FEDERAL TRADE COMMISSION v. BROWN SHOE CO., INC., 384 U.S. 316

Summary

The U.S. Supreme Court reversed a judgment setting aside petitioner Federal Trade Commission's order, which had required respondent shoe manufacturer to cease and desist from use of what petitioner had found to be a restrictive contract program amounting to an unfair method of competition within the meaning of the Federal Trade Commission Act (Act), 15 U.S.C.S. § 45 (a)(6). The Supreme Court found that petitioner had broad powers to declare trade practices unfair, particularly, trade practices which conflicted with the basic policies of the antitrust laws. The record showed that respondent's contract program effectively foreclosed respondent's competitors from selling to a substantial number of shoe dealers in conflict with the policies of § 1 of the Sherman Act, 15, U.S.C.S. § 1, and § 3 of the Clayton Act, 15 U.S.C.S. § 14. Because petitioner had the power under the Act to arrest trade restraints in their incipiency without proof that they amounted to an outright violation of any ...