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In Federal Trade Trade Commission ("FTC") v. American Medical Association ("AMA") (Oct. 12, 1979) (FTC Dkt. No. 9064), the FTC ordered the AMA to cease and desist from promulgating, implementing, and enforcing restraints on advertising, solicitation, and contract practices by physicians and on the contractual arrangements between physicians and non-physicians. The FTC found that ethical standards issued by the AMA were in violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1).

This order was modified by the Court of Appeals for the Second Circuit in AMA v. FTC, 638 F.2d 443 (2nd Cir. 1980), which allowed the AMA to develop principles of conduct for the profession and which also prevented the order from covering legitimate practices.