    [United States Government Manual]
    [June 02, 1998]
    [Pages 565-571]
    [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. Internet, http://www.ftc.gov/.
    Chairman                                          Robert Pitofsky
        Executive Assistant                           James C. Hamill
    Commissioners                                     Sheila F. Anthony,
                                                              Mary L.
                                                              Azcuenaga,
                                                              Orson Swindle,
                                                              Mozelle W.
                                                              Thompson
    Executive Director                                Rosemarie A. Straight
        Counsel to the Executive Director             Judith Bailey
        Chief Information Officer                     Keith Golden, Acting
    Director, Bureau of Competition                   William J. Baer
        Senior Deputy Director                        Richard Parker
        Deputy Director                               Willard K. Tom
    Director, Bureau of Consumer Protection           Jodie Bernstein
        Deputy Directors                              Lydia B. Parnes
                                                      Hugh Stevenson, Acting
    Director, Bureau of Economics                     Jonathan B. Baker
    General Counsel                                   Debra A. Valentine
        Deputy General Counsel                        (vacancy)
    Director, Office of Congressional Relations       Lorraine C. Miller
    Director, Office of Public Affairs                Victoria A. Streitfeld
    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,

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    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 $11,000 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 by
    sellers in the furnishing of or the 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;
        --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;
        --educate consumers and businesses about their rights and
    responsibilities under FTC rules and regulations; 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.

    [[Page 568]]

        For the most part, compliance with the law is obtained through
    voluntary and cooperative action by private companies in response to
    nonbinding staff advice, formal advisory opinions by the Commission, and
    guides and policy statements delineating legal requirements as to
    particular business practices.
        Formal litigation is instituted either by issuing 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.
    Investigations  Investigations by 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 violations 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 issued after an
    administrative proceeding that requires the respondent 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
    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

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    substantial measure of certainty as to what they may do under the laws
    administered by the Commission.
        The Commission issues industry guides, which are administrative
    interpretations in laymen's language of laws administered by the
    Commission for the guidance of the public in conforming with legal
    requirements. Guides provide the basis for voluntary and simultaneous
    abandonment of unlawful practices by members of a particular industry or
    by 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 that 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 buyers guide containing warranty information on 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. Such
    reports 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

    [[Page 570]]

    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        Andrew D. Caverly, Acting
    Chicago, IL--IA, IL, IN, KY, MN, MO,    Suite 1860, 55 E. Monroe St., 60603-5701       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              Thomas B. Carter
    Denver, CO--CO, KS, MT, ND, NE, SD,     Suite 1523, 1961 Stout St., 80294-0101         Janice L. Charter, Acting
     UT, WY
    Los Angeles, CA--AZ, southern CA        Suite 700, 10877 Wilshire Blvd., 90024         Gregory W. Staples,
                                                                                            Acting
    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             Suite 2896, 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 Assistant CFO for
    Acquisitions, Federal Trade Commission, Washington, DC 20580. Phone,
    202-326-2258. Fax, 202-326-3529. Internet, http://www.ftc.gov/ftc/
    procurement/procure.htm.
    Electronic Access  Commission consumer and business education
    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 Human Resource Management, Federal Trade Commission, Washington, DC
    20580. Phone, 202-326-2022. Fax, 202-326-2328.
    General Inquiries  Persons desiring information on consumer protection,
    or 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.

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    For further information, contact the Office of Public Affairs, Federal
    Trade Commission, Pennsylvania Avenue at Sixth Street NW., Washington,
    DC 20580. Phone, 202-326-2180. Fax, 202-326-3676. Internet, http://
    www.ftc.gov/.

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