[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

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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]

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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

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[[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                                   
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                Region                                     Address                              Director        
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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       
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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

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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.

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