§ 46. Additional powers of Commission

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1914

   Pub. L. 63–311 § 6 · 38 Stat. 717

   Enacted · 15 U.S.C. § 46

   Sept. 26, 1914, ch. 311, § 6, 38 Stat. 721

   Source evidence

   Code source credit
   Sept. 26, 1914, ch. 311, § 6, 38 Stat. 721

   Enacted provision · exact public law section
   Sec. 6. That the commission shall also have power— Additional powers. (a) To gather and compile information concerning, and to investigate Investigating business operations, etc., of corporations. from time to time the organization, business, conduct, practices, and management of any corporation engaged in commerce, excepting banks and common carriers subject to the Act to regulate commerce, and its relation to other corporations and to individuals, associations, and partnerships. (b) To require, by general or special orders, corporations engaged Requiring detailed reports, etc., from corporations. in commerce, excepting banks, and common carriers subject to the Act to regulate commerce, or any class of them, or any of them, repectively, to file with the commission in such form as the commission may prescribe annual or special, or both annual and special, reports or answers in writing to specific questions, furnishing to the commission such information as it may require as to the organization, business, conduct, practices, management, and relation to other corporations, partnerships, and individuals of the respective corporations filing such reports or answers in writing. Such reports and answers shall be made under oath, or otherwise, as the commission may prescribe, and shall be filed with the commission within such reasonable period as the commission may prescribe, unless additional time be granted in any case by the commission. (c) Whenever a final decree has been entered against any defendant Investigating compliance with antitrust decrees. corporation in any suit brought by the United States to prevent and restrain any violation of the antitrust Acts, to make investigation, upon its own initiative, of the manner in which the decree has been or is being carried out, and upon the application of the Attorney General it shall be its duty to make such investigation. It shall Transmittal of findings, etc. transmit to the Attorney General a report embodying its findings and recommendations as a result of any such investigation, and the report shall be made public in the discretion of the commission. (d) Upon the direction of the President or either House of Congress Investigations for President or Congress. to investigate and report the facts relating to any alleged violations of the antitrust Acts by any corporation. (e) Upon the application of the Attorney General to investigate and Recommend business adjustments to comply with law. make recommendations for the readjustment of the business of any corporation alleged to be violating the antitrust Acts in order that the corporation may thereafter maintain its organization, management, and conduct of business in accordance with law. (f) To make public from time to time such portions of the information To make public information obtained. obtained by it hereunder, except trade secrets and names of customers, as it shall deem expedient in the public interest; and to make annual and special reports to the Congress and to submit therewith Report to Congress. Publishing reports, etc. recommendations for additional legislation; and to provide for the publication of its reports and decisions in such form and manner as may be best adapted for public information and use. (g) From time to time to classify corporations and to make rules and regulations for the purpose of carrying out the provisions of this Act. (h) To investigate, from time to time, trade conditions in and with foreign countries where associations, combinations, or practices of manufacturers, merchants, or traders, or other conditions, may affect the foreign trade of the United States, and to report to Congress thereon, with such recommendations as it deems advisable.

2. 1973

   Pub. L. 93–153 title IV § 408(e) · 87 Stat. 576

   Inserted · 15 U.S.C. § 46

   Pub. L. 93–153 inserted proviso following subsec. (h) that the Commission’s investigatory powers to gather and compile information, investigate, and require reports or answers is not curtailed as regards banks and common carriers when the investigation in question is an investigation of a corporation, group of corporations, or industry not engaged or engaged only incidentally in banking or in business as a common carrier subject to the Act to regulate commerce notwithstanding provisions excepting banks and common carriers subject to the Act from the exercise of the Commission’s power to investigate and require reports from corporations

   Source evidence

   Code amendment note
   Pub. L. 93–153 inserted proviso following subsec. (h) that the Commission’s investigatory powers to gather and compile information, investigate, and require reports or answers is not curtailed as regards banks and common carriers when the investigation in question is an investigation of a corporation, group of corporations, or industry not engaged or engaged only incidentally in banking or in business as a common carrier subject to the Act to regulate commerce notwithstanding provisions excepting banks and common carriers subject to the Act from the exercise of the Commission’s power to investigate and require reports from corporations.

   Enacted provision · exact public law section
   (e) Section 6 of the Federal Trade Commission Act (15 U.S.C. 46), is amended by adding at the end thereof the following proviso: Investigative powers. “Provided, That the exception of ‘banks and common carriers subject to the Act to regulate commerce’ from the Commission’s powers defined in clauses (a) and (b) of this section, shall not be construed to limit the Commission’s authority to gather and compile information, to investigate, or to require reports or answers from, any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations, or industry which is not engaged or is engaged only incidentally in banking or in business as a common carrier subject to the Act to regulate commerce.”

3. 1975

   Magnuson-Moss Warranty—Federal Trade Commission Improvement Act

   Pub. L. 93–637 § 203(a)(3) · 88 Stat. 2184

   Substituted · 15 U.S.C. § 46

   Pub. L. 93–637, § 203(a)(3), in proviso following subsec. (h), substituted “any person, partnership, or corporation to the extent that such action is necessary to the investigation of any person, partnership, or corporation, group of persons, partnerships, or corporations,” for “any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations,”

   Source evidence

   Code amendment note
   Pub. L. 93–637, § 203(a)(3), in proviso following subsec. (h), substituted “any person, partnership, or corporation to the extent that such action is necessary to the investigation of any person, partnership, or corporation, group of persons, partnerships, or corporations,” for “any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations,”.

   Enacted provision · exact public law section
   (3) The proviso at the end of section 6 of such Act is amended by striking out “any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations,” and inserting in lieu thereof “any person, partnership, or corporation to the extent that such action is necessary to the investigation of any person, partnership, or corporation, group of persons, partnerships, or corporations,”.

4. 1975

   Magnuson-Moss Warranty—Federal Trade Commission Improvement Act

   Pub. L. 93–637 title II · 88 Stat. 2184

   1. Substituted · 15 U.S.C. § 46(a)

      Pub. L. 93–637, §§ 201(b), 203(a)(1), substituted “in or whose business affects commerce” for “in commerce”

   2. Substituted · 15 U.S.C. § 46(a)

      Pub. L. 93–637, §§ 201(b), 203(a)(1), substituted “person, partnership, or corporation” for “corporation”

   3. Substituted · 15 U.S.C. § 46(a)

      Pub. L. 93–637, §§ 201(b), 203(a)(1), substituted “persons, partnerships, and corporations” for “corporations and to individuals, associations, and partnerships”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 93–637, §§ 201(b), 203(a)(1), substituted “in or whose business affects commerce” for “in commerce”, “person, partnership, or corporation” for “corporation”, and “persons, partnerships, and corporations” for “corporations and to individuals, associations, and partnerships”.

   Enacted provision · exact public law
   TITLE II— FEDERAL TRADE COMMISSION IMPROVEMENTS Sec. 201. jurisdiction of commission (a) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is amended by striking out “in commerce” wherever it appears and inserting in lieu thereof “in or affecting commerce”. (b) Subsections (a) and (b) of section 6 of the Federal Trade Commission Act (15 U.S.C. 46(a), (b)) are each amended by striking out “in commerce” and inserting in lieu thereof “in or whose business affects commerce”. (c) Section 12 of the Federal Trade Commission Act (15 U.S.C. 52) is amended by striking out “in commerce” wherever it appears and inserting in lieu thereof in subsection (a) “in or having an effect upon commerce,” and in lieu thereof in subsection (b) “in or affecting commerce”. Sec. 202. rulemaking (a) The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by redesignating section 18 as section 21, and 15 USC 58. inserting after section 17 the following new section: “Sec. 18. (a) (1) The Commission may prescribe— 15 USC 57a. “(A) interpretive rules and general statements of policy with respect to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 5(a)(1) of this Act), and “(B) rules which define with specificity acts or practices which are unfair or deceptive acts or practices in or affecting commerce (within the meaning of such section 5(a)(1)). Rules under this subparagraph may include requirements prescribed for the purpose of preventing such acts or practices. “(2) The Commission shall have no authority under this Act, other than its authority under this section, to prescribe any rule with respect to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 5(a)(1)). The preceding sentence shall not affect any authority of the Commission to prescribe rules (including interpretive rules), and general statements of policy, with respect to unfair methods of competition in or affecting commerce. “(b) When prescribing a rule under subsection (a)(1)(B) of this section, the Commission shall proceed in accordance with section 553 of title 5, United States Code (without regard to any reference in such section to sections 556 and 557 of such title), and shall also (1) publish a notice of proposed rule stating with particularity the reason for the proposed rule; (2) allow interested persons to submit written data, views, and arguments, and make all such submissions publicly available; (3) provide an opportunity for an informal hearing in accordance with subsection (c); and (4) promul-gate, if appropriate, a final rule based on the matter in the rulemaking record (as defined in subsection (e)(1)(B)), together with a statement of basis and purpose. “(c) The Commission shall conduct any informal hearings required Hearing procedure. by subsection (b)(3) of this section in accordance with the following procedure: “(1) Subject to paragraph (2) of this subsection, an interested person is entitled— “(A) to present his position orally or by documentary submissions (or both), and “(B) if the Commission determines that there are disputed issues of material fact it is necessary to resolve, to present such rebuttal submissions and to conduct (or have conducted under paragraph (2)(B)) such cross-examination of persons as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to such issues. “(2) The Commission may prescribe such rules and make such Rules. rulings concerning proceedings in such hearings as may tend to avoid unnecessary costs or delay. Such rules or rulings may include (A) imposition of reasonable time limits on each interested person’s oral presentations, and (B) requirements that any cross-examination to which a person may be entitled under paragraph (1) be conducted by the Commission on behalf of that person in such manner as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to disputed issues of material fact. “(3) (A) Except as provided in subparagraph (B), if a group of persons each of whom under paragraphs (1) and (2) would be entitled to conduct (or have conducted) cross-examination and who are determined by the Commission to have the same or similar interests in the proceeding cannot agree upon a single representative of such interests for purposes of cross-examination, the Commission may make rules and rulings (i) limiting the representation of such interest, for such purposes, and (ii) governing the manner in which such cross-examination shall be limited. “(B) When any person who is a member of a group with respect to which the Commission has made a determination under subparagraph (A) is unable to agree upon group representation with the other members of the group, then such person shall not be denied under the authority of subparagraph (A) the opportunity to conduct (or have conducted) cross-examination as to issues affecting his particular interests if (i) he satisfies the Commission that he has made a reasonable and good faith effort to reach agreement upon group representation with the other members of the group and (ii) the Commission determines that there are substantial and relevant issues which are not adequately presented by the group representative. “(4) A verbatim transcript shall be taken of any oral presentation, and cross-examination, in an informal hearing to which this subsection applies. Such transcript shall be available to the public. “(d) (1) The Commission’s statement of basis and purpose to accompany Statement of basis and purpose, requirements. a rule promulgated under subsection (a)(1)(B) shall include (A) a statement as to the prevalence of the acts or practices treated by the rule; (B) a statement as to the manner and context in which such acts or practices are unfair or deceptive; and (C) a statement as to the economic effect of the rule, taking into account the effect on small business and consumers. “(2) (A) The term ‘Commission’ as used in this subsection and “Commission.” subsections (b) and (c) includes any person authorized to act in behalf of the Commission in any part of the rulemaking proceeding. “(B) A substantive amendment to, or repeal of, a rule promulgated under subsection (a)(1)(B) shall be prescribed, and subject to judicial review, in the same manner as a rule prescribed under such subsection. An exemption under subsection (g) shall not be treated as an amendment or repeal of a rule. “(3) When any rule under subsection (a)(1)(B) takes effect a subsequent violation thereof shall constitute an unfair or deceptive act or practice in violation of section 5(a)(1) of this Act, unless the Commission otherwise expressly provides in such rule. “(e) (1) (A) Not later than 60 days after a rule is promulgated Judicial review. under subsection (a)(1)(B) by the Commission, any interested person (including a consumer or consumer organization) may file a petition, in the United States Court of Appeals for the District of Columbia circuit or for the circuit in which such person resides or has his principal place of business, for judicial review of such rule. Copies of the petition shall be forthwith transmitted by the clerk of the court to the Commission or other officer designated by it for that purpose. The provisions of section 2112 of title 28, United States Code, shall apply to the filing of the rulemaking record of proceedings on which the Commission based its rule and to the transfer of proceedings in the courts of appeals. “(B) For purposes of this section, the term ‘rulemaking record’ “Rulemaking record.” means the rule, its statement of basis and purpose, the transcript required by subsection (c)(4), any written submissions, and any other information which the Commission considers relevant to such rule. “(2) If the petitioner or the Commission applies to the court for leave to make additional oral submissions or written presentations and shows to the satisfaction of the court that such submissions and presentations would be material and that there were reasonable grounds for the submissions and failure to make such submissions and presentations in the proceeding before the Commission, the court may order the Commission to provide additional opportunity to make such submissions and presentations. The Commission may modify or set aside its rule or make a new rule by reason of the additional submissions and presentations and shall file such modified or new rule, and the rule’s statement of basis of purpose, with the return of such submissions and presentations. The court shall thereafter review such new or modified rule. “(3) Upon the filing of the petition under paragraph (1) of this subsection, the court shall have jurisdiction to review the rule in accordance with chapter 7 of title 5, United States Code, and to grant 5 USC 701. appropriate relief, including interim relief, as provided in such chapter. The court shall hold unlawful and set aside the rule on any ground specified in subparagraphs (A), (B), (C), or (D) of section 706(2) of title 5, United States Code (taking due account of the rule of prejudicial error), or if— “(A) the court finds that the Commission’s action is not supported by substantial evidence in the rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole, or “(B) the court finds that— “(i) a Commission determination under subsection (c) that the petitioner is not entitled to conduct cross-examination or make rebuttal submissions, or “(ii) a Commission rule or ruling under subsection (c) limiting the petitioner’s cross-examination or rebuttal submissions, has precluded disclosure of disputed material facts which was necessary for fair determination by the Commission of the rule-making proceeding taken as a whole. The term ‘evidence’, as used in this paragraph, means any matter in “Evidence.” the rulemaking record. “(4) The judgment of the court affirming or setting aside, in whole or in part, any such rule shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification, as provided in section 1254 of title 28, United States Code. “(5) (A) Remedies under the preceding paragraphs of this subsection are in addition to and not in lieu of any other remedies provided by law. “(B) The United States Courts of Appeal shall have exclusive jurisdiction of any action to obtain judicial review (other than in an enforcement proceeding) of a rule prescribed under subsection (a)(1)(B), if any district court of the United States would have had jurisdiction of such action but for this subparagraph. Any such action shall be brought in the United States Court of Appeals for the District of Columbia circuit, or for any circuit which includes a judicial district in which the action could have been brought but for this subparagraph. “(C) A determination, rule, or ruling of the Commission described in paragraph (3)(B)(i) or (ii) may be reviewed only in a proceeding under this subsection and only in accordance with paragraph (3)(B). Section 706(2)(E) of title 5, United States Code, shall not apply to any rule promulgated under subsection (a)(1)(B). The contents and adequacy of any statement required by subsection (b)(4) shall not be subject to judicial review in any respect. “(f) (1) In order to prevent unfair or deceptive acts or practices Banks. in or affecting commerce (including acts or practices which are unfair or deceptive to consumers) by banks, each agency specified in paragraph (2) of this subsection shall establish a separate division of consumer affairs which shall receive and take appropriate action upon complaints with respect to such acts or practices by banks subject to its jurisdiction. The Board of Governors of the Federal Reserve Regulations. System shall prescribe regulations to carry out the purposes of this section, including regulations defining with specificity such unfair or deceptive acts or practices, and containing requirements prescribed for the purpose of preventing such acts or practices. Whenever the Commission prescribes a rule under subsection (a)(1)(B) of this section, then within 60 days after such rule takes effect such Board shall promulgate substantially similar regulations prohibiting acts or practices of banks which are substantially similar to those prohibited by rules of the Commission and which impose substantially similar requirements, unless such Board finds that (A) such acts or practices of banks are not unfair or deceptive, or (B) that implementation of similar regulations with respect to banks would seriously conflict with essential monetary and payments systems policies of the Board, and publishes any such finding, and the reasons therefor, in the Federal Register. “(2) Compliance with regulations prescribed under this subsection shall be enforced under section 8 of the Federal Deposit Insurance Act, in the case of— 12 USC 1818. “(A) national banks and banks operating under the code of law for the District of Columbia, by the division of consumer affairs established by the Comptroller of the Currency; “(B) member banks of the Federal Reserve System (other than banks referred to in subparagraph (A)) by the division of consumer affairs established by the Board of Governors of the Federal Reserve System; and “(C) banks insured by the Federal Deposit Insurance Corporation (other than banks referred to in subparagraph (A) or (B)), by the division of consumer affairs established by the Board of Directors of the Federal Deposit Insurance Corporation. “(3) For the purpose of the exercise by any agency referred to in paragraph (2) of its powers under any Act referred to in that paragraph, a violation of any regulation prescribed under this subsection shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in paragraph (2), each of the agencies referred to in that paragraph may exercise, for the purpose of enforcing compliance with any regulation prescribed under this subsection, any other authority conferred on it by law. “(4) The authority of the Board of Governors of the Federal Reserve System to issue regulations under this subsection does not impair the authority of any other agency designated in this subsection to make rules respecting its own procedures in enforcing compliance with regulations prescribed under this subsection. “(5) Each agency exercising authority under this subsection shall Report to Congress. transmit to the Congress not later than March 15 of each year a detailed report on its activities under this paragraph during the preceding calendar year. “(g) (1) Any person to whom a rule under subsection (a)(1)(B) Exemptions. of this section applies may petition the Commission for an exemption from such rule. “(2) If, on its own motion or on the basis of a petition under paragraph (1), the Commission finds that the application of a rule prescribed under subsection (a)(1)(B) to any person or class or persons is not necessary to prevent the unfair or deceptive act or practice to which the rule relates, the Commission may exempt such person or class from all or part of such rule. Section 553 of title 5, United States Code, shall apply to action under this paragraph. “(3) Neither the pendency of a proceeding under this subsection respecting an exemption from a rule, nor the pendency of judicial proceedings to review the Commission’s action or failure to act under this subsection, shall stay the applicability of such rule under subsection (a)(1)(B). “(h) (1) The Commission may, pursuant to rules prescribed by it, Compensation. provide compensation for reasonable attorneys fees, expert witness fees, and other costs of participating in a rulemaking proceeding under this section to any person (A) who has, or represents, an interest (i) which would not otherwise be adequately represented in such proceeding, and (ii) representation of which is necessary for a fair determination of the rulemaking proceeding taken as a whole, and (B) who is unable effectively to participate in such proceeding because such person cannot afford to pay costs of making oral presentations, conducting cross-examination, and making rebuttal submissions in such proceeding. “(2) The aggregate amount of compensation paid under this subsection in any fiscal year to all persons who, in rulemaking proceedings in which they receive compensation, are persons who either (A) would be regulated by the proposed rule, or (B) represent persons who would be so regulated, may not exceed 25 percent of the aggregate amount paid as compensation under this subsection to all persons in such fiscal year. “(3) The aggregate amount of compensation paid to all persons in any fiscal year under this subsection may not exceed $1,000,000.” (b) Section 6(g) of the Federal Trade Commission Act (15 U.S.C. 46(g)) is amended by inserting “(except as provided in section 18 (a)(2) of this Act)” before “to make rules and regulations”. (c) (1) The amendments made by subsections (a) and (b) of this 15 USC 57a note. section shall not affect the validity of any rule which was promulgated under section 6(g) of the Federal Trade Commission Act prior to the date of enactment of this section. Any proposed rule under section 6(g) of such Act with respect to which presentation of data, views, and arguments was substantially completed before such date may be promulgated in the same manner and with the same validity as such rule could have been promulgated had this section not been enacted. (2) If a rule described in paragraph (1) of this subsection is valid and if section 18 of the Federal Trade Commission Act would have Ante, p. 2193. applied to such rule had such rule been promulgated after the date of enactment of this Act, any substantive change in the rule after it has been promulgated shall be made in accordance with such section 18. (d) The Federal Trade Commission and the Administrative Conference 15 USC 57a note. Study and evaluation. Report to Congress. of the United States shall each conduct a study and evaluation of the rulemaking procedures under section 18 of the Federal Trade Commission Act and each shall submit a report of its study (including any legislative recommendations) to the Congress not later than 18 months after the date of enactment of this Act. Sec. 203. investigative authority (a) (1) Section 6(a) of the Federal Trade Commission Act (15 U.S.C. 46(a)) is amended by striking out “corporation” and inserting “person, partnership, or corporation”; and by striking out “corporations and to individuals, associations, and partnerships”, and inserting in lieu thereof “persons, partnerships, and corporations”. (2) Section 6(b) of such Act is amended by striking out “corporations” where it first appears and inserting in lieu thereof “persons, partnerships, and corporations”; and by striking out “respective corporations” and inserting in lieu thereof “respective persons, partnerships, and corporations”. (3) The proviso at the end of section 6 of such Act is amended by striking out “any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations,” and inserting in lieu thereof “any person, partnership, or corporation to the extent that such action is necessary to the investigation of any person, partnership, or corporation, group of persons, partnerships, or corporations,”. (b) (1) The first paragraph of section 9 of such Act (15 U.S.C. 49) is amended by striking out “corporation” where it first appears and inserting in lieu thereof “person, partnership, or corporation”. (2) The third paragraph of section 9 of such Act is amended by striking out “corporation or other person” both places where it appears and inserting in each such place “person, partnership, or corporation”. (3) The fourth paragraph of section 9 of such Act is amended by striking out “person or corporation” and inserting in lieu thereof “person, partnership, or corporation”. (c) (1) The second paragraph of section 10 (15 U.S.C. 50) of such Act is amended by striking out “corporation” each place where it appears and inserting in lieu thereof in each such place “person, partnership, or corporation”. (2) The third paragraph of section 10 of such Act is amended by striking out “corporation” where it first appears and inserting in lieu thereof “persons, partnership, or corporation”; and by striking out “in the district where the corporation has its principal office or in any district in which it shall do business” and inserting in lieu thereof “in the case of a corporation or partnership in the district where the corporation or partnership has its principal office or in any district in which it shall do business, and in the case of any person in the district where such person resides or has his principal place of business”. Sec. 204. representation (a) Section 16 of the Federal Trade Commission Act is 15 USC 56. amended to read as follows: “Sec. 16. (a) (1) Except as otherwise provided in paragraph (2) or (3), if— “(A) before commencing, defending, or intervening in, any civil action involving this Act (including an action to collect a civil penalty) which the Commission, or the Attorney General on behalf of the Commission, is authorized to commence, defend, or intervene in, the Commission gives written notification and undertakes to consult with the Attorney General with respect to such action; and “(B) the Attorney General fails within 45 days after receipt of such notification to commence, defend, or intervene in, such action; the Commission may commence, defend, or intervene in, and supervise the litigation of, such action and any appeal of such action in its own name by any of its attorneys designated by it for such purpose. “(2) Except as otherwise provided in paragraph (3), in any civil action— “(A) under section 13 of this Act (relating to injunctive 15 USC 53. relief); “(B) under section 19 of this Act (relating to consumer Post, p. 2201. redress); “(C) to obtain judicial review of a rule prescribed by the Commission, or a cease and desist order issued under section 5 of this Act; or 15 USC 45. “(D) under the second paragraph of section 9 of this Act 15 USC 49. (relating to enforcement of a subpena) and under the fourth paragraph of such section (relating to compliance with section 6 of this Act); the Commission shall have exclusive authority to commence or defend, and supervise the litigation of, such action and any appeal of such action in its own name by any of its attorneys designated by it for such purpose, unless the Commission authorizes the Attorney General to do so. The Commission shall inform the Attorney General of the exercise of such authority and such exercise shall not preclude the Attorney General from intervening on behalf of the United States in such action and any appeal of such action as may be otherwise provided by law. “(3) (A) If the Commission makes a written request to the Attorney General, within the 10-day period which begins on the date of the entry of the judgment in any civil action in which the Commission represented itself pursuant to paragraph (1) or (2), to represent itself through any of its attorneys designated by it for such purpose before the Supreme Court in such action, it may do so, if— “(i) the Attorney General concurs with such request; or “(ii) the Attorney General, within the 60-day period which begins on the date of the entry of such judgment— “(a) refuses to appeal or file a petition for writ of certiorari with respect to such civil action, in which case he shall give written notification to the Commission of the reasons for such refusal within such 60-day period; or “(b) the Attorney General fails to take any action with respect to the Commission’s request. “(B) In any case where the Attorney General represents the Commission before the Supreme Court in any civil action in which the Commission represented itself pursuant to paragraph (1) or (2), the Attorney General may not agree to any settlement, compromise, or dismissal of such action, or confess error in the Supreme Court with respect to such action, unless the Commission concurs. “(C) For purposes of this paragraph (with respect to representation “Attorney General.” before the Supreme Court), the term ‘Attorney General’ includes the Solicitor General. “(4) If, prior to the expiration of the 45-day period specified in paragraph (1) of this section or a 60-day period specified in paragraph (3), any right of the Commission to commence, defend, or intervene in, any such action or appeal may be extinguished due to any procedural requirement of any court with respect to the time in which any pleadings, notice of appeal, or other acts pertaining to such action or appeal may be taken, the Attorney General shall have one-half of the time required to comply with any such procedural requirement of the court (including any extension of such time granted by the court) for the purpose of commencing, defending, or intervening in the civil action pursuant to paragraph (1) or for the purpose of refusing to appeal or file a petition for writ of certiorari and the written notification or failing to take any action pursuant to paragraph 3(A)(ii). “(5) The provisions of this subsection shall apply notwithstanding chapter 31 of title 28, United States Code, or any other provision of 28 USC 501. law. “(b) Whenever the Commission has reason to believe that any person, partnership, or corporation is liable for a criminal penalty under this Act, the Commission shall certify the facts to the Attorney General, whose duty it shall be to cause appropriate criminal proceedings to be brought.” (b) Section 5(m) of such Act is repealed. 15 USC 45. (c) The amendment and repeal made by this section shall not apply 15 USC 56 note. to any civil action commenced before the date of enactment of this Act. Sec. 205. civil penalties for knowing violations (a) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45(a)) is amended by inserting after subsection (1) the following new subsection: “(m) (1) (A) The Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person, partnership, or corporation which violates any rule under this Act respecting unfair or deceptive acts or practices (other than an interpretive rule or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of subsection (a)(1)) with actual knowledge or knowledge fairly implied on the basis of objective circumstances that such act is unfair or deceptive and is prohibited by such rule. In such action, such person, partnership, or corporation shall be liable for a civil penalty of not more than $10,000 for each violation. “(B) If the Commission determines in a proceeding under subsection (b) that any act or practice is unfair or deceptive, and issues a final cease and desist order with respect to such act or practice, then the Commission may commence a civil action to obtain a civil penalty in a district court of the United States against any person, partnership, or corporation which engages in such act or practice— “(1) after such cease and desist order becomes final (whether or not such person, partnership, or corporation was subject to such cease and desist order), and “(2) with actual knowledge that such act or practice is unfair or deceptive and is unlawful under subsection (a)(1) of this section. In such action, such person, partnership, or corporation shall be liable for a civil penalty of not more than $10,000 for each violation. “(C) In the case of a violation through continuing failure to comply with a rule or with section 5(a)(1), each day of continuance of such failure shall be treated as a separate violation, for purposes of subparagraphs (A) and (B). In determining the amount of such a civil penalty, the court shall take into account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require. “(2) If the cease and desist order establishing that the act or practice is unfair or deceptive was not issued against the defendant in a civil penalty action under paragraph (1)(B) the issues of fact in such action against such defendant shall be tried de novo. “(3) The Commission may compromise or settle any action for a civil penalty if such compromise or settlement is accompanied by a public statement of its reasons and is approved by the court.” (b) The amendment made by subsection (a) of this section shall 15 USC 45 note. not apply to any violation, act, or practice to the extent that such violation, act, or practice occurred before the date of enactment of this Act. Sec. 206. consumer redress (a) The Federal Trade Commission Act (15 U.S.C. 45(a)) is amended by inserting after section 18 the following new section: “Sec. 19. (a) (1) If any person, partnership, or corporation violates 15 USC 57b. any rule under this Act respecting unfair or deceptive acts or practices (other than an interpretive rule, or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of section 5(a)), then the Commission may commence a civil action against such person, partnership, or corporation for relief under subsection (b) in a United States district court or in any court of competent jurisdiction of a State. “(2) If any person, partnership, or corporation engages in any unfair or deceptive act or practice (within the meaning of section 5(a)(1)) with respect to which the Commission has issued a final cease and desist order which is applicable to such person, partnership, or corporation, then the Commission may commence a civil action against such person, partnership, or corporation in a United States district court or in any court of competent jurisdiction of a State. If the Commission satisfies the court that the act or practice to which the cease and desist order relates is one which a reasonable man would have known under the circumstances was dishonest or fraudulent, the court may grant relief under subsection (b). “(b) The court in an action under subsection (a) shall have jurisdiction to grant such relief as the court finds necessary to redress injury to consumers or other persons, partnerships, and corporations resulting from the rule violation or the unfair or deceptive act or practice, as the case may be. Such relief may include, but shall not be limited to, rescission or reformation of contracts, the refund of money or return of property, the payment of damages, and public notification respecting the rule violation or the unfair or deceptive act or practice, as the case may be; except that nothing in this subsection is intended to authorize the imposition of any exemplary or punitive damages. “(c) (1) If (A) a cease and desist order issued under section 5(b) has become final under section 5(g) with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice, and (B) an action under this section is brought with respect to such person’s partnership’s, or corporation’s rule violation or act or practice, then the findings of the Commission as to the material facts in the proceeding under section 5(b) with respect to such person’s, partnership’s, or corporation’s rule violation or act or practice, shall be conclusive unless (i) the terms of such cease and desist order expressly provide that the Commission’s findings shall not be conclusive, or (ii) the order became final by reason of section 5(g)(1), in which case such finding shall be conclusive if supported by evidence. “(2) The court shall cause notice of an action under this section to Notice. be given in a manner which is reasonably calculated, under all of the circumstances, to apprise the persons, partnerships, and corporations allegedly injured by the defendant’s rule violation or act or practice of the pendency of such action. Such notice may, in the discretion of the court, be given by publication. “(d) No action may be brought by the Commission under this section Statute of limitations. more than 3 years after the rule violation to which an action under subsection (a)(1) relates, or the unfair or deceptive act or practice to which an action under subsection (a)(2) relates; except that if a cease and desist order with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice has become final and such order was issued in a proceeding under section 5(b) which was commenced not later than 3 years after the rule violation or act or practice occurred, a civil action may be commenced under this section against such person, partnership, or corporation at any time before the expiration of one year after such order becomes final. “(e) Remedies provided in this section are in addition to, and not in lieu of, any other remedy or right of action provided by State or Federal law. Nothing in this section shall be construed to affect any authority of the Commission under any other provision of law.” (b) The amendment made by subsection (a) of this section shall 15 USC 57b note. not apply to— (1) any violation of a rule to the extent that such violation occurred before the date of enactment of this Act, or (2) any act or practice with respect to which the Commission issues a cease-and-desist order, to the extent that such act or practice occurred before the date of enactment of this Act, unless such order was issued after such date and the person, partnership or corporation against whom such an order was issued had been notified in the complaint, or in the notice or order attached thereto, that consumer redress may be sought. Sec. 207. authorization of appropriations The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by inserting after section 19 the following new section: Ante, p. 2201. “Sec. 20. There are authorized to be appropriated to carry out the 15 USC 57c. functions, powers, and duties of the Federal Trade Commission not to exceed $42,000,000 for the fiscal year ending June 30, 1975; not to exceed $46,000,000 for the fiscal year ending June 30, 1976; and not to exceed $50,000,000 for the fiscal year ending in 1977. For fiscal years ending after 1977, there may be appropriated to carry out such functions, powers, and duties, only such sums as the Congress may hereafter authorize by law.”

5. 1975

   Magnuson-Moss Warranty—Federal Trade Commission Improvement Act

   Pub. L. 93–637 title II · 88 Stat. 2184

   1. Substituted · 15 U.S.C. § 46(b)

      Pub. L. 93–637, §§ 201(b), 203(a)(2), substituted “in or whose business affects commerce” for “in commerce”

   2. Substituted · 15 U.S.C. § 46(b)

      Pub. L. 93–637, §§ 201(b), 203(a)(2), substituted “special orders, persons, partnerships, and corporations, engaged in or whose business affects commerce, excepting” for “special orders, corporations engaged in or whose business affects commerce, excepting”

   3. Substituted · 15 U.S.C. § 46(b)

      Pub. L. 93–637, §§ 201(b), 203(a)(2), substituted “respective persons, partnerships, and corporations” for “respective corporations”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 93–637, §§ 201(b), 203(a)(2), substituted “in or whose business affects commerce” for “in commerce”, “special orders, persons, partnerships, and corporations, engaged in or whose business affects commerce, excepting” for “special orders, corporations engaged in or whose business affects commerce, excepting”, and “respective persons, partnerships, and corporations” for “respective corporations”.

   Enacted provision · exact public law
   TITLE II— FEDERAL TRADE COMMISSION IMPROVEMENTS Sec. 201. jurisdiction of commission (a) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is amended by striking out “in commerce” wherever it appears and inserting in lieu thereof “in or affecting commerce”. (b) Subsections (a) and (b) of section 6 of the Federal Trade Commission Act (15 U.S.C. 46(a), (b)) are each amended by striking out “in commerce” and inserting in lieu thereof “in or whose business affects commerce”. (c) Section 12 of the Federal Trade Commission Act (15 U.S.C. 52) is amended by striking out “in commerce” wherever it appears and inserting in lieu thereof in subsection (a) “in or having an effect upon commerce,” and in lieu thereof in subsection (b) “in or affecting commerce”. Sec. 202. rulemaking (a) The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by redesignating section 18 as section 21, and 15 USC 58. inserting after section 17 the following new section: “Sec. 18. (a) (1) The Commission may prescribe— 15 USC 57a. “(A) interpretive rules and general statements of policy with respect to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 5(a)(1) of this Act), and “(B) rules which define with specificity acts or practices which are unfair or deceptive acts or practices in or affecting commerce (within the meaning of such section 5(a)(1)). Rules under this subparagraph may include requirements prescribed for the purpose of preventing such acts or practices. “(2) The Commission shall have no authority under this Act, other than its authority under this section, to prescribe any rule with respect to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 5(a)(1)). The preceding sentence shall not affect any authority of the Commission to prescribe rules (including interpretive rules), and general statements of policy, with respect to unfair methods of competition in or affecting commerce. “(b) When prescribing a rule under subsection (a)(1)(B) of this section, the Commission shall proceed in accordance with section 553 of title 5, United States Code (without regard to any reference in such section to sections 556 and 557 of such title), and shall also (1) publish a notice of proposed rule stating with particularity the reason for the proposed rule; (2) allow interested persons to submit written data, views, and arguments, and make all such submissions publicly available; (3) provide an opportunity for an informal hearing in accordance with subsection (c); and (4) promul-gate, if appropriate, a final rule based on the matter in the rulemaking record (as defined in subsection (e)(1)(B)), together with a statement of basis and purpose. “(c) The Commission shall conduct any informal hearings required Hearing procedure. by subsection (b)(3) of this section in accordance with the following procedure: “(1) Subject to paragraph (2) of this subsection, an interested person is entitled— “(A) to present his position orally or by documentary submissions (or both), and “(B) if the Commission determines that there are disputed issues of material fact it is necessary to resolve, to present such rebuttal submissions and to conduct (or have conducted under paragraph (2)(B)) such cross-examination of persons as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to such issues. “(2) The Commission may prescribe such rules and make such Rules. rulings concerning proceedings in such hearings as may tend to avoid unnecessary costs or delay. Such rules or rulings may include (A) imposition of reasonable time limits on each interested person’s oral presentations, and (B) requirements that any cross-examination to which a person may be entitled under paragraph (1) be conducted by the Commission on behalf of that person in such manner as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to disputed issues of material fact. “(3) (A) Except as provided in subparagraph (B), if a group of persons each of whom under paragraphs (1) and (2) would be entitled to conduct (or have conducted) cross-examination and who are determined by the Commission to have the same or similar interests in the proceeding cannot agree upon a single representative of such interests for purposes of cross-examination, the Commission may make rules and rulings (i) limiting the representation of such interest, for such purposes, and (ii) governing the manner in which such cross-examination shall be limited. “(B) When any person who is a member of a group with respect to which the Commission has made a determination under subparagraph (A) is unable to agree upon group representation with the other members of the group, then such person shall not be denied under the authority of subparagraph (A) the opportunity to conduct (or have conducted) cross-examination as to issues affecting his particular interests if (i) he satisfies the Commission that he has made a reasonable and good faith effort to reach agreement upon group representation with the other members of the group and (ii) the Commission determines that there are substantial and relevant issues which are not adequately presented by the group representative. “(4) A verbatim transcript shall be taken of any oral presentation, and cross-examination, in an informal hearing to which this subsection applies. Such transcript shall be available to the public. “(d) (1) The Commission’s statement of basis and purpose to accompany Statement of basis and purpose, requirements. a rule promulgated under subsection (a)(1)(B) shall include (A) a statement as to the prevalence of the acts or practices treated by the rule; (B) a statement as to the manner and context in which such acts or practices are unfair or deceptive; and (C) a statement as to the economic effect of the rule, taking into account the effect on small business and consumers. “(2) (A) The term ‘Commission’ as used in this subsection and “Commission.” subsections (b) and (c) includes any person authorized to act in behalf of the Commission in any part of the rulemaking proceeding. “(B) A substantive amendment to, or repeal of, a rule promulgated under subsection (a)(1)(B) shall be prescribed, and subject to judicial review, in the same manner as a rule prescribed under such subsection. An exemption under subsection (g) shall not be treated as an amendment or repeal of a rule. “(3) When any rule under subsection (a)(1)(B) takes effect a subsequent violation thereof shall constitute an unfair or deceptive act or practice in violation of section 5(a)(1) of this Act, unless the Commission otherwise expressly provides in such rule. “(e) (1) (A) Not later than 60 days after a rule is promulgated Judicial review. under subsection (a)(1)(B) by the Commission, any interested person (including a consumer or consumer organization) may file a petition, in the United States Court of Appeals for the District of Columbia circuit or for the circuit in which such person resides or has his principal place of business, for judicial review of such rule. Copies of the petition shall be forthwith transmitted by the clerk of the court to the Commission or other officer designated by it for that purpose. The provisions of section 2112 of title 28, United States Code, shall apply to the filing of the rulemaking record of proceedings on which the Commission based its rule and to the transfer of proceedings in the courts of appeals. “(B) For purposes of this section, the term ‘rulemaking record’ “Rulemaking record.” means the rule, its statement of basis and purpose, the transcript required by subsection (c)(4), any written submissions, and any other information which the Commission considers relevant to such rule. “(2) If the petitioner or the Commission applies to the court for leave to make additional oral submissions or written presentations and shows to the satisfaction of the court that such submissions and presentations would be material and that there were reasonable grounds for the submissions and failure to make such submissions and presentations in the proceeding before the Commission, the court may order the Commission to provide additional opportunity to make such submissions and presentations. The Commission may modify or set aside its rule or make a new rule by reason of the additional submissions and presentations and shall file such modified or new rule, and the rule’s statement of basis of purpose, with the return of such submissions and presentations. The court shall thereafter review such new or modified rule. “(3) Upon the filing of the petition under paragraph (1) of this subsection, the court shall have jurisdiction to review the rule in accordance with chapter 7 of title 5, United States Code, and to grant 5 USC 701. appropriate relief, including interim relief, as provided in such chapter. The court shall hold unlawful and set aside the rule on any ground specified in subparagraphs (A), (B), (C), or (D) of section 706(2) of title 5, United States Code (taking due account of the rule of prejudicial error), or if— “(A) the court finds that the Commission’s action is not supported by substantial evidence in the rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole, or “(B) the court finds that— “(i) a Commission determination under subsection (c) that the petitioner is not entitled to conduct cross-examination or make rebuttal submissions, or “(ii) a Commission rule or ruling under subsection (c) limiting the petitioner’s cross-examination or rebuttal submissions, has precluded disclosure of disputed material facts which was necessary for fair determination by the Commission of the rule-making proceeding taken as a whole. The term ‘evidence’, as used in this paragraph, means any matter in “Evidence.” the rulemaking record. “(4) The judgment of the court affirming or setting aside, in whole or in part, any such rule shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification, as provided in section 1254 of title 28, United States Code. “(5) (A) Remedies under the preceding paragraphs of this subsection are in addition to and not in lieu of any other remedies provided by law. “(B) The United States Courts of Appeal shall have exclusive jurisdiction of any action to obtain judicial review (other than in an enforcement proceeding) of a rule prescribed under subsection (a)(1)(B), if any district court of the United States would have had jurisdiction of such action but for this subparagraph. Any such action shall be brought in the United States Court of Appeals for the District of Columbia circuit, or for any circuit which includes a judicial district in which the action could have been brought but for this subparagraph. “(C) A determination, rule, or ruling of the Commission described in paragraph (3)(B)(i) or (ii) may be reviewed only in a proceeding under this subsection and only in accordance with paragraph (3)(B). Section 706(2)(E) of title 5, United States Code, shall not apply to any rule promulgated under subsection (a)(1)(B). The contents and adequacy of any statement required by subsection (b)(4) shall not be subject to judicial review in any respect. “(f) (1) In order to prevent unfair or deceptive acts or practices Banks. in or affecting commerce (including acts or practices which are unfair or deceptive to consumers) by banks, each agency specified in paragraph (2) of this subsection shall establish a separate division of consumer affairs which shall receive and take appropriate action upon complaints with respect to such acts or practices by banks subject to its jurisdiction. The Board of Governors of the Federal Reserve Regulations. System shall prescribe regulations to carry out the purposes of this section, including regulations defining with specificity such unfair or deceptive acts or practices, and containing requirements prescribed for the purpose of preventing such acts or practices. Whenever the Commission prescribes a rule under subsection (a)(1)(B) of this section, then within 60 days after such rule takes effect such Board shall promulgate substantially similar regulations prohibiting acts or practices of banks which are substantially similar to those prohibited by rules of the Commission and which impose substantially similar requirements, unless such Board finds that (A) such acts or practices of banks are not unfair or deceptive, or (B) that implementation of similar regulations with respect to banks would seriously conflict with essential monetary and payments systems policies of the Board, and publishes any such finding, and the reasons therefor, in the Federal Register. “(2) Compliance with regulations prescribed under this subsection shall be enforced under section 8 of the Federal Deposit Insurance Act, in the case of— 12 USC 1818. “(A) national banks and banks operating under the code of law for the District of Columbia, by the division of consumer affairs established by the Comptroller of the Currency; “(B) member banks of the Federal Reserve System (other than banks referred to in subparagraph (A)) by the division of consumer affairs established by the Board of Governors of the Federal Reserve System; and “(C) banks insured by the Federal Deposit Insurance Corporation (other than banks referred to in subparagraph (A) or (B)), by the division of consumer affairs established by the Board of Directors of the Federal Deposit Insurance Corporation. “(3) For the purpose of the exercise by any agency referred to in paragraph (2) of its powers under any Act referred to in that paragraph, a violation of any regulation prescribed under this subsection shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in paragraph (2), each of the agencies referred to in that paragraph may exercise, for the purpose of enforcing compliance with any regulation prescribed under this subsection, any other authority conferred on it by law. “(4) The authority of the Board of Governors of the Federal Reserve System to issue regulations under this subsection does not impair the authority of any other agency designated in this subsection to make rules respecting its own procedures in enforcing compliance with regulations prescribed under this subsection. “(5) Each agency exercising authority under this subsection shall Report to Congress. transmit to the Congress not later than March 15 of each year a detailed report on its activities under this paragraph during the preceding calendar year. “(g) (1) Any person to whom a rule under subsection (a)(1)(B) Exemptions. of this section applies may petition the Commission for an exemption from such rule. “(2) If, on its own motion or on the basis of a petition under paragraph (1), the Commission finds that the application of a rule prescribed under subsection (a)(1)(B) to any person or class or persons is not necessary to prevent the unfair or deceptive act or practice to which the rule relates, the Commission may exempt such person or class from all or part of such rule. Section 553 of title 5, United States Code, shall apply to action under this paragraph. “(3) Neither the pendency of a proceeding under this subsection respecting an exemption from a rule, nor the pendency of judicial proceedings to review the Commission’s action or failure to act under this subsection, shall stay the applicability of such rule under subsection (a)(1)(B). “(h) (1) The Commission may, pursuant to rules prescribed by it, Compensation. provide compensation for reasonable attorneys fees, expert witness fees, and other costs of participating in a rulemaking proceeding under this section to any person (A) who has, or represents, an interest (i) which would not otherwise be adequately represented in such proceeding, and (ii) representation of which is necessary for a fair determination of the rulemaking proceeding taken as a whole, and (B) who is unable effectively to participate in such proceeding because such person cannot afford to pay costs of making oral presentations, conducting cross-examination, and making rebuttal submissions in such proceeding. “(2) The aggregate amount of compensation paid under this subsection in any fiscal year to all persons who, in rulemaking proceedings in which they receive compensation, are persons who either (A) would be regulated by the proposed rule, or (B) represent persons who would be so regulated, may not exceed 25 percent of the aggregate amount paid as compensation under this subsection to all persons in such fiscal year. “(3) The aggregate amount of compensation paid to all persons in any fiscal year under this subsection may not exceed $1,000,000.” (b) Section 6(g) of the Federal Trade Commission Act (15 U.S.C. 46(g)) is amended by inserting “(except as provided in section 18 (a)(2) of this Act)” before “to make rules and regulations”. (c) (1) The amendments made by subsections (a) and (b) of this 15 USC 57a note. section shall not affect the validity of any rule which was promulgated under section 6(g) of the Federal Trade Commission Act prior to the date of enactment of this section. Any proposed rule under section 6(g) of such Act with respect to which presentation of data, views, and arguments was substantially completed before such date may be promulgated in the same manner and with the same validity as such rule could have been promulgated had this section not been enacted. (2) If a rule described in paragraph (1) of this subsection is valid and if section 18 of the Federal Trade Commission Act would have Ante, p. 2193. applied to such rule had such rule been promulgated after the date of enactment of this Act, any substantive change in the rule after it has been promulgated shall be made in accordance with such section 18. (d) The Federal Trade Commission and the Administrative Conference 15 USC 57a note. Study and evaluation. Report to Congress. of the United States shall each conduct a study and evaluation of the rulemaking procedures under section 18 of the Federal Trade Commission Act and each shall submit a report of its study (including any legislative recommendations) to the Congress not later than 18 months after the date of enactment of this Act. Sec. 203. investigative authority (a) (1) Section 6(a) of the Federal Trade Commission Act (15 U.S.C. 46(a)) is amended by striking out “corporation” and inserting “person, partnership, or corporation”; and by striking out “corporations and to individuals, associations, and partnerships”, and inserting in lieu thereof “persons, partnerships, and corporations”. (2) Section 6(b) of such Act is amended by striking out “corporations” where it first appears and inserting in lieu thereof “persons, partnerships, and corporations”; and by striking out “respective corporations” and inserting in lieu thereof “respective persons, partnerships, and corporations”. (3) The proviso at the end of section 6 of such Act is amended by striking out “any such corporation to the extent that such action is necessary to the investigation of any corporation, group of corporations,” and inserting in lieu thereof “any person, partnership, or corporation to the extent that such action is necessary to the investigation of any person, partnership, or corporation, group of persons, partnerships, or corporations,”. (b) (1) The first paragraph of section 9 of such Act (15 U.S.C. 49) is amended by striking out “corporation” where it first appears and inserting in lieu thereof “person, partnership, or corporation”. (2) The third paragraph of section 9 of such Act is amended by striking out “corporation or other person” both places where it appears and inserting in each such place “person, partnership, or corporation”. (3) The fourth paragraph of section 9 of such Act is amended by striking out “person or corporation” and inserting in lieu thereof “person, partnership, or corporation”. (c) (1) The second paragraph of section 10 (15 U.S.C. 50) of such Act is amended by striking out “corporation” each place where it appears and inserting in lieu thereof in each such place “person, partnership, or corporation”. (2) The third paragraph of section 10 of such Act is amended by striking out “corporation” where it first appears and inserting in lieu thereof “persons, partnership, or corporation”; and by striking out “in the district where the corporation has its principal office or in any district in which it shall do business” and inserting in lieu thereof “in the case of a corporation or partnership in the district where the corporation or partnership has its principal office or in any district in which it shall do business, and in the case of any person in the district where such person resides or has his principal place of business”. Sec. 204. representation (a) Section 16 of the Federal Trade Commission Act is 15 USC 56. amended to read as follows: “Sec. 16. (a) (1) Except as otherwise provided in paragraph (2) or (3), if— “(A) before commencing, defending, or intervening in, any civil action involving this Act (including an action to collect a civil penalty) which the Commission, or the Attorney General on behalf of the Commission, is authorized to commence, defend, or intervene in, the Commission gives written notification and undertakes to consult with the Attorney General with respect to such action; and “(B) the Attorney General fails within 45 days after receipt of such notification to commence, defend, or intervene in, such action; the Commission may commence, defend, or intervene in, and supervise the litigation of, such action and any appeal of such action in its own name by any of its attorneys designated by it for such purpose. “(2) Except as otherwise provided in paragraph (3), in any civil action— “(A) under section 13 of this Act (relating to injunctive 15 USC 53. relief); “(B) under section 19 of this Act (relating to consumer Post, p. 2201. redress); “(C) to obtain judicial review of a rule prescribed by the Commission, or a cease and desist order issued under section 5 of this Act; or 15 USC 45. “(D) under the second paragraph of section 9 of this Act 15 USC 49. (relating to enforcement of a subpena) and under the fourth paragraph of such section (relating to compliance with section 6 of this Act); the Commission shall have exclusive authority to commence or defend, and supervise the litigation of, such action and any appeal of such action in its own name by any of its attorneys designated by it for such purpose, unless the Commission authorizes the Attorney General to do so. The Commission shall inform the Attorney General of the exercise of such authority and such exercise shall not preclude the Attorney General from intervening on behalf of the United States in such action and any appeal of such action as may be otherwise provided by law. “(3) (A) If the Commission makes a written request to the Attorney General, within the 10-day period which begins on the date of the entry of the judgment in any civil action in which the Commission represented itself pursuant to paragraph (1) or (2), to represent itself through any of its attorneys designated by it for such purpose before the Supreme Court in such action, it may do so, if— “(i) the Attorney General concurs with such request; or “(ii) the Attorney General, within the 60-day period which begins on the date of the entry of such judgment— “(a) refuses to appeal or file a petition for writ of certiorari with respect to such civil action, in which case he shall give written notification to the Commission of the reasons for such refusal within such 60-day period; or “(b) the Attorney General fails to take any action with respect to the Commission’s request. “(B) In any case where the Attorney General represents the Commission before the Supreme Court in any civil action in which the Commission represented itself pursuant to paragraph (1) or (2), the Attorney General may not agree to any settlement, compromise, or dismissal of such action, or confess error in the Supreme Court with respect to such action, unless the Commission concurs. “(C) For purposes of this paragraph (with respect to representation “Attorney General.” before the Supreme Court), the term ‘Attorney General’ includes the Solicitor General. “(4) If, prior to the expiration of the 45-day period specified in paragraph (1) of this section or a 60-day period specified in paragraph (3), any right of the Commission to commence, defend, or intervene in, any such action or appeal may be extinguished due to any procedural requirement of any court with respect to the time in which any pleadings, notice of appeal, or other acts pertaining to such action or appeal may be taken, the Attorney General shall have one-half of the time required to comply with any such procedural requirement of the court (including any extension of such time granted by the court) for the purpose of commencing, defending, or intervening in the civil action pursuant to paragraph (1) or for the purpose of refusing to appeal or file a petition for writ of certiorari and the written notification or failing to take any action pursuant to paragraph 3(A)(ii). “(5) The provisions of this subsection shall apply notwithstanding chapter 31 of title 28, United States Code, or any other provision of 28 USC 501. law. “(b) Whenever the Commission has reason to believe that any person, partnership, or corporation is liable for a criminal penalty under this Act, the Commission shall certify the facts to the Attorney General, whose duty it shall be to cause appropriate criminal proceedings to be brought.” (b) Section 5(m) of such Act is repealed. 15 USC 45. (c) The amendment and repeal made by this section shall not apply 15 USC 56 note. to any civil action commenced before the date of enactment of this Act. Sec. 205. civil penalties for knowing violations (a) Section 5 of the Federal Trade Commission Act (15 U.S.C. 45(a)) is amended by inserting after subsection (1) the following new subsection: “(m) (1) (A) The Commission may commence a civil action to recover a civil penalty in a district court of the United States against any person, partnership, or corporation which violates any rule under this Act respecting unfair or deceptive acts or practices (other than an interpretive rule or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of subsection (a)(1)) with actual knowledge or knowledge fairly implied on the basis of objective circumstances that such act is unfair or deceptive and is prohibited by such rule. In such action, such person, partnership, or corporation shall be liable for a civil penalty of not more than $10,000 for each violation. “(B) If the Commission determines in a proceeding under subsection (b) that any act or practice is unfair or deceptive, and issues a final cease and desist order with respect to such act or practice, then the Commission may commence a civil action to obtain a civil penalty in a district court of the United States against any person, partnership, or corporation which engages in such act or practice— “(1) after such cease and desist order becomes final (whether or not such person, partnership, or corporation was subject to such cease and desist order), and “(2) with actual knowledge that such act or practice is unfair or deceptive and is unlawful under subsection (a)(1) of this section. In such action, such person, partnership, or corporation shall be liable for a civil penalty of not more than $10,000 for each violation. “(C) In the case of a violation through continuing failure to comply with a rule or with section 5(a)(1), each day of continuance of such failure shall be treated as a separate violation, for purposes of subparagraphs (A) and (B). In determining the amount of such a civil penalty, the court shall take into account the degree of culpability, any history of prior such conduct, ability to pay, effect on ability to continue to do business, and such other matters as justice may require. “(2) If the cease and desist order establishing that the act or practice is unfair or deceptive was not issued against the defendant in a civil penalty action under paragraph (1)(B) the issues of fact in such action against such defendant shall be tried de novo. “(3) The Commission may compromise or settle any action for a civil penalty if such compromise or settlement is accompanied by a public statement of its reasons and is approved by the court.” (b) The amendment made by subsection (a) of this section shall 15 USC 45 note. not apply to any violation, act, or practice to the extent that such violation, act, or practice occurred before the date of enactment of this Act. Sec. 206. consumer redress (a) The Federal Trade Commission Act (15 U.S.C. 45(a)) is amended by inserting after section 18 the following new section: “Sec. 19. (a) (1) If any person, partnership, or corporation violates 15 USC 57b. any rule under this Act respecting unfair or deceptive acts or practices (other than an interpretive rule, or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of section 5(a)), then the Commission may commence a civil action against such person, partnership, or corporation for relief under subsection (b) in a United States district court or in any court of competent jurisdiction of a State. “(2) If any person, partnership, or corporation engages in any unfair or deceptive act or practice (within the meaning of section 5(a)(1)) with respect to which the Commission has issued a final cease and desist order which is applicable to such person, partnership, or corporation, then the Commission may commence a civil action against such person, partnership, or corporation in a United States district court or in any court of competent jurisdiction of a State. If the Commission satisfies the court that the act or practice to which the cease and desist order relates is one which a reasonable man would have known under the circumstances was dishonest or fraudulent, the court may grant relief under subsection (b). “(b) The court in an action under subsection (a) shall have jurisdiction to grant such relief as the court finds necessary to redress injury to consumers or other persons, partnerships, and corporations resulting from the rule violation or the unfair or deceptive act or practice, as the case may be. Such relief may include, but shall not be limited to, rescission or reformation of contracts, the refund of money or return of property, the payment of damages, and public notification respecting the rule violation or the unfair or deceptive act or practice, as the case may be; except that nothing in this subsection is intended to authorize the imposition of any exemplary or punitive damages. “(c) (1) If (A) a cease and desist order issued under section 5(b) has become final under section 5(g) with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice, and (B) an action under this section is brought with respect to such person’s partnership’s, or corporation’s rule violation or act or practice, then the findings of the Commission as to the material facts in the proceeding under section 5(b) with respect to such person’s, partnership’s, or corporation’s rule violation or act or practice, shall be conclusive unless (i) the terms of such cease and desist order expressly provide that the Commission’s findings shall not be conclusive, or (ii) the order became final by reason of section 5(g)(1), in which case such finding shall be conclusive if supported by evidence. “(2) The court shall cause notice of an action under this section to Notice. be given in a manner which is reasonably calculated, under all of the circumstances, to apprise the persons, partnerships, and corporations allegedly injured by the defendant’s rule violation or act or practice of the pendency of such action. Such notice may, in the discretion of the court, be given by publication. “(d) No action may be brought by the Commission under this section Statute of limitations. more than 3 years after the rule violation to which an action under subsection (a)(1) relates, or the unfair or deceptive act or practice to which an action under subsection (a)(2) relates; except that if a cease and desist order with respect to any person’s, partnership’s, or corporation’s rule violation or unfair or deceptive act or practice has become final and such order was issued in a proceeding under section 5(b) which was commenced not later than 3 years after the rule violation or act or practice occurred, a civil action may be commenced under this section against such person, partnership, or corporation at any time before the expiration of one year after such order becomes final. “(e) Remedies provided in this section are in addition to, and not in lieu of, any other remedy or right of action provided by State or Federal law. Nothing in this section shall be construed to affect any authority of the Commission under any other provision of law.” (b) The amendment made by subsection (a) of this section shall 15 USC 57b note. not apply to— (1) any violation of a rule to the extent that such violation occurred before the date of enactment of this Act, or (2) any act or practice with respect to which the Commission issues a cease-and-desist order, to the extent that such act or practice occurred before the date of enactment of this Act, unless such order was issued after such date and the person, partnership or corporation against whom such an order was issued had been notified in the complaint, or in the notice or order attached thereto, that consumer redress may be sought. Sec. 207. authorization of appropriations The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by inserting after section 19 the following new section: Ante, p. 2201. “Sec. 20. There are authorized to be appropriated to carry out the 15 USC 57c. functions, powers, and duties of the Federal Trade Commission not to exceed $42,000,000 for the fiscal year ending June 30, 1975; not to exceed $46,000,000 for the fiscal year ending June 30, 1976; and not to exceed $50,000,000 for the fiscal year ending in 1977. For fiscal years ending after 1977, there may be appropriated to carry out such functions, powers, and duties, only such sums as the Congress may hereafter authorize by law.”

6. 1975

   Magnuson-Moss Warranty—Federal Trade Commission Improvement Act

   Pub. L. 93–637 § 202(b) · 88 Stat. 2184

   Inserted · 15 U.S.C. § 46(g)

   Pub. L. 93–637, § 202(b), inserted “(except as provided in section 57a(a)(2) of this title)” before “to make rules and regulations”

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 93–637, § 202(b), inserted “(except as provided in section 57a(a)(2) of this title)” before “to make rules and regulations”.

   Enacted provision · exact public law section
   (b) Section 6(g) of the Federal Trade Commission Act (15 U.S.C. 46(g)) is amended by inserting “(except as provided in section 18 (a)(2) of this Act)” before “to make rules and regulations”.

7. 1979

   Pub. L. 96–37 § 1(b)(3) · 93 Stat. 95

   Inserted · 15 U.S.C. § 46

   Pub. L. 96–37, § 1(b)(3), in proviso following subsec. (h), inserted references to savings and loan institutions and to persons, partnerships, corporations, groups of persons, partnerships, or corporations or industries that are not engaged or are engaged only incidentally in business as savings and loan institutions

   Source evidence

   Code amendment note
   Pub. L. 96–37, § 1(b)(3), in proviso following subsec. (h), inserted references to savings and loan institutions and to persons, partnerships, corporations, groups of persons, partnerships, or corporations or industries that are not engaged or are engaged only incidentally in business as savings and loan institutions.

   Enacted provision · exact public law section
   (1) Section 6(a) of the Federal Trade Commission Act (15 U.S.C. 46(a)) is amended by inserting after “banks” the following: “, savings and loan institutions described in section 18(f)(3),”.

8. 1979

   Pub. L. 96–37 § 1(b)(1) · 93 Stat. 95

   Inserted · 15 U.S.C. § 46(a); 15 U.S.C. § 46(b)

   Pub. L. 96–37, § 1(b)(1), (2), inserted reference to savings and loan institutions described in section 57a(f)(3) of this title

   Source evidence

   Code amendment note
   Subsecs. (a), (b). Pub. L. 96–37, § 1(b)(1), (2), inserted reference to savings and loan institutions described in section 57a(f)(3) of this title.

   Enacted provision · exact public law section
   (1) Section 6(a) of the Federal Trade Commission Act (15 U.S.C. 46(a)) is amended by inserting after “banks” the following: “, savings and loan institutions described in section 18(f)(3),”.

9. 1980

   Federal Trade Commission Improvements Act of 1980

   Pub. L. 96–252 · 94 Stat. 374

   Inserted · 15 U.S.C. § 46

   Pub. L. 96–252, §§ 3(b)–5(a), inserted three undesignated paragraphs following proviso after subsec. (h) requiring the Commission to establish a plan to reduce burdens imposed upon small businesses by the quarterly financial reporting requirements under subsec. (b) of this section, prohibiting Commissioners and officers and employees of the Commission from publishing or disclosing information whereby line-of-business data furnished by particular establishments or individuals can be identified, and, with certain exceptions, making this section inapplicable to the business of insurance

   Source evidence

   Code amendment note
   Pub. L. 96–252, §§ 3(b)–5(a), inserted three undesignated paragraphs following proviso after subsec. (h) requiring the Commission to establish a plan to reduce burdens imposed upon small businesses by the quarterly financial reporting requirements under subsec. (b) of this section, prohibiting Commissioners and officers and employees of the Commission from publishing or disclosing information whereby line-of-business data furnished by particular establishments or individuals can be identified, and, with certain exceptions, making this section inapplicable to the business of insurance.

   Effective date note
   Amendment by Pub. L. 96–252 effective May 28, 1980, see section 23 of Pub. L. 96–252, set out as a note under section 45 of this title.

10. 1980

    Federal Trade Commission Improvements Act of 1980

    Pub. L. 96–252 § 3(a) · 94 Stat. 374

    1. Substituted · 15 U.S.C. § 46(f)

       Pub. L. 96–252, § 3(a), substituted “as are” for “, except trade secrets and names of customers, as it shall deem expedient”

    2. Inserted · 15 U.S.C. § 46(f)

       Pub. L. 96–252, § 3(a), inserted proviso restricting Commission’s authority to make public trade secrets or commercial or financial information which is obtained from any person and which is privileged or confidential

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 96–252, § 3(a), substituted “as are” for “, except trade secrets and names of customers, as it shall deem expedient” and inserted proviso restricting Commission’s authority to make public trade secrets or commercial or financial information which is obtained from any person and which is privileged or confidential.

    Enacted provision · exact public law section
    (a) Section 6(f) of the Federal Trade Commission Act (15 U.S.C. 46(f)) is amended— (1) by striking out “, except trade secrets and names of customers, as it shall deem expedient” and inserting in lieu thereof “as are”; and (2) by inserting before the period at the end thereof the following: “: Provided, That the Commission shall not have any authority to make public any trade secret or any commercial or financial information which is obtained from any person and which is privileged or confidential, except that the Commission may disclose such information to officers and employees of appropriate Federal law enforcement agencies or to any officer or employee of any State law enforcement agency upon the prior certification of an officer of any such Federal or State law enforcement agency that such information will be maintained in confidence and will be used only for official law enforcement purposes”.

    Effective date note
    Amendment by Pub. L. 96–252 effective May 28, 1980, see section 23 of Pub. L. 96–252, set out as a note under section 45 of this title.

11. 1987

    Credit Union Amendments of 1987

    Pub. L. 100–86 § 715(b) · 101 Stat. 552

    Inserted · 15 U.S.C. § 46

    Pub. L. 100–86, § 715(b), in proviso following subsec. (h), inserted reference to Federal credit unions described in section 57a(f)(4) of this title and reference to in business as a Federal credit union

    Source evidence

    Code amendment note
    Pub. L. 100–86, § 715(b), in proviso following subsec. (h), inserted reference to Federal credit unions described in section 57a(f)(4) of this title and reference to in business as a Federal credit union.

    Enacted provision · exact public law section
    (b) Investigations of Foreign Trade Conditions; Reports.— The second proviso in section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is amended— (1) by inserting immediately after “section 18(f)(3),” the following: “Federal credit unions described in section 18(f)(4),”; and (2) by inserting immediately after “in business as a savings and loan institution,” the following: “in business as a Federal credit union,”.

12. 1987

    Credit Union Amendments of 1987

    Pub. L. 100–86 § 715(a)(1) · 101 Stat. 552

    Inserted · 15 U.S.C. § 46(a); 15 U.S.C. § 46(b)

    Pub. L. 100–86, § 715(a)(1), (2), inserted reference to Federal credit unions described in section 57a(f)(4) of this title

    Source evidence

    Code amendment note
    Subsecs. (a), (b). Pub. L. 100–86, § 715(a)(1), (2), inserted reference to Federal credit unions described in section 57a(f)(4) of this title.

    Enacted provision · exact public law section
    (1) Sections 5(a)(2) and 6(a) of the Federal Trade Commission Act (15 U.S.C. 45(a)(2) and 46(a)) are amended by inserting immediately after “section 18(f)(3),” the following: “Federal credit unions described in section 18(f)(4),”. 15 USC 57a.

13. 1994

    Pub. L. 103–437 § 5(a) · 108 Stat. 4581

    Substituted · 15 U.S.C. § 46

    Pub. L. 103–437, in first and third undesignated pars. following proviso after subsec. (h), substituted “Committee on Energy and Commerce” for “Committee on Interstate and Foreign Commerce”

    Source evidence

    Code amendment note
    Pub. L. 103–437, in first and third undesignated pars. following proviso after subsec. (h), substituted “Committee on Energy and Commerce” for “Committee on Interstate and Foreign Commerce”.

    Enacted provision · exact public law section
    (a) Sections 6 (paragraphs after subsection (h)) and 18(b)(2) of the Federal Trade Commission Act (15 U.S.C. 46 (paragraphs after subsection (h)), 57a(b)(2)) are amended by striking “Committee on Interstate and Foreign Commerce” each place it appears and substituting “Committee on Energy and Commerce”.

14. 1994

    International Antitrust Enforcement Assistance Act of 1994

    Pub. L. 103–438 § 3(e)(2)(A) · 108 Stat. 4597

    Added · 15 U.S.C. § 46(i)

    Pub. L. 103–438 added subsec. (i)

    Source evidence

    Code amendment note
    Subsec. (i). Pub. L. 103–438 added subsec. (i).

    Enacted provision · exact public law section
    (A) in section 6 by inserting after subsection (h) the following: “(i) With respect to the International Antitrust Enforcement Assistance Act of 1994, to conduct investigations of possible violations of foreign antitrust laws (as defined in section 12 of such Act).”;

15. 2006

    Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond Borders Act of 2006

    Pub. L. 109–455 § 4(d) · 120 Stat. 3372

    Repealed · 15 U.S.C. § 46

    Pub. L. 109–455, § 4(d), which substituted “subsections (a), (b), and (j)” for “clauses (a) and (b)” in proviso following subsec. (l), was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below

    Source evidence

    Code amendment note
    Pub. L. 109–455, § 4(d), which substituted “subsections (a), (b), and (j)” for “clauses (a) and (b)” in proviso following subsec. (l), was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below.

    Enacted provision · exact public law section
    (d) Conforming Amendment.— Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is amended by striking “clauses (a) and (b)” in the proviso following subsection (l) (as added by subsection (b) of this section) and inserting “subsections (a), (b), and (j)”.

16. 2006

    Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond Borders Act of 2006

    Pub. L. 109–455 § 4(a) · 120 Stat. 3372

    1. Inserted · 15 U.S.C. § 46(f)

       Pub. L. 109–455, § 4(a), which inserted “(1)” after “disclose such information”

    2. Substituted · 15 U.S.C. § 46(f)

       Pub. L. 109–455, § 4(a), which substituted “purposes, and” for “purposes.”

    3. Repealed · 15 U.S.C. § 46(f)

       Pub. L. 109–455, § 4(a), which added par. (2) providing for conditional disclosure to officers and employees of foreign law enforcement, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 109–455, § 4(a), which inserted “(1)” after “disclose such information”, substituted “purposes, and” for “purposes.”, and added par. (2) providing for conditional disclosure to officers and employees of foreign law enforcement, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below.

    Enacted provision · exact public law section
    (a) Publication of Information; Reports.— Section 6(f) of the Federal Trade Commission Act (15 U.S.C. 46(f)) is amended— (1) by inserting “(1)” after “such information” the first place it appears; and (2) by striking “purposes.” and inserting “purposes, and (2) to any officer or employee of any foreign law enforcement agency under the same circumstances that making material available to foreign law enforcement agencies is permitted under section 21(b).”.

17. 2006

    Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond Borders Act of 2006

    Pub. L. 109–455 § 4(b) · 120 Stat. 3372

    Repealed · 15 U.S.C. § 46(j)(l)

    Pub. L. 109–455, § 4(b), which added subsecs. (j) to (l) relating to investigative assistance for foreign law enforcement agencies, referral of evidence for criminal proceedings, and expenditures for cooperative arrangements, respectively, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below

    Source evidence

    Code amendment note
    Subsecs. (j) to (l). Pub. L. 109–455, § 4(b), which added subsecs. (j) to (l) relating to investigative assistance for foreign law enforcement agencies, referral of evidence for criminal proceedings, and expenditures for cooperative arrangements, respectively, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below.

    Enacted provision · exact public law section
    (b) Other Powers of the Commission.— Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is further amended by inserting after subsection (i) and before the proviso the following: “(j) Investigative Assistance for Foreign Law Enforcement Agencies.— “(1) In general.— Upon a written request from a foreign law enforcement agency to provide assistance in accordance with this subsection, if the requesting agency states that it is investigating, or engaging in enforcement proceedings against, possible violations of laws prohibiting fraudulent or deceptive commercial practices, or other practices substantially similar to practices prohibited by any provision of the laws administered by the Commission, other than Federal antitrust laws (as defined in section 12(5) of the International Antitrust Enforcement Assistance Act of 1994 (15 U.S.C. 6211(5))), to provide the assistance described in paragraph (2) without requiring that the conduct identified in the request constitute a violation of the laws of the United States. “(2) Type of assistance.— In providing assistance to a foreign law enforcement agency under this subsection, the Commission may— “(A) conduct such investigation as the Commission deems necessary to collect information and evidence pertinent to the request for assistance, using all investigative powers authorized by this Act; and “(B) when the request is from an agency acting to investigate or pursue the enforcement of civil laws, or when the Attorney General refers a request to the Commission from an agency acting to investigate or pursue the enforcement of criminal laws, seek and accept appointment by a United States district court of Commission attorneys to provide assistance to foreign and international tribunals and to litigants before such tribunals on behalf of a foreign law enforcement agency pursuant to section 1782 of title 28, United States Code. “(3) Criteria for determination.— In deciding whether to provide such assistance, the Commission shall consider all relevant factors, including— “(A) whether the requesting agency has agreed to provide or will provide reciprocal assistance to the Commission; “(B) whether compliance with the request would prejudice the public interest of the United States; and “(C) whether the requesting agency’s investigation or enforcement proceeding concerns acts or practices that cause or are likely to cause injury to a significant number of persons. “(4) International agreements.— If a foreign law enforcement agency has set forth a legal basis for requiring execution of an international agreement as a condition for reciprocal assistance, or as a condition for provision of materials or information to the Commission, the Commission, with prior approval and ongoing oversight of the Secretary of State, and with final approval of the agreement by the Secretary of State, may negotiate and conclude an international agreement, in the name of either the United States or the Commission, for the purpose of obtaining such assistance, materials, or information. The Commission may undertake in such an international agreement to— “(A) provide assistance using the powers set forth in this subsection; “(B) disclose materials and information in accordance with subsection (f) and section 21(b); and “(C) engage in further cooperation, and protect materials and information received from disclosure, as authorized by this Act. “(5) Additional authority.— The authority provided by this subsection is in addition to, and not in lieu of, any other authority vested in the Commission or any other officer of the United States. “(6) Limitation.— The authority granted by this subsection shall not authorize the Commission to take any action or exercise any power with respect to a bank, a savings and loan institution described in section 18(f)(3) (15 U.S.C. 57a(f)(3)), a Federal credit union described in section 18(f)(4) (15 U.S.C. 57a(f)(4)), or a common carrier subject to the Act to regulate commerce, except in accordance with the undesignated proviso following the last designated subsection of section 6 (15 U.S.C. 46). “(7) Assistance to certain countries.— The Commission may not provide investigative assistance under this subsection to a foreign law enforcement agency from a foreign state that the Secretary of State has determined, in accordance with section 6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)), has repeatedly provided support for acts of international terrorism, unless and until such determination is rescinded pursuant to section 6(j)(4) of that Act (50 U.S.C. App. 2405(j)(4)). “(k) Referral of Evidence for Criminal Proceedings.— “(1) In general.— Whenever the Commission obtains evidence that any person, partnership, or corporation, either domestic or foreign, has engaged in conduct that may constitute a violation of Federal criminal law, to transmit such evidence to the Attorney General, who may institute criminal proceedings under appropriate statutes. Nothing in this paragraph affects any other authority of the Commission to disclose information. “(2) International information.— The Commission shall endeavor to ensure, with respect to memoranda of understanding and international agreements it may conclude, that material it has obtained from foreign law enforcement agencies acting to investigate or pursue the enforcement of foreign criminal laws may be used for the purpose of investigation, prosecution, or prevention of violations of United States criminal laws. “(l) Expenditures for Cooperative Arrangements.— To expend appropriated funds for— “(1) operating expenses and other costs of bilateral and multilateral cooperative law enforcement groups conducting activities of interest to the Commission and in which the Commission participates; and “(2) expenses for consultations and meetings hosted by the Commission with foreign government agency officials, members of their delegations, appropriate representatives and staff to exchange views concerning developments relating to the Commission’s mission, development and implementation of cooperation agreements, and provision of technical assistance for the development of foreign consumer protection or competition regimes, such expenses to include necessary administrative and logistic expenses and the expenses of Commission staff and foreign invitees in attendance at such consultations and meetings including— “(A) such incidental expenses as meals taken in the course of such attendance; “(B) any travel and transportation to or from such meetings; and “(C) any other related lodging or subsistence.” .

18. 2012

    Pub. L. 112–203 § 1 · 126 Stat. 1484

    Amended · 15 U.S.C. § 46

    Pub. L. 112–203, § 1, amended Pub. L. 109–455, § 13. See 2006 Amendment notes below

    Source evidence

    Code amendment note
    Pub. L. 112–203, § 1, amended Pub. L. 109–455, § 13. See 2006 Amendment notes below.

    Enacted provision · exact public law section
    SECTION 1. EXTENSION OF THE U.S. SAFE WEB ACT OF 2006.   Section 13 of the U.S. SAFE WEB Act of 2006 (Public Law 109–455; 15 U.S.C. 44 note) is amended to read as follows: “SEC. 13. SUNSET.   “Effective Repeal. September 30, 2020, this Act, and the amendments made by this Act, are repealed, and any provision of law amended by this Act shall be amended to read as if this Act had not been enacted into law.” .

18 of 25 references resolved to an enrolled provision · 7 partial