Resort Car Rental System, Inc. v. Federal Trade Commission

Petitioners request a review of the Federal Trade Commission’s cease and desist order of July 31, 1973. It is contended that the order was not supported by substantial evidence on the record and that it exceeded the scope of the Federal Trade Commission’s authority to prescribe remedial measures.

We review the evidence to determine whether it was sufficient to reasonably support the Commission’s conclusions. The Federal Trade Commission’s judgment is entitled to great deference here because deceptive advertising cases necessarily require “inference and pragmatic judgment”. Federal Trade Commission v. Colgate-Palmolive Co., 380 U.S. 374 , 85 S.Ct. 1035 , 13 L.Ed.2d 904 (1965).

Petitioners’ challenge to the evidence is concentrated on hearsay questions regarding the testimony of two consumer witnesses and documents upon which their testimony was partially based. We note in passing that hearsay is generally admissible in Federal Trade Commission hearings provided it is relevant, material, and reliable. Callaway Mills Co. v. Federal Trade Commission, 362 F.2d 435 (5th Cir. 1966); Samuel H. Moss, Inc. v. Federal Trade Commission, 148 F.2d 378 (2d Cir. 1945). The Commission’s…