California Dental Assn. v. FTC, 526 U.S. 756, 31 (1999)

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786

CALIFORNIA DENTAL ASSN. v. FTC

Opinion of Breyer, J.

Paramount Famous Lasky Corp. v. United States, 282 U. S. 30, 43 (1930); United States v. First Nat. Pictures, Inc., 282 U. S. 44, 54-55 (1930), let alone one that inhibits customers from learning about the quality of a dentist's service.

Nor did the Commission rely solely on the unobjectionable proposition that a restriction on the ability of dentists to advertise on quality is likely to limit their incentive to compete on quality. Rather, the Commission pointed to record evidence affirmatively establishing that quality-based competition is important to dental consumers in California. 121 F. T. C., at 309-311. Unsurprisingly, these consumers choose dental services based at least in part on "information about the type and quality of service." Id., at 249. Similarly, as the Commission noted, the ALJ credited testimony to the effect that "advertising the comfort of services will 'absolutely' bring in more patients," and, conversely, that restraining the ability to advertise based on quality would decrease the number of patients that a dentist could attract. Id., at 310. Finally, the Commission looked to the testimony of dentists who themselves had suffered adverse effects on their business when forced by petitioner to discontinue advertising quality of care. See id., at 310-311.

The FTC found that the price advertising restrictions amounted to a "naked attempt to eliminate price competition." Id., at 300. It found that the service quality advertising restrictions "deprive consumers of information they value and of healthy competition for their patronage." Id., at 311. It added that the "anticompetitive nature of these restrictions" was "plain." Ibid. The Court of Appeals agreed. I do not believe it possible to deny the anticompetitive tendencies I have mentioned.

C

We must also ask whether, despite their anticompetitive tendencies, these restrictions might be justified by other pro-competitive tendencies or redeeming virtues. See 7 Areeda,

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