CONSTITUTIONAL LAW - COMMERCE CLAUSE - FEDERAL TRADE COMMISSION - JURISDICTION OVER INTRASTATE COMMERCE AFFECTING INTERSTATE COMMERCE

Appellee, an Illinois corporation engaged in manufacturing and selling candy within the state of Illinois, used in marketing its product a method of "break and take" packages involving an element of chance. The Federal Trade Commission had found that this practice constituted "unfair competition" and had ordered one hundred twenty of appellee's competitors who were engaged in interstate commerce to cease using it. The commission issued a like order against appellee on the theory that its activities, although wholly intrastate, "affected" interstate commerce. Appellee appealed from the order, contending that the Federal Trade Commission Act did not authorize the commission to regulate wholly intrastate business.

Held, order set aside. Congress in granting the commission authority to prevent unfair methods of competition "in commerce" did not extend such authority to methods which merely "affected" interstate commerce. Federal Trade Commission v. Bunte Bros., (U.S. 1941) 61 S. Ct. 580.