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Purity Supreme, Inc. v. Attorney General

Citations: 407 N.E.2d 297; 380 Mass. 762; 7 A.L.R. 4th 771; 1980 Mass. LEXIS 1156

Court: Massachusetts Supreme Judicial Court; June 3, 1980; Massachusetts; State Supreme Court

Narrative Opinion Summary

This case involves a legal dispute between a retail company, Purity Supreme, Inc., and the Massachusetts Attorney General regarding the enforcement of Regulation XII, which mandates the affixation of prices on individual consumer goods. Purity Supreme challenged the regulation's constitutionality, arguing that it exceeded the Attorney General's authority under Massachusetts General Laws Chapter 93A and conflicted with established Federal Trade Commission (FTC) interpretations. The Superior Court initially addressed the case, and it was elevated for direct review by the Supreme Judicial Court. The court primarily examined the Attorney General's authority to enact substantive rules under G.L.c. 93A and found that the regulation was a valid exercise of such power, consistent with both the FTC and state consumer protection goals. Purity's arguments concerning procedural adoption flaws and inconsistency with FTC practices were deemed insufficient to invalidate the regulation. The court held that Regulation XII was constitutionally enforceable, emphasizing the importance of consumer protection and the Attorney General's role in defining unfair and deceptive practices. The decision affirmed the regulation's validity, requiring Purity to comply with item pricing requirements, and remanded the case to the Superior Court for further proceedings consistent with this opinion.

Legal Issues Addressed

Authority of the Attorney General under G.L.c. 93A

Application: The Attorney General possesses the authority to create substantive rules under G.L.c. 93A, consistent with FTC practices and federal court interpretations.

Reasoning: The core issue examines the Attorney General's authority to create substantive rules under G.L.c. 93A. The court focused solely on the regulation's validity and constitutionality, determining that it is a legitimate exercise of the Attorney General's power and does not violate constitutional provisions as applied to Purity.

Constitutionality of Regulation XII

Application: Regulation XII, which requires item pricing, is a constitutional regulation under the Attorney General's enforcement powers for consumer protection.

Reasoning: The court affirms the validity of the injunction in case number 77-3436 and confirms the Attorney General's authority and procedural compliance in adopting Regulation XII (A. 1) in case number 77-3530, ruling that the regulation can be constitutionally enforced against Purity.

Item Pricing and Consumer Protection

Application: The requirement for item pricing is justified under c. 93A to prevent unfair or deceptive practices by ensuring consumer awareness at the point of purchase.

Reasoning: The key issue is whether the item price regulation aligns with consumer protection goals under c. 93A, which aims to ensure proper information disclosure and a fair consumer-business relationship.

Judicial Deference to Agency Regulations

Application: Agency regulations, including those by the Attorney General, are afforded the same legal respect as statutes unless proven to be arbitrary or capricious.

Reasoning: The Attorney General cannot create regulations that contradict state statutes and may face legal challenges if he exceeds his statutory authority in defining 'unfair' or 'deceptive' practices. His regulations are afforded the same legal respect as statutes.

Procedural Compliance in Regulation Adoption

Application: The Attorney General's adoption of Regulation XII complied with procedural requirements outlined in Chapter 30A, including holding a public hearing.

Reasoning: A public hearing was held, complying with Chapter 30A's procedural requirements, which include proper notice and the opportunity for public input.