Federal Trade Commission Act of 1979

Summary

Federal Trade Commission Act of 1979 - States that existing provisions of Federal law declaring as illegal any unfair act or practice affecting commerce shall not apply to commercial advertising. Limits the authority of the Federal Trade Commission with respect to advertising to cases of deceptive or false advertising. Prohibits the Commission from disclosing, except for law enforcement purposes: (1) any confidential commercial or financial information obtained by the Commission; (2) any information protected against disclosure by an Act of Congress; or (3) any information which can be used to identify the line-of-business data furnished by a particular organization. Prohibits examination of such line-of-business data by anyone other than an officer designated by the Commission. Stipulates that such data shall be used only for statistical purposes. Amends the rulemaking process and authority of the Commission. Authorizes the Commission to prescribe rules which define false and deceptive advertising in or affecting commerce. Requires the Commission to include in the notice of any proposed rule the text of the rule and proposed alternatives. States that provisions of Federal law governing the rulemaking authority of the Commission do not authorize the Commission to prescribe any trade regulation rules with respect to unfair methods of competition. Requires the Commission: (1) to issue a notice of proposed rulemaking only when the proposed rule concerns unfair or deceptive acts or practices or false and deceptive advertising acts which the agency determines to be "prevalent" according to specified guidelines; (2) to submit such notice to specified committees of Congress 30 days before its publication; and (3) to publish an advance notice of proposed rulemaking, prior to the notice of proposed rulemaking currently required, to describe regulatory objects and solicit public comment. Declares that the officer presiding over an informal rulemaking proceeding of the Commission: (1) should not be responsible to an employee engaged in investigatory or prosecuting functions of the Commission; (2) shall not make ex parte communications without providing notice and an opportunity for the participation of all parties. Revises the limits on the amount of compensation an individual or individuals may be paid by the Commission for the costs of participating in rulemaking proceedings. Directs the Commission to prescribe rules: (1) authorizing the Commission or any Commissioner to meet with an outside party concerning any rulemaking proceeding or any preliminary investigation to such a proceeding; and (2) prohibiting Commission employees who perform investigative or prosecuting functions in rulemaking proceedings from making any communication concerning such proceeding or a related proceeding to a Commissioner or member of the personal staff of a Commissioner unless specified requirements are satisfied. Establishes standards governing the Commission's subpoena power and power to require information by general or special order in regard to investigations concerning unfair or deceptive acts or practices or false and deceptive advertising acts or practices. Authorizes the Commission to issue a civil investigative demand to require a person under investigation to produce material relevant to such acts or practices. Requires that such demand: (1) identify the conduct constituting the alleged violation and the provision of law violated; (2) identify the specific material or information requested or, with respect to demand for oral testimony, the investigator conducting the investigation; (3) prescribe the dates for submission of the information or testimony; and (4) identify the custodian for such information. Sets forth provisions governing service of such a demand. Authorizes the Commission to file a petition for a court order to enforce a demand with the U.S. district court of appropriate jurisdiction. Authorizes a person receiving such a demand to petition the Commission for an order modifying or setting aside the demand. Stipulates that a subpoena or civil investigative demand has no authority unless signed by a Commissioner acting pursuant to a Commission resolution. Directs the Commission to designate an agent to serve as custodian of all information received pursuant to a demand or subpoena. Sets forth provisions concerning the management of such information and other confidential information obtained by or supplied to the Commission. Exempts from disclosure under the Freedom of Information Act material provided pursuant to a special or general order of the Commission. Directs the Commission to publish, at least semiannually, a regulatory agenda containing a list of rules the Commission intends to propose or promulgate and the dates of any regulatory actions planned for the next year. Requires the Commission, for each proposed rule as defined in this Act, to publish a preliminary regulatory analysis which describes the need for the rule, the reasonable alternative approaches for accomplishing the regulatory objective, and the projected benefits and adverse economic effects of the proposed rule and alternatives. Requires the Commission to publish for each final rule a final regulatory analysis which includes (1) a justification of the selection of the final rule, and (2) a summary of the agency's assessment of the significant issues raised by the public comments received on the preliminary analysis. Directs each agency to include in the notice of each proposed and final rule, instructions on how the public may obtain copies of such analyses. Declares that such analyses shall be available for judicial review as part of the record in connection with a court's review of a rule as provided under the Federal Trade Commission Act. Entitles a prevailing party of limited net worth to be awarded fees and expenses incurred by such party in: (1) an administrative adjudication conducted by the Commission; or (2) any civil action brought by or against the Commission, unless the Commission, or the court having jurisdiction of action, finds that the position of the Commission is substantially justified or that special circumstances make an award unjust. Allows the agency or the court to reduce any such award to the extent that the prevailing party unduly and unreasonably protracted the final resolution of the matter in controversy. Authorizes a party dissatisfied with such award in an administrative adjudication to petition for leave to appeal the decision in an appropriate Federal court. Authorizes appropriations for the Commission for fiscal years 1980 and 1981. Requires the Consumer Subcommittee of the Senate Committee on Commerce, Science, and Transportation to hold oversight hearings on the Commission at least once every six months through fiscal year 1981. Prohibits the Commission from prescribing a rule which requires a mandatory warranty in connection with the sale of a used motor vehicle.

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Documents

3 official files

• Indefinitely postponed in Senate

  summary · EN · 7 February 1980

  Open at official source

• Reported to Senate with amendment(s)

  summary · EN · 14 December 1979

  Open at official source

• Introduced in Senate

  summary · EN · 8 November 1979

  Open at official source

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