Federal Trade Commission Act

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Incorporating U.S. SAFE WEB Act amendments of 2006

(Unofficial version)

§ 41. Federal Trade Commission established; membership; vacancies; seal

(Sec. 1)

A commission is created and established, to be known as the Federal Trade Commission (hereinafter

referred to as the Commission), which shall be composed of five Commissioners, who shall be appointed

by the President, by and with the advice and consent of the Senate. Not more than three of the

Commissioners shall be members of the same political party. The first Commissioners appointed shall

continue in office for terms of three, four, five, six, and seven years, respectively, from September 26,

1914, the term of each to be designated by the President, but their successors shall be appointed for terms

of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired

term of the Commissioner whom he shall succeed: Provided, however, That upon the expiration of his

term of office a Commissioner shall continue to serve until his successor shall have been appointed and

shall have qualified. The President shall choose a chairman from the Commission's membership. No

Commissioner shall engage in any other business, vocation, or employment. Any Commissioner may be

removed by the President for inefficiency, neglect of duty, or malfeasance in office. A vacancy in the

Commission shall not impair the right of the remaining Commissioners to exercise all the powers of the

Commission.

The Commission shall have an official seal, which shall be judicially noticed.

15 USC § 41 note: Clarification of Federal Trade Commission Jurisdiction; Savings Provision.

Pub.L. 106-102, Title I, § 133(a), (b), Nov. 12, 1999, 113 Stat. 1383, provided that:

"(a) Any person that directly or indirectly controls, is controlled directly or indirectly by, or is

directly or indirectly under common control with, any bank or savings association (as such terms

are defined in section 3 of the Federal Deposit Insurance Act [12 U.S.C.A. § 1813]) and is not

itself a bank or savings association shall not be deemed to be a bank or savings association for

purposes of any provisions applied by the Federal Trade Commission under the Federal Trade

Commission Act [this subchapter; 15 U.S.C.A. § 41 et seq.].

"(b) No provision of this section [enacting this note and amending section 18a of this title] shall

be construed as restricting the authority of any Federal banking agency (as defined in section 3 of

the Federal Deposit Insurance Act [12 U.S.C.A. § 1813]) under any Federal banking law,

including section 8 of the Federal Deposit Insurance Act [12 U.S.C.A. § 1818]."

§ 42. Employees; expenses

(Sec. 2)

Each Commissioner shall receive a salary, payable in the same manner as the salaries of the judges of the

courts of the United States. The Commission shall appoint a secretary, who shall receive a salary, and it

shall have authority to employ and fix the compensation of such attorneys, special experts, examiners,

clerks, and other employees as it may from time to time find necessary for the proper performance of its

duties and as may be from time to time appropriated for by Congress.

With the exception of the secretary, a clerk to each Commissioner, the attorneys, and such special experts

and examiners as the Commission may from time to time find necessary for the conduct of its work, all

employees of the Commission shall be a part of the classified civil service, and shall enter the service

under such rules and regulations as may be prescribed by the Commission and by the Director of the

Office of Personnel Management.

All of the expenses of the Commission, including all necessary expenses for transportation incurred by

the Commissioners or by their employees under their orders, in making any investigation, or upon official

business in any other places than in the city of Washington, shall be allowed and paid on the presentation

of itemized vouchers therefor approved by the Commission.

Until otherwise provided by law, the Commission may rent suitable offices for its use.

The Government Accountability Office shall receive and examine all accounts of expenditures of the

Commission.

§ 43. Office and place of meeting

(Sec. 3)

The principal office of the Commission shall be in the city of Washington, but it may meet and exercise

all its powers at any other place. The Commission may, by one or more of its members, or by such

examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United

States.

§ 44. Definitions

(Sec. 4)

The words defined in this section shall have the following meaning when found in this subchapter, to wit:

"Commerce" means commerce among the several States or with foreign nations, or in any Territory of the

United States or in the District of Columbia, or between any such Territory and another, or between any

such Territory and any State or foreign nation, or between the District of Columbia and any State or

Territory or foreign nation.

"Corporation" shall be deemed to include any company, trust, so-called Massachusetts trust, or

association, incorporated or unincorporated, which is organized to carry on business for its own profit or

that of its members, and has shares of capital or capital stock or certificates of interest, and any company,

trust, so-called Massachusetts trust, or association, incorporated or unincorporated, without shares of

capital or capital stock or certificates of interest, except partnerships, which is organized to carry on

business for its own profit or that of its members.

"Documentary evidence" includes all documents, papers, correspondence, books of account, and financial

and corporate records.

"Acts to regulate commerce" means subtitle IV of Title 49 and the Communications Act of 1934 [47

U.S.C.A. § 151 et seq.] and all Acts amendatory thereof and supplementary thereto.

"Antitrust Acts" means the Act entitled "An Act to protect trade and commerce against unlawful restraints

and monopolies", approved July 2, 1890; also sections 73 to 76, inclusive, of an Act entitled "An Act to

reduce taxation, to provide revenue for the Government, and for other purposes", approved August 27,

1894; also the Act entitled "An Act to amend sections 73 and 76 of the Act of August 27, 1894, entitled

"An Act to reduce taxation, to provide revenue for the Government, and for other purposes' ", approved

February 12, 1913; and also the Act entitled "An Act to supplement existing laws against unlawful

restraints and monopolies, and for other purposes", approved October 15, 1914.

"Banks" means the types of banks and other financial institutions referred to in section 57a (f)(2) of this

title.

"Foreign law enforcement agency" means-(1) any agency or judicial authority of a foreign government, including a foreign state, a political

subdivision of a foreign state, or a multinational organization constituted by and comprised of foreign

states, that is vested with law enforcement or investigative authority in civil, criminal, or administrative

matters; and

(2) any multinational organization, to the extent that it is acting on behalf of an entity described in

paragraph (1).

15 USC § 44 note: Sunset Provisions. Pub.L. 109-455, § 13, Dec. 22, 2006, provided that:

"This Act, and the amendments made by this Act [enacting 15 U.S.C.A. §§ 57b-2a, 57b-2b, 57c-1,

and 57c-2, amending this section, 12 U.S.C.A. § 3412, and 15 U.S.C.A. §§ 45, 46, 56, 57b-2, and

58, and enacting provisions set out as notes under this section and 15 U.S.C.A. § 58], shall cease

to have effect on the date that is 7 years after the date of enactment of this Act [Dec. 22, 2006]."

Preservation of Existing Authority. Pub.L. 109-455, § 12, Dec. 22. 2006, 120 Stat. 3382, provided

that:

"The authority provided by this Act [the Undertaking Spam, Spyware, And Fraud Enforcement

With Enforcers beyond Borders Act of 2006, also known as the U.S. SAFE WEB Act of 2006,

Pub.L. 109-455, Dec. 22, 2006, 120 Stat. 3372, which enacted 15 U.S.C.A. §§ 57b-2a, 57b-2b,

57c-1, and 57c-2, amended this section, 12 U.S.C.A. § 3412, and 15 U.S.C.A. §§ 45, 46, 56, 57b2, and 58, and enacted provisions set out as notes under this section and 15 U.S.C.A. § 58], and by

the Federal Trade Commission Act (15 U.S.C. 41 et seq.) and the Right to Financial Privacy Act

(12 U.S.C. 3401 et seq.), as such Acts are amended by this Act, is in addition to, and not in lieu of,

any other authority vested in the Federal Trade Commission or any other officer of the United

States."

§ 45. Unfair methods of competition unlawful; prevention by Commission

(Sec. 5)

(a) Declaration of unlawfulness; power to prohibit unfair practices; inapplicability to foreign trade

(1) Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in

or affecting commerce, are hereby declared unlawful.

(2) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations,

except banks, savings and loan institutions described in section 57a(f)(3) of this title, Federal credit

unions described in section 57a(f)(4) of this title, common carriers subject to the Acts to regulate

commerce, air carriers and foreign air carriers subject to part A of subtitle VII of Title 49, and persons,

partnerships, or corporations insofar as they are subject to the Packers and Stockyards Act, 1921, as

amended [7 U.S.C.A. § 181 et seq.], except as provided in section 406(b) of said Act [7 U.S.C.A. §

227(b)], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts

or practices in or affecting commerce.

(3) This subsection shall not apply to unfair methods of competition involving commerce with foreign

nations (other than import commerce) unless-(A) such methods of competition have a direct, substantial, and reasonably foreseeable effect-(i) on commerce which is not commerce with foreign nations, or on import commerce with foreign

nations; or

(ii) on export commerce with foreign nations, of a person engaged in such commerce in the United

States; and

(B) such effect gives rise to a claim under the provisions of this subsection, other than this paragraph.

If this subsection applies to such methods of competition only because of the operation of subparagraph

(A)(ii), this subsection shall apply to such conduct only for injury to export business in the United States.

(4)(A) For purposes of subsection (a) of this section, the term "unfair or deceptive acts or practices"

includes such acts or practices involving foreign commerce that-(i) cause or are likely to cause reasonably foreseeable injury within the United States; or

(ii) involve material conduct occurring within the United States.

(B) All remedies available to the Commission with respect to unfair and deceptive acts or practices shall

be available for acts and practices described in this paragraph, including restitution to domestic or foreign

victims.

(b) Proceeding by Commission; modifying and setting aside orders

Whenever the Commission shall have reason to believe that any such person, partnership, or corporation

has been or is using any unfair method of competition or unfair or deceptive act or practice in or affecting

commerce, and if it shall appear to the Commission that a proceeding by it in respect thereof would be to

the interest of the public, it shall issue and serve upon such person, partnership, or corporation a

complaint stating its charges in that respect and containing a notice of a hearing upon a day and at a place

therein fixed at least thirty days after the service of said complaint. The person, partnership, or

corporation so complained of shall have the right to appear at the place and time so fixed and show cause

why an order should not be entered by the Commission requiring such person, partnership, or corporation

to cease and desist from the violation of the law so charged in said complaint. Any person, partnership, or

corporation may make application, and upon good cause shown may be allowed by the Commission to

intervene and appear in said proceeding by counsel or in person. The testimony in any such proceeding

shall be reduced to writing and filed in the office of the Commission. If upon such hearing the

Commission shall be of the opinion that the method of competition or the act or practice in question is

prohibited by this subchapter, it shall make a report in writing in which it shall state its findings as to the

facts and shall issue and cause to be served on such person, partnership, or corporation an order requiring

such person, partnership, or corporation to cease and desist from using such method of competition or

such act or practice. Until the expiration of the time allowed for filing a petition for review, if no such

petition has been duly filed within such time, or, if a petition for review has been filed within such time

then until the record in the proceeding has been filed in a court of appeals of the United States, as

hereinafter provided, the Commission may at any time, upon such notice and in such manner as it shall

deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under

this section. After the expiration of the time allowed for filing a petition for review, if no such petition

has been duly filed within such time, the Commission may at any time, after notice and opportunity for

hearing, reopen and alter, modify, or set aside, in whole or in part, any report or order made or issued by it

under this section, whenever in the opinion of the Commission conditions of fact or of law have so

changed as to require such action or if the public interest shall so require, except that (1) the said person,

partnership, or corporation may, within sixty days after service upon him or it of said report or order

entered after such a reopening, obtain a review thereof in the appropriate court of appeals of the United

States, in the manner provided in subsection (c) of this section; and (2) in the case of an order, the

Commission shall reopen any such order to consider whether such order (including any affirmative relief

provision contained in such order) should be altered, modified, or set aside, in whole or in part, if the

person, partnership, or corporation involved files a request with the Commission which makes a

satisfactory showing that changed conditions of law or fact require such order to be altered, modified, or

set aside, in whole or in part. The Commission shall determine whether to alter, modify, or set aside any

order of the Commission in response to a request made by a person, partnership, or corporation under

paragraph [FN1] (2) not later than 120 days after the date of the filing of such request.

Any person, partnership, or corporation required by an order of the Commission to cease and desist from

using any method of competition or act or practice may obtain a review of such order in the court of

appeals of the United States, within any circuit where the method of competition or the act or practice in

question was used or where such person, partnership, or corporation resides or carries on business, by

filing in the court, within sixty days from the date of the service of such order, a written petition praying

that the order of the Commission be set aside. A copy of such petition shall be forthwith transmitted by

the clerk of the court to the Commission, and thereupon the Commission shall file in the court the record

in the proceeding, as provided in section 2112 of Title 28. Upon such filing of the petition the court shall

have jurisdiction of the proceeding and of the question determined therein concurrently with the

Commission until the filing of the record and shall have power to make and enter a decree affirming,

modifying, or setting aside the order of the Commission, and enforcing the same to the extent that such

order is affirmed and to issue such writs as are ancillary to its jurisdiction or are necessary in its

judgement to prevent injury to the public or to competitors pendente lite. The findings of the

Commission as to the facts, if supported by evidence, shall be conclusive. To the extent that the order of

the Commission is affirmed, the court shall thereupon issue its own order commanding obedience to the

terms of such order of the Commission. If either party shall apply to the court for leave to adduce

additional evidence, and shall show to the satisfaction of the court that such additional evidence is

material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding

before the Commission, the court may order such additional evidence to be taken before the Commission

and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court

may seem proper. The Commission may modify its findings as to the facts, or make new findings, by

reason of the additional evidence so taken, and it shall file such modified or new findings, which, if

supported by evidence, shall be conclusive, and its recommendation, if any, for the modification or setting

aside of its original order, with the return of such additional evidence. The judgment and decree of the

court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari,

as provided in section 1254 of Title 28.

(d) Jurisdiction of court

Upon the filing of the record with it the jurisdiction of the court of appeals of the United States to affirm,

enforce, modify, or set aside orders of the Commission shall be exclusive.

(e) Exemption from liability

No order of the Commission or judgement of court to enforce the same shall in anywise relieve or absolve

any person, partnership, or corporation from any liability under the Antitrust Acts.

(f) Service of complaints, orders and other processes; return

Complaints, orders, and other processes of the Commission under this section may be served by anyone

duly authorized by the Commission, either (a) by delivering a copy thereof to the person to be served, or

to a member of the partnership to be served, or the president, secretary, or other executive officer or a

director of the corporation to be served; or (b) by leaving a copy thereof at the residence or the principal

office or place of business of such person, partnership, or corporation; or (c) by mailing a copy thereof by

registered mail or by certified mail addressed to such person, partnership, or corporation at his or its

residence or principal office or place of business. The verified return by the person so serving said

complaint, order, or other process setting forth the manner of said service shall be proof of the same, and

the return post office receipt for said complaint, order, or other process mailed by registered mail or by

certified mail as aforesaid shall be proof of the service of the same.

(g) Finality of order

An order of the Commission to cease and desist shall become final-(1) Upon the expiration of the time allowed for filing a petition for review, if no such petition has been

duly filed within such time; but the Commission may thereafter modify or set aside its order to the

extent provided in the last sentence of subsection (b).

(2) Except as to any order provision subject to paragraph (4), upon the sixtieth day after such order is

served, if a petition for review has been duly filed; except that any such order may be stayed, in whole

or in part and subject to such conditions as may be appropriate, by-(A) the Commission;

(B) an appropriate court of appeals of the United States, if (i) a petition for review of such order is

pending in such court, and (ii) an application for such a stay was previously submitted to the

Commission and the Commission, within the 30-day period beginning on the date the application was

received by the Commission, either denied the application or did not grant or deny the application; or

(3) For purposes of subsection (m)(1)(B) of this section and of section 57b(a)(2) of this title, if a

petition for review of the order of the Commission has been filed-(A) upon the expiration of the time allowed for filing a petition for certiorari, if the order of the

Commission has been affirmed or the petition for review has been dismissed by the court of appeals

and no petition for certiorari has been duly filed;

(B) upon the denial of a petition for certiorari, if the order of the Commission has been affirmed or

the petition for review has been dismissed by the court of appeals; or

directing that the order of the Commission be affirmed or the petition for review be dismissed.

(4) In the case of an order provision requiring a person, partnership, or corporation to divest itself of

stock, other share capital, or assets, if a petition for review of such order of the Commission has been

filed-(A) upon the expiration of the time allowed for filing a petition for certiorari, if the order of the

Commission has been affirmed or the petition for review has been dismissed by the court of appeals

and no petition for certiorari has been duly filed;

(B) upon the denial of a petition for certiorari, if the order of the Commission has been affirmed or

the petition for review has been dismissed by the court of appeals; or

directing that the order of the Commission be affirmed or the petition for review be dismissed.

(h) Modification or setting aside of order by Supreme Court

If the Supreme Court directs that the order of the Commission be modified or set aside, the order of the

Commission rendered in accordance with the mandate of the Supreme Court shall become final upon the

expiration of thirty days from the time it was rendered, unless within such thirty days either party has

instituted proceedings to have such order corrected to accord with the mandate, in which event the order

of the Commission shall become final when so corrected.

(i) Modification or setting aside of order by Court of Appeals

If the order of the Commission is modified or set aside by the court of appeals, and if (1) the time allowed

for filing a petition for certiorari has expired and no such petition has been duly filed, or (2) the petition

for certiorari has been denied, or (3) the decision of the court has been affirmed by the Supreme Court,

then the order of the Commission rendered in accordance with the mandate of the court of appeals shall

become final on the expiration of thirty days from the time such order of the Commission was rendered,

unless within such thirty days either party has instituted proceedings to have such order corrected so that

it will accord with the mandate, in which event the order of the Commission shall become final when so

corrected.

(j) Rehearing upon order or remand

If the Supreme Court orders a rehearing; or if the case is remanded by the court of appeals to the

Commission for a rehearing, and if (1) the time allowed for filing a petition for certiorari has expired, and

no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision

of the court has been affirmed by the Supreme Court, then the order of the Commission rendered upon

such rehearing shall become final in the same manner as though no prior order of the Commission had

been rendered.

(k) "Mandate" defined

As used in this section the term "mandate", in case a mandate has been recalled prior to the expiration of

thirty days from the date of issuance thereof, means the final mandate.

(l) Penalty for violation of order; injunctions and other appropriate equitable relief

Any person, partnership, or corporation who violates an order of the Commission after it has become

final, and while such order is in effect, shall forfeit and pay to the United States a civil penalty of not

more than $10,000 for each violation, which shall accrue to the United States and may be recovered in a

civil action brought by the Attorney General of the United States. Each separate violation of such an

order shall be a separate offense, except that in a case of a violation through continuing failure to obey or

neglect to obey a final order of the Commission, each day of continuance of such failure or neglect shall

be deemed a separate offense. In such actions, the United States district courts are empowered to grant

mandatory injunctions and such other and further equitable relief as they deem appropriate in the

enforcement of such final orders of the Commission.

(m) Civil actions for recovery of penalties for knowing violations of rules and cease and desist orders

respecting unfair or deceptive acts or practices; jurisdiction; maximum amount of penalties; continuing

violations; de novo determinations; compromise or settlement procedure

(1)(A) The Commission may commence a civil action to recover a civil penalty in a district court of the

United States against any person, partnership, or corporation which violates any rule under this chapter

respecting unfair or deceptive acts or practices (other than an interpretive rule or a rule violation of which

the Commission has provided is not an unfair or deceptive act or practice in violation of subsection (a)(1)

of this section) with actual knowledge or knowledge fairly implied on the basis of objective

circumstances that such act is unfair or deceptive and is prohibited by such rule. In such action, such

person, partnership, or corporation shall be liable for a civil penalty of not more than $10,000 for each

violation.

(B) If the Commission determines in a proceeding under subsection (b) of this section that any act or

practice is unfair or deceptive, and issues a final cease and desist order, other than a consent order, with

respect to such act or practice, then the Commission may commence a civil action to obtain a civil penalty

in a district court of the United States against any person, partnership, or corporation which engages in

such act or practice-(1) after such cease and desist order becomes final (whether or not such person, partnership, or

corporation was subject to such cease and desist order), and

(2) with actual knowledge that such act or practice is unfair or deceptive and is unlawful under

subsection (a)(1) of this section.

In such action, such person, partnership, or corporation shall be liable for a civil penalty of not more than

$10,000 for each violation.

this section, each day of continuance of such failure shall be treated as a separate violation, for purposes

of subparagraphs (A) and (B). In determining the amount of such a civil penalty, the court shall take into

account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to

continue to do business, and such other matters as justice may require.

(2) If the cease and desist order establishing that the act or practice is unfair or deceptive was not issued

against the defendant in a civil penalty action under paragraph (1)(B) the issues of fact in such action

against such defendant shall be tried de novo. Upon request of any party to such an action against such

defendant, the court shall also review the determination of law made by the Commission in the

proceeding under subsection (b) of this section that the act or practice which was the subject of such

proceeding constituted an unfair or deceptive act or practice in violation of subsection (a) of this section.

(3) The Commission may compromise or settle any action for a civil penalty if such compromise or

settlement is accompanied by a public statement of its reasons and is approved by the court.

(n) Standard of proof; public policy consideration

The Commission shall have no authority under this section or section 57a of this title to declare unlawful

an act or practice on the grounds that such act or practice is unfair unless the act or practice causes or is

likely to cause substantial injury to consumers which is not reasonably avoidable by consumers

themselves and not outweighed by countervailing benefits to consumers or to competition. In

determining whether an act or practice is unfair, the Commission may consider established public policies

as evidence to be considered with all other evidence. Such public policy considerations may not serve as

a primary basis for such determination.

[FN1] So in original. Probably should be "clause".

§ 45a. Labels on products

(Sec 5a)

To the extent any person introduces, delivers for introduction, sells, advertises, or offers for sale in

commerce a product with a "Made in the U.S.A." or "Made in America" label, or the equivalent thereof,

in order to represent that such product was in whole or substantial part of domestic origin, such label shall

be consistent with decisions and orders of the Federal Trade Commission issued pursuant to section 45 of

this title. This section only applies to such labels. Nothing in this section shall preclude the application

of other provisions of law relating to labeling. The Commission may periodically consider an appropriate

percentage of imported components which may be included in the product and still be reasonably

consistent with such decisions and orders. Nothing in this section shall preclude use of such labels for

products that contain imported components under the label when the label also discloses such information

in a clear and conspicuous manner. The Commission shall administer this section pursuant to section 45

of this title and may from time to time issue rules pursuant to section 553 of Title 5 for such purpose. If a

rule is issued, such violation shall be treated by the Commission as a violation of a rule under section 57a

of this title regarding unfair or deceptive acts or practices. This section shall be effective upon

publication in the Federal Register of a Notice of the provisions of this section. The Commission shall

publish such notice within six months after September 13, 1994.

§ 46. Additional powers of Commission

(Sec. 6)

The Commission shall also have power-(a) Investigation of persons, partnerships, or corporations

To gather and compile information concerning, and to investigate from time to time the organization,

business, conduct, practices, and management of any person, partnership, or corporation engaged in or

whose business affects commerce, excepting banks, savings and loan institutions described in section

57a(f)(3) of this title, Federal credit unions described in section 57a(f)(4) of this title, and common

carriers subject to the Act to regulate commerce, and its relation to other persons, partnerships, and

corporations.

(b) Reports of persons, partnerships, and corporations

To require, by general or special orders, persons, partnerships, and corporations, engaged in or whose

business affects commerce, excepting banks, savings and loan institutions described in section 57a(f)(3)

of this title, Federal credit unions described in section 57a(f)(4) of this title, and common carriers

subject to the Act to regulate commerce, or any class of them, or any of them, respectively, to file with

the Commission in such form as the Commission may prescribe annual or special, or both annual and

special, reports or answers in writing to specific questions, furnishing to the Commission such

information as it may require as to the organization, business, conduct, practices, management, and

relation to other corporations, partnerships, and individuals of the respective persons, partnerships, and

corporations filing such reports or answers in writing. Such reports and answers shall be made under

oath, or otherwise, as the Commission may prescribe, and shall be filed with the Commission within

such reasonable period as the Commission may prescribe, unless additional time be granted in any case

by the Commission.

Whenever a final decree has been entered against any defendant corporation in any suit brought by the

United States to prevent and restrain any violation of the antitrust Acts, to make investigation, upon its

own initiative, of the manner in which the decree has been or is being carried out, and upon the

application of the Attorney General it shall be its duty to make such investigation. It shall transmit to

the Attorney General a report embodying its findings and recommendations as a result of any such

investigation, and the report shall be made public in the discretion of the Commission.

(d) Investigations of violations of antitrust statutes

Upon the direction of the President or either House of Congress to investigate and report the facts

relating to any alleged violations of the antitrust Acts by any corporation.

(e) Readjustment of business of corporations violating antitrust statutes

Upon the application of the Attorney General to investigate and make recommendations for the

readjustment of the business of any corporation alleged to be violating the antitrust Acts in order that

the corporation may thereafter maintain its organization, management, and conduct of business in

accordance with law.

(f) Publication of information; reports

To make public from time to time such portions of the information obtained by it hereunder as are in

the public interest; and to make annual and special reports to the Congress and to submit therewith

recommendations for additional legislation; and to provide for the publication of its reports and

decisions in such form and manner as may be best adapted for public information and use: Provided,

That the Commission shall not have any authority to make public any trade secret or any commercial or

financial information which is obtained from any person and which is privileged or confidential, except

that the Commission may disclose such information to officers and employees of appropriate Federal

law enforcement agencies or to any officer or employee of any State law enforcement agency upon the

prior certification of an officer of any such Federal or State law enforcement agency that such

information (1) will be maintained in confidence and will be used only for official law enforcement

purposes, and (2) to any officer or employee of any foreign law enforcement agency under the same

circumstances that making material available to foreign law enforcement agencies is permitted under

section 57b-2(b) of this title.

(g) Classification of corporations; regulations

From time to time classify corporations and (except as provided in section 57a(a)(2) of this title) to

make rules and regulations for the purpose of carrying out the provisions of this subchapter.

(h) Investigations of foreign trade conditions; reports

To investigate, from time to time, trade conditions in and with foreign countries where associations,

combinations, or practices of manufacturers, merchants, or traders, or other conditions, may affect the

foreign trade of the United States, and to report to Congress thereon, with such recommendations as it

deems advisable.

(i) Investigations of foreign antitrust law violations

With respect to the International Antitrust Enforcement Assistance Act of 1994 [15 U.S.C.A. § 6201 et

seq.], to conduct investigations of possible violations of foreign antitrust laws (as defined in section 12

of such Act [15 U.S.C.A. § 6211] ).

(j) Investigative assistance for foreign law enforcement agencies

(1) In general

Upon a written request from a foreign law enforcement agency to provide assistance in accordance with

this subsection, if the requesting agency states that it is investigating, or engaging in enforcement

proceedings against, possible violations of laws prohibiting fraudulent or deceptive commercial

practices, or other practices substantially similar to practices prohibited by any provision of the laws

administered by the Commission, other than Federal antitrust laws (as defined in section 6211(5) of this

title, to provide the assistance described in paragraph (2) without requiring that the conduct identified in

the request constitute a violation of the laws of the United States.

(2) Type of assistance

In providing assistance to a foreign law enforcement agency under this subsection, the Commission

may-(A) conduct such investigation as the Commission deems necessary to collect information and

evidence pertinent to the request for assistance, using all investigative powers authorized by this

subchapter; and

(B) when the request is from an agency acting to investigate or pursue the enforcement of civil laws,

or when the Attorney General refers a request to the Commission from an agency acting to investigate

or pursue the enforcement of criminal laws, seek and accept appointment by a United States district

court of Commission attorneys to provide assistance to foreign and international tribunals and to

litigants before such tribunals on behalf of a foreign law enforcement agency pursuant to section 1782

of Title 28.

(3) Criteria for determination

In deciding whether to provide such assistance, the Commission shall consider all relevant factors,

including-(A) whether the requesting agency has agreed to provide or will provide reciprocal assistance to the

Commission;

(B) whether compliance with the request would prejudice the public interest of the United States; and

practices that cause or are likely to cause injury to a significant number of persons.

(4) International agreements

If a foreign law enforcement agency has set forth a legal basis for requiring execution of an

international agreement as a condition for reciprocal assistance, or as a condition for provision of

materials or information to the Commission, the Commission, with prior approval and ongoing

oversight of the Secretary of State, and with final approval of the agreement by the Secretary of State,

may negotiate and conclude an international agreement, in the name of either the United States or the

Commission, for the purpose of obtaining such assistance, materials, or information. The Commission

may undertake in such an international agreement to-(A) provide assistance using the powers set forth in this subsection;

(B) disclose materials and information in accordance with subsection (f) of this section and section

57b-2(b) of this title; and

authorized by this subchapter.

(5) Additional authority

The authority provided by this subsection is in addition to, and not in lieu of, any other authority vested

in the Commission or any other officer of the United States.

(6) Limitation

The authority granted by this subsection shall not authorize the Commission to take any action or

exercise any power with respect to a bank, a savings and loan institution described in section 57a(f)(3)

of this title, a Federal credit union described in section 57a(f)(4) of this title, or a common carrier

subject to the Act to regulate commerce, except in accordance with the undesignated proviso following

the last designated subsection of this section.

(7) Assistance to certain countries

The Commission may not provide investigative assistance under this subsection to a foreign law

enforcement agency from a foreign state that the Secretary of State has determined, in accordance with

section 2405(j) of the Appendix to Title 50, has repeatedly provided support for acts of international

terrorism, unless and until such determination is rescinded pursuant to section 2405(j)(4) of the

Appendix to Title 50.

(k) Referral of evidence for criminal proceedings

(1) In general

Whenever the Commission obtains evidence that any person, partnership, or corporation, either

domestic or foreign, has engaged in conduct that may constitute a violation of Federal criminal law, to

transmit such evidence to the Attorney General, who may institute criminal proceedings under

appropriate statutes. Nothing in this paragraph affects any other authority of the Commission to

disclose information.

(2) International information

The Commission shall endeavor to ensure, with respect to memoranda of understanding and

international agreements it may conclude, that material it has obtained from foreign law enforcement

agencies acting to investigate or pursue the enforcement of foreign criminal laws may be used for the

purpose of investigation, prosecution, or prevention of violations of United States criminal laws.

(l) Expenditures for cooperative arrangements

To expend appropriated funds for-(1) operating expenses and other costs of bilateral and multilateral cooperative law enforcement groups

conducting activities of interest to the Commission and in which the Commission participates; and

(2) expenses for consultations and meetings hosted by the Commission with foreign government agency

officials, members of their delegations, appropriate representatives and staff to exchange views

concerning developments relating to the Commission's mission, development and implementation of

cooperation agreements, and provision of technical assistance for the development of foreign consumer

protection or competition regimes, such expenses to include necessary administrative and logistic

expenses and the expenses of Commission staff and foreign invitees in attendance at such consultations

and meetings including-(A) such incidental expenses as meals taken in the course of such attendance;

(B) any travel and transportation to or from such meetings; and

Provided, That the exception of "banks, savings and loan institutions described in section 57a(f)(3) of this

title, Federal credit unions described in section 57a(f)(4) of this title, and common carriers subject to the

Act to regulate commerce" from the Commission's powers defined in subsections (a), (b), and (j) of this

section, shall not be construed to limit the Commission's authority to gather and compile information, to

investigate, or to require reports or answers from, any person, partnership, or corporation to the extent that

such action is necessary to the investigation of any person, partnership, or corporation, group of persons,

partnerships, or corporations, or industry which is not engaged or is engaged only incidentally in banking,

in business as a savings and loan institution, in business as a Federal credit union, or in business as a

common carrier subject to the Act to regulate commerce.

The Commission shall establish a plan designed to substantially reduce burdens imposed upon small

businesses as a result of requirements established by the Commission under clause (b) relating to the

filing of quarterly financial reports. Such plan shall (1) be established after consultation with small

businesses and persons who use the information contained in such quarterly financial reports; (2) provide

for a reduction of the number of small businesses required to file such quarterly financial reports; and (3)

make revisions in the forms used for such quarterly financial reports for the purpose of reducing the

complexity of such forms. The Commission, not later than December 31, 1980, shall submit such plan to

the Committee on Commerce, Science, and Transportation of the Senate and to the Committee on Energy

and Commerce of the House of Representatives. Such plan shall take effect not later than October 31,

1981.

No officer or employee of the Commission or any Commissioner may publish or disclose information to

the public, or to any Federal agency, whereby any line-of-business data furnished by a particular

establishment or individual can be identified. No one other than designated sworn officers and employees

of the Commission may examine the line-of-business reports from individual firms, and information

provided in the line-of-business program administered by the Commission shall be used only for

statistical purposes. Information for carrying out specific law enforcement responsibilities of the

Commission shall be obtained under practices and procedures in effect on May 28, 1980, or as changed

by law.

Nothing in this section (other than the provisions of clause (c) and clause (d)) shall apply to the business

of insurance, except that the Commission shall have authority to conduct studies and prepare reports

relating to the business of insurance. The Commission may exercise such authority only upon receiving a

request which is agreed to by a majority of the members of the Committee on Commerce, Science, and

Transportation of the Senate or the Committee on Energy and Commerce of the House of

Representatives. The authority to conduct any such study shall expire at the end of the Congress during

which the request for such study was made.

§ 46a. Concurrent resolution essential to authorize investigations

(Sec. 6a)

After June 16, 1933, no new investigations shall be initiated by the Commission as the result of a

legislative resolution, except the same be a concurrent resolution of the two Houses of Congress.

§ 47. Reference of suits under antitrust statutes to Commission

(Sec. 7)

In any suit in equity brought by or under the direction of the Attorney General as provided in the antitrust

Acts, the court may, upon the conclusion of the testimony therein, if it shall be then of opinion that the

complainant is entitled to relief, refer said suit to the Commission, as a master in chancery, to ascertain

and report an appropriate form of decree therein. The Commission shall proceed upon such notice to the

parties and under such rules of procedure as the court may prescribe, and upon the coming in of such

report such exceptions may be filed and such proceedings had in relation thereto as upon the report of a

master in other equity causes, but the court may adopt or reject such report, in whole or in part, and enter

such decree as the nature of the case may in its judgment require.

§ 48. Information and assistance from departments

(Sec. 8)

The several departments and bureaus of the Government when directed by the President shall furnish the

Commission, upon its request, all records, papers, and information in their possession relating to any

corporation subject to any of the provisions of this subchapter, and shall detail from time to time such

officials and employees to the Commission as he may direct.

§ 49. Documentary evidence; depositions; witnesses

(Sec. 9)

For the purposes of this subchapter the Commission, or its duly authorized agent or agents, shall at all

reasonable times have access to, for the purpose of examination, and the right to copy any documentary

evidence of any person, partnership, or corporation being investigated or proceeded against; and the

Commission shall have power to require by subpoena the attendance and testimony of witnesses and the

production of all such documentary evidence relating to any matter under investigation. Any member of

the Commission may sign subpoenas, and members and examiners of the Commission may administer

oaths and affirmations, examine witnesses, and receive evidence.

Such attendance of witnesses, and the production of such documentary evidence, may be required from

any place in the United States, at any designated place of hearing. And in case of disobedience to a

subpoena the Commission may invoke the aid of any court of the United States in requiring the

attendance and testimony of witnesses and the production of documentary evidence.

Any of the district courts of the United States within the jurisdiction of which such inquiry is carried on

may, in case of contumacy or refusal to obey a subpoena issued to any person, partnership, or corporation

issue an order requiring such person, partnership, or corporation to appear before the Commission, or to

produce documentary evidence if so ordered, or to give evidence touching the matter in question; and any

failure to obey such order of the court may be punished by such court as a contempt thereof.

Upon the application of the Attorney General of the United States, at the request of the Commission, the

district courts of the United States shall have jurisdiction to issue writs of mandamus commanding any

person, partnership, or corporation to comply with the provisions of this subchapter or any order of the

Commission made in pursuance thereof.

The Commission may order testimony to be taken by deposition in any proceeding or investigation

pending under this subchapter at any stage of such proceeding or investigation. Such depositions may be

taken before any person designated by the Commission and having power to administer oaths. Such

testimony shall be reduced to writing by the person taking the deposition, or under his direction, and shall

then be subscribed by the deponent. Any person may be compelled to appear and depose and to produce

documentary evidence in the same manner as witnesses may be compelled to appear and testify and

produce documentary evidence before the Commission as hereinbefore provided.

Witnesses summoned before the Commission shall be paid the same fees and mileage that are paid

witnesses in the courts of the United States and witnesses whose depositions are taken and the persons

taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the

United States.

§ 50. Offenses and penalties

(Sec. 10)

Any person who shall neglect or refuse to attend and testify, or to answer any lawful inquiry or to produce

any documentary evidence, if in his power to do so, in obedience to an order of a district court of the

United States directing compliance with the subpoena or lawful requirement of the Commission, shall be

guilty of an offense and upon conviction thereof by a court of competent jurisdiction shall be punished by

a fine of not less than $1,000 nor more than $5,000, or by imprisonment for not more than one year, or by

both such fine and imprisonment.

Any person who shall willfully make, or cause to be made, any false entry or statement of fact in any

report required to be made under this subchapter, or who shall willfully make, or cause to be made, any

false entry in any account, record, or memorandum kept by any person, partnership, or corporation

subject to this subchapter, or who shall willfully neglect or fail to make, or to cause to be made, full, true,

and correct entries in such accounts, records, or memoranda of all facts and transactions appertaining to

the business of such person, partnership, or corporation, or who shall willfully remove out of the

jurisdiction of the United States, or willfully mutilate, alter, or by any other means falsify any

documentary evidence of such person, partnership, or corporation, or who shall willfully refuse to submit

to the Commission or to any of its authorized agents, for the purpose of inspection and taking copies, any

documentary evidence of such person, partnership, or corporation in his possession or within his control,

shall be deemed guilty of an offense against the United States, and shall be subject, upon conviction in

any court of the United States of competent jurisdiction, to a fine of not less than $1,000 nor more than

$5,000, or to imprisonment for a term of not more than three years, or to both such fine and

imprisonment.

If any persons, partnership, or corporation required by this subchapter to file any annual or special report

shall fail so to do within the time fixed by the Commission for filing the same, and such failure shall

continue for thirty days after notice of such default, the corporation shall forfeit to the United States the

sum of $100 for each and every day of the continuance of such failure, which forfeiture shall be payable

into the Treasury of the United States, and shall be recoverable in a civil suit in the name of the United

States brought in the case of a corporation or partnership in the district where the corporation or

partnership has its principal office or in any district in which it shall do business, and in the case of any

person in the district where such person resides or has his principal place of business. It shall be the duty

of the various United States attorneys, under the direction of the Attorney General of the United States, to

prosecute for the recovery of the forfeitures. The costs and expenses of such prosecution shall be paid out

of the appropriation for the expenses of the courts of the United States.

Any officer or employee of the Commission who shall make public any information obtained by the

Commission without its authority, unless directed by a court, shall be deemed guilty of a misdemeanor,

and, upon conviction thereof, shall be punished by a fine not exceeding $5,000, or by imprisonment not

exceeding one year, or by fine and imprisonment, in the discretion of the court.

§ 51. Effect on other statutory provisions

(Sec. 11)

Nothing contained in this subchapter shall be construed to prevent or interfere with the enforcement of the

provisions of the antitrust Acts or the Acts to regulate commerce, nor shall anything contained in this

subchapter be construed to alter, modify, or repeal the said antitrust Acts or the Acts to regulate

commerce or any part or parts thereof.

§ 52. Dissemination of false advertisements

(Sec. 12)

(a) Unlawfulness

It shall be unlawful for any person, partnership, or corporation to disseminate, or cause to be

disseminated, any false advertisement-(1) By United States mails, or in or having an effect upon commerce, by any means, for the purpose of

inducing, or which is likely to induce, directly or indirectly the purchase of food, drugs, devices,

services, or cosmetics; or

(2) By any means, for the purpose of inducing, or which is likely to induce, directly or indirectly, the

purchase in or having an effect upon commerce, of food, drugs, devices, services, or cosmetics.

(b) Unfair or deceptive act or practice

The dissemination or the causing to be disseminated of any false advertisement within the provisions of

subsection (a) of this section shall be an unfair or deceptive act or practice in or affecting commerce

within the meaning of section 45 of this title.

§ 53. False advertisements; injunctions and restraining orders

(Sec. 13)

(a) Power of Commission; jurisdiction of courts

Whenever the Commission has reason to believe-(1) that any person, partnership, or corporation is engaged in, or is about to engage in, the dissemination

or the causing of the dissemination of any advertisement in violation of section 52 of this title, and

(2) that the enjoining thereof pending the issuance of a complaint by the Commission under section 45

of this title, and until such complaint is dismissed by the Commission or set aside by the court on

review, or the order of the Commission to cease and desist made thereon has become final within the

meaning of section 45 of this title, would be to the interest of the public,

the Commission by any of its attorneys designated by it for such purpose may bring suit in a district court

of the United States or in the United States court of any Territory, to enjoin the dissemination or the

causing of the dissemination of such advertisement. Upon proper showing a temporary injunction or

restraining order shall be granted without bond. Any suit may be brought where such person, partnership,

or corporation resides or transacts business, or wherever venue is proper under section 1391 of Title 28.

In addition, the court may, if the court determines that the interests of justice require that any other

person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or

corporation to be added as a party without regard to whether venue is otherwise proper in the district in

which the suit is brought. In any suit under this section, process may be served on any person,

partnership, or corporation wherever it may be found.

(b) Temporary restraining orders; preliminary injunctions

Whenever the Commission has reason to believe-(1) that any person, partnership, or corporation is violating, or is about to violate, any provision of law

enforced by the Federal Trade Commission, and

(2) that the enjoining thereof pending the issuance of a complaint by the Commission and until such

complaint is dismissed by the Commission or set aside by the court on review, or until the order of the

Commission made thereon has become final, would be in the interest of the public-the Commission by any of its attorneys designated by it for such purpose may bring suit in a district court

of the United States to enjoin any such act or practice. Upon a proper showing that, weighing the equities

and considering the Commission's likelihood of ultimate success, such action would be in the public

interest, and after notice to the defendant, a temporary restraining order or a preliminary injunction may

be granted without bond: Provided, however, That if a complaint is not filed within such period (not

exceeding 20 days) as may be specified by the court after issuance of the temporary restraining order or

preliminary injunction, the order or injunction shall be dissolved by the court and be of no further force

and effect: Provided further, That in proper cases the Commission may seek, and after proper proof, the

court may issue, a permanent injunction. Any suit may be brought where such person, partnership, or

corporation resides or transacts business, or wherever venue is proper under section 1391 of Title 28. In

addition, the court may, if the court determines that the interests of justice require that any other person,

partnership, or corporation should be a party in such suit, cause such other person, partnership, or

corporation to be added as a party without regard to whether venue is otherwise proper in the district in

which the suit is brought. In any suit under this section, process may be served on any person,

partnership, or corporation wherever it may be found.

Any process of the Commission under this section may be served by any person duly authorized by the

Commission-(1) by delivering a copy of such process to the person to be served, to a member of the partnership to be

served, or to the president, secretary, or other executive officer or a director of the corporation to be

served;

(2) by leaving a copy of such process at the residence or the principal office or place of business of such

person, partnership, or corporation; or

(3) by mailing a copy of such process by registered mail or certified mail addressed to such person,

partnership, or corporation at his, or her, or its residence, principal office, or principal place or business.

[FN1]

The verified return by the person serving such process setting forth the manner of such service shall be

proof of the same.

(d) Exception of periodical publications

Whenever it appears to the satisfaction of the court in the case of a newspaper, magazine, periodical, or

other publication, published at regular intervals-(1) that restraining the dissemination of a false advertisement in any particular issue of such publication

would delay the delivery of such issue after the regular time therefor, and

(2) that such delay would be due to the method by which the manufacture and distribution of such

publication is customarily conducted by the publisher in accordance with sound business practice, and

not to any method or device adopted for the evasion of this section or to prevent or delay the issuance of

an injunction or restraining order with respect to such false advertisement or any other advertisement,

the court shall exclude such issue from the operation of the restraining order or injunction.

§ 54. False advertisements; penalties

(Sec. 14)

(a) Imposition of penalties

Any person, partnership, or corporation who violates any provision of section 52(a) of this title shall, if

the use of the commodity advertised may be injurious to health because of results from such use under the

conditions prescribed in the advertisement thereof, or under such conditions as are customary or usual, or

if such violation is with intent to defraud or mislead, be guilty of a misdemeanor, and upon conviction

shall be punished by a fine of not more than $5,000 or by imprisonment for not more than six months, or

by both such fine and imprisonment; except that if the conviction is for a violation committed after a first

conviction of such person, partnership, or corporation, for any violation of such section, punishment shall

be by a fine of not more than $10,000 or by imprisonment for not more than one year, or by both such

fine and imprisonment: Provided, That for the purposes of this section meats and meat food products

duly inspected, marked, and labeled in accordance with rules and regulations issued under the Meat

Inspection Act [21 U.S.C.A. § 601 et seq.] shall be conclusively presumed not injurious to health at the

time the same leave official "establishments."

(b) Exception of advertising medium or agency

No publisher, radio-broadcast licensee, or agency or medium for the dissemination of advertising, except

the manufacturer, packer, distributor, or seller of the commodity to which the false advertisement relates,

shall be liable under this section by reason of the dissemination by him of any false advertisement, unless

he has refused, on the request of the Commission, to furnish the Commission the name and post-office

address of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United

States, who caused him to disseminate such advertisement. No advertising agency shall be liable under

this section by reason of the causing by it of the dissemination of any false advertisement, unless it has

refused, on the request of the Commission, to furnish the Commission the name and post-office address

of the manufacturer, packer, distributor, or seller, residing in the United States, who caused it to cause the

dissemination of such advertisement.

§ 55. Additional definitions

(Sec. 15)

For the purposes of sections 52 to 54 of this title-(a) False advertisement

(1) The term "false advertisement" means an advertisement, other than labeling, which is misleading in

a material respect; and in determining whether any advertisement is misleading, there shall be taken

into account (among other things) not only representations made or suggested by statement, word,

design, device, sound, or any combination thereof, but also the extent to which the advertisement fails

to reveal facts material in the light of such representations or material with respect to consequences

which may result from the use of the commodity to which the advertisement relates under the

conditions prescribed in said advertisement, or under such conditions as are customary or usual. No

advertisement of a drug shall be deemed to be false if it is disseminated only to members of the medical

profession, contains no false representation of a material fact, and includes, or is accompanied in each

instance by truthful disclosure of, the formula showing quantitatively each ingredient of such drug.

(2) In the case of oleomargarine or margarine an advertisement shall be deemed misleading in a

material respect if in such advertisement representations are made or suggested by statement, word,

grade designation, design, device, symbol, sound, or any combination thereof, that such oleomargarine

or margarine is a dairy product, except that nothing contained herein shall prevent a truthful, accurate,

and full statement in any such advertisement of all the ingredients contained in such oleomargarine or

margarine.

(b) Food

The term "food" means (1) articles used for food or drink for man or other animals, (2) chewing gum,

and (3) articles used for components of any such article.

The term "drug" means (1) articles recognized in the official United States Pharmacopoeia, official

Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement

to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or

prevention of disease in man or other animals; and (3) articles (other than food) intended to affect the

structure or any function of the body of man or other animals; and (4) articles intended for use as a

component of any article specified in clause (1), (2), or (3); but does not include devices or their

components, parts, or accessories.

(d) Device

The term "device" (except when used in subsection (a) of this section) means an instrument, apparatus,

implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including

any component, part, or accessory, which is-(1) recognized in the official National Formulary, or the United States Pharmacopeia, or any

supplement to them,

(2) intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation,

treatment, or prevention of disease, in man or other animals, or

(3) intended to affect the structure or any function of the body of man or other animals, and

which does not achieve any of its principal intended purposes through chemical action within or on

the body of man or other animals and which is not dependent upon being metabolized for the

achievement of any of its principal intended purposes.

(e) Cosmetic

The term "cosmetic" means (1) articles to be rubbed, poured, sprinkled, or sprayed on, introduced into,

or otherwise applied to the human body or any part thereof intended for cleansing, beautifying,

promoting attractiveness, or altering the appearance, and (2) articles intended for use as a component of

any such article; except that such term shall not include soap.

(f) Oleomargarine or margarine

For the purposes of this section and section 347 of Title 21, the term "oleomargarine" or "margarine"

includes-(1) all substances, mixtures, and compounds known as oleomargarine or margarine;

(2) all substances, mixtures, and compounds which have a consistence similar to that of butter and

which contain any edible oils or fats other than milk fat if made in imitation or semblance of butter.

§ 56. Commencement, defense, intervention and supervision of litigation and appeal by Commission

or Attorney General

(Sec. 16)

(a) Procedure for exercise of authority to litigate or appeal

(1) Except as otherwise provided in paragraph (2) or (3), if-(A) before commencing, defending, or intervening in, any civil action involving this subchapter

(including an action to collect a civil penalty) which the Commission, or the Attorney General on behalf

of the Commission, is authorized to commence, defend, or intervene in, the Commission gives written

notification and undertakes to consult with the Attorney General with respect to such action; and

(B) the Attorney General fails within 45 days after receipt of such notification to commence, defend, or

intervene in, such action;

the Commission may commence, defend, or intervene in, and supervise the litigation of, such action and

any appeal of such action in its own name by any of its attorneys designated by it for such purpose.

(2) Except as otherwise provided in paragraph (3), in any civil action-(A) under section 53 of this title (relating to injunctive relief);

(B) under section 57b of this title (relating to consumer redress);

under section 45 of this title;

(D) under the second paragraph of section 49 of this title (relating to enforcement of a subpena) and

under the fourth paragraph of such section (relating to compliance with section 46 of this title); or

(E) under section 57b-2a of this title;

the Commission shall have exclusive authority to commence or defend, and supervise the litigation of,

such action and any appeal of such action in its own name by any of its attorneys designated by it for such

purpose, unless the Commission authorizes the Attorney General to do so. The Commission shall inform

the Attorney General of the exercise of such authority and such exercise shall not preclude the Attorney

General from intervening on behalf of the United States in such action and any appeal of such action as

may be otherwise provided by law.

(3)(A) If the Commission makes a written request to the Attorney General, within the 10-day period

which begins on the date of the entry of the judgment in any civil action in which the Commission

represented itself pursuant to paragraph (1) or (2), to represent itself through any of its attorneys

designated by it for such purpose before the Supreme Court in such action, it may do so, if-(i) the Attorney General concurs with such request; or

(ii) the Attorney General, within the 60-day period which begins on the date of the entry of such

judgment-(a) refuses to appeal or file a petition for writ of certiorari with respect to such civil action, in which

case he shall give written notification to the Commission of the reasons for such refusal within such

60-day period; or

(b) the Attorney General fails to take any action with respect to the Commission's request.

(B) In any case where the Attorney General represents the Commission before the Supreme Court in any

civil action in which the Commission represented itself pursuant to paragraph (1) or (2), the Attorney

General may not agree to any settlement, compromise, or dismissal of such action, or confess error in the

Supreme Court with respect to such action, unless the Commission concurs.

"Attorney General" includes the Solicitor General.

(4) If, prior to the expiration of the 45-day period specified in paragraph (1) of this section or a 60-day

period specified in paragraph (3), any right of the Commission to commence, defend, or intervene in, any

such action or appeal may be extinguished due to any procedural requirement of any court with respect to

the time in which any pleadings, notice of appeal, or other acts pertaining to such action or appeal may be

taken, the Attorney General shall have one-half of the time required to comply with any such procedural

requirement of the court (including any extension of such time granted by the court) for the purpose of

commencing, defending, or intervening in the civil action pursuant to paragraph (1) or for the purpose of

refusing to appeal or file a petition for writ of certiorari and the written notification or failing to take any

action pursuant to paragraph 3(A)(ii).

(5) The provisions of this subsection shall apply notwithstanding chapter 31 of Title 28, or any other

provision of law.

(b) Certification by Commission to Attorney General for criminal proceedings

Whenever the Commission has reason to believe that any person, partnership, or corporation is liable for a

criminal penalty under this subchapter, the Commission shall certify the facts to the Attorney General,

whose duty it shall be to cause appropriate criminal proceedings to be brought.

(1) Commission attorneys

With the concurrence of the Attorney General, the Commission may designate Commission attorneys to

assist the Attorney General in connection with litigation in foreign courts on particular matters in which

the Commission has an interest.

(2) Reimbursement for foreign counsel

The Commission is authorized to expend appropriated funds, upon agreement with the Attorney

General, to reimburse the Attorney General for the retention of foreign counsel for litigation in foreign

courts and for expenses related to litigation in foreign courts in which the Commission has an interest.

(3) Limitation on use of funds

Nothing in this subsection authorizes the payment of claims or judgments from any source other than

the permanent and indefinite appropriation authorized by section 1304 of Title 31.

(4) Other authority

The authority provided by this subsection is in addition to any other authority of the Commission or the

Attorney General.

§ 57. Separability clause

(Sec. 17)

If any provision of this subchapter, or the application thereof to any person, partnership, or corporation, or

circumstance, is held invalid, the remainder of this subchapter, and the application of such provisions to

any other person, partnership, corporation, or circumstance, shall not be affected thereby.

§ 57a. Unfair or deceptive acts or practices rulemaking proceedings

(Sec. 18)

(a) Authority of Commission to prescribe rules and general statements of policy

(1) Except as provided in subsection (h) of this section, the Commission may prescribe-(A) interpretive rules and general statements of policy with respect to unfair or deceptive acts or

practices in or affecting commerce (within the meaning of section 45(a)(1) of this title), and

(B) rules which define with specificity acts or practices which are unfair or deceptive acts or practices

in or affecting commerce (within the meaning of section 45(a)(1) of this title), except that the

Commission shall not develop or promulgate any trade rule or regulation with regard to the regulation

of the development and utilization of the standards and certification activities pursuant to this section.

Rules under this subparagraph may include requirements prescribed for the purpose of preventing such

acts or practices.

(2) The Commission shall have no authority under this subchapter, other than its authority under this

section, to prescribe any rule with respect to unfair or deceptive acts or practices in or affecting commerce

(within the meaning of section 45(a)(1) of this title). The preceding sentence shall not affect any

authority of the Commission to prescribe rules (including interpretive rules), and general statements of

policy, with respect to unfair methods of competition in or affecting commerce.

(b) Procedures applicable

(1) When prescribing a rule under subsection (a)(1)(B) of this section, the Commission shall proceed in

accordance with section 553 of Title 5 (without regard to any reference in such section to sections 556

and 557 of such title), and shall also (A) publish a notice of proposed rulemaking stating with

particularity the text of the rule, including any alternatives, which the Commission proposes to

promulgate, and the reason for the proposed rule; (B) allow interested persons to submit written data,

views, and arguments, and make all such submissions publicly available; (C) provide an opportunity for

an informal hearing in accordance with subsection (c) of this section; and (D) promulgate, if appropriate,

a final rule based on the matter in the rulemaking record (as defined in subsection (e)(1)(B) of this

section), together with a statement of basis and purpose.

(2)(A) Prior to the publication of any notice of proposed rulemaking pursuant to paragraph (1)(A), the

Commission shall publish an advance notice of proposed rulemaking in the Federal Register. Such

advance notice shall-(i) contain a brief description of the area of inquiry under consideration, the objectives which the

Commission seeks to achieve, and possible regulatory alternatives under consideration by the

Commission; and

(ii) invite the response of interested parties with respect to such proposed rulemaking, including any

suggestions or alternative methods for achieving such objectives.

(B) The Commission shall submit such advance notice of proposed rulemaking to the Committee on

Commerce, Science, and Transportation of the Senate and to the Committee on Energy and Commerce of

the House of Representatives. The Commission may use such additional mechanisms as the Commission

considers useful to obtain suggestions regarding the content of the area of inquiry before the publication

of a general notice of proposed rulemaking under paragraph (1)(A).

paragraph (1)(A), submit such notice to the Committee on Commerce, Science, and Transportation of the

Senate and to the Committee on Energy and Commerce of the House of Representatives.

(3) The Commission shall issue a notice of proposed rulemaking pursuant to paragraph (1)(A) only where

it has reason to believe that the unfair or deceptive acts or practices which are the subject of the proposed

rulemaking are prevalent. The Commission shall make a determination that unfair or deceptive acts or

practices are prevalent under this paragraph only if-(A) it has issued cease and desist orders regarding such acts or practices, or

(B) any other information available to the Commission indicates a widespread pattern of unfair or

deceptive acts or practices.

The Commission shall conduct any informal hearings required by subsection (b)(1)(C) of this section in

accordance with the following procedure:

(1)(A) The Commission shall provide for the conduct of proceedings under this subsection by hearing

officers who shall perform their functions in accordance with the requirements of this subsection.

(B) The officer who presides over the rulemaking proceedings shall be responsible to a chief presiding

officer who shall not be responsible to any other officer or employee of the Commission. The officer

who presides over the rulemaking proceeding shall make a recommended decision based upon the

findings and conclusions of such officer as to all relevant and material evidence, except that such

recommended decision may be made by another officer if the officer who presided over the proceeding

is no longer available to the Commission.

shall consult any person or party with respect to any fact in issue unless such officer gives notice and

opportunity for all parties to participate.

(2) Subject to paragraph (3) of this subsection, an interested person is entitled-(A) to present his position orally or by documentary submission (or both), and

(B) if the Commission determines that there are disputed issues of material fact it is necessary to

resolve, to present such rebuttal submissions and to conduct (or have conducted under paragraph

(3)(B)) such cross-examination of persons as the Commission determines (i) to be appropriate, and

(ii) to be required for a full and true disclosure with respect to such issues.

(3) The Commission may prescribe such rules and make such rulings concerning proceedings in such

hearings as may tend to avoid unnecessary costs or delay. Such rules or rulings may include (A)

imposition of reasonable time limits on each interested person's oral presentations, and (B) requirements

that any cross-examination to which a person may be entitled under paragraph (2) be conducted by the

Commission on behalf of that person in such manner as the Commission determines (i) to be

appropriate, and (ii) to be required for a full and true disclosure with respect to disputed issues of

material fact.

(4)(A) Except as provided in subparagraph (B), if a group of persons each of whom under paragraphs

(2) and (3) would be entitled to conduct (or have conducted) cross-examination and who are determined

by the Commission to have the same or similar interests in the proceeding cannot agree upon a single

representative of such interests for purposes of cross-examination, the Commission may make rules and

rulings (i) limiting the representation of such interest, for such purposes, and (ii) governing the manner

in which such cross-examination shall be limited.

(B) When any person who is a member of a group with respect to which the Commission has made a

determination under subparagraph (A) is unable to agree upon group representation with the other

members of the group, then such person shall not be denied under the authority of subparagraph (A) the

opportunity to conduct (or have conducted) cross-examination as to issues affecting his particular

interests if (i) he satisfies the Commission that he has made a reasonable and good faith effort to reach

agreement upon group representation with the other members of the group and (ii) the Commission

determines that there are substantial and relevant issues which are not adequately presented by the

group representative.

(5) A verbatim transcript shall be taken of any oral presentation, and cross-examination, in an informal

hearing to which this subsection applies. Such transcript shall be available to the public.

(d) Statement of basis and purpose accompanying rule; "Commission" defined; judicial review of

amendment or repeal of rule; violation of rule

(1) The Commission's statement of basis and purpose to accompany a rule promulgated under subsection

(a)(1)(B) of this section shall include (A) a statement as to the prevalence of the acts or practices treated

by the rule; (B) a statement as to the manner and context in which such acts or practices are unfair or

deceptive; and (C) a statement as to the economic effect of the rule, taking into account the effect on

small business and consumers.

(2)(A) The term "Commission" as used in this subsection and subsections (b) and (c) of this section

includes any person authorized to act in behalf of the Commission in any part of the rulemaking

proceeding.

(B) A substantive amendment to, or repeal of, a rule promulgated under subsection (a)(1)(B) of this

section shall be prescribed, and subject to judicial review, in the same manner as a rule prescribed under

such subsection. An exemption under subsection (g) of this section shall not be treated as an amendment

or repeal of a rule.

(3) When any rule under subsection (a)(1)(B) of this section takes effect a subsequent violation thereof

shall constitute an unfair or deceptive act or practice in violation of section 45(a)(1) of this title, unless the

Commission otherwise expressly provides in such rule.

(e) Judicial review; petition; jurisdiction and venue; rulemaking record; additional submissions and

presentations; scope of review and relief; review by Supreme Court; additional remedies

(1)(A) Not later than 60 days after a rule is promulgated under subsection (a)(1)(B) of this section by the

Commission, any interested person (including a consumer or consumer organization) may file a petition,

in the United States Court of Appeals for the District of Columbia circuit or for the circuit in which such

person resides or has his principal place of business, for judicial review of such rule. Copies of the

petition shall be forthwith transmitted by the clerk of the court to the Commission or other officer

designated by it for that purpose. The provisions of section 2112 of Title 28 shall apply to the filing of

the rulemaking record of proceedings on which the Commission based its rule and to the transfer of

proceedings in the courts of appeals.

(B) For purpose of this section, the term "rulemaking record" means the rule, its statement of basis and

purpose, the transcript required by subsection (c)(5) of this section, any written submissions, and any

other information which the Commission considers relevant to such rule.

(2) If the petitioner or the Commission applies to the court for leave to make additional oral submissions

or written presentations and shows to the satisfaction of the court that such submissions and presentations

would be material and that there were reasonable grounds for the submissions and failure to make such

submissions and presentations in the proceeding before the Commission, the court may order the

Commission to provide additional opportunity to make such submissions and presentations. The

Commission may modify or set aside its rule or make a new rule by reason of the additional submissions

and presentations and shall file such modified or new rule, and the rule's statement of basis of purpose,

with the return of such submissions and presentations. The court shall thereafter review such new or

modified rule.

(3) Upon the filing of the petition under paragraph (1) of this subsection, the court shall have jurisdiction

to review the rule in accordance with chapter 7 of Title 5 and to grant appropriate relief, including interim

relief, as provided in such chapter. The court shall hold unlawful and set aside the rule on any ground

specified in subparagraphs (A), (B), (C), or (D) of section 706(2) of Title 5 (taking due account of the rule

of prejudicial error), or if-(A) the court finds that the Commission's action is not supported by substantial evidence in the

rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole, or

(B) the court finds that-(i) a Commission determination under subsection (c) of this section that the petitioner is not entitled

to conduct cross-examination or make rebuttal submissions, or

(ii) a Commission rule or ruling under subsection (c) of this section limiting the petitioner's crossexamination or rebuttal submissions,

has precluded disclosure of disputed material facts which was necessary for fair determination by the

Commission of the rulemaking proceeding taken as a whole.

The term "evidence", as used in this paragraph, means any matter in the rulemaking record.

(4) The judgment of the court affirming or setting aside, in whole or in part, any such rule shall be final,

subject to review by the Supreme Court of the United States upon certiorari or certification, as provided in

section 1254 of Title 28.

(5)(A) Remedies under the preceding paragraphs of this subsection are in addition to and not in lieu of

any other remedies provided by law.

(B) The United States Courts of Appeal shall have exclusive jurisdiction of any action to obtain judicial

review (other than in an enforcement proceeding) of a rule prescribed under subsection (a)(1)(B) of this

section, if any district court of the United States would have had jurisdiction of such action but for this

subparagraph. Any such action shall be brought in the United States Court of Appeals for the District of

Columbia circuit, or for any circuit which includes a judicial district in which the action could have been

brought but for this subparagraph.

reviewed only in a proceeding under this subsection and only in accordance with paragraph (3)(B).

Section 706(2)(E) of Title 5 shall not apply to any rule promulgated under subsection (a)(1)(B) of this

section. The contents and adequacy of any statement required by subsection (b)(1)(D) of this section

shall not be subject to judicial review in any respect.

(f) Unfair or deceptive acts or practices by banks, savings and loan institutions, or Federal credit unions;

promulgation of regulations by Board of Governors of Federal Reserve System, Federal Home Loan Bank

Board, and National Credit Union Administration Board; agency enforcement and compliance

proceedings; violations; power of other Federal agencies unaffected; reporting requirements

(1) In order to prevent unfair or deceptive acts or practices in or affecting commerce (including acts or

practices which are unfair or deceptive to consumers) by banks or savings and loan institutions described

in paragraph (3), each agency specified in paragraph (2) or (3) of this subsection shall establish a separate

division of consumer affairs which shall receive and take appropriate action upon complaints with respect

to such acts or practices by banks or savings and loan institutions described in paragraph (3) subject to its

jurisdiction. The Board of Governors of the Federal Reserve System (with respect to banks) and the

Federal Home Loan Bank Board (with respect to savings and loan institutions described in paragraph (3))

and the National Credit Union Administration Board (with respect to Federal credit unions described in

paragraph (4)) shall prescribe regulations to carry out the purposes of this section, including regulations

defining with specificity such unfair or deceptive acts or practices, and containing requirements

prescribed for the purpose of preventing such acts or practices. Whenever the Commission prescribes a

rule under subsection (a)(1)(B) of this section, then within 60 days after such rule takes effect each such

Board shall promulgate substantially similar regulations prohibiting acts or practices of banks or savings

and loan institutions described in paragraph (3), or Federal credit unions described in paragraph (4), as the

case may be, which are substantially similar to those prohibited by rules of the Commission and which

impose substantially similar requirements, unless (A) any such Board finds that such acts or practices of

banks or savings and loan institutions described in paragraph (3), or Federal credit unions described in

paragraph (4), as the case may be, are not unfair or deceptive, or (B) the Board of Governors of the

Federal Reserve System finds that implementation of similar regulations with respect to banks, savings

and loan institutions or Federal credit unions would seriously conflict with essential monetary and

payments systems policies of such Board, and publishes any such finding, and the reasons therefor, in the

Federal Register.

(2) Enforcement. Compliance with regulations prescribed under this subsection shall be enforced under

section 1818 of Title 12, in the case of-(A) national banks and Federal branches and Federal agencies of foreign banks, by the division of

consumer affairs established by the Office of the Comptroller of the Currency;

(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of

foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign

banks), commercial lending companies owned or controlled by foreign banks, and organizations

operating under section 25 or 25(a) of the Federal Reserve Act [12 U.S.C.A. § § 601 et seq., 611 et

seq.], by the division of consumer affairs established by the Board of Governors of the Federal Reserve

System; and

subparagraph (A) or (B)) and insured State branches of foreign banks, by the division of consumer

affairs established by the Board of Directors of the Federal Deposit Insurance Corporation.

(3) Compliance with regulations prescribed under this subsection shall be enforced under section 1818 of

Title 12 with respect to savings associations as defined in section 1813 of Title 12.

(4) Compliance with regulations prescribed under this subsection shall be enforced with respect to Federal

credit unions under sections 1766 and 1786 of title 12.

(5) For the purpose of the exercise by any agency referred to in paragraph (2) of its powers under any Act

referred to in that paragraph, a violation of any regulation prescribed under this subsection shall be

deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any

provision of law specifically referred to in paragraph (2), each of the agencies referred to in that

paragraph may exercise, for the purpose of enforcing compliance with any regulation prescribed under

this subsection, any other authority conferred on it by law.

(6) The authority of the Board of Governors of the Federal Reserve System to issue regulations under this

subsection does not impair the authority of any other agency designated in this subsection to make rules

respecting its own procedures in enforcing compliance with regulations prescribed under this subsection.

(7) Each agency exercising authority under this subsection shall transmit to the Congress each year a

detailed report on its activities under this paragraph during the preceding calendar year.

The terms used in this paragraph that are not defined in this subchapter or otherwise defined in section

1813(s) of Title 12 shall have the meaning given to them in section 3101 of Title 12.

(g) Exemptions and stays from application of rules; procedures

(1) Any person to whom a rule under subsection (a)(1)(B) of this section applies may petition the

Commission for an exemption from such rule.

(2) If, on its own motion or on the basis of a petition under paragraph (1), the Commission finds that the

application of a rule prescribed under subsection (a)(1)(B) of this section to any person or class or [FN2]

persons is not necessary to prevent the unfair or deceptive act or practice to which the rule relates, the

Commission may exempt such person or class from all or part of such rule. Section 553 of Title 5 shall

apply to action under this paragraph.

(3) Neither the pendency of a proceeding under this subsection respecting an exemption from a rule, nor

the pendency of judicial proceedings to review the Commission's action or failure to act under this

subsection, shall stay the applicability of such rule under subsection (a)(1)(B) of this section.

(h) Restriction on rulemaking authority of Commission respecting children's advertising proceedings

pending on May 28, 1980

The Commission shall not have any authority to promulgate any rule in the children's advertising

proceeding pending on May 28, 1980, or in any substantially similar proceeding on the basis of a

determination by the Commission that such advertising constitutes an unfair act or practice in or affecting

commerce.

(i) Meetings with outside parties

(1) For purposes of this subsection, the term "outside party" means any person other than (A) a

Commissioner; (B) an officer or employee of the Commission; or (C) any person who has entered into a

contract or any other agreement or arrangement with the Commission to provide any goods or services

(including consulting services) to the Commission.

(2) Not later than 60 days after May 28, 1980, the Commission shall publish a proposed rule, and not later

than 180 days after May 28, 1980, the Commission shall promulgate a final rule, which shall authorize

the Commission or any Commissioner to meet with any outside party concerning any rulemaking

proceeding of the Commission. Such rule shall provide that-(A) notice of any such meeting shall be included in any weekly calendar prepared by the Commission;

and

(B) a verbatim record or a summary of any such meeting, or of any communication relating to any such

meeting, shall be kept, made available to the public, and included in the rulemaking record.

(j) Communications by investigative personnel with staff of Commission concerning matters outside

rulemaking record prohibited

Not later than 60 days after May 28, 1980, the Commission shall publish a proposed rule, and not later

than 180 days after May 28, 1980, the Commission shall promulgate a final rule, which shall prohibit any

officer, employee, or agent of the Commission with any investigative responsibility or other responsibility

relating to any rulemaking proceeding within any operating bureau of the Commission, from

communicating or causing to be communicated to any Commissioner or to the personal staff of any

Commissioner any fact which is relevant to the merits of such proceeding and which is not on the

rulemaking record of such proceeding, unless such communication is made available to the public and is

included in the rulemaking record. The provisions of this subsection shall not apply to any

communication to the extent such communication is required for the disposition of ex parte matters as

authorized by law.

[FN1] So in original. Probably should be "(other than".

[FN2] So in original. Probably should be "of".

§ 57a-1. Omitted

§ 57b. Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive

acts or practices

(Sec. 19)

(a) Suits by Commission against persons, partnerships, or corporations; jurisdiction; relief for dishonest

or fraudulent acts

(1) If any person, partnership, or corporation violates any rule under this subchapter respecting unfair or

deceptive acts or practices (other than an interpretive rule, or a rule violation of which the Commission

has provided is not an unfair or deceptive act or practice in violation of section 45(a) of this title), then the

Commission may commence a civil action against such person, partnership, or corporation for relief

under subsection (b) of this section in a United States district court or in any court of competent

jurisdiction of a State.

(2) If any person, partnership, or corporation engages in any unfair or deceptive act or practice (within the

meaning of section 45(a)(1) of this title) with respect to which the Commission has issued a final cease

and desist order which is applicable to such person, partnership, or corporation, then the Commission may

commence a civil action against such person, partnership, or corporation in a United States district court

or in any court of competent jurisdiction of a State. If the Commission satisfies the court that the act or

practice to which the cease and desist order relates is one which a reasonable man would have known

under the circumstances was dishonest or fraudulent, the court may grant relief under subsection (b) of

this section.

(b) Nature of relief available

The court in an action under subsection (a) of this section shall have jurisdiction to grant such relief as the

court finds necessary to redress injury to consumers or other persons, partnerships, and corporations

resulting from the rule violation or the unfair or deceptive act or practice, as the case may be. Such relief

may include, but shall not be limited to, rescission or reformation of contracts, the refund of money or

return of property, the payment of damages, and public notification respecting the rule violation or the

unfair or deceptive act or practice, as the case may be; except that nothing in this subsection is intended

to authorize the imposition of any exemplary or punitive damages.

proceedings to injured persons, etc.

(1) If (A) a cease and desist order issued under section 45(b) of this title has become final under section

45(g) of this title with respect to any person's, partnership's, or corporation's rule violation or unfair or

deceptive act or practice, and (B) an action under this section is brought with respect to such person's

[FN1] partnership's, or corporation's rule violation or act or practice, then the findings of the Commission

as to the material facts in the proceeding under section 45(b) of this title with respect to such person's,

partnership's, or corporation's rule violation or act or practice, shall be conclusive unless (i) the terms of

such cease and desist order expressly provide that the Commission's findings shall not be conclusive, or

(ii) the order became final by reason of section 45(g)(1) of this title, in which case such finding shall be

conclusive if supported by evidence.

(2) The court shall cause notice of an action under this section to be given in a manner which is

reasonably calculated, under all of the circumstances, to apprise the persons, partnerships, and

corporations allegedly injured by the defendant's rule violation or act or practice of the pendency of such

action. Such notice may, in the discretion of the court, be given by publication.

(d) Time for bringing of actions

No action may be brought by the Commission under this section more than 3 years after the rule violation

to which an action under subsection (a)(1) of this section relates, or the unfair or deceptive act or practice

to which an action under subsection (a)(2) of this section relates; except that if a cease and desist order

with respect to any person's, partnership's, or corporation's rule violation or unfair or deceptive act or

practice has become final and such order was issued in a proceeding under section 45(b) of this title

which was commenced not later than 3 years after the rule violation or act or practice occurred, a civil

action may be commenced under this section against such person, partnership, or corporation at any time

before the expiration of one year after such order becomes final.

(e) Availability of additional Federal or State remedies; other authority of Commission unaffected

Remedies provided in this section are in addition to, and not in lieu of, any other remedy or right of action

provided by State or Federal law. Nothing in this section shall be construed to affect any authority of the

Commission under any other provision of law.

§ 57b-1. Civil investigative demands

(Sec. 20)

(a) Definitions

For purposes of this section:

(1) The terms "civil investigative demand" and "demand" mean any demand issued by the Commission

under subsection (c)(1) of this section.

(2) The term "Commission investigation" means any inquiry conducted by a Commission investigator

for the purpose of ascertaining whether any person is or has been engaged in any unfair or deceptive

acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title) or in any

antitrust violations.

(3) The term "Commission investigator" means any attorney or investigator employed by the

Commission who is charged with the duty of enforcing or carrying into effect any provisions relating to

unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of

this title) or any provisions relating to antitrust violations.

(4) The term "custodian" means the custodian or any deputy custodian designated under section 57b2(b)(2)(A) of this title.

(5) The term "documentary material" includes the original or any copy of any book, record, report,

memorandum, paper, communication, tabulation, chart, or other document.

(6) The term "person" means any natural person, partnership, corporation, association, or other legal

entity, including any person acting under color or authority of State law.

(7) The term "violation" means any act or omission constituting an unfair or deceptive act or practice in

or affecting commerce (within the meaning of section 45(a)(1) of this title) or any antitrust violation.

(8) The term "antitrust violation" means-(A) any unfair method of competition (within the meaning of section 45(a)(1) of this title);

(B) any violation of the Clayton Act [15 U.S.C.A. § 12 et seq.] or of any other Federal statute that

prohibits, or makes available to the Commission a civil remedy with respect to, any restraint upon or

monopolization of interstate or foreign trade or commerce;

6201 et seq.], any violation of any of the foreign antitrust laws (as defined in section 12 of such Act

[15 U.S.C.A. § 6211] ) with respect to which a request is made under section 3 of such Act [15

U.S.C.A. § 6202]; or

(D) any activity in preparation for a merger, acquisition, joint venture, or similar transaction, which if

consummated, may result in any such unfair method of competition or in any such violation.

(b) Actions conducted by Commission respecting unfair or deceptive acts or practices in or affecting

commerce

For the purpose of investigations performed pursuant to this section with respect to unfair or deceptive

acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title), all actions

of the Commission taken under section 46 and section 49 of this title shall be conducted pursuant to

subsection (c) of this section.

testimony

(1) Whenever the Commission has reason to believe that any person may be in possession, custody, or

control of any documentary material or tangible things, or may have any information, relevant to unfair or

deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title),

or to antitrust violations, the Commission may, before the institution of any proceedings under this

subchapter, issue in writing, and cause to be served upon such person, a civil investigative demand

requiring such person to produce such documentary material for inspection and copying or reproduction,

to submit such tangible things, to file written reports or answers to questions, to give oral testimony

concerning documentary material or other information, or to furnish any combination of such material,

answers, or testimony.

(2) Each civil investigative demand shall state the nature of the conduct constituting the alleged violation

which is under investigation and the provision of law applicable to such violation.

(3) Each civil investigative demand for the production of documentary material shall-(A) describe each class of documentary material to be produced under the demand with such

definiteness and certainty as to permit such material to be fairly identified;

(B) prescribe a return date or dates which will provide a reasonable period of time within which the

material so demanded may be assembled and made available for inspection and copying or

reproduction; and

(4) Each civil investigative demand for the submission of tangible things shall-(A) describe each class of tangible things to be submitted under the demand with such definiteness and

certainty as to permit such things to be fairly identified;

(B) prescribe a return date or dates which will provide a reasonable period of time within which the

things so demanded may be assembled and submitted; and

(5) Each civil investigative demand for written reports or answers to questions shall-(A) propound with definiteness and certainty the reports to be produced or the questions to be

answered;

(B) prescribe a date or dates at which time written reports or answers to questions shall be submitted;

and

(6) Each civil investigative demand for the giving of oral testimony shall-(A) prescribe a date, time, and place at which oral testimony shall be commenced; and

(B) identify a Commission investigator who shall conduct the investigation and the custodian to whom

the transcript of such investigation shall be submitted.

(7)(A) Any civil investigative demand may be served by any Commission investigator at any place within

the territorial jurisdiction of any court of the United States.

(B) Any such demand or any enforcement petition filed under this section may be served upon any person

who is not found within the territorial jurisdiction of any court of the United States, in such manner as the

Federal Rules of Civil Procedure prescribe for service in a foreign nation.

consistent with due process, the United States District Court for the District of Columbia shall have the

same jurisdiction to take any action respecting compliance with this section by such person that such

district court would have if such person were personally within the jurisdiction of such district court.

(8) Service of any civil investigative demand or any enforcement petition filed under this section may be

made upon a partnership, corporation, association, or other legal entity by-(A) delivering a duly executed copy of such demand or petition to any partner, executive officer,

managing agent, or general agent of such partnership, corporation, association, or other legal entity, or

to any agent of such partnership, corporation, association, or other legal entity authorized by

appointment or by law to receive service of process on behalf of such partnership, corporation,

association, or other legal entity;

(B) delivering a duly executed copy of such demand or petition to the principal office or place of

business of the partnership, corporation, association, or other legal entity to be served; or

receipt requested, duly addressed to such partnership, corporation, association, or other legal entity at its

principal office or place of business.

(9) Service of any civil investigative demand or of any enforcement petition filed under this section may

be made upon any natural person by-(A) delivering a duly executed copy of such demand or petition to the person to be served; or

(B) depositing a duly executed copy in the United States mails by registered or certified mail, return

receipt requested, duly addressed to such person at his residence or principal office or place of business.

(10) A verified return by the individual serving any civil investigative demand or any enforcement

petition filed under this section setting forth the manner of such service shall be proof of such service. In

the case of service by registered or certified mail, such return shall be accompanied by the return post

office receipt of delivery of such demand or enforcement petition.

(11) The production of documentary material in response to a civil investigative demand shall be made

under a sworn certificate, in such form as the demand designates, by the person, if a natural person, to

whom the demand is directed or, if not a natural person, by any person having knowledge of the facts and

circumstances relating to such production, to the effect that all of the documentary material required by

the demand and in the possession, custody, or control of the person to whom the demand is directed has

been produced and made available to the custodian.

(12) The submission of tangible things in response to a civil investigative demand shall be made under a

sworn certificate, in such form as the demand designates, by the person to whom the demand is directed

or, if not a natural person, by any person having knowledge of the facts and circumstances relating to such

production, to the effect that all of the tangible things required by the demand and in the possession,

custody, or control of the person to whom the demand is directed have been submitted to the custodian.

(13) Each reporting requirement or question in a civil investigative demand shall be answered separately

and fully in writing under oath, unless it is objected to, in which event the reasons for the objection shall

be stated in lieu of an answer, and it shall be submitted under a sworn certificate, in such form as the

demand designates, by the person, if a natural person, to whom the demand is directed or, if not a natural

person, by any person responsible for answering each reporting requirement or question, to the effect that

all information required by the demand and in the possession, custody, control, or knowledge of the

person to whom the demand is directed has been submitted.

(14)(A) Any Commission investigator before whom oral testimony is to be taken shall put the witness on

oath or affirmation and shall personally, or by any individual acting under his direction and in his

presence, record the testimony of the witness. The testimony shall be taken stenographically and

transcribed. After the testimony is fully transcribed, the Commission investigator before whom the

testimony is taken shall promptly transmit a copy of the transcript of the testimony to the custodian.

(B) Any Commission investigator before whom oral testimony is to be taken shall exclude from the place

where the testimony is to be taken all other persons except the person giving the testimony, his attorney,

the officer before whom the testimony is to be taken, and any stenographer taking such testimony.

judicial district of the United States in which such person resides, is found, or transacts business, or in

such other place as may be agreed upon by the Commission investigator before whom the oral testimony

of such person is to be taken and such person.

(D)(i) Any person compelled to appear under a civil investigative demand for oral testimony pursuant to

this section may be accompanied, represented, and advised by an attorney. The attorney may advise such

person, in confidence, either upon the request of such person or upon the initiative of the attorney, with

respect to any question asked of such person.

(ii) Such person or attorney may object on the record to any question, in whole or in part, and shall briefly

state for the record the reason for the objection. An objection may properly be made, received, and

entered upon the record when it is claimed that such person is entitled to refuse to answer the question on

grounds of any constitutional or other legal right or privilege, including the privilege against selfincrimination. Such person shall not otherwise object to or refuse to answer any question, and shall not

himself or through his attorney otherwise interrupt the oral examination. If such person refuses to answer

any question, the Commission may petition the district court of the United States pursuant to this section

for an order compelling such person to answer such question.

(iii) If such person refuses to answer any question on grounds of the privilege against self-incrimination,

the testimony of such person may be compelled in accordance with the provisions of section 6004 of Title

18.

(E)(i) After the testimony of any witness is fully transcribed, the Commission investigator shall afford the

witness (who may be accompanied by an attorney) a reasonable opportunity to examine the transcript.

The transcript shall be read to or by the witness, unless such examination and reading are waived by the

witness. Any changes in form or substance which the witness desires to make shall be entered and

identified upon the transcript by the Commission investigator with a statement of the reasons given by the

witness for making such changes. The transcript shall then be signed by the witness, unless the witness in

writing waives the signing, is ill, cannot be found, or refuses to sign.

(ii) If the transcript is not signed by the witness during the 30-day period following the date upon which

the witness is first afforded a reasonable opportunity to examine it, the Commission investigator shall

sign the transcript and state on the record the fact of the waiver, illness, absence of the witness, or the

refusal to sign, together with any reasons given for the failure to sign.

(F) The Commission investigator shall certify on the transcript that the witness was duly sworn by him

and that the transcript is a true record of the testimony given by the witness, and the Commission

investigator shall promptly deliver the transcript or send it by registered or certified mail to the custodian.

(G) The Commission investigator shall furnish a copy of the transcript (upon payment of reasonable

charges for the transcript) to the witness only, except that the Commission may for good cause limit such

witness to inspection of the official transcript of his testimony.

(H) Any witness appearing for the taking of oral testimony pursuant to a civil investigative demand shall

be entitled to the same fees and mileage which are paid to witnesses in the district courts of the United

States.

(d) Procedures for demand material

Materials received as a result of a civil investigative demand shall be subject to the procedures established

in section 57b-2 of this title.

(e) Petition for enforcement

Whenever any person fails to comply with any civil investigative demand duly served upon him under

this section, or whenever satisfactory copying or reproduction of material requested pursuant to the

demand cannot be accomplished and such person refuses to surrender such material, the Commission,

through such officers or attorneys as it may designate, may file, in the district court of the United States

for any judicial district in which such person resides, is found, or transacts business, and serve upon such

person, a petition for an order of such court for the enforcement of this section. All process of any court

to which application may be made as provided in this subsection may be served in any judicial district.

(f) Petition for order modifying or setting aside demand

(1) Not later than 20 days after the service of any civil investigative demand upon any person under

subsection (c) of this section, or at any time before the return date specified in the demand, whichever

period is shorter, or within such period exceeding 20 days after service or in excess of such return date as

may be prescribed in writing, subsequent to service, by any Commission investigator named in the

demand, such person may file with the Commission a petition for an order by the Commission modifying

or setting aside the demand.

(2) The time permitted for compliance with the demand in whole or in part, as deemed proper and ordered

by the Commission, shall not run during the pendency of such petition at the Commission, except that

such person shall comply with any portions of the demand not sought to be modified or set aside. Such

petition shall specify each ground upon which the petitioner relies in seeking such relief, and may be

based upon any failure of the demand to comply with the provisions of this section, or upon any

constitutional or other legal right or privilege of such person.

(g) Custodial control of documentary material, tangible things, reports, etc.

At any time during which any custodian is in custody or control of any documentary material, tangible

things, reports, answers to questions, or transcripts of oral testimony given by any person in compliance

with any civil investigative demand, such person may file, in the district court of the United States for the

judicial district within which the office of such custodian is situated, and serve upon such custodian, a

petition for an order of such court requiring the performance by such custodian of any duty imposed upon

him by this section or section 57b-2 of this title.

(h) Jurisdiction of court

Whenever any petition is filed in any district court of the United States under this section, such court shall

have jurisdiction to hear and determine the matter so presented, and to enter such order or orders as may

be required to carry into effect the provisions of this section. Any final order so entered shall be subject

to appeal pursuant to section 1291 of Title 28. Any disobedience of any final order entered under this

section by any court shall be punished as a contempt of such court.

(i) Commission authority to issue subpoenas or make demand for information

Notwithstanding any other provision of law, the Commission shall have no authority to issue a subpoena

or make a demand for information, under authority of this subchapter or any other provision of law,

unless such subpoena or demand for information is signed by a Commissioner acting pursuant to a

Commission resolution. The Commission shall not delegate the power conferred by this section to sign

subpoenas or demands for information to any other person.

(j) Applicability of this section

The provisions of this section shall not-(1) apply to any proceeding under section 45(b) of this title, any proceeding under section 11(b) of the

Clayton Act (15 U.S.C. 21(b)), or any adjudicative proceeding under any other provision of law; or

(2) apply to or affect the jurisdiction, duties, or powers of any agency of the Federal Government, other

than the Commission, regardless of whether such jurisdiction, duties, or powers are derived in whole or

in part, by reference to this subchapter.

§ 57b-2. Confidentiality

(Sec. 21)

(a) Definitions

For purposes of this section:

(1) The term "material" means documentary material, tangible things, written reports or answers to

questions, and transcripts of oral testimony.

(2) The term "Federal agency" has the meaning given it in section 552(e) of Title 5.

(b) Procedures respecting documents, tangible things, or transcripts of oral testimony received pursuant to

compulsory process or investigation

(1) With respect to any document, tangible thing, or transcript of oral testimony received by the

Commission pursuant to compulsory process in an investigation, a purpose of which is to determine

whether any person may have violated any provision of the laws administered by the Commission, the

procedures established in paragraph (2) through paragraph (7) shall apply.

(2)(A) The Commission shall designate a duly authorized agent to serve as custodian of documentary

material, tangible things, or written reports or answers to questions, and transcripts of oral testimony, and

such additional duly authorized agents as the Commission shall determine from time to time to be

necessary to serve as deputies to the custodian.

(B) Any person upon whom any demand for the production of documentary material has been duly served

shall make such material available for inspection and copying or reproduction to the custodian designated

in such demand at the principal place of business of such person (or at such other place as such custodian

and such person thereafter may agree and prescribe in writing or as the court may direct pursuant to

section 57b-1(h) of this title) on the return date specified in such demand (or on such later date as such

custodian may prescribe in writing). Such person may upon written agreement between such person and

the custodian substitute copies for originals of all or any part of such material.

(3)(A) The custodian to whom any documentary material, tangible things, written reports or answers to

questions, and transcripts of oral testimony are delivered shall take physical possession of such material,

reports or answers, and transcripts, and shall be responsible for the use made of such material, reports or

answers, and transcripts, and for the return of material, pursuant to the requirements of this section.

(B) The custodian may prepare such copies of the documentary material, written reports or answers to

questions, and transcripts of oral testimony, and may make tangible things available, as may be required

for official use by any duly authorized officer or employee of the Commission under regulations which

shall be promulgated by the Commission. Notwithstanding subparagraph (C), such material, things, and

transcripts may be used by any such officer or employee in connection with the taking of oral testimony

under this section.

documentary material, tangible things, reports or answers to questions, and transcripts of oral testimony

shall be available for examination by any individual other than a duly authorized officer or employee of

the Commission without the consent of the person who produced the material, things, or transcripts.

Nothing in this section is intended to prevent disclosure to either House of the Congress or to any

committee or subcommittee of the Congress, except that the Commission immediately shall notify the

owner or provider of any such information of a request for information designated as confidential by the

owner or provider.

(D) While in the possession of the custodian and under such reasonable terms and conditions as the

Commission shall prescribe--

(i) documentary material, tangible things, or written reports shall be available for examination by the

person who produced the material, or by any duly authorized representative of such person; and

(ii) answers to questions in writing and transcripts of oral testimony shall be available for examination

by the person who produced the testimony or by his attorney.

(4) Whenever the Commission has instituted a proceeding against a person, partnership, or corporation,

the custodian may deliver to any officer or employee of the Commission documentary material, tangible

things, written reports or answers to questions, and transcripts of oral testimony for official use in

connection with such proceeding. Upon the completion of the proceeding, the officer or employee shall

return to the custodian any such material so delivered which has not been received into the record of the

proceeding.

(5) If any documentary material, tangible things, written reports or answers to questions, and transcripts

of oral testimony have been produced in the course of any investigation by any person pursuant to

compulsory process and -(A) any proceeding arising out of the investigation has been completed; or

(B) no proceeding in which the material may be used has been commenced within a reasonable time

after completion of the examination and analysis of all such material and other information assembled

in the course of the investigation;

then the custodian shall, upon written request of the person who produced the material, return to the

person any such material which has not been received into the record of any such proceeding (other than

copies of such material made by the custodian pursuant to paragraph (3)(B)).

(6) The custodian of any documentary material, written reports or answers to questions, and transcripts of

oral testimony may deliver to any officers or employees of appropriate Federal law enforcement agencies,

in response to a written request, copies of such material for use in connection with an investigation or

proceeding under the jurisdiction of any such agency. The custodian of any tangible things may make

such things available for inspection to such persons on the same basis. Such materials shall not be made

available to any such agency until the custodian receives certification of any officer of such agency that

such information will be maintained in confidence and will be used only for official law enforcement

purposes. Such documentary material, results of inspections of tangible things, written reports or answers

to questions, and transcripts of oral testimony may be used by any officer or employee of such agency

only in such manner and subject to such conditions as apply to the Commission under this section. The

custodian may make such materials available to any State law enforcement agency upon the prior

certification of any officer of such agency that such information will be maintained in confidence and will

be used only for official law enforcement purposes. The custodian may make such material available to

any foreign law enforcement agency upon the prior certification of an appropriate official of any such

foreign law enforcement agency, either by a prior agreement or memorandum of understanding with the

Commission or by other written certification, that such material will be maintained in confidence and will

be used only for official law enforcement purposes, if-(A) the foreign law enforcement agency has set forth a bona fide legal basis for its authority to maintain

the material in confidence;

(B) the materials are to be used for purposes of investigating, or engaging in enforcement proceedings

related to, possible violations of--

(i) foreign laws prohibiting fraudulent or deceptive commercial practices, or other practices

substantially similar to practices prohibited by any law administered by the Commission;

(ii) a law administered by the Commission, if disclosure of the material would further a Commission

investigation or enforcement proceeding; or

(iii) with the approval of the Attorney General, other foreign criminal laws, if such foreign criminal

laws are offenses defined in or covered by a criminal mutual legal assistance treaty in force between

the government of the United States and the foreign law enforcement agency's government;

a Federal credit union, the National Credit Union Administration, has given its prior approval if the

materials to be provided under subparagraph (B) are requested by the foreign law enforcement agency

for the purpose of investigating, or engaging in enforcement proceedings based on, possible violations

of law by a bank, a savings and loan institution described in section 57a(f)(3) of this title, or a Federal

credit union described in section 57a(f)(4) of this title; and

(D) the foreign law enforcement agency is not from a foreign state that the Secretary of State has

determined, in accordance with section 2405(j) of the Appendix to Title 50, has repeatedly provided

support for acts of international terrorism, unless and until such determination is rescinded pursuant to

section 2405(j)(4) of the Appendix to Title 50.

Nothing in the preceding sentence authorizes the disclosure of material obtained in connection with the

administration of the Federal antitrust laws or foreign antitrust laws (as defined in paragraphs (5) and (7),

respectively, of section 6211 of this title to any officer or employee of a foreign law enforcement agency.

(7) In the event of the death, disability, or separation from service in the Commission of the custodian of

any documentary material, tangible things, written reports or answers to questions, and transcripts of oral

testimony produced under any demand issued under this subchapter, or the official relief of the custodian

from responsibility for the custody and control of such material, the Commission promptly shall-(A) designate under paragraph (2)(A) another duly authorized agent to serve as custodian of such

material; and

(B) transmit in writing to the person who produced the material or testimony notice as to the identity

and address of the successor so designated.

Any successor designated under paragraph (2)(A) as a result of the requirements of this paragraph shall

have (with regard to the material involved) all duties and responsibilities imposed by this section upon his

predecessor in office with regard to such material, except that he shall not be held responsible for any

default or dereliction which occurred before his designation.

(1) All information reported to or otherwise obtained by the Commission which is not subject to the

requirements of subsection (b) of this section shall be considered confidential when so marked by the

person supplying the information and shall not be disclosed, except in accordance with the procedures

established in paragraph (2) and paragraph (3).

(2) If the Commission determines that a document marked confidential by the person supplying it may be

disclosed because it is not a trade secret or commercial or financial information which is obtained from

any person and which is privileged or confidential, within the meaning of section 46(f) of this title, then

the Commission shall notify such person in writing that the Commission intends to disclose the document

at a date not less than 10 days after the date of receipt of notification.

(3) Any person receiving such notification may, if he believes disclosure of the document would cause

disclosure of a trade secret, or commercial or financial information which is obtained from any person

and which is privileged or confidential, within the meaning of section 46(f) of this title, before the date set

for release of the document, bring an action in the district court of the United States for the district within

which the documents are located or in the United States District Court for the District of Columbia to

restrain disclosure of the document. Any person receiving such notification may file with the appropriate

district court or court of appeals of the United States, as appropriate, an application for a stay of

disclosure. The documents shall not be disclosed until the court has ruled on the application for a stay.

(d) Particular disclosures allowed

(1) The provisions of subsection (c) of this section shall not be construed to prohibit-(A) the disclosure of information to either House of the Congress or to any committee or subcommittee

of the Congress, except that the Commission immediately shall notify the owner or provider of any

such information of a request for information designated as confidential by the owner or provider;

(B) the disclosure of the results of any investigation or study carried out or prepared by the

Commission, except that no information shall be identified nor shall information be disclosed in such a

manner as to disclose a trade secret of any person supplying the trade secret, or to disclose any

commercial or financial information which is obtained from any person and which is privileged or

confidential;

judicial proceedings to which the Commission is a party; or

(D) the disclosure to a Federal agency of disaggregated information obtained in accordance with section

3512 of Title 44, except that the recipient agency shall use such disaggregated information for

economic, statistical, or policymaking purposes only, and shall not disclose such information in an

individually identifiable form.

(2) Any disclosure of relevant and material information in Commission adjudicative proceedings or in

judicial proceedings to which the Commission is a party shall be governed by the rules of the

Commission for adjudicative proceedings or by court rules or orders, except that the rules of the

Commission shall not be amended in a manner inconsistent with the purposes of this section.

(e) Effect on other statutory provisions limiting disclosure

Nothing in this section shall supersede any statutory provision which expressly prohibits or limits

particular disclosures by the Commission, or which authorizes disclosures to any other Federal agency.

(f) Exemption from public disclosure

(1) In general

Any material which is received by the Commission in any investigation, a purpose of which is to

determine whether any person may have violated any provision of the laws administered by the

Commission, and which is provided pursuant to any compulsory process under this subchapter or which

is provided voluntarily in place of such compulsory process shall not be required to be disclosed under

section 552 of Title 5, or any other provision of law, except as provided in paragraph (2)(B) of this

section.

(2) Material obtained from a foreign source

(A) In general

Except as provided in subparagraph (B) of this paragraph, the Commission shall not be required to

disclose under section 552 of Title 5, or any other provision of law-(i) any material obtained from a foreign law enforcement agency or other foreign government

agency, if the foreign law enforcement agency or other foreign government agency has requested

confidential treatment, or has precluded such disclosure under other use limitations, as a condition

of providing the material;

(ii) any material reflecting a consumer complaint obtained from any other foreign source, if that

foreign source supplying the material has requested confidential treatment as a condition of

providing the material; or

(iii) any material reflecting a consumer complaint submitted to a Commission reporting mechanism

sponsored in part by foreign law enforcement agencies or other foreign government agencies.

(B) Savings provision

Nothing in this subsection shall authorize the Commission to withhold information from the Congress

or prevent the Commission from complying with an order of a court of the United States in an action

commenced by the United States or the Commission.

§ 57b-2a. Confidentiality and delayed notice of compulsory process for certain third parties

(Sec. 21a)

(a) Application with other laws

The Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) and chapter 121 of Title 18, shall apply with

respect to the Commission, except as otherwise provided in this section.

(b) Procedures for delay of notification or prohibition of disclosure

The procedures for delay of notification or prohibition of disclosure under the Right to Financial Privacy

Act (12 U.S.C. 3401 et seq.) and chapter 121 of Title 18, including procedures for extensions of such

delays or prohibitions, shall be available to the Commission, provided that, notwithstanding any provision

therein-(1) a court may issue an order delaying notification or prohibiting disclosure (including extending such

an order) in accordance with the procedures of section 1109 of the Right to Financial Privacy Act (12

U.S.C. 3409) (if notification would otherwise be required under that Act), or section 2705 of Title 18,

(if notification would otherwise be required under chapter 121 of that title), if the presiding judge or

magistrate judge finds that there is reason to believe that such notification or disclosure may cause an

adverse result as defined in subsection (g) of this section; and

(2) if notification would otherwise be required under chapter 121 of Title 18, the Commission may

delay notification (including extending such a delay) upon the execution of a written certification in

accordance with the procedures of section 2705 of that title if the Commission finds that there is reason

to believe that notification may cause an adverse result as defined in subsection (g) of this section.

(1) In general

If neither notification nor delayed notification by the Commission is required under the Right to

Financial Privacy Act (12 U.S.C. 3401 et seq.) or chapter 121 of Title 18, the Commission may apply

ex parte to a presiding judge or magistrate judge for an order prohibiting the recipient of compulsory

process issued by the Commission from disclosing to any other person the existence of the process,

notwithstanding any law or regulation of the United States, or under the constitution, or any law or

regulation, of any State, political subdivision of a State, territory of the United States, or the District of

Columbia. The presiding judge or magistrate judge may enter such an order granting the requested

prohibition of disclosure for a period not to exceed 60 days if there is reason to believe that disclosure

may cause an adverse result as defined in subsection (g) of this section. The presiding judge or

magistrate judge may grant extensions of this order of up to 30 days each in accordance with this

subsection, except that in no event shall the prohibition continue in force for more than a total of 9

months.

(2) Application

This subsection shall apply only in connection with compulsory process issued by the Commission

where the recipient of such process is not a subject of the investigation or proceeding at the time such

process is issued.

(3) Limitation

No order issued under this subsection shall prohibit any recipient from disclosing to a Federal agency

that the recipient has received compulsory process from the Commission.

(d) No liability for failure to notify

If neither notification nor delayed notification by the Commission is required under the Right to Financial

Privacy Act (12 U.S.C. 3401 et seq.) or chapter 121 of Title 18, the recipient of compulsory process

issued by the Commission under this Act shall not be liable under any law or regulation of the United

States, or under the constitution, or any law or regulation, of any State, political subdivision of a State,

territory of the United States, or the District of Columbia, or under any contract or other legally

enforceable agreement, for failure to provide notice to any person that such process has been issued or

that the recipient has provided information in response to such process. The preceding sentence does not

exempt any recipient from liability for-(1) the underlying conduct reported;

(2) a failure to comply with the record retention requirements under section 1104(c) of the Right to

Financial Privacy Act (12 U.S.C. 3404), where applicable; or

(3) any failure to comply with any obligation the recipient may have to disclose to a Federal agency that

the recipient has received compulsory process from the Commission or intends to provide or has

provided information to the Commission in response to such process.

(e) Venue and procedure

(1) In general

All judicial proceedings initiated by the Commission under the Right to Financial Privacy Act (12

U.S.C. 3401 et seq.), chapter 121 of Title 18, or this section may be brought in the United States

District Court for the District of Columbia or any other appropriate United States District Court. All ex

parte applications by the Commission under this section related to a single investigation may be brought

in a single proceeding.

(2) In camera proceedings

Upon application by the Commission, all judicial proceedings pursuant to this section shall be held in

camera and the records thereof sealed until expiration of the period of delay or such other date as the

presiding judge or magistrate judge may permit.

(f) Section not to apply to antitrust investigations or proceedings

This section shall not apply to an investigation or proceeding related to the administration of Federal

antitrust laws or foreign antitrust laws (as defined in paragraphs (5) and (7), respectively, of section 6211

of this title.

(g) Adverse result defined

For purposes of this section the term "adverse result" means-(1) endangering the life or physical safety of an individual;

(2) flight from prosecution;

(3) the destruction of, or tampering with, evidence;

(4) the intimidation of potential witnesses; or

(5) otherwise seriously jeopardizing an investigation or proceeding related to fraudulent or deceptive

commercial practices or persons involved in such practices, or unduly delaying a trial related to such

practices or persons involved in such practices, including, but not limited to, by-(A) the transfer outside the territorial limits of the United States of assets or records related to

fraudulent or deceptive commercial practices or related to persons involved in such practices;

(B) impeding the ability of the Commission to identify persons involved in fraudulent or deceptive

commercial practices, or to trace the source or disposition of funds related to such practices; or

Commission.

§ 57b-2b. Protection for voluntary provision of information

(Sec. 21b)

(a) In general

(1) No liability for providing certain material

An entity described in paragraphs (2) or (3) of subsection (d) of this section that voluntarily provides

material to the Commission that such entity reasonably believes is relevant to-(A) a possible unfair or deceptive act or practice, as defined in section 45(a) of this title; or

(B) assets subject to recovery by the Commission, including assets located in foreign jurisdictions;

shall not be liable to any person under any law or regulation of the United States, or under the

constitution, or any law or regulation, of any State, political subdivision of a State, territory of the

United States, or the District of Columbia, for such provision of material or for any failure to provide

notice of such provision of material or of intention to so provide material.

(2) Limitations

Nothing in this subsection shall be construed to exempt any such entity from liability-(A) for the underlying conduct reported; or

(B) to any Federal agency for providing such material or for any failure to comply with any obligation

the entity may have to notify a Federal agency prior to providing such material to the Commission.

(b) Certain financial institutions

An entity described in paragraph (1) of subsection (d) of this section shall, in accordance with section

5318(g)(3) of Title 31, be exempt from liability for making a voluntary disclosure to the Commission of

any possible violation of law or regulation, including-(1) a disclosure regarding assets, including assets located in foreign jurisdictions-(A) related to possibly fraudulent or deceptive commercial practices;

(B) related to persons involved in such practices; or

(2) a disclosure regarding suspicious chargeback rates related to possibly fraudulent or deceptive

commercial practices.

Any entity described in subsection (d) of this section that voluntarily provides consumer complaints sent

to it, or information contained therein, to the Commission shall not be liable to any person under any law

or regulation of the United States, or under the constitution, or any law or regulation, of any State,

political subdivision of a State, territory of the United States, or the District of Columbia, for such

provision of material or for any failure to provide notice of such provision of material or of intention to so

provide material. This subsection shall not provide any exemption from liability for the underlying

conduct.

(d) Application

This section applies to the following entities, whether foreign or domestic:

(1) A financial institution as defined in section 5312 of Title 31.

(2) To the extent not included in paragraph (1), a bank or thrift institution, a commercial bank or trust

company, an investment company, a credit card issuer, an operator of a credit card system, and an

issuer, redeemer, or cashier of travelers' checks, money orders, or similar instruments.

(3) A courier service, a commercial mail receiving agency, an industry membership organization, a

payment system provider, a consumer reporting agency, a domain name registrar or registry acting as

such, and a provider of alternative dispute resolution services.

(4) An Internet service provider or provider of telephone services.

§ 57b-3. Rulemaking process

(Sec. 22)

(a) Definitions

For purposes of this section:

(1) The term "rule" means any rule promulgated by the Commission under section 46 or section 57a of

this title, except that such term does not include interpretive rules, rules involving Commission

management or personnel, general statements of policy, or rules relating to Commission organization,

procedure, or practice. Such term does not include any amendment to a rule unless the Commission-(A) estimates that such amendment will have an annual effect on the national economy of

$100,000,000 or more;

(B) estimates that such amendment will cause a substantial change in the cost or price of goods or

services which are used extensively by particular industries, which are supplied extensively in

particular geographic regions, or which are acquired in significant quantities by the Federal

Government, or by State or local governments; or

regulation under such amendment and upon consumers.

(2) The term "rulemaking" means any Commission process for formulating or amending a rule.

(b) Notice of proposed rulemaking; regulatory analysis; contents; issuance

(1) In any case in which the Commission publishes notice of a proposed rulemaking, the Commission

shall issue a preliminary regulatory analysis relating to the proposed rule involved. Each preliminary

regulatory analysis shall contain--

(A) a concise statement of the need for, and the objectives of, the proposed rule;

(B) a description of any reasonable alternatives to the proposed rule which may accomplish the stated

objective of the rule in a manner consistent with applicable law; and

analysis of the projected benefits and any adverse economic effects and any other effects, and of the

effectiveness of the proposed rule and each alternative in meeting the stated objectives of the proposed

rule.

(2) In any case in which the Commission promulgates a final rule, the Commission shall issue a final

regulatory analysis relating to the final rule. Each final regulatory analysis shall contain-(A) a concise statement of the need for, and the objectives of, the final rule;

(B) a description of any alternatives to the final rule which were considered by the Commission;

final rule;

(D) an explanation of the reasons for the determination of the Commission that the final rule will attain

its objectives in a manner consistent with applicable law and the reasons the particular alternative was

chosen; and

(E) a summary of any significant issues raised by the comments submitted during the public comment

period in response to the preliminary regulatory analysis, and a summary of the assessment by the

Commission of such issues.

(3)(A) In order to avoid duplication or waste, the Commission is authorized to-(i) consider a series of closely related rules as one rule for purposes of this subsection; and

(ii) whenever appropriate, incorporate any data or analysis contained in a regulatory analysis issued

under this subsection in the statement of basis and purpose to accompany any rule promulgated under

section 57a(a)(1)(B) of this title, and incorporate by reference in any preliminary or final regulatory

analysis information contained in a notice of proposed rulemaking or a statement of basis and purpose.

(B) The Commission shall include, in each notice of proposed rulemaking and in each publication of a

final rule, a statement of the manner in which the public may obtain copies of the preliminary and final

regulatory analyses. The Commission may charge a reasonable fee for the copying and mailing of

regulatory analyses. The regulatory analyses shall be furnished without charge or at a reduced charge if

the Commission determines that waiver or reduction of the fee is in the public interest because furnishing

the information primarily benefits the general public.

(4) The Commission is authorized to delay the completion of any of the requirements established in this

subsection by publishing in the Federal Register, not later than the date of publication of the final rule

involved, a finding that the final rule is being promulgated in response to an emergency which makes

timely compliance with the provisions of this subsection impracticable. Such publication shall include a

statement of the reasons for such finding.

(5) The requirements of this subsection shall not be construed to alter in any manner the substantive

standards applicable to any action by the Commission, or the procedural standards otherwise applicable to

such action.

(1) The contents and adequacy of any regulatory analysis prepared or issued by the Commission under

this section, including the adequacy of any procedure involved in such preparation or issuance, shall not

be subject to any judicial review in any court, except that a court, upon review of a rule pursuant to

section 57a(e) of this title, may set aside such rule if the Commission has failed entirely to prepare a

regulatory analysis.

(2) Except as specified in paragraph (1), no Commission action may be invalidated, remanded, or

otherwise affected by any court on account of any failure to comply with the requirements of this section.

(3) The provisions of this subsection do not alter the substantive or procedural standards otherwise

applicable to judicial review of any action by the Commission.

(d) Regulatory agenda; contents; publication dates in Federal Register

(1) The Commission shall publish at least semiannually a regulatory agenda. Each regulatory agenda

shall contain a list of rules which the Commission intends to propose or promulgate during the 12-month

period following the publication of the agenda. On the first Monday in October of each year, the

Commission shall publish in the Federal Register a schedule showing the dates during the current fiscal

year on which the semiannual regulatory agenda of the Commission will be published.

(2) For each rule listed in a regulatory agenda, the Commission shall-(A) describe the rule;

(B) state the objectives of and the legal basis for the rule; and

for advance notice of proposed rulemaking, notices of proposed rulemaking, and final action by the

Commission.

(3) Each regulatory agenda shall state the name, office address, and office telephone number of the

Commission officer or employee responsible for responding to any inquiry relating to each rule listed.

(4) The Commission shall not propose or promulgate a rule which was not listed on a regulatory agenda

unless the Commission publishes with the rule an explanation of the reasons the rule was omitted from

such agenda.

§ 57b-4. Good faith reliance on actions of Board of Governors

(Sec. 23)

(a) "Board of Governors" defined

For purposes of this section, the term "Board of Governors" means the Board of Governors of the Federal

Reserve System.

(b) Use as defense

Notwithstanding any other provision of law, if-(1) any person, partnership, or corporation engages in any conduct or practice which allegedly

constitutes a violation of any Federal law with respect to which the Board of Governors of the Federal

Reserve System has rulemaking authority; and

(2) such person, partnership, or corporation engaged in such conduct or practice in good faith reliance

upon, and in conformity with, any rule, regulation, statement of interpretation, or statement of approval

prescribed or issued by the Board of Governors under such Federal law;

then such good faith reliance shall constitute a defense in any administrative or judicial proceeding

commenced against such person, partnership, or corporation by the Commission under this subchapter or

in any administrative or judicial proceeding commenced against such person, partnership, or corporation

by the Attorney General of the United States, upon request made by the Commission, under any provision

of law.

The provisions of subsection (b) of this section shall apply regardless of whether any rule, regulation,

statement of interpretation, or statement of approval prescribed or issued by the Board of Governors is

amended, rescinded, or held to be invalid by judicial authority or any other authority after a person,

partnership, or corporation has engaged in any conduct or practice in good faith reliance upon, and in

conformity with, such rule, regulation, statement of interpretation, or statement of approval.

(d) Request for issuance of statement or interpretation concerning conduct or practice

If, in any case in which-(1) the Board of Governors has rulemaking authority with respect to any Federal law; and

(2) the Commission is authorized to enforce the requirements of such Federal law;

any person, partnership, or corporation submits a request to the Board of Governors for the issuance of

any statement of interpretation or statement of approval relating to any conduct or practice of such person,

partnership, or corporation which may be subject to the requirements of such Federal law, then the Board

of Governors shall dispose of such request as soon as practicable after the receipt of such request.

§ 57b-5. Agricultural cooperatives

(Sec. 24)

(a) The Commission shall not have any authority to conduct any study, investigation, or prosecution of

any agricultural cooperative for any conduct which, because of the provisions of sections 291 and 292 of

Title 7, is not a violation of any of the antitrust Acts or this subchapter.

(b) The Commission shall not have any authority to conduct any study or investigation of any agricultural

marketing orders.

§ 57c. Authorization of appropriations

(Sec. 25)

There are authorized to be appropriated to carry out the functions, powers, and duties of the Commission

not to exceed $92,700,000 for fiscal year 1994; not to exceed $99,000,000 for fiscal year 1995; not to

exceed $102,000,000 for fiscal year 1996; not to exceed $107,000, 000 for fiscal year 1997; and not to

exceed $111,000,000 for fiscal year 1998.

§ 57c-1. Staff exchanges

(Sec. 25a)

(a) In general

The Commission may-(1) retain or employ officers or employees of foreign government agencies on a temporary basis as

employees of the Commission pursuant to section 42 of this title or section 3101 or section 3109 of

Title 5; and

(2) detail officers or employees of the Commission to work on a temporary basis for appropriate foreign

government agencies.

(b) Reciprocity and reimbursement

The staff arrangements described in subsection (a) of this section need not be reciprocal. The

Commission may accept payment or reimbursement, in cash or in kind, from a foreign government

agency to which this section is applicable, or payment or reimbursement made on behalf of such agency,

for expenses incurred by the Commission, its members, and employees in carrying out such

arrangements.

A person appointed under subsection (a)(1) of this section shall be subject to the provisions of law

relating to ethics, conflicts of interest, corruption, and any other criminal or civil statute or regulation

governing the standards of conduct for Federal employees that are applicable to the type of appointment.

§ 57c-2. Reimbursement of expenses

(Sec. 26)

The Commission may accept payment or reimbursement, in cash or in kind, from a domestic or foreign

law enforcement agency, or payment or reimbursement made on behalf of such agency, for expenses

incurred by the Commission, its members, or employees in carrying out any activity pursuant to a statute

administered by the Commission without regard to any other provision of law. Any such payments or

reimbursements shall be considered a reimbursement to the appropriated funds of the Commission.

§ 58. Short title

(Sec. 27)

This subchapter may be cited as the "Federal Trade Commission Act".

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.