[Congressional Record Volume 140, Number 111 (Thursday, August 11, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 11, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
   FEDERAL TRADE COMMISSION ACT AMENDMENTS OF 1993--CONFERENCE REPORT

  Mr. FORD. Mr. President, I submit a report of the committee of 
conference on H.R. 2243 and ask for its immediate consideration.
  The PRESIDING OFFICER. The report will be stated.
  The legislative clerk read as follows:

       The committee on 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 this report, signed by all of the conferees.

  The PRESIDING OFFICER. Without objection, the Senate will proceed to 
the consideration of the conference report.
  (The conference report is printed in the House proceedings of the 
Record of July 21, 1994.)
  Mr. BRYAN. Mr. President, I am pleased to present for consideration 
the House and Senate Conference Report on legislation to reauthorize 
the Federal Trade Commission.
  As you know, Mr. President, the FTC has proceeded without a formal 
authorization for over a decade. Although bills have been introduced, 
and passed by both bodies in the last several Congresses, final passage 
of the legislation has been unsuccessful as a result of differences 
between House and Senate Members over the application of the 
Commission's unfairness rulemaking authority to commercial 
advertisements. Several Senate Commerce Committee members had expressed 
concern about the potential promulgation of overly-broad rules that 
could intrude on or prevent legitimate constitutionally protected 
commercial speech. Several House Members, on the other hand, had 
stringently opposed any limitations on the Agency's authority.
  I believe, however, Mr. President, that the House and Senate 
conferees have fashioned a reasonable and balanced resolution regarding 
this issue. This means, Mr. President, that we have been successful in 
removing what I consider to be the last remaining obstacle to the FTC's 
reauthorization. Through the passage of this legislation, the Congress 
will be re-asserting its full commitment to, and support for, one of 
the Nation's premier consumer protection agencies.
  In addition to re-authorizing the Commission, the proposed 
legislation provides the FTC with enhanced enforcement powers and 
increased funding. The bill also requires the FTC to examine how its 
resources are allocated, and to identify areas that are most 
appropriately enforced by the FTC and those that are most effectively 
enforced by the States. These reviews are designed to ensure that the 
Commission's resources are being used effectively and efficiently.
  When I assumed the chairmanship of the Consumer Subcommittee two 
Congresses ago, the reauthorization of the FTC became one of my top 
priorities. I cannot express how elated I am that we are now at the 
point of realistically achieving this goal. As I stated at the 
introduction of the Senate bill, I was optimistic that we were going to 
be successful this year. As I indicated, it has taken us many years to 
reach this point, and I hope that we can now proceed with the final 
passage of this legislation. I, therefore, urge my colleagues to 
support the adoption of the proposed conference report.
  Mr. HOLLINGS. Mr. President, I rise in support of the conference 
report on H.R. 2243, the Federal Trade Commission Act Amendments of 
1994.
  As you know, Mr. President, appropriations for the Federal Trade 
Commission [FTC] have not been formally reauthorized by the Congress 
since September 1982. Although the Senate Commerce Committee has 
reported FTC authorization legislation in each Congress since the 97th 
Congress, we have been unsuccessful in securing enactment of a 
reauthorization bill for the FTC because of disagreements over the 
application of the FTC's regulatory authority.
  The issue that has been most in dispute is the expansiveness of the 
FTC's unfairness authority regarding commercial advertisements. I, 
along with several other committee members, have had serious concerns 
about the promulgation of overly-broad rules that had the potential of 
intruding upon constitutionally protected commercial speech. I 
especially was concerned about the vagueness of the FTC's authority in 
this area, and the threat it posed to legitimate advertisements. I 
believe, however, that there has been a fair resolution of this issue 
by House and Senate conferees.
  As you know, Mr. President, the FTC is a vital agency, and one that 
is of great importance to consumers. Its primary duties are to ensure 
the operation of competitive markets and to protect consumers from 
unfair and deceptive acts and practices. Passage of the conference 
report on H.R. 2243 is necessary to reaffirm the Congress' commitment 
to the FTC and consumer protection. I commend Senators Bryan, Gorton, 
Danforth, and Ford for their work on the legislation, and ask for the 
support of all Members for the passage of this conference report.
  Mr. GORTON. Mr. President, as the Ranking Republican of the Consumer 
Subcommittee, I am pleased to join the distinguished Chairman, Senator 
Bryan, in bringing to the Senate the conference report to accompany 
H.R. 2243, the Federal Trade Commission Act Amendments of 1994. It has 
been 14 long years since the Congress last authorized this important 
agency.
  The conferees have successfully resolved a seemingly irreconcilable 
disagreement regarding the central issue of rulemakings on commercial 
advertising pursuant to the Commission's ``unfairness'' authority. 
During the 1970's, the Commission initiated several controversial 
rulemakings in this area. A considerable amount of time and resources 
were spent on these undertakings, with poor results. The Senate's 
approach was to create an absolute ban on all such rulemakings; the 
House disagreed with these restrictions.
  Fortunately, the conferees were able to reach a compromise by 
removing the absolute ban while retaining the definition of unfairness 
that the FTC has been using since it promulgated a policy statement on 
unfairness in 1980. We were also able to reach an acceptable middle 
ground on the role which public policy should play in determining 
unfairness. I believe that codification of the definition will provide 
greater stability and predictability in this area--a result that should 
be good to businesses and consumers alike.
  Further clarification of the FTC's mission can be found in this 
reauthorization's restriction on FTC regulation of agricultural 
cooperatives and marketing orders. This will avoid duplicative 
regulation, as the Department of Agriculture is already responsible for 
monitoring these activities.
  This legislation also expands the FTC's enforcement arsenal. The FTC 
will now have the power to issue civil investigative demands in 
antitrust cases. These demands will extend beyond documents alone to 
cover tangible evidence, as well. This provision substantially expands 
the Commission's ability to address consumer fraud. Similarly, we have 
included a crucial expanded venue provision. This provision is based in 
part on 28 U.S.C. Sec. 1391, the general venue provision in the U.S. 
Code. It will permit the FTC to bring defendants scattered throughout 
the country to justice in a single forum. This promotes judicial 
economy and will help the FTC to save precious resources for law 
enforcement.
  The bill also addresses a long-standing problem involving the 
Commission's cease-and-desist orders. Currently, such orders become 
final only after all appeals are exhausted. Because this can take many 
years, the appeals process has often been abused to manufacture lengthy 
delays. Under this bill, however, most cease-and-desist orders become 
final 60 days after they are issued unless a court or the Commission 
issues a stay. Of course, this solution continue to protect the right 
of defendants to challenge these orders.
  Finally, Mr. President, I would like to point out one other 
enforcement issue which is of particular interest to me as a former 
attorney general. I am pleased that this reauthorization calls for the 
FTC to report and make specific recommendations within six months on 
the subject of increasing cooperation between the FTC and the states in 
enforcing laws under FTC jurisdiction. I am aware that such cooperation 
has improved dramatically in recent years and believe that such efforts 
deserve our support.
  Mr. President, despite a period of considerable controversy during 
the 1980s, the FTC continues to implement its vital role of protecting 
consumers in the marketplace. Under Chairman Janet Steiger's fine 
leadership, the Agency has regained its strength, enhanced its 
reputation and gained the respect of many. I believe that it will carry 
out its responsibilities even more effectively after this legislation 
is enacted. I commend Senator Bryan for his leadership on this issue, 
and I urge my colleagues to support this conference report.
  The PRESIDING OFFICER. The question is on the adoption of the 
conference report.
  Without objection, the conference report is adopted.
  Mr. FORD. Mr. President, I move to reconsider the vote.
  Mr. GORTON. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

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