Declaration of unlawfulness; power to prohibit unfair practices; inapplicability to foreign trade
Proceeding by Commission; modifying and setting aside orders
1
Review of order; rehearing
section 2112 of title 28section 1254 of title 28Any person, partnership, or corporation required by an order of the Commission to cease and desist from using any method of competition or act or practice may obtain a review of such order in the court of appeals of the United States, within any circuit where the method of competition or the act or practice in question was used or where such person, partnership, or corporation resides or carries on business, by filing in the court, within sixty days from the date of the service of such order, a written petition praying that the order of the Commission be set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Commission, and thereupon the Commission shall file in the court the record in the proceeding, as provided in . Upon such filing of the petition the court shall have jurisdiction of the proceeding and of the question determined therein concurrently with the Commission until the filing of the record and shall have power to make and enter a decree affirming, modifying, or setting aside the order of the Commission, and enforcing the same to the extent that such order is affirmed and to issue such writs as are ancillary to its jurisdiction or are necessary in its judgement to prevent injury to the public or to competitors pendente lite. The findings of the Commission as to the facts, if supported by evidence, shall be conclusive. To the extent that the order of the Commission is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of such order of the Commission. If either party shall apply to the court for leave to adduce additional evidence, and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the Commission, the court may order such additional evidence to be taken before the Commission and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The Commission may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by evidence, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in .
Jurisdiction of court
Upon the filing of the record with it the jurisdiction of the court of appeals of the United States to affirm, enforce, modify, or set aside orders of the Commission shall be exclusive.
Exemption from liability
No order of the Commission or judgement of court to enforce the same shall in anywise relieve or absolve any person, partnership, or corporation from any liability under the Antitrust Acts.
Service of complaints, orders and other processes; return
Complaints, orders, and other processes of the Commission under this section may be served by anyone duly authorized by the Commission, either (a) by delivering a copy thereof to the person to be served, or to a member of the partnership to be served, or the president, secretary, or other executive officer or a director of the corporation to be served; or (b) by leaving a copy thereof at the residence or the principal office or place of business of such person, partnership, or corporation; or (c) by mailing a copy thereof by registered mail or by certified mail addressed to such person, partnership, or corporation at his or its residence or principal office or place of business. The verified return by the person so serving said complaint, order, or other process setting forth the manner of said service shall be proof of the same, and the return post office receipt for said complaint, order, or other process mailed by registered mail or by certified mail as aforesaid shall be proof of the service of the same.
Finality of order
Modification or setting aside of order by Supreme Court
If the Supreme Court directs that the order of the Commission be modified or set aside, the order of the Commission rendered in accordance with the mandate of the Supreme Court shall become final upon the expiration of thirty days from the time it was rendered, unless within such thirty days either party has instituted proceedings to have such order corrected to accord with the mandate, in which event the order of the Commission shall become final when so corrected.
Modification or setting aside of order by Court of Appeals
If the order of the Commission is modified or set aside by the court of appeals, and if (1) the time allowed for filing a petition for certiorari has expired and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the court has been affirmed by the Supreme Court, then the order of the Commission rendered in accordance with the mandate of the court of appeals shall become final on the expiration of thirty days from the time such order of the Commission was rendered, unless within such thirty days either party has instituted proceedings to have such order corrected so that it will accord with the mandate, in which event the order of the Commission shall become final when so corrected.
Rehearing upon order or remand
If the Supreme Court orders a rehearing; or if the case is remanded by the court of appeals to the Commission for a rehearing, and if (1) the time allowed for filing a petition for certiorari has expired, and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the court has been affirmed by the Supreme Court, then the order of the Commission rendered upon such rehearing shall become final in the same manner as though no prior order of the Commission had been rendered.
“Mandate” defined
As used in this section the term “mandate”, in case a mandate has been recalled prior to the expiration of thirty days from the date of issuance thereof, means the final mandate.
Penalty for violation of order; injunctions and other appropriate equitable relief
Any person, partnership, or corporation who violates an order of the Commission after it has become final, and while such order is in effect, shall forfeit and pay to the United States a civil penalty of not more than $10,000 for each violation, which shall accrue to the United States and may be recovered in a civil action brought by the Attorney General of the United States. Each separate violation of such an order shall be a separate offense, except that in a case of a violation through continuing failure to obey or neglect to obey a final order of the Commission, each day of continuance of such failure or neglect shall be deemed a separate offense. In such actions, the United States district courts are empowered to grant mandatory injunctions and such other and further equitable relief as they deem appropriate in the enforcement of such final orders of the Commission.
Civil actions for recovery of penalties for knowing violations of rules and cease and desist orders respecting unfair or deceptive acts or practices; jurisdiction; maximum amount of penalties; continuing violations; de novo determinations; compromise or settlement procedure
Standard of proof; public policy considerations
section 57a of this titleThe Commission shall have no authority under this section or 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.
Sept. 26, 1914, ch. 311, § 5 38 Stat. 719 Mar. 21, 1938, ch. 49, § 3 52 Stat. 111 June 23, 1938, ch. 601 52 Stat. 1028 June 25, 1948, ch. 646, § 32(a) 62 Stat. 991 May 24, 1949, ch. 139, § 127 63 Stat. 107 Mar. 16, 1950, ch. 61, § 4(c) 64 Stat. 21 July 14, 1952, ch. 745, § 2 66 Stat. 632 Pub. L. 85–726, title XIV72 Stat. 806 Pub. L. 85–791, § 372 Stat. 942 Pub. L. 85–909, § 372 Stat. 1750 Pub. L. 86–507, § 1(13)74 Stat. 200 Pub. L. 93–153, title IV, § 408(c)87 Stat. 591 Pub. L. 93–637, title II88 Stat. 2193 Pub. L. 94–145, § 389 Stat. 801 Pub. L. 96–37, § 1(a)93 Stat. 95 Pub. L. 96–252, § 294 Stat. 374 Pub. L. 97–290, title IV, § 40396 Stat. 1246 Pub. L. 98–620, title IV, § 402(12)98 Stat. 3358 Pub. L. 100–86, title VII, § 715(a)(1)101 Stat. 655 Pub. L. 103–312108 Stat. 1691 Pub. L. 109–455120 Stat. 3372 Pub. L. 112–203, § 1126 Stat. 1484 (, ; , ; , title XI, § 1107(f), ; , ; , ; , ; , ; , §§ 1401(b), 1411, , , 809; , , ; , , ; , , ; , (d), , , 592; , §§ 201(a), 204(b), 205(a), , , 2200; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 4, 6, 9, , , 1692, 1695; , §§ 3, 13, , , 3382; , , .)
Amendment of Section
section 13 of Pub. L. 109–455For repeal of amendment by , see Termination Date of 2006 Amendment note below.
Editorial Notes
References in Text
act Aug. 15, 1921, ch. 64 42 Stat. 159 section 181 of Title 7The Packers and Stockyards Act, 1921, as amended, referred to in subsec. (a)(2), is , , which is classified to chapter 9 (§ 181 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see and Tables.
Codification
Pub. L. 103–272, § 6(b)108 Stat. 1378 In subsec. (a)(2), “part A of subtitle VII of title 49” substituted for “the Federal Aviation Act of 1958 [49 App. U.S.C. 1301 et seq.]” on authority of , , , the first section of which enacted subtitles II, III, and V to X of Title 49, Transportation.
section 1254 of title 2828 U.S.C. 347act June 25, 1948, ch. 646 62 Stat. 869 In subsec. (c), “” substituted for “section 240 of the Judicial Code []” on authority of , , the first section of which enacted Title 28, Judiciary and Judicial Procedure.
Amendments
Pub. L. 112–203, § 1Pub. L. 109–455, § 132012—Subsec. (a)(4). , amended . See 2006 Amendment note below.
Pub. L. 109–455, § 3Pub. L. 109–455, § 13Pub. L. 112–203, § 12006—Subsec. (a)(4). , which added par. (4) extending the definition of unfair or deceptive acts or practices to include certain ones involving foreign commerce, was repealed by , as amended by . See Termination Date of 2006 Amendment note below.
Pub. L. 103–312, § 6(d)1994—Subsec. (g)(1). , substituted a period for “; or” at end.
Pub. L. 103–312, § 6(a)Subsec. (g)(2). , amended par. (2) generally. Prior to amendment, par. (2) read as follows: “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 dismissed by the court of appeals, and no petition for certiorari has been duly filed; or”.
Pub. L. 103–312, § 6(b)Subsec. (g)(3). , amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Upon the denial of a petition for certiorari, if the order of the Commission has been affirmed or the petition for review dismissed by the court of appeals; or”.
Pub. L. 103–312, § 6(c)Subsec. (g)(4). , amended par. (4) generally. Prior to amendment, par. (4) read as follows: “Upon the expiration of thirty days from the date of issuance of the mandate of the Supreme Court, if such Court directs that the order of the Commission be affirmed or the petition for review dismissed.”
Pub. L. 103–312, § 4(a)Subsec. (m)(1)(B). , inserted “, other than a consent order,” after “a final cease and desist order” in introductory provisions.
Pub. L. 103–312, § 4(b)Subsec. (m)(2). , inserted at end “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).”
Pub. L. 103–312, § 9Subsec. (n). , added subsec. (n).
Pub. L. 100–86section 57a(f)(4) of this titlesection 57a(f)(3) of this title1987—Subsec. (a)(2). inserted “Federal credit unions described in ,” after “,”.
Pub. L. 98–6201984—Subsec. (e). struck out provision that such proceedings in the court of appeals had to be given precedence over other cases pending therein, and had to be in every way expedited.
Pub. L. 97–2901982—Subsec. (a)(3). added par. (3).
Pub. L. 96–2521980—Subsec. (b). added cl. (2) and provision following cl. (2) requiring that the Commission determine whether to alter, modify, or set aside any order of the Commission in response to a request made by a person, partnership, or corporation under paragraph (2) not later than 120 days after the date of the filing of such request.
Pub. L. 96–37section 57a(f)(3) of this title1979—Subsec. (a)(2). added savings and loan institutions described in to the enumeration of entities exempted from the Commission’s power to prevent the use of unfair methods of competition and unfair or deceptive acts or practices.
Pub. L. 93–637, § 201(a)1975—, substituted “in or affecting commerce” for “in commerce” wherever appearing.
Pub. L. 94–145Subsec. (a). struck out pars. (2) to (5) which permitted fair trade pricing of articles for retail sale and State enactment of nonsigner provisions, and redesignated par. (6) as (2).
Pub. L. 93–637Subsec. (m). , §§ 204(b), 205(a), added subsec. (m). Former subsec. (m), relating to the election by the Commission to appear in its own name after notifying and consulting with and giving the Attorney General 10 days to take the action proposed by the Commission, was struck out.
lPub. L. 93–153, § 408(c)1973—Subsec. (). , raised the maximum civil penalty for each violation to $10,000 and inserted provisions empowering the United States District Courts to grant mandatory injunctions and such other and further equitable relief as they might deem appropriate for the enforcement of final Commission orders.
Pub. L. 93–153, § 408(d)Subsec. (m). , added subsec. (m).
Pub. L. 86–5071960—Subsec. (f). substituted “mailing a copy thereof by registered mail or by certified mail” for “registering and mailing a copy thereof”, and “mailed by registered mail or by certified mail” for “registered and mailed”.
Pub. L. 85–9091958—Subsec. (a)(6). substituted “persons, partnerships, or corporations insofar as they are subject to the Packers and Stockyards Act, 1921, as amended,” for “persons, partnerships or corporations subject to the Packers and Stockyards Act, 1921,”.
Pub. L. 85–726, § 1411, substituted “Federal Aviation Act of 1958” for “Civil Aeronautics Act of 1938”.
Pub. L. 85–791, § 3(a)Subsec. (b). , struck out “the transcript of” before “the record in the proceeding” in sixth sentence.
Pub. L. 85–791, § 3(b)section 2112 of title 28Subsec. (c). , in second sentence, substituted “transmitted by the clerk of the court to” for “served upon”, and “Commission shall file in the court the record in the proceeding, as provided in ” for “Commission forthwith shall certify and file in the court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the Commission”, and which, in third sentence struck out “and transcript” after “petition”, inserted “concurrently with the Commission until the filing of the record” and struck out “upon the pleadings, evidence, and proceedings set forth in such transcript” before “a decree affirming”.
Pub. L. 85–791, § 3(c)Subsec. (d). , substituted “Upon the filing of the record with it the” for “The”.
1952—Subsec. (a). Act , amended subsec. (a) generally to permit fair trade pricing of articles for retail sale.
l1950—Subsec. (). Act , inserted last sentence to make each separate violation of a cease and desist order as a separate offense, except that each day of a continuing failure to obey a final order shall be a separate offense.
1938—Subsec. (a). Act , inserted “air carriers and foreign air carriers subject to chapter 9 of title 49” in second par.
Act , amended section generally.
Statutory Notes and Related Subsidiaries
Change of Name
Act , eff. , as amended by act , substituted “court of appeals” for “circuit court of appeals”.
Termination Date of 2006 Amendment
section 3 of Pub. L. 109–455Pub. L. 109–455Pub. L. 109–455section 13 of Pub. L. 109–455section 44 of this titleAmendment by repealed effective , and provisions amended by to be amended to read as if had not been enacted, see , set out as a note under .
Effective Date of 1994 Amendment
Pub. L. 103–312, § 15108 Stat. 1697
In General .—
Applicability of Section 5.—
Applicability of Section 6.—
Applicability of Sectionsand 7 8.—
Applicability of Section 9.—
Effective Date of 1984 Amendment
Pub. L. 98–620section 403 of Pub. L. 98–620section 1657 of Title 28Amendment by not applicable to cases pending on , see , set out as an Effective Date note under , Judiciary and Judicial Procedure.
Effective Date of 1980 Amendment
Pub. L. 96–252, § 2394 Stat. 397
Effective Date of 1975 Amendments
Pub. L. 94–145section 4 of Pub. L. 94–145section 1 of this titleAmendment by effective upon expiration of ninety-day period beginning on , see , set out as a note under .
section 204(b) of Pub. L. 93–637section 204(c) of Pub. L. 93–637section 56 of this titleAmendment by not applicable to any civil action commenced before , see , set out as a note under .
Pub. L. 93–637, § 205(b)88 Stat. 2201
Effective Date of 1958 Amendment
Pub. L. 85–726Pub. L. 85–726section 1505(2) of Pub. L. 85–726Amendment by effective on 60th day following the date on which the Administrator of the Federal Aviation Agency first appointed under qualifies and takes office, see . The Administrator was appointed, qualified, and took office on .
Effective Date of 1950 Amendment
section 347 of Title 21Amendment by act , effective , see note set out under , Food and Drugs.
Prohibiting Deceptive Acts or Practices in Connection With the Novel Coronavirus
Pub. L. 116–260, div. FF, title XIV, § 1401134 Stat. 3275
Short Title .—
In General .—
Enforcement by the Federal Trade Commission.—
Violation .—
Powers of the federal trade commission.—
In general .—
Privileges and immunities .—
Effect on other laws .—
Severability .—
Congressional Findings and Declaration of Purpose Covering Grant of District Subpena Enforcement Authority and Authority To Grant Preliminary Injunctive Relief
Pub. L. 93–153, § 408(a)87 Stat. 591
Purpose of Act
Act July 14, 1952, ch. 745, § 1 66 Stat. 631
Executive Documents
Transfer of Functions
64 Stat. 1264 section 41 of this titleFor transfer of functions of Federal Trade Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 8 of 1950, § 1, eff. , 15 F.R. 3175, , set out under .