Opinion ID: 1545768
Heading Depth: 1
Heading Rank: 2

Heading: Validity of Act.

Text: Respondent challenges the validity of the act. This it does under two headings. The first is really not a true challenge of the act but rather a contention that the order is directed against actions which are no part of interstate commerce. Of course, if such actions were intrastate purely, as contended, they would be outside the act itself. Hereinbefore, we have determined such actions to be within interstate commerce. The other and accented challenge is that the act is invalid because it combines in the Commission the functions of complainant, prosecutor, and judge. This matter has been determined against the position of respondent in several cases. Federal Trade Commission v. Klesner, 280 U. S. 19, 27, 50 S.Ct. 1, 3, 74 L.Ed. 138, 68 A. L.R. 838; Chamber of Commerce v. Federal Trade Commission, 280 F. 45, 48 (C. C.A.8); Federal Trade Commission v. McLean & Son, 84 F.(2d) 910, 912 (C.C.A. 7); National Harness Mfrs' Ass'n v. Federal Trade Commission, 268 F. 705, 707 (C. C.A.6); Sears, Roebuck & Co. v. Federal Trade Commission, 258 F. 307, 311, 6 A.L. R. 358 (C.C.A.7). We conclude that this case is ruled by the Keppel Case. We so conclude since we construe the Keppel Case to determine that a method of sale which employs the element of chance as an essential feature is against public interest because it is in the nature of a gambling game and that such a method is unfair competition because it places competitors in the position where they must unwillingly adopt such method or run the risk of losing business if they refrain from so doing. Since we are unable to distinguish, in essentials, the situation in this case from the one presented in the Keppel Case, the enforcement of the order of the Commission here involved will be ordered and the petition to set aside the order will be denied.