FTC v. Am. Tobacco Co. - 264 U.S. 298, 44 S. Ct. 336 (1924)

Rule:

Some evidence of the materiality of papers demanded by the Federal Trade Commission in connection with its investigations must be produced.

Facts:

Respondent tobacco companies were alleged to have been engaged with unfair competition by regulating the prices at which their commodities should be resold. The Attorney General, on behalf of the Federal Trade Commission, filed petitions for writs of mandamus to compel disclosure of respondents' records. The Commission claimed an unlimited right of access to respondents' accounts, books, records, documents, memoranda, contracts, papers and correspondence to determine whether they were involved in unfair methods of competition. The district court denied the petitions. The Commission challenged the decision. 

Issue:

Should the Federal Trade Commission be allowed unlimited right of access to respondents' accounts, books, records, documents, memoranda, contracts, papers and correspondence? 

Answer:

No.

Conclusion:

The Court affirmed the district court's denial of the petitions for writs of mandamus. The Court explained that the mere facts of carrying on a commerce not confined within state lines and of being organized as a corporation did not make men's affairs public. It would be contrary to the first principles of justice to allow a search through all of respondents' records, relevant or irrelevant, in the hope that something will turn up. The right to access given by the Act of September 26, 1914, ch. 311, § 6, 38 Stat. 717, was to documentary evidence, not to all documents. In affirming the judgments, the Court held that some evidence of the materiality of the papers demanded had to be produced, and the Court could not attribute to Congress an intent to defy the Fourth Amendment or even to come so near to doing so as to raise a serious question of constitutional law.