“Challenging the FTC’s Unconstitutional Exercise of Executive Power: NCLA Files Motion to Dismiss Federal Trade Commission’s Lawsuit Against Precision Patient Outcomes, Inc. and Margrett Lewis”

Federal Trade Commission v Precision Patient Outcomes, Inc. and Margrett Lewis

WASHINGTON, DC, Feb. 06, 2023 (GLOBE NEWSWIRE) — The New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, has filed a motion to dismiss the Federal Trade Commission’s (FTC) lawsuit against Precision Patient Outcomes, Inc. (PPO), a Californian company that develops dietary supplements, among other things, and its CEO Margrett Lewis. The NCLA argues that the FTC cannot lawfully exercise executive authority by initiating and pursuing this lawsuit, especially considering the Department of Justice’s refusal to bring this case. Congress cannot authorize FTC commissioners to file lawsuits while protecting them from arbitrary removal by the President.

In 2021, PPO developed a supplement called “Covid Resist”. Before selling to consumers, CEO Lewis asked FTC if there were any issues with the product name and proposed marketing. The FTC responded with a letter that declined to answer her question but provided hundreds of pages listing companies the agency had sued or issued warning letters to. On its own initiative and before any product was sold, PPO abandoned the brand and changed the product name to remove any mention of “Covid”. The FTC’s first complaint accused PPO and Ms Lewis of illegally selling Covid Resist. After NCLA attorneys reminded the FTC why this was impossible, the agency filed an expanded complaint to remove the falsehood. No Covid Resist was sold, nor does the amended complaint allege that it was, so the FTC cannot maintain a complaint over such an allegation.

FTC has no particular authority as to what dietary supplements can and cannot do. The agency has no dietitians or even medical professionals on staff. None of the laws the FTC relies on says anything about dietary supplements, and the FTC has not issued any regulations on dietary supplements. In fact, Congress has specifically mandated another agency, the Food and Drug Administration, to set the standard for what can and cannot be said about dietary supplements, in legislation over which the FTC has no jurisdiction.

As the Supreme Court ruled Humphrey’s enforcer In 1935, the FTC had no authority to file lawsuits or seek penalties. These core executive powers were not added to the FTC’s authority until the 1970s. The Supreme Court itself has recognized that its “1935 conclusion that the FTC exercised no executive power has not stood the test of time.” Article II gives executive power to the President, who “must see that the laws are faithfully carried out.” The President cannot effectively fulfill this duty if Congress restricts his authority to remove federal officials under his command. The FTC vs PPO The case thus gives the federal courts the opportunity to make an application Humphrey’s enforcer to prevent the unconstitutional exercise of executive power by the FTC.

The NCLA released the following statements:

“The FTC claims sovereignty over increasing parts of America’s economy on the basis of vague language and old court procedures that differ greatly from modern legal understanding of the separation of powers. This ill-chosen strike against a small businesswoman trying to supply high-quality vitamins should soon end in curtailing the FTC’s ability to exercise executive power not accountable to the President.”
— John J. Vecchione, Senior Litigation Counsel, NCLA

“Inspired by her family’s personal experience, Ms. Lewis is a tireless consumer and advocate for fire victims, yet the FTC punishes our customers for trying to do the right thing. They sought the FTC’s advance. FTC declined to provide it. At great expense, they then voluntarily changed the name and labeling of the product. FTC didn’t care. They no longer sold the product under the new name. The FTC filed this case anyway. At every turn, NCLA clients tried to comply with FTC regulations, but it was never enough. Now all we have to do is beat FTC by their own means.”
— Kara Rollins, Legal Counsel, NCLA

See the case page for more information Here.

ABOUT NCLA

NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional liberties from violations by the administrative state. The NCLA public interest trials and other volunteer advocacy groups seek to tame the unlawful power of state and federal agencies and nurture a new civil liberties movement that will help restore basic rights to Americans.

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CONTACT: Judy Pino New Civil Liberties Alliance 202-869-5218 [email protected]

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