This chapter documents the tightening of the contractive phase of economic regulation in the United States. Federal Trade Commission (FTC) funding remained on hold through 1977 and 1978 as the legislative veto gained additional champions in Congress. The problem of the legislative veto of FTC rulings tangled other FTC legislation as well as FTC funding. In March 1978 the push for the legislative veto was hailed not only by the National Association of Manufacturers and the Grocery Manufacturers of America but by small business in general. By September 1978 additional support for Levitas's fight came from the National Association of Home Builders. The J. C. Penney Company, Sears Roebuck and Company, cereal manufacturers, the sugar industry, auto dealers, and broadcasters, most of whom were embroiled in some aspect of FTC activity. The children's advertising investigation was based on the FTC mandate to protect the public from false or deceptive consumer advertising.