Word: ftc
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Dates: during 1970-1979
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...American Medical Association. The agency charged that the A.M.A's code of ethics, by forbidding advertising, has stifled competition between doctors and thus violates antitrust laws. The case highlighted a sudden new interest by the five-member commission in medicine and advertising: in other late-December actions, the FTC moved to bring about wider advertising of low-priced eyeglasses and to force Warner-Lambert Co. to tell consumers that Listerine mouthwash does not prevent colds or sore throats...
...three moves, the most important is the one against the A.M.A. It is really an opening salvo by the FTC against no-advertising rules by lawyers, architects, veterinarians and other professionals besides doctors. The commission's argument is that these codes of ethics prevent the consumer from learning about the type and cost of available services. That in turn lessens competition and tends to fix prices illegally, the FTC contends...
Though the A.M.A. has until Feb. 9 to answer the FTC's charge, it wasted neither time nor words in announcing that it would fight. "We think there is enough hucksterism in this country without hucksterizing medicine," the association said, speaking for 180,000 doctors. The A.M.A. maintains that ads would not necessarily lower fees and certainly would not tell the patient about the quality of medical care. The case will next be heard before an FTC administrative law judge, whose decision can be appealed to the full commission and, after that, to the federal courts...
...background and present status of the FTC's other two major moves...
Critics complain that Engman's emphasis on antitrust may mire the FTC in years of litigation, to the detriment of its consumer watchdog activities. But defenders of his legal activism point to the fact that for the first time in years, top law-school graduates are seeking jobs at the FTC. One current question in Washington is how long Engman will be there to lead them. It would be no surprise to some Engman watchers if, when Michigan Democratic Senator Philip Hart retires after his current term, Native Son Engman tries for his seat...