American Brands Inc. v. National Association of Broadcasters
(Ad Restriction, US Dist. Ct. DC 1969) Related Case: Federal Trade Commission v. American Brands (1969) Citation: 308 F.Supp. 1166 (30 Dec 1969)This advertising restriction suit was brought by American Brands, Inc. against National Association of Broadcasters, Columbia Broadcasting System, Inc., National Broadcasting Company, Inc., American Broadcasting Companies, Inc. and the Federal Trade Commission and Commissioners on December 11, 1969.
The plaintiff alleged that the defendants conspired to prevent it from advertising in violation of antitrust laws. On September 29, 1969, the Federal Trade Commission brought a complaint against the plaintiff for unfair competition methods and the use of deceptive acts and practices. It attached a proposed order requiring advertisements indicating low tar content in cigarettes to be paired a disclosure of said tar content, the brand and amount of tar content to which the advertised cigarette was compared, and the tar content of the highest and lowest yield domestic cigarettes. On November 22, 1969, the director of the National Association of Broadcasters contacted the plaintiff and other cigarette manufacturers, telling them that the Code Authority would be implimenting the FTC's policy as of the first of the year. After that time, the defendant networks would not accept the plaintiff's advertising unless it complied with the guidelines. The plaintiff sought an immediate and permanent injunction prohibiting the defendants from enforcing the new guidelines.
The case was heard in the United States District Court for the District of Columbia (Civil Action No. 3517-69), before the Honorable Judge Matthews. The judge denied a motion for preliminary injuction on December 30, 1969. He ruled that the plaintiff had failed to show immediate and irreparable loss necessary for such an injunction as a result of the new advertising guidelines. Any such loss would be compensable in money.