    [United States Government Manual]
    [May 30, 1997]
    [Pages 559-565]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    FEDERAL TRADE COMMISSION

    Pennsylvania Avenue at Sixth Street NW., Washington, DC 20580
    Phone, 202-326-2222

    Chairman                                          Robert Pitofsky
        Executive Assistant                           James C. Hamill
    Commissioners                                     Mary L. Azcuenaga,
                                                              Roscoe B.
                                                              Starek III,
                                                              Janet D.
                                                              Steiger,
                                                              Christine A.
                                                              Varney
    Executive Director                                Rosemarie Straight,
                                                              Acting
        Deputy Executive Director for                 Rosemarie Straight
                Management
        Chief Information Officer                     Alan Proctor
    Director, Bureau of Competition                   William J. Baer
        Senior Deputy Director                        George S. Cary
        Deputy Director                               Mark D. Whitener
    Director, Bureau of Consumer Protection           Jodie Bernstein
        Deputy Directors                              Lydia B. Parnes,
                                                              Teresa M.
                                                              Schwartz
    Director, Bureau of Economics                     Jonathan B. Baker
    General Counsel                                   Stephen Calkins
        Deputy General Counsel                        Jay C. Shaffer
    Director, Office of Congressional Relations       Lorraine C. Miller
    Director, Office of Public Affairs                Victoria A. Streitfeld

    [[Page 560]]

    Director, Office of Policy Planning               Susan S. DeSanti
    Secretary of the Commission                       Donald S. Clark
    Chief Administrative Law Judge                    Lewis F. Parker
    Inspector General                                 Frederick J. Zirkel

    [For the Federal Trade Commission statement of organization, see the
            Code of Federal Regulations, Title 16, Part 0]

    ------------------------------------------------------------------------

    The objective of the Federal Trade Commission is to maintain competitive
    enterprise as the keystone of the American economic system, and to
    prevent the free enterprise system from being fettered by monopoly or
    restraints on trade or corrupted by unfair or deceptive trade practices.
    The Commission is charged with keeping competition both free and fair.

    The purpose of the Federal Trade Commission is expressed in the Federal
    Trade Commission Act (15 U.S.C. 41-58) and the Clayton Act (15 U.S.C.
    12), both passed in 1914 and both successively amended in the years
    since. The Federal Trade Commission Act prohibits the use in or
    affecting commerce of ``unfair methods of competition'' and ``unfair or
    deceptive acts or practices.'' The Clayton Act outlaws specific
    practices recognized as instruments of monopoly. As an independent
    administrative agency, acting quasi-judicially and quasi-legislatively,
    the Commission was established to deal with trade practices on a
    continuing and corrective basis. It has no authority to punish; its
    function is to prevent, through cease-and-desist orders and other means,
    those practices condemned by Federal trade regulation laws. However,
    court-ordered civil penalties up to $10,000 may be obtained for each
    violation of a Commission order or trade regulation rule.
        Congress has delegated a variety of duties to the Commission under
    such statutes as the Wheeler-Lea Act, the Clayton Act, the Consumer
    Credit Protection Act, the Robinson-Patman Act, the Magnuson-Moss
    Warranty-Federal Trade Commission Improvement Act, the Federal Trade
    Commission Improvements Act of 1980, the Smokeless Tobacco Health
    Education Act of 1986, the Telephone Disclosure and Dispute Resolution
    Act, the Federal Trade Commission Improvements Act of 1994, the
    International Antitrust Enforcement Assistance Act of 1994, the
    Telemarketing and Consumer Fraud and Abuse Prevention Act, and the
    Federal Trade Commission Act Amendments of 1994.
        The Commission is composed of five members. Each member is appointed
    by the President, with the advice and consent of the Senate, for a term
    of 7 years. Not more than three of the Commissioners may be members of
    the same political party. One Commissioner is designated by the
    President as Chairman of the Commission and is responsible for its
    administrative management.

    Activities

    The Commission's principal functions are to:
        --promote competition in or affecting commerce through the
    prevention of general trade restraints such as price-fixing agreements,
    boycotts, illegal combinations of competitors, and other unfair methods
    of competition;
        --safeguard the public by preventing the dissemination of false or
    deceptive advertisements of consumer products and services, as well as
    other unfair or deceptive practices;
        --prevent pricing discrimination; exclusive-dealing and tying
    arrangements; corporate mergers, acquisitions, or joint ventures, when
    such practices or arrangements may substantially lessen competition or
    tend to create a monopoly; interlocking directorates or officers'
    positions that may restrain competition; the payment or receipt of
    illegal brokerage; and discrimination among competing customers in the
    furnishing of or the

    [[Page 561]]

    [[Page 562]]

    payment for services or facilities used to promote the resale of a
    product;
        --stop various fraudulent telemarketing schemes and protect
    consumers from abusive and deceptive telephone sales tactics;
        --ensure truthful labeling of textile, wool, and fur products;
        --supervise the registration and operation of associations of
    American exporters engaged in export trade;
        --require creditors to disclose in writing certain cost information,
    such as the annual percentage rate, before consumers enter into credit
    transactions, as required by the Truth in Lending Act;
        --educate consumers and businesses about their rights and
    responsibilities under FTC rules and regulations;
        --protect consumers against circulation of inaccurate or obsolete
    credit reports and ensure that credit bureaus, consumer reporting
    agencies, credit grantors, and bill collectors exercise their
    responsibilities in a manner that is fair and equitable and in
    conformity with the Fair Credit Reporting Act, the Fair Credit Billing
    Act, the Equal Credit Opportunity Act, and the Fair Debt Collection
    Practices Act; and
        --gather factual data concerning economic and business conditions
    and make it available to the Congress, the President, and the public.

    Enforcement  The Commission's law enforcement work falls into two
    general categories: actions to foster voluntary compliance with the law,
    and formal administrative or Federal court litigation leading to
    mandatory orders against offenders.
        For the most part, compliance with the law is obtained through
    voluntary and cooperative action by way of staff advice, which is not
    binding on the Commission; advisory opinions by the Commission; and
    through issuance of guides and policy statements delineating legal
    requirements as to particular business practices.
        Formal litigation is instituted either by issuance of an
    administrative complaint or by filing a Federal district court complaint
    charging a person, partnership, or corporation with violating one or
    more of the statutes administered by the Commission. Cases may be
    settled by consent orders. If the charges in an administrative matter
    are not contested, or if the charges are found to be true after an
    administrative hearing in a contested case, an order may be issued
    requiring discontinuance of the unlawful practices. Such orders may
    include other related requirements. Federal district court charges are
    resolved through either settlements or court-ordered injunctive or other
    equitable relief.

    Public Input  Cases before the Commission may originate through
    complaint by a consumer or a competitor; the Congress; or from Federal,
    State, or municipal agencies. Also, the Commission itself may initiate
    an investigation into possible violation of the laws it administers. No
    formality is required in submitting a complaint. A letter giving the
    facts in detail, accompanied by all supporting evidence in possession of
    the complaining party, is sufficient. It is the general policy of the
    Commission not to disclose the identity of any complainant, except as
    permitted by law or Commission rules.
        Upon receipt of a complaint, various criteria are applied in
    determining whether the particular matter should be investigated. Within
    the limits of available resources, investigations are initiated that are
    considered to best support the Commission's goals of maintaining
    competition and protecting consumers.
        Under the Federal Trade Commission Act, an order to cease and desist
    or to take other corrective action--such as affirmative disclosure,
    divestiture, or restitution--becomes final 60 days after date of service
    upon the respondent, unless within that period the respondent petitions
    an appropriate United States court of appeals to review the order, and
    also petitions the Commission to stay the order pending review. If the
    Commission does not stay the order, the respondent may seek a stay from
    the reviewing appeals court. The appeals court has the power to affirm,
    modify, or set the order aside. If the appeals court upholds the
    Commission's order, the respondent may seek certiorari to the Supreme
    Court and ask that the appeals court or the

    [[Page 563]]

    Supreme Court continue to stay the order. Violations of a cease-and-
    desist order, after it becomes effective, subject the offender to suit
    by the Government in a United States district court for the recovery of
    a civil penalty of not more than $11,000 for each violation and, where
    the violation continues, each day of its continuance is a separate
    violation.
        In addition to, or in lieu of, the administrative proceeding
    initiated by a formal complaint, the Commission may, in some cases,
    request that a United States district court issue a preliminary or
    permanent injunction to halt the use of allegedly unfair or deceptive
    practices, to prevent an anticompetitive merger from taking place, or to
    prevent violations of any statute enforced by the Commission.

    Compliance Activities  Through systematic and continuous review, the
    Commission obtains and maintains compliance with its cease-and-desist
    orders. All respondents against whom such orders have been issued are
    required to file reports with the Commission to substantiate their
    compliance. In the event compliance is not obtained, or if the order is
    subsequently violated, civil penalty proceedings may be instituted.

    Cooperative Procedures  In carrying out the statutory directive to
    ``prevent'' the use in or affecting commerce of unfair practices, the
    Commission makes extensive use of voluntary and cooperative procedures.
    Through these procedures business and industry may obtain authoritative
    guidance and a substantial measure of certainty as to what they may do
    under the laws administered by the Commission.
        The Commission issues industry guides, administrative
    interpretations in laymen's language of laws administered by the
    Commission for the guidance of the public in conducting its affairs in
    conformity with legal requirements. Guides provide the basis for
    voluntary and simultaneous abandonment of unlawful practices by members
    of a particular industry or industry in general. Failure to comply with
    the guides may result in corrective action by the Commission under
    applicable statutory provisions.

    Consumer Protection  Consumer protection is one of the two main missions
    of the Commission. The Commission works to increase the usefulness of
    advertising by ensuring it is truthful and not misleading; reduce
    instances of fraudulent, deceptive, or unfair marketing practices;
    prevent creditors from using unlawful practices when granting credit,
    maintaining credit information, collecting debts, and operating credit
    systems; and educate the public about Commission activities. The
    Commission initiates investigations in many areas of concern to
    consumers, including health and nutrition claims in advertising;
    environmental advertising and labeling; general advertising issues;
    health care, telemarketing, business opportunity, and franchise and
    investment fraud; mortgage lending and discrimination; enforcement of
    Commission orders; and enforcement of credit statutes and trade
    regulation rules.
        The Commission has issued and enforces many trade regulation rules
    important to consumers. The Telemarketing Sales Rule requires
    telemarketers to make certain disclosures and prohibits certain
    misrepresentations. The Mail/Telephone Order Merchandise Rule requires
    companies to ship merchandise that consumers order by mail or telephone
    within a certain time, and sets out requirements for notifying consumers
    about delays and offering them the option of agreeing to the delays or
    canceling their orders. The Care Labeling Rule requires manufacturers
    and importers of textile clothing and fabrics for home sewing to attach
    care instructions. The Funeral Rule requires that price and other
    specific information regarding funeral arrangements be made available to
    consumers to help them make informed choices and pay only for services
    they select. The Franchise Rule requires the seller to provide each
    prospective franchisee with a basic disclosure document containing
    detailed information about the nature of its business and terms of the
    proposed franchise relationship. The Used Car Rule requires that dealers
    display a

    [[Page 564]]

    buyers guide containing warranty information on the window of each
    vehicle offered for sale to consumers. Under the Cooling-Off Rule,
    consumers can cancel purchases of $25 or more made door-to-door, or at
    places other than the seller's usual place of business, within 3
    business days of purchase.

    Maintaining Competition (Antitrust)  The second major mission of the
    Commission is to encourage competitive forces in the American economy.
    Under the Federal Trade Commission Act, the Commission seeks to prevent
    unfair practices that may keep one company from competing with others.
    Under the Federal Trade Commission Act and the Clayton Act, the
    Commission attempts to prevent mergers of companies if the result may be
    to lessen competition. Under some circumstances, companies planning to
    merge must first give notice to the Commission and the Department of
    Justice's Antitrust Division and provide certain information concerning
    the operations of the companies involved.
        The Commission also enforces the provisions of the Robinson-Patman
    Act, a part of the Clayton Act prohibiting companies from discriminating
    among other companies that are its customers in terms of price or other
    services provided.

    Economic Factfinding  The Commission makes economic studies of
    conditions and problems affecting competition in the economy. Reports of
    this nature may be used to inform legislative proposals, as part of a
    rulemaking record, in response to requests of the Congress and statutory
    directions, or for the information and guidance of the Commission and
    the executive branch of the Government as well as the public. The
    reports have provided the basis for significant legislation and, by
    spotlighting poor economic or regulatory performance, they have also led
    to voluntary changes in the conduct of business, with resulting benefits
    to the public.

    Competition and Consumer Advocacy  To promote competition, consumer
    protection, and the efficient allocation of resources, the Commission
    has an ongoing program designed to advocate the consumer interest in a
    competitive marketplace by encouraging courts, legislatures, and
    government administrative bodies to consider efficiency and consumer
    welfare as important elements in their deliberations.
        The Commission uses these opportunities to support procompetitive
    means of regulating the Nation's economy, including the elimination of
    anticompetitive restrictions that reduce the welfare of consumers and
    the implementation of regulatory programs that protect the public and
    preserve as much as possible the discipline of competitive markets. The
    competition and consumer advocacy program relies on persuasion rather
    than coercion.

                                       Regional Offices--Federal Trade Commission
    ----------------------------------------------------------------------------------------------------------------
                    Region                                     Address                              Director
    ----------------------------------------------------------------------------------------------------------------
    Atlanta, GA--AL, FL, GA, MS, NC, SC,    Suite 5M35, 60 Forsyth St. SW., 30303          Anthony E. DiResta
     TN, VA
    Boston, MA--CT, ME, MA, NH, RI, VT      Suite 810, 101 Merrimac St., 02114-4719        Phoebe D. Morse
    Chicago, IL--IL, IN, IO, KY, MN, MO,    Suite 1860, 55 E. Monroe St., 60603            C. Steven Baker
     WI
    Cleveland, OH--DE, DC, MD, MI, OH, PA,  Suite 200, 1111 Superior Ave., 44114           John M. Mendenhall,
     WV                                                                                     Acting
    Dallas, TX--AR, LA, NM, OK, TX          Suite 2150, 1999 Bryan St., 75201-6808         Thomas B. Carter
    Denver, CO--CO, KS, MT, ND, NE, SD,     Suite 1523, 1961 Stout St., 80294-0101         Janice L. Carter, Acting
     UT, WY
    Los Angeles, CA--AZ, southern CA        Suite 13209, 11000 Wilshire Blvd., 90024       Ann I. Jones
    New York--NJ, NY                        Suite 1300, 150 William St., 10038             Michael J. Bloom
    San Francisco, CA--Northern CA, HI, NV  Suite 570, 901 Market St., 94103               Jeffrey A. Klurfeld
    Seattle, WA--AK, ID, OR, WA             2806 Federal Bldg., 915 2d Ave., 98174         Charles A. Harwood
    ----------------------------------------------------------------------------------------------------------------

    Sources of Information

    Contracts and Procurement  Persons seeking to do business with the
    Federal Trade Commission should contact the Division of Procurement and
    General Services, Federal Trade Commission, Washington, DC 20580. Phone,
    202-326-2275.
    Electronic Access  The Commission consumer and business education

    [[Page 565]]

    publications are available electronically through the Internet, at
    http://www.ftc.gov/.

    Employment  Civil service registers are used in filling positions for
    economists, accountants, investigators, and other professional,
    administrative, and clerical personnel. The Federal Trade Commission
    employs a sizable number of attorneys under the excepted appointment
    procedure. All employment inquiries should be directed to the Director
    of Personnel, Federal Trade Commission, Washington, DC 20580. Phone,
    202-326-2022.
    General Inquiries  Persons desiring information on consumer protection,
    restraint of trade questions, or to register a complaint, should contact
    the Federal Trade Commission or the nearest regional office.

    Publications  A copy of Federal Trade Commission--``Best Sellers,''
    which lists publications of interest to the general public, is available
    free upon request from the Public Reference Section, Federal Trade
    Commission, Washington, DC 20580. Phone, 202-326-2222. TTY, 202-326-
    2502.

    For further information, contact the Director, Office of Public Affairs,
    Federal Trade Commission, Pennsylvania Avenue at Sixth Street NW.,
    Washington, DC 20580. Phone, 202-326-2180.

    ------------------------------------------------------------------------