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Complaint Counsel's Post Trial Brief - Federal Trade Commission

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Respondents' claims are materal because they contain information concerg the purose,<br />

effcacy, and perormance of the DCO Products that would likely affect a consumer's choice to<br />

purchase these products.<br />

IV. THE FTC is NOT VIOLATING THE RESPONDENTS' FIRST AMENDMENT<br />

RIGHTS<br />

A. The Filg of<br />

the Instant Suit Does Not Infringe Respondents' First<br />

Amendment Rights<br />

Thoughout ths proceeding Respondents have argued that their adverising<br />

representations are constitutionally protected religious and political speech that is immune to the<br />

FTC Act's prohibition agaist unfai and deceptive practices. Respondents fist raised their First<br />

Amendment arguent in their Januar 13, 2009 Motion to Dismiss. The Cour dened<br />

Respondents' Motion to Dismiss in its Februar 2,2009, Order, and stated:<br />

The <strong>Complaint</strong> contains suffcient allegations that respondents are engagig in<br />

deceptive commercial speech, including allegations that the Respondents promote<br />

and adverise the Challenged Products, that the Challenged products are offered<br />

for sale at not insignficant prices, and that the adverisements refer to specific<br />

products and attbutes. These allegations, and the content of the exhbits to the<br />

Complait, are more than suffcient for a reasonable fact-fider to infer that the<br />

speech proposes a commercial transaction, refers to specific products and is<br />

economically or commercially motivated. Respondents point to no facts that<br />

would dispute such an inference.<br />

Feb. 2 Order at 8 (citing<br />

In re R.J. Reynolds, 1998 WL 490114, *4 (1998)). The Cour explained<br />

that commercial speech - speech proposing a commercial transaction - that is false or misleading<br />

can be suppressed, and that "(t)he more limted protection accorded commercial speech perits<br />

the FTC to act when necessar to challenge false or deceptive adverising." Feb. 2 Order at 7<br />

(citing<br />

In re R.J. Reynolds, 1998 WL 490114, *4 (1998)).<br />

At tral, Respondents failed to adduce any facts to dispute that their representations<br />

constitute commercial speech. The evidence at tral clearly demonstrated that the challenged<br />

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