[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.
------------------------------------------------------------------------