[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 2243 Enrolled Bill (ENR)]
H.R.2243
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-
four
An Act
To amend the Federal Trade Commission Act to extend the authorization
of appro- priations in such Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

33946938c7f0b961531c9a5b97a5dfb06db2e949c3420a432e06345f4ded23ac

(a) Short Title.--This Act may be cited as the ``Federal Trade
Commission Act Amendments of 1994''.
(b) Reference.--Whenever in this Act an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Federal Trade Commission Act.

e4911170fa1da33c7405861a684dec61efc86242a75e962e2f556e3a6ed92250

The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended
by redesignating sections 24 and 25 as sections 25 and 26,
respectively, and by inserting immediately after section 23 the
following new section:
``Sec. 24. (a) The Commission shall not have any authority to
conduct any study, investigation, or prosecution of any agricultural
cooperative for any conduct which, because of the provisions of the Act
entitled `An Act to authorize association of producers of agricultural
products', approved February 18, 1922 (7 U.S.C. 291 et seq., commonly
known as the Capper-Volstead Act), is not a violation of any of the
antitrust Acts or this Act.
``(b) The Commission shall not have any authority to conduct any
study or investigation of any agricultural marketing orders.''.

8e36d8b8da490957b71bb06d4ecbe087a8291e5a9edc85290084c6aeea9c85ba

(a) Repeal.--Subsection (h) of section 18 (15 U.S.C. 57a) is
repealed and subsections (i), (j), and (k) of section 18 are
redesignated as subsections (h), (i), and (j), respectively.
(b) Conforming Amendment.--Section 18(a)(1) (15 U.S.C. 57a(a)(1))
is amended by striking ``subsection (i)'' and inserting ``subsection
(h)''.

c59430110ab7198b7dcc55daaaf08118d40903b045f3d0da5628abd45c5a90c9

(a) Consent Orders.--Section 5(m)(1)(B) (15 U.S.C. 45(m)(1)(B)) is
amended by inserting ``, other than a consent order,'' immediately
after ``order'' the first time it appears.
(b) Determinations of Law.--Section 5(m)(2) (15 U.S.C. 45(m)(2)) is
amended by adding at the end the following: ``Upon request of any party
to such an action against such defendant, the court shall also review
the determination of law made by the Commission in the proceeding under
subsection (b) that the act or practice which was the subject of such
proceeding constituted an unfair or deceptive act or practice in
violation of subsection (a).''.

f1943e8a1a10e93ce58a10aec9fe3b00b7a832cf93fa7e7737282132210eee65

Section 18(b) (15 U.S.C. 57a(b)) is amended by adding at the end
the following new paragraph:
``(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.''.

46d4c9c3dbd9945c3713fc184386838d871b64f4041a5b143cd11673cad3f958

(a) Orders Subject to Petition for Review.--Section 5(g)(2) (15
U.S.C. 45(g)(2)) is amended to read as follows:
``(2) Except as to any order provision subject to paragraph
(4), upon the sixtieth day after such order is served, if a
petition for review has been duly filed; except that any such order
may be stayed, in whole or in part and subject to such conditions
as may be appropriate, by--
``(A) the Commission;
``(B) an appropriate court of appeals of the United States,
if (i) a petition for review of such order is pending in such
court, and (ii) an application for such a stay was previously
submitted to the Commission and the Commission, within the 30-
day period beginning on the date the application was received
by the Commission, either denied the application or did not
grant or deny the application; or
``(C) the Supreme Court, if an applicable petition for
certiorari is pending.''.
(b) Orders Subject to Sections 5(m)(1)(B) and 19(a)(2).--Section
5(g)(3) (15 U.S.C. 45(g)(3)) is amended to read as follows:
``(3) For purposes of subsection (m)(1)(B) and of section
19(a)(2), if a petition for review of the order of the Commission
has been filed--
``(A) upon the expiration of the time allowed for filing a
petition for certiorari, if the order of the Commission has
been affirmed or the petition for review has been dismissed by
the court of appeals and no petition for certiorari has been
duly filed;
``(B) upon the denial of a petition for certiorari, if the
order of the Commission has been affirmed or the petition for
review has been dismissed by the court of appeals; or
``(C) upon the expiration of 30 days from the date of
issuance of a mandate of the Supreme Court directing that the
order of the Commission be affirmed or the petition for review
be dismissed.''.
(c) Divestiture Orders.--Section 5(g)(4) (15 U.S.C. 45(g)(4)) is
amended to read as follows:
``(4) In the case of an order provision requiring a person,
partnership, or corporation to divest itself of stock, other share
capital, or assets, if a petition for review of such order of the
Commission has been filed--
``(A) upon the expiration of the time allowed for filing a
petition for certiorari, if the order of the Commission has
been affirmed or the petition for review has been dismissed by
the court of appeals and no petition for certiorari has been
duly filed;
``(B) upon the denial of a petition for certiorari, if the
order of the Commission has been affirmed or the petition for
review has been dismissed by the court of appeals; or
``(C) upon the expiration of 30 days from the date of
issuance of a mandate of the Supreme Court directing that the
order of the Commission be affirmed or the petition for review
be dismissed.''.
(d) Technical.--Paragraph (1) of section 5(g) (15 U.S.C. 45(g)(1))
is amended by striking ``; or'' and inserting a period.

bd24d181d3fa656e34f36b2b7949ea1b5e8d70b9b4ca980316d5b86f5e67fcca

(a) Definitions.--Section 20(a) (15 U.S.C. 57b-1(a)) is amended--
(1) in paragraph (2), by inserting ``or in any antitrust
violations'' immediately after ``section 5(a)(1))'';
(2) in paragraph (3), by inserting ``or any provisions relating
to antitrust violations'' immediately after ``section 5(a)(1))'';
(3) in paragraph (7), by inserting ``or any antitrust
violation'' immediately after ``section 5(a)(1))''; and
(4) by adding at the end the following new paragraph:
``(8) The term `antitrust violation' means any unfair method of
competition (within the meaning of section 5(a)(1)), any violation
of the Clayton Act, any violation of any other Federal statute that
prohibits, or makes available to the Commission a civil remedy with
respect to, any restraint upon or monopolization of interstate or
foreign trade or commerce, or any activity in preparation for a
merger, acquisition, joint venture, or similar transaction, which
if consummated, may result in such an unfair method of competition
or violation.''.
(b) Issuance of Demand.--(1) Section 20(c)(1) (15 U.S.C. 57b-
1(c)(1)) is amended--
(A) by inserting ``or tangible things'' immediately after
``documentary material'' the first place it appears;
(B) by inserting ``or to antitrust violations,'' immediately
after ``section 5(a)(1)) ,''; and
(C) by inserting ``to submit such tangible things,''
immediately after ``copying or reproduction,''.
(2) Section 20(c) (15 U.S.C. 57b-1(c)) is amended--
(A) by redesignating paragraphs (4), (5), (6), (7), (8), (9),
(10), (11), and (12) as paragraphs (5), (6), (7), (8), (9), (10),
(11), (13), and (14), respectively;
(B) by inserting immediately after paragraph (3) the following
new paragraph:
``(4) Each civil investigative demand for the submission of
tangible things shall--
``(A) describe each class of tangible things to be submitted
under the demand with such definiteness and certainty as to permit
such things to be fairly identified;
``(B) prescribe a return date or dates which will provide a
reasonable period of time within which the things so demanded may
be assembled and submitted; and
``(C) identify the custodian to whom such things shall be
submitted.''; and
(C) by inserting immediately after paragraph (11), as so
redesignated, the following new paragraph:
``(12) The submission of tangible things in response to a civil
investigative demand shall be made under a sworn certificate, in such
form as the demand designates, by the person to whom the demand is
directed or, if not a natural person, by any person having knowledge of
the facts and circumstances relating to such production, to the effect
that all of the tangible things required by the demand and in the
possession, custody, or control of the person to whom the demand is
directed have been submitted to the custodian.''.
(c) Section 20(g).--Section 20(g) (15 U.S.C. 57b-1(g)) is amended
by inserting ``, tangible things'' immediately after ``documentary
material''.
(d) Applicability of Section 20.--Section 20(j)(1) (15 U.S.C. 57b-
1(j)(1)) is amended by inserting immediately before the semicolon the
following: ``, any proceeding under section 11(b) of the Clayton Act
(15 U.S.C. 21(b)), or any adjudicative proceeding under any other
provision of law''.

d24ebbdfb771171c415b54e8fa3dcd60e279ce1addd6df5e65cea8e79cae5c19

Section 21 (15 U.S.C. 57b-2) is amended--
(1) in subsection (a)(1), by inserting ``tangible things,''
immediately after ``documentary material,'';
(2) in subsection (b)(1), by inserting ``, tangible thing,''
immediately after ``document'';
(3) in subsection (b)(2)(A), by inserting ``tangible things,''
immediately after ``documentary material,'';
(4) in subsection (b)(3)--
(A) in subparagraph (A), by inserting ``tangible things,''
immediately after ``documentary material,'';
(B) in subparagraph (B), by inserting ``, and may make
tangible things available,'' immediately after ``oral
testimony''; and by inserting ``, things,'' immediately after
``such material'';
(C) in subparagraph (C), by inserting ``tangible things,''
immediately after ``documentary material,'' and by inserting
``, things,'' immediately after ``material''; and
(D) in subparagraph (D), by inserting ``, tangible
things,'' immediately after ``documentary material'';
(5) in subsection (b)(4), by inserting ``tangible things,''
immediately after ``documentary material,'';
(6) in subsection (b)(5), by inserting ``tangible things,''
immediately after ``documentary material,'';
(7) in subsection (b)(6)--
(A) by inserting immediately after the first sentence the
following new sentence: ``The custodian of any tangible things
may make such things available for inspection to such persons
on the same basis.''; and
(B) by inserting ``results of inspections of tangible
things,'' immediately after ``Such documentary material,''; and
(8) in subsection (b)(7), by inserting ``tangible things,''
immediately after ``documentary material,''.

2440b66ab09d6eaf9a785e3c6867b743f1a5651ef982940544696a943bf872d9

Section 5 (15 U.S.C. 45) is amended by adding at the end the
following:
``(n) The Commission shall have no authority under this section or
section 18 to declare unlawful an act or practice on the grounds that
such act or practice is unfair unless the act or practice causes or is
likely to cause substantial injury to consumers which is not reasonably
avoidable by consumers themselves and not outweighed by countervailing
benefits to consumers or to competition. In determining whether an act
or practice is unfair, the Commission may consider established public
policies as evidence to be considered with all other evidence. Such
public policy considerations may not serve as a primary basis for such
determination.''.

52ac124b5511c1bdd7610d790ca4a2a7fa4311800cba77ff25e1122146b8adeb

(a) Authority.--
(1) Advertisements in violation of section 12.--Section 13(a)
(15 U.S.C. 53(a)) is amended by striking the last sentence and
inserting the following: ``Any suit may be brought where such
person, partnership, or corporation resides or transacts business,
or wherever venue is proper under section 1391 of title 28, United
States Code. In addition, the court may, if the court determines
that the interests of justice require that any other person,
partnership, or corporation should be a party in such suit, cause
such other person, partnership, or corporation to be added as a
party without regard to whether venue is otherwise proper in the
district in which the suit is brought. In any suit under this
section, process may be served on any person, partnership, or
corporation wherever it may be found.''.
(2) Provisions enforced by commission.--Section 13(b) (15
U.S.C. 53(b)) is amended by striking the last sentence and
inserting the following: ``Any suit may be brought where such
person, partnership, or corporation resides or transacts business,
or wherever venue is proper under section 1391 of title 28, United
States Code. In addition, the court may, if the court determines
that the interests of justice require that any other person,
partnership, or corporation should be a party in such suit, cause
such other person, partnership, or corporation to be added as a
party without regard to whether venue is otherwise proper in the
district in which the suit is brought. In any suit under this
section, process may be served on any person, partnership, or
corporation wherever it may be found.''.
(b) Procedures.--Section 13 (15 U.S.C. 53) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting immediately after subsection (b) the following
new subsection:
``(c) Any process of the Commission under this section may be
served by any person duly authorized by the Commission--
``(1) by delivering a copy of such process to the person to be
served, to a member of the partnership to be served, or to the
president, secretary, or other executive officer or a director of
the corporation to be served;
``(2) by leaving a copy of such process at the residence or the
principal office or place of business of such person, partnership,
or corporation; or
``(3) by mailing a copy of such process by registered mail or
certified mail addressed to such person, partnership, or
corporation at his, or her, or its residence, principal office, or
principal place or business.
The verified return by the person serving such process setting forth
the manner of such service shall be proof of the same.''.

6821bbf4a399483817a8d50d01716dc358f074b5ade285397644e394281f3919

(a) Limitation on Use of Authorized Funds.--The Federal Trade
Commission shall not have any authority to use any funds which are
authorized to be appropriated to carry out the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) for fiscal years 1994, 1995, and 1996 for
the purpose of submitting statements to, appearing before, or
intervening in the proceedings of, any Federal or State agency or State
legislative body concerning proposed rules or legislation that the
agency or legislative body is considering unless the Commission advises
the Committee on Commerce, Science, and Transportation of the Senate
and the Committee on Energy and Commerce of the House of
Representatives regarding such action as soon as possible.
(b) Contents of Notice to Congress.--The notice required in
subsection (a) shall include the name of the agency or legislator
involved, the date of such action, and a concise statement regarding
the nature and purpose of such action.

cbc9f8dfb18946192858402082e91bb3daafd2600aa7aa0d92ad8cd8721d7caf

The Federal Trade Commission shall conduct an evaluation of the
level of its personnel resources and the manner in which such resources
are allocated. The Commission shall study--
(1) whether overall resources at the Commission are adequate to
fulfill the Commission's responsibilities in the areas of
competition and consumer protection;
(2) the distribution of personnel to individual offices of
commissioners, departments, bureaus, and other units within the
Commission, and whether the current allocation of personnel most
efficiently enables the Commission to fulfill its statutory
mandate;
(3) the number of personnel in supervisory positions,
contrasted with those personnel in nonsupervisory positions; and
(4) whether the amount of workyears devoted to research
activities should be increased and what results (if any) such an
increase would produce.
The Commission shall transmit the results of such study, together with
any recommendations that the Commission determines appropriate, to the
Committee on Commerce, Science, and Transportation of the Senate and
the Committee on Energy and Commerce of the House of Representatives
not later than 6 months after the date of enactment of this Act.

a585dedf5f30861499b17f4eb8c578aa1c66d2656056d006116a47fe9b5e0382

The Federal Trade Commission shall review its statutory
responsibilities to identify those matters within its jurisdiction
where Federal enforcement is particularly necessary or desirable and
those areas that might more effectively be enforced at the State or
local level. In identifying such areas, the Commission shall--
(1) consider the resources available to the Commission and the
States, as well as particular rules that have been promulgated by
the Commission;
(2) consult with the attorneys general of the States,
representatives of consumers and industry, and other interested
parties; and
(3) consider such other issues as will result in more efficient
implementation of the statutory responsibilities of the Commission.
Not later than 6 months after the date of enactment of this Act, the
Commission shall transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Energy and Commerce
of the House of Representatives the information identified in
paragraphs (1) through (3), together with specific recommendations for
methods of achieving greater cooperation between the Commission and the
States.

061c94037c4d2fdb9269559e3915d8d2303bd27902ec7aa24c5e167188e5a6c7

Section 25 (15 U.S.C. 57c), as so redesignated by section 2 of this
Act, is amended to read as follows:
``Sec. 25. There are authorized to be appropriated to carry out the
functions, powers, and duties of the Commission not to exceed
$92,700,000 for fiscal year 1994; not to exceed $99,000,000 for fiscal
year 1995; and not to exceed $102,000,000 for fiscal year 1996.''.

74c3312b5a0558de689fd345936c0370d104fc49c3c747d58047ec7244c418b0

(a) In General.--Except as provided in subsections (b), (c), (d),
and (e), the provisions of this Act shall take effect on the date of
enactment of this Act.
(b) Applicability of Section 5.--The amendment made by section 5 of
this Act shall apply only to rulemaking proceedings initiated after the
date of enactment of this Act. Such amendment shall not be construed to
affect in any manner a rulemaking proceeding which was initiated before
the date of enactment of this Act.
(c) Applicability of Section 6.--The amendments made by section 6
of this Act shall apply only with respect to cease and desist orders
issued under section 5 of the Federal Trade Commission Act (15 U.S.C.
45) after the date of enactment of this Act. These amendments shall not
be construed to affect in any manner a cease and desist order which was
issued before the date of enactment of this Act.
(d) Applicability of Sections 7 and 8.--The amendments made by
sections 7 and 8 of this Act shall apply only with respect to
compulsory process issued after the date of enactment of this Act.
(e) Applicability of Section 9.--The amendments made by section 9
of this Act shall apply only with respect to cease and desist orders
issued under section 5 of the Federal Trade Commission Act (15 U.S.C.
45), or to rules promulgated under section 18 of the Federal Trade
Commission Act (15 U.S.C. 57a) after the date of enactment of this Act.
These amendments shall not be construed to affect in any manner a cease
and desist order which was issued, or a rule which was promulgated,
before the date of enactment of this Act. These amendments shall not be
construed to affect in any manner a cease and desist order issued after
the date of enactment of this Act, if such order was issued pursuant to
remand from a court of appeals or the Supreme Court of an order issued
by the Federal Trade Commission before the date of enactment of this
Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

a929b38861194ee4fc26ae236d9ef86a19cbd323d98b0c13f5c894f336b048f8

Federal Trade Commission Act Amendments of 1994

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