Thursday, December 16, 2010

DC Circuit Upholds FTC Jurisdiction Over Purported Religious Organization

In Daniel Chapter One v. FTC, 2010 U.S. App. LEXIS 25496 (DC Cir., Dec. 10 2010), the D.C. Circuit Court of Appeals held that an organization's formal legal status as a religious corporation sole does not prevent the Federal Trade Commission from regulating its advertisements for dietary supplements.  The organization in fact operated as a for-profit entity generating economic benefits for its founder and his wife. The court also rejected petitioner's argument that the FTC violated the Establishment Clause by using "scientism" as the basis for its requirements.