# Federal Trade Commission Act

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URL: https://www.frixlaw.com/law-library/documents/agency%3Aftc%3A03ea8ca95da5318b

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

Federal Trade Commission Act
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.
(c) Review of order; rehearing
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
(C) the Supreme Court, if an applicable petition for certiorari is pending.
(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
(C) upon the expiration of 30 days from the date of issuance of a mandate of the Supreme Court
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
(C) upon the expiration of 30 days from the date of issuance of a mandate of the Supreme Court
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.
(C) In the case of a violation through continuing failure to comply with a rule or with subsection (a)(1) of
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.
(c) Investigation of compliance with antitrust decrees
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
(C) whether the requesting agency's investigation or enforcement proceeding concerns acts or

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
(C) engage in further cooperation, and protect materials and information received from disclosure, as
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
(C) any other related lodging or subsistence.
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.
(c) Service of process; proof of service
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.
(c) Drug
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);
(C) to obtain judicial review of a rule prescribed by the Commission, or a cease and desist order issued
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.

(C) For purposes of this paragraph (with respect to representation before the Supreme Court), the term
"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.
(c) Foreign litigation
(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).
(C) The Commission shall, 30 days before the publication of a notice of proposed rulemaking pursuant to
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.
(c) Informal hearing procedure
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.
(C) Except as required for the disposition of ex parte matters as authorized by law, no presiding officer
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.
(C) A determination, rule, or ruling of the Commission described in paragraph (3)(B)(i) or (ii) may be
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
(C) banks insured by the Federal Deposit Insurance Corporation (other [FN1] banks referred to in

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.
(c) Conclusiveness of findings of Commission in cease and desist proceedings; notice of judicial
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;

(C) with respect to the International Antitrust Enforcement Assistance Act of 1994 [15 U.S.C.A. §
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.
(c) Issuance of demand; contents; service; verified return; sworn certificate; answers; taking of oral
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
(C) identify the custodian to whom such material shall be made available.
(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
(C) identify the custodian to whom such things shall be submitted.
(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
(C) identify the custodian to whom such reports or answers shall be submitted.
(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.
(C) To the extent that the courts of the United States have authority to assert jurisdiction over such person
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
(C) depositing a duly executed copy in the United States mails, by registered or certified mail, return
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.
(C) The oral testimony of any person taken pursuant to a civil investigative demand shall be taken in the
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 s

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Aftc%3A03ea8ca95da5318b. Public record. Not legal advice.