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Title 16: Commercial Practices
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PART 0—ORGANIZATION
Section Contents
§ 0.1 The Commission.
§ 0.2 Official address.
§ 0.3 Hours.
§ 0.4 Laws administered.
§ 0.5 Laws authorizing monetary claims.
§ 0.6 [Reserved]
§ 0.7 Delegation of functions.
§ 0.8 The Chairman.
§ 0.9 Organization structure.
§ 0.10 Office of the Executive Director.
§ 0.11 Office of the General Counsel.
§ 0.12 Office of the Secretary.
§ 0.13 Office of the Inspector General.
§ 0.14 Office of Administrative Law Judges.
§ 0.15 [Reserved]
§ 0.16 Bureau of Competition.
§ 0.17 Bureau of Consumer Protection.
§ 0.18 Bureau of Economics.
§ 0.19 The Regional Offices.
§ 0.20 Office of International Affairs.
Authority: 5 U.S.C. 552(a)(1); 15 U.S.C. 46(g).
Source: 41 FR 54483, Dec. 14, 1976, unless otherwise noted.
§ 0.1 The Commission.
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The Federal Trade Commission is an independent administrative agency which was organized in 1915 pursuant to the Federal
Trade Commission Act of 1914 (38 Stat. 717, as amended; 15 U.S.C. 41–58). It is responsible for the administration of a variety of
statutes which, in general, are designed to promote competition and to protect the public from unfair and deceptive acts and
practices in the advertising and marketing of goods and services. It is composed of five members appointed by the President and
confirmed by the Senate for terms of seven years.
§ 0.2 Official address.
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The principal office of the Commission is at Washington, DC. All communications to the Commission should be addressed to the
Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580, unless otherwise specifically directed. The
Commission's Web site address is www.ftc.gov.
[63 FR 71582, Dec. 29, 1998, as amended at 65 FR 78408, Dec. 15, 2000]
§ 0.3 Hours.
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Principal and field offices are open on each business day from 8:30 a.m. to 5 p.m.
§ 0.4 Laws administered.
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The Commission exercises enforcement and administrative authority under the Federal Trade Commission Act (15 U.S.C. 41–58),
Clayton Act (15 U.S.C. 12–27), Robinson-Patman Act (15 U.S.C. 13–13b, 21a), Webb-Pomerene (Export Trade) Act (15 U.S.C.
61–66), Packers and Stockyards Act (7 U.S.C. 181–229), Wool Products Labeling Act of 1939 (15 U.S.C. 68–68j), Lanham
Trade-Mark Act (15 U.S.C. 1064), Fur Products Labeling Act (15 U.S.C. 69–69j), Textile Fiber Products Identification Act (15
U.S.C. 70–70k), Federal Cigarette Labeling and Advertising Act (15 U.S.C. 1331–1340), Fair Packaging and Labeling Act (15
U.S.C. 1451–1461), Truth in Lending Act (15 U.S.C. 1601–1667f), Fair Credit Reporting Act (15 U.S.C. 1681–1681u), Fair Credit
Billing Act (15 U.S.C. 1666–1666j), Equal Credit Opportunity Act (15 U.S.C. 1691–1691f), Fair Debt Collection Practices Act (15
U.S.C. 1692–1692o), Electronic Fund Transfer Act (15 U.S.C. 1693–1693r), Hobby Protection Act (15 U.S.C. 2101–2106),
Magnuson-Moss Warranty—Federal Trade Commission Improvement Act (15 U.S.C. 2301–2312, 45–58), Energy Policy and
Conservation Act (42 U.S.C. 6201–6422, 15 U.S.C. 2008), Hart-Scott-Rodino Antitrust Improvements Act of 1976 (15 U.S.C. 18a),
Petroleum Marketing Practices Act (15 U.S.C. 2801–2841), Comprehensive Smokeless Tobacco Health Education Act of 1986 (15
U.S.C. 4401–4408), Telephone Disclosure and Dispute Resolution Act of 1992 (15 U.S.C. 5701–5724), Telemarketing and
Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6101–6108), International Antitrust Enforcement Assistance Act of 1994 (15
U.S.C. 46, 57b–1, 1311–1312, 6201 & note, 6202–6212), Credit Repair Organizations Act (15 U.S.C. 1679–1679j), Children's
Online Privacy Protection Act (15 U.S.C. 6501–6506), Identity Theft Assumption and Deterrence Act of 1998 (18 U.S.C. 1028 note),
Gramm-Leach-Bliley Act (15 U.S.C. 6801–6809), and other Federal statutes.
[65 FR 78408, Dec. 15, 2000]
§ 0.5 Laws authorizing monetary claims.
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The Commission is authorized to entertain monetary claims against it under three statutes. The Federal Tort Claims Act (28 U.S.C.
2671–2680) provides that the United States will be liable for injury or loss of property or personal injury or death caused by the
negligent or wrongful acts or omissions of its employees acting within the scope of their employment or office. The Military
Personnel and Civilian Employees Claims Act of 1964 (31 U.S.C. 3701, 3721) authorizes the Commission to compensate
employees' claims for damage to or loss of personal property incident to their service. The Equal Access to Justice Act (5 U.S.C.
504 and 28 U.S.C. 2412) provides that an eligible prevailing party other than the United States will be awarded fees and expenses
incurred in connection with any adversary adjudicative and court proceeding, unless the adjudicative officer finds that the agency
was substantially justified or that special circumstances make an award unjust. In addition, eligible parties, including certain small
businesses, will be awarded fees and expenses incurred in defending against an agency demand that is substantially in excess of
the final decision of the adjudicative officer and is unreasonable when compared with such decision under the facts and
circumstances of the case, unless the adjudicative officer finds that the party has committed a willful violation of law or otherwise
acted in bad faith, or special circumstances make an award unjust. Questions may be addressed to the Office of the General
Counsel, (202) 326–2462.
[63 FR 36340, July 6, 1998]
§ 0.6 [Reserved]
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§ 0.7 Delegation of functions.
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The Commission, under the authority provided by Reorganization Plan No. 4 of 1961, may delegate, by published order or rule,
certain of its functions to a division of the Commission, an individual Commissioner, an administrative law judge, or an employee or
employee board, and retains a discretionary right to review such delegated action upon its own initiative or upon petition of a party
to or an intervenor in such action.
[65 FR 78408, Dec. 15, 2000]
§ 0.8 The Chairman.
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The Chairman of the Commission is designated by the President, and, subject to the general policies of the Commission, is the
executive and administrative head of the agency. He presides at meetings of and hearings before the Commission and participates
with other Commissioners in all Commission decisions. Attached to the Office of the Chairman, and reporting directly to him, and
through him to the Commission, are the following staff units:
(a) The Office of Public Affairs, which furnishes information concerning Commission activities to news media and the public; and
(b) the Office of Congressional Relations, which coordinates all liaison activities with Congress.
[50 FR 53303, Dec. 31, 1985]
§ 0.9 Organization structure.
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The Federal Trade Commission comprises the following principal units: Office of the Executive Director; Office of the General
Counsel; Office of the Secretary; Office of the Inspector General; Office of the Administrative Law Judges; Office of International
Affairs; Bureau of Competition; Bureau of Consumer Protection; Bureau of Economics; and the Regional Offices.
[72 FR 9434, Mar. 2, 2007]
§ 0.10 Office of the Executive Director.
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The Executive Director, under the direction of the Chairman, is the chief operating official who develops and implements
management and administrative policies, programs and directives for the Commission. The Executive Director works closely with
the Bureaus on strategic planning and assessing the management and resource implications of any proposed action. In addition,
the Executive Director manages the Commission's facilities and administrative services, financial management, information
technology, and human resources.
[65 FR 78408, Dec. 15, 2000]
§ 0.11 Office of the General Counsel.
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The General Counsel is the Commission's chief law officer and adviser, who renders necessary legal services to the Commission,
represents the Commission in the Federal and State courts, advises the Commission and other agency officials and staff with
respect to questions of law and policy, including advice with respect to legislative matters and ethics, and responds to requests and
appeals filed under the Freedom of Information and Privacy Acts and to intra- and intergovernmental access requests.
[65 FR 78408, Dec. 15, 2000]
§ 0.12 Office of the Secretary.
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The Secretary is responsible for the minutes of Commission meetings and is the legal custodian of the Commission's seal, property,
papers, and records, including legal and public records. The Secretary, or in the Secretary's absence an Acting Secretary
designated by the Commission, signs Commission orders and official correspondence. In addition, the Secretary is responsible for
the publication of all Commission actions that appear in theFederal Registerand for the publication of Federal Trade Commission
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Decisions.
[65 FR 78408, Dec. 15, 2000]
§ 0.13 Office of the Inspector General.
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The Office of Inspector General (OIG) was established within the Federal Trade Commission in 1989 as required by the Inspector
General Act Amendments of 1988 (5 U.S.C. app. 3). The OIG promotes the economy, efficiency and effectiveness of FTC
programs and operations. To this end, the OIG independently conducts audits and investigations to find and prevent fraud, waste,
and abuse within the agency.
[65 FR 78408, Dec. 15, 2000]
§ 0.14 Office of Administrative Law Judges.
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Administrative law judges are officials to whom the Commission, in accordance with law, delegates the initial performance of
statutory fact-finding functions and initial rulings on conclusions of law, to be exercised in conformity with Commission decisions
and policy directives and with its Rules of Practice. The administrative law judges also serve as presiding officers assigned to
conduct rulemaking proceedings under section 18(a)(1)(B) of the Federal Trade Commission Act as amended and other rulemaking
proceedings as directed. The Chief Administrative Law Judge also serves as the Chief Presiding Officer. Administrative law judges
are appointed under the authority and subject to the prior approval of the Office of Personnel Management.
[54 FR 19885, May 9, 1989, as amended at 65 FR 78409, Dec. 15, 2000]
§ 0.15 [Reserved]
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§ 0.16 Bureau of Competition.
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The Bureau is responsible for enforcing Federal antitrust and trade regulation laws under section 5 of the Federal Trade
Commission Act, the Clayton Act, and a number of other special statutes that the Commission is charged with enforcing. The
Bureau's work aims to preserve the free market system and assure the unfettered operation of the forces of supply and demand. Its
activities seek to ensure price competition, quality products and services and efficient operation of the national economy. The
Bureau carries out its responsibilities by investigating alleged law violations, and recommending to the Commission such further
action as may be appropriate. Such action may include injunctive and other equitable relief in Federal district court, complaint and
litigation before the agency's administrative law judges, formal nonadjudicative settlement of complaints, trade regulation rules, or
reports. The Bureau also conducts compliance investigations and initiates proceedings for civil penalties to assure compliance with
final Commission orders dealing with competition and trade restraint matters. The Bureau's activities also include business and
consumer education and staff advice on competition laws and compliance, and liaison functions with respect to foreign antitrust and
competition law enforcement agencies and organizations, including requests for international enforcement assistance.
[65 FR 78409, Dec. 15, 2000]
§ 0.17 Bureau of Consumer Protection.
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The Bureau investigates unfair or deceptive acts or practices under section 5 of the Federal Trade Commission Act as well as
potential violations of numerous special statutes which the Commission is charged with enforcing. It prosecutes before the agency's
administrative law judges alleged violations of law after issuance of a complaint by the Commission or obtains through negotiation
consented-to orders, which must be accepted and issued by the Commission. In consultation with the General Counsel, the Bureau
may also seek injunctive or other equitable relief under section 13(b) of the Federal Trade Commission Act. The Bureau
participates in trade regulation rulemaking proceedings under section 18(a)(1)(B) of the Federal Trade Commission Act and other
rulemaking proceedings under statutory authority. It investigates compliance with final orders and trade regulation rules and seeks
civil penalties or consumer redress for their violation, as well as injunctive and other equitable relief under section 13(b) of the Act.
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In addition, the Bureau seeks to educate both consumers and the business community about the laws it enforces, and to assist and
cooperate with other state, local, foreign, and international agencies and organizations in consumer protection enforcement and
regulatory matters. The Bureau also maintains the agency's public reference facilities, where the public may inspect and copy a
current index of opinions, orders, statements of policy and interpretations, staff manuals and instructions that affect any member of
the public, and other public records of the Commission.
[65 FR 78409, Dec. 15, 2000]
§ 0.18 Bureau of Economics.
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The bureau aids and advises the Commission concerning the economic aspects of all of its functions, and is responsible for the
preparation of various economic reports and surveys. The bureau provides economic and statistical assistance to the enforcement
bureaus in the investigation and trial of cases.
[41 FR 54483, Dec. 14, 1976. Redesignated at 45 FR 36341, May 29, 1980, and amended at 50 FR 53303, Dec. 31, 1985]
§ 0.19 The Regional Offices.
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(a) These offices are investigatory arms of the Commission, and have responsibility for investigational, trial, compliance, and
consumer educational activities as delegated by the Commission. They are under the general supervision of the Office of the
Executive Director, and clear their activities through the appropriate operating Bureaus.
(b) The names, geographic areas of responsibility, and addresses of the respective regional offices are as follows:
(1) Northeast Region (located in New York City, New York), covering Connecticut, Maine, Massachusetts, New Hampshire, New
Jersey, New York, Rhode Island, Vermont, and Puerto Rico. Federal Trade Commission, One Bowling Green, Suite 318, New
York, New York 10004.
(2) Southeast Region (located in Atlanta, Georgia), covering Alabama, Florida, Georgia, Mississippi, North Carolina, South
Carolina, and Tennessee. Federal Trade Commission, Suite 5M35, Midrise Building, 60 Forsyth Street, SW., Atlanta, Georgia
30303.
(3) East Central Region (located in Cleveland, Ohio), covering Delaware, District of Columbia, Maryland, Michigan, Ohio,
Pennsylvania, Virginia, and West Virginia. Federal Trade Commission, Eaton Center, Suite 200, 1111 Superior Avenue, Cleveland,
Ohio 44114.
(4) Midwest Region (located in Chicago, Illinois), covering Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri,
Nebraska, North Dakota, South Dakota, and Wisconsin. Federal Trade Commission, 55 East Monroe Street, Suite 1860, Chicago,
Illinois 60603–5701.
(5) Southwest Region (located in Dallas, Texas), covering Arkansas, Louisiana, New Mexico, Oklahoma, and Texas. Federal Trade
Commission, 1999 Bryan Street, Suite 2150, Dallas, Texas 75201.
(6) Northwest Region (located in Seattle, Washington), covering Alaska, Idaho, Montana, Oregon, Washington, and Wyoming.
Federal Trade Commission, 915 Second Avenue, Suite 2896, Seattle, Washington 98174.
(7) Western Region (located in San Francisco and Los Angeles, California), covering Arizona, California, Colorado, Hawaii,
Nevada, and Utah.
(i) San Francisco Office: Federal Trade Commission, 901 Market Street, Suite 570, San Francisco, California 94103.
(ii) Los Angeles Office: Federal Trade Commission, 10877 Wilshire Boulevard, Suite 700, Los Angeles, California 90024.
(c) Each of the regional offices is supervised by a Regional Director, who is available for conferences with attorneys, consumers,
and other members of the public on matters relating to the Commission's activities.
[41 FR 54483, Dec. 14, 1976, as amended at 42 FR 27218, May 27, 1977; 43 FR 754, Jan. 4, 1978; 43 FR 6579, Feb. 15, 1978.
Redesignated at 45 FR 36341, May 29, 1980, and amended at 50 FR 53303, Dec. 31, 1985; 63 FR 71582, Dec. 29, 1998; 64 FR
71284, Dec. 21, 1999; 65 FR 78409, Dec. 15, 2000]
§ 0.20 Office of International Affairs.
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The Office of International Affairs (OIA) comprises international antitrust, international consumer protection, and international
technical assistance. OIA is responsible for designing and implementing the Commission's international program, which provides
support and advice to the Bureaus of Competition and Consumer Protection with regard to the international aspects of investigation
and prosecution of unlawful conduct. OIA builds cooperative relationships between the Commission and foreign authorities; works
closely with Bureau personnel to recommend agency priorities and policies and works, through bilateral relationships and
multilateral organizations, to promote those policies internationally; and implements Commission policy and participation in the
competition and consumer protection aspects of trade fora and negotiations, such as the U.S. inter-agency delegations negotiating
bilateral and multilateral free trade agreements. OIA works with authorized funding sources to develop and implement competition
and consumer protection technical assistance programs.
[72 FR 9434, Mar. 2, 2007]
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Section 508 / Accessibility
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Title 16: Commercial Practices
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PART 1—GENERAL PROCEDURES
Section Contents
Subpart A—Industry Guidance
Advisory Opinions
§ 1.1 Policy.
§ 1.2 Procedure.
§ 1.3 Advice.
§ 1.4 Public disclosure.
Industry Guides
§ 1.5 Purpose.
§ 1.6 How promulgated.
Subpart B—Rules and Rulemaking Under Section 18(a)(1)(B) of the FTC Act
§ 1.7 Scope of rules in this subpart.
§ 1.8 Nature, authority and use of trade regulation rules.
§ 1.9 Petitions to commence trade regulation rule proceedings.
§ 1.10 Advance notice of proposed rulemaking.
§ 1.11 Commencement of a rulemaking proceeding.
§ 1.12 Final notice.
§ 1.13 Rulemaking proceeding.
§ 1.14 Promulgation.
§ 1.15 Amendment or repeal of a rule.
§ 1.16 Petition for exemption from trade regulation rule.
§ 1.17 [Reserved]
§ 1.18 Rulemaking record.
§ 1.19 Modification of a rule by the Commission at the time of judicial review.
§ 1.20 Alternative procedures.
Subpart C—Rules Promulgated Under Authority Other Than Section 18(a)(1)(B) of the FTC Act
§ 1.21 Scope of the rules in this subpart.
§ 1.22 Rulemaking.
§ 1.23 Quantity limit rules.
§ 1.24 Rules applicable to wool, fur, and textile fiber products and rules promulgated under the Fair Packaging and
Labeling Act.
§ 1.25 Initiation of proceedings—petitions.
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§ 1.26 Procedure.
Subpart D [Reserved]
Subpart E—Export Trade Associations
§ 1.41 Limited antitrust exemption.
§ 1.42 Notice to Commission.
§ 1.43 Recommendations.
Subpart F—Trademark Cancellation Procedure
§ 1.51 Applications.
Subpart G—Injunctive and Condemnation Proceedings
§ 1.61
§ 1.62
§ 1.63
§ 1.64
Injunctions.
Ancillary court orders pending review.
Injunctions: Wool, fur, and textile cases.
Condemnation proceedings.
Subpart H—Administration of the Fair Credit Reporting Act
§ 1.71 Administration.
§ 1.72 Examination, counseling and staff advice.
§ 1.73 Interpretations.
Subpart I—Procedures for Implementation of the National Environmental Policy Act of 1969
§ 1.81
§ 1.82
§ 1.83
§ 1.84
§ 1.85
§ 1.86
§ 1.87
§ 1.88
§ 1.89
Authority and incorporation of CEQ Regulations.
Declaration of policy.
Whether to commence the process for an environmental impact statement.
Draft environmental impact statements: Availability and comment.
Final environmental impact statements.
Supplemental statements.
NEPA and agency decisionmaking.
Implementing procedures.
Effect on prior actions.
Subpart J—Economic Surveys, Investigations and Reports
§ 1.91 Authority and purpose.
Subpart K—Penalties for Violation of Appliance Labeling Rules
§ 1.92
§ 1.93
§ 1.94
§ 1.95
§ 1.96
§ 1.97
Scope.
Notice of proposed penalty.
Commission proceeding to assess civil penalty.
Procedures upon election.
Compromise of penalty.
Amount of penalty.
Subpart L—Civil Penalty Adjustments Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as
Amended by the Debt Collection Improvement Act of 1996
§ 1.98 Adjustment of civil monetary penalty amounts.
Subpart M—Submissions Under the Small Business Regulatory Enforcement Fairness Act
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§ 1.99 Submission of rules, guides, interpretations, and policy statements to Congress and the Comptroller General.
Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46), unless otherwise noted.
Source: 32 FR 8444, June 13, 1967, unless otherwise noted.
Subpart A—Industry Guidance
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Advisory Opinions
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§ 1.1 Policy.
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(a) Any person, partnership, or corporation may request advice from the Commission with respect to a course of action which the
requesting party proposes to pursue. The Commission will consider such requests for advice and inform the requesting party of the
Commission's views, where practicable, under the following circumstances.
(1) The matter involves a substantial or novel question of fact or law and there is no clear Commission or court precedent; or
(2) The subject matter of the request and consequent publication of Commission advice is of significant public interest.
(b) The Commission has authorized its staff to consider all requests for advice and to render advice, where practicable, in those
circumstances in which a Commission opinion would not be warranted. Hypothetical questions will not be answered, and a request
for advice will ordinarily be considered inappropriate where:
(1) The same or substantially the same course of action is under investigation or is or has been the subject of a current proceeding
involving the Commission or another governmental agency, or
(2) An informed opinion cannot be made or could be made only after extensive investigation, clinical study, testing, or collateral
inquiry.
[44 FR 21624, Apr. 11, 1979; 44 FR 23515, Apr. 20, 1979, as amended at 54 FR 14072, Apr. 7, 1989]
§ 1.2 Procedure.
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(a) Application. The request for advice or interpretation should be submitted in writing (one original and two copies) to the
Secretary of the Commission and should: (1) State clearly the question(s) that the applicant wishes resolved; (2) cite the provision
of law under which the question arises; and (3) state all facts which the applicant believes to be material. In addition, the identity of
the companies and other persons involved should be disclosed. Letters relating to unnamed companies or persons may not be
answered. Submittal of additional facts may be requested prior to the rendering of any advice.
(b) Compliance matters. If the request is for advice as to whether the proposed course of action may violate an outstanding order to
cease and desist issued by the Commission, such request will be considered as provided for in §2.41 of this chapter.
[44 FR 21624, Apr. 11, 1979, as amended at 44 FR 40638, July 12, 1979]
§ 1.3 Advice.
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(a) On the basis of the materials submitted, as well as any other information available, and if practicable, the Commission or its staff
will inform the requesting party of its views.
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(b) Any advice given by the Commission is without prejudice to the right of the Commission to reconsider the questions involved
and, where the public interest requires, to rescind or revoke the action. Notice of such rescission or revocation will be given to the
requesting party so that he may discontinue the course of action taken pursuant to the Commission's advice. The Commission will
not proceed against the requesting party with respect to any action taken in good faith reliance upon the Commission's advice
under this section, where all the relevant facts were fully, completely, and accurately presented to the Commission and where such
action was promptly discontinued upon notification of rescission or revocation of the Commission's approval.
(c) Advice rendered by the staff is without prejudice to the right of the Commission later to rescind the advice and, where
appropriate, to commence an enforcement proceeding.
[44 FR 21624, Apr. 11, 1979]
§ 1.4 Public disclosure.
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Written advice rendered pursuant to this section and requests therefor, including names and details, will be placed in the
Commission's public record immediately after the requesting party has received the advice, subject to any limitations on public
disclosure arising from statutory restrictions, the Commission's rules, and the public interest. A request for confidential treatment of
information submitted in connection with the questions should be made separately.
[44 FR 21624, Apr. 11, 1979]
Industry Guides
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§ 1.5 Purpose.
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Industry guides are administrative interpretations of laws administered by the Commission for the guidance of the public in
conducting its affairs in conformity with legal requirements. They provide the basis for voluntary and simultaneous abandonment of
unlawful practices by members of industry. Failure to comply with the guides may result in corrective action by the Commission
under applicable statutory provisions. Guides may relate to a practice common to many industries or to specific practices of a
particular industry.
§ 1.6 How promulgated.
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Industry guides1 are promulgated by the Commission on its own initiative or pursuant to petition filed with the Secretary or upon
informal application therefor, by any interested person or group, when it appears to the Commission that guidance as to the legal
requirements applicable to particular practices would be beneficial in the public interest and would serve to bring about more
widespread and equitable observance of laws administered by the Commission. In connection with the promulgation of industry
guides, the Commission at any time may conduct such investigations, make such studies, and hold such conferences or hearings
as it may deem appropriate. All or any part of any such investigation, study, conference, or hearing may be conducted under the
provisions of subpart A of part 2 of this chapter.
1
In the past, certain of these have been promulgated and referred to as trade practice rules.
Subpart B—Rules and Rulemaking Under Section 18(a)(1)(B) of the FTC Act
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Authority: 15 U.S.C. 46; 15 U.S.C. 57a; 5 U.S.C. 552; sec. 212(a), Pub. L. 104–121, 110 Stat. 857 (5 U.S.C. 601
note).
§ 1.7 Scope of rules in this subpart.
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The rules in this subpart apply to and govern proceedings for the promulgation of rules as provided in section 18(a)(1)(B) of the
Federal Trade Commission Act. Such rules shall be known as trade regulation rules. All other rulemaking proceedings shall be
governed by the rules in subpart C, except as otherwise required by law or as otherwise specified in this chapter.
[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]
§ 1.8 Nature, authority and use of trade regulation rules.
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(a) For the purpose of carrying out the provisions of the Federal Trade Commission Act, the Commission is empowered to
promulgate trade regulation rules which define with specificity acts or practices which are unfair or deceptive acts or practices in or
affecting commerce. Such rules may include requirements prescribed for the purpose of preventing such acts or practices. A
violation of a rule shall constitute an unfair or deceptive act or practice in violation of section 5(a)(1) of that Act, unless the
Commission otherwise expressly provides in its rule. However, the respondent in an adjudicative proceeding may show that his
conduct does not violate the rule or assert any other defense to which he is legally entitled.
(b) The Commission at any time may conduct such investigations, make such studies and hold such conferences as it may deem
necessary. All or any part of any such investigation may be conducted under the provisions of subpart A of part 2 of this chapter.
[46 FR 26288, May 12, 1981]
§ 1.9 Petitions to commence trade regulation rule proceedings.
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Trade regulation rule proceedings may be commenced by the Commission upon its own initiative or pursuant to written petition filed
with the Secretary by any interested person stating reasonable grounds therefor. If the Commission determines to commence a
trade regulation rule proceeding pursuant to the petition, the petitioner shall be mailed a copy of the public notices issued under
§§1.10, 1.11 and 1.12. Any person whose petition is not deemed by the Commission sufficient to warrant commencement of a
rulemaking proceeding shall be notified of that determination and may be given an opportunity to submit additional data.
[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]
§ 1.10 Advance notice of proposed rulemaking.
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(a) Prior to the commencement of any trade regulation rule proceeding, the Commission shall publish in theFederal Registeran
advance notice of such proposed proceeding.
(b) The advance notice shall:
(1) 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
(2) Invite the response of interested persons with respect to such proposed rulemaking, including any suggestions or alternative
methods for achieving such objectives.
(c) The advance notice shall be submitted to the Committee on Commerce, Science, and Transportation of the Senate and to the
Committee on Interstate and Foreign Commerce of the House of Representatives.
(d) The Commission may, in addition to publication of the advance notice, use such additional mechanisms as it considers useful to
obtain suggestions regarding the content of the area of inquiry before publication of an initial notice of proposed rulemaking
pursuant to §1.11.
[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]
§ 1.11 Commencement of a rulemaking proceeding.
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(a) Initial notice. A trade regulation rule proceeding shall commence with an initial notice of proposed rulemaking. Such notice shall
be published in theFederal Registernot sooner than 30 days after it has been submitted to the Committee on Commerce, Science,
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and Transportation of the Senate and to the Committee on Interstate and Foreign Commerce of the House of Representatives. The
initial notice shall include:
(1) The text of the proposed rule including any alternatives which the Commission proposes to promulgate;
(2) Reference to the legal authority under which the rule is proposed;
(3) A statement describing with particularity the reason for the proposed rule;
(4) An invitation to all interested persons to propose issues which meet the criteria of §1.13(d)(1)(i) for consideration in accordance
with §1.13 (d)(5) and (d)(6);
(5) An invitation to all interested persons to comment on the proposed rule; and
(6) A statement of the manner in which the public may obtain copies of the preliminary regulatory analysis.
(b) Preliminary regulatory analysis. Except as otherwise provided by statute, the Commission shall, when commencing a
rulemaking proceeding, issue a preliminary regulatory analysis which shall contain:
(1) A concise statement of the need for, and the objectives of, the proposed rule;
(2) A description of any reasonable alternatives to the proposed rule which may accomplish the stated objective of the rule in a
manner consistent with applicable law;
(3) For the proposed rule, and for each of the alternatives described in the analysis, a preliminary analysis of the projected benefits
and any adverse economic effects and any other effects, and of the effectiveness of the proposed rule and each alternative in
meeting the stated objectives of the proposed rule; and
(4) The information required by the Regulatory Flexibility Act, 5 U.S.C. 601–612, and the Paperwork Reduction Act, 44 U.S.C.
3501–3520, if applicable.
[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985; 63 FR 36340, July 6, 1998]
§ 1.12 Final notice.
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A final notice of proposed rulemaking shall be published in theFederal Registerand, to the extent practicable, otherwise made
available to interested persons. The final notice shall include:
(a) Designated issues, unless there are none, which are to be considered in accordance with §1.13 (d)(5) and (d)(6);
(b) The time and place of an informal hearing;
(c) Instructions to interested persons seeking to make oral presentations;
(d) A requirement that interested persons who desire to avail themselves of the procedures of §1.13 (d)(5) and (d)(6) with respect
to any issue designated in paragraph (a) of this section must identify their interests with respect to those issues in such manner as
may be established by the presiding officer; and
(e) an incorporation by reference of the contents of the initial notice.
[40 FR 33966, Aug. 13, 1975, as amended at 50 FR 53303, Dec. 31, 1985]
§ 1.13 Rulemaking proceeding.
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(a) Written comments. After commencement of a trade regulation rule proceeding, the Commission shall accept written submissions
of data, views, and arguments on all issues of fact, law, and policy. The initial notice shall specify the deadline for filing written
comments under this subsection.
(b) Comments proposing issues subject to the procedures of §1.13 (d)(5) and (d)(6). Interested persons may propose issues for
consideration in accordance with §1.13 (d)(5) and (d)(6) until thirty (30) days after the close of the written comment period or such
other period as the Commission may establish in the initial notice.
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(c) Presiding officer —(1) Assignment. Upon commencement of a proposed trade regulation rule proceeding, a presiding officer
shall be appointed by the Chief Presiding Officer or, when the Commission or one or more of its members serves as presiding
officer, by the Commission.
(2) Powers of the presiding officer. The presiding officer shall be responsible for the orderly conduct of the rulemaking proceeding
and the maintenance of the rulemaking and public records until the close of the postrecord comment period. He shall have all
powers necessary to that end including the following:
(i) To publish a final notice in accordance with §1.12 or issue any other public notice that may be necessary for the orderly conduct
of the rulemaking proceeding;
(ii) To designate or modify, issues for consideration in accordance with §1.13 (d)(5) and (d)(6);
(iii) To set the time and place of the informal hearing and to change any time periods prescribed in this subpart;
(iv) To prescribe rules or issue rulings to avoid unnecessary costs or delay. Such rules or rulings may include, but are not limited
to, the imposition of reasonable time limits on each person's oral presentation; and requirements that any examination; including
cross-examination, which a person may be entitled to conduct or have conducted be conducted by the presiding officer on behalf of
that person in such a manner as the presiding officer determines to be appropriate and to be required for a full and true disclosure
with respect to any issue designated for consideration in accordance with §1.13 (d)(5) and (d)(6);
(v) To make rules and rulings limiting the representation of interested persons for the purpose of examination, including crossexamination, and governing the manner in which such examination is limited, including the selection of a representative from among
a group of persons with the same or similar interests;
(vi) To require that oral presentations at the informal hearing or responses to written questions be under oath;
(vii) To require that oral presentations at the informal hearing be submitted in writing in advance of presentation;
(viii) To certify questions to the Commission for its determination; and
(ix) To rule upon all motions or petitions of interested persons, which motions or petitions must be filed with the presiding officer
until the close of the postrecord comment period.
(3) Review of rulings by the presiding officer —(i) Review after certification by the presiding officer. Except as otherwise provided
in paragraph (c)(3)(ii) of this section, applications for review of a ruling will not be entertained by the Commission prior to its review
of the record pursuant to §1.14, unless the presiding officer certifies in writing to the Commission that a ruling involves a controlling
question of law or policy as to which there is substantial ground for difference of opinion and that an immediate review of the ruling
may materially advance the ultimate termination of the proceeding or subsequent review will be an inadequate remedy. Within five
(5) days after a ruling by the presiding officer, any interested person may petition the presiding officer for certification of that ruling
to the Commission. Certification of a ruling shall not stay the rulemaking proceeding unless the presiding officer or the Commission
shall so order. Submissions to the Commission not to exceed fifteen (15) pages may be made within ten (10) days of the presiding
officer's certification. All such filings shall be a part of the rulemaking record. The Commission may thereupon, in its discretion,
permit the appeal. Commission review, if permitted, will be based on the application for review and any additional submissions,
without oral argument or further briefs, unless otherwise ordered by the Commission.
(ii) Review without certification by the presiding officer. Within ten (10) days after publication of the final notice, any interested
person may petition the Commission for addition, modification or deletion of a designated issue, accompanied by a filing not to
exceed fifteen (15) pages. Additional submissions on the issue by other interested persons, not to exceed fifteen (15) pages, may
be made within twenty (20) days of the publication of the final notice. The Commission may thereupon, in its discretion, permit the
appeal. Commission review, if permitted, will be based on the petition and any additional submissions, without oral argument or
further briefs, unless otherwise ordered by the Commission. A petition hereunder shall not stay the rulemaking proceeding unless
the presiding officer or the Commission shall so order. All petitions filed under this paragraph shall be a part of the rulemaking
record. Notice of the filing of any such petition may be obtained from the Office of the Secretary of the Commission. In the event
any designated issue is added or substantially modified by the Commission, interested persons shall be given a further opportunity
to identify their interests with respect to those issues.
(4) Substitution of presiding officer. In the event of the substitution of a new presiding officer for the one originally appointed, any
motion predicated upon such substitution shall be made within five (5) days thereafter.
(5) Organization. In the performance of their rulemaking functions, presiding officers shall be responsible to the chief presiding
officer who shall not be responsible to any other officer or employee of the Commission.
(6) Ex parte communications. 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.
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(d) Informal hearings. An informal hearing with the opportunity for oral presentations on all issues shall be conducted by the
presiding officer. In addition, if an issue is designated pursuant to these rules for consideration in accordance with §1.13(d) (5) and
(6), the informal hearing on such issues shall be conducted in accordance with those paragraphs. For all other issues the presiding
officer may in his discretion employ, in whole or in part, the procedures of those paragraphs.
(1) Nature of issues for consideration in accordance with §1.13 (d)( 5 ) and ( d )( 6 )—(i) Issues that must be considered in
accordance with §1.13 ( d )( 5 ) and ( d )( 6 ). The only issues that must be designated for consideration in accordance with
paragraphs (d)(5) and (d)(6) of this section are disputed issues of fact that are determined by the Commission or the presiding
officer to be material and necessary to resolve.
(ii) Issues that may be considered in accordance with §1.13 ( d )( 5 ) and (d )(( 6 ). The Commission and the presiding officer retain
the power to designate any other issues for consideration in accordance with paragraphs (d)(5) and (d)(6) of this section.
(2) Addition or modification of issues for consideration in accordance with §1.13(d)(5) and ( d )( 6 ). The presiding officer may at
any time on his own motion or pursuant to a written petition by interested persons, add or modify any issues designated pursuant to
§1.12(a). No such petition shall be considered unless good cause is shown why any such proposed issue was not proposed
pursuant to §1.13(b).
(3) Identification of interests. Not later than twenty (20) days after publication of the final notice each interested person who desires
to avail himself of the procedures of paragraphs (d)(5) and (d)(6) of this section shall notify the presiding officer in writing of his
particular interest with respect to each issue designated for consideration in accordance with those subsections. In the event that
new issues are designated, each interested person shall promptly notify the presiding officer of his particular interest with respect
to each such issue.
(4) Examination and cross-examination by the presiding officer. The presiding officer may conduct any examination, including
cross-examination, to which a person may be entitled. For that purpose he may require submission of written requests for
presentation of questions to any person making oral presentations and shall determine whether to ask such questions or any other
questions. All requests for presentation of questions shall be placed in the rulemaking record.
(5) Examination, cross-examination, and the presentation of rebuttal submissions by interested persons —(i) In general. The
presiding officer shall conduct or allow to be conducted examination, including cross-examination of oral presentations and the
presentation of rebuttal submissions relevant to the issues designated for consideration in accordance with paragraphs (d)(5) and
(d)(6) of this section. Examination, including, cross-examination, and the presentation of rebuttal submissions, shall be allowed to
the extent to which it is appropriate and is required for a full and true disclosure with respect to those issues. Requests for an
opportunity to examine, including cross-examine, or to present rebuttal submissions, shall be accompanied by a specific justification
therefor. In determining whether or not to grant such requests, the presence of the following circumstances indicate that such
requests should be granted:
(A) An issue for examination including cross-examination, or the presentation of rebuttal submissions, is an issue of specific in
contrast to legislative fact.
(B) A full and true disclosure with respect to the issue can only be achieved through examination including cross-examination rather
than through rebuttal submissions or the presentation of additional oral submissions.
(C) Circumstantial guarantees of the trustworthiness of a presentation do not exist.
(D) The particular presentation is required for the resolution of a designated issue.
(ii) Selection of representatives for cross-examination. After consideration of the information supplied in response to the final
notice, the presiding officer shall identify groups of persons with the same or similar interests in the proceeding. Any such group
may be required to select a single representative for the purpose of examination, including cross-examination. If a group is unable
to select a representative then the presiding officer may select a representative of each such group.
(iii) Inability to select representative for examination, including cross-examination. No person shall be denied the opportunity to
conduct or have conducted, examination, including cross-examination, under paragraph (d)(5)(i) of this section if he is a member of
a group as described in paragraph (d)(5)(ii) of this section and is unable to agree upon group representation with other group
members after a good faith effort to do so and seeks to present substantial and relevant issues which will not be adequately
presented by the group representative. In that event he shall be allowed to conduct or have conducted any examination, including
cross-examination, to which he is entitled on issues designated for consideration in accordance with paragraphs (d)(5) and (d)(6) of
this section and which affect his particular interest.
(6) Requests to compel the attendance of persons or the production of documents or to obtain responses to written questions.
During the course of the rulemaking proceeding, the presiding officer shall entertain requests from the Commission's staff or any
interested person to compel the attendance of persons or the production of documents or to obtain responses to written questions.
Requests to compel the attendance of persons or the production of documents or to obtain responses to written questions shall
contain a statement showing the general relevancy of the material, information or presentation, and the reasonableness of the
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scope of the request, together with a showing that such material, information or presentation is not available by voluntary methods
and cannot be obtained through examination, including cross-examination, of oral presentations or the presentation of rebuttal
submissions, and is appropriate and required for a full and true disclosure with respect to the issues designated for consideration in
accordance with paragraphs (d)(5) and (d)(6) of this section. If the presiding officer determines that a request should be granted, he
shall transmit his determination to the Commission which shall determine whether to issue a civil investigative demand under
§2.7(b). Information received in response to such a demand may be disclosed in the rulemaking proceeding subject to an in
camera order under §1.18(b).
(e) Written transcript. A verbatim transcript shall be made of the informal hearing which transcript shall be placed in the rulemaking
record.
(f) Staff recommendations. The staff shall make recommendations to the Commission in a report on the rulemaking record. Such
report shall contain its analysis of the record and its recommendations as to the form of the final rule.
(g) Recommended decision. After publication of the staff report, the presiding officer shall make a recommended decision based
upon his or her findings and conclusions as to all relevant and material evidence, and taking into account the staff report. The
recommended decision shall be made by the presiding officer who presided over the rulemaking proceeding 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.
(h) Postrecord comment. The staff report and the presiding officer's recommended decision shall be the subject of public comment
for a period to be prescribed by the presiding officer at the time the recommended decision is placed in the rulemaking record. The
comment period shall be no less than sixty (60) days. The comments shall be confined to information already in the record and may
include requests for review by the Commission of determinations made by the presiding officer.
(i) Commission review of the rulemaking record. The Commission shall review the rulemaking record to determine what form of
rule, if any, it should promulgate. During this review process, the Commission may allow persons who have previously participated
in the proceeding to make oral presentations to the Commission, unless it determines with respect to that proceeding that such
presentations would not significantly assist it in its deliberations. Presentations shall be confined to information already in the
rulemaking record. Requests to participate in an oral presentation must be received by the Commission no later than the close of
the comment period under §1.13(h). The identity of the participants and the format of such presentations will be announced in
advance by the Office of Public Information in the Commisison's Weekly Calendar and Notice of “Sunshine” Meetings and in
accordance with the applicable provisions of 5 U.S.C. 552(b) and §4.15 of the Commission's Rules of Practice. Such presentations
will be transcribed verbatim or summarized at the discretion of the Commission and a copy of the transcript or summary and copies
of any written communications and summaries of any oral communications relating to such presentations shall be placed on the
rulemaking record.
[40 FR 33966, Aug. 13, 1975, as amended at 43 FR 39084, Sept. 1, 1978; 45 36341, May 29, 1980; 45 FR 78628, Nov. 26, 1980;
46 FR 14888, Mar. 3, 1981; 46 FR 26288, May 12, 1981; 50 FR 53303, Dec. 31, 1985; 54 FR 19886, May 9, 1989]
§ 1.14 Promulgation.
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(a) The Commission, after review of the rulemaking record, may issue, modify, or decline to issue any rule. Where it believes that it
should have further information or additional views of interested persons, it may withhold final action pending the receipt of such
additional information or views. If it determines not to issue a rule, it may adopt and publish an explanation for not doing so.
(1) Statement of Basis and Purpose. If the Commission determines to promulgate a rule, it shall adopt a Statement of Basis and
Purpose to accompany the rule which shall include:
(i) A statement as to the prevalence of the acts or practices treated by the rule;
(ii) A statement as to the manner and context in which such acts or practices are unfair or deceptive;
(iii) A statement as to the economic effect of the rule, taking into account the effect on small businesses and consumers;
(iv) a statement as to the effect of the rule on state and local laws; and
(v) A statement of the manner in which the public may obtain copies of the final regulatory analysis.
(2) Final regulatory analysis. Except as otherwise provided by statute, if the Commission determines to promulgate a final rule, it
shall issue a final regulatory analysis relating to the final rule. Each final regulatory analysis shall contain:
(i) A concise statement of the need for, and the objectives of, the final rule;
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(ii) A description of any alternatives to the final rule which were considered by the Commission;
(iii) An analysis of the projected benefits and any adverse economic effects and any other effects of the final rule;
(iv) An explanation of the reasons for the determination of the Commission that the final rule will attain its objectives in a manner
consistent with applicable law and the reasons the particular alternative was chosen;
(v) A summary of any significant issues raised by the comments submitted during the public comment period in response to the
preliminary regulatory analysis, and a summary of the assessment by the Commission of such issues; and
(vi) The information required by the Regulatory Flexibility Act, 5 U.S.C. 601–612, and the Paperwork Reduction Act, 44 U.S.C.
3501–3520, if applicable.
(3) Small entity compliance guide. For each rule for which the Commission must prepare a final regulatory flexibility analysis, the
Commission will publish one or more guides to assist small entities in complying with the rule. Such guides will be designated as
“small entity compliance guides.”
(b) In the event the Commission determines, upon its review of the rulemaking record, to propose a revised rule for further
proceedings in accordance with this subpart, such proceedings, including the opportunity of interested persons to avail themselves
of the procedures of §1.13 (d)(5) and (d)(6), shall be limited to those portions of the revised rule, the subjects and issues of which
were not substantially the subject of comment in response to a previous notice of proposed rulemaking.
(c) The final rule and Statement of Basis and Purpose shall be published in theFederal Register.A rule issued under this subpart
shall be deemed promulgated at 3 p.m. Eastern Standard Time on the fourth day after the date on which the final rule and
Statement of Basis and Purpose are published in theFederal Register.In the event such day is a Saturday, Sunday or national
holiday, then the rule is deemed promulgated at 3 p.m. Eastern Standard Time on the following business day.
[40 FR 33966, Aug. 13, 1975, as amended at 46 FR 26289, May 12, 1981; 50 FR 53304, Dec. 31, 1985; 63 FR 36340, July 6,
1998]
§ 1.15 Amendment or repeal of a rule.
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(a) Substantive amendment or repeal of a rule. The procedures for substantive amendment to or repeal of a rule are the same as
for the issuance thereof.
(b) Nonsubstantive amendment of a rule. The Commission may make a nonsubstantive amendment to a rule by announcing the
amendment in theFederal Register.
[46 FR 26289, May 12, 1981]
§ 1.16 Petition for exemption from trade regulation rule.
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Any person to whom a rule would otherwise apply may petition the Commission for an exemption from such rule. The procedures
for determining such a petition shall be those of subpart C of these rules.
[40 FR 33966, Aug. 13, 1975]
§ 1.17 [Reserved]
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§ 1.18 Rulemaking record.
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(a) Definition. For purposes of these rules the term rulemaking record includes the rule, its Statement of Basis and Purpose, the
verbatim transcripts of the informal hearing, written submissions, the recommended decision of the presiding officer, and the staff
recommendations as well as any public comment thereon, verbatim transcripts or summaries of oral presentations to the
Commission any communications placed on the rulemaking record pursuant to §1.18c and any other information which the
Commission considers relevant to the rule.
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(b) Public availability. The rulemaking record shall be publicly available except when the presiding officer, for good cause shown,
determines that it is in the public interest to allow any submission to be received in camera subject to the provisions of §4.11 of this
chapter.
(c) Communications to Commissioners and Commissioners' personal staffs —(1) Communications by outside parties. Except as
otherwise provided in this subpart or by the Commission, after the Commission votes to issue an initial notice of proposed
rulemaking, comment on the proposed rule should be directed to the presiding officer pursuant to §1.13. Communications with
respect to the merits of that proceeding from any outside party to any Commissioner or Commissioner advisor shall be subject to
the following treatment:
(i) Written communications. Written communications, including written communications from members of Congress, received within
the period for acceptance of initial written comments shall be forwarded promptly to the presiding officer for placement on the
rulemaking record. Written communications received after the time period for acceptance of initial written comments but prior to any
other deadline for the acceptance of written submissions will be forwarded promptly to the presiding officer, who will determine
whether such communications comply with the applicable requirements for written submissions at that stage of the proceeding.
Communications that comply with such requirements will be promptly placed on the rulemaking record. Noncomplying
communications and all communications received after the time periods for acceptance of written submissions will be placed
promptly on the public record.
(ii) Oral communications. Oral communications are permitted only when advance notice of such oral communications is published
by the Commission's Office of Public Information in its Weekly Calendar and Notice of “Sunshine” Meetings and when such oral
communications are transcribed verbatim or summarized at the discretion of the Commissioner or Commissioner advisor to whom
such oral communications are made and are promptly placed on the rulemaking record together with any written communications
and summaries of any oral communications relating to such oral communications. Transcripts or summaries of oral communications
which occur after the time period for acceptance of initial written comments but prior to any other deadline for the acceptance of
written submissions will be forwarded promptly to the presiding officer together with any written communications and summaries of
any oral communications relating to such oral communications. The presiding officer will determine whether such oral
communications comply with the applicable requirements for written submissions at that stage of the proceeding. Transcripts or
summaries of oral communications that comply with such requirements will be promptly placed on the rulemaking record together
with any written communications and summaries of any oral communications relating to such oral communications. Transcripts or
summaries of noncomplying oral communications will be promptly placed on the public record together with any written
communications and summaries of any oral communications relating to such oral communications. No oral communications are
permitted subsequent to the close of the postrecord comment period, except as provided in §1.13(i). If an oral communication does
otherwise occur, the Commissioner or Commissioner advisor will promptly place on the public record either a transcript of the
communication or a memorandum setting forth the contents of the communication and the circumstances thereof; such transcript or
memorandum will not be part of the rulemaking record.
(iii) Congressional communications. The provisions of paragraph (c)(1)(ii) of this section do not apply to communications from
members of Congress. Memoranda prepared by the Commissioner or Commissioner advisor setting forth the contents of any oral
congressional communications will be placed on the public record. If the communication occurs within the initial comment period
and is transcribed verbatim or summarized, the transcript or summary will be promptly placed on the rulemaking record. A transcript
or summary of any oral communication which occurs after the time period for acceptance of initial written comments but prior to any
other deadline for the acceptance of written submissions will be forwarded promptly to the presiding officer, who will determine
whether such oral communication complies with the applicable requirements for written submissions at that stage of the
proceeding. Transcripts or summaries of oral communications that comply with such requirements will be promptly placed on the
rulemaking record. Transcripts or summaries of noncomplying oral communications will be placed promptly on the public record.
(2) Communications by certain officers, employees, and agents of the Commission. Any officer, employee, or agent of the
Commission with investigative or other responsibility relating to any rulemaking proceeding within any operating bureau of the
Commission is prohibited 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.
(Sec. 6(g), 38 Stat. 721 (15 U.S.C. 46), 80 Stat. 383, as amended (5 U.S.C. 552))
[42 FR 43974, Sept. 1, 1977, as amended at 42 FR 60563, Nov. 28, 1977; 44 FR 16368, Mar. 19, 1979; 44 FR 21005, Apr. 9,
1979; 45 FR 78628, Nov. 26, 1980; 50 FR 53304, Dec. 31, 1985]
§ 1.19 Modification of a rule by the Commission at the time of judicial review.
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In the event that a reviewing court determines under section 18(e)(2) of the Federal Trade Commission Act, to allow further
submissions and presentations on the rule, the Commission may modify or set aside its rule or make a new rule by reason of the
additional submissions and presentations. Such modified or new rule shall then be filed with the court together with an appropriate
Statement of Basis and Purpose and the return of such submissions and presentations.
[40 FR 33966, Aug. 13, 1975, as amended at 50 FR 53304, Dec. 31, 1985]
§ 1.20 Alternative procedures.
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If the Commission determines at the commencement of a rulemaking proceeding to employ procedures other than those
established in the remainder of this subpart, it may do so by announcing those procedures in theFederal Registernotice
commencing the rulemaking proceeding.
[43 FR 35683, Aug. 11, 1978]
Subpart C—Rules Promulgated Under Authority Other Than Section 18(a)(1)(B) of the FTC Act
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Authority: 15 U.S.C. 46; 5 U.S.C. 552; Sec. 212(a), Pub. L. 104–121, 110 Stat. 857 (5 U.S.C. 601 note).
§ 1.21 Scope of the rules in this subpart.
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This subpart sets forth procedures for the promulgation of rules under authority other than section 18(a)(1)(B) of the FTC Act
except as otherwise required by law or otherwise specified in the rules of this chapter. This subpart does not apply to the
promulgation of industry guides, general statements of policy, rules of agency organization, procedure, or practice, or rules
governed by subpart B of this part.
[50 FR 53304, Dec. 31, 1985]
§ 1.22 Rulemaking.
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(a) Nature and authority. For the purpose of carrying out the provisions of the statutes administered by it, the Commission is
empowered to promulgate rules and regulations applicable to unlawful trade practices. Such rules and regulations express the
experience and judgment of the Commission, based on facts of which it has knowledge derived from studies, reports,
investigations, hearings, and other proceedings, or within official notice, concerning the substantive requirements of the statutes
which it administers.
(b) Scope. Rules may cover all applications of a particular statutory provision and may be nationwide in effect, or they may be
limited to particular areas or industries or to particular product or geographic markets, as may be appropriate.
(c) Use of rules in adjudicative proceedings. When a rule is relevant to any issue involved in an ajudicative proceeding thereafter
instituted, the Commission may rely upon the rule to resolve such issue, provided that the respondent shall have been given a fair
hearing on the applicability of the rule to the particular case.
[40 FR 15232, Apr. 4, 1975]
§ 1.23 Quantity limit rules.
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Quantity limit rules are authorized by section 2(a) of the Clayton Act, as amended by the Robinson-Patman Act. These rules have
the force and effect of law.
[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975]
§ 1.24 Rules applicable to wool, fur, and textile fiber products and rules promulgated under the Fair Packaging and Labeling Act.
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Rules having the force and effect of law are authorized under section 6 of the Wool Products Labeling Act of 1939, section 8 of the
Fur Products Labeling Act, section 7 of the Textile Fiber Products Identification Act, and sections 4, 5, and 6 of the Fair Packaging
and Labeling Act.
[40 FR 15233, Apr. 4, 1975]
§ 1.25 Initiation of proceedings—petitions.
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Proceedings for the issuance of rules or regulations, including proceedings for exemption of products or classes of products from
statutory requirements, may be commenced by the Commission upon its own initiative or pursuant to petition filed with the
Secretary by any interested person or group stating reasonable grounds therefor. Anyone whose petition is not deemed by the
Commission sufficient to warrant the holding of a rulemaking proceeding will be promptly notified of that determination and given an
opportunity to submit additional data. Procedures for the amendment or repeal of a rule or regulation are the same as for the
issuance thereof.
[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975]
§ 1.26 Procedure.
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(a) Investigations and conferences. In connection with any rulemaking proceeding, the Commission at any time may conduct such
investigations, make such studies, and hold such conferences as it may deem necessary. All or any part of any such investigation
may be conducted under the provisions of subpart A of part 2 of this chapter.
(b) Notice. General notice of proposed rulemaking will be published in theFederal Registerand, to the extent practicable, otherwise
made available to interested persons except when the Commission for good cause finds that notice and public procedure relating to
the rule are impractical, unnecessary or contrary to the public interest and incorporates such finding and a brief statement of the
reasons therefor in the rule. If the rulemaking proceeding was instituted pursuant to petition, a copy of the notice will be served on
the petitioner. Such notice will include:
(1) A statement of the time, place, and nature of the public proceedings;
(2) Reference to the authority under which the rule is proposed;
(3) Either the terms or substance of the proposed rule or description of the subjects and issues involved;
(4) An opportunity for interested persons to participate in the proceeding through the submission of written data, views, or
arguments; and(5) A statement setting forth such procedures for treatment of communications from persons not employed by the
Commission to Commissioners or Commissioner Advisors with respect to the merits of the proceeding as will incorporate the
requirements of §1.18(c), including the transcription of oral communications required by §1.18(c)(2), adapted in such form as may
be appropriate to the circumstances of the particular proceeding.
(c) Oral hearings. Oral hearing on a proposed rule may be held within the discretion of the Commission, unless otherwise expressly
required by law. Any such hearing will be conducted by the Commission, a member thereof, or a member of the Commission's staff.
At the hearing interested persons may appear and express their views as to the proposed rule and may suggest such amendments,
revisions, and additions thereto as they may consider desirable and appropriate. The presiding officer may impose reasonable
limitations upon the length of time allotted to any person. If by reason of the limitations imposed the person cannot complete the
presentation of his suggestions, he may within twenty-four (24) hours file a written statement covering those relevant matters which
he did not orally present.
(d) Promulgation of rules or orders. The Commission, after consideration of all relevant matters of fact, law, policy, and discretion,
including all relevant matters presented by interested persons in the proceeding, will adopt and publish in theFederal Registeran
appropriate rule or order, together with a concise general statement of its basis and purpose and any necessary findings, or will
give other appropriate public notice of disposition of the proceeding. TheFederal Registerpublication will contain the information
required by the Paperwork Reduction Act, 44 U.S.C. 3501–3520, and the Regulatory Flexibility Act, 5 U.S.C. 601–612, if
applicable. For each rule for which the Commission must prepare a final regulatory flexibility analysis, the Commission will publish
one or more guides to assist small entities in complying with the rule. Such guides will be designated as “small entity compliance
guides.”
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(e) Effective date of rules. Except as provided in paragraphs (f) and (g) of this section, the effective date of any rule, or of the
amendment, suspension, or repeal of any rule will be as specified in a notice published in theFederal Register,which date will be
not less than thirty (30) days after the date of such publication unless an earlier effective date is specified by the Commission upon
good cause found and published with the rule.
(f) Effective date of rules and orders under Fair Packaging and Labeling Act. The effective date of any rule or order under the Fair
Packaging and Labeling Act will be as specified by order published in theFederal Register,but shall not be prior to the day following
the last day on which objections may be filed under paragraph (g) of this section.
(g) Objections and request for hearing under Fair Packaging and Labeling Act. On or before the thirtieth (30th) day after the date
of publication of an order in theFederal Registerpursuant to paragraph (f) of this section, any person who will be adversely affected
by the order if placed in effect may file objections thereto with the Secretary of the Commission, specifying with particularity the
provisions of the order deemed objectionable, stating the grounds therefor, and requesting a public hearing upon such objections.
Objections will be deemed sufficient to warrant the holding of a public hearing only:
(1) If they establish that the objector will be adversely affected by the order;
(2) If they specify with particularity the provisions of the order to which objection is taken; and
(3) If they are supported by reasonable grounds which, if valid and factually supported, may be adequate to justify the relief sought.
Anyone who files objections which are not deemed by the Commission sufficient to warrant the holding of a public hearing will be
promptly notified of that determination. As soon as practicable after the time for filing objections has expired, the Commission will
publish a notice in theFederal Registerspecifying those parts of the order which have been stayed by the filing of objections or, if
no objections sufficient to warrant the holding of a hearing have been filed, stating that fact.
[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975, and amended at 44 FR 16368, Mar. 19, 1979; 50 FR
53304, Dec. 31, 1985; 63 FR 36340, July 6, 1998]
Subpart D [Reserved]
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Subpart E—Export Trade Associations
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§ 1.41 Limited antitrust exemption.
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The Export Trade Act authorizes the organization and operation of export trade associations, and extends to them certain limited
exemptions from the Sherman Act and the Clayton Act. It also extends the jurisdiction of the Commission under the Federal Trade
Commission Act to unfair methods of competition used in export trade against competitors engaged in export trade, even though the
acts constituting such unfair methods are done without the territorial jurisdiction of the United States.
§ 1.42 Notice to Commission.
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To obtain the exemptions afforded by the Act, an export trade association is required to file with the Commission, within thirty (30)
days after its creation, a verified written statement setting forth the location of its offices and places of business, names, and
addresses of its officers, stockholders, or members, and copies of its documents of incorporation or association. On the first day of
January of each year thereafter, each association must file a like statement and, when required by the Commission to do so, must
furnish to the Commission detailed information as to its organization, business, conduct, practices, management, and relation to
other associations, corporations, partnerships, and individuals.
§ 1.43 Recommendations.
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Whenever the Commission has reason to believe that an association has violated the prohibitions of section 2 of the Act, it may
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conduct an investigation. If, after investigation, it concludes that the law has been violated, it may make to such association
recommendations for the readjustment of its business. If the association fails to comply with the recommendations, the Commission
will refer its findings and recommendations to the Attorney General for appropriate action.
Subpart F—Trademark Cancellation Procedure
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§ 1.51 Applications.
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Applications for the institution of proceedings for the cancellation of registration of trade, service, or certification marks under the
Trade-Mark Act of 1946 may be filed with the Secretary of the Commission. Such applications shall be in writing, signed by or in
behalf of the applicant, and should identify the registration concerned and contain a short and simple statement of the facts
constituting the alleged basis for cancellation, the name and address of the applicant, together with all relevant and available
information. If, after consideration of the application, or upon its own initiative, the Commission concludes that cancellation of the
mark may be warranted, it will institute a proceeding before the Commissioner of Patents for cancellation of the registration.
Subpart G—Injunctive and Condemnation Proceedings
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§ 1.61 Injunctions.
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In those cases where the Commission has reason to believe that it would be to the interest of the public, the Commission will apply
to the courts for injunctive relief, pursuant to the authority granted in section 13 of the Federal Trade Commission Act.
[40 FR 15233, Apr. 4, 1975]
§ 1.62 Ancillary court orders pending review.
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Where petition for review of an order to cease and desist has been filed in a U.S. court of appeals, the Commission may apply to
the court for issuance of such writs as are ancillary to its jurisdiction or are necessary in its judgment to prevent injury to the public
or to competitors pendente lite.
§ 1.63 Injunctions: Wool, fur, and textile cases.
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In those cases arising under the Wool Products Labeling Act of 1939, Fur Products Labeling Act, and Textile Fiber Products
Identification Act, where it appears to the Commission that it would be to the public interest for it to do so, the Commission will apply
to the courts for injunctive relief, pursuant to the authority granted in such Acts.
[32 FR 8444, June 13, 1967, as amended at 41 FR 4814, Feb. 2, 1976]
§ 1.64 Condemnation proceedings.
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In those cases arising under the Wool Products Labeling Act of 1939 and Fur Products Labeling Act, and where it appears to the
Commission that the public interest requires such action, the Commission will apply to the courts for condemnation, pursuant to the
authority granted in such Acts.
[32 FR 8444, June 13, 1967, as amended at 41 FR 4814, Feb. 2, 1976]
Subpart H—Administration of the Fair Credit Reporting Act
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Authority: 84 Stat. 1128, 15 U.S.C. 1681 et seq.
§ 1.71 Administration.
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The general administration of the Fair Credit Reporting Act (Title VI of the Consumer Credit Protection Act of 1968; enacted
October 26, 1970; Pub. L. 91–508, 82 Stat. 146, 15 U.S.C. 1601 et seq .) is carried out by the Bureau of Consumer Protection,
Division of Credit Practices. Any interested person may obtain copies of the Act and these procedures and rules of practice upon
request to the Secretary of the Commission, Washington, DC 20580.
[36 FR 9293, May 22, 1971, as amended at 36 FR 18788, Sept. 22, 1971; 38 FR 32438, Nov. 26, 1973; 46 FR 26290, May 12,
1981]
§ 1.72 Examination, counseling and staff advice.
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The Commission maintains a staff to carry out on-the-scene examination of records and procedures utilized to comply with the Fair
Credit Reporting Act and to carry out industry counseling. Requests for staff interpretation of the Fair Credit Reporting Act should
be directed to the Division of Credit Practices, Bureau of Consumer Protection. Such interpretations represent informal staff opinion
which is advisory in nature and is not binding upon the Commission as to any action it may take in the matter. Administrative action
to effect correction of minor infractions on a voluntary basis is taken in those cases where such procedure is believed adequate to
effect immediate compliance and protect the public interest.
[36 FR 9293, May 22, 1971, as amended at 36 FR 18788, Sept. 22, 1971; 38 FR 32438, Nov. 26, 1973; 46 FR 26290, May 12,
1981]
§ 1.73 Interpretations.
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(a) Nature and purpose. (1) The Commission issues and causes to be published in theFederal Registerinterpretations of the
provisions of the Fair Credit Reporting Act on its own initiative or pursuant to the application of any person when it appears to the
Commission that guidance as to the legal requirements of the Act would be in the public interest and would serve to bring about
more widespread and equitable observance of the Act.
(2) The interpretations are not substantive rules and do not have the force or effect of statutory provisions. They are guidelines
intended as clarification of the Fair Credit Reporting Act, and, like industry guides, are advisory in nature. They represent the
Commission's view as to what a particular provision of the Fair Credit Reporting Act means for the guidance of the public in
conducting its affairs in conformity with that Act, and they provide the basis for voluntary and simultaneous abandonment of
unlawful practices by members of industry. Failure to comply with such interpretations may result in corrective action by the
Commission under applicable statutory provisions.
(b) Procedure. (1) Requests for Commission interpretations should be submitted in writing to the Secretary of the Federal Trade
Commission stating the nature of the interpretation requested and the reasons and justification therefor. If the request is granted,
as soon as practicable thereafter, the Commission will publish a notice in theFederal Registersetting forth the text of the proposed
interpretation. Comments, views, or objections, together with the grounds therefor, concerning the proposed interpretation may be
submitted to the Secretary of the Commission within thirty (30) days of public notice thereof. The proposed interpretation will
automatically become final after the expiration of sixty (60) days from the date of public notice thereof, unless upon consideration of
written comments submitted as hereinabove provided, the Commission determine to rescind, revoke, modify, or withdraw the
proposed interpretation, in which event notification of such determination will be published in theFederal Register.
(2) The issuance of such interpretations is within the discretion of the Commission and the Commission at any time may conduct
such investigations and hold such conferences or hearings as it may deem appropriate. Any interpretation issued pursuant to this
chapter is without prejudice to the right of the Commission to reconsider the interpretation, and where the public interest requires,
to rescind, revoke, modify, or withdraw the interpretation, in which event notification of such action will be published in theFederal
Register.
(c) Applicability of interpretations. Interpretations issued pursuant to this subpart may cover all applications of a particular statutory
provision, or they may be limited in application to a particular industry, as appropriate.
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[36 FR 9293, May 22, 1971]
Subpart I—Procedures for Implementation of the National Environmental Policy Act of 1969
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Authority: 15 U.S.C. 46(g), 42 U.S.C. 4321 et seq.
Source: 47 FR 3096, Jan. 22, 1982, unless otherwise noted.
§ 1.81 Authority and incorporation of CEQ Regulations.
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This subpart is issued pursuant to 102(2) of the National Environmental Policy Act of 1969 (NEPA), as amended (42 U.S.C. 4321 et
seq. ). Pursuant to Executive Order 11514 (March 5, 1970, as amended by Executive Order 11991, May 24, 1977) and the
Environmental Quality Improvement Act of 1980, as amended (42 U.S.C. 4371 et seq. ) the Council on Environmental Quality
(CEQ) has issued comprehensive regulations for implementing the procedural provisions of NEPA (40 CFR parts 1500 through
1508) (“CEQ Regulations”). Although it is the Commission's position that these regulations are not binding on it, the Commission's
policy is to comply fully with the CEQ Regulations unless it determines in a particular instance or for a category of actions that
compliance would not be consistent with the requirements of law. With this caveat, the Commission incorporates into this subpart
the CEQ Regulations. The following are supplementary definitions and procedures to be applied in conjunction with the CEQ
Regulations.
[47 FR 3096, Jan. 22, 1982, as amended at 50 FR 53304, Dec. 31, 1985]
§ 1.82 Declaration of policy.
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(a) Except for actions which are not subject to the requirements of section 102(2)(C) of NEPA, no Commission proposal for a major
action significantly affecting the quality of the human environment will be instituted unless an environmental impact statement has
been prepared for consideration in the decisionmaking. All relevant environmental documents, comments, and responses as
provided in this subpart shall accompany such proposal through all review processes. “Major actions, significantly affecting the
quality of the human environment” referred to in this subpart “do not include bringing judicial or administrative civil or criminal
enforcement actions” CEQ Regulation (40 CFR 1508.18(a)). In the event that the Commission in an administrative enforcement
proceeding actively contemplates the adoption of standards or a form of relief which it determines may have a significant effect on
the environment, the Commission will, when consistent with the requirements of law, provide for the preparation of an
environmental assessment or an environmental impact statement or such other action as will permit the Commission to assess
alternatives with a view toward avoiding or minimizing any adverse effect upon the environment.
(b) No Commission proposal for legislation significantly affecting the quality of the human environment and concerning a subject
matter in which the Commission has primary responsibility will be submitted to Congress without an accompanying environmental
impact statement.
(c) When the Commission finds that emergency action is necessary and an environmental impact statement cannot be prepared in
conformance with the CEQ Regulations, the Commission will consult with CEQ about alternative arrangements in accordance with
CEQ Regulation (40 CFR 1506.11).
§ 1.83 Whether to commence the process for an environmental impact statement.
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(a) The Bureau responsible for submitting a proposed rule, guide, or proposal for legislation to the Commission for agency action
shall, after consultation with the Office of the General Counsel, initially determine whether or not the proposal is one which requires
an environmental impact statement. Except for matters where the environmental effects, if any, would appear to be either (1) clearly
significant and therefore the decision is made to prepare an environmental impact statement, or (2) so uncertain that environmental
analysis would be based on speculation, the Bureau should normally prepare an “environmental assessment” CEQ Regulation (40
CFR 1508.9) for purposes of providing sufficient evidence and analysis for determining whether to prepare an environmental
impact statement or a finding of no significant impact. The Bureau should involve environmental agencies to the extent practicable
in preparing an assessment. An environmental assessment shall be made available to the public when the proposed action is made
public along with any ensuing environmental impact statement or finding of no significant impact.
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(b) If the Bureau determines that the proposal is one which requires an environmental impact statement, it shall commence the
“scoping process” CEQ Regulation (40 CFR 1501.7) except that the impact statement which is part of a proposal for legislation
need not go through a scoping process but shall conform to CEQ Regulation (40 CFR 1506.8). As soon as practicable after its
decision to prepare an environmental impact statement and before the scoping process, the Bureau shall publish a notice of intent
as provided in CEQ Regulations (40 CFR 1501.7 and 1508.22).
(c) If, on the basis of an environmental assessment, the determination is made not to prepare a statement, a finding of “no
significant impact” shall be made in accordance with CEQ Regulation (40 CFR 1508.3) and shall be made available to the public as
specified in CEQ Regulation (40 CFR 1506.6).
§ 1.84 Draft environmental impact statements: Availability and comment.
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Except for proposals for legislation, environmental impact statements shall be prepared in two stages: Draft statement and final
statement.
(a) Proposed rules or guides. (1) An environmental impact statement, if deemed necessary, shall be in draft form at the time a
proposed rule or guide is published in theFederal Registerand shall accompany the proposal throughout the decisionmaking
process.
(2) The major decision points with respect to rules and guides are:
(i) Preliminary formulation of a staff proposal;
(ii) The time the proposal is initially published in theFederal Registeras a Commission proposal;
(iii) Presiding officer's report (in trade regulation rule proceedings);
(iv) Submission to the Commission of the staff report or recommendation for final action on the proposed guide or rule;
(v) Final decision by the Commission. The decision on whether or not to prepare an environmental impact statement should occur
at point (a)(2)(i) of this section. The publication of any draft impact statement should occur at point (a)(2)(ii) of this section. The
publication of the final environmental impact statement should occur at point (a)(2)(iv) of this section.
(b) Legislative proposals. In legislative matters, a legislative environmental impact statement shall be prepared in accordance with
CEQ Regulation (40 CFR 1506.8).
(c) In rule or guide proceedings the draft environmental impact statement shall be prepared in accordance with CEQ Regulation (40
CFR 1502.9) and shall be placed in the public record to which it pertains; in legislative matters, the legislative impact statement
shall be placed in a public record to be established, containing the legislative report to which it pertains; these will be available to
the public through the Office of the Secretary and will be published in full with the appropriate proposed rule, guide, or legislative
report; such statements shall also be filed with the Environmental Protection Agency's (EPA) Office of Environmental Review (CEQ
Regulation (40 CFR 1506.9)) for listing in the weeklyFederal RegisterNotice of draft environmental impact statements, and shall be
circulated, in accordance with CEQ Regulations (40 CFR 1502.19, 1506.6) to appropriate federal, state and local agencies.
(d) Forty-five (45) days will be allowed for comment on the draft environmental impact statement, calculated from the date of
publication in the EPA's weeklyFederal Registerlist of draft environmental impact statements. The Commission may in its discretion
grant such longer period as the complexity of the issues may warrant.
§ 1.85 Final environmental impact statements.
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(a) After the close of the comment period, the Bureau responsible for the matter will consider the comments received on the draft
environmental impact statement and will put the draft statement into final form in accordance with the requirements of CEQ
Regulation (40 CFR 1502.9(b)), attaching the comments received (or summaries if response was exceptionally voluminous).
(b) Upon Bureau approval of the final environmental impact statement the final statement will be
(1) Filed with the EPA;
(2) Forwarded to all parties which commented on the draft environmental impact statement and to other interested parties, if
practicable;
(3) Placed in the public record of the proposed rule or guide proceeding or legislative matter to which it pertains;
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(4) Distributed in any other way which the Bureau in consultation with CEQ deems appropriate.
(c) In rule and guide proceedings, at least thirty (30) days will be allowed for comment on the final environmental impact statement,
calculated from the date of publication in the EPA's weeklyFederal Registerlist of final environmental impact statements. In no event
will a final rule or guide be promulgated prior to ninety (90) days after notice of the draft environmental impact statement, except
where emergency action makes such time period impossible.
§ 1.86 Supplemental statements.
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Except for proposals for legislation, as provided in CEQ Regulation (40 CFR 1502.9(c)), the Commission shall publish supplements
to either draft or final environmental statements if:
(a) The Commission makes substantial changes in the proposed action that are relevant to environmental concerns; or
(b) There are significant new circumstances or information relevant to environmental concerns and bearing on the proposed action
and its impacts. In the course of a trade regulation rule proceeding, the supplement will be placed in the rulemaking record.
§ 1.87 NEPA and agency decisionmaking.
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In its final decision on the proposed action or, if appropriate, in its recommendation to Congress, the Commission shall consider all
the alternatives in the environmental impact statement and other relevant environmental documents and shall prepare a concise
statement which, in accordance with CEQ Regulation §1505.2, shall:
(a) Identify all alternatives considered by the Commission in reaching its decision or recommendation, specifying the alternatives
which were considered to be environmentally preferable;
(b) State whether all practicable means to avoid or minimize environmental harm from the alternative selected have been adopted,
and if not, why they were not.
§ 1.88 Implementing procedures.
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(a) The General Counsel is designated the official responsible for coordinating the Commission's efforts to improve environmental
quality. He will provide assistance to the staff in determining when an environmental impact statement is needed and in its
preparation.
(b) The Commission will determine finally whether an action complies with NEPA.
(c) The Directors of the Bureaus of Consumer Protection and Competition will supplement these procedures for their Bureaus to
assure that every proposed rule and guide is reviewed to assess the need for an environmental impact statement and that, where
need exists, an environmental impact statement is developed to assure timely consideration of environmental factors.
(d) The General Counsel will establish procedures to assure that every legislative proposal on a matter for which the Commission
has primary responsibility is reviewed to assess the need for an environmental impact statement and that, where need exists, and
environmental impact statement is developed to assure timely consideration of environmental factors.
(e) Parties seeking information or status reports on environmental impact statements and other elements of the NEPA process,
should contact the Assistant General Counsel for Litigation and Environmental Policy.
§ 1.89 Effect on prior actions.
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It is the policy of the Commission to apply these procedures to the fullest extent possible to proceedings which are already in
progress.
Subpart J—Economic Surveys, Investigations and Reports
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§ 1.91 Authority and purpose.
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General and special economic surveys, investigations, and reports are made by the Bureau of Economics under the authority of the
various laws which the Federal Trade Commission administers. The Commission may in any such survey or investigation invoke
any or all of the compulsory processes authorized by law.
[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15233, Apr. 4, 1975]
Subpart K—Penalties for Violation of Appliance Labeling Rules
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Source: 45 FR 67318, Oct. 10, 1980, unless otherwise noted.
§ 1.92 Scope.
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The rules in this subpart apply to and govern proceedings for the assessment of civil penalties for the violation of section 332 of the
Energy Policy and Conservation Act, 42 U.S.C. 6302, and the Commission's Rules on Labeling and Advertising of Consumer
Appliances, 16 CFR part 305, promulgated under sections 324 and 326 of the Energy Policy and Conservation Act, 42 U.S.C. 6294
and 6296.
§ 1.93 Notice of proposed penalty.
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(a) Notice. Before issuing an order assessing a civil penalty under this subpart against any person, the Commission shall provide to
such person notice of the proposed penalty. This notice shall:
(1) Inform such person of the opportunity to elect in writing within 30 days of receipt of the notice of proposed penalty to have
procedures of §1.95 (in lieu of those of §1.94) apply with respect to such assessment; and
(2) Include a copy of a proposed complaint conforming to the provision of §3.11(b) (1) and (2) of the Commission's Rules of
Practice, or a statement of the material facts constituting the alleged violation and the legal basis for the proposed penalty; and
(3) Include the amount of the proposed penalty; and
(4) Include a statement of the procedural rules that the Commission will follow if respondent elects to proceed under §1.94 unless
the Commission chooses to follow subparts B, C, D, E, and F of part 3 of this chapter.
(b) Election. Within 30 days of receipt of the notice of proposed penalty, the respondent shall, if it wishes to elect to have the
procedures of §1.95 apply, notify the Commission of the election in writing. The notification, to be filed in accordance with §4.2 of
this chapter, may include any factual or legal reasons for which the proposed assessment order should not issue, should be
reduced in amount, or should otherwise be modified.
§ 1.94 Commission proceeding to assess civil penalty.
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If the respondent fails to elect to have the procedures of §1.95 apply, the Commission shall determine whether to issue a complaint
and thereby commence an adjudicative proceeding in conformance with section 333(d)(2)(A) of the Energy Policy and
Conservation Act, 42 U.S.C. 6303(d)(2)(A). If the Commission votes to issue a complaint, the proceeding shall be conducted in
accordance with subparts B, C, D, E and F of part 3 of this chapter, unless otherwise ordered in the notice of proposed penalty. In
assessing a penalty, the Commission shall take into account the factors listed in §1.97.
§ 1.95 Procedures upon election.
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(a) After receipt of the notification of election to apply the procedures of this section pursuant to §1.93, the Commission shall
promptly assess such penalty as it deems appropriate, in accordance with §1.97.
(b) If the civil penalty has not been paid within 60 calendar days after the assessment order has been issued under paragraph (a)
of this section, the General Counsel, unless otherwise directed, shall institute an action in the appropriate district court of the
United States for an order enforcing the assessment of the civil penalty.
(c) Any election to have this section apply may not be revoked except with the consent of the Commission.
§ 1.96 Compromise of penalty.
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The Commission may compromise any penalty or proposed penalty at any time, with leave of court when necessary, taking into
account the nature and degree of violation and the impact of a penalty upon a particular respondent.
§ 1.97 Amount of penalty.
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All penalties assessed under this subchapter shall be in the amount per violation as described in section 333(a) of the Energy
Policy and Conservation Act, 42 U.S.C. 6303(a), adjusted for inflation pursuant to §1.98, unless the Commission otherwise directs.
In considering the amount of penalty, the Commission shall take into account:
(a) Respondent's size and ability to pay;
(b) Respondent's good faith;
(c) Any history of previous violations;
(d) The deterrent effect of the penalty action;
(e) The length of time involved before the Commission was made aware of the violation;
(f) The gravity of the violation, including the amount of harm to consumers and the public caused by the violation; and
(g) Such other matters as justice may require.
[32 FR 8444, June 13, 1967, as amended at 61 FR 54548, Oct. 21, 1996]
Subpart L—Civil Penalty Adjustments Under the Federal Civil Penalties Inflation Adjustment Act of 1990, as Amended by the Debt Collection
Improvement Act of 1996
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Authority: 28 U.S.C. 2461 note.
Source: 61 FR 54549, Oct. 21, 1996, unless otherwise noted.
§ 1.98 Adjustment of civil monetary penalty amounts.
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This section makes inflation adjustments in the dollar amounts of civil monetary penalties provided by law within the Commission's
jurisdiction. The following civil penalty amounts apply to violations occurring after November 20, 2000:
(a) Section 7A(g)(1) of the Clayton Act, 15 U.S.C. 18a(g)(1)—$11,000;
(b) Section 11(l) of the Clayton Act, 15 U.S.C. 21( l )—$6,500;
(c) Section 5( 1 ) of the FTC Act, 15 U.S.C. 45( 1 )—$11,000;
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(d) Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. 45(m)(1)(A)—$11,000;
(e) Section 5(m)(1)(B) of the FTC Act, 15 U.S.C. 45(m)(1)(B)—$11,000;
(f) Section 10 of the FTC Act, 15 U.S.C. 50—$110;
(g) Section 5 of the Webb-Pomerene (Export Trade) Act, 15 U.S.C. 65—$110;
(h) Section 6(b) of the Wool Products Labeling Act, 15 U.S.C. 68d(b)—$110;
(i) Section 3(e) of the Fur Products Labeling Act, 15 U.S.C. 69a(e)—$110;
(j) Section 8(d)(2) of the Fur Products Labeling Act, 15 U.S.C. 69f(d)(2)—$110;
(k) Section 333(a) of the Energy Policy and Conservation Act, 42 U.S.C. 6303(a)—$110;
(l) Sections 525(a) and (b) of the Energy Policy and Conservation Act, 42 U.S.C. 6395(a) and (b), respectively—$6,500 and
$11,000, respectively; and
(m) Civil monetary penalties authorized by reference to the Federal Trade Commission Act under any other provision of law within
the jurisdiction of the Commission—refer to the amounts set forth in paragraphs (c), (d), (e) and (f) of this section, as applicable.
[65 FR 69666, Nov. 20, 2000, as amended at 69 FR 76612, Dec. 22, 2004]
Subpart M—Submissions Under the Small Business Regulatory Enforcement Fairness Act
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Authority: 5 U.S.C. 801–804.
§ 1.99 Submission of rules, guides, interpretations, and policy statements to Congress and the Comptroller General.
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Whenever the Commission issues or substantively amends a rule or industry guide or formally adopts an interpretation or policy
statement that constitutes a “rule” within the meaning of 5 U.S.C. 804(3), a copy of the final rule, guide, interpretation or statement,
together with a concise description, the proposed effective date, and a statement of whether the rule, guide, interpretation or
statement is a “major rule” within the meaning of 5 U.S.C. 804(2), will be transmitted to each House of Congress and to the
Comptroller General. The material transmitted to the Comptroller General will also include any additional relevant information
required by 5 U.S.C. 801(a)(1)(B). This provision generally applies to rules issued or substantively amended pursuant to §1.14(c),
§1.15(a), §1.19, or §1.26(d); industry guides issued pursuant to §1.6; interpretations and policy statements formally adopted by the
Commission; and any rule of agency organization, practice or procedure that substantially affects the rights or obligations of
non-agency parties.
[63 FR 36340, July 8, 1998]
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Title 16: Commercial Practices
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PART 2—NONADJUDICATIVE PROCEDURES
Section Contents
Subpart A—Inquiries; Investigations; Compulsory Processes
§ 2.1 How initiated.
§ 2.2 Request for Commission action.
§ 2.3 Policy as to private controversies.
§ 2.4 Investigational policy.
§ 2.5 By whom conducted.
§ 2.6 Notification of purpose.
§ 2.7 Compulsory process in investigations.
§ 2.8 Investigational hearings.
§ 2.8A Withholding requested material.
§ 2.9 Rights of witnesses in investigations.
§ 2.10 Depositions.
§ 2.11 Orders requiring access.
§ 2.12 Reports.
§ 2.13 Noncompliance with compulsory processes.
§ 2.14 Disposition.
§ 2.15 Orders requiring witnesses to testify or provide other information and granting immunity.
§ 2.16 Custodians.
Subpart B—Petitions Filed Under Section 7A of the Clayton Act, as Amended, for Review of Requests for
Additional Information or Documentary Material
§ 2.20 Petitions for review of requests for additional information or documentary material.
Subpart C—Consent Order Procedure
§ 2.31
§ 2.32
§ 2.33
§ 2.34
Opportunity to submit a proposed consent order.
Agreement.
Compliance procedure.
Disposition.
Subpart D—Reports of Compliance
§ 2.41 Reports of compliance.
Subpart E—Requests To Reopen
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§ 2.51 Requests to reopen.
Authority: 15 U.S.C. 46, unless otherwise noted.
Subpart A—Inquiries; Investigations; Compulsory Processes
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§ 2.1 How initiated.
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Commission investigations and inquiries may be originated upon the request of the President, Congress, governmental agencies,
or the Attorney General; upon referrals by the courts; upon complaint by members of the public; or by the Commission upon its own
initiative. The Commission has delegated to the Director, Deputy Directors, and Assistant Directors of the Bureau of Competition,
the Director, Deputy Directors, and Associate Directors of the Bureau of Consumer Protection and, the Regional Directors and
Assistant Regional Directors of the Commission's regional offices, without power of redelegation, limited authority to initiate
investigations. The Director of the Bureau of Competition has also been delegated, without power of redelegation, authority to open
investigations in response to requests pursuant to an agreement under the International Antitrust Enforcement Assistance Act, 15
U.S.C. 6201 et seq., if the requests do not ask the Commission to use process. Before responding to such a request, the Bureau
Director shall transmit the proposed response to the Secretary and the Secretary shall notify the Commission of the proposed
response. If no Commissioner objects within three days following the Commission's receipt of such notification, the Secretary shall
inform the Bureau Director that he or she may proceed.
[48 FR 41374, Sept. 15, 1983, as amended at 50 FR 53304, Dec. 31, 1985; 65 FR 67259, Nov. 9, 2000]
§ 2.2 Request for Commission action.
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(a) Any individual, partnership, corporation, association, or organization may request the Commission to institute an investigation in
respect to any matter over which the Commission has jurisdiction.
(b) Such request should be in the form of a signed statement setting forth the alleged violation of law with such supporting
information as is available, and the name and address of the person or persons complained of. No forms or formal procedures are
required.
(c) The person making the request is not regarded as a party to any proceeding which might result from the investigation.
(d) It is the general Commission policy not to publish or divulge the name of an applicant or complaining party except as required by
law or by the Commission's rules. Where a complaint is by a consumer or consumer representative concerning a specific consumer
product or service, the Commission, in the course of a referral of the complaint or of an investigation, may disclose the identity of
the complainant or complainants. In referring any such consumer complaint, the Commission specifically retains its right to take
such action as it deems appropriate in the public interest and under any of the statutes which it administers.
[32 FR 8446, June 13, 1967, as amended at 35 FR 10146, June 20, 1970]
§ 2.3 Policy as to private controversies.
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The Commission acts only in the public interest and does not initiate an investigation or take other action when the alleged violation
of law is merely a matter of private controversy and does not tend adversely to affect the public.
[32 FR 8446, June 13, 1967]
§ 2.4 Investigational policy.
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The Commission encourages voluntary cooperation in its investigations. Where the public interest requires, however, the
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Commission may, in any matter under investigation adopt a resolution authorizing the use of any or all of the compulsory processes
provided for by law.
[45 FR 36341, May 29, 1980]
§ 2.5 By whom conducted.
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Inquiries and investigations are conducted under the various statutes administered by the Commission by Commission
representatives designated and duly authorized for the purpose. Such representatives are “examiners” or “Commission
investigators” within the meaning of the Federal Trade Commission Act and are authorized to exercise and perform the duties of
their office in accordance with the laws of the United States and the regulations of the Commission. Included among such duties is
the administration of oaths and affirmations in any matter under investigation by the Commission.
[45 FR 36341, May 29, 1980]
§ 2.6 Notification of purpose.
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Any person under investigation compelled or requested to furnish information or documentary evidence shall be advised of the
purpose and scope of the investigation and of the nature of the conduct constituting the alleged violation which is under
investigation and the provisions of law applicable to such violation.
[46 FR 26290, May 12, 1981; 46 FR 27634, May 21, 1981]
§ 2.7 Compulsory process in investigations.
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(a) In general. The Commission or any member thereof may, pursuant to a Commission resolution, issue a subpoena or a civil
investigative demand directing the person named therein to appear before a designated representative at a designated time and
place to testify or to produce documentary evidence, or both, or, in the case of a civil investigative demand, to provide a written
report or answers to questions relating to any matter under investigation by the Commission. Material for which a civil investigative
demand has been issued shall be made available for inspection and copying at the principal place of business of the person or at
such other place or in such other manner as the person and the custodian designated pursuant to §2.16 agree.
(b) Civil investigative demands. Civil investigative demands shall be the only form of compulsory process issued in investigations
with respect to unfair or deceptive acts or practices within the meaning of FTC Act section 5(a)(1).
(1) Civil investigative demands for the production of documentary material shall describe each class of material to be produced with
such definiteness and certainty as to permit such material to be fairly identified, 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 identify the custodian to whom such material shall be made available. Production of documentary
material in response to a civil investigative demand shall be made in accordance with the procedures prescribed by section
20(c)(11) of the Federal Trade Commission Act.
(2) Civil investigative demands for tangible things will describe each class of tangible things to be produced with such definiteness
and certainty as to permit such things to be fairly identified, 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 identify the custodian to whom such things
shall be submitted. Submission of tangible things in response to a civil investigative demand shall be made in accordance with the
procedures prescribed by section 20(c)(12) of the Federal Trade Commission Act.
(3) Civil investigative demands for written reports or answers to questions shall propound with definiteness and certainty the
reports to be produced or the questions to be answered, prescribe a date or dates at which time written reports or answers to
questions shall be submitted, and identify the custodian to whom such reports or answers shall be submitted. Response to a civil
investigative demand for a written report or answers to questions shall be made in accordance with the procedures prescribed by
section 20(c)(13) of the Federal Trade Commission Act.
(4) Civil investigative demands for the giving of oral testimony shall prescribe a date, time, and place at which oral testimony shall
be commenced, and identify a Commission investigator who shall conduct the investigation and the custodian to whom the
transcript of such investigation shall be submitted. Oral testimony in response to a civil investigative demand shall be taken in
accordance with the procedures prescribed by section 20(c)(14) of the Federal Trade Commission Act.
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(c) The Bureau Director, Deputy Directors and Assistant Directors of the Bureaus of Competition and Economics, the Director,
Deputy Directors and Associate Directors of the Bureau of Consumer Protection, Regional Directors, and Assistant Regional
Directors, are authorized to negotiate and approve the terms of satisfactory compliance with subpoenas and civil investigative
demands and, for good cause shown, may extend the time prescribed for compliance. Specifically, the subpoena power conferred
by Section 329 of the Energy Policy and Conservation Act (42 U.S.C. 6299) is included within this delegation.
(d) Petitions to limit or quash —(1) General. Any petition to limit or quash any investigational subpoena or civil investigative
demand shall be filed with the Secretary of the Commission within twenty (20) days after service of the subpoena or civil
investigative demand, or, if the return date is less than twenty (20) days after service, prior to the return date. Such petition shall
set forth all assertions of privilege or other factual and legal objections to the subpoena or civil investigative demand, including all
appropriate arguments, affidavits and other supporting documentation.
(2) Statement. Each petition shall be accompanied by a signed statement representing that counsel for the petitioner has conferred
with counsel for the Commission in an effort in good faith to resolve by agreement the issues raised by the petition and has been
unable to reach such an agreement. If some of the matters in controversy have been resolved by agreement, the statement shall
specify the matters so resolved and the matters remaining unresolved. The statement shall recite the date, time, and place of each
such conference between counsel, and the names of all parties participating in each such conference.
(3) Extensions of time. Bureau Directors, Deputy Directors, and Assistant Directors in the Bureaus of Competition and Economics,
the Bureau Director, Deputy Directors and Associate Directors in the Bureau of Consumer Protection, Regional Directors and
Assistant Regional Directors are delegated, without power of redelegation, the authority to rule upon requests for extensions of time
within which to file such petitions.
(4) Disposition. A Commissioner, to be designated by the Chairman, is delegated, without power of redelegation, the authority to
rule upon petitions to limit or quash an investigational subpoena or civil investigative demand, but the designated Commissioner
may, in his or her sole discretion, refer a petition to the full Commission for determination.
(e) Stay of compliance period. The timely filing of a petition to limit or quash any investigational subpoena or civil investigative
demand shall stay the time permitted for compliance with the portion challenged. If the petition is denied in whole or in part, the
ruling will specify a new return date.
(f) Review. Any petitioner, within three days after service of a ruling by the designated Commissioner denying all or a portion of the
relief requested in its petition, may file with the Secretary of the Commission a request that the full Commission review the ruling.
The timely filing of such a request shall not stay the return date specified in the ruling, unless otherwise specified by the
Commission.
(g) Public disclosure. All petitions to limit or quash investigational subpoenas or civil investigative demands and the responses
thereto are part of the public records of the Commission, except for information exempt from disclosure under §4.10(a) of this
chapter.
[45 FR 36342, May 29, 1980, as amended at 46 FR 26290, May 12, 1981; 48 FR 41375, Sept. 15, 1983; 49 FR 6089, Feb. 17,
1984; 50 FR 42672, Oct. 22, 1985; 60 FR 37747, July 21, 1995]
§ 2.8 Investigational hearings.
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(a) Investigational hearings, as distinguished from hearings in adjudicative proceedings, may be conducted in the course of any
investigation undertaken by the Commission, including rulemaking proceedings under subpart B of part 1 of this chapter, inquiries
initiated for the purpose of determining whether or not a respondent is complying with an order of the Commission or the manner in
which decrees in suits brought by the United States under the antitrust laws are being carried out, the development of facts in
cases referred by the courts to the Commission as a master in chancery, and investigations made under section 5 of the Export
Trade Act.
(b) Investigational hearings shall be conducted by any Commission member, examiner, attorney, investigator, or other person duly
designated under the FTC Act, for the purpose of hearing the testimony of witnesses and receiving documents and other data
relating to any subject under investigation. Such hearings shall be stenographically reported and a transcript thereof shall be made
a part of the record of the investigation.
(c) Unless otherwise ordered by the Commission, investigational hearings shall not be public. In investigational hearings conducted
pursuant to a civil investigative demand for the giving of oral testimony, the Commission investigators shall exclude from the
hearing room all other persons except the person being examined, his counsel, the officer before whom the testimony is to be
taken, and the stenographer recording such testimony. A copy of the transcript shall promptly be forwarded by the Commission
investigator to the custodian designated in §2.16.
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[32 FR 8446, June 13, 1967, as amended at 45 FR 36342, May 29, 1980; 61 FR 50645, Sept. 26, 1996]
§ 2.8A Withholding requested material.
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(a) Any person withholding material responsive to an investigational subpoena or civil investigative demand issued pursuant to
§2.7, an access order issued pursuant to §2.11, an order to file a report issued pursuant to §2.12, or any other request for
production of material issued under this part, shall assert a claim of privilege or any similar claim not later than the date set for the
production of material. Such person shall, if so directed in the subpoena, civil investigative demand or other request for production,
submit, together with such claim, a schedule of the items withheld which states individually as to each such item the type, specific
subject matter, and date of the item; the names, addresses, positions, and organizations of all authors and recipients of the item;
and the specific grounds for claiming that the item is privileged.
(b) A person withholding material solely for reasons described in §2.8A(a) shall comply with the requirements of that subsection in
lieu of filing a motion to limit or quash compulsory process.
(Sec. 5, 38 Stat. 719 as amended (15 U.S.C. 45))
[44 FR 54042, Sept. 18, 1979, as amended at 45 FR 36342, May 29, 1980]
§ 2.9 Rights of witnesses in investigations.
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(a) Any person compelled to submit data to the Commission or to testify in an investigational hearing shall be entitled to retain a
copy or, on payment of lawfully prescribed costs, procure a copy of any document submitted by him and of his own testimony as
stenographically reported, except that in a nonpublic hearing the witness may for good cause be limited to inspection of the official
transcript of his testimony. Where the investigational hearing has been conducted pursuant to a civil investigative demand issued
under section 20 of the Federal Trade Commission Act, upon completion of transcription of the testimony of the witness, the
witness shall be offered an opportunity to read the transcript of his testimony. 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 witnesss cannot be
found, is ill, waives in writing his right to signature or refuses to sign. If the transcript is not signed by the witness within thirty days
of his being afforded a reasonable opportunity to review it, the Commission investigator shall take the actions prescribed by section
20(c)(12)(E)(ii) of the Federal Trade Commission Act.
(b) Any witness compelled to appear in person in an investigational hearing may be accompanied, represented, and advised by
counsel as follows:
(1) Counsel for a witness may advise the witness, in confidence and upon the initiative of either counsel or the witness, with
respect to any question asked of the witness. If the witness refuses to answer a question, then counsel may briefly state on the
record if he has advised the witness not to answer the question and the legal grounds for such refusal.
(2) Where it is claimed that the testimony or other evidence sought from a witness is outside the scope of the investigation, or that
the witness is privileged to refuse to answer a question or to produce other evidence, the witness or counsel for the witness may
object on the record to the question or requirement and may state briefly and precisely the ground therefor. The witness and his
counsel shall not otherwise object to or refuse to answer any question, and they shall not otherwise interrupt the oral examination.
(3) Any objections made under the rules in this part will be treated as continuing objections and preserved throughout the further
course of the hearing without the necessity for repeating them as to any similar line of inquiry. Cumulative objections are
unnecessary. Repetition of the grounds for any objection will not be allowed.
(4) Counsel for a witness may not, for any purpose or to any extent not allowed by paragraphs (b) (1) and (2) of this section,
interrupt the examination of the witness by making any objections or statements on the record. Petitions challenging the
Commission's authority to conduct the investigation or the sufficiency or legality of the subpoena or civil investigative demand must
have been addressed to the Commission in advance of the hearing. Copies of such petitions may be filed as part of the record of
the investigation with the person conducting the investigational hearing, but no arguments in support thereof will be allowed at the
hearing.
(5) Following completion of the examination of a witness, counsel for the witness may on the record request the person conducting
the investigational hearing to permit the witness of clarify any of his or her answers. The grant or denial of such request shall be
within the sole discretion of the person conducting the hearing.
(6) The person conducting the hearing shall take all necessary action to regulate the course of the hearing to avoid delay and to
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prevent or restrain disorderly, dilatory, obstructionist, or contumacious conduct, or contemptuous language. Such person shall, for
reasons stated on the record, immediately report to the Commission any instances where an attorney has allegedly refused to
comply with his or her directions, or has allegedly engaged in disorderly, dilatory, obstructionist, or contumacious conduct, or
contemptuous language in the course of the hearing. The Commission, acting pursuant to §4.1(e) of this chapter, will thereupon
take such further action, if any, as the circumstances warrant, including suspension or disbarment of the attorney from further
practice before the Commission or exclusion from further participation in the particular investigation.
(18 U.S.C. 6002, 6004)
[32 FR 8446, June 13, 1967, as amended at 45 FR 36343, May 29, 1980; 45 FR 39244, June 10, 1980; 46 FR 26290, May 12,
1981; 50 FR 53304, Dec. 31, 1985; 61 FR 50645, Sept. 26, 1996]
§ 2.10 Depositions.
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In investigations other than those conducted under section 20 of the Federal Trade Commission Act, the Commission may order
testimony to be taken by deposition at any stage of such investigation. Such depositions may be taken before any person having
power to administer oaths who may be designated by the Commission. The testimony shall be reduced to writing by the person
taking the deposition, or under his direction, and shall then be subscribed to by the deponent. Any person may be compelled to
appear and be deposed and to produce documentary evidence in the same manner as witnesses may be compelled to appear and
testify and produce documentary evidence as provided in §§2.7 through 2.9.
[45 FR 36343, May 29, 1980, as amended at 50 FR 53304, Dec. 31, 1985]
§ 2.11 Orders requiring access.
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(a) In investigations other than those conducted under section 20 of the Federal Trade Commission Act, the Commission may issue
an order requiring any person, partnership or corporation being investigated to grant access to files for the purpose of examination
and the right to copy any documentary evidence. The Directors, Deputy Directors and Assistant Directors of the Bureaus of
Competition and Economics, the Director, Deputy Directors and Associate Directors of the Bureau of Consumer Protection, the
Regional Directors, and Assistant Regional Directors of the Commission's regional offices, pursuant to delegation of authority by
the Commission, without power of redelegation, are authorized, for good cause shown, to extend the time prescribed for
compliance with orders requiring access issued during the investigation of any matter.
(b) Any petition to limit or quash an order requiring access shall be filed with the Secretary of the Commission within twenty (20)
days after service of the order, or, if the date for compliance is less than twenty (20) days after service of the order, then before the
return date. Such petition shall set forth all assertions of privilege or other factual and legal objections to the order requiring access,
including all appropriate arguments, affidavits and other supporting documentation. All petitions to limit or quash orders requiring
access shall be ruled upon by the Commission itself, but the above-designated Directors, Deputy Directors, Assistant Directors,
Associate Directors, Regional Directors and Assistant Regional Directors are delegated, without power of redelegation, the
authority to rule upon motions for extensions of time within which to file petitions to limit or quash orders requiring access.
(c) The timely filing of any petition to limit or quash such an order shall stay the requirement of compliance if the Commission has
not ruled upon the motion by the date of compliance. If it rules on or subsequent to the date required for compliance and its ruling
denies the petition in whole or in part, the Commission shall specify a new date of compliance.
(d) All petitions to limit or quash orders requiring access, and the Commission's responses thereto, are part of the public records of
the Commission, except for information exempt from disclosure under §4.10(a) of this chapter.
[46 FR 26290, May 12, 1981, as amended at 48 FR 41375, Sept. 15, 1983]
§ 2.12 Reports.
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(a) In investigations other than those covered by section 20 of the Federal Trade Commission Act the Commission may issue an
order requiring a person, partnership, or corporation to file a report or answers in writing to specific questions relating to any matter
under investigation, study or survey, or under any of the Commission's reporting programs.
(b) The Directors, Deputy Directors and Assistant Directors of the Bureaus of Competition and Economics, the Director, Deputy
Directors and Associate Directors of the Bureau of Consumer Protection, and the Regional Directors and Assistant Regional
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Directors of the Commission's regional offices, pursuant to delegation of authority by the Commission, without power of
redelegation, are authorized, for good cause shown, to extend the time prescribed for compliance with orders requiring reports or
answers to questions issued during the investigation, study or survey of any matter or in connection with any of the Commission's
reporting programs.
(c) Any petition to limit or quash an order requiring a report or answer to specific questions shall be filed with the Secretary of the
Commission within twenty (20) days after service of the order, or, if the date for compliance is less than twenty (20) days after
service of the order, then before the return date. Such petition shall set forth all assertions of privilege or other factual and legal
objections to the order requiring a report or answer to specific questions, including all appropriate arguments, affidavits and other
supporting documentation. All petitions to limit or quash orders requiring reports or answers to questions shall be ruled upon by the
Commission itself, but the above-designated Directors, Deputy Directors, Assistant Directors, Associate Directors, Regional
Directors and Assistant Regional Directors are delegated, without power of redelegation, the authority to rule upon motions for
extensions of time within which to file petitions to limit or quash orders requiring reports or answers to questions.
(d) Except as otherwise provided by the Commission, the timely filing of any petition to limit or quash such an order shall stay the
requirement of return on the portion challenged if the Commission has not ruled upon the petition by the return date. If it rules on or
subsequent to the return date and its ruling denies the petition in whole or in part, the Commission shall specify a new return date.
(e) All petitions to limit or quash orders requiring a report or answers to specific questions, and the Commission's responses
thereto, are part of the public records of the Commission, except for information exempt from disclosure under §4.10(a) of this
chapter.
[41 FR 54485, Dec. 14, 1976, as amended at 45 FR 36343, May 29, 1980; 46 FR 26290, May 12, 1981; 48 FR 41375, Sept. 15,
1983; 50 FR 53304, Dec. 31, 1985]
§ 2.13 Noncompliance with compulsory processes.
top
(a) In cases of failure to comply with Commission compulsory processes, appropriate action may be initiated by the Commission or
the Attorney General, including actions for enforcement, forfeiture, or penalties or criminal actions.
(b) The General Counsel, pursuant to delegation of authority by the Commission, without power of redelegation, is authorized:
(1) To institute, on behalf of the Commission, an enforcement proceeding in connection with the failure or refusal of a person,
partnership, or corporation to comply with, or to obey, a subpoena, or civil investigative demand if the return date or any extension
thereof has passed;
(2) To approve and have prepared and issued, in the name of the Commission when deemed appropriate by the General Counsel,
a notice of default in connection with the failure of a person, partnership, or corporation to timely file a report pursuant to section
6(b) of the Federal Trade Commission Act, if the return date or any extension thereof has passed;
(3) To institute, on behalf of the Commission, an enforcement proceeding and to request, on behalf of the Commission, the
institution, when deemed appropriate by the General Counsel, of a civil action in connection with the failure of a person,
partnership, or corporation to timely file a report pursuant to an order under section 6(b) of the Federal Trade Commission Act, if
the return date or any extension thereof has passed; and
(4) To seek civil contempt in cases where a court order enforcing compulsory process has been violated.
[41 FR 54485, Dec. 14, 1976, as amended at 45 FR 39244, June 10, 1980; 50 FR 53304, Dec. 31, 1985]
§ 2.14 Disposition.
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(a) When the facts disclosed by an investigation indicate that corrective action is warranted, and the matter is not subject to a
consent settlement pursuant to subpart C of this part, further proceedings may be instituted pursuant to the provisions of part 3 of
this chapter.
(b) When the facts disclosed by an investigation indicate that corrective action is not necessary or warranted in the public interest,
the investigational file will be closed. The matter may be further investigated at any time if circumstances so warrant.
(c) The Commission has delegated to the Director, Deputy Directors, and Assistant Directors of the Bureau of Competition, the
Director, Deputy Directors and Associate Directors of the Bureau of Consumer Protection, and Regional Directors, without power of
redelegation, limited authority to close investigations.
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[32 FR 8446, June 13, 1967, as amended at 42 FR 42195, Aug. 22, 1977; 48 FR 41375, Sept. 15, 1983; 50 FR 53304, Dec. 31,
1985]
§ 2.15 Orders requiring witnesses to testify or provide other information and granting immunity.
top
(a) The Bureau Director, Deputy Directors, and Assistant Directors in the Bureaus of Competition and Economics, the Bureau
Director, Deputy Directors and Associate Directors of the Bureau of Consumer Protection, Regional Directors and Assistant
Regional Directors are hereby authorized to request, through the Commission's liaison officer, approval from the Attorney General
for the issuance of an order requiring a witness to testify or provide other information granting immunity under title 18, section 6002,
of the United States Code.
(b) The Commission retains the right to review the exercise of any of the functions delegated under paragraph (a) of this section.
Appeals to the Commission from an order requiring a witness to testify or provide other information will be entertained by the
Commission only upon a showing that a substantial question is involved, the determination of which is essential to serve the
interests of justice. Such appeals shall be made on the record and shall be in the form of a brief not to exceed fifteen (15) pages in
length and shall be filed within five (5) days after notice of the complained of action. The appeal shall not operate to suspend the
hearing unless otherwise determined by the person conducting the hearing or ordered by the Commission.
(18 U.S.C. 6002, 6004)
[37 FR 5016, Mar. 9, 1972, as amended at 48 FR 41375, Sept. 15, 1983; 61 FR 50645, Sept. 26, 1996]
§ 2.16 Custodians.
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(a) Designation. The Commission shall designate a custodian and one or more deputy custodians for material to be delivered
pursuant to compulsory process in an investigation, a purpose of which is to determine whether any person may have violated any
provision of the laws administered by the Commission. The custodian shall have the powers and duties prescribed by section 21 of
the FTC Act. Deputy custodians may perform all of the duties assigned to custodians. The appropriate Bureau Directors, Deputy
Directors, Associate Directors in the Bureau of Consumer Protection, Assistant Directors in the Bureau of Competition, Regional
Directors or Assistant Regional Directors shall take the action required by section 21(b)(7) of the FTC Act if it is necessary to
replace a custodian or deputy custodian.
(b) Copying of custodial documents. The custodian designated pursuant to section 21 of the Federal Trade Commission Act
(subject to the general supervision of the Executive Director) may, from among the material submitted, select the material the
copying of which is necessary or appropriate for the official use of the Commission, and shall determine, the number of copies of
any such material that are to be reproduced. Copies of material in the physical possession of the custodian may be reproduced by
or under the authority of an employee of the Commission designated by the custodian.
(c) Material produced pursuant to the Federal Trade Commission Act, while in the custody of the custodian, shall be for the official
use of the Commission in accordance with the Act; but such material shall upon reasonable notice to the custodian be made
available for examination by the person who produced such material, or his duly authorized representative, during regular office
hours established for the Commission.
[45 FR 36343, May 29, 1980, as amended at 46 FR 26291, May 12, 1981; 48 FR 41376, Sept. 15, 1983; 50 FR 53305, Dec. 31,
1985]
Subpart B—Petitions Filed Under Section 7A of the Clayton Act, as Amended, for Review of Requests for Additional Information or Documentary
Material
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Authority: 15 U.S.C. 18a(d), (e).
§ 2.20 Petitions for review of requests for additional information or documentary material.
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(a) For purposes of this section, “second request” refers to a request for additional information or documentary material issued
under 16 CFR 803.20.
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(b) Second request procedures —(1) Notice. Every request for additional information or documentary material issued under 16
CFR 803.20 shall inform the recipient(s) of the request that the recipient has a right to discuss modifications or clarifications of the
request with an authorized representative of the Commission. The request shall identify the name and telephone number of at least
one such representative.
(2) Second request conference. An authorized representative of the Commission shall invite the recipient to discuss the request for
additional information or documentary material soon after the request is issued. At the conference, the authorized representative
shall discuss the competitive issues raised by the proposed transaction, to the extent then known, and confer with the recipient
about the most effective way to obtain information and documents relating to the competitive issues raised. The conference will
ordinarily take place within 5 business days of issuance of the request, unless the recipient declines the invitation or requests a
later date.
(3) Modification of requests. The authorized representative shall modify the request for additional information or documentary
material, or recommend such modification to the responsible Assistant Director of the Bureau of Competition, if he or she
determines that a less burdensome request would be consistent with the needs of the investigation. A request for additional
information or documentary material may be modified only in writing signed by the authorized representative.
(4) Review of request decisions. (i) If the recipient of a request for additional information or documentary material believes that
compliance with portions of the request should not be required and the recipient has exhausted reasonable efforts to obtain
clarifications or modifications of the request from an authorized representative, the recipient may petition the General Counsel to
consider and rule on unresolved issues. Such petition shall be submitted by letter to the General Counsel with a copy to the
authorized representative who participated in the second request conference held under paragraph (b)(3) of this section. The
petition shall not, without leave of the General Counsel, exceed 500 words, excluding any cover, table of contents, table of
authorities, glossaries, proposed form of relief and any appendices containing only sections of statutes or regulations, and shall
address petitioner's efforts to obtain modification from the authorized representative.
(ii) Within 2 business days after receiving such a petition, the General Counsel shall set a date for a conference with the petitioner
and the authorized representative.
(iii) Such conference shall take place within 7 business days after the General Counsel receives the petition, unless the request
recipient agrees to a later date or declines to attend a conference.
(iv) Not later than 3 business days before the date of the conference, the petitioner and the authorized representative may each
submit memoranda regarding the issues presented in the petition. Such memoranda shall not, without leave of the General
Counsel, exceed 1250 words, excluding any cover, table of contents, table of authorities, glossaries, proposed form of relief and
appendices containing only sections of statutes or regulations. Such memoranda shall be delivered to counsel for the other
participants on the same day they are delivered to the General Counsel.
(v) The petitioner's memorandum shall include a concise statement of reasons why the request should be modified, together with
proposed modifications, or a concise explanation why the recipient believes it has substantially complied with the request for
additional information or documentary material.
(vi) The authorized representative's memorandum shall include a concise statement of reasons why the petitioner's proposed
modifications are inappropriate or a concise statement of the reasons why the representative believes that the petitioner has not
substantially complied with the request for additional information and documentary material.
(vii) The General Counsel shall advise the petitioner and the authorized representative of his or her decision within 3 business days
following the conference.
[66 FR 8721, Feb. 1, 2001]
Subpart C—Consent Order Procedure
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§ 2.31 Opportunity to submit a proposed consent order.
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(a) Where time, the nature of the proceeding, and the public interest permit, any individual, partnership, or corporation being
investigated shall be afforded the opportunity to submit through the operating Bureau or Regional Office having responsibility in the
matter a proposal for disposition of the matter in the form of a consent order agreement executed by the party being investigated
and complying with the requirements of §2.32, for consideration by the Commission in connection with a proposed complaint
submitted by the Commission's staff.
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(b) After a complaint has been issued, the consent order procedure described in this part will not be available except as provided in
§3.25(b).
[40 FR 15235, Apr. 4, 1975]
§ 2.32 Agreement.
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Every agreement in settlement of a Commission complaint shall contain, in addition to an appropriate proposed order, either an
admission of the proposed findings of fact and conclusions of law submitted simultaneously by the Commission's staff or an
admission of all jurisdictional facts and an express waiver of the requirement that the Commission's decision contain a statement of
findings of fact and conclusions of law. Every agreement also shall waive further procedural steps and all rights to seek judicial
review or otherwise to challenge or contest the validity of the order. In addition, where appropriate, every agreement in settlement
of a Commission complaint challenging the lawfulness of a proposed merger or acquisition shall also contain a hold-separate or
asset-maintenance order. The agreement may state that the signing thereof is for settlement purposes only and does not constitute
an admission by any party that the law has been violated as alleged in the complaint. Every agreement shall provide that:
(a) The complaint may be used in construing the terms of the order;
(b) No agreement, understanding, representation, or interpretation not contained in the order or the aforementioned agreement may
be used to vary or to contradict the terms of the order;
(c) The order will have the same force and effect and may be altered, modified or set aside in the same manner provided by statute
for Commission orders issued on a litigated or stipulated record;
(d) Except as provided by order of the Commission, any order issued pursuant to the agreement will become final upon service;
(e) The agreement will not become a part of the public record unless and until it is accepted by the Commission; and
(f) If the Commission accepts the agreement, further proceedings will be governed by §2.34.
[64 FR 46268, Aug. 25, 1999]
§ 2.33 Compliance procedure.
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The Commission may in its discretion require that a proposed agreement containing an order to cease and desist be accompanied
by an initial report signed by the respondent setting forth in precise detail the manner in which the respondent will comply with the
order when and if entered. Such report will not become part of the public record unless and until the accompanying agreement and
order are accepted by the Commission. At the time any such report is submitted a respondent may request confidentiality for any
portion thereof with a precise showing of justification therefor as set out in §4.9(c) and the General Counsel or the General
Counsel's designee will dispose of such requests in accordance with that section.
[63 FR 32977, June 17, 1998]
§ 2.34 Disposition.
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(a) Acceptance of proposed consent agreement. The Commission may accept or refuse to accept a proposed consent agreement.
Except as otherwise provided in paragraph (c) of this section, acceptance does not constitute final approval, but it serves as the
basis for further actions leading to final disposition of the matter.
(b) Effectiveness of hold-separate or asset-maintenance order. Following acceptance of a consent agreement, the Commission
will, if it deems a hold-separate or asset-maintenance order appropriate, issue a complaint and such an order as agreed to by the
parties. Such order will be final upon service. The issuance of a complaint under this paragraph will neither commence an
adjudicatory proceeding subject to part 3 of this chapter nor subject the consent agreement proceeding to the prohibitions specified
in §4.7 of this chapter.
(c) Public comment. Promptly after its acceptance of the consent agreement, the Commission will place the order contained in the
consent agreement, the complaint, and the consent agreement on the public record for a period of 30 days, or such other period as
the Commission may specify, for the receipt of comments or views from any interested person. At the same time, the Commission
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will place on the public record an explanation of the provisions of the order and the relief to be obtained thereby and any other
information that it believes may help interested persons understand the order. The Commission also will publish the explanation in
theFederal Register.The Commission retains the discretion to issue a complaint and a Final Decision and Order, incorporating the
order contained in a consent agreement, in appropriate cases before seeking public comment. Unless directed otherwise by the
Commission, such Decision and Order will be final upon service.
(d) Comment on initial compliance report. If respondents have filed an initial report of compliance pursuant to §2.33, the
Commission will place that report on the public record, except for portions, if any, granted confidential treatment pursuant to §4.9(c)
of this chapter, with the complaint, the order, and the consent agreement.
(e) Action following comment period. (1) Following the comment period, on the basis of comments received or otherwise, the
Commission may either withdraw its acceptance of the agreement and so notify respondents, in which event it will take such other
action as it may consider appropriate, or issue and serve its complaint in such form as the circumstances may require and its
decision in disposition of the proceeding.
(2) The Commission, following the comment period, may determine, on the basis of the comments or otherwise, that a Final
Decision and Order that was issued in advance of the comment period should be modified. Absent agreement by respondents to
the modifications, the Commission may initiate a proceeding to reopen and modify the decision and order in accordance with
§3.72(b) of this chapter or commence a new administrative proceeding by issuing a complaint in accordance with §3.11 of this
chapter.
[64 FR 46269, Aug. 25, 1999]
Subpart D—Reports of Compliance
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§ 2.41 Reports of compliance.
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(a) In every proceeding in which the Commission has issued an order pursuant to the provisions of section 5 of the Federal Trade
Commission Act or section 11 of the Clayton Act, as amended, and except as otherwise specifically provided in any such order,
each respondent named in such order shall file with the Commission, within sixty (60) days after service thereof, or within such
other time as may be provided by the order or the rules in this chapter, a report in writing, signed by the respondent, setting forth in
detail the manner and form of his compliance with the order, and shall thereafter file with the Commission such further signed,
written reports of compliance as it may require. An original and one copy of each such report shall be filed with the Secretary of the
Commission, and one copy of each such report shall be filed with the Associate Director for Enforcement in the Bureau of
Consumer Protection (for consumer protection orders) or with the Assistant Director for Compliance in the Bureau of Competition
(for competition orders). Reports of compliance shall be under oath if so requested. Where the order prohibits the use of a false
advertisement of a food, drug, device, or cosmetic which may be injurious to health because of results from its use under the
conditions prescribed in the advertisement, or under such conditions as are customary or usual, or if the use of such advertisement
is with intent to defraud or mislead, or in any other case where the circumstances so warrant, the order may provide for an interim
report stating whether and how respondents intend to comply to be filed within ten (10) days after service of the order. Neither the
filing of an application for stay pursuant to §3.56, nor the filing of a petition for judicial review, shall operate to postpone the time for
filing a compliance report under the order or this section. If the Commission, or a court, determines to grant a stay of an order, or
portion thereof, pending judicial review, or if any order provision is automatically stayed by statute, no compliance report shall be
due as to those portions of the order that are stayed unless ordered by the court. Thereafter, as to orders, or portions thereof, that
are stayed, the time for filing a report of compliance shall begin to run de novo from the final judicial determination, except that if no
petition for certiorari has been filed following affirmance of the order of the Commission by a court of appeals, the compliance report
shall be due the day following the date on which the time expires for the filing of such petition. Staff of the Bureaus of Competition
and Consumer Protection will review such reports of compliance and may advise each respondent whether the staff intends to
recommend that the Commission take any enforcement action. The Commission may, however, institute proceedings, including
certification of facts to the Attorney General pursuant to the provisions of section 5(l) of the Federal Trade Commission Act (15
U.S.C. 45(l)) and section 11(1) of the Clayton Act, as amended (15 U.S.C. 21(1)), to enforce compliance with an order, without
advising a respondent whether the actions set forth in a report of compliance evidence compliance with the Commission's order or
without prior notice of any kind to a respondent.
(b) The Commission has delegated to the Director, the Deputy Directors, and the Assistant Director for Compliance of the Bureau
of Competition, and to the Director, the Deputy Directors, and the Associate Director for Enforcement of the Bureau of Consumer
Protection the authority to monitor compliance reports and to open and close compliance investigations. With respect to any
compliance matter which has received previous Commission consideration as to compliance or in which the Commission or any
Commissioner has expressed an interest, any matter proposed to be closed by reason of expense of investigation or testing, or any
matter involving substantial questions as to the public interest, Commission policy or statutory construction, the Bureaus shall
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submit an analysis to the Commission regarding their intended actions.
(c) The Commission has delegated to the Director, Deputy Directors, and Assistant Directors of the Bureau of Competition and to
the Director, Deputy Directors, and Associate Directors of the Bureau of Consumer Protection, and to the Regional Directors, the
authority, for good cause shown, to extend the time within which reports of compliance with orders to cease and desist may be
filed. It is to be noted, however, that an extension of time within which a report of compliance may be filed, or the filing of a report
which does not evidence full compliance with the order, does not in any circumstances suspend or relieve a respondent from his
obligation under the law with respect to compliance with such order. An order of the Commission to cease and desist becomes final
on the date and under the conditions provided in the Federal Trade Commission Act and the Clayton Act. Any person, partnership
or corporation against which an order to cease and desist has been issued who is not in full compliance with such order on and
after the date provided in these statutes for the order to become final is in violation of such order and is subject to an immediate
action for civil penalties. The authority under this paragraph may not be redelegated, except that the Associate Director for
Enforcement in the Bureau of Consumer Protection and the Assistant Director for Compliance in the Bureau of Competition may
each name a designee under this paragraph.
(d) Any respondent subject to a Commission order may request advice from the Commission as to whether a proposed course of
action, if pursued by it, will constitute compliance with such order. The request for advice should be submitted in writing to the
Secretary of the Commission and should include full and complete information regarding the proposed course of action. On the
basis of the facts submitted, as well as other information available to the Commission, the Commission will inform the respondent
whether or not the proposed course of action, if pursued, would constitute compliance with its order. A request ordinarily will be
considered inappropriate for such advice:
(1) Where the course of action is already being followed by the requesting party;
(2) Where the same or substantially the same course of action is under investigation or is or has been the subject of a current
proceeding, order, or decree initiated or obtained by the Commission or another governmental agency; or
(3) Where the proposed course of action or its effects may be such that an informed decision thereon cannot be made or could be
made only after extensive investigation, clinical study, testing or collateral inquiry.
Furthermore, the filing of a request for advice under this paragraph does not in any circumstances suspend or relieve a respondent
from his obligation under the law with respect to his compliance with the order. He must in any event be in full compliance on and
after the date the order becomes final as prescribed by statute referred to in paragraph (b) of this section. Advice to respondents
under this paragraph will be published by the Commission in the same manner and subject to the same restrictions and
considerations as advisory opinions under §1.4 of this chapter.
(e) The Commission may at any time reconsider any advice given under this section and, where the public interest requires,
rescind or revoke its prior advice. In such event the respondent will be given notice of the Commission's intent to revoke or rescind
and will be given an opportunity to submit its views to the Commission. The Commission will not proceed against a respondent for
violation of an order with respect to any action which was taken in good faith reliance upon the Commission's advice under this
section, where all relevant facts were fully, completely, and accurately presented to the Commission and where such action was
promptly discontinued upon notification of rescission or revocation of the Commission's advice.
(f)(1) All applications for approval of proposed divestitures, acquisitions, or similar transactions subject to Commission review under
outstanding orders shall fully describe the terms of the transaction and shall set forth why the transaction merits Commission
approval. Such applications will be placed on the public record, together with any additional applicant submissions that the
Commission directs be placed on the public record. The Director of the Bureau of Competition is delegated the authority to direct
such placement.
(2) The Commission will receive public comment on a prior approval application for 30 days. During the comment period, any
person may file formal written objections or comments with the Secretary of the Commission, and such objections or comments
shall be placed on the public record. In appropriate cases, the Commission may shorten, eliminate, extend, or reopen a comment
period.
(3) Responses to applications under this section, together with a statement of supporting reasons, will be published when made,
together wit
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