Pillsbury Co. v. Federal Trade Commission
United States Court of Appeals for the Fifth Circuit
354 F.2d 952 (1966)
After Pillsbury Company (plaintiff) acquired two competing baking-product companies, the FTC (defendant) initially dismissed a complaint alleging the acquisition violated antitrust law for lack of evidence, but then reversed itself on appeal and held further proceedings on whether the merger harmed competition. While that evidence was being developed, congressional antitrust subcommittees held hearings in which members of Congress, questioning FTC Chairman Howrey (who mentioned Pillsbury over 100 times in the hearing transcripts), forcefully insisted the FTC had ruled incorrectly and that Congress had intended stricter per se treatment of such mergers — pressure so intense that Howrey recused himself from the case. The FTC later ordered Pillsbury to divest the acquired assets, and Pillsbury petitioned the Fifth Circuit for review.
Whether, under administrative law, a federal agency may issue an adjudicatory order that was influenced by forceful input from Congress directed at the agency during the pendency of the proceeding.