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,

SECTION 1. SHORT TITLE; REFERENCE.

    (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.

SEC. 2. AGRICULTURAL COOPERATIVES.

    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.''.

SEC. 3. COMPENSATION IN PROCEEDINGS.

    (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repealed and subsections (i), (j), and (k) of section 18 are 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)''.

SEC. 4. PROCEEDINGS SUBSEQUENT TO VIOLATIONS OF ORDERS.

    (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).''.

SEC. 5. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES.

    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.''.

SEC. 6. EFFECTIVE DATE OF ORDERS.

    (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.

SEC. 7. CIVIL INVESTIGATIVE DEMANDS.

    (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''.

SEC. 8. COMMISSION CUSTODY OF TANGIBLE THINGS.

    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,''.

SEC. 9. DEFINITION OF UNFAIR ACTS OR PRACTICES.

    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.''.

SEC. 10. PROCESS.

    (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.''.

SEC. 11. INTERVENTION BY COMMISSION IN CERTAIN PROCEEDINGS.

    (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.

SEC. 12. RESOURCE ALLOCATION STUDY.

    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.

SEC. 13. FEDERAL-STATE COOPERATION.

    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.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS.

    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.''.

SEC. 15. EFFECTIVE DATE; APPLICABILITY.

    (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.