[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,

[[Page 566]]

[GRAPHIC] [TIFF OMITTED] T177653.045


[[Page 567]]


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

[[Page 569]]

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.

[[Page 571]]

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/.

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