North Carolina State Board of Dental Examiners v. Federal Trade Commission

The Federal Trade Commission (FTC) filed an administrative complaint, alleging that the Board's concerted action to exclude non dentists from the market for for teeth whitening services in North Carolina constitted an anti competitive and unfair method of competition under the Federal Trade Commission Act. An Administrative Law Judge (ALJ) denied the Board's motion to dismiss on the ground of state-action immunity. The FTC sustained that ruling, reasoning that even if the Board had acted pursuant to a clearly articulated state policy to displace competition, the Board must be actively supervised by the State to claim immunity, which it was not. After a hearing on the merits, the ALJ determined that the Board had unreasonably restrained trade in violation of antitrust law. The FTC again sustained the ALJ, and the Fourth Circuit affirmed the FTC in all respects.