Hollywood House International, Inc., a California Corporation, Plaintiff v. E. Theodore Klassen, Postmaster General of the United States

Hollywood House published and sold by mail a booklet entitled “ ‘Weight-Away,’ A Very Successful Grapefruit Diet.” Appellees initiated proceedings against Hollywood House under 39 U.S.C. § 3005 , which authorizes the Postal Service to take certain steps to deny those who engage in fraudulent advertising practices the use of the mails to further and benefit from their fraudulent schemes.

In the Postal Service administrative proceeding, the hearing examiner held that appellant’s advertisements for its booklet constituted a “scheme or device for obtaining money or property through the mail by means of false representations” within the meaning of Section 3005, and recommended that an order be issued denying appellant’s attempt to recover the impounded mail addressed to it. The administrative judicial officer sustained the hearing examiner’s findings of fact, and issued an order rejecting Hollywood House’s contentions that the Postal Service’s actions were not justified under the statute, and that the statute itself was unconstitutional both on its face and as applied to appellant’s booklet.

Hollywood House then sought to enjoin enforcement of the Postal Service…