Litton Industries, Inc. And Litton Systems, Inc. v. Federal Trade Commission

FACTS

Litton Industries, Inc. (“Litton”) and Litton Systems, Inc. seek review of a final order of the Federal Trade Commission (“FTC”) holding that certain microwave oven advertisements published by Litton Microwave Cooking Products (“LMCP”) violated section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45 , and ordering petitioners to cease and desist from certain practices.

Litton Microwave Cooking Products is a division of Litton Systems. Litton Systems is a wholly-owned subsidiary of Litton Industries. LMCP manufactures and distributes microwave ovens.

Litton disseminated advertisements for microwave ovens from October 1976 to February 1977 and from August through October 1977. The ads were placed in trade and general publications. Local advertisements, based upon copy disseminated by Litton, were placed in 1976 and 1977.

The ads presented results of a survey of “independent microwave oven service technicians” indicating that 76% of the surveyed population “recommend Litton.” The ads contained a chart showing percentage preference figures which revealed a strong preference for Litton.

The survey was devised for internal use. After seeing the results, Litton decided…