§ 57a. — Unfair or deceptive acts or practices rulemaking proceedings.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC57a]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2--FEDERAL TRADE COMMISSION; PROMOTION OF EXPORT TRADE AND
PREVENTION OF UNFAIR METHODS OF COMPETITION
SUBCHAPTER I--FEDERAL TRADE COMMISSION
Sec. 57a. Unfair or deceptive acts or practices rulemaking
proceedings
(a) Authority of Commission to prescribe rules and general statements of
policy
(1) Except as provided in subsection (h) of this section, the
Commission may prescribe--
(A) interpretive rules and general statements of policy with
respect to unfair or deceptive acts or practices in or affecting
commerce (within the meaning of section 45(a)(1) of this title), and
(B) rules which define with specificity acts or practices which
are unfair or deceptive acts or practices in or affecting commerce
(within the meaning of section 45(a)(1) of this title), except that
the Commission shall not develop or promulgate any trade rule or
regulation with regard to the regulation of the development and
utilization of the standards and certification activities pursuant
to this section. Rules under this subparagraph may include
requirements prescribed for the purpose of preventing such acts or
practices.
(2) The Commission shall have no authority under this subchapter,
other than its authority under this section, to prescribe any rule with
respect to unfair or deceptive acts or practices in or affecting
commerce (within the meaning of section 45(a)(1) of this title). The
preceding sentence shall not affect any authority of the Commission to
prescribe rules (including interpretive rules), and general statements
of policy, with respect to unfair methods of competition in or affecting
commerce.
(b) Procedures applicable
(1) When prescribing a rule under subsection (a)(1)(B) of this
section, the Commission shall proceed in accordance with section 553 of
title 5 (without regard to any reference in such section to sections 556
and 557 of such title), and shall also (A) publish a notice of proposed
rulemaking stating with particularity the text of the rule, including
any alternatives, which the Commission proposes to promulgate, and the
reason for the proposed rule; (B) allow interested persons to submit
written data, views, and arguments, and make all such submissions
publicly available; (C) provide an opportunity for an informal hearing
in accordance with subsection (c) of this section; and (D) promulgate,
if appropriate, a final rule based on the matter in the rulemaking
record (as defined in subsection (e)(1)(B) of this section), together
with a statement of basis and purpose.
(2)(A) Prior to the publication of any notice of proposed rulemaking
pursuant to paragraph (1)(A), the Commission shall publish an advance
notice of proposed rulemaking in the Federal Register. Such advance
notice shall--
(i) contain a brief description of the area of inquiry under
consideration, the objectives which the Commission seeks to achieve,
and possible regulatory alternatives under consideration by the
Commission; and
(ii) invite the response of interested parties with respect to
such proposed rulemaking, including any suggestions or alternative
methods for achieving such objectives.
(B) The Commission shall submit such advance notice of proposed
rulemaking to the Committee on Commerce, Science, and Transportation of
the Senate and to the Committee on Energy and Commerce of the House of
Representatives. The Commission may use such additional mechanisms as
the Commission considers useful to obtain suggestions regarding the
content of the area of inquiry before the publication of a general
notice of proposed rulemaking under paragraph (1)(A).
(C) The Commission shall, 30 days before the publication of a notice
of proposed rulemaking pursuant to paragraph (1)(A), submit such notice
to the Committee on Commerce, Science, and Transportation of the Senate
and to the Committee on Energy and Commerce of the House of
Representatives.
(3) The Commission shall issue a notice of proposed rulemaking
pursuant to paragraph (1)(A) only where it has reason to believe that
the unfair or deceptive acts or practices which are the subject of the
proposed rulemaking are prevalent. The Commission shall make a
determination that unfair or deceptive acts or practices are prevalent
under this paragraph only if--
(A) it has issued cease and desist orders regarding such acts or
practices, or
(B) any other information available to the Commission indicates
a widespread pattern of unfair or deceptive acts or practices.
(c) Informal hearing procedure
The Commission shall conduct any informal hearings required by
subsection (b)(1)(C) of this section in accordance with the following
procedure:
(1)(A) The Commission shall provide for the conduct of
proceedings under this subsection by hearing officers who shall
perform their functions in accordance with the requirements of this
subsection.
(B) The officer who presides over the rulemaking proceedings
shall be responsible to a chief presiding officer who shall not be
responsible to any other officer or employee of the Commission. The
officer who presides over the rulemaking proceeding shall make a
recommended decision based upon the findings and conclusions of such
officer as to all relevant and material evidence, except that such
recommended decision may be made by another officer if the officer
who presided over the proceeding is no longer available to the
Commission.
(C) Except as required for the disposition of ex parte matters
as authorized by law, no presiding officer shall consult any person
or party with respect to any fact in issue unless such officer gives
notice and opportunity for all parties to participate.
(2) Subject to paragraph (3) of this subsection, an interested
person is entitled--
(A) to present his position orally or by documentary
submission (or both), and
(B) if the Commission determines that there are disputed
issues of material fact it is necessary to resolve, to present
such rebuttal submissions and to conduct (or have conducted
under paragraph (3)(B)) such cross-examination of persons as the
Commission determines (i) to be appropriate, and (ii) to be
required for a full and true disclosure with respect to such
issues.
(3) The Commission may prescribe such rules and make such
rulings concerning proceedings in such hearings as may tend to avoid
unnecessary costs or delay. Such rules or rulings may include (A)
imposition of reasonable time limits on each interested person's
oral presentations, and (B) requirements that any cross-examination
to which a person may be entitled under paragraph (2) be conducted
by the Commission on behalf of that person in such manner as the
Commission determines (i) to be appropriate, and (ii) to be required
for a full and true disclosure with respect to disputed issues of
material fact.
(4)(A) Except as provided in subparagraph (B), if a group of
persons each of whom under paragraphs (2) and (3) would be entitled
to conduct (or have conducted) cross-examination and who are
determined by the Commission to have the same or similar interests
in the proceeding cannot agree upon a single representative of such
interests for purposes of cross-examination, the Commission may make
rules and rulings (i) limiting the representation of such interest,
for such purposes, and (ii) governing the manner in which such
cross-examination shall be limited.
(B) When any person who is a member of a group with respect to
which the Commission has made a determination under subparagraph (A)
is unable to agree upon group representation with the other members
of the group, then such person shall not be denied under the
authority of subparagraph (A) the opportunity to conduct (or have
conducted) cross-examination as to issues affecting his particular
interests if (i) he satisfies the Commission that he has made a
reasonable and good faith effort to reach agreement upon group
representation with the other members of the group and (ii) the
Commission determines that there are substantial and relevant issues
which are not adequately presented by the group representative.
(5) A verbatim transcript shall be taken of any oral
presentation, and cross-examination, in an informal hearing to which
this subsection applies. Such transcript shall be available to the
public.
(d) Statement of basis and purpose accompanying rule; ``Commission''
defined; judicial review of amendment or repeal of rule;
violation of rule
(1) The Commission's statement of basis and purpose to accompany a
rule promulgated under subsection (a)(1)(B) of this section shall
include (A) a statement as to the prevalence of the acts or practices
treated by the rule; (B) a statement as to the manner and context in
which such acts or practices are unfair or deceptive; and (C) a
statement as to the economic effect of the rule, taking into account the
effect on small business and consumers.
(2)(A) The term ``Commission'' as used in this subsection and
subsections (b) and (c) of this section includes any person authorized
to act in behalf of the Commission in any part of the rulemaking
proceeding.
(B) A substantive amendment to, or repeal of, a rule promulgated
under subsection (a)(1)(B) of this section shall be prescribed, and
subject to judicial review, in the same manner as a rule prescribed
under such subsection. An exemption under subsection (g) of this section
shall not be treated as an amendment or repeal of a rule.
(3) When any rule under subsection (a)(1)(B) of this section takes
effect a subsequent violation thereof shall constitute an unfair or
deceptive act or practice in violation of section 45(a)(1) of this
title, unless the Commission otherwise expressly provides in such rule.
(e) Judicial review; petition; jurisdiction and venue; rulemaking
record; additional submissions and presentations; scope of
review and relief; review by Supreme Court; additional remedies
(1)(A) Not later than 60 days after a rule is promulgated under
subsection (a)(1)(B) of this section by the Commission, any interested
person (including a consumer or consumer organization) may file a
petition, in the United States Court of Appeals for the District of
Columbia circuit or for the circuit in which such person resides or has
his principal place of business, for judicial review of such rule.
Copies of the petition shall be forthwith transmitted by the clerk of
the court to the Commission or other officer designated by it for that
purpose. The provisions of section 2112 of title 28 shall apply to the
filing of the rulemaking record of proceedings on which the Commission
based its rule and to the transfer of proceedings in the courts of
appeals.
(B) For purposes of this section, the term ``rulemaking record''
means the rule, its statement of basis and purpose, the transcript
required by subsection (c)(5) of this section, any written submissions,
and any other information which the Commission considers relevant to
such rule.
(2) If the petitioner or the Commission applies to the court for
leave to make additional oral submissions or written presentations and
shows to the satisfaction of the court that such submissions and
presentations would be material and that there were reasonable grounds
for the submissions and failure to make such submissions and
presentations in the proceeding before the Commission, the court may
order the Commission to provide additional opportunity to make such
submissions and presentations. The Commission may modify or set aside
its rule or make a new rule by reason of the additional submissions and
presentations and shall file such modified or new rule, and the rule's
statement of basis of purpose, with the return of such submissions and
presentations. The court shall thereafter review such new or modified
rule.
(3) Upon the filing of the petition under paragraph (1) of this
subsection, the court shall have jurisdiction to review the rule in
accordance with chapter 7 of title 5 and to grant appropriate relief,
including interim relief, as provided in such chapter. The court shall
hold unlawful and set aside the rule on any ground specified in
subparagraphs (A), (B), (C), or (D) of section 706(2) of title 5 (taking
due account of the rule of prejudicial error), or if--
(A) the court finds that the Commission's action is not
supported by substantial evidence in the rulemaking record (as
defined in paragraph (1)(B) of this subsection) taken as a whole, or
(B) the court finds that--
(i) a Commission determination under subsection (c) of this
section that the petitioner is not entitled to conduct cross-
examination or make rebuttal submissions, or
(ii) a Commission rule or ruling under subsection (c) of
this section limiting the petitioner's cross-examination or
rebuttal submissions,
has precluded disclosure of disputed material facts which was
necessary for fair determination by the Commission of the rulemaking
proceeding taken as a whole.
The term ``evidence'', as used in this paragraph, means any matter in
the rulemaking record.
(4) The judgment of the court affirming or setting aside, in whole
or in part, any such rule shall be final, subject to review by the
Supreme Court of the United States upon certiorari or certification, as
provided in section 1254 of title 28.
(5)(A) Remedies under the preceding paragraphs of this subsection
are in addition to and not in lieu of any other remedies provided by
law.
(B) The United States Courts of Appeal shall have exclusive
jurisdiction of any action to obtain judicial review (other than in an
enforcement proceeding) of a rule prescribed under subsection (a)(1)(B)
of this section, if any district court of the United States would have
had jurisdiction of such action but for this subparagraph. Any such
action shall be brought in the United States Court of Appeals for the
District of Columbia circuit, or for any circuit which includes a
judicial district in which the action could have been brought but for
this subparagraph.
(C) A determination, rule, or ruling of the Commission described in
paragraph (3)(B)(i) or (ii) may be reviewed only in a proceeding under
this subsection and only in accordance with paragraph (3)(B). Section
706(2)(E) of title 5 shall not apply to any rule promulgated under
subsection (a)(1)(B) of this section. The contents and adequacy of any
statement required by subsection (b)(1)(D) of this section shall not be
subject to judicial review in any respect.
(f) Unfair or deceptive acts or practices by banks, savings and loan
institutions, or Federal credit unions; promulgation of
regulations by Board of Governors of Federal Reserve System,
Federal Home Loan Bank Board, and National Credit Union
Administration Board; agency enforcement and compliance
proceedings; violations; power of other Federal agencies
unaffected; reporting requirements
(1) In order to prevent unfair or deceptive acts or practices in or
affecting commerce (including acts or practices which are unfair or
deceptive to consumers) by banks or savings and loan institutions
described in paragraph (3), each agency specified in paragraph (2) or
(3) of this subsection shall establish a separate division of consumer
affairs which shall receive and take appropriate action upon complaints
with respect to such acts or practices by banks or savings and loan
institutions described in paragraph (3) subject to its jurisdiction. The
Board of Governors of the Federal Reserve System (with respect to banks)
and the Federal Home Loan Bank Board (with respect to savings and loan
institutions described in paragraph (3)) and the National Credit Union
Administration Board (with respect to Federal credit unions described in
paragraph (4)) shall prescribe regulations to carry out the purposes of
this section, including regulations defining with specificity such
unfair or deceptive acts or practices, and containing requirements
prescribed for the purpose of preventing such acts or practices.
Whenever the Commission prescribes a rule under subsection (a)(1)(B) of
this section, then within 60 days after such rule takes effect each such
Board shall promulgate substantially similar regulations prohibiting
acts or practices of banks or savings and loan institutions described in
paragraph (3), or Federal credit unions described in paragraph (4), as
the case may be, which are substantially similar to those prohibited by
rules of the Commission and which impose substantially similar
requirements, unless (A) any such Board finds that such acts or
practices of banks or savings and loan institutions described in
paragraph (3), or Federal credit unions described in paragraph (4), as
the case may be, are not unfair or deceptive, or (B) the Board of
Governors of the Federal Reserve System finds that implementation of
similar regulations with respect to banks, savings and loan institutions
or Federal credit unions would seriously conflict with essential
monetary and payments systems policies of such Board, and publishes any
such finding, and the reasons therefor, in the Federal Register.
(2) Enforcement.--Compliance with regulations prescribed under this
subsection shall be enforced under section 1818 of title 12, in the case
of--
(A) national banks, banks operating under the code of law for
the District of Columbia, and Federal branches and Federal agencies
of foreign banks, by the division of consumer affairs established by
the Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than
national banks and banks operating under the code of law for the
District of Columbia), branches and agencies of foreign banks (other
than Federal branches, Federal agencies, and insured State branches
of foreign banks), commercial lending companies owned or controlled
by foreign banks, and organizations operating under section 25 or
25(a) \1\ of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et
seq.], by the division of consumer affairs established by the Board
of Governors of the Federal Reserve System; and
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\1\ See References in Text note below.
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(C) banks insured by the Federal Deposit Insurance Corporation
(other \2\ banks referred to in subparagraph (A) or (B)) and insured
State branches of foreign banks, by the division of consumer affairs
established by the Board of Directors of the Federal Deposit
Insurance Corporation.
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\2\ So in original. Probably should be ``(other than''.
(3) Compliance with regulations prescribed under this subsection
shall be enforced under section 1818 of title 12 with respect to savings
associations as defined in section 1813 of title 12.
(4) Compliance with regulations prescribed under this subsection
shall be enforced with respect to Federal credit unions under sections
1766 and 1786 of title 12.
(5) For the purpose of the exercise by any agency referred to in
paragraph (2) of its powers under any Act referred to in that paragraph,
a violation of any regulation prescribed under this subsection shall be
deemed to be a violation of a requirement imposed under that Act. In
addition to its powers under any provision of law specifically referred
to in paragraph (2), each of the agencies referred to in that paragraph
may exercise, for the purpose of enforcing compliance with any
regulation prescribed under this subsection, any other authority
conferred on it by law.
(6) The authority of the Board of Governors of the Federal Reserve
System to issue regulations under this subsection does not impair the
authority of any other agency designated in this subsection to make
rules respecting its own procedures in enforcing compliance with
regulations prescribed under this subsection.
(7) Each agency exercising authority under this subsection shall
transmit to the Congress each year a detailed report on its activities
under this paragraph during the preceding calendar year.
The terms used in this paragraph that are not defined in this subchapter
or otherwise defined in section 1813(s) of title 12 shall have the
meaning given to them in section 3101 of title 12.
(g) Exemptions and stays from application of rules; procedures
(1) Any person to whom a rule under subsection (a)(1)(B) of this
section applies may petition the Commission for an exemption from such
rule.
(2) If, on its own motion or on the basis of a petition under
paragraph (1), the Commission finds that the application of a rule
prescribed under subsection (a)(1)(B) of this section to any person or
class or \3\ persons is not necessary to prevent the unfair or deceptive
act or practice to which the rule relates, the Commission may exempt
such person or class from all or part of such rule. Section 553 of title
5 shall apply to action under this paragraph.
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\3\ So in original. Probably should be ``of''.
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(3) Neither the pendency of a proceeding under this subsection
respecting an exemption from a rule, nor the pendency of judicial
proceedings to review the Commission's action or failure to act under
this subsection, shall stay the applicability of such rule under
subsection (a)(1)(B) of this section.
(h) Restriction on rulemaking authority of Commission respecting
children's advertising proceedings pending on May 28, 1980
The Commission shall not have any authority to promulgate any rule
in the children's advertising proceeding pending on May 28, 1980, or in
any substantially similar proceeding on the basis of a determination by
the Commission that such advertising constitutes an unfair act or
practice in or affecting commerce.
(i) Meetings with outside parties
(1) For purposes of this subsection, the term ``outside party''
means any person other than (A) a Commissioner; (B) an officer or
employee of the Commission; or (C) any person who has entered into a
contract or any other agreement or arrangement with the Commission to
provide any goods or services (including consulting services) to the
Commission.
(2) Not later than 60 days after May 28, 1980, the Commission shall
publish a proposed rule, and not later than 180 days after May 28, 1980,
the Commission shall promulgate a final rule, which shall authorize the
Commission or any Commissioner to meet with any outside party concerning
any rulemaking proceeding of the Commission. Such rule shall provide
that--
(A) notice of any such meeting shall be included in any weekly
calendar prepared by the Commission; and
(B) a verbatim record or a summary of any such meeting, or of
any communication relating to any such meeting, shall be kept, made
available to the public, and included in the rulemaking record.
(j) Communications by investigative personnel with staff of Commission
concerning matters outside rulemaking record prohibited
Not later than 60 days after May 28, 1980, the Commission shall
publish a proposed rule, and not later than 180 days after May 28, 1980,
the Commission shall promulgate a final rule, which shall prohibit any
officer, employee, or agent of the Commission with any investigative
responsibility or other responsibility relating to any rulemaking
proceeding within any operating bureau of the Commission, from
communicating or causing to be communicated to any Commissioner or to
the personal staff of any Commissioner any fact which is relevant to the
merits of such proceeding and which is not on the rulemaking record of
such proceeding, unless such communication is made available to the
public and is included in the rulemaking record. The provisions of this
subsection shall not apply to any communication to the extent such
communication is required for the disposition of ex parte matters as
authorized by law.
(Sept. 26, 1914, ch. 311, Sec. 18, as added Pub. L. 93-637, title II,
Sec. 202(a), Jan. 4, 1975, 88 Stat. 2193; amended Pub. L. 96-37,
Sec. 1(c), July 23, 1979, 93 Stat. 95; Pub. L. 96-221, title VI,
Sec. 610(b), Mar. 31, 1980, 94 Stat. 174; Pub. L. 96-252, Secs. 7-11(a),
12, May 28, 1980, 94 Stat. 376-379; Pub. L. 100-86, title VII,
Sec. 715(c), Aug. 10, 1987, 101 Stat. 655; Pub. L. 101-73, title VII,
Sec. 744(t), Aug. 9, 1989, 103 Stat. 441; Pub. L. 102-242, title II,
Sec. 212(g)(2), Dec. 19, 1991, 105 Stat. 2302; Pub. L. 102-550, title
XVI, Sec. 1604(a)(9), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 103-312,
Secs. 3, 5, Aug. 26, 1994, 108 Stat. 1691, 1692; Pub. L. 103-437,
Sec. 5(a), Nov. 2, 1994, 108 Stat. 4582.)
References in Text
Section 25(a) of the Federal Reserve Act, referred to in subsec.
(f)(2)(B), which is classified to subchapter II (Sec. 611 et seq.) of
chapter 6 of Title 12, Banks and Banking, was renumbered section 25A of
that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105
Stat. 2281. Section 25 of the Federal Reserve Act is classified to
subchapter I (Sec. 601 et seq.) of chapter 6 of Title 12.
Prior Provisions
A prior section 18 of act Sept. 26, 1914, ch. 311, was renumbered
section 25 and is classified to section 58 of this title.
Amendments
1994--Subsec. (a)(1). Pub. L. 103-312, Sec. 3(b), substituted
``subsection (h)'' for ``subsection (i)'' in introductory provisions.
Subsec. (b)(2)(B), (C). Pub. L. 103-437 substituted ``Committee on
Energy and Commerce'' for ``Committee on Interstate and Foreign
Commerce''.
Subsec. (b)(3). Pub. L. 103-312, Sec. 5, added par. (3).
Subsecs. (h) to (k). Pub. L. 103-312, Sec. 3(a), redesignated
subsecs. (i) to (k) as (h) to (j), respectively, and struck out former
subsec. (h) which provided for compensation for attorney fees, expert
witness fees, etc., incurred in rulemaking proceedings, limitation on
amount, and establishment of small business outreach program.
1992--Subsec. (f)(2)(A). Pub. L. 102-550 substituted ``division''
for ``divisions''.
1991--Subsec. (f). Pub. L. 102-242, Sec. 212(g)(2)(B), inserted at
end ``The terms used in this paragraph that are not defined in this
subchapter or otherwise defined in section 1813(s) of title 12 shall
have the meaning given to them in section 3101 of title 12.''
Subsec. (f)(2). Pub. L. 102-242, Sec. 212(g)(2)(A), added par. (2)
and struck out former par. (2) which read as follows: ``Compliance with
regulations prescribed under this subsection shall be enforced under
section 1818 of title 12, in the case of--
``(A) national banks and banks operating under the code of law
for the District of Columbia, by the division of consumer affairs
established by the Comptroller of the Currency;
``(B) member banks of the Federal Reserve System (other than
banks referred to in subparagraph (A)) by the division of consumer
affairs established by the Board of Governors of the Federal Reserve
System; and
``(C) banks insured by the Federal Deposit Insurance Corporation
(other than banks referred to in subparagraph (A) or (B)), by the
division of consumer affairs established by the Board of Directors
of the Federal Deposit Insurance Corporation.''
1989--Subsec. (f)(3). Pub. L. 101-73 amended par. (3) generally.
Prior to amendment, par. (3) read as follows: ``Compliance with
regulations prescribed under this subsection shall be enforced under
section 5 of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464) with
respect to Federal savings and loan associations, section 407 of the
National Housing Act (12 U.S.C. 1730) with respect to insured
institutions, and sections 6(i) and 17 of the Federal Home Loan Bank Act
(12 U.S.C. 1426(i), 1437) with respect to savings and loan institutions
which are members of a Federal Home Loan Bank, by a division of consumer
affairs to be established by the Federal Home Loan Bank Board pursuant
to the Federal Home Loan Bank Act.''
1987--Subsec. (f)(1). Pub. L. 100-86, Sec. 715(c)(1), (2), in second
sentence inserted ``and the National Credit Union Administration Board
(with respect to Federal credit unions described in paragraph (4))'' and
in last sentence inserted ``or Federal credit unions described in
paragraph (4),'' in two places, substituted ``any such'' for ``either
such'', and inserted ``, savings and loan institutions or Federal credit
unions''.
Subsec. (f)(4) to (7). Pub. L. 100-86, Sec. 715(c)(3), added par.
(4) and redesignated former pars. (4) to (6) as (5) to (7),
respectively.
1980--Subsec. (a)(1). Pub. L. 96-252, Secs. 7, 11(a)(2), in
provisions preceding subpar. (A) substituted ``Except as provided in
subsection (i) of this section, the'' for ``The'' and in subpar. (B)
inserted ``, except that the Commission shall not develop or promulgate
any trade rule or regulation with regard to the regulation of the
development and utilization of the standards and certification
activities pursuant to this section'' after ``section 45(a)(1) of this
title)''.
Subsec. (b). Pub. L. 96-252, Secs. 8(a), 11(a)(3), designated
existing provisions as par. (1) and cls. (1) to (4) thereof as subpars.
(A) to (D) and, subpar. (A) thereof, inserted ``the text of the rule,
including any alternatives, which the Commission proposes to promulgate,
and'' after ``particularity'', and added par. (2).
Subsec. (c). Pub. L. 96-252, Sec. 8(b)(1), in provisions preceding
par. (1) substituted ``subsection (b)(1)(C)'' for ``subsection (b)(3)''.
Subsec. (c)(1). Pub. L. 96-252, Sec. 9(a)(2), added par. (1). Former
par. (1) redesignated (2).
Subsec. (c)(2). Pub. L. 96-252, Sec. 9(a)(1), (b)(1), redesignated
former par. (1) as (2), substituted ``paragraph (3)'' for ``paragraph
(2)'' and ``paragraph (3)(B)'' for ``paragraph (2)(B)''. Former par. (2)
redesignated (3).
Subsec. (c)(3). Pub. L. 96-252, Sec. 9(a)(1), (b)(2), redesignated
former par. (2) as (3) and substituted ``paragraph (2)'' for ``paragraph
(1)''. Former par. (3) redesignated (4).
Subsec. (c)(4), (5). Pub. L. 96-252, Sec. 9(a)(1), (b)(3),
redesignated former par. (3) as (4) and substituted in subpar. (A)
``paragraph (2) and (3)'' for ``paragraphs (1) and (2)''. Former par.
(4) redesignated (5).
Subsec. (e). Pub. L. 96-252, Secs. 8(b)(2), 9(c), substituted in
par. (1)(B) ``subsection (c)(5)'' for ``subsection (c)(4)'' and in par.
(5)(C) ``subsection (b)(1)(D)'' for ``subsection (b)(4)''.
Subsec. (f)(6). Pub. L. 96-221 struck out requirement that the
report be made not later than every March 15.
Subsec. (h)(2). Pub. L. 96-252, Sec. 10(b), substituted provisions
reserving an amount equal to 25 percent of the amount appropriated for
the payment of compensation under this subsection to be available solely
for the payment of compensation to persons who either would be regulated
by a proposed rule or represent persons who would be so regulated for
provisions restricting the aggregate amount of compensation paid under
this subsection in any fiscal year to all persons, who in rulemaking
proceedings in which they receive compensation, are persons who would be
regulated by the proposed rule or represent persons who would be so
regulated, to an amount not in excess of 25 percent of the aggregate
amount paid as compensation under this subsection.
Subsec. (h)(3). Pub. L. 96-252, Sec. 10(a), (e), temporarily added
par. (3) and redesignated former par. (3) as (4). See Effective and
Termination Dates of 1980 Amendments note below.
Subsec. (h)(4). Pub. L. 96-252, Sec. 10(a), (c), (e), temporarily
redesignated former par. (3) as (4) and substituted ``$750,000'' for
``$1,000,000''. See Effective and Termination Dates of 1980 Amendments
note below.
Subsec. (h)(5). Pub. L. 96-252, Sec. 10(d), (e), added par. (5) to
be redesignated (4) effective Sept. 30, 1983. See Effective and
Termination Dates of 1980 Amendments note below.
Subsec. (i). Pub. L. 96-252, Sec. 11(a)(1), added subsec. (i).
Subsecs. (j), (k). Pub. L. 96-252, Sec. 12, added subsecs. (j) and
(k).
1979--Subsec. (f)(1). Pub. L. 96-37, Sec. 1(c)(1), inserted
provisions relating to savings and loan institutions and to regulations
with respect to savings and loan institutions promulgated by Federal
Home Loan Bank Board.
Subsec. (f)(3) to (6). Pub. L. 96-37, Sec. 1(c)(2), added par. (3)
and redesignated former pars. (3) to (5) as (4) to (6), respectively.
Change of Name
Committee on Energy and Commerce of House of Representatives treated
as referring to Committee on Commerce of House of Representatives by
section 1(a) of Pub. L. 104-14, set out as a note preceding section 21
of Title 2, The Congress. Committee on Commerce of House of
Representatives changed to Committee on Energy and Commerce of House of
Representatives, and jurisdiction over matters relating to securities
and exchanges and insurance generally transferred to Committee on
Financial Services of House of Representatives by House Resolution No.
5, One Hundred Seventh Congress, Jan. 3, 2001.
Effective Date of 1994 Amendment
Amendment by section 5 of Pub. L. 103-312 applicable only to
rulemaking proceedings initiated after Aug. 26, 1994, and not to be
construed to affect in any manner a rulemaking proceeding initiated
before such date, see section 15(b) of Pub. L. 103-312, set out as a
note under section 45 of this title.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as
a note under section 191 of this title.
Effective and Termination Dates of 1980 Amendments
Section 10(e) of Pub. L. 96-252 provided that: ``The amendments made
in subsection (a) and subsection (c) [amending this section] are
repealed, effective at the end of fiscal year 1982. Effective upon such
repeal, paragraph (5) of section 18(h) of the Federal Trade Commission
Act [subsec. (h)(5) of this section], as added by subsection (d), is
redesignated as paragraph (4) of section 18(h) of such Act.''
Pub. L. 97-377, title I, Sec. 101(d), Dec. 21, 1982, 96 Stat. 1866,
1870, provided in part that: ``Notwithstanding any other provision of
law, the provisions of sections 10 [amending this section and enacting
provision set out as first paragraph of this note], 11(b) [set out as a
note below], 18 [set out as a note under section 57c of this title], 20
[set out as a note under section 57c of this title] and 21 [enacting
section 57a-1 of this title and enacting a provision set out as a note
under section 57a-1 of this title], of the Federal Trade Commission
Improvements Act of 1980 (Public Law 96-252; 94 Stat. 374) are hereby
extended until the termination date set forth in section 102(c) of H.J.
Res. 631 [Sept. 30, 1983] as enacted into law [Pub. L. 97-377],
notwithstanding subsections 10(e) [see paragraph above] and 21(i) [set
out as a note under section 57a-1 of this title] of the Federal Trade
Commission Improvements Act of 1980 (Public Law 96-252; 94 Stat. 374).''
Section 11(c) of Pub. L. 96-252 provided that: ``The amendments made
in subsection (a) [amending this section] shall take effect on the date
of the enactment of this Act [May 28, 1980]. The children's advertising
proceeding pending on the date of the enactment of this Act shall not
proceed further until such time as the Commission has complied with
section 18(b)(1)(A) of the Federal Trade Commission Act [subsec.
(b)(1)(A) of this section], as amended by subsection (a)(3) and as so
redesignated in section 8(a). In any such further proceeding, interested
parties shall be given a reasonable opportunity to present their views
in accordance with section 18(b)(1)(B) of the Federal Trade Commission
Act, as so redesignated in section 8(a) [subsec. (b)(1)(B) of this
section], section 18(b)(1)(C) of such Act, as so redesignated in section
8(a) [subsec. (b)(1)(C) of this section], and section 18(c) of such Act
(15 U.S.C. 57a(c)).''
Amendment by Pub. L. 96-252 effective May 28, 1980, see section 23
of Pub. L. 96-252, set out as an Effective Date of 1980 Amendment note
under section 45 of this title.
Amendment by Pub. L. 96-221 effective on expiration of two years and
six months after Mar. 31, 1980, with all regulations, forms and clauses
required to be prescribed to be promulgated at least one year prior to
such effective date, and allowing any creditor to comply with any
amendments, in accordance with the regulations, forms, and clauses
prescribed by the Board prior to such effective date, see section 625 of
Pub. L. 96-221, set out as an Effective Date of 1980 Amendment note
under section 1602 of this title.
Transfer of Functions
Federal Home Loan Bank Board abolished and functions transferred,
see sections 401 to 406 of Pub. L. 101-73, set out as a note under
section 1437 of Title 12, Banks and Banking.
Restriction on Use of Funds for Purpose of Initiating New Rulemaking
Proceeding
Section 11(b) of Pub. L. 96-252 prohibited the Federal Trade
Commission from using any funds authorized to be appropriated to carry
out this subchapter for fiscal year 1980, 1981, or 1982 (or 1983 as
extended by Pub. L. 97-377, title I Sec. 101(d), Dec. 21, 1982, 96 Stat.
1870), under section 57c of this title, for the purpose of initiating
any new rulemaking proceeding under this section which was intended to
result in, or which might result in, the promulgation of any rule by the
Commission which prohibited or otherwise regulated any commercial
advertising on the basis of a determination by the Commission that such
commercial advertising constituted an unfair act or practice in or
affecting commerce.
Restriction on Use of Funds Respecting Regulation of Funeral Industry;
Exception
Section 19 of Pub. L. 96-252 prohibited the Federal Trade Commission
from using any funds authorized to be appropriated to carry out this
subchapter for fiscal year 1980, 1981, or 1982, under section 57c of
this title to issue the proposed trade regulation rule which was
published in the Federal Register of Aug. 29, 1975, beginning at page
39901, and which relates to the regulation of funeral industry
practices, in final form or a substantially similar proposed or final
trade regulation rule unless the final rule met specific requirements
and the Commission followed specific procedures.
Oversight Hearings With Respect to Federal Trade Commission
Section 22 of Pub. L. 96-252 required the Consumer Subcommittee of
the Committee on Commerce, Science, and Transportation of the Senate to
conduct an oversight hearing with respect to the Federal Trade
Commission at least once during the first 6 calendar months, and at
least once during the last 6 calendar months, of each of the fiscal
years 1980, 1981, and 1982.
Applicability of Unfair or Deceptive Acts or Practices Rulemaking
Procedures to Rules Classifying Corporations Promulgated Prior to
January 4, 1975
Section 202(c) of Pub. L. 93-637 provided that:
``(1) The amendments made by subsections (a) and (b) of this section
[enacting this section and amending section 46 of this title] shall not
affect the validity of any rule which was promulgated under section 6(g)
of the Federal Trade Commission Act [section 46(g) of this title] prior
to the date of enactment of this section [Jan. 4, 1975]. Any proposed
rule under section 6(g) of such Act with respect to which presentation
of data, views, and arguments was substantially completed before such
date may be promulgated in the same manner and with the same validity as
such rule could have been promulgated had this section not been enacted.
``(2) If a rule described in paragraph (1) of this subsection is
valid and if section 18 of the Federal Trade Commission Act [this
section] would have applied to such rule had such rule been promulgated
after the date of enactment of this Act, any substantive change in the
rule after it has been promulgated shall be made in accordance with such
section 18.''
Study, Evaluation, and Report by Federal Trade Commission and
Administrative Conference of United States on Unfair or Deceptive Acts
or Practices; Rulemaking Procedures
Section 202(d) of Pub. L. 93-637, as amended by Pub. L. 94-299,
Sec. 2, May 29, 1976, 90 Stat. 588; Pub. L. 95-558, Nov. 1, 1978, 92
Stat. 2130, required the Federal Trade Commission and the Administrative
Conference of the United States, not later than June 30, 1979, to
conduct a study and submit a report to Congress on the rulemaking
procedures under section 57a of this title.
Section Referred to in Other Sections
This section is referred to in sections 44, 45, 45a, 46, 57b-3,
2309, 2823, 5711, 5721, 6102, 6502 of this title; title 12 sections 14,
247, 1827; title 49 section 32908.
