ch 23&24 – administrative agencies and consumer protection

-congress or state legislature usually adopts a general statute and leaves its implementation (the details) to an administrative agency ex. clean air act
-benefits to society, environment, etc result from administrative law, but there are great costs to businesses

-passed to create an administrative agency, specifies name, purposes, functions and powers of the agency
-mechanism for creating agencies, defines legal authority
-sunsetting - ending agencies

-formed to help the president carrying out executive functions, include the cabinet departments of the executive branch
-president has more power

-agencies are outside the major executive departments
-dont change with new president, officers serve for fixed terms and cannot be removed with out just cause

1. executive powers - appoint officers
2. legislative powers - pass own rules
3. judicial powers - have hearing like a court

1. executive - appointment of officers and veto power
2. legislative - enabling legislation allows congress to abolish an agency and to defund
3. judicial - court review of agency actions but this is subject to the exhaustion doctrine

-party seeking court review must first exhaust all administrative remedies before filing suit
-whole agency process has to be followed before going to a reviewing court

-general statute which details the procedural requirements of all federal agencies
-congress can change the procedural requirements for an agency in its enabling statute
1. arbitrary and capricious test
2. fair notice

-courts should hold "unlawful and set aside" agency actions found to be "arbitrary (random), capricious (sudden), an abuse of discretion, or otherwise not in accordance with law"
1. failed to provide a rational explanation for its decision
2. changed its prior policy w out justification
3. considered legally inappropriate factors
4. entirely failed to consider a relevant factor
5. rendered a decision plainly contrary to the evidence

The APA requires regulatory agencies to give fair notice to those affected by its regulations before any changes are carried out
-w/ out the appropriate notice, the standards of the regulatory agencies can be deemed unconstitutionally vague bc they lack procedural due process meaning it isnt fair to change the rules w/out telling people who are affected

rule making, enforcement and adjudictation
1. inspections - onsite inspections - most common way for an agency to determine any violations, can be random and quite often
2. subpoenas - get witnesses to testify or bring documents to hearings
3. search warrants - protect against unreasonable searches, not required to conduct searches in highly regulated industries like guns, alcohol, emergencies

-ad testificandum - to testify
-duces tecum - to bring it with you - hand over papers, records etc
-limits - purpose of the investigation, relevance of info, how specific subpoena is and the burden on the party from whom the info is sought

-courts give deference to the agency decisions on factual questions and Chevron deference to questions of law
-deference - accept agency judgement bc experts in area of regulation
-chevron deference - deference applies to agency's interpretation of own legal authority, created standard of broadened deference for legal interpretation

when a reasonable consumer would be misled by the advertising claim
-federal trade commission act - prevent unfair and deceptive trade practices

-an argument that contains evidence that is only partly true
-info is true but incomplete and may lead consumers to false conclusions ex. campbell soup

advertising a very low price for a particular item that will likely be unavailable to the consumer who will then be encouraged to purchase the more expensive item

1. labels must be accurate and use words that are easily understood by the ordinary consumer
2. sometimes labels must specify the raw materials used like cotton, nylon etc
3. sometimes a warning label is required

product, net quantity, serving size (if # of servings are stated), manufacturer, packager or distributor

requires standard nutrition facts and regulated the use of terms like fresh and low fat

Biden pushes for a standardized front of package nutrition labels - helps avoid unhealthy foods, pressures companies to make healthier foods

applies to collection agencies not all creditors - attempts to curb perceived abuses by collection agencies

1. contact the debtor at the debtors place of employment after the debtor objects
2. contact the debtor at inconvenient or unusual times
3. contact the third parties except for parents, spouses and financial advisor
4. harass or intimidate debtor or make false or misleading statements
5. communicate w debtor after receiving notice that the debtor will not pay, except to advise next steps