15 U.S.C. § 53 — False advertisements; injunctions and re-

Page 74 TITLE 15—COMMERCE AND TRADE § 52 (Sept. 26, 1914, ch. 311, § 11, 38 Stat. 724.) § 52. Dissemination of false advertisements (a) Unlawfulness It shall be unlawful for any person, partner- ship, or corporation to disseminate, or cause to be disseminated, any false advertisement— (1) By United States mails, or in or having an effect upon commerce, by any means, for the purpose of inducing, or which is likely to induce, directly or indirectly the purchase of food, drugs, devices, services, or cosmetics; or (2) By any means, for the purpose of induc- ing, or which is likely to induce, directly or indirectly, the purchase in or having an effect upon commerce, of food, drugs, devices, serv- ices, or cosmetics. (b) Unfair or deceptive act or practice The dissemination or the causing to be dis- seminated of any false advertisement within the provisions of subsection (a) of this section shall be an unfair or deceptive act or practice in or af- fecting commerce within the meaning of section 45 of this title. (Sept. 26, 1914, ch. 311, § 12, as added Mar. 21, 1938, ch. 49, § 4, 52 Stat. 114; amended Pub. L. 93–637, title II, § 201(c), Jan. 4, 1975, 88 Stat. 2193; Pub. L. 103–297, § 8, Aug. 16, 1994, 108 Stat. 1550.) Editorial Notes AMENDMENTS 1994—Subsec. (a). Pub. L. 103–297 inserted ‘‘services,’’ after ‘‘devices,’’ in pars. (1) and (2). 1975—Subsec. (a). Pub. L. 93–637 substituted ‘‘in or having an effect upon commerce,’’ for ‘‘in commerce’’. Subsec. (b). Pub. L. 93–637 substituted ‘‘in or affecting commerce’’ for ‘‘in commerce’’. Statutory Notes and Related Subsidiaries INFORMATION ABOUT SCAMS RELATED TO COVID–19 Pub. L. 116–287, § 2, Jan. 5, 2021, 134 Stat. 4882, provided that: ‘‘(a) DISSEMINATION OF INFORMATION.— ‘‘(1) IN GENERAL.—As expeditiously as possible after the date of the enactment of this Act [Jan. 5, 2021], the Commission, in consultation with the Attorney General, the Secretary of Health and Human Serv- ices, the Postmaster General, the Chief Postal Inspec- tor, and the Internet Crime Complaint Center, shall develop and disseminate information to the public about scams related to the novel coronavirus (COVID–19). ‘‘(2) REQUIREMENTS.—In carrying out paragraph (1), the Commission shall— ‘‘(A) include— ‘‘(i) information regarding mail, telemarketing, and internet fraud and illegal robocalls related to COVID–19 that identifies the most common scams; and ‘‘(ii) information regarding where and how to report instances of scams related to COVID–19, in- cluding instructions on how to file a complaint with the appropriate law enforcement agency; ‘‘(B) disseminate information under such para- graph in a manner that prioritizes, and that is eas- ily accessible by and user-friendly to, senior citi- zens and people with infirmities and disabilities; ‘‘(C) disseminate information under such para- graph on an internet website of the Commission that serves as a source of information for the public about scams related to COVID–19; and ‘‘(D) regularly update the information developed and disseminated under such paragraph to keep pace with the changing nature of scams related to COVID–19. ‘‘(b) DATABASE.—As expeditiously as possible after the date of the enactment of this Act, the Commission shall, in consultation with State law enforcement agencies, the Director of the Bureau of Consumer Fi- nancial Protection, the Attorney General, the Sec- retary of Health and Human Services, and other rel- evant Federal officials, establish a comprehensive na- tional database, either within or separate from the Consumer Sentinel Network, that tracks instances of scams related to COVID–19. ‘‘(c) COMMISSION DEFINED.—In this section, the term ‘Commission’ means the Federal Trade Commission.’’ § 53. False advertisements; injunctions and re- straining orders (a) Power of Commission; jurisdiction of courts Whenever the Commission has reason to be- lieve— (1) that any person, partnership, or corpora- tion is engaged in, or is about to engage in, the dissemination or the causing of the dis- semination of any advertisement in violation of section 52 of this title, and (2) that the enjoining thereof pending the issuance of a complaint by the Commission under section 45 of this title, and until such complaint is dismissed by the Commission or set aside by the court on review, or the order of the Commission to cease and desist made thereon has become final within the meaning of section 45 of this title, would be to the in- terest of the public, the Commission by any of its attorneys des- ignated by it for such purpose may bring suit in a district court of the United States or in the United States court of any Territory, to enjoin the dissemination or the causing of the dissemi- nation of such advertisement. Upon proper showing a temporary injunction or restraining order shall be granted without bond. 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. In addition, the court may, if the court determines that the interests of justice require that any other person, partnership, or corpora- tion 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) Temporary restraining orders; preliminary injunctions Whenever the Commission has reason to be- lieve— (1) that any person, partnership, or corpora- tion is violating, or is about to violate, any provision of law enforced by the Federal Trade Commission, and (2) that the enjoining thereof pending the issuance of a complaint by the Commission and until such complaint is dismissed by the Commission or set aside by the court on re- view, or until the order of the Commission Page 75 TITLE 15—COMMERCE AND TRADE § 54 made thereon has become final, would be in the interest of the public— the Commission by any of its attorneys des- ignated by it for such purpose may bring suit in a district court of the United States to enjoin any such act or practice. Upon a proper showing that, weighing the equities and considering the Commission’s likelihood of ultimate success, such action would be in the public interest, and after notice to the defendant, a temporary re- straining order or a preliminary injunction may be granted without bond: Provided, however, That if a complaint is not filed within such pe- riod (not exceeding 20 days) as may be specified by the court after issuance of the temporary re- straining order or preliminary injunction, the order or injunction shall be dissolved by the court and be of no further force and effect: Pro- vided further, That in proper cases the Commis- sion may seek, and after proper proof, the court may issue, a permanent injunction. 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. In addition, the court may, if the court determines that the interests of justice require that any other person, partnership, or corpora- tion 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. (c) Service of process; proof of service Any process of the Commission under this sec- tion may be served by any person duly author- ized 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 direc- tor 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 cor- poration; or (3) by mailing a copy of such process by reg- istered 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. (d) Exception of periodical publications Whenever it appears to the satisfaction of the court in the case of a newspaper, magazine, peri- odical, or other publication, published at regular intervals— (1) that restraining the dissemination of a false advertisement in any particular issue of such publication would delay the delivery of such issue after the regular time therefor, and (2) that such delay would be due to the method by which the manufacture and dis- tribution of such publication is customarily conducted by the publisher in accordance with sound business practice, and not to any meth- od or device adopted for the evasion of this section or to prevent or delay the issuance of an injunction or restraining order with respect to such false advertisement or any other ad- vertisement, the court shall exclude such issue from the oper- ation of the restraining order or injunction. (Sept. 26, 1914, ch. 311, § 13, as added Mar. 21, 1938, ch. 49, § 4, 52 Stat. 114; amended Pub. L. 93–153, title IV, § 408(f), Nov. 16, 1973, 87 Stat. 592; Pub. L. 103–312, § 10, Aug. 26, 1994, 108 Stat. 1695.) Editorial Notes AMENDMENTS 1994—Subsecs. (a), (b). Pub. L. 103–312, § 10(a), in con- cluding provisions, substituted ‘‘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. 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.’’ for ‘‘Any such suit shall be brought in the district in which such person, partnership, or cor- poration resides or transacts business.’’ Subsecs. (c), (d). Pub. L. 103–312, § 10(b), added subsec. (c) and redesignated former subsec. (c) as (d). 1973—Subsecs. (b), (c). Pub. L. 93–153 added subsec. (b) and redesignated former subsec. (b) as (c). Executive Documents TRANSFER OF FUNCTIONS For transfer of functions of Federal Trade Commis- sion, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 8 of 1950, § 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264, set out under section 41 of this title. § 54. False advertisements; penalties (a) Imposition of penalties Any person, partnership, or corporation who violates any provision of section 52(a) of this title shall, if the use of the commodity adver- tised may be injurious to health because of re- sults from such use under the conditions pre- scribed in the advertisement thereof, or under such conditions as are customary or usual, or if such violation is with intent to defraud or mis- lead, be guilty of a misdemeanor, and upon con- viction shall be punished by a fine of not more than $5,000 or by imprisonment for not more than six months, or by both such fine and im- prisonment; except that if the conviction is for a violation committed after a first conviction of such person, partnership, or corporation, for any violation of such section, punishment shall be by a fine of not more than $10,000 or by impris- onment for not more than one year, or by both such fine and imprisonment: Provided, That for the purposes of this section meats and meat food products duly inspected, marked, and labeled in accordance with rules and regulations issued under the Meat Inspection Act [21 U.S.C. 601 et seq.] shall be conclusively presumed not inju-