Source: https://supreme.justia.com/cases/federal/us/318/218/
Timestamp: 2019-04-19 02:29:25+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 318 › Federal Security Administrator v. Quaker Oats Co.
Held, that the Administrator did not depart from statutory requirements in choosing the standards of identity for the purpose of promoting "fair dealing in the interest of consumers;" that the standards which he selected are adapted to that end, and that they are adequately supported by findings and evidence. Pp. 318 U. S. 220, 318 U. S. 235.
1. Upon review of an order of the Federal Security Administrator issuing regulations under § 401 of the Federal Food, Drug and Cosmetic Act, the findings of the Administrator as to the facts are conclusive if supported by substantial evidence. P. 318 U. S. 227.
(b) The judgment exercised by the Administrator under § 401, if based on substantial evidence of record, and if within statutory and constitutional limitations, is controlling even though the reviewing court might, on the same record, have arrived at a different conclusion. P. 318 U. S. 228.
2. Taking into account the evidence of public demand for vitamin-enriched foods, their increasing sale, their variable vitamin composition and dietary value, and the general lack of consumer knowledge of such values, there was in this case sufficient evidence of rational probative force to support the Administrator's judgment that, in the absence of appropriate standards of identity, consumer confusion would ensue, and to support the Administrator's conclusion that the standards of identity adopted will promote honesty and fair dealing in the interest of consumers. P. 318 U. S. 228.
3. The text and the legislative history of the Act show that its purpose was not confined to requiring informative labeling, but was to authorize the Administrator to promulgate definitions and standards of identity "under which the integrity of food products can be effectively maintained" and to require informative labeling only where no such standard had been promulgated, where the food did not purport to comply with a standard, or where the regulations permitted optional ingredients and required their mention on the label. P. 318 U. S. 230.
4. The Court cannot say that such a standard of identity, designed to eliminate a source of confusion to purchasers -- which otherwise would be likely to facilitate unfair dealing and make protection of the consumer difficult -- will not "promote honesty and fair dealing" within the meaning of the Act. P. 318 U. S. 231.
5. The Act does not preclude a regulation which would exclude a wholesome and beneficial ingredient from the definition and standard of identity of a food. P. 318 U. S. 232.
6. It was not unreasonable to prohibit the addition to "farina" of vitamin D as an optional ingredient, while permitting its addition as an optional ingredient to "enriched farina." P. 318 U. S. 234.
for "enriched farina" is sufficient to have any substantial bearing on the reasonableness of the regulations. P. 318 U. S. 235.
The Act does not contemplate that courts should thus substitute their own judgment for that of the Administrator. As passed by the House, it appears to have provided for a judicial review in which the court could take additional evidence, weigh the evidence, and direct the Administrator "to take such further action as justice may require." H.R.Rep. No. 2139, 75th Cong., 3d Sess., pp. 11-12. But, before enactment, the Conference Committee substituted for these provisions those which became § 701(f) of the Act. While, under that section, the Administrator's regulations must be supported by findings based upon "substantial evidence" adduced at the hearing, the Administrator's findings as to the facts, if based on substantial evidence, are conclusive. In explaining these changes, the chairman of the House conferees stated on the floor of the House that "there is no purpose that the court shall exercise the functions that belong to the executive or the legislative branches." 83 Cong.Rec. p. 9096. See also H.R.Rep. No. 2716, 75th Cong., 3d Sess., p. 25. Compare Federal Radio Comm'n v. General Electric Co., 281 U. S. 464.
and informed judgment of an expert administrative body. Federal Trade Comm'n v. Standard Education Society, 302 U. S. 112, 302 U. S. 117; Gray v. Powell, 314 U. S. 402, 314 U. S. 412; Labor Board v. Link-Belt Co., 311 U. S. 584, 311 U. S. 597; see Federal Communications Commission v. Pottsville Broadcasting Co., 309 U. S. 134, 309 U. S. 141, 309 U. S. 144. These considerations are especially appropriate where the review is of regulations of general application adopted by an administrative agency under its rulemaking power in carrying out the policy of a statute with whose enforcement it is charged. Compare Houston v. St. Louis Independent Packing Co., 249 U. S. 479, 249 U. S. 487; Opp Cotton Mills v. Administrator, 312 U. S. 126, 312 U. S. 156. Section 401 calls for the exercise of the "judgment of the Administrator." That judgment, if based on substantial evidence of record, and, if within statutory and constitutional limitations, is controlling even though the reviewing court might on the same record have arrived at a different conclusion.
"rational probative force" (see Consolidated Edison Co. v. Labor Board, 305 U. S. 197, 305 U. S. 229-230), to support the Administrator's judgment that, in the absence of appropriate standards of identity, consumer confusion would ensue. Federal Trade Commission v Raladam Co., 283 U. S. 643, 283 U. S. 651; Federal Trade Commission v. Raladam Co., 316 U. S. 149, 316 U. S. 151-152; Pacific States Box & Basket Co. v. White, 296 U. S. 176, 296 U. S. 181. Compare McLean v. Fleming, 96 U. S. 245, 96 U. S. 251, 96 U. S. 253-255.
superficially resembling each other. [Footnote 7] We cannot say that such a standard of identity, designed to eliminate a source of confusion to purchasers -- which otherwise would be likely to facilitate unfair dealing and make protection of the consumer difficult -- will not "promote honesty and fair dealing" within the meaning of the statute.
Since the definition of identity of a vitamin-treated food, marketed under its common or usual name, involves the inclusion of some vitamin ingredients and the exclusion of others, the Administrator necessarily has a large range of choice in determining what may be included and what excluded. It is not necessarily a valid objection to his choice that another could reasonably have been made. The judicial is not to be substituted for the legislative judgment. It is enough that the Administrator has acted within the statutory bounds of his authority, and that his choice among possible alternative standards adapted to the statutory end is one which a rational person could have made. Houston v. St. Louis Independent Packing Co., supra, 249 U. S. 487.

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