial
hardship if judicial resolution of its complaint were delayed
until the Commission instituted an enforcement proceeding
(id. at B10-B11), and that the public interest would be
served by a resolution of the dispute Without further delay
(id. at B11).

After concluding that the matter was ripe for judicial
review and concluding that a remand “would entail further
delay,” the court decided “in the interest of judicial

‘The district court did issue an irjunction pending appeal, the effect
of which was to prevent the Commission from publishing its proposed
notice in the Federal Register and from taking any enforcement action
against the | mg. tar claim made in petitioner's advertising for Barclay
cigarettes. Shortly after oral argument before the court of appeals, that
court, on April |, 1983, dissolved the injunction, ruling that even if the
Commission's determinations constituted reviewable agency action,
petitioner had not shown that it was likely to succeed on the merits of its
complaint (Pet. App. B4).

‘The court also vacated the district court's orders sealing the record
(Pet. App. B19-B28). See note 3, supra.

:

economy to reach the merits of this case” (Pet. App. B12)
(footnote omitted). On the merits, the court rejected peti-
tioner’s claims under the APA because, even if it is assumed
that the Commission’s actions amounted to substantive
rulemaking subject to notice and comment requirements,
petitioner had received ample notice and opportunity to
comment on the Commission's proposed action (Pet. App.
B12-B17). See 5 U.S.C. 553(b). In addition, the court of
appeals found that the Commission's June 25, 1982 deter-
minations were fully supported by “overwhelming evidence
[before the Commission] that Barclay was inaccurately
being reported as a | mg. ‘tar’ cigarette” (Pet. App. B18).
The court of appeals also concluded that the Commission’s
actions based on this evidence were not arbitrary and capri-
cious, observing that “the FTC appropriately took action to
halt the dissemination of misleading and incorrect statistics
to the public” and that the Commission appropriately
treated Barclay cigarettes differently “for legitimate and
well-documented reasons” stemming from the cigarettes’
“unique filter construction” (id. at B18-B19).

b. Petitioner then moved for reconsideration, arguing
that the panel had exceeded the scope of appropriate appel-
late review by deciding the merits of the case rather than
simply reversing the district court’s dismissal on jurisdic-
tional grounds and remanding for further proceedings. The
court of appeals denied the petition for reconsideration
(Pet. App. D1I-D3). It pointed out that an appeal from a
denial of injunctive relief brings the whole record before the
appellate court and that the scope of review may extend to
all matters appropriately raised by the record, including

*The court's decision to reach the merits was consistent with the
positions of the parties below. Both the Commission and petitioner had
argued that further fact-finding proceedings before the district court
were unnecessary to decide the issues presented. See, e.g., Pet. App.
F19-F21; Appellee Br. 29 n.17.

8

entry of final judgment. The court also noted that petition-
er’s argument that it lacked such power in this case because
further fact-finding procedures were necessary was in
“striking inconsistency” with the position that petitioner’s
counsel had taken in their briefs and in oral argument (Pet.
App. D2-D3).

5. After the court of appeals vacated the district court’s
injunction pending appeal on April 1, 1983, the Commis-
sion published a notice in the Federal Register deleting the
values listed for Barclay cigarettes in past reports. 48 Fed.
Reg. 15953 (Apr. 13, 1983), clarified, 48 Fed. Reg. 22992
(May 23, 1983). The Commission also notified petitioner
that it would consider continued advertising claims that
Barclay contained | mg. tar to be a deceptive practice under
Section 5 of the Federal Trade Commission Act, 15 U.S.C.
45. Petitioner nevertheless continued to state in its advertis-
ing that Barclay cigarettes contain only | mg. tar. The
Commission therefore filed suit for injunctive relief on July
7, 1983 in the United States District Court for the District of
Columbia. After expedited discovery and a six-day trial, the
district court found the “I mg. tar” claim deceptive and
permanently enjoined petitioner from promoting Barclay
cigarettes with any claim of a specific milligram tar rating
unless that rating is approved by the Commission or is
established using a testing methodology approved by the
Commission. The district court did, however, permit peti-
tioner to represent in advertising that Barclay is “99% tar
free” or “ultra low tar.” FTC v. Brown & Williamson
Tobacco Co., 1983-2 Trade Cas. (CCH) para. 65,662 (Oct.
14, 1983); Order and Judgment, Civil Action No. 83-1049
(D.D.C. filed Oct. 25, 1983), appeal docketed, No. 83-2129
(D.C. Cir. Oct. 28, 1983). On November 7, 1983, the United
States Court of Appeals for the District of Columbia Cir-
cuit denied petitioner's request for a stay pending appeal,

9

concluding that petitioner “ha[d] utterly failed to demon-
strate any likelihood of ultimately succeeding on the merits
of its appeal.” Slip. op. 2.

ARGUMENT

The court of appeals’ decision to enter final judgment on
the merits of petitioner's substantive claims was a valid and
proper exercise of its appellate jurisdiction. The administra-
tive record was before the court, and, as petitioner had
acknowledged, further fact-finding was unnecessary to
decide the merits. In these circumstances, the decision pre-
sents no conflict with any decision of this Court or another
court of appeals. Nor is there any other reason for further
review, especially in light of the six-day trial petitioner
received on matters pertaining to its Barclay cigarette in the
separate action filed by the Commission in the District of
Columbia.

1. Although a reviewing court usually will decide only
those issues which were decided by the lower court and
which are necessary to dispose of an appeal, it long has been
recognized that this rule is not jurisdictional. Jn re Tampa
Suburban R.R., 168 U.S. 583, 588 (1897); Scarlett v. Sea-
board Coast Line R. R., 676 F.2d 1043, 1052 (Sth Cir. 1982);
Mercury Motor Express, Inc. v. Brinke, 475 F.2d 1086,
1091 (Sth Cir. 1973); Hurwitz v. Directors Guild of Amer-
ica, Inc., 364 F.2d 67, 70 (2d Cir.), cert. denied, 385 U.S. 971
(1966); 9 Moore, Ward & Lucas, Moore's Federal Practice
para. 110.25[{1], at 273 (2d ed. 1983) (“{[O]nce a case is
lawfully before a court of appeals, it does not lack power to
do what plainly ought to be done.”).’ And it has been clear

"See also 28 U.S.C. 2106 (emphasis added):

The Supreme Court or any other court of appellate jurisdiction
may affirm, modify, vacate, set aside or reverse any judgment,
decree, or order of a court lawfully brought before it for review,
and may remand the cause and direct the entry of such approp-
riate judgment, decree, or order, or require such further proceed-
ings to be had as may be just under the circumstances.

10

since Smith v. Vulcan Iron Works, 165 U.S. 518, 524-525
(1897), that, as stated in Metropolitan Water Co. v. Kaw
Valley Drainage District, 223 U.S. 519, 523 (1912), “on
appeal from a mere interlocutory order the Circuit Court of
Appeals might direct the bill to be dismissed if it appeared
that the complainant was not entitled to maintain its suit.” ®
See also Deckert v. Independence Shares Corp., 311 U.S.
282, 287 (1940); Denver v. New York Trust Co., 229 U.S.
123, 136 (1913); United States Fidelity Co. v. Bray, 225
U.S. 205, 214(1912); Harriman v. Northern Securities Co™;
197 U.S. 244, 287 (1905); Castner v. Coffman, 178 U.S.
168, 183-184(1900); Mast, Foos & Co. v. Stover Mfg. Co.,
177 U.S. 485, 494-495 (1900); Friarton Estates Corp. v.
City of New York, 681 F.2d 150, 160-161 (2d Cir. 1982);
CES Publishing Corp. v. St. Regis Publications, Inc., 531
F.2d 11, 15 (2d Cir. 1975); Harron v. United Hospital
Center, Inc., 522 F.2d 1133 (4th Cir. 1975), cert. denied, 424
U.S. 916 (1976); Aerojet-General Corp. v. American Arbi-
tration Ass'n, 478 F.2d 248, 252-253 (9th Cir. 1973); 16
Wright, Miller, Cooper & Gressman, Federal Practice and
Procedure § 3921, at 17 (1977).

The decisions of other courts of appeals cited by peti-
tioner (Pet. 8-9) are consistent with these principles. They
simply represent instances in which the appellate court
deemed it inappropriate to reach the merits of the case,
usually because further trial proceedings were contem-
plated. On the other hand, where agency action has been

*Moreover, petitioner appealed not only ‘rom an “interlocutory
order” — i.e., the district court's denial of a preliminary injunction —
but also from the final judgment of the district court dismissing the
complaint. It is well settled that a reviewing court may consider “any
ground” in support of the judgment, “whether or not that ground was
relied upon or even considered by the trial court.” Dandridge v. Willi-
ams, 397 U.S. 471, 475 n.6(1970); United States vy. American Railway
Express Co., 265 U.S. 425, 435 (1924).

1]

challenged and the record of the agency proceeding is
before the court, it is not unusual for the appellate court to
proceed to dispose of the case on the merits after reversing
the district court's dismissal of the case for want of jurisdic-
tion, if no further fact-finding proceedings are warranted.
See, e.g., Athlone Industries v. Consumer Prod. Safety
Comm n, 707 F.2d 1485, 1487-1488, 1490 (D.C. Cir. 1983);
Independent Bankers Ass'n vy. Heimann, 613 F.2d 1164,
1167 (D.C. Cir. 1979), cert. denied, 449 U.S. 823 (1980);
National Wildlife Federation v. Snow, 561 F.2d 227 (D.C.
Cir. 1976); National Automatic Laundry & Cleaning Coun-
cil v. Shultz, 443 F.2d 689 (D.C. Cir. 1971); Independent
Broker- Dealers’ Trade Ass'n v. SEC, 442 F.2d 132 (D.C.
Cir.), cert. denied, 404 U.S. 828 (1971). See also Grosso v.
United States, 390 U.S. 62, 71-72 (1968). In sum, there is no
conflict among the circuits on the question of the propriety
of a court of appeals’ disposing of the case on the merits in
circumstances such as those presented here.

2. The court of appeals’ decision to resolve the merits
was entirely appropriate in the circumstances of this case.
Petitioner had asserted two bases for relief in its underlying
action. The first was that the Commission's determinations
of June 25, 1982 constituted substantive rules issued with-
out following the notice-and-comment rulemaking proce-
dures required by 5 U.S.C. 553 (Pet. App. F12, G12-G16).
The second was that the Commission's actions were arbi-
trary and capricious under 5 U.S.C. 706(2)(A) because they
were illegally discriminatory, vague, and unsupported by
the evidence before the Commission (Pet. App. F12,
G16-G21).

Once the court of appeals determined that the challenged
Commission determinations constituted final agency action
subject to judicial review, the court of appeals was in as
good a position as the district court to review the merits of
petitioner's contentions. The entire administrative record

12

had been filed in the district court by the Commission when
it opposed petitioner's motion for a preliminary injunction.
Further proceedings to develop the record before the dis-
trict court therefore were unnecessary. Indeed, petitioner
had essentially conceded as much in its brief in the court of
appeals, in which it argued that the matter was ripe for
review under Abbott Laboratories because its challenges to
the legality of the Commission’s conduct “raise purely legal
issues” (Pet. App. F3) and that further fact finding was
unnecessary to resolve the issues presented (Pet. App. F19-
F21).° Petitioner — having prevailed on these points in the
court of appeals and thereby persuaded that court that the
matter was ripe for judicial review — cannot fairly turn
about and claim in this Court that the court of appeals erred
in accepting the same arguments for the purpose of dispos-
ing of the merits.

Moreover, there could be no occasion for the sort of
evidentiary proceedings in district court for which peti-
tioner now says the court of appeals should have provided.
It is well established that under the arbitrary and capricious
standard of review in 5 U.S.C. 706(2)(A), “the focal point
for judicial review should be the administrative record
already in existence, not some new record made initially in

9Petitioner now claims (Pet. 14) that the court of appeals was mis-
taken in concluding that it had agreed that the entire case could be
resolved by the district court on the record then before it, asserting that
it had agreed only that its motion for a preliminary injunction could be
resolved by the district court without a further evidentiary hearing.
However, petitioner's statements in the court of appeals regarding the
lack of any need for further fact-finding procedures before the district
court were unqualified and were made in the context of arguing that its
case for permanent injunctive relief raised purely “legal” issues of
administrative law that were ripe for judicial review. It stated, for
example, that “the FTC has claimed that it has submitted to the district
court the entire record upon which its actions were based. To resolve
[petitioner's] substantive challenge, the district court need only apply
the law to the facts already before it” (Pet. App. F20-F21)

13

the [district] court.” Camp v. Pitts, 411 U.S. 138, 142
(1973). Where, as here, the agency has issued a written
statement sufficiently setting forth its finding and evalua-
tion of the evidence,'° the “validity of [the agency’s] action
must * * * stand or fall on the propriety of [its findings and
statement, ] judged, of course, by the appropriate standard
of review,” without recourse to further fact-finding proce-
dures. /d. at 143. See also Dunlop v. Bachowski, 421 U.S.
560, 572-573 (1975); United States v. Bianchi & Co., 373
U.S. 709, 715 (1963).

Thus, in deciding to consider the ultimate merits of peti-
tioner’s case, the court of appeals not only acted within the
limits of its authority, but also sensibly utilized that author-
ity to conserve over-taxed judicial resources. Remanding
the matter to the district court would not have served the
goal that petitioner itself advocated — to “expedite final
resolution of the issues” (Pet. App. F23 (emphasis in origi-
nal)) — but instead would inevitably have delayed that
resolution. Such a remand would have served no purpose
other than to “require wasted litigation without any offset-
ting advantage in economy of appellate effort or uninter-
rupted trial court proceedings.” 16 Wright, Miller, Cooper
& Gressman, Federal Practice and Procedure § 3921, at 17
(1977). There was no reason for that course here, especially
in view of the strong public interest in preventing mislead-
ing advertising.

3. In any event, this case would not be a suitable vehicle
for this Court’s consideration of the questions petitioner
seeks to raise. Subsequent events have rendered academic
petitioner’s contention that it should have been afforded an

Shortly after the Commission's June 25 determinations were
announced, it issued a 23-page statement setting forth in detail the
issues, its evaluation of the evidence, and the conclusions it reached
(Def. Exh. 147).

14

evidentiary hearing before the district court on the Com-
mission’s June 25th determinations. As explained above
(see pages 8-9, supra), following the court of appeals’ deci-
sion in this case, the Commission brought an enforcement
proceeding against petitioner in the United States District
Court for the District of Columbia, alleging that the com-
pany’s advertising claim that Barclay cigarettes yield | mg.
of tar was a deceptive practice under the FTC Act. After a
full trial on the merits, during which petitioner obtained
extensive discovery from the Commission, its competitors,
and the expert consultants whose reports were relied upon
by the Commission in its June 25th action, the district court
issued a permanent injunction ordering the company to
cease promoting its Barclay cigarettes with any claim of a
specific milligram tar content rating unless that rating is
approved by the Commission. On a record independent of
that before the court below, the enforcement court con-
cluded, inter alia, that the studies relied upon by the Com-
mission —

provide strong evidence that Barclay is improperly
rated as | mg. because its vent system is “comprised”
under actual smoking conditions, unlike the vent sys-
tems of other low-tar cigarettes. The evidence pre-
sented by [petitioner] failed to refute the ventilation
studies and did not provide significant contrary
evidence.

FTC v. Brown & Williamson Tobacco Corp., 1983-2 Trade
Cas. (CCH) para. 65,662, at 69299-90 to 69299-91 (D.C.

— ph.

@® Oct. 14, 1983), appeal docketed, No. 83-2129 (D.C. Cir.
Oct. 28, 1983). Since the merits of the Barclay filter claims
have thus been fully litigated in the enforcement action and
resolved in a manner that will bind the parties under princi-
ples of collateral estoppel (cf. United States v. Stauffer
Chemical Co., No. 82-1448 (Jan. 10, 1984)), there is no need
for this Court to review petitioner’s unsuccessful effort

1S

to delay resolution of the matter by challenges to the admi-
nistrative action that preceded the enforcement action or its
belated efforts to supplement the administrative record
through duplicative proceedings in another district court.

CONCLUSION
The petition for a writ of certiorari should be denied.

Respectfully submitted.

Rex E. Lee
Solicitor General

JOHN H. CARLEY
General Counsel

JEROLD D. CUMMINS
Deputy Assistant General Counsel
Federal Trade Commission

FEBRUARY 1984

DO})-198402

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_0965%3A2. Public record. Not legal advice.
