[Congressional Record Volume 140, Number 96 (Thursday, July 21, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: July 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
CONFERENCE REPORT ON H.R. 2243, FEDERAL TRADE COMMISSION ACT AMENDMENTS 
                                OF 1994

  Mr. SWIFT submitted the following conference report and statement on 
the bill (H.R. 2243) to amend the Federal Trade Commission Act to 
extend the authorization of appropriations in such Act, and for other 
purposes:

                  Conference Report (H. Rept. 103-617)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2243), to amend the Federal Trade Commission Act to extend 
     the authorization of appropriations in such Act, and for 
     other purposes, having met, after full and free conference, 
     have agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION. 1. SHORT TITLE; REFERENCE.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Trade Commission Act Amendments of 1994''.
       (b) Reference.--Whenever in this Act an amendment or repeal 
     is expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Federal 
     Trade Commission Act.

     SEC. 2. AGRICULTURAL COOPERATIVES.

       The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
     amended by redesignating sections 24 and 25 as sections 25 
     and 26, respectively, and by inserting immediately after 
     section 23 the following new section:
       ``Sec. 24. (a) The Commission shall not have any authority 
     to conduct any study, investigation, or prosecution of any 
     agricultural cooperative for any conduct which, because of 
     the provisions of the Act entitled `An Act to authorize 
     association of producers of agricultural products', approved 
     February 18, 1922 (7 U.S.C. 291 et seq., commonly known as 
     the Capper-Volstead Act), is not a violation of any of the 
     antitrust Acts or this Act.
       ``(b) The Commission shall not have any authority to 
     conduct any study or investigation of any agricultural 
     marketing orders.''.

     SEC. 3. COMPENSATION IN PROCEEDINGS.

       (a) Repeal.--Subsection (h) of section 18 (15 U.S.C. 57a) 
     is repealed and subsections (i), (j), and (k) of section 18 
     are redesignated as subsections (h), (i), and (j), 
     respectively.
       (b) Conforming Amendment.--Section 18(a)(1) (15 U.S.C. 
     57a(a)(1)) is amended by striking ``subsection (i)'' and 
     inserting ``subsection (h)''.

     SEC. 4. PROCEEDINGS SUBSEQUENT TO VIOLATIONS OF ORDERS.

       (a) Consent Orders.--Section 5(m)(1)(B) (15 U.S.C. 
     45(m)(1)(B)) is amended by inserting ``, other than a consent 
     order,'' immediately after ``order'' the first time it 
     appears.
       (b) Determinations of Law.--Section 5(m)(2) (15 U.S.C. 
     45(m)(2)) is amended by adding at the end the following: 
     ``Upon request of any party to such an action against such 
     defendant, the court shall also review the determination of 
     law made by the Commission in the proceeding under subsection 
     (b) that the act or practice which was the subject of such 
     proceeding constituted an unfair or deceptive act or practice 
     in violation of subsection (a).''.

     SEC. 5. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES.

       Section 18(b) (15 U.S.C. 57a(b)) is amended by adding at 
     the end the following new paragraph:
       ``(3) The Commission shall issue a notice of proposed 
     rulemaking pursuant to paragraph (1)(A) only where it has 
     reason to believe that the unfair or deceptive acts or 
     practices which are the subject of the proposed rulemaking 
     are prevalent. The Commission shall make a determination that 
     unfair or deceptive acts or practices are prevalent under 
     this paragraph only if--
       ``(A) it has issued cease and desist orders regarding such 
     acts or practices, or
       ``(B) any other information available to the Commission 
     indicates a widespread pattern of unfair or deceptive acts or 
     practices.''.

     SEC. 6. EFFECTIVE DATE OF ORDERS.

       (a) Orders Subject to Petition for Review.--Section 5(g)(2) 
     (15 U.S.C. 45(g)(2)) is amended to read as follows:
       ``(2) Except as to any order provision subject to paragraph 
     (4), upon the sixtieth day after such order is served, if a 
     petition for review has been duly filed; except that any such 
     order may be stayed, in whole or in part and subject to such 
     conditions as may be appropriate, by--
       ``(A) the Commission;
       ``(B) an appropriate court of appeals of the United States, 
     if (i) a petition for review of such order is pending in such 
     court, and (ii) an application for such a stay was previously 
     submitted to the Commission and the Commission, within the 
     30-day period beginning on the date the application was 
     received by the Commission, either denied the application or 
     did not grant or deny the application; or
       ``(C) the Supreme Court, if an applicable petition for 
     certiorari is pending.''.
       (b) Orders Subject to Sections 5(m)(1)(B) and 19(a)(2).--
     Section 5(g)(3) (15 U.S.C. 45(g)(3)) is amended to read as 
     follows:
       ``(3) For purposes of subsection (m)(1)(B) and of section 
     19(a)(2), if a petition for review of the order of the 
     Commission has been filed--
       ``(A) upon the expiration of the time allowed for filing a 
     petition for certiorari, if the order of the Commission has 
     been affirmed or the petition for review has been dismissed 
     by the court of appeals and no petition for certiorari has 
     been duly filed;
       ``(B) upon the denial of a petition for certiorari, if the 
     order of the Commission has been affirmed or the petition for 
     review has been dismissed by the court of appeals; or
       ``(C) upon the expiration of 30 days from the date of 
     issuance of a mandate of the Supreme Court directing that the 
     order of the Commission be affirmed or the petition for 
     review be dismissed.''.
       (c) Divestiture Orders.--Section 5(g)(4) (15 U.S.C. 
     45(g)(4)) is amended to read as follows:
       ``(4) In the case of an order provision requiring a person, 
     partnership, or corporation to divest itself of stock, other 
     share capital, or assets, if a petition for review of such 
     order of the Commission has been filed--
       ``(A) upon the expiration of the time allowed for filing a 
     petition for certiorari, if the order of the Commission has 
     been affirmed or the petition for review has been dismissed 
     by the court of appeals and no petition for certiorari has 
     been duly filed;
       ``(B) upon the denial of a petition for certiorari, if the 
     order of the Commission has been affirmed or the petition for 
     review has been dismissed by the court of appeals; or
       ``(C) upon the expiration of 30 days from the date of 
     issuance of a mandate of the Supreme Court directing that the 
     order of the Commission be affirmed or the petition for 
     review be dismissed.''.
       (d) Technical.--Paragraph (1) of section 5(g) (15 U.S.C. 
     45(g)(1)) is amended by striking ``; or'' and inserting a 
     period.

     SEC. 7. CIVIL INVESTIGATIVE DEMANDS.

       (a) Definitions.--Section 20(a) (15 U.S.C. 57b-1(a)) is 
     amended--
       (1) in paragraph (2), by inserting ``or in any antitrust 
     violations'' immediately after ``section 5(a)(1))'';
       (2) in paragraph (3), by inserting ``or any provisions 
     relating to antitrust violations'' immediately after 
     ``section 5(a)(1))'';
       (3) in paragraph (7), by inserting ``or any antitrust 
     violation'' immediately after ``section 5(a)(1))''; and
       (4) by adding at the end the following new paragraph:
       ``(8) The term `antitrust violation' means any unfair 
     method of competition (within the meaning of section 
     5(a)(1)), any violation of the Clayton Act, any violation of 
     any other Federal statute that prohibits, or makes available 
     to the Commission a civil remedy with respect to, any 
     restraint upon or monopolization of interstate or foreign 
     trade or commerce, or any activity in preparation for a 
     merger, acquisition, joint venture, or similar transaction, 
     which if consummated, may result in such an unfair method of 
     competition or violation.''.
       (b) Issuance of Demand.--(1) Section 20(c)(1) (15 U.S.C. 
     57b-1 (c)(1)) is amended--
       (A) by inserting ``or tangible things'' immediately after 
     ``documentary material'' the first place it appears;
       (B) by inserting ``or to antitrust violations,'' 
     immediately after ``section 5(a)(1)) ,''; and
       (C) by inserting ``to submit such tangible things,'' 
     immediately after ``copying or reproduction,''.
       (2) Section 20(c) (15 U.S.C. 57b-1(c)) is amended--
       (A) by redesignating paragraphs (4), (5), (6), (7), (8), 
     (9), (10), (11), and (12) as paragraphs (5), (6), (7), (8), 
     (9), (10), (11), (13), and (14), respectively;
       (B) by inserting immediately after paragraph (3) the 
     following new paragraph:
       ``(4) Each civil investigative demand for the submission of 
     tangible things shall--
       ``(A) describe each class of tangible things to be 
     submitted under the demand with such definiteness and 
     certainty as to permit such things to be fairly identified;
       ``(B) prescribe a return date or dates which will provide a 
     reasonable period of time within which the things so demanded 
     may be assembled and submitted; and
       ``(C) identify the custodian to whom such things shall be 
     submitted.''; and
       (C) by inserting immediately after paragraph (11), as so 
     redesignated, the following new paragraph:
       ``(12) The submission of tangible things in response to a 
     civil investigative demand shall be made under a sworn 
     certificate, in such form as the demand designates, by the 
     person to whom the demand is directed or, if not a natural 
     person, by any person having knowledge of the facts and 
     circumstances relating to such production, to the effect that 
     all of the tangible things required by the demand and in the 
     possession, custody, or control of the person to whom the 
     demand is directed have been submitted to the custodian.''.
       (c) Section 20(g).--Section 20(g) (15 U.S.C. 57b-1(g)) is 
     amended by inserting ``, tangible things'' immediately after 
     ``documentary material''.
       (d) Applicability of Section 20.--Section 20(j)(1) (15 
     U.S.C. 57b-1(j)(1)) is amended by inserting immediately 
     before the semicolon the following: ``, any proceeding under 
     section 11(b) of the Clayton Act (15 U.S.C. 21(b)), or any 
     adjudicative proceeding under any other provision of law''.

     SEC. 8. COMMISSION CUSTODY OF TANGIBLE THINGS.

       Section 21 (15 U.S.C. 57b-2) is amended--
       (1) in subsection (a)(1), by inserting ``tangible things,'' 
     immediately after ``documentary material,'';
       (2) in subsection (b)(1), by inserting ``, tangible 
     thing,'' immediately after ``document'';
       (3) in subsection (b)(2)(A), by inserting ``tangible 
     things,'' immediately after ``documentary material,'';
       (4) in subsection (b)(3)--
       (A) in subparagraph (A), by inserting ``tangible things,'' 
     immediately after ``documentary material,'';
       (B) in subparagraph (B), by inserting ``, and may make 
     tangible things available,'' immediately after ``oral 
     testimony''; and by inserting ``, things,'' immediately after 
     ``such material'';
       (C) in subparagraph (C), by inserting ``tangible things,'' 
     immediately after ``documentary material,'' and by inserting 
     ``, things,'' immediately after ``material''; and
       (D) in subparagraph (D), by inserting ``, tangible 
     things,'' immediately after ``documentary material'';
       (5) in subsection (b)(4), by inserting ``tangible things,'' 
     immediately after ``documentary material,'';
       (6) in subsection (b)(5), by inserting ``tangible things,'' 
     immediately after ``documentary material,'';
       (7) in subsection (b)(6)--
       (A) by inserting immediately after the first sentence the 
     following new sentence: ``The custodian of any tangible 
     things may make such things available for inspection to such 
     persons on the same basis.''; and
       (B) by inserting ``results of inspections of tangible 
     things,'' immediately after ``Such documentary material,''; 
     and
       (8) in subsection (b)(7), by inserting ``tangible things,'' 
     immediately after ``documentary material,''.

     SEC. 9. DEFINITION OF UNFAIR ACTS OR PRACTICES.

       Section 5 (15 U.S.C. 45) is amended by adding at the end 
     the following:
       ``(n) The Commission shall have no authority under this 
     section or section 18 to declare unlawful an act or practice 
     on the grounds that such act or practice is unfair unless the 
     act or practice causes or is likely to cause substantial 
     injury to consumers which is not reasonably avoidable by 
     consumers themselves and not outweighed by countervailing 
     benefits to consumers or to competition. In determining 
     whether an act or practice is unfair, the Commission may 
     consider established public policies as evidence to be 
     considered with all other evidence. Such public policy 
     considerations may not serve as a primary basis for such 
     determination.''.

     SEC. 10. PROCESS.

       (a) Authority.--
       (1) Advertisements in violation of section 12.--Section 
     13(a) (15 U.S.C. 53(a)) is amended by striking the last 
     sentence and inserting the following: ``Any suit may be 
     brought where such person, partnership, or corporation 
     resides or transacts business, or wherever venue is proper 
     under section 1391 of title 28, United States Code. In 
     addition, the court may, if the court determines that the 
     interests of justice require that any other person, 
     partnership, or corporation should be a party in such suit, 
     cause such other person, partnership, or corporation to be 
     added as a party without regard to whether venue is otherwise 
     proper in the district in which the suit is brought. In any 
     suit under this section, process may be served on any person, 
     partnership, or corporation wherever it may be found.''.
       (2) Provisions enforced by Commission.--Section 13(b) (15 
     U.S.C. 53(b)) is amended by striking the last sentence and 
     inserting the following: ``Any suit may be brought where such 
     person, partnership, or corporation resides or transacts 
     business, or wherever venue is proper under section 1391 of 
     title 28, United States Code. In addition, the court may, if 
     the court determines that the interests of justice require 
     that any other person, partnership, or corporation should be 
     a party in such suit, cause such other person, partnership, 
     or corporation to be added as a party without regard to 
     whether venue is otherwise proper in the district in which 
     the suit is brought. In any suit under this section, process 
     may be served on any person, partnership, or corporation 
     wherever it may be found.''.
       (b) Procedures.--Section 13 (15 U.S.C. 53) is amended--
       (1) by redesignating subsection (c) as subsection (d); and
       (2) by inserting immediately after subsection (b) the 
     following new subsection:
       ``(c) Any process of the Commission under this section may 
     be served by any person duly authorized by the Commission--
       ``(1) by delivering a copy of such process to the person to 
     be served, to a member of the partnership to be served, or to 
     the president, secretary, or other executive officer or a 
     director of the corporation to be served;
       ``(2) by leaving a copy of such process at the residence or 
     the principal office or place of business of such person, 
     partnership, or corporation; or
       ``(3) by mailing a copy of such process by registered mail 
     or certified mail addressed to such person, partnership, or 
     corporation at his, or her, or its residence, principal 
     office, or principal place or business.

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

     SEC. 11. INTERVENTION BY COMMISSION IN CERTAIN PROCEEDINGS.

       (a) Limitation on Use of Authorized Funds.--The Federal 
     Trade Commission shall not have any authority to use any 
     funds which are authorized to be appropriated to carry out 
     the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for 
     fiscal years 1994, 1995, and 1996 for the purpose of 
     submitting statements to, appearing before, or intervening in 
     the proceedings of, any Federal or State agency or State 
     legislative body concerning proposed rules or legislation 
     that the agency or legislative body is considering unless the 
     Commission advises the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives regarding such 
     action as soon as possible.
       (b) Contents of Notice to Congress.--The notice required in 
     subsection (a) shall include the name of the agency or 
     legislator involved, the date of such action, and a concise 
     statement regarding the nature and purpose of such action.

     SEC. 12. RESOURCE ALLOCATION STUDY.

       The Federal Trade Commission shall conduct an evaluation of 
     the level of its personnel resources and the manner in which 
     such resources are allocated. The Commission shall study--
       (1) whether overall resources at the Commission are 
     adequate to fulfill the Commission's responsibilities in the 
     areas of competition and consumer protection;
       (2) the distribution of personnel to individual offices of 
     commissioners, departments, bureaus, and other units within 
     the Commission, and whether the current allocation of 
     personnel most efficiently enables the Commission to fulfill 
     its statutory mandate;
       (3) the number of personnel in supervisory positions, 
     contrasted with those personnel in nonsupervisory positions; 
     and
       (4) whether the amount of workyears devoted to research 
     activities should be increased and what results (if any) such 
     an increase would produce.

     The Commission shall transmit the results of such study, 
     together with any recommendations that the Commission 
     determines appropriate, to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Energy and Commerce of the House of Representatives not 
     later than 6 months after the date of enactment of this Act.

     SEC. 13. FEDERAL-STATE COOPERATION.

       The Federal Trade Commission shall review its statutory 
     responsibilities to identify those matters within its 
     jurisdiction where Federal enforcement is particularly 
     necessary or desirable and those areas that might more 
     effectively be enforced at the State or local level. In 
     identifying such areas, the Commission shall--
       (1) consider the resources available to the Commission and 
     the States, as well as particular rules that have been 
     promulgated by the Commission;
       (2) consult with the attorneys general of the States, 
     representatives of consumers and industry, and other 
     interested parties; and
       (3) consider such other issues as will result in more 
     efficient implementation of the statutory responsibilities of 
     the Commission.

     Not later than 6 months after the date of enactment of this 
     Act, the Commission shall transmit to the Committee on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Energy and Commerce of the House of 
     Representatives the information identified in paragraphs (1) 
     through (3), together with specific recommendations for 
     methods of achieving greater cooperation between the 
     Commission and the States.

     SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

       Section 25 (15 U.S.C. 57c), as so redesignated by section 2 
     of this Act, is amended to read as follows:
       ``Sec. 25. There are authorized to be appropriated to carry 
     out the functions, powers, and duties of the Commission not 
     to exceed $92,700,000 for fiscal year 1994; not to exceed 
     $99,000,000 for fiscal year 1995; and not to exceed 
     $102,000,000 for fiscal year 1996.''.

     SEC. 15. EFFECTIVE DATE; APPLICABILITY.

       (a) In General.--Except as provided in subsections (b), 
     (c), (d), and (e), the provisions of this Act shall take 
     effect on the date of enactment of this Act.
       (b) Applicability of Section 5.--The amendment made by 
     section 5 of this Act shall apply only to rulemaking 
     proceedings initiated after the date of enactment of this 
     Act. Such amendment shall not be construed to affect in any 
     manner a rulemaking proceeding which was initiated before the 
     date of enactment of this Act.
       (c) Applicability of Section 6.--The amendments made by 
     section 6 of this Act shall apply only with respect to cease 
     and desist orders issued under section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45) after the date of enactment of 
     this Act. These amendments shall not be construed to affect 
     in any manner a cease and desist order which was issued 
     before the date of enactment of this Act.
       (d) Applicability of Sections 7 and 8.--The amendments made 
     by sections 7 and 8 of this Act shall apply only with respect 
     to compulsory process issued after the date of enactment of 
     this Act.
       (e) Applicability of Section 9.--The amendments made by 
     section 9 of this Act shall apply only with respect to cease 
     and desist orders issued under section 5 of the Federal Trade 
     Commission Act (15 U.S.C. 45), or to rules promulgated under 
     section 18 of the Federal Trade Commission Act (15 U.S.C. 
     57a) after the date of enactment of this Act. These 
     amendments shall not be construed to affect in any manner a 
     cease and desist order which was issued, or a rule which was 
     promulgated, before the date of enactment of this Act. These 
     amendments shall not be construed to affect in any manner a 
     cease and desist order issued after the date of enactment of 
     this Act, if such order was issued pursuant to remand from a 
     court of appeals or the Supreme Court of an order issued by 
     the Federal Trade Commission before the date of enactment of 
     this Act.

       And the Senate agree to the same.
     John D. Dingell,
     Al Swift,
     T.J. Manton,
     Carlos J. Moorhead,
     M.G. Oxley,
                                Managers on the Part of the House.

     Ernest F. Hollings,
     Wendell Ford,
     Richard H. Bryan,
     Jack Danforth,
     Slade Gorton,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2243) to amend the 
     Federal Trade Commission Act to extend the authorization of 
     appropriations in such Act, and for other purposes, submit 
     the following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.


                             1. short title

     House bill
       Designates short title as the ``Federal Trade Commission 
     Act Amendments of 1993.''
     Senate amendment
       Identical provision.
     Conference agreement
       Conferees agree to designate title as ``Federal Trade 
     Commission Act Amendments of 1994.''


                    2. unfair methods of competition

     Senate amendment
       Amends the Federal Trade Commission Act (the Act) to 
     provide that State action antitrust immunity, as developed by 
     courts in litigation under the Sherman Act, would apply 
     equally to cases brought by the Federal Trade Commission 
     (FTC) alleging unfair methods of competition.
     House bill
       No provision.
     Conference agreement
       Senate recedes.


                      3. agricultural cooperatives

     House bill
       Amends the Act by establishing restrictions on the FTC's 
     authority to prosecute, investigate, or study agricultural 
     cooperatives and to study and investigate agricultural 
     marketing orders.
     Senate amendment
       Similar provision.
     Conference agreement
       House recedes to Senate amendment.


                     4. compensation in proceedings

     Senate amendment
       Repeals the FTC's authority under section 18(h) of the Act 
     to compensate persons who participate in FTC rulemaking 
     proceedings.
     House bill
       No provision.
     Conference agreement
       House recedes to Senate amendment.


           5. proceedings subsequent to violations of orders

     House bill
       Clarifies scope of FTC's authority under section 5(m)(1)(B) 
     of the Act to obtain civil penalties against persons who 
     engage in unfair or deceptive acts or practices as defined by 
     prior Commission orders.
     Senate amendment
       Similar provision.
     Conference agreement
       House recedes to Senate amendment.


              6. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES

     Senate amendment
       Amends section 18(b) of the Act to permit the FTC to issue 
     a notice of proposed rulemaking only where the FTC has reason 
     to believe the challenged conduct is prevalent in the 
     industry.
     House bill
       No provision.
     Conference agreement
       House recedes to Senate amendment with amendment to require 
     indication of ``widespread'' pattern of unfair or deceptive 
     acts or practices.


                      7. EFFECTIVE DATE OF ORDERS

     House bill
       Amends Act to make most FTC cease-and-desist orders 
     effective 60 days after service, unless stayed by the FTC or 
     a court.
     Senate amendment
       Similar provision.
     Conference agreement
       House recedes to Senate amendment. As provided in the 
     Senate amendment, the conferees agree to retain the current 
     mandatory stay requirements with regard to divestiture 
     orders. To the extent such orders pertain to divestiture 
     orders, as well as other activities, the conferees agree that 
     the effect of the provision adopted is that only the specific 
     provisions requiring divestiture in such orders are stayed 
     automatically.


                     8. CIVIL INVESTIGATIVE DEMANDS

     House bill
       Amends section 20 of the Act to allow FTC investigations 
     concerning methods of competition declared unlawful by a law 
     administered by the FTC to be conducted pursuant to civil 
     investigative demand procedures set out in such section.
     Senate amendment
       Similar provision.
     Conference agreement
       House recedes to Senate amendment with technical changes. 
     The conferees agree that the authority made available to the 
     FTC under this section is additional and not in lieu of other 
     forms of process available in any FTC investigations.


                     9. CUSTODY OF TANGIBLE THINGS

     Senate amendment
       Conforms section 21 of the Act, which sets forth 
     confidentiality requirements for materials the FTC receives 
     as a result of a civil investigative demand (CID) or 
     subpoena, to the CID provisions adopted by the conferees in 
     section 7 of the conference substitute.
     House bill
       No provision.
     Conference agreement
       House recedes to Senate amendment.


               10. DEFINITION OF UNFAIR ACTS OR PRACTICES

     Senate amendment
       Amends section 5 of the Act to limit unfair acts or 
     practices to those that: (1) cause or are likely to cause 
     substantial injury to consumers, (2) which is not reasonably 
     avoidable by consumers themselves and (3) not outweighed by 
     countervailing benefits to consumers or competition.
     House bill
       No provision.
     Conference agreement
       House recedes to Senate amendment with an amendment. The 
     amendment retains the three-part test set forth in the Senate 
     amendment but adds the following: ``In determining whether an 
     act or practice is unfair, the Commission may consider 
     established public policies as evidence to be considered, 
     with all other evidence. Such public policy considerations 
     may not serve as a primary basis for such determination.'' 
     The amendment is derived from the 1980 policy statement of 
     the Commission regarding unfairness, the Commission's 1982 
     letter on the same subject, and from subsequent 
     interpretations of and applications to specific unfairness 
     proceedings by the Commission.


                       11. COMMERCIAL ADVERTISING

     Senate amendment
       Provides for permanent prohibition on the FTC's authority 
     to initiate rulemakings regarding commercial advertising on 
     the basis that such advertising constitutes an unfair act or 
     practice.
     House bill
       No provision.
     Conference agreement
       Senate recedes.


                            12. PROCEEDINGS

     Senate amendment
       Amends section 13 of the Act regarding proceedings brought 
     by the FTC.
     House bill
       No provision.
     Conference agreement
       House recedes with technical changes.


                 13. REPORT ON RESALE PRICE MAINTENANCE

     Senate amendment
       Requires the FTC to report to Congressional committees on 
     enforcement activities relating to resale price maintenance.
     House bill
       No provision.
     Conference agreement
       Senate recedes.


                    14. predatory pricing practices

     Senate amendment
       Requires FTC to report to Congressional committees on its 
     enforcement activities relating to predatory pricing 
     practices.
     House bill
       No provision.
     Conference agreement
       Senate recedes.


                     15. intervention by commission

     House bill
       Prohibits the expenditure of funds by the FTC, during the 
     authorized period of time, for the purpose of submitting 
     statements to, appearing before, or intervening in the 
     proceedings of, any Federal or State agency unless the FTC 
     advises the Congressional committees of jurisdiction.
     Senate amendment
       Similar provision.
     Conference agreement
       House recedes to Senate amendment. The conferees agree that 
     the provision adopted requires the FTC immediately to notify 
     the Congressional committees of jurisdiction when the FTC has 
     agreed to take action in any proceedings described in the 
     provision.


                     16. resource allocation study

     Senate amendment
       Requires the FTC to study the manner in which its resources 
     are allocated and to report to Congressional committees of 
     jurisdiction within 6 months.
     House bill
       No provision.
     Conference agreement
       House recedes to Senate amendment.


                     17. federal-state cooperation

     Senate amendment
       Requires the FTC to report to Congressional committees of 
     jurisdiction on areas that are most appropriately enforced by 
     the FTC and those that States might enforce more effectively.
     House bill
       No provision.
     Conference agreement
       House recedes.


                    18. credit repair organizations

     Senate amendment
       Prohibits credit repair organizations from accepting fees 
     or payments from consumers until the promised services are 
     completed.
     House bill
       No provision.
     Conference agreement
       Senate recedes.


                  19. authorization of appropriations

     House bill
       Authorizes appropriations to the FTC as follows: $88 
     million for fiscal year 1993; $92 million for fiscal year 
     1994; and $99 million for fiscal year 1995.
     Senate amendment
       Authorizes appropriations to the FTC as follows: $88 
     million for fiscal year 1994; $92 million for fiscal year 
     1995: and $95 million for fiscal year 1996. Additional sums 
     as may be necessary are authorized for increases in salaries, 
     pay, and other employee benefits provided by law.
     Conference agreement
       Authorizes appropriations to the FTC as follows: $92.7 
     million for fiscal year 1994; $99 million for fiscal year 
     1995: and $102 million for fiscal year 1996.


                           20. effective date

     House bill
       Sets forth effective dates for various provisions of the 
     bill.
     Senate amendment
       Similar provision.
     Conference agreement
       Provides that provisions of the bill will take effect upon 
     date of enactment except as otherwise set forth in 
     subsections (b), (c), (d), and (e).

     John D. Dingell,
     Al Swift,
     T.J. Manton,
     Carlos J. Moorhead,
     M.G. Oxley,
                                Managers on the Part of the House.

     Ernest F. Hollings,
     Wendell Ford,
     Richard H. Bryan,
     Jack Danforth,
     Slade Gorton,
     Managers on the Part of the Senate.

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