Investigatory powers of agencies
Investigatory Powers of Administrative Agencies
Administrative agencies are empowered to investigate potential violations of the law or regulatory schemes. Investigatory powers are essential for agencies to enforce statutes effectively, gather information, and ensure compliance. These powers are derived from enabling statutes passed by Congress or state legislatures, and they must balance efficiency with constitutional protections, such as due process and Fourth Amendment rights.
Types of Investigatory Powers
Subpoena Power: Agencies can compel witnesses to provide documents, records, or testimony.
Inspection Power: Agencies can enter business premises to examine records, products, or facilities.
Search and Seizure: In certain regulated areas, agencies can seize evidence, often under statutory authority.
Investigative Hearings: Agencies can conduct hearings to collect information and question witnesses.
Key Cases on Investigatory Powers
1. SEC v. Jerry T. O'Brien, Inc. (1967)
Facts: The SEC issued a subpoena for documents from a brokerage firm as part of an investigation into securities fraud. The firm challenged the subpoena as overly broad.
Holding: The Supreme Court upheld the SEC’s subpoena powers, emphasizing that agencies may conduct wide-ranging investigations to enforce the law.
Significance: Agencies can investigate suspected violations without having a specific case already in court, as long as the subpoena is relevant and not arbitrary.
2. ICC v. Brimson (1943)
Facts: The Interstate Commerce Commission (ICC) sought to inspect railroad records to determine compliance with rate regulations.
Holding: The Supreme Court recognized that agencies with regulatory authority must have the power to inspect and examine records to carry out their statutory duties.
Significance: This case confirmed the broad scope of investigatory powers, especially for regulatory agencies overseeing complex industries.
3. Federal Trade Commission v. American Tobacco Co. (1911)
Facts: The FTC conducted an investigation into unfair trade practices by the American Tobacco Company.
Holding: Courts supported the FTC’s investigatory powers, emphasizing that agencies could require disclosure of documents and testimony relevant to their regulatory mission.
Significance: Established that investigatory powers are a necessary incident of regulatory authority, even if the agency doesn’t immediately bring enforcement action.
4. United States v. Morton Salt Co. (1950)
Facts: The FTC issued a subpoena to Morton Salt for business records to investigate alleged antitrust violations.
Holding: The Court held that agency subpoenas must be reasonably relevant to the investigation, but agencies do not need probable cause like criminal cases.
Significance: Differentiated administrative investigations from criminal investigations, allowing more flexible evidence-gathering.
5. Marshall v. Barlow’s, Inc. (1978)
Facts: OSHA inspectors attempted a warrantless inspection of a business for workplace safety violations.
Holding: The Supreme Court ruled that warrantless inspections of nonhazardous workplaces violate the Fourth Amendment unless there is statutory authorization.
Significance: Imposed constitutional limits on investigatory powers; agencies must balance enforcement authority with constitutional protections.
6. Watkins v. United States (1957)
Facts: John Watkins was subpoenaed by the House Un-American Activities Committee (HUAC) to testify about alleged communist activities. He refused to answer some questions.
Holding: The Court emphasized that congressional and agency investigatory powers are not unlimited; they must serve a legitimate legislative purpose and respect due process.
Significance: Established that agencies cannot use investigatory powers to harass individuals or for purposes beyond statutory authority.
7. National Labor Relations Board v. Fansteel Metallurgical Corp. (1939)
Facts: The NLRB sought testimony and documents from an employer regarding labor disputes.
Holding: The Supreme Court recognized the NLRB’s authority to issue subpoenas and conduct investigations as necessary for enforcing labor laws.
Significance: Agencies can use investigatory powers proactively to gather information for regulatory enforcement.
Summary of Principles
Investigatory powers are essential for enforcement but not unlimited.
Agencies can issue subpoenas, inspect records, and hold investigative hearings.
Constitutional safeguards (e.g., Fourth Amendment, due process) apply.
Courts balance agency effectiveness with individual rights.
Investigatory powers differ from criminal investigations; agencies need relevance, not probable cause, in most cases.
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