15 U.S.C. § 57a — Unfair or deceptive acts or practices rule-

Page 78 TITLE 15—COMMERCE AND TRADE § 57 right of the Commission to commence, defend, or intervene in, any such action or appeal may be extinguished due to any procedural require- ment of any court with respect to the time in which any pleadings, notice of appeal, or other acts pertaining to such action or appeal may be taken, the Attorney General shall have one-half of the time required to comply with any such procedural requirement of the court (including any extension of such time granted by the court) for the purpose of commencing, defending, or in- tervening in the civil action pursuant to para- graph (1) or for the purpose of refusing to appeal or file a petition for writ of certiorari and the written notification or failing to take any ac- tion pursuant to paragraph 3(A)(ii). (5) The provisions of this subsection shall apply notwithstanding chapter 31 of title 28, or any other provision of law. (b) Certification by Commission to Attorney Gen- eral for criminal proceedings Whenever the Commission has reason to be- lieve that any person, partnership, or corpora- tion is liable for a criminal penalty under this subchapter, the Commission shall certify the facts to the Attorney General, whose duty it shall be to cause appropriate criminal pro- ceedings to be brought. (c) Foreign litigation (1) Commission attorneys With the concurrence of the Attorney Gen- eral, the Commission may designate Commis- sion attorneys to assist the Attorney General in connection with litigation in foreign courts on particular matters in which the Commis- sion has an interest. (2) Reimbursement for foreign counsel The Commission is authorized to expend ap- propriated funds, upon agreement with the At- torney General, to reimburse the Attorney General for the retention of foreign counsel for litigation in foreign courts and for ex- penses related to litigation in foreign courts in which the Commission has an interest. (3) Limitation on use of funds Nothing in this subsection authorizes the payment of claims or judgments from any source other than the permanent and indefi- nite appropriation authorized by section 1304 of title 31. (4) Other authority The authority provided by this subsection is in addition to any other authority of the Com- mission or the Attorney General. (Sept. 26, 1914, ch. 311, § 16, as added Mar. 21, 1938, ch. 49, § 4, 52 Stat. 114; amended Pub. L. 93–153, title IV, § 408(g), Nov. 16, 1973, 87 Stat. 592; Pub. L. 93–637, title II, § 204(a), Jan. 4, 1975, 88 Stat. 2199; Pub. L. 109–455, §§ 5, 7(b), 13, Dec. 22, 2006, 120 Stat. 3375, 3379, 3382; Pub. L. 112–203, § 1, Dec. 4, 2012, 126 Stat. 1484.) AMENDMENT OF SECTION For repeal of amendment by section 13 of Pub. L. 109–455, see Termination Date of 2006 Amend- ment note below. Editorial Notes AMENDMENTS 2012—Pub. L. 112–203, § 1, amended Pub. L. 109–455, § 13. See 2006 Amendment notes below. 2006—Subsec. (a)(2)(E). Pub. L. 109–455, § 7(b), which added subpar. (E) reading ‘‘under section 57b–2a of this title;’’, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below. Subsec. (c). Pub. L. 109–455, § 5, which added subsec. (c) relating to attorneys used and money expended for foreign litigation, was repealed by Pub. L. 109–455, § 13, as amended by Pub. L. 112–203, § 1. See Termination Date of 2006 Amendment note below. 1975—Pub. L. 93–637 substituted provisions author- izing the Commission at its election to appear in court by its own name and designate its attorneys for such purpose, for provisions relating to the certification of facts by the Commission to the Attorney General who brought the appropriate proceedings, or, after compli- ance with section 45(m) of this title, itself brought the appropriate proceedings. 1973—Pub. L. 93–153 inserted provisions authorizing the Federal Trade Commission to itself cause appro- priate proceedings to be brought after compliance with the requirements of section 45(m) of this title. Statutory Notes and Related Subsidiaries TERMINATION DATE OF 2006 AMENDMENT Amendment by sections 5 and 7(b) of Pub. L. 109–455 repealed effective Sept. 30, 2027, and provisions amend- ed by Pub. L. 109–455 to be amended to read as if Pub. L. 109–455 had not been enacted, see section 13 of Pub. L. 109–455, set out as a note under section 44 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 93–637, title II, § 204(c), Jan. 4, 1975, 88 Stat. 2200, provided that: ‘‘The amendment and repeal made by this section [amending this section and repealing section 45(m) of this title] shall not apply to any civil action commenced before the date of enactment of this Act [Jan. 4, 1975].’’ 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. § 57. Separability clause If any provision of this subchapter, or the ap- plication thereof to any person, partnership, or corporation, or circumstance, is held invalid, the remainder of this subchapter, and the appli- cation of such provisions to any other person, partnership, corporation, or circumstance, shall not be affected thereby. (Sept. 26, 1914, ch. 311, § 17, as added Mar. 21, 1938, ch. 49, § 4, 52 Stat. 114.) § 57a. Unfair or deceptive acts or practices rule- making proceedings (a) Authority of Commission to prescribe rules and general statements of policy (1) Except as provided in subsection (h), the Commission may prescribe— (A) interpretive rules and general state- ments of policy with respect to unfair or de- Page 79 TITLE 15—COMMERCE AND TRADE § 57a ceptive acts or practices in or affecting com- merce (within the meaning of section 45(a)(1) of this title), and (B) rules which define with specificity acts or practices which are unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title), except that the Commission shall not develop or promulgate any trade rule or regulation with regard to the regulation of the develop- ment and utilization of the standards and cer- tification activities pursuant to this section. Rules under this subparagraph may include re- quirements prescribed for the purpose of pre- venting such acts or practices. (2) The Commission shall have no authority under this subchapter, other than its authority under this section, to prescribe any rule with re- spect to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title). The preceding sen- tence shall not affect any authority of the Com- mission to prescribe rules (including interpre- tive rules), and general statements of policy, with respect to unfair methods of competition in or affecting commerce. (b) Procedures applicable (1) When prescribing a rule under subsection (a)(1)(B) of this section, the Commission shall proceed in accordance with section 553 of title 5 (without regard to any reference in such section to sections 556 and 557 of such title), and shall also (A) publish a notice of proposed rulemaking stating with particularity the text of the rule, including any alternatives, which the Commis- sion proposes to promulgate, and the reason for the proposed rule; (B) allow interested persons to submit written data, views, and arguments, and make all such submissions publicly avail- able; (C) provide an opportunity for an informal hearing in accordance with subsection (c); and (D) promulgate, if appropriate, a final rule based on the matter in the rulemaking record (as de- fined in subsection (e)(1)(B)), together with a statement of basis and purpose. (2)(A) Prior to the publication of any notice of proposed rulemaking pursuant to paragraph (1)(A), the Commission shall publish an advance notice of proposed rulemaking in the Federal Register. Such advance notice shall— (i) contain a brief description of the area of inquiry under consideration, the objectives which the Commission seeks to achieve, and possible regulatory alternatives under consid- eration by the Commission; and (ii) invite the response of interested parties with respect to such proposed rulemaking, in- cluding any suggestions or alternative meth- ods for achieving such objectives. (B) The Commission shall submit such ad- vance notice of proposed rulemaking to the Committee on Commerce, Science, and Trans- portation of the Senate and to the Committee on Energy and Commerce of the House of Rep- resentatives. The Commission may use such ad- ditional mechanisms as the Commission con- siders useful to obtain suggestions regarding the content of the area of inquiry before the publi- cation of a general notice of proposed rule- making under paragraph (1)(A). (C) The Commission shall, 30 days before the publication of a notice of proposed rulemaking pursuant to paragraph (1)(A), submit such notice to the Committee on Commerce, Science, and Transportation of the Senate and to the Com- mittee on Energy and Commerce of the House of Representatives. (3) The Commission shall issue a notice of pro- posed rulemaking pursuant to paragraph (1)(A) only where it has reason to believe that the un- fair or deceptive acts or practices which are the subject of the proposed rulemaking are preva- lent. The Commission shall make a determina- tion that unfair or deceptive acts or practices are prevalent under this paragraph only if— (A) it has issued cease and desist orders re- garding such acts or practices, or (B) any other information available to the Commission indicates a widespread pattern of unfair or deceptive acts or practices. (c) Informal hearing procedure The Commission shall conduct any informal hearings required by subsection (b)(1)(C) of this section in accordance with the following proce- dure: (1)(A) The Commission shall provide for the conduct of proceedings under this subsection by hearing officers who shall perform their functions in accordance with the requirements of this subsection. (B) The officer who presides over the rule- making proceedings shall be responsible to a chief presiding officer who shall not be respon- sible to any other officer or employee of the Commission. The officer who presides over the rulemaking proceeding shall make a rec- ommended decision based upon the findings and conclusions of such officer as to all rel- evant and material evidence, except that such recommended decision may be made by an- other officer if the officer who presided over the proceeding is no longer available to the Commission. (C) Except as required for the disposition of ex parte matters as authorized by law, no pre- siding officer shall consult any person or party with respect to any fact in issue unless such officer gives notice and opportunity for all parties to participate. (2) Subject to paragraph (3) of this sub- section, an interested person is entitled— (A) to present his position orally or by documentary submission (or both), and (B) if the Commission determines that there are disputed issues of material fact it is necessary to resolve, to present such re- buttal submissions and to conduct (or have conducted under paragraph (3)(B)) such cross-examination of persons as the Commis- sion determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to such issues. (3) The Commission may prescribe such rules and make such rulings concerning proceedings in such hearings as may tend to avoid unnec- essary costs or delay. Such rules or rulings may include (A) imposition of reasonable time limits on each interested person’s oral presen- tations, and (B) requirements that any cross- examination to which a person may be enti- Page 80 TITLE 15—COMMERCE AND TRADE § 57a 1 So in original. Probably should be ‘‘and’’. tled under paragraph (2) be conducted by the Commission on behalf of that person in such manner as the Commission determines (i) to be appropriate, and (ii) to be required for a full and true disclosure with respect to disputed issues of material fact. (4)(A) Except as provided in subparagraph (B), if a group of persons each of whom under paragraphs (2) and (3) would be entitled to con- duct (or have conducted) cross-examination and who are determined by the Commission to have the same or similar interests in the pro- ceeding cannot agree upon a single representa- tive of such interests for purposes of cross-ex- amination, the Commission may make rules and rulings (i) limiting the representation of such interest, for such purposes, and (ii) gov- erning the manner in which such cross-exam- ination shall be limited. (B) When any person who is a member of a group with respect to which the Commission has made a determination under subparagraph (A) is unable to agree upon group representa- tion with the other members of the group, then such person shall not be denied under the authority of subparagraph (A) the opportunity to conduct (or have conducted) cross-examina- tion as to issues affecting his particular inter- ests if (i) he satisfies the Commission that he has made a reasonable and good faith effort to reach agreement upon group representation with the other members of the group and (ii) the Commission determines that there are substantial and relevant issues which are not adequately presented by the group representa- tive. (5) A verbatim transcript shall be taken of any oral presentation, and cross-examination, in an informal hearing to which this sub- section applies. Such transcript shall be avail- able to the public. (d) Statement of basis and purpose accom- panying rule; ‘‘Commission’’ defined; judicial review of amendment or repeal of rule; viola- tion of rule (1) The Commission’s statement of basis and purpose to accompany a rule promulgated under subsection (a)(1)(B) shall include (A) a state- ment as to the prevalence of the acts or prac- tices treated by the rule; (B) a statement as to the manner and context in which such acts or practices are unfair or deceptive; and (C) a statement as to the economic effect of the rule, taking into account the effect on small business and consumers. (2)(A) The term ‘‘Commission’’ as used in this subsection and subsections (b) and (c) includes any person authorized to act in behalf of the Commission in any part of the rulemaking pro- ceeding. (B) A substantive amendment to, or repeal of, a rule promulgated under subsection (a)(1)(B) shall be prescribed, and subject to judicial re- view, in the same manner as a rule prescribed under such subsection. An exemption under sub- section (g) shall not be treated as an amendment or repeal of a rule. (3) When any rule under subsection (a)(1)(B) takes effect a subsequent violation thereof shall constitute an unfair or deceptive act or practice in violation of section 45(a)(1) of this title, un- less the Commission otherwise expressly pro- vides in such rule. (e) Judicial review; petition; jurisdiction and venue; rulemaking record; additional submis- sions and presentations; scope of review and relief; review by Supreme Court; additional remedies (1)(A) Not later than 60 days after a rule is promulgated under subsection (a)(1)(B) by the Commission, any interested person (including a consumer or consumer organization) may file a petition, in the United States Court of Appeals for the District of Columbia circuit or for the circuit in which such person resides or has his principal place of business, for judicial review of such rule. Copies of the petition shall be forth- with transmitted by the clerk of the court to the Commission or other officer designated by it for that purpose. The provisions of section 2112 of title 28 shall apply to the filing of the rule- making record of proceedings on which the Com- mission based its rule and to the transfer of pro- ceedings in the courts of appeals. (B) For purposes of this section, the term ‘‘rulemaking record’’ means the rule, its state- ment of basis and purpose, the transcript re- quired by subsection (c)(5), any written submis- sions, and any other information which the Commission considers relevant to such rule. (2) If the petitioner or the Commission applies to the court for leave to make additional oral submissions or written presentations and shows to the satisfaction of the court that such sub- missions and presentations would be material and that there were reasonable grounds for the submissions and failure to make such submis- sions and presentations in the proceeding before the Commission, the court may order the Com- mission to provide additional opportunity to make such submissions and presentations. The Commission may modify or set aside its rule or make a new rule by reason of the additional sub- missions and presentations and shall file such modified or new rule, and the rule’s statement of basis of 1 purpose, with the return of such sub- missions and presentations. The court shall thereafter review such new or modified rule. (3) Upon the filing of the petition under para- graph (1) of this subsection, the court shall have jurisdiction to review the rule in accordance with chapter 7 of title 5 and to grant appropriate relief, including interim relief, as provided in such chapter. The court shall hold unlawful and set aside the rule on any ground specified in sub- paragraphs (A), (B), (C), or (D) of section 706(2) of title 5 (taking due account of the rule of prej- udicial error), or if— (A) the court finds that the Commission’s action is not supported by substantial evi- dence in the rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole, or (B) the court finds that— (i) a Commission determination under sub- section (c) that the petitioner is not entitled to conduct cross-examination or make re- buttal submissions, or Page 81 TITLE 15—COMMERCE AND TRADE § 57a 2 So in original. 3 So in original. Probably should be ‘‘of’’. (ii) a Commission rule or ruling under sub- section (c) limiting the petitioner’s cross-ex- amination or rebuttal submissions, has precluded disclosure of disputed material facts which was necessary for fair determina- tion by the Commission of the rulemaking proceeding taken as a whole. The term ‘‘evidence’’, as used in this paragraph, means any matter in the rulemaking record. (4) The judgment of the court affirming or set- ting aside, in whole or in part, any such rule shall be final, subject to review by the Supreme Court of the United States upon certiorari or certification, as provided in section 1254 of title 28. (5)(A) Remedies under the preceding para- graphs of this subsection are in addition to and not in lieu of any other remedies provided by law. (B) The United States Courts of Appeal shall have exclusive jurisdiction of any action to ob- tain judicial review (other than in an enforce- ment proceeding) of a rule prescribed under sub- section (a)(1)(B), if any district court of the United States would have had jurisdiction of such action but for this subparagraph. Any such action shall be brought in the United States Court of Appeals for the District of Columbia circuit, or for any circuit which includes a judi- cial district in which the action could have been brought but for this subparagraph. (C) A determination, rule, or ruling of the Commission described in paragraph (3)(B)(i) or (ii) may be reviewed only in a proceeding under this subsection and only in accordance with paragraph (3)(B). Section 706(2)(E) of title 5 shall not apply to any rule promulgated under sub- section (a)(1)(B). The contents and adequacy of any statement required by subsection (b)(1)(D) shall not be subject to judicial review in any re- spect. (f) Definitions of banks, savings and loan institu- tions, and Federal credit unions (1) Repealed. Pub. L. 111–203, title X, § 1092(2), July 21, 2010, 124 Stat. 2095 (2) DEFINITION.—For purposes of this sub- chapter, the term ‘‘bank’’ means— (A) national banks and Federal branches and Federal agencies of foreign banks; (B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Fed- eral branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or controlled by for- eign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.]; and (C) banks insured by the Federal Deposit In- surance Corporation (other than banks re- ferred to in subparagraph (A) or (B)) and in- sured State branches of foreign banks. (3) For purposes of this subchapter, the term ‘‘savings and loan institution’’ has the same meaning as in section 1813 of title 12. (4) For purposes of this subchapter, the term ‘‘Federal credit union’’ has the same meaning as in sections 1766 and 1786 of title 12. The terms used in this paragraph 2 that are not defined in this subchapter or otherwise defined in section 1813(s) of title 12 shall have the mean- ing given to them in section 3101 of title 12. (g) Exemptions and stays from application of rules; procedures (1) Any person to whom a rule under sub- section (a)(1)(B) of this section applies may peti- tion the Commission for an exemption from such rule. (2) If, on its own motion or on the basis of a petition under paragraph (1), the Commission finds that the application of a rule prescribed under subsection (a)(1)(B) to any person or class or 3 persons is not necessary to prevent the un- fair or deceptive act or practice to which the rule relates, the Commission may exempt such person or class from all or part of such rule. Sec- tion 553 of title 5 shall apply to action under this paragraph. (3) Neither the pendency of a proceeding under this subsection respecting an exemption from a rule, nor the pendency of judicial proceedings to review the Commission’s action or failure to act under this subsection, shall stay the applica- bility of such rule under subsection (a)(1)(B). (h) Restriction on rulemaking authority of Com- mission respecting children’s advertising proceedings pending on May 28, 1980 The Commission shall not have any authority to promulgate any rule in the children’s adver- tising proceeding pending on May 28, 1980, or in any substantially similar proceeding on the basis of a determination by the Commission that such advertising constitutes an unfair act or practice in or affecting commerce. (i) Meetings with outside parties (1) For purposes of this subsection, the term ‘‘outside party’’ means any person other than (A) a Commissioner; (B) an officer or employee of the Commission; or (C) any person who has entered into a contract or any other agreement or arrangement with the Commission to provide any goods or services (including consulting serv- ices) to the Commission. (2) Not later than 60 days after May 28, 1980, the Commission shall publish a proposed rule, and not later than 180 days after May 28, 1980, the Commission shall promulgate a final rule, which shall authorize the Commission or any Commissioner to meet with any outside party concerning any rulemaking proceeding of the Commission. Such rule shall provide that— (A) notice of any such meeting shall be in- cluded in any weekly calendar prepared by the Commission; and (B) a verbatim record or a summary of any such meeting, or of any communication relat- ing to any such meeting, shall be kept, made available to the public, and included in the rulemaking record. (j) Communications by investigative personnel with staff of Commission concerning matters outside rulemaking record prohibited Not later than 60 days after May 28, 1980, the Commission shall publish a proposed rule, and Page 82 TITLE 15—COMMERCE AND TRADE § 57a not later than 180 days after May 28, 1980, the Commission shall promulgate a final rule, which shall prohibit any officer, employee, or agent of the Commission with any investigative responsi- bility or other responsibility relating to any rulemaking proceeding within any operating bu- reau of the Commission, from communicating or causing to be communicated to any Commis- sioner or to the personal staff of any Commis- sioner any fact which is relevant to the merits of such proceeding and which is not on the rule- making record of such proceeding, unless such communication is made available to the public and is included in the rulemaking record. The provisions of this subsection shall not apply to any communication to the extent such commu- nication is required for the disposition of ex parte matters as authorized by law. (Sept. 26, 1914, ch. 311, § 18, as added Pub. L. 93–637, title II, § 202(a), Jan. 4, 1975, 88 Stat. 2193; amended Pub. L. 96–37, § 1(c), July 23, 1979, 93 Stat. 95; Pub. L. 96–221, title VI, § 610(b), Mar. 31, 1980, 94 Stat. 174; Pub. L. 96–252, §§ 7–11(a), 12, May 28, 1980, 94 Stat. 376–379; Pub. L. 100–86, title VII, § 715(c), Aug. 10, 1987, 101 Stat. 655; Pub. L. 101–73, title VII, § 744(t), Aug. 9, 1989, 103 Stat. 441; Pub. L. 102–242, title II, § 212(g)(2), Dec. 19, 1991, 105 Stat. 2302; Pub. L. 102–550, title XVI, § 1604(a)(9), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 103–312, §§ 3, 5, Aug. 26, 1994, 108 Stat. 1691, 1692; Pub. L. 103–437, § 5(a), Nov. 2, 1994, 108 Stat. 4582; Pub. L. 109–351, title VII, § 725(g), Oct. 13, 2006, 120 Stat. 2002; Pub. L. 109–356, title I, § 123(g), Oct. 16, 2006, 120 Stat. 2029; Pub. L. 111–203, title X, § 1092, July 21, 2010, 124 Stat. 2094.) Editorial Notes REFERENCES IN TEXT Sections 25 and 25A of the Federal Reserve Act, re- ferred to in subsec. (f)(2)(B), are classified to sub- chapters I (§ 601 et seq.) and II (§ 611 et seq.), respec- tively, of chapter 6 of Title 12, Banks and Banking. PRIOR PROVISIONS A prior section 18 of act Sept. 26, 1914, ch. 311, was re- numbered section 28 and is classified to section 58 of this title. AMENDMENTS 2010—Subsec. (f). Pub. L. 111–203, § 1092(1), inserted subsec. heading. Subsec. (f)(1). Pub. L. 111–203, § 1092(2), struck out par. (1) which related to prevention of unfair or deceptive acts or practices in or affecting commerce. Subsec. (f)(2). Pub. L. 111–203, § 1092(4)(A), substituted ‘‘Definition’’ for ‘‘Enforcement’’ in heading and ‘‘For purposes of this subchapter, the term ‘bank’ means’’ for ‘‘Compliance with regulations prescribed under this subsection shall be enforced under section 1818 of title 12, in the case of’’ in introductory provisions. Subsec. (f)(2)(A). Pub. L. 111–203, § 1092(4)(B), struck out ‘‘, by the division of consumer affairs established by the Office of the Comptroller of the Currency’’ be- fore semicolon at end. Subsec. (f)(2)(B). Pub. L. 111–203, § 1092(4)(C), sub- stituted ‘‘25A’’ for ‘‘25(a)’’ and struck out ‘‘, by the di- vision of consumer affairs established by the Board of Governors of the Federal Reserve System’’ before ‘‘; and’’. Subsec. (f)(2)(C). Pub. L. 111–203, § 1092(4)(D), inserted ‘‘than’’ after ‘‘other’’ and struck out ‘‘, by the division of consumer affairs established by the Board of Direc- tors of the Federal Deposit Insurance Corporation’’ be- fore period at end. Subsec. (f)(3). Pub. L. 111–203, § 1092(5), substituted ‘‘For purposes of this subchapter, the term ‘savings and loan institution’ has the same meaning as in’’ for ‘‘Compliance with regulations prescribed under this subsection shall be enforced under section 1818 of title 12 with respect to savings associations as defined in’’. Subsec. (f)(4). Pub. L. 111–203, § 1092(6), substituted ‘‘For purposes of this subchapter, the term ‘Federal credit union’ has the same meaning as in’’ for ‘‘Compli- ance with regulations prescribed under this subsection shall be enforced with respect to Federal credit unions under’’. Subsec. (f)(5) to (7). Pub. L. 111–203, § 1092(3), struck out pars. (5) to (7) which related to violation of regula- tions, authority to make rules relating to compliance, and annual report to Congress by each agency exer- cising authority. 2006—Subsec. (f)(2)(A), (B). Pub. L. 109–351 and Pub. L. 109–356 amended par. (2) identically, striking out ‘‘, banks operating under the code of law for the Dis- trict of Columbia,’’ after ‘‘national banks’’ in subpar. (A) and ‘‘and banks operating under the code of law for the District of Columbia’’ after ‘‘(other than national banks’’ in subpar. (B). 1994—Subsec. (a)(1). Pub. L. 103–312, § 3(b), substituted ‘‘subsection (h)’’ for ‘‘subsection (i)’’ in introductory provisions. Subsec. (b)(2)(B), (C). Pub. L. 103–437 substituted ‘‘Committee on Energy and Commerce’’ for ‘‘Com- mittee on Interstate and Foreign Commerce’’. Subsec. (b)(3). Pub. L. 103–312, § 5, added par. (3). Subsecs. (h) to (k). Pub. L. 103–312, § 3(a), redesignated subsecs. (i) to (k) as (h) to (j), respectively, and struck out former subsec. (h) which provided for compensation for attorney fees, expert witness fees, etc., incurred in rulemaking proceedings, limitation on amount, and es- tablishment of small business outreach program. 1992—Subsec. (f)(2)(A). Pub. L. 102–550 substituted ‘‘di- vision’’ for ‘‘divisions’’. 1991—Subsec. (f). Pub. L. 102–242, § 212(g)(2)(B), in- serted at end ‘‘The terms used in this paragraph that are not defined in this subchapter or otherwise defined in section 1813(s) of title 12 shall have the meaning given to them in section 3101 of title 12.’’ Subsec. (f)(2). Pub. L. 102–242, § 212(g)(2)(A), added par. (2) and struck out former par. (2) which read as follows: ‘‘Compliance with regulations prescribed under this subsection shall be enforced under section 1818 of title 12, in the case of— ‘‘(A) national banks and banks operating under the code of law for the District of Columbia, by the divi- sion of consumer affairs established by the Comp- troller of the Currency; ‘‘(B) member banks of the Federal Reserve System (other than banks referred to in subparagraph (A)) by the division of consumer affairs established by the Board of Governors of the Federal Reserve System; and ‘‘(C) banks insured by the Federal Deposit Insur- ance Corporation (other than banks referred to in subparagraph (A) or (B)), by the division of consumer affairs established by the Board of Directors of the Federal Deposit Insurance Corporation.’’ 1989—Subsec. (f)(3). Pub. L. 101–73 amended par. (3) generally. Prior to amendment, par. (3) read as follows: ‘‘Compliance with regulations prescribed under this subsection shall be enforced under section 5 of the Home Owners’ Loan Act of 1933 (12 U.S.C. 1464) with re- spect to Federal savings and loan associations, section 407 of the National Housing Act (12 U.S.C. 1730) with re- spect to insured institutions, and sections 6(i) and 17 of the Federal Home Loan Bank Act (12 U.S.C. 1426(i), 1437) with respect to savings and loan institutions which are members of a Federal Home Loan Bank, by a division of consumer affairs to be established by the Federal Home Loan Bank Board pursuant to the Fed- eral Home Loan Bank Act.’’ 1987—Subsec. (f)(1). Pub. L. 100–86, § 715(c)(1), (2), in second sentence inserted ‘‘and the National Credit Union Administration Board (with respect to Federal Page 83 TITLE 15—COMMERCE AND TRADE § 57a credit unions described in paragraph (4))’’ and in last sentence inserted ‘‘or Federal credit unions described in paragraph (4),’’ in two places, substituted ‘‘any such’’ for ‘‘either such’’, and inserted ‘‘, savings and loan institutions or Federal credit unions’’. Subsec. (f)(4) to (7). Pub. L. 100–86, § 715(c)(3), added par. (4) and redesignated former pars. (4) to (6) as (5) to (7), respectively. 1980—Subsec. (a)(1). Pub. L. 96–252, §§ 7, 11(a)(2), in provisions preceding subpar. (A) substituted ‘‘Except as provided in subsection (i), the’’ for ‘‘The’’ and in sub- par. (B) inserted ‘‘, except that the Commission shall not develop or promulgate any trade rule or regulation with regard to the regulation of the development and utilization of the standards and certification activities pursuant to this section’’ after ‘‘section 45(a)(1) of this title)’’. Subsec. (b). Pub. L. 96–252, §§ 8(a), 11(a)(3), designated existing provisions as par. (1) and cls. (1) to (4) thereof as subpars. (A) to (D) and, subpar. (A) thereof, inserted ‘‘the text of the rule, including any alternatives, which the Commission proposes to promulgate, and’’ after ‘‘particularity’’, and added par. (2). Subsec. (c). Pub. L. 96–252, § 8(b)(1), in provisions pre- ceding par. (1) substituted ‘‘subsection (b)(1)(C)’’ for ‘‘subsection (b)(3)’’. Subsec. (c)(1). Pub. L. 96–252, § 9(a)(2), added par. (1). Former par. (1) redesignated (2). Subsec. (c)(2). Pub. L. 96–252, § 9(a)(1), (b)(1), redesig- nated former par. (1) as (2), substituted ‘‘paragraph (3)’’ for ‘‘paragraph (2)’’ and ‘‘paragraph (3)(B)’’ for ‘‘para- graph (2)(B)’’. Former par. (2) redesignated (3). Subsec. (c)(3). Pub. L. 96–252, § 9(a)(1), (b)(2), redesig- nated former par. (2) as (3) and substituted ‘‘paragraph (2)’’ for ‘‘paragraph (1)’’. Former par. (3) redesignated (4). Subsec. (c)(4), (5). Pub. L. 96–252, § 9(a)(1), (b)(3), redes- ignated former par. (3) as (4) and substituted in subpar. (A) ‘‘paragraph (2) and (3)’’ for ‘‘paragraphs (1) and (2)’’. Former par. (4) redesignated (5). Subsec. (e). Pub. L. 96–252, §§ 8(b)(2), 9(c), substituted in par. (1)(B) ‘‘subsection (c)(5)’’ for ‘‘subsection (c)(4)’’ and in par. (5)(C) ‘‘subsection (b)(1)(D)’’ for ‘‘subsection (b)(4)’’. Subsec. (f)(6). Pub. L. 96–221 struck out requirement that the report be made not later than every March 15. Subsec. (h)(2). Pub. L. 96–252, § 10(b), substituted pro- visions reserving an amount equal to 25 percent of the amount appropriated for the payment of compensation under this subsection to be available solely for the pay- ment of compensation to persons who either would be regulated by a proposed rule or represent persons who would be so regulated for provisions restricting the ag- gregate amount of compensation paid under this sub- section in any fiscal year to all persons, who in rule- making proceedings in which they receive compensa- tion, are persons who would be regulated by the pro- posed rule or represent persons who would be so regu- lated, to an amount not in excess of 25 percent of the aggregate amount paid as compensation under this sub- section. Subsec. (h)(3). Pub. L. 96–252, § 10(a), (e), temporarily added par. (3) and redesignated former par. (3) as (4). See Effective and Termination Dates of 1980 Amend- ments note below. Subsec. (h)(4). Pub. L. 96–252, § 10(a), (c), (e), tempo- rarily redesignated former par. (3) as (4) and sub- stituted ‘‘$750,000’’ for ‘‘$1,000,000’’. See Effective and Termination Dates of 1980 Amendments note below. Subsec. (h)(5). Pub. L. 96–252, § 10(d), (e), added par. (5) to be redesignated (4) effective Sept. 30, 1983. See Effec- tive and Termination Dates of 1980 Amendments note below. Subsec. (i). Pub. L. 96–252, § 11(a)(1), added subsec. (i). Subsecs. (j), (k). Pub. L. 96–252, § 12, added subsecs. (j) and (k). 1979—Subsec. (f)(1). Pub. L. 96–37, § 1(c)(1), inserted provisions relating to savings and loan institutions and to regulations with respect to savings and loan institu- tions promulgated by Federal Home Loan Bank Board. Subsec. (f)(3) to (6). Pub. L. 96–37, § 1(c)(2), added par. (3) and redesignated former pars. (3) to (5) as (4) to (6), respectively. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Energy and Commerce of House of Representatives treated as referring to Committee on Commerce of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Congress. Committee on Commerce of House of Representatives changed to Committee on En- ergy and Commerce of House of Representatives, and jurisdiction over matters relating to securities and ex- changes and insurance generally transferred to Com- mittee on Financial Services of House of Representa- tives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by section 5 of Pub. L. 103–312 applicable only to rulemaking proceedings initiated after Aug. 26, 1994, and not to be construed to affect in any manner a rulemaking proceeding initiated before such date, see section 15(b) of Pub. L. 103–312, set out as a note under section 45 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improve- ment Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title. EFFECTIVE AND TERMINATION DATES OF 1980 AMENDMENTS Pub. L. 96–252, § 10(e), May 28, 1980, 94 Stat. 378, pro- vided that: ‘‘The amendments made in subsection (a) and subsection (c) [amending this section] are repealed, effective at the end of fiscal year 1982. Effective upon such repeal, paragraph (5) of section 18(h) of the Fed- eral Trade Commission Act [subsec. (h)(5) of this sec- tion], as added by subsection (d), is redesignated as paragraph (4) of section 18(h) of such Act.’’ Pub. L. 97–377, title I, § 101(d), Dec. 21, 1982, 96 Stat. 1866, 1870, provided in part that: ‘‘Notwithstanding any other provision of law, the provisions of sections 10 [amending this section and enacting provision set out as first paragraph of this note], 11(b) [set out as a note below], 18 [set out as a note under section 57c of this title], 20 [set out as a note under section 57c of this title] and 21 [enacting section 57a–1 of this title and en- acting a provision set out as a note under section 57a–1 of this title], of the Federal Trade Commission Im- provements Act of 1980 (Public Law 96–252; 94 Stat. 374) are hereby extended until the termination date set forth in section 102(c) of H.J. Res. 631 [Sept. 30, 1983] as enacted into law [Pub. L. 97–377], notwithstanding sub- sections 10(e) [see paragraph above] and 21(i) [set out as a note under section 57a–1 of this title] of the Federal Trade Commission Improvements Act of 1980 (Public Law 96–252; 94 Stat. 374).’’ Pub. L. 96–252, § 11(c), May 28, 1980, 94 Stat. 379, pro- vided that: ‘‘The amendments made in subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [May 28, 1980]. The children’s advertising proceeding pending on the date of the en- actment of this Act shall not proceed further until such time as the Commission has complied with section 18(b)(1)(A) of the Federal Trade Commission Act [sub- sec. (b)(1)(A) of this section], as amended by subsection Page 84 TITLE 15—COMMERCE AND TRADE § 57a–1 (a)(3) and as so redesignated in section 8(a). In any such further proceeding, interested parties shall be given a reasonable opportunity to present their views in ac- cordance with section 18(b)(1)(B) of the Federal Trade Commission Act, as so redesignated in section 8(a) [subsec. (b)(1)(B) of this section], section 18(b)(1)(C) of such Act, as so redesignated in section 8(a) [subsec. (b)(1)(C) of this section], and section 18(c) of such Act (15 U.S.C. 57a(c)).’’ Amendment by Pub. L. 96–252 effective May 28, 1980, see section 23 of Pub. L. 96–252, set out as an Effective Date of 1980 Amendment note under section 45 of this title. Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms and clauses required to be prescribed to be promulgated at least one year prior to such effec- tive date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 1602 of this title. RESTRICTION ON USE OF FUNDS FOR PURPOSE OF INITIATING NEW RULEMAKING PROCEEDING Pub. L. 96–252, § 11(b), May 28, 1980, 94 Stat. 379, pro- hibited the Federal Trade Commission from using any funds authorized to be appropriated to carry out this subchapter for fiscal year 1980, 1981, or 1982 (or 1983 as extended by Pub. L. 97–377, title I § 101(d), Dec. 21, 1982, 96 Stat. 1870), under section 57c of this title, for the pur- pose of initiating any new rulemaking proceeding under this section which was intended to result in, or which might result in, the promulgation of any rule by the Commission which prohibited or otherwise regu- lated any commercial advertising on the basis of a de- termination by the Commission that such commercial advertising constituted an unfair act or practice in or affecting commerce. RESTRICTION ON USE OF FUNDS RESPECTING REGULATION OF FUNERAL INDUSTRY; EXCEPTION Pub. L. 96–252, § 19, May 28, 1980, 94 Stat. 391, prohib- ited the Federal Trade Commission from using any funds authorized to be appropriated to carry out this subchapter for fiscal year 1980, 1981, or 1982, under sec- tion 57c of this title to issue the proposed trade regula- tion rule which was published in the Federal Register of Aug. 29, 1975, beginning at page 39901, and which re- lates to the regulation of funeral industry practices, in final form or a substantially similar proposed or final trade regulation rule unless the final rule met specific requirements and the Commission followed specific procedures. OVERSIGHT HEARINGS WITH RESPECT TO FEDERAL TRADE COMMISSION Pub. L. 96–252, § 22, May 28, 1980, 94 Stat. 396, required the Consumer Subcommittee of the Committee on Commerce, Science, and Transportation of the Senate to conduct an oversight hearing with respect to the Federal Trade Commission at least once during the first 6 calendar months, and at least once during the last 6 calendar months, of each of the fiscal years 1980, 1981, and 1982. APPLICABILITY OF UNFAIR OR DECEPTIVE ACTS OR PRACTICES RULEMAKING PROCEDURES TO RULES CLASSIFYING CORPORATIONS PROMULGATED PRIOR TO JANUARY 4, 1975 Pub. L. 93–637, title II, § 202(c), Jan. 4, 1975, 88 Stat. 2198, provided that: ‘‘(1) The amendments made by subsections (a) and (b) of this section [enacting this section and amending sec- tion 46 of this title] shall not affect the validity of any rule which was promulgated under section 6(g) of the Federal Trade Commission Act [section 46(g) of this title] prior to the date of enactment of this section [Jan. 4, 1975]. Any proposed rule under section 6(g) of such Act with respect to which presentation of data, views, and arguments was substantially completed be- fore such date may be promulgated in the same manner and with the same validity as such rule could have been promulgated had this section not been enacted. ‘‘(2) If a rule described in paragraph (1) of this sub- section is valid and if section 18 of the Federal Trade Commission Act [this section] would have applied to such rule had such rule been promulgated after the date of enactment of this Act, any substantive change in the rule after it has been promulgated shall be made in accordance with such section 18.’’ STUDY, EVALUATION, AND REPORT BY FEDERAL TRADE COMMISSION AND ADMINISTRATIVE CONFERENCE OF UNITED STATES ON UNFAIR OR DECEPTIVE ACTS OR PRACTICES; RULEMAKING PROCEDURES Pub. L. 93–637, title II, § 202(d), Jan. 4, 1975, 88 Stat. 2198, as amended by Pub. L. 94–299, § 2, May 29, 1976, 90 Stat. 588; Pub. L. 95–558, Nov. 1, 1978, 92 Stat. 2130, re- quired the Federal Trade Commission and the Adminis- trative Conference of the United States, not later than June 30, 1979, to conduct a study and submit a report to Congress on the rulemaking procedures under section 57a of this title. § 57a–1. Omitted Editorial Notes CODIFICATION Section, Pub. L. 96–252, § 21(a)–(h), May 28, 1980, 94 Stat. 393; H. Res. 549, Mar. 25, 1980; Pub. L. 98–620, title IV, § 402(13), Nov. 8, 1984, 98 Stat. 3358, provided proce- dures for review by Congress of final rules promulgated by the Federal Trade Commission. Statutory Notes and Related Subsidiaries EFFECTIVE DATE; TERMINATION DATE Pub. L. 96–252, § 21(i), May 28, 1980, 94 Stat. 396, pro- vided that: ‘‘The provisions of this section shall take effect on the date of the enactment of this Act [May 28, 1980] and shall cease to have any force or effect after September 30, 1982.’’ Pub. L. 97–377, title I, § 101(d), Dec. 21, 1982, 96 Stat. 1870, provided in part that notwithstanding any other provision of law, the provisions of section 21 of the Fed- eral Trade Commission Improvements Act of 1980 [Pub. L. 96–252], which enacted this section and enacted pro- visions set out as a note under this section, were ex- tended until Sept. 30, 1983, notwithstanding section 21(i) of such Act. § 57b. Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices (a) Suits by Commission against persons, part- nerships, or corporations; jurisdiction; relief for dishonest or fraudulent acts (1) If any person, partnership, or corporation violates any rule under this subchapter respect- ing unfair or deceptive acts or practices (other than an interpretive rule, or a rule violation of which the Commission has provided is not an unfair or deceptive act or practice in violation of section 45(a) of this title), then the Commis- sion may commence a civil action against such person, partnership, or corporation for relief under subsection (b) in a United States district court or in any court of competent jurisdiction of a State. (2) If any person, partnership, or corporation engages in any unfair or deceptive act or prac-