15 U.S.C. § 57b — Civil actions for violations of rules and

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- Page 85 TITLE 15—COMMERCE AND TRADE § 57b–1 tice (within the meaning of section 45(a)(1) of this title) with respect to which the Commission has issued a final cease and desist order which is applicable to such person, partnership, or cor- poration, then the Commission may commence a civil action against such person, partnership, or corporation in a United States district court or in any court of competent jurisdiction of a State. If the Commission satisfies the court that the act or practice to which the cease and desist order relates is one which a reasonable man would have known under the circumstances was dishonest or fraudulent, the court may grant re- lief under subsection (b). (b) Nature of relief available The court in an action under subsection (a) shall have jurisdiction to grant such relief as the court finds necessary to redress injury to consumers or other persons, partnerships, and corporations resulting from the rule violation or the unfair or deceptive act or practice, as the case may be. Such relief may include, but shall not be limited to, rescission or reformation of contracts, the refund of money or return of property, the payment of damages, and public notification respecting the rule violation or the unfair or deceptive act or practice, as the case may be; except that nothing in this subsection is intended to authorize the imposition of any ex- emplary or punitive damages. (c) Conclusiveness of findings of Commission in cease and desist proceedings; notice of judi- cial proceedings to injured persons, etc. (1) If (A) a cease and desist order issued under section 45(b) of this title has become final under section 45(g) of this title with respect to any person’s, partnership’s, or corporation’s rule vio- lation or unfair or deceptive act or practice, and (B) an action under this section is brought with respect to such person’s, partnership’s, or cor- poration’s rule violation or act or practice, then the findings of the Commission as to the mate- rial facts in the proceeding under section 45(b) of this title with respect to such person’s, partner- ship’s, or corporation’s rule violation or act or practice, shall be conclusive unless (i) the terms of such cease and desist order expressly provide that the Commission’s findings shall not be con- clusive, or (ii) the order became final by reason of section 45(g)(1) of this title, in which case such finding shall be conclusive if supported by evidence. (2) The court shall cause notice of an action under this section to be given in a manner which is reasonably calculated, under all of the cir- cumstances, to apprise the persons, partner- ships, and corporations allegedly injured by the defendant’s rule violation or act or practice of the pendency of such action. Such notice may, in the discretion of the court, be given by publi- cation. (d) Time for bringing of actions No action may be brought by the Commission under this section more than 3 years after the rule violation to which an action under sub- section (a)(1) relates, or the unfair or deceptive act or practice to which an action under sub- section (a)(2) relates; except that if a cease and desist order with respect to any person’s, part- nership’s, or corporation’s rule violation or un- fair or deceptive act or practice has become final and such order was issued in a proceeding under section 45(b) of this title which was com- menced not later than 3 years after the rule vio- lation or act or practice occurred, a civil action may be commenced under this section against such person, partnership, or corporation at any time before the expiration of one year after such order becomes final. (e) Availability of additional Federal or State remedies; other authority of Commission un- affected Remedies provided in this section are in addi- tion to, and not in lieu of, any other remedy or right of action provided by State or Federal law. Nothing in this section shall be construed to af- fect any authority of the Commission under any other provision of law. (Sept. 26, 1914, ch. 311, § 19, as added Pub. L. 93–637, title II, § 206(a), Jan. 4, 1975, 88 Stat. 2201.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 93–637, title II, § 206(b), Jan. 4, 1975, 88 Stat. 2202, provided that: ‘‘The amendment made by sub- section (a) of this section [enacting this section] shall not apply to— ‘‘(1) any violation of a rule to the extent that such violation occurred before the date of enactment of this Act [Jan. 4, 1975], or ‘‘(2) any act or practice with respect to which the Commission issues a cease-and-desist order, to the extent that such act or practice occurred before the date of enactment of this Act [Jan. 4, 1975], unless such order was issued after such date and the person, partnership or corporation against whom such an order was issued had been notified in the complaint, or in the notice or order attached thereto, that con- sumer redress may be sought.’’ § 57b–1. Civil investigative demands (a) Definitions For purposes of this section: (1) The terms ‘‘civil investigative demand’’ and ‘‘demand’’ mean any demand issued by the commission under subsection (c)(1). (2) The term ‘‘Commission investigation’’ means any inquiry conducted by a Commis- sion investigator for the purpose of ascertaining whether any person is or has been engaged in any unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title) or in any antitrust violations. (3) The term ‘‘Commission investigator’’ means any attorney or investigator employed by the Commission who is charged with the duty of enforcing or carrying into effect any provisions relating to unfair or deceptive acts or practices in or affecting commerce (within the meaning of section 45(a)(1) of this title) or any provisions relating to antitrust violations. (4) The term ‘‘custodian’’ means the custo- dian or any deputy custodian designated under section 57b–2(b)(2)(A) of this title. (5) The term ‘‘documentary material’’ in- cludes the original or any copy of any book, record, report, memorandum, paper, commu- nication, tabulation, chart, or other docu- ment.