California Dental Assn. v. FTC, 526 U.S. 756, 35 (1999)

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790

CALIFORNIA DENTAL ASSN. v. FTC

Opinion of Breyer, J.

238 (1918). The majority says that the Association's "advertising restrictions might plausibly be thought to have a net procompetitive effect, or possibly no effect at all on competition." Ante, at 771. It adds that

"advertising restrictions arguably protecting patients from misleading or irrelevant advertising call for more than cursory treatment as obviously comparable to classic horizontal agreements to limit output or price competition." Ante, at 773.

And it criticizes the Court of Appeals for failing to recognize that "the restrictions at issue here are very far from a total ban on price or discount advertising" and that "the particular restrictions on professional advertising could have different effects from those 'normally' found in the commercial world, even to the point of promoting competition . . . ." Ibid.

The problem with these statements is that the Court of Appeals did consider the relevant differences. It rejected the legal "treatment" customarily applied "to classic horizontal agreements to limit output or price competition"—i. e., the FTC's (alternative) per se approach. See 128 F. 3d, at 726-727. It did so because the Association's "policies do not, on their face, ban truthful nondeceptive ads"; instead, they "have been enforced in a way that restricts truthful advertising," id., at 727. It added that "[t]he value of restricting false advertising . . . counsels some caution in attacking rules that purport to do so but merely sweep too broadly." Ibid.

Did the Court of Appeals misunderstand the nature of an anticompetitive effect? The Court says:

"If quality advertising actually induces some patients to obtain more care than they would in its absence, then restricting such advertising would reduce the demand for dental services, not the supply; and . . . the producers' supply . . . is normally relevant in determining

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