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The Federal Trade Commission ( FTC ) issued a complaint against the defendant and several other major oil companies, alleging that the FTC had reason

The Federal Trade Commission (FTC) issued a complaint against the defendant and several other major oil companies, alleging that the FTC had "reason to believe" that the companies were violating $ 5 of the Federal Trade Commission Act (Act), which prohibits unfair methods of competition or unfair or deceptive acts or practices in commerce. While adjudication of the complaint before an Administrative Law Judge was still pending, respondent, having unsuccessfully sought to have the FTC withdraw the complaint, brought an action in Federal District Court, alleging that the FTC had brought an action in Federal District Court, alleging that the FTC had issued its complaint without having "reason to believe" that respondent was violating the Act, and seeking an order declaring the complaint unlawful and requiring that it be withdrawn. The District Court dismissed the action. The Court of Appeals reversed, holding that the District Court could inquire whether the FTC in fact had made the determination that it had reason to believe that respondent was violating the Act. The case was appealed to the United States Supreme Court

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