The Toilet Goods Association, Inc. v. John w.ga Rdner, Secretary of Health, Education, and Welfare

Background

The Toilet Goods Association, an industry group representing about 90% of U.S. cosmetics sales, together with 39 manufacturers, sued the Secretary of Health, Education, and Welfare and the Commissioner of Food and Drugs. They challenged a regulation that says the Commissioner may order inspectors to examine manufacturing facilities, processes, and formulas for color additives and may suspend certification service if a company refuses access. The companies asked a federal court to declare the rule invalid and to stop its enforcement before any inspection had occurred.

Reasoning

The Court first asked whether the question was suitable for a judge now and whether the companies would be harmed if they had to wait. The Justices agreed the regulation was a formal agency rule, but said the dispute was not ready for decision because no inspection had been ordered and the reasons the Commissioner might give were unknown. The Court explained that whether the agency had power depends on the whole statutory scheme and the specific enforcement problems, facts best developed in a concrete case.

Real world impact

The Court explained that, although federal law does not bar suing before a rule is enforced, these cosmetics manufacturers must wait for an actual inspection order or a suspension of certification before a court will resolve the legal authority question. If a manufacturer refuses inspection and the Commissioner suspends certification, the company can use administrative procedures and then seek court review of that concrete decision.

Dissents or concurrances

Justice Douglas dissented, adopting the reasons given by the district judge that supported immediate judicial review.