Federal Trade 

Commission

Performance and 

Accountability Report

Fiscal Year 2009

The woRk oF The FedeRAl 

TRAde Commission is 

CRiTiCAl To PRoTeCTing And 

sTRengThening FRee And 

oPen mARkeTs And PRomoTing 

inFoRmed ConsumeR ChoiCe, 

boTh in The uniTed sTATes And 

ARound The woRld.
Federal Trade Commission

Performance and Accountability Report
Fiscal Year 

2009 iintroduction

About This Report

The Federal Trade commission’s (FTc) 

FY 2009 (FY) Performance and accountability 

report (Par) provides the results of the 

agency’s program and financial performance and 

demonstrates to the congress, the President, and 

the public the FTc’s commitment to its mission 

and accountability over the resources entrusted to it. 

This report, available at www.ftc.gov/par, includes 

information that satisfies the reporting requirements 

contained in the following legislation:

• Federal Managers’ Financial integrity act of 1982

• Government Performance and results act of 1993

• Government Management reform act of 1994

• reports consolidation act of 2000

• accountability of Tax Dollars act of 2002

• improper Payments information act of 2002

The performance and financial information contained 

in this report is summarized in a “summary of 

Financial and Performance information” report 

available at www.ftc.gov/par by February 2010.

Certificate of Excellence

The FTc received the association of Government accountants’ Certificate of Excellence 

in Accountability Reporting for its FY 2008 Par.
Federal Trade Comm ission

Performance and Accountability Report

iiintroduction

How This Report Is Organized 

This report includes four major sections plus supplemental information. 

1. M anagement’s Discussion and Analysis 

The Management’s Discussion and analysis (MD&a) provides an overview 

of the FTc’s mission and organization, a key performance measures overview, 

mission challenges, financial highlights, and management assurances on 

internal controls, financial systems, and compliance with laws and regulations.

2. Performance Section

The Performance section explains the FTc’s performance relative to its strategic 

goals and objectives, and includes an overview of how the performance data are 

verified and validated. 

 

 

 

3. Financial Section

The Financial section provides financial details, including the independent 

auditor’s report and audited financial statements. 

4. Other Accompanying Information

The other accompanying information provides management and 

performance challenges identified by the inspector General, along with 

the chairman’s response and a summary of financial statement audit and 

management assurances.

5. Appendices 

appendix a is a list of acronyms used throughout this report, 

and appendix B contains contact information and acknowledgements.
Fiscal Year 

2009 iiiintroduction

The FTC 

At-A-Glance 

History 

The federal government created the Bureau of 

corporations in 1903. in 1914, President Woodrow 

Wilson signed the Federal Trade commission act into 

law, and the Bureau of corporations became the FTc. 

Laws Enforced 

The FTc is a law enforcement agency with both 

consumer protection and competition jurisdiction in 

broad sectors of the economy. The agency administers 

a wide variety of laws and regulations, such as the 

Federal Trade commission act, Telemarketing sales 

rule, identity Theft act, Fair credit reporting act, 

and clayton act. 

Profile 

• The agency is headquartered in Washington, Dc, 

and operates with seven regions across the 

United states. 

• The agency had over 1,100 full-time equivalent 

employees at the end of FY 2009. 

• Total new budget authority for FY 2009 

was $259 million.

Did You Know?

• consumers are affected every day by the FTc’s activities. For example, 

consumers receive fewer telemarketing calls, obtain free credit reports, receive 

less spam, receive identity theft victim assistance, access truthful information 

about health and weight-loss products, pay lower prescription drug prices 

thanks to the availability of generic drugs, and enjoy competitive prices for 

goods as a result of merger reviews and actions taken by the FTc. 

• The agency manages the national Do not call (Dnc) registry, which 

gives consumers the opportunity to limit telemarketing calls. at the end 

of the fiscal year, there were more than 191 million active registrations on 

the Dnc registry. 

• over the past three years, the FTc has saved consumers over $1.4 billion in 

economic injury by stopping illegal practices. The FTc’s jurisdiction ranges 

from misleading health claims and deceptive lending practices to weight-loss 

schemes and business opportunity fraud. 

• in FY 2009, the FTc took action against mergers likely to harm competition 

in markets with a total of $22.3 billion in sales. The agency’s efforts to 

maintain aggressive competition among sellers benefit consumers through 

lower prices, higher quality products and services, additional choice, and 

greater innovation. 

• The FTc shares the more than 12.1 million fraud, identity theft, financial, 

and Dnc registry complaints it has collected during the past five years with 

more than 1,700 other law enforcement agencies across the United states, 

canada, and australia via the secure consumer sentinel network website.
Federal Trade Commission

Performance and Accountability Report ivintroduction

i

Message From 

the Chairman

Jon leibowitz 

chairman

t is my pleasure to present the Federal Trade 

commission’s Performance and accountability 

report for Fiscal Year 2009. This report presents 

the results of the agency’s strong program performance 

and sound financial management over the past 

year, and affords us the opportunity to show the 

american taxpayers how the FTc benefits consumers 

in broad sectors of the economy. Having served as a 

commissioner since 2004, i am honored that President 

obama designated me to serve as chairman of this 

remarkable agency. 

The FTc has two critical goals: protecting consumers 

and maintaining competition. To achieve these goals, 

we apply four objectives and related strategies: (1) 

identify illegal practices; (2) stop illegal practices 

through law enforcement; (3) prevent consumer injury 

through education of consumers and businesses; 

and (4) enhance consumer welfare through research, 

reports, advocacy, and international cooperation and 

exchange. These objectives set the course for us to 

accomplish our mission effectively. although our core 

goals and objectives remain steady, our agency also 

works to respond nimbly as we navigate the dynamic 

marketplace, rapidly changing technology, and 

increasing globalization.

This year, the nation’s financial crisis has required 

the agency to shift resources and priorities to meet the 

challenges of the economic downturn. in these 

difficult times, protecting consumers and promoting 

competition are more important than ever. Through 

the efforts of our dedicated staff, the FTc has 

responded expeditiously to the changing needs 

of american consumers. 

in the consumer protection area, the FTc has taken a 

number of actions to address the economic meltdown’s 

impact on consumers. We have warned consumers 

about economic stimulus scams and initiated a 

crackdown on frauds fueled by the recession, including 

numerous foreclosure rescue schemes. We have joined 

with our federal, state, and local law enforcement 

partners to coordinate law enforcement and outreach 

efforts for consumers in financial distress. Further, the 

FTc has given priority to addressing consumer privacy, 

including: online behavioral advertising; technology 

abuses; identity theft and data security; and “Do not 

call” violations. The FTc also has focused on deceptive 

marketing of health products, “green” marketing, and 

marketing to children. 

To maintain competition, the FTc has continued 

to actively enforce the antitrust laws in a range 

of industries of critical importance to american 

consumers, including: healthcare and pharmaceuticals, 

technology, energy, real estate, and retail. For example, 

in an effort to control health care costs, one priority is 

attacking collusive “pay-for-delay” settlements in the 

pharmaceutical industry that delay the introduction of 

generic drugs and cost consumers and the government 

billions of dollars each year. The agency also 

continues to pursue law enforcement actions against 

anticompetitive mergers and business conduct. 

We vigorously monitor and enforce compliance with 

consent orders as well as with the reporting obligations 

under the Hart-scott-rodino (Hsr) act. in addition, the 

FTc engages in an active program of workshops, reports, 

and advocacy letters to educate stakeholders about the 

importance of competition to consumers. 
Fiscal Year 

2009 v

“

introduction

in these difficult times, protecting consumers and 

promoting competition are more important than ever. 

Through the efforts of our dedicated staff, the FTc 

has responded expeditiously to the changing needs of 

american consumers.

To help achieve our mission, we reach out to our 

stakeholders—consumers, business representatives, and 

law enforcement partners—to help identify marketplace 

trends and challenges. We provide toll-free phone 

numbers and online complaint forms for the public to 

alert us to illegal practices. We invite stakeholders to 

workshops and hearings to discuss current issues and 

industry developments. our law enforcement partners, 

both domestic and foreign, help us ensure robust 

enforcement of consumer protection and antitrust laws, 

such as blocking mergers that could reduce competition. 

The FTc maximizes its law enforcement and deterrent 

impact through good press relations and an extensive 

consumer and business education program. To prevent 

further consumer injury we issue alerts to warn the 

public of emerging schemes, we post web pages, 

we publish brochures, and we use other innovative 

approaches to reach the public. The agency’s extensive 

education materials are available online in english at 

www.ftc.gov and in spanish at www.ftc.gov/ojo.

a critical component of our success is the FTc’s 

investment in retaining and training our employees. The 

FTc is fortunate to have a dedicated and knowledgeable 

staff of attorneys, economists, and other professionals 

who possess strong technical skills and experience. Their 

tireless work enables our small agency to leverage our 

resources and handle a growing workload. 

Furthermore, essential to FTc’s success in gaining 

organizational excellence is sound financial 

management. The FY 2009 independent financial audit 

resulted in the FTc’s 13th consecutive unqualified 

opinion, the highest audit opinion available. The 

independent auditors did not identify any material 

weaknesses, significant deficiencies, or instances of 

non-compliance with laws and regulations. in the 

Management assurances section (see p. 22), i provide 

my assurances that FTc has no material weaknesses 

to report. i am also pleased to report that the FTc 

financial and performance data presented in this report 

are complete, reliable, and accurate in keeping with the 

guidance from the office of Management and Budget. 

in accordance with the reports consolidation act 

of 2000, the inspector General (iG) identified key 

management and performance challenges facing the 

agency, and he assessed our progress in addressing them. 

agency management concurs that the issues identified 

by the iG are critical challenges, and with his assessment 

of our progress. Those challenges and our responses 

are discussed further in the other accompanying 

information (see p. 105). Moving forward, we will 

continue our efforts to tackle these matters proactively. 

i look forward to working with my fellow 

commissioners to maintain the culture of collegiality, 

consensus-building, and collective problem solving that 

uniquely characterizes the FTc. Together, we will work 

with the FTc’s talented and dedicated staff and our law 

enforcement partners as we pursue our critical consumer 

protection and competition missions in the face of the 

challenges brought by today’s tumultuous economy. 

Jon leibowitz 

november 13, 2009

”
Federal Trade Comm ission

Performance and Accountability Report

introduction

vi

Table of Contents

inTroDUcTion

about This report .......................................................................................................................................... i

How This report is organized ..................................................................................................................... ii

The FTc at-a-Glance ................................................................................................................................. iii

Message from the chairman ........................................................................................................................ iv

ManaGeMenT’s DiscUssion anD analYsis ................................................................................ 1

Mission and organization ............................................................................................................................. 2

 The FTc: our Purpose and History ................................................................................................ 3

 our organization ............................................................................................................................ 4

 our People ....................................................................................................................................... 6

Performance overview .................................................................................................................................. 7

 strategic and Performance Planning Framework .............................................................................. 7

 Key Performance Measures overview .............................................................................................. 8

 Performance Measures summary ................................................................................................... 14

agency Mission challenges ..........................................................................................................................15

Management assurances .............................................................................................................................. 22

 implementation of the Federal Managers’ Financial integrity act (FMFia) at the FTc ................ 22

 chairman’s FMFia statement of assurance .................................................................................. 23

Financial Highlights .................................................................................................................................... 25

PerForMance secTion .................................................................................................................... 31

introduction to Performance ........................................................................................................................ 32

 relationship of outputs to outcomes ............................................................................................ 32

 verification and validation of Performance Data ........................................................................... 33

 Performance Measure summary Table ........................................................................................... 35

strategic Goal #1: Protect consumers .......................................................................................................... 38

strategic Goal #2: Maintain competition .................................................................................................... 54
Fiscal Year 

2009 vii introduction

Financial secTion ............................................................................................................................ 75

Message from the chief Financial officer .................................................................................................... 76

inspector General’s Transmittal letter for audit report .............................................................................. 77

independent auditor’s report ...................................................................................................................... 79

Principal Financial statements ..................................................................................................................... 82

notes to the Financial statements ................................................................................................................ 87

oTHer accoMPanYinG inForMaTion .................................................................................... 105

inspector General-identified Management and Performance challenges ................................................... 106

chairman’s response to iG challenges ......................................................................................................111

summary of Financial statement audit and Management assurancs .........................................................113

improper Payments information act ..........................................................................................................114

aPPenDices ........................................................................................................................................... 115

acronyms ....................................................................................................................................................116

contact information and acknowledgements ............................................................................................118
Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

viii Federal Trade Comm ission

Performance and Accountability Report
1

Management’s 

Discussion and 

Analysis
2 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

Mission and 

Organization 

The work of the Federal Trade commission 

(FTc) is critical to protecting and 

strengthening free and open markets and 

promoting informed consumer choice, both in the 

United states and around the world. The FTc 

performs its mission through the use of a variety of 

tools, including law enforcement, rulemaking, research, 

studies on marketplace trends and legal developments, 

and consumer and business education. 

FTC’s Vision 

a U.s. economy characterized by vigorous competition 

among producers and consumer access to accurate 

information, yielding high-quality products at low 

prices and encouraging efficiency, innovation, and 

consumer choice. 

FTC’s Mission 

To prevent business practices that are anticompetitive or 

deceptive or unfair to consumers; to enhance informed 

consumer choice and public understanding of the 

competitive process; and to accomplish these missions 

without unduly burdening legitimate business activity. 
3 Fiscal Year 

2009

management’s discussion and analysis

The FT

c

C: Our Purpose and History

onsumers and businesses are likely to be more 

familiar with the work of the FTc than they 

think. in the consumer protection area, the 

care labels in clothes, product warranties, or stickers 

showing the energy costs of home appliances illustrate 

information that is required by the FTc. likewise, 

businesses must be familiar with the laws requiring 

truthful advertising and protecting consumers’ 

personally identifiable information and sensitive health 

information. These laws are administered by the FTc. 

each year, more people around the globe have come to 

understand that the competition among independent 

businesses is good for consumers, the businesses 

themselves, and the economy. competitive markets 

yield lower prices and better quality goods and 

services, and a vigorous marketplace provides the 

incentive and opportunity for the development 

of new ideas and innovative products and services. 

Many of the laws governing competition also are 

administered by the FTc. 

The FTc has a long tradition of maintaining a 

competitive marketplace for both consumers and 

businesses. When the FTc was created in 1914, its 

purpose was to prevent unfair methods of competition 

in commerce as part of the battle to “bust the trusts.” 

over the years, the congress passed additional laws 

giving the agency greater authority over anticompetitive 

practices. in 1938, the congress passed a broad 

prohibition against “unfair and deceptive acts or 

practices.” since then, the FTc also has been directed 

to administer a wide variety of other consumer 

protection laws and regulations, including the 

Telemarketing sales rule, the identity Theft act, 

and the equal credit opportunity act. 

FTC History and Laws

The FTc had its genesis in the supreme 

court’s 1911 decision in the standard 

oil case (standard oil co. v. U.s., 221 

U.s. 1 (1911)). in the aftermath of that 

decision, congress determined to create 

an administrative agency that would be 

directed to prevent “unfair methods of 

competition;” to give definition to that 

general prohibition; and to use a number 

of quasi-judicial powers to enforce that 

prohibition. The FTc act was later 

amended to prohibit unfair or deceptive 

acts or practices. since its creation in 

1914, congress has substantially increased 

the FTc’s enforcement responsibilities with respect to both of its goals, protecting 

consumers and maintaining competition. The FTc currently has enforcement and 

administrative responsibilities under 46 laws. For a description and further information 

on each law see http://www.ftc.gov/ogc/stats.shtm.
4 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

O

T

ur Organization

he FTc is an independent agency that reports 

to the congress on its actions. These actions 

include pursuing vigorous and effective law 

enforcement; advancing consumers’ interests by sharing 

its expertise with federal and state legislatures and U.s. 

and international government agencies; developing 

policy and research tools through hearings, workshops, 

and conferences; and creating practical and plainlanguage educational programs for consumers and 

businesses in a global marketplace with constantly 

changing technologies. 

The FTc is headed by a commission composed of 

five commissioners, nominated by the President and 

confirmed by the senate, each serving a seven-year 

term. The President chooses one commissioner to 

act as chairman. no more than three commissioners 

can be from the same political party. Jon leibowitz 

was designated to serve as chairman of the FTc 

on March 2, 2009, by President Barack H. obama. 

leibowitz was previously sworn in as a commissioner 

on september 3, 2004, following his nomination by the 

President and confirmation by the U.s. senate. at the 

end of the fiscal year, the commissioners were Pamela 

Jones Harbour, William e. Kovacic, and J. Thomas 

rosch. The fifth commissioner position was vacant.

The FTc commission: (left to right) Pamela Jones Harbour, commissioner; Jon leibowitz, chairman; 

William e. Kovacic, commissioner; J. Thomas rosch, commissioner
5 Fiscal Year 

2009

management’s discussion and analysis

The FTc’s mission is carried out by three bureaus: 

the Bureau of consumer Protection, the Bureau of 

competition, and the Bureau of economics. Work 

is aided by offices, including the office of General 

counsel, the office of inspector General, the office 

of international affairs, the office of the executive 

Director, and seven regions. 

Federal Trade Commission Organization Chart

Office of 

Administrative Law Judges

D. Michael Chappell

Office of 

Inspector General

John Seeba

Office of the Secretary

Donald S. Clark

Office of the 

Executive Director

Charles Schneider

Chairman

Jon Leibowitz

-----------

Chief of Staff

Joni Lupovitz

Commissioner

Pamela J. Harbour

Commissioner

William E. Kovacic

Commissioner

J. Thomas Rosch

Bureau of

Economics

Joseph Farrell

Office of the 

General Counsel

Willard K. Tom

Commissioner

Vacant

Office of 

International Affairs

Randolph W. Tritell

Office of 

Policy Planning

Susan S. DeSanti

Office of Public Affairs

Claudia Farrell (Acting)

Office of 

Congressional Relations

Jeanne Bumpus

Regions

Bureau of

Consumer Protection

David Vladeck

Bureau of

Competition

Richard Feinstein
6 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

The agency is headquartered in Washington, Dc, and operates with seven regions across the United states. 

The graphic below illustrates the locations of the FTc regions.

Our People

The FTc’s workforce is its greatest asset. The agency’s workforce consists of over 1,100 civil service employees 

dedicated to addressing the major concerns of american consumers. The graph below shows workforce composition 

by category.
7 Fiscal Year 

2009

management’s discussion and analysis

Performance 

Overview

This section explains the FTc’s strategic 

and performance planning framework and 

summarizes the key performance measures 

reported in the Performance section. The Performance 

section contains details of program performance results, 

trend data by fiscal year, resources, strategies, factors 

affecting performance, and the procedures used to 

verify and validate the performance data. The financial 

data and performance results described in this report 

enable the FTc to administer its programs, gauge their 

success, and make adjustments necessary to improve 

program quality for the public. The steps the FTc has 

taken to ensure the performance information it reports 

is complete, accurate, and consistent are described in the 

Performance section: verification and validation 

of Performance Data. 

Strategic and Performance 

Planning Framework 

Performance Measurement Methodology 

The FY 2009 performance planning framework originates 

from the FTc’s Fiscal Years 2006 to 2011 strategic Plan, 

available at www.ftc.gov/opp/gpra/spFY06FY11.pdf and 

is supported by the FTc’s Performance Plan, available at 

www.ftc.gov/opp/gpra/2010_performance_plan.pdf.

in FY 2009, the agency updated its strategic Plan. 

The effort included reassessing the agency’s overall 

performance framework and evaluating performance 

measures to ensure they provide the most relevant 

and meaningful information on strategic goals and 

objectives. The strategic Plan for Fiscal Years 2009 

to 2014 becomes effective in FY 2010.

The FTc’s work is structured around two strategic 

goals and eight objectives. Performance measures for 

the eight objectives are used to gauge the FTc’s success 

for each objective.

strategic Goals statements of long-term aims outlined in the strategic Plan, which define how the agency 

carries out its mission.

objectives statements of how the FTc plans to achieve the strategic goals.

Performance Measures indicators used to gauge success in reaching strategic objectives.

Key Measures Measures that best indicate whether agency activities are achieving the desired outcome 

associated with the related objective.

Targets expressions of desired performance levels or specific desired results targeted for a given 

fiscal year. Targets are expressed in quantifiable terms.
8 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

strategic Goals objectives 

Protect consumers

Prevent fraud, deception, a

practices in the marketplace 

gross costs 

less: earned revenue 

net costs 

nd unfair business 

$147 million

($16 million)

$131 million

Identify fraud, deception, and unfair practices that cause the greatest consumer injury. 

Stop fraud, deception, unfairness, and other unlawful practices through 

law enforcement. 

Prevent consumer injury through education. 

Enhance consumer welfare through research, reports, advocacy, and international 

cooperation and exchange. 

Maintain competition

Prevent anticompetitive mergers and 

other anticompetitive business practices 

in the marketplace 

gross costs $110 million

less: earned revenue ($42 million)

net costs $68 million

Identify anticompetitive mergers and practices that cause the greatest consumer injury. 

Stop anticompetitive mergers and business practices through law enforcement.

Prevent consumer injury through education. 

Enhance consumer welfare through research, reports, advocacy, and international 

cooperation and exchange. 

Key Performance Measures Overview

The FTc has established various measures for assessing 

program performance against strategic goals and 

objectives. of the 33 measures, 11 are considered 

“key” measures because they best indicate whether 

agency activities are achieving the desired outcome 

associated with the related objective. 

For each measure, the FTc has established a 

performance target. This report presents actual 

results in comparison to established targets for 

the past three fiscal years. 

The following table summarizes actual 

performance during FY 2009 against established 

targets for all of the FTc’s key performance 

measures and provides a synopsis of related 

highlights. The table also includes actual results 

from the past two fiscal years. The FTc met or 

exceeded nine of the 11 key performance measures.

legend for Upcoming Performance section Tables

a	signifies that the target is met or exceeded or that the FTc is on track to meet the five-year target.

r		 signifies that the target is not met or that the FTc is not on track to meet the five-year target.

n/a signifies that the performance measure does not have a five-year target.
9 Fiscal Year 

2009

management’s discussion and analysis

sTraTeGic Goal 1: ProTecT consUMers

objective 1.1 identify Fraud, Deception, and Unfair Practices That cause the Greatest 

consumer injury

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

1.1.2 The percentage of the agency’s 

consumer protection law enforcement actions 

that are responsive to consumer complaint 

information gathered by the agency.

76% 71% 65% 79% a n/a

PerFormance HigHligHts

in July 2009, the FTc announced a law enforcement crackdown, responsive to the consumer complaint information gathered by the 

agency, on scammers trying to take advantage of the economic downturn to bilk vulnerable consumers through a variety of schemes. 

Dubbed “operation short change,” the sweep included 15 FTc cases, 44 law enforcement actions by the Department of Justice, and 

actions by at least 13 states and the District of columbia. in eight of the cases announced, the FTc alleged that the practices of John 

Beck/Mentoring of america, Wagner ramos Borges, Grants For You now, cash Grant institute, Mutual consolidated savings, Google 

Money Tree, Penbrook Productions, and classic closeouts were unfair or deceptive. in some of the cases, the agency also charged the 

defendants with making illegal electronic funds transfers or violating the Telemarketing sales rule. 

objective 1.2 stop Fraud, Deception, Unfairness, and other Unlawful Practices 

Through law enforcement

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

1.2.1 save consumers money each year $519 million $474 million $400 million $505 a $2 billion a

through law enforcement. million

PerFormance HigHligHts

in FY 2009, the FTc continued to combat the deceptive marketing of health products, particularly products making disease prevention 

or weight loss claims. in January 2009, the agency charged the Xacta 3000, inc., marketers of Kinoki Foot Pads, with deceptive 

advertising, including claims that use of the foot pads would remove toxins from the body; treat high blood pressure, depression, and a 

host of other medical conditions. in March 2009, roex, inc., a marketer of dietary supplements and health-related devices, agreed to settle 

FTc charges that they deceptively claimed their products treated, reduced the risk of, or prevented a wide variety of serious diseases and 

medical conditions, including cancer, Hiv/aiDs, diabetes, strokes and heart attacks, alzheimer’s disease, Parkinson’s disease, arthritis, 

multiple sclerosis and other autoimmune diseases, ulcers, herpes, asthma, and glaucoma. in april 2009, the FTc charged nutraceuticals 

international, llc and stella labs, llc, the suppliers of supposed Hoodia gordonii with deceptive advertising for claiming that 

using their product would lead to weight loss and appetite suppression. in these three cases alone, the FTc saved consumers an 

estimated $46.5 million.
10 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

sTraTeGic Goal 1: ProTecT cUsToMers (continued)

objective 1.3 Prevent consumer injury Through education

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

1.3.4 Track (a) the number of times print 

media publish articles that refer to the 

FTc consumer protection activities and 

(B) the circulation of media that publish 

those articles.

(a) 3,066 

articles

(B) circulation 

of 863 million 

(a) 3,100 

articles 

(B) circulation 

of 791 million 

(a) 2,750 

articles

(B) circulation 

of 750 million 

(a) 2,484 r

articles

(B) circulationr

of 702 million

n/a

PerFormance HigHligHts

in september 2009, the FTc announced two new law enforcement actions in a continuing crackdown on mortgage foreclosure rescue 

and loan modification scams, bringing to 22 the number of these cases the agency has filed since the housing crisis began. Many news 

outlets ran stories on the FTc’s efforts, including The New York Times, The Washington Post, Chicago Sun-Times, and cBs news. 

in FY 2009, the FTc accomplished 90 percent of its target of 2,750 articles, and 94 percent of its target of a circulation of 750 million. 

as more people turn to television and the internet for news, print media circulation has continued to decline, and this performance 

measure was removed in the latest update of the FTc strategic Plan.

objective 1.4 enhance consumer Welfare Through research, reports, advocacy, and international 

cooperation and exchange 

FY 2007 FY 2008 FY 2009 FY 2009 5-Year Key Measure actual actual Target actual Target

1.4.1 convene or participate substantially 

in workshops and conferences on novel or 10 workshops 16 workshops 6 workshops 9 workshops a 30 workshops a

challenging consumer protection problems and conferences and conferences and conferences and and 

or issues. conferences

PerFormance HigHligHts

conferences

The FTc and the Technology law and Public Policy clinic at the University of Washington school of law hosted a conference in 

March 2009 on the use of digital rights management (DrM) technologies, a widespread practice that is expected to become increasingly 

prevalent in the U.s. marketplace in coming years. among other issues, the workshop addressed the need to improve disclosures to 

consumers about DrM limitations. 
11 Fiscal Year 

2009

management’s discussion and analysis

sTraTeGic Goal 2: MainTain coMPeTiTion

objective 2.1 identify anticompetitive Mergers and Practices That cause the Greatest consumer injury

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.1.1 achieve positive outcomes* in 

matters in which Hart-scott-rodino 

(Hsr) act requests for additional 

information are issued.

100% 100% 90% 100% a n/a

PERFORMANCE HIGHLIGHTS

The FTc brought 13 merger enforcement actions after issuing second requests, obtaining consumer relief in matters involving crucial 

pharmaceuticals (King Pharmaceuticals/alpharma and Teva Pharmaceutical/Barr Pharmaceuticals), medical devices (Getinge aB/

Datascope), software systems used by the auto insurance industry (ccc information services/Mitchell international), and 

industrial chemicals (BasF/ciba specialty chemicals and Dow chemical/rohn & Haas).

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.1.2 Percentage of significant 

nonmerger investigations that 

result in a positive outcome.*

100% 100% 90% 100% a n/a

PERFORMANCE HIGHLIGHTS

in addition to issuing three consent orders prohibiting illegal price fixing and anticompetitive boycotts in the health care professional 

services industry (allcare iPa, Boulder valley iPa, and alta Bates Medical Group), the FTc reached settlements in a matter involving an 

illegal geographic market allocation agreement in the retail industry (Golf Galaxy inc./Golf Town canada, inc.) and in a matter involving 

restrictive rules of real estate Multiple listing service (Mls) organizations that impeded competition from non-traditional and discount 

real estate professionals (West Penn Mls). The FTc also obtained a significant result when it filed a complaint in federal court seeking a 

permanent injunction challenging a pay-for-delay agreement between solvay Pharmaceuticals, inc. and two generic drug manufacturers.

* see respective performance measure discussion in the Performance section for definitions of “positive outcome” and “positive result.”
12 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

sTraTeGic Goal 2: MainTain coMPeTiTion (continued)

objective 2.2 stop anticompetitive Mergers and Business Practices Through law enforcement

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.2.1 Positive result* of cases brought by 

the FTc due to alleged violations.

100% 96% 80% 96% a n/a

PERFORMANCE HIGHLIGHTS

The FTc filed five cases involving proposed acquisitions in the health care, high tech, consumer goods manufacturing, and energy 

industries, and successfully challenged mergers that would have substantially reduced competition in the respective relevant product 

markets. in four of these cases, the parties abandoned the proposed transactions after the commission authorized staff to file a complaint 

in federal district court seeking a preliminary injunction to block the mergers, (Thoratec/HeartWare, Talecris Biotherapeutics/csl, crH 

plc/robert schlegel, and red sky Holdings/newpark resources), and in the fifth case, the parties abandoned the merger after the FTc 

secured a preliminary injunction in federal court (Mitchell international/ccc). The FTc also secured several consents orders, restoring 

competition to markets that otherwise would have been lost through mergers or anticompetitive conduct.

* see respective performance measure discussion in the Performance section for definitions of “positive outcome” and “positive result.”

objective 2.3 Prevent consumer injury Through education 

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.3.2 Track (a) the number of times 

print media publish articles that refer to 

FTc competition activities and (B) the 

circulation of the media that publish 

those articles.

(a) 2,982 

articles 

(B) 635 million 

circulation

(a) 1,858 

articles 

(B) 397 million 

circulation

(a) 2,500 

articles 

(B) establish 

baseline 

(a) 1,569 

articles

(B) circulation 

of 360 million 

r n/a

PERFORMANCE HIGHLIGHTS

The FTc initiated a series of competition-related education initiatives, including consumer- and business-oriented publications, to 

increase the awareness by the american public of what types of conduct are likely to be challenged as law violations. examples of 

enforcement actions that received considerable media attention range from matters with an immediate impact in localized areas, such 

as the FTc’s successful challenge of West Penn Multi-list’s anticompetitive conduct in the Pittsburg real estate market (The Pittsburgh 

Business Times reported “West Penn Multi-list opens network to More Brokers”) to cases of greater national interest, such as the 

FTc’s challenge in federal court to ovation Pharmaceuticals’ consummated acquisition of the drug neoProfen, which was reported by 

newspapers across the country (e.g., The Wall Street Journal, Chicago Sun-Times, Los Angeles Times, and Charlotte Observer).

The print media that published articles covering the competition-related activities of the FTc encompasses publications with varying 

degrees of territorial distribution (from local to national) and with circulations ranging from less than fifty thousand to more than one 

million copies. it is difficult to assess the performance of the agency under this measure in light of the severe decline experienced in the 

newspaper industry over the last year.
13 Fiscal Year 

2009

management’s discussion and analysis

sTraTeGic Goal 2: MainTain coMPeTiTion (continued)

objective 2.4 enhance consumer Welfare Through research, reports, advocacy, and international 

cooperation and exchange

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.4.2 issue studies, reports, and working or 

issues papers on significant competition- 18 documents 7 documents 8 documents 20 a 40 a

related issues. documents documents

PERFORMANCE HIGHLIGHTS

The FTc continued to devote resources to the analysis of the nation’s crucial economic sectors by producing reports addressing, for 

example, critical health care issues such as “follow-on biologic drug competition,” the short-term and long-term effects of “authorized 

generics” on competition in the prescription drug marketplace, and retrospectives on hospital mergers. in addition to these industry 

reports, the FTc also published three working papers by staff on how best to identify anticompetitive exclusionary conduct for purposes 

of antitrust enforcement under section 2 of the sherman act.

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.4.3 Make advocacy filings with other 

federal and state government agencies, 

urging them to assess the competitive 11 filings 12 filings 6 filings 10 filings a 30 filings a

ramifications and costs and benefits to 

consumers of their policies.

PERFORMANCE HIGHLIGHTS

The majority of the FTc’s advocacy filings in FY 2009 were aimed at eliminating government-imposed impediments to a competitive 

marketplace in the health care industry and at promoting competition in the electric industry. The FTc issued four advocacy comments 

on health care topics addressing existing or proposed legislation dealing with health care cooperatives, the regulation of pharmacy benefit 

managers, and the provision of dental care services to underserved children.
14 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

sTraTeGic Goal 2: MainTain coMPeTiTion (continued)

objective 2.4 enhance consumer Welfare Through research, reports, advocacy, and international 

cooperation and exchange

Key Measure FY 2007 

actual

FY 2008 

actual

FY 2009 

Target

FY 2009 

actual

5-Year 

Target

2.4.7 Track the number of (a) cases in 

which the FTc cooperated with a 

foreign competition authority, (B)

consultations with or comments to 

foreign competition authorities, (c)

written submissions to international fora, 

(D) international events attended, and (e)

leadership positions held by FTc staff in 

international competition organizations.

(a) 61 cases 

(B) 70 

consultations or 

comments 

(c) 19 

submissions 

(D) 48 events 

(e) 8 positions

(a) 79 cases 

(B) 89 

consultations or 

comments 

(c) 30 

submissions 

(D) 68 events 

(e) 9 positions

(a) 30 cases

(B) 25 

consultations or 

comments

(c) 7 

submissions

(D) 8 events

(e) 5 positions

(a) 87 cases a

(B) 56 

consultations or 

comments a

(c) 19 

submissions a

(D) 125 

events a

(e) 10 

positions a

n/a

PERFORMANCE HIGHLIGHTS

staff cooperated with foreign competition authorities on 67 cases of mutual interest, and worked bilaterally with other agencies to 

promote policy convergence on particular issues, devoting significant resources to working with china and india on the implementation 

of their new laws and with sister agencies in key jurisdictions including the european Union, canada, Japan, Korea, and Mexico. 

The FTc participated in several multilateral organizations addressing competition policy and enforcement issues, submitting nineteen 

written papers and taking on leadership positions in these fora. notably, in the international competition network (icn), the FTc 

continued as a member of the icn’s steering Group, on which one of its commissioners served as a vice chair, and led unilateral 

conduct and merger notification and procedures project teams.

Performance Measures Summary 

The Performance Measure summary Table in the 

Performance section of this report shows actual 

results for all performance measures. of the 33 total 

performance measures, 21 were exceeded, one was met, 

three are measures being tracked and have “establish 

baseline” targets, and eight were not met. Based on 

these results, the FTc has made significant progress 

toward reaching its eight objectives, as fully described 

in the Performance section.
15 Fiscal Year 

2009

management’s discussion and analysis

Agency Mission 

Challenges

The FTc stands prepared to face the challenges of 

today’s economy as a champion for consumers and 

competition. as a law enforcement agency with a 

broad mandate, many of the FTc’s challenges are 

defined by marketplace conditions and thus are 

constantly evolving. For example, as consumers and 

businesses encounter difficulties with illegal practices 

involving financial services, internet privacy, identity 

theft, and health fraud, as well as anticompetitive 

business practices in the health care, high technology, 

energy, and other industries, the FTc steps forward 

to protect consumers and maintain competition. 

agency management has identified significant mission 

challenges the FTc currently faces. Management’s 

identification was performed separately from the 

inspector General’s (iG) independent assessment of 

management and performance challenges (see other 

accompanying information). Management concurs 

with the iG assessment; accordingly, certain aspects 

of the challenges described below are also addressed 

by the iG.

significant agency mission challenges are presented 

below as they relate to the agency’s strategic goals. 

a reference to the most applicable strategic objectives 

is also provided so that readers may refer to descriptions 

of related performance targets and actual results listed 

by objective within the Performance section. 

Strategic Goal 1: Protect Consumers: Prevent 

Fraud, Deception, and Unfair Business Practices 

in the Marketplace

Under the consumer Protection goal, the FTc will 

continue to give priority to addressing the following 

challenges: protecting consumers in the financial 

services marketplace, protecting consumer privacy, 

protecting vulnerable and underserved americans 

from fraud, stopping health fraud, evaluating “green” 

marketing claims, addressing issues related to marketing 

to children, and building international partnerships.

Protecting Consumers in the Financial Services 

Marketplace. Financial services play an important role 

in the daily lives of virtually all americans. The FTc 

targets illegal practices in the financial services arena, 

especially schemes directed at financially distressed 

consumers, including: unfair, deceptive, or otherwise 

unlawful mortgage lending and credit offers; unlawful 

practices in servicing mortgages; foreclosure “rescue” 

and loan modification scams; bogus debt relief and 

credit “repair” services; and unlawful debt collection. 

These practices can have severe consequences for 

consumers, including unanticipated high-cost mortgages 

and fees, ruined credit histories, loss of their homes, and 

unwarranted fears of arrest and incarceration for failure 

to pay on time. 

The FTc will continue to respond to growing 

challenges in the financial services arena. as consumer 

debt levels continue to rise, the FTc has received 

more complaints about debt collection, and the agency 

is aggressively pursuing law enforcement work in 

this industry. Further, the FTc has initiated three 

rulemaking proceedings in this area. at the same time, 

more consumers are targeted by credit repair, debt 

settlement, and foreclosure rescue companies, and the 

FTc is pursuing law enforcement action involving 

unfair and deceptive practices targeted at those 

consumers. (objectives 1.1, 1.2, 1.3, and 1.4)

Protecting Consumer Privacy. The FTc will continue 

to take a leading role in efforts to protect consumers 

from unfair, deceptive, or other illegal practices related 

to their privacy. The agency will continue to bring 

law enforcement actions against companies that have 

misrepresented their policies about the use of personal 

information they collect from consumers or failed to 

take appropriate steps to protect the security of sensitive 

personal information. in addition to its enforcement 

efforts, the FTc will address the complex privacy and 

data security issues that may be associated with the 

use of online behavioral advertising and other media 

through workshops, testimony, reports, and consumer 
16management’s discussion and analysis

and business education. in December 2009, the FTc 

will host the first of a series of public roundtable 

discussions to explore the privacy challenges posed by 

the vast array of 21st-century technology and business 

practices that collect and use consumer data. 

The FTc will also protect consumers from unwanted 

telemarketing call. The agency’s national Do not call 

(Dnc) registry makes it easier and more efficient for 

consumers to stop unwanted telemarketing calls. There 

are now more than 191 million active registrations on 

the registry. The FTc’s challenge is to ensure 

that consumers who register their numbers 

are protected from receiving unwanted telemarketing 

calls by continuing to enforce the Dnc provisions 

of the Telemarketing sales rule, including recent 

amendments relating to prerecorded calls (“robo calls”). 

Though most entities covered by the Dnc rule comply, 

the FTc received more than 1.8 million consumer 

Dnc registry complaints in FY 2009. (objectives 1.1, 

1.2, 1.3, and 1.4)

Protecting Vulnerable and Underserved Americans 

from Fraud. Frauds causing severe economic injury, 

including financial related frauds such as advance fee 

credit card scams and foreclosure business opportunity 

scams, continue to adversely affect the public. With an 

aging population, the economic downturn and related 

unemployment, and the healthcare crisis, the FTc will 

target law enforcement actions toward traditional and 

novel frauds targeting people in need and underserved 

consumers, particularly Hispanics and africanamericans. (objectives 1.1 and 1.2)

Identity Theft, Privacy, and Security Resources

id Theft, Privacy, and security resources

The FTc offers several websites that offer 

consumer publications on identity theft, 

privacy, and security topics. 

Fighting Back against identity Theft 

(www.ftc.gov/bcp/edu/microsites/idtheft)

This website is a one-stop national resource to learn 

about the crime of identity theft. it provides detailed 

information to help consumers deter, detect, and 

defend against identity theft. 

onguard online (www.onguardonline.gov)

This website provides practical tips from the federal government and the technology 

industry to help consumers be on guard against internet fraud, secure their computer, 

and protect their personal information.

The children’s online Privacy Protection act (coPPa) 

(www.ftc.gov/privacy/privacyinitiatives/childrens.html)

This website explains each component of a coPPa-compliant privacy policy, answers 

questions that website operators have asked, and features a compliance checklist to 

help website operators identify areas where their privacy policies could be improved. 
17management’s discussion and analysis

Stopping Health Fraud. consumers are being bombarded 

with unprecedented levels of advertising for products 

to prevent and treat diseases and improve health and, 

each year, they spend billions of dollars purchasing 

health products. consumers can fall prey to fraudulent 

health marketing when they are desperate for help. 

The FTc will continue to respond to this challenge 

by scrutinizing the marketing of health care products, 

particularly claims about serious diseases or weight loss, 

advertised through infomercials and other forms of mass 

media marketing, and taking action against companies 

making deceptive representations. The FTc also works 

with the dietary supplement industry by providing 

guidance to encourage accuracy in claims for these 

products. in addition to traditional law enforcement 

actions, the FTc creates education materials to help 

companies develop adequate substantiation and 

information to help consumers spot deceptive claims. 

(objectives 1.1, 1.2, 1.3, and 1.4)

“Operation Short Change”—The FTC Cracks Down on Scammers Trying to 

Take Advantage of the Economic Downturn

“operation short change,” is the FTc’s law enforcement 

crackdown on scammers trying to take advantage of the 

economic downturn to bilk vulnerable consumers through 

a variety of schemes, such as promising non-existent 

jobs; promoting overhyped get-rich-quick plans, bogus 

government grants, and phony debt-reduction services; 

or putting unauthorized charges on consumers’ credit or 

debit cards. The law enforcement sweep includes 15 FTc 

cases, 44 law enforcement actions by the Department of 

Justice, and actions by at least 13 states and the District of 

columbia.

“rising unemployment, shrinking credit, record-setting foreclosures, and disappearing retirement 

accounts are causing consumers tremendous anxiety about making ends meet. But to con artists, today’s 

challenging economy presents just another opportunity to play on consumers’ worry and bilk them 

out of money. Thousands of people have been swindled out of millions of dollars by scammers who are 

exploiting the economic downturn; their scams may promise job placement, access to free government 

grant money, or the chance to work at home. in fact, the scams have one thing in common—they raise 

people’s hopes and then drive them deeper into a hole.”

—David vladeck, Director of the FTc’s Bureau of consumer Protection

To help consumers understand how easy it is to be conned—and how to avoid fraud—the FTc 

produced a new consumer education video featuring a former scammer who hawked phony business 

opportunities and ultimately served prison time for deceiving investors. To view the video, go to 

www.ftc.gov or www.youtube.com/ftcvideos. 
18 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

Evaluating “Green” Marketing Claims. new “green” 

environmental marketing claims, such as claims for 

carbon reduction, landfill reduction, and sustainable 

materials and packaging, recently have increased in 

popularity. These claims can be extremely useful for 

consumers; however, the complexity of the issues 

involved creates the potential for confusing, misleading, 

and fraudulent claims. Given this potential, the FTc 

will continue to evaluate whether the “FTc Guides for 

the Use of environmental Marketing claims” remain 

current and useful. The agency is also developing 

a consumer and business education campaign and 

pursuing appropriate enforcement action involving 

deceptive claims in this area. (objectives 1.1, 1.2, 

1.3, and 1.4)

Addressing Issues Related to Marketing to Children.

To combat the challenges of childhood obesity, 

underage drinking, and other problems, the FTc 

engages in research, policy, and law enforcement work 

pertaining to marketing of food, alcohol, and violent 

entertainment to children. The FTc monitors selfregulation in the food, alcohol, movie, video game, 

and music recording industries. in December 2009, 

the agency will hold a one-day workshop which 

will examine changes in industry practices since 

the commission’s 2008 report “Marketing Food to 

children and adolescents: a review of industry 

expenditures, activities, and self-regulation.” in 

addition, in response to a congressional directive, the 

FTc is coordinating an interagency working group with 

the Food and Drug administration (FDa), centers for 

Disease control (cDc), and United states Department 

of agriculture (UsDa) to develop nutrition standards 

for food marketing to children. Further, in FY 2010, the 

FTc will launch its advertising literacy initiative with 

a significant marketing effort aimed at preadolescents 

and their parents and teachers. The goal of the initiative, 

which will include an interactive website, in-school 

curricula, and other features, is to help kids become 

smarter consumers. (objectives 1.1, 1.2, 1.3, and 1.4)

Building International Partnerships. The FTc promotes 

market-oriented consumer protection and privacy 

policies globally, particularly in areas involving 

e-commerce and new technologies. Given the challenge 

of the increasingly cross-border nature of fraud such as 

spam, spyware, and telemarketing, and the international 

scope of privacy and data security issues, developing 

international partnerships is critical to the effective 

enforcement of laws to protect U.s. consumers. The 

FTc uses the tools provided by the 2006 U.s. saFe 

WeB act to increase the effectiveness of its crossborder cooperation and enforcement. Five key areas 

where the FTc has used this authority are: broadening 

information sharing, expanding investigative 

cooperation, negotiating international agreements, 

establishing staff exchanges, and enhancing cooperation 

between the FTc and the Department of Justice (DoJ) 

in foreign litigation. (objectives 1.2 and 1.4)

Strategic Goal 2: Maintain Competition: 

Prevent Anticompetitive Mergers and Other 

Anticompetitive Business Practices in the 

Marketplace

Under the Maintaining competition goal, the FTc 

will continue to give priority to the challenges of 

promoting competition and preventing anticompetitive 

activity in the health care and pharmaceutical 

industries, high technology sectors, and energy 

industries. The agency will also work on promoting 

sound competition policy at the international level 

and advocating for competition before the U.s. courts, 

legislatures, and government agencies.

Promoting Competition and Preventing Anticompetitive 

Activity in the Health Care and Pharmaceutical Industries.

The rapidly rising cost of health care is a matter of 

concern for consumers, employers, insurers, and the 

nation as a whole. Health-related products and services 

continue to account for an increasingly significant share 

of gross domestic product. agreements between branded 

and generic drug manufacturers to delay generic entry 
19management’s discussion and analysis

continue to pose a significant threat to competition 

by depriving consumers of low-cost generic drugs. 

FTc economists estimate that these anticompetitive 

deals, unless stopped, will cost consumers $35 billion 

over the next ten years. When appropriate, the FTc 

investigates and challenges patent settlements between 

brand and generic companies and supports legislation to 

eliminate this problem. The agency also addresses rising 

prescription drug prices by monitoring pharmaceutical 

and medical device company mergers. in addition, 

the FTc stops anticompetitive agreements between 

physicians and hospital service organizations and 

monitors hospital and other mergers that may raise the 

cost of health care. (objective 2.2)

Promoting Competition and Preventing Anticompetitive 

Business Practices in High Technology Sectors.

The growing importance of technology is a crucial 

marketplace challenge that is placing greater demands 

on antitrust enforcement. The FTc’s antitrust 

investigations increasingly involve high-technology 

sectors of the economy, such as information technology 

and pharmaceutical products. Through the review 

of Hart-scott-rodino (Hsr) merger filings and non 

reportable transactions, the FTc endeavors to take 

action against those mergers that are likely to reduce or 

eliminate competition in the high technology sector by 

increasing prices and reducing the quality and choice 

of goods and services. Furthermore, issues in antitrust 

matters increasingly intersect with intellectual property 

concerns, raising difficult questions about how to 

harmonize these two bodies of law, both of which have 

a goal of promoting innovation. (objective 2.2)

Stopping “Pay-for-Delay” Settlements Would Yield Consumer Savings

an internal FTc analysis projects that stopping collusive “pay-for-delay” settlements between brand and 

generic pharmaceutical firms would save consumers $3.5 billion a year and also reap significant savings 

for the federal government, which pays approximately one-third of all prescription drug costs. To learn 

more, visit www.ftc.gov/opa/2009/06/capspeech.shtm. 

“...the decision about whether to restrict 

pay-for-delay settlements should be 

simple... on the one hand, you have 

savings to american consumers...and the 

prospect of helping to pay for health care 

reform as well as the ability to set a clear 

national standard to stop anticompetitive 

conduct. on the other hand, you have 

a permissive legal regime that allows 

competitors to make collusive deals on the 

backs of consumers.” 

—FTc chairman Jon leibowitz
20management’s discussion and analysis

Promoting Competition and Preventing Anticompetitive 

Activity in Energy Industries. The price of gasoline and 

other energy sources continues to be a great concern 

for consumers, businesses, and governments. The 

agency meets this challenge by closely monitoring 

gasoline markets and moving quickly to address any 

anticompetitive merger or nonmerger activity. in 

enforcing the antitrust laws, the FTc continuously 

examines price movements and other activity through 

its Gasoline and Diesel Price Monitoring Project 

to identify any conduct that may not reflect purely 

competitive decisions based on the forces of supply 

and demand. in august 2009, exercising the authority 

provided by congress under the energy independence 

and security act of 2007, the commission issued a 

Final rule that will prohibit market manipulation 

in the petroleum industry. 

Market Manipulation Rulemaking

in august of 2009, the FTc issued a rule that prohibits market manipulation in 

the petroleum industry. The rule prohibits fraud or deceit in wholesale petroleum 

markets, and omissions of material information that are likely to distort petroleum 

markets and drive up prices at the pump. specific examples of such conduct include 

false public announcements of planned pricing or output decisions, false statistical or 

data reporting, and “wash sales” intended to disguise the actual liquidity of a market 

or the price of a particular product. The rule also prohibits material omissions from a 

statement that, although true, is misleading under the circumstances. To learn more, 

visit www.ftc.gov/mmr.

“We will police the oil markets—and if we find companies that are manipulating the 

markets, we will go after them.” —FTc chairman Jon leibowitz
21 Fiscal Year 

2009

management’s discussion and analysis

The rule will proscribe fraud or deceit in wholesale 

petroleum markets, and omissions of material 

information that are likely to distort petroleum markets. 

The FTc also uses its enforcement role to search for 

anticompetitive nonmerger activity such as illegal 

agreements among competitors, agreements between 

manufacturers and product dealers, monopolization, 

and other anticompetitive activities. To prepare and 

support agency staff in meeting this challenge, the 

FTc devotes considerable resources to monitoring 

and studying energy markets—often in response 

to congressionally mandated requirements—thus 

developing the professional expertise and body of 

knowledge needed to address emerging concerns. 

(objective 2.2)

Promoting Sound Competition Policy at the 

International Level. With over 100 jurisdictions 

enforcing competition laws, the FTc’s work to 

promote international convergence toward sound 

policies is critical to meeting the challenge to maintain 

competition. The FTc plays a leading role, bilaterally 

and through international organizations, to promote 

procedural and substantive consistency of antitrust 

rules and their enforcement. To avoid divergent 

outcomes that can increase costs to agencies and firms 

alike, the FTc works to promote cooperation with 

foreign antitrust agencies on cases of mutual interest. 

in addition, the FTc provides technical assistance to 

foreign competition agencies, particularly in countries in 

the process of developing competition laws or enforcing 

newly adopted laws, to enable newer competition 

agencies to apply sound competition policies. as part 

of its ongoing effort to build effective relationships 

and promote understanding, the FTc implemented its 

international Fellows and intern program, providing 

opportunities for staff from counterpart foreign agencies 

to spend time at the FTc working directly with agency 

staff on investigations, and developed opportunities for 

staff exchanges. (objective 2.4)

Advocacy and Competition Policy. The FTc works 

to meet the important challenge of eliminating 

government-imposed impediments to a competitive 

marketplace by advising other government policymakers 

to apply sound competition principles as they make 

decisions affecting consumer welfare. among its 

activities, the FTc continues to publish reports and 

file comments on proposed government action 

(legislation, regulation, and other rules) affecting 

competition across many industries, such as the 

provision and advertising of legal services, real estate 

brokerage, the direct shipment of wine to consumers, 

contractual relationships between product suppliers 

and distributors, and certificate of need (con) laws. 

For example, in the past year, the agency issued a report 

on follow-on biologics as congress was considering the 

issue. similarly, the commission has held hearings on 

important competition policy matters such as resale 

price maintenance and is working on reports on issues 

such as intellectual property law and competition. 

(objective 2.4)
22 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

Management 

Assurances

(on internal controls, Financial 

systems, and compliance with 

laws and regulations) 

Implementation of the Federal 

Managers’ Financial Integrity Act 

(FMFIA) at the FTC 

The FTc considers internal controls to be an integral 

part of all systems and processes that the agency utilizes 

in managing its operations and carrying out activities 

toward achieving strategic goals and objectives. The FTc 

holds agency managers accountable for efficiently and 

effectively performing their duties in compliance with 

applicable laws and regulations and for maintaining the 

integrity of their activities through the use of controls. 

The FTc’s senior assessment Team (saT) provides 

strategic direction and oversight over the agency’s 

internal control program, to promote and facilitate 

compliance with applicable guidance (e.g., office of 

Management and Budget [oMB] circular a-123, 

“Management’s responsibility for internal control”), 

and communicates the results of reviews to senior 

management and the head of the agency. 

some of the functions of the saT are developing 

and documenting an internal control review plan, 

identifying key processes and related control 

activities and performing a preliminary risk 

assessment of such processes, reviewing and assessing 

the overall control environment, helping to ensure the 

timely implementation of any corrective actions needed 

to address identified weaknesses, and establishing 

guidance for program managers in monitoring and 

assessing management controls within their areas of 

responsibility. 

During FY 2009, the saT found that the 

FTc’s overall control environment is strong. 

additionally, the saT updated guidance for 

program managers to use in completing self-assessments 

of the processes and controls within their areas of 

responsibility. senior managers throughout the agency 

completed self-assessments that disclosed no significant 

control weaknesses. The saT evaluated the results of 

the managers’ assessments and concurred that no 

material weaknesses or nonconformances were 

identified. The results of these evaluations and other 

information—such as independent audits or reviews 

performed by the office of inspector General (oiG) 

and the Government accountability office (Gao) 

(e.g., Federal information security Management 

act review), independent audits of service providers’ 

operations and financial systems (e.g., reviews 

conducted in accordance with statement on 

auditing standards [sas] 70), internal analyses, 

and other relevant evaluations and control 

assessments—were considered by the saT and the 

agency head in determining whether there are any 

management control deficiencies or nonconformances 

that must be disclosed in the annual assurance 

statement. The chairman’s assurance statement that 

follows is supported by the processes and reviews 

described above, which were carried out in 

FY 2009. Management assurances tables appear 

in the other accompanying information.
23 Fiscal Year 

2009

management’s discussion and analysis

Chairman’s FMFIA Statement of Assurance
24 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

Summary of Material 

Weaknesses and Nonconformances

as noted in the chairman’s statement of 

assurance, the FTc has no material weaknesses or 

nonconformances to report for FY 2009. no new 

material weaknesses or significant nonconformances 

were identified for the past five years, nor were 

there any existing unresolved weaknesses requiring 

corrective action.

Federal Information Security 

Management Act (FISMA)

The FTc continues to stay vigilant in ensuring that 

there are no material weaknesses in administrative 

controls over information systems and is always seeking 

methods of improving its secure configuration. in his 

FY 2009 FTc Management challenges memo, the 

inspector General reports that “the FTc security 

environment is strong and robust and continues 

to evolve to expand its coverage and to address 

changing threats and requirements.” as part of the 

agency’s effort to meet or exceed the requirements 

of FisMa, 100 percent of agency systems have 

undergone certification and accreditation, and the 

FTc’s certification and accreditation policy conforms 

with the standards established by the national 

institute of standards and Technology. additionally, 

the information Technology Management office 

and the Privacy steering committee continue to 

strengthen privacy and data security policies and will 

raise the level of awareness among staff regarding 

these issues so that data protection remains a critical 

consideration for all FTc employees. 

Debt Collection Improvement Act

The Debt collection improvement act of 1996 

prescribes standards for the administrative collection, 

compromise, suspension, and termination of federal 

agency collection actions and referrals to the proper 

agency for litigation. although the act has no material 

effect on the FTc because the agency operates with 

minimal delinquent debt, all debts more than 180 days 

old have been transferred to the U.s. Department of 

the Treasury for cross-servicing. in addition, recurring 

payments were processed by electronic funds transfer 

(eFT) in accordance with the eFT provisions of the 

Debt collection improvement act.

Prompt Payment Act

The Prompt Payment act requires federal agencies 

to make timely payments to vendors, including any 

interest penalties for late invoice payments. in FY 2009, 

the FTc processed 10,384 invoices totaling $63 million 

that were subject to prompt payment. of the 10,384 

invoices processed, 98 percent were paid on-time. 

also, during FY 2009, the FTc paid a total of $12,393 

in interest penalties, or .02 percent of the total dollar 

amount invoiced.

Agency Financial Management Systems Plans

a key financial management goal at the FTc is to 

provide agency decision makers and staff with accurate 

and timely financial data using flexible query and 

reporting tools in a one-stop, easy-to-navigate system. 

During FY 2009, the FTc worked with its shared 

service provider, the Department of the interior (Doi) 

national Business center (nBc), in continuing to 

enhance the functionality of the core Financial system 

(cFs) that was implemented in FY 2008. For example, 

the FTc partnered to fully automate processes for 

recording adjustments to prior year obligations and to 

fine-tune related fund validation checks. 

The FTc also continued working toward integrating 

various legacy systems with the cFs, and on enhancing 

reporting capabilities. For example, the FTc evaluated 

a potential solution for an integrated procurement 

system based on its defined functional requirements. 

The agency also launched a pilot effort to implement a 

Business intelligence (Bi) reporting solution. 

in addition to the Bi initiative and efforts to modernize 

the agency’s procurement system described above, 

the FTc endeavors to integrate functionality and 

data that currently reside in disparate systems. 

long-term plans call for integrating project and cost 

accounting systems, property management, and budget 

formulation capabilities. 
25 Fiscal Year 

2009

management’s discussion and analysis

Financial Highlights

Introduction 

The financial highlights presented below are an 

analysis of the information that appears in the FTc’s 

FY 2009 financial statements. The agency’s financial 

statements, which appear in the Financial section of 

this report, are audited by an independent accounting 

firm. The FTc’s management is responsible for the fair 

presentation of information contained in the principal 

financial statements. The financial statements and 

financial data presented below have been prepared from 

the agency’s accounting records in accordance with 

Generally accepted accounting Principles (GaaP). 

GaaP for federal agencies are the standards prescribed 

by the Federal accounting standards advisory Board 

(FasaB). For the 13th straight year, the FTc is proud 

to have received an unqualified (clean) opinion on our 

audited financial statements. The chart below presents a 

snapshot of the changes in key financial statement line 

items that occurred during FY 2009 and is followed by 

an explanation of the more significant fluctuations in 

each of FTc’s financial statements.

Percentage condensed Balance sHeet (dollars shown in thousands) 2009 2008 change

Fund Balance with Treasury -6% $ 81,307 $ 86,792 

cash and other Monetary assets 73% 18,141 10,485

investments -19% 94,848 117,514 

accounts receivable, net -37% 55,705 88,030

General Property & equipment, net

total assests

accrued redress receivables Due to claimants

2%

-16%

-37%

15,473

$265,474

$55,496

15,098 

$317,919 

$87,800 

redress collected not yet Disbursed -18% 69,746 85,021 

Divestiture Fund Due 0% 45,542 45,485

accounts Payable and other

total liabilities

cumulative results of operations-other Funds

total net Position

total liabilities and net Position

cost summary

-31%

-23%

21%

21%

-16%

Percentage

change

34,299

$205,083

60,391

$ 60,391

$265,474

2009

49,537

$267,843 

50,076

$ 50,076

$317,919

2008

Gross cost 5% $256,950 $245,558

less: earned revenue

net Program cost

-51%

57%

-58,256

$198,694

119,394 

$126,164 
26 Federal Trade Commission

Performance and Accountability Report

management’s discussion and analysis

Financial Analysis 

Assets. The FTc’s Balance sheet shows total assets 

of $265 million at the end of FY 2009, a decrease 

of $52 million or 16 percent compared to FY 2008. 

The overall decrease is attributable to a decrease of 

$32 million in consumer redress accounts receivable, 

net, a decrease of $15 million in consumer redress 

funds (held as cash and investments) and a $5 million 

decrease in Fund Balance with Treasury. 

The $32 million decrease in consumer redress 

accounts receivable, net is due to the collections of 

$75 million and the net of bad debt expense and writeoffs of $219 million, which exceeds the $262 million in 

new judgments and recoveries of judgments previously 

written off. The $15 million decrease in consumer 

redress funds are due to outflows for distributions 

to claimants and disgorgements to the Treasury of 

$84 million and for expenses of $6 million, compared 

to $75 million in collections.

The $5 million decrease in Fund Balance with 

Treasury primarily reflects a $15 million transfer 

to the DoJ of premerger collections during FY 2009 

that represented undisbursed funds at year-end 2008 

offset by the additional funds retained to pay for the 

$13 million increase in year-end FY 2009 obligations 

compared to FY 2008. Furthermore, unobligated 

balances decreased by $2 million in FY 2009. 

 asseTs BY TYPe (Dollars shown in millions)
27 Fiscal Year 

2009

management’s discussion and analysis

Liabilities. The agency’s total liabilities at the 

end of FY 2009 were $205 million, decreasing 

by $63 million, or 23 percent, from FY 2008 

total liabilities of $268 million.

The decrease in total liabilities is primarily the result 

of a $47 million decrease in redress-related liabilities 

(accrued redress receivables Due to claimants and 

redress collected but not Yet Disbursed) which is 

consistent with the decrease in redress-related cash 

and other assets, investments and accounts receivable 

described above under assets. These two non-entity 

liabilities correspond to cash and investments held by 

the FTc in a deposit fund as the result of judgments 

obtained or settlement agreements reached as part 

of consumer redress efforts. These redress-related 

liabilities accounted for 61 percent of all liabilities 

in FY 2009 versus 65 percent in FY 2008. 

The decrease in total liabilities is further related to 

a $15 million decrease in accounts Payable and 

other liabilities reflecting the change in amounts 

due to the DoJ for their share of fees collected under 

the Hsr act. 

 liaBiliTies BY TYPe (Dollars shown in millions)
28 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

Net Position. The agency’s cumulative results of 

operations comprises net Position. at the end of 

FY 2009, the agency’s net Position is $60 million, 

increasing by $10 million or 20 percent over the 

FY 2008 ending net Position of $50 million. 

Financing sources from appropriations used 

during the year were $201 million and imputed 

financing sources totaled $8 million for a total 

of $209 million. The imputed financing sources 

consisted of $2 million in future retirement benefits 

and $6 million in future health and life insurance 

benefits accrued in FY 2009, which will be 

paid by entities other than the FTc.

The financing sources of $209 million exceed the net 

cost of operations totaling $199 million (gross costs of 

$257 million less revenues from fees of $58 million), 

resulting in the $10 million increase in net position.

Results of Operations. Total gross costs for the year 

ending september 30 were $257 and $246 million 

for FYs 2009 and 2008, respectively. Gross costs 

are inclusive of all costs involved in FTc’s ongoing 

operations. Fees collected in relation to the Hsr act 

and the Dnc registry of $58 and $119 million in FY 

2009 and 2008, respectively, offset the gross costs in 

determining net costs. 

FY 2009 net costs of $199 million increased by 

$73 million over the FY 2008 level of $126 million 

primarily due to the decline in the total amount 

of Hsr fees collected of $61 million. This decrease 

reflects the lower number of Hsr filings in FY 2009 

related to the economic downturn. 

FY 2009 NET COSTS BY STRATEGIC GOAL

strategic Goal 1 

Protect consumers

Gross costs $147,232

less: earned revenue (15,947)

strategic Goal 2 

Maintain competition 

$109,718

(42,309)

Total

$256,950

(58,256)

net Program costs $131,285 $67,409 $198,694
29 Fiscal Year 

2009

management’s discussion and analysis

Budgetary Resources. The statement of Budgetary 

resources (sBr) provides information on budgetary 

resources made available to the agency and the status of 

these resources at the end of the fiscal year. 

new budgetary authority (total budgetary resources 

excluding unobligated balances brought forward, 

prior year recoveries, and amounts previously 

unavailable) was $259 million in FY 2009, 

an increase of $15 million or 6 percent over the 

$244 million in FY 2008.

in FY 2009, spending authority derived from offsetting 

collections totaled $58 million ($42 million for Hsr 

fees and $16 million for Do not call registry) and 

general fund appropriations totaled $201 million, 

comprising 22 and 78 percent of new budget authority, 

respectively. This compares to offsetting collections of 

$135 million and general fund appropriations of 

$96 million, comprising 58 and 42 percent of new 

budget authority, respectively, in FY 2008.

The sBr includes a $15 million balance that was 

reported as temporarily not available in FY 2008, 

which was brought forward in the FTc’s general fund 

(29X0100). This amount was collected by the FTc in 

FY 2008 on DoJ’s behalf pursuant to 15 U.s.c. 18a 

note. Historically all of the DoJ share of Hsr fee 

collections made during the fiscal year were transferred 

to DoJ by september 30, however FY 2008 was an 

exception (see further explanation in financial statement 

note 1(g). although this balance is included in total 

resources on the sBr, this amount was not available 

to finance the FTc operations and may only be 

transferred to DoJ for its use. During FY 2009, this 

$15 million balance was transferred to DoJ pursuant 

to 15 U.s.c. 18a note and recorded as an expenditure 

transfer consistent with guidance from oMB and the 

Department of Treasury. This transfer resulted in a 

$15 million increase to obligations and outlays above 

those incurred as part of the FTc’s operations.

The sBr includes distributed offsetting receipts, which 

are the non-entity and non-budgetary funds recorded 

in the FTc’s Miscellaneous receipt accounts. These 

receipts comprise primarily of disgorgements to the 

Treasury from undistributed funds from the redress 

program and court-appointed receivers. also included 

are other miscellaneous receipts that by law are not 

retained by the FTc. Distributed offsetting receipts 

decreased by $40 million in FY 2009 primarily due to 

the unusually large amounts of redress disgorgements 

occurring during the prior year and the lower collections 

of redress judgments during FY 2009 that contribute to 

reduced disgorgements. 

 neW BUDGeT aUTHoriTY For FY 2009 (Dollars shown in millions)
30 Federal Trade Comm ission

Performance and Accountability Report

management’s discussion and analysis

Limitations of Financial Statements 

FTc management has prepared its FY 2009 financial 

statements from the books and records of the agency 

in accordance with the requirements of the office of 

Management and Budget (oMB) circular a-136, 

Financial reporting requirements, as amended. The 

financial statements represent the financial position 

and results of operations of the agency pursuant to the 

requirements of chapter 31 of the U.s. code section 

3515(b). While these statements have been prepared 

from the agency’s books in accordance with the formats 

prescribed by the oMB, the statements are in addition 

to the financial reports used to monitor and control 

budgetary resources, which are prepared from the same 

books and records. These statements should be read with 

the understanding that they are for a component of the 

U.s. government, a sovereign entity. one implication is 

that unfunded liabilities cannot be liquidated without 

legislation that provides resources to do so.

Financial Management Indicators

The following table shows standard indicators developed 

by the chief Financial officers council and used by 

the oMB to monitor agencies’ financial management 

practices.

Financial Management indicators for FY 2009

Debt Management 

Debt Transferred to Treasury 100% 

Funds Management 

Fund Balance with Treasury (identifies the difference 

between the fund balance reported in Treasury reports and 

the agency fund balance with Treasury recorded in its general 

ledger on a net basis) 

100% reconciled 

Payment Management 

Percentage invoices Paid on Time (per Prompt Payment act) 98% 

Percentage interest Penalties Paid to Total Dollars invoiced 0.02% 

Percentage of total dollars outstanding in current status* 

(good standing) for individually Billed Travel account 

holders 

100% 

Percentage of total dollars outstanding in current status* 

(good standing) for centrally Billed Travel accounts 

100% 

Percentage of total dollars outstanding in current status* 

(good standing) for Purchase cards 

100% 

*The office of Management and Budget threshold for delinquency is 61 days.
p

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Performance Section

31
32 Federal Trade Commission

Performance and Accountability Report

per

formance section

Introduction to 

Performance

The Performance section presents detailed information 

on the performance results of the Federal Trade 

commission’s (FTc) programs and includes 

a discussion of strategies and factors affecting 

performance. This section also includes trend 

data, and a summary of methods used to verify 

and validate performance data. Generally, this section 

also contains the results of program evaluations; the 

agency did not undergo any significant program 

evaluations in FY 2009.

Throughout this section, years without trend data are 

indicated as not available (n/a) and for performance 

measures with five-year cumulative targets, the shaded 

portions of the performance tables indicate those fiscal 

years included in the five-year targets. additionally, 

Performance Measure 1.2.2, used only in FYs 2007 

and 2008, was not continued in FY 2009. as an 

output measure that simply counted actions, it did not 

adequately measure the effectiveness of the FTc’s work.

in FY 2009, the FTc updated its strategic Plan, 

which will be effective FY 2010. This provided the 

FTc with an opportunity to better define its 

performance framework and work toward expanding 

outcome performance measures. Furthermore, the 

agency expects that its multiyear effort to modernize 

and integrate business systems will lead to the better 

determination of the cost of strategic goals and 

objectives in the coming years. This will provide 

another opportunity to use more efficiency measures 

and make further refinements to the strategic Plan 

in an effort to measure the outcomes of the FTc’s 

performance more precisely. 

Relationship of Outputs 

to Outcomes 

The goals of the FTc are to protect consumers and 

maintain and promote competition in the marketplace. 

The FTc has a number of desired outcomes of these 

goals, including stopping fraud and anticompetitive 

mergers or conduct. This is accomplished through 

(1) pursuing strategic law enforcement actions, (2) 

educating consumers and businesses on their rights 

and responsibilities; and (3) influencing policymakers, 

legislators, and the judiciary to issue and interpret 

policies and laws that are pro-consumer and procompetitive. However, it remains difficult, if not 

impossible, to measure precisely the value (in 

monetary terms or otherwise) of deterrence, 

education, and advocacy. But the agency is confident—

taking into account the information it gains through 

its performance measures—that consumers benefit 

from the FTc’s deterring unfair or deceptive acts and 

anticompetitive mergers or conduct, providing accurate 

consumer information, and advocating agency positions. 

The agency’s current performance measures include 

both input/output and outcome measures; however, 

the FTc is continuously reviewing its performance 

measures with the aim of developing additional 

outcome measures.

a measurable outcome of the FTc’s goals is substantial 

financial savings to consumers through law enforcement 

actions to stop specific frauds and anticompetitive 

conduct or mergers. The FTc has five long-term 

outcome performance measures directed at these law 

enforcement actions, as discussed below. even so, the 

FTc continues to develop performance measures that 

directly reflect whether desired outcomes were achieved. 

in FY 2010, the FTc will measure the outcome of 

its advocacy. Under its consumer protection goal, in 

addition to counting consumer complaints added to 

the FTc’s database, Performance Measure 1.1.2 

indicates the percentage of the agency’s consumer 
33 Fiscal Year 

2009

per

formance section

protection law enforcement actions that were responsive 

to the consumer complaint information gathered by 

the agency. although this is another output measure, 

it brings the FTc closer to determining its role in the 

ultimate desired outcome of a marketplace free of 

fraud, deception, and unfair practices that cause 

consumer injury. 

The FTc has two outcome measures to its maintain 

competition goal. These two measures (Performance 

Measures 2.2.2 and 2.2.4) seek to measure the 

consumer savings that result from merger and 

nonmerger enforcement. The FTc now measures 

its achievement of outcomes using five long-term 

performance targets: (1) the five-year consumer 

protection performance target (Performance Measure 

1.2.1) to save consumers approximately $2 billion 

through law enforcement actions stopping consumer 

fraud; (2) the five-year maintain competition 

performance target (Performance Measure 2.2.3) to 

take action against anticompetitive mergers in markets 

with a total of at least $125 billion in annual sales; (3) 

the five-year maintain competition performance target 

(Performance Measure 2.2.5) to take law enforcement 

action against anticompetitive nonmerger conduct 

in markets with a total of at least $40 billion in 

annual sales; (4) the five-year maintain competition 

performance target (Performance Measure 2.2.2) to 

achieve at least $2.5 billion in savings for consumers 

through merger enforcement; and (5) the five-year 

maintain competition performance target (Performance 

Measure 2.2.4) to achieve at least $400 million in 

savings for consumers through nonmerger enforcement. 

These five performance targets, in addition to annual 

outcome performance measures, continue to provide 

valuable indicators of how the FTc is progressing 

toward achieving its strategic goals to protect consumers 

and maintain competition. 

Verification and Validation 

of Performance Data 

The financial data and performance results described 

in this report enable the FTc to administer its 

programs, gauge their success, and make adjustments 

necessary to improve program quality for the public. 

The Message from the chairman on p. iv provides 

that FTc’s financial and performance data presented 

in this report are complete, reliable, and accurate. 

The following steps outline how the agency ensured 

the performance information it reports is complete, 

accurate, and consistent: 

• Developed policy and documented the procedures 

used to ensure timely reporting of complete, 

accurate, and reliable actual results relative to the 

key performance measures. 

• Held program managers accountable to set 

meaningful and realistic targets that also challenge 

the agency to leverage its resources. This includes 

ensuring ongoing monitoring of performance 

targets so they are updated to reflect changes in key 

factors that impact the agency’s ability to achieve 

such results. Further, when appropriate, program 

managers are required to explain how they will 

improve performance when targets are not met. 

• Worked with the office of inspector General 

to ensure an independent review of the systems 

and methodologies used for collecting performance 

data and ensured that senior economists from 

the Bureau of economics reviewed statistical 

data, as appropriate. 

• subjected performance measurement results 

to periodic senior management and commission 

review throughout the fiscal year. This process 

includes substantiating that actual results 

reported are indeed correct whenever those 

results reveal significant discrepancies or 

variances from the target. 
34 Federal Trade Commission

Performance and Accountability Report

per

formance section

agency program managers also monitor and maintain 

automated systems and databases that collect, track, and 

store performance data, with support provided by the 

FTc’s information and Technology Management office. 

in addition to the general controls in place over the 

network that ensure only authorized staff can access key 

systems, each application (system), such as the consumer 

sentinel network, incorporates internal validation edits 

to ensure the accuracy of data contained therein. These 

application edits include checks for reasonableness, 

consistency, and accuracy. crosschecks between other 

internal automated systems also provide assurances 

of data reasonableness and consistency. in addition to 

internal monitoring of each system, experts outside 

of the business units (i.e., the Bureaus of consumer 

Protection and competition) routinely monitor the 

data collection. For example, senior economists from 

the Bureau of economics review statistical data used 

by the other bureaus to calculate performance results. 

Finally, in addition to the items described above, with the 

update of its strategic Plan for Fiscal Years 2009 to 2014 

(effective FY 2010), the FTc reassessed, and will monitor, 

the validation procedures to ensure that changes to or 

addition of performance measures are properly recorded 

and accurately reported. 

The Financial Management office is responsible 

for providing direction and support on data 

collection methodology and analysis, ensuring that 

data quality checks are in place, and accurately 

reporting performance management data. Within the 

Performance section, the FTc has identified the data 

sources for each performance measure.

legend for Upcoming Performance Measure summary Tables

a	signifies that the target is met or exceeded or that the FTc is on track to meet the five-year target.

r signifies that the target is not met or that the FTc is not on track to meet the five-year target.

n/a signifies that the performance measure does not have a five-year target.
35 Fiscal Year 

2009

per

formance section

Performance Measure Summary Table 

The tables that follow capture FY 2009 targeted performance compared to actual results.

strategic Goal 1: Protect consumers

FY 2009 FY 2009 5-Year Performance Measure Target actual Target

objective 1.1 identify Fraud, Deception, and Unfair Practices That cause the Greatest consumer injury

1.1.1 collect and enter complaints and inquiries into the 1.8 million 3.3 million a n/a consumer database. 

Key Measure: 1.1.2 The percentage of the agency’s 65% 79% a n/a consumer protection law enforcement actions that are responsive to 

consumer complaint information gathered by the agency.

objective 1.2 stop Fraud, Deception, Unfairness, and other Unlawful Practices Through law enforcement

Key Measure: 1.2.1 save consumers money each year $400 million $505 million $2 billion a a

through law enforcement.

objective 1.3 Prevent consumer injury Through education

55 million 43.1 million r 1.3.1 Track consumer protection messages accessed online or in print. n/a

messages messages

1.3.2 Track consumer protection messages related to identity theft, 10 million 10.1 million a n/a accessed online or in print. messages messages

1.3.3 Track consumer protection messages in spanish, accessed 3 million 1.8 million r n/a online or in print. messages messages

Key Measure: 1.3.4 Track (a) the number of times print (a) 2,750 articles (a) 2,484 articles r

media publish articles that refer to the FTc consumer protection (B) circulation of (B) circulation of n/a

r 702 million activities and (B) the circulation of media that publish those articles. 750 million

objective 1.4 enhance consumer Welfare Through research, reports, advocacy, and international 

cooperation and exchange

Key Measure: 1.4.1 convene or participate substantially in 

workshops and conferences on novel or challenging consumer 6 workshops and 9 workshops and 30 a

conferences conferences a

protection problems or issues. 

1.4.2 issue reports on novel or challenging consumer protection 

problems or issues. 8 reports 14 reports a 40 a

1.4.3 File public and advocacy comments with other federal and 6 comments 2 comments r 30 r

state government agencies.

1.4.4 cooperate with foreign government agencies on enforcement 20 agencies 39 agencies a 20 a

matters with cross-border components.

1.4.5 Provide consumer protection related policy or technical input 

to foreign government agencies or international organizations. 20 instances 81 instances a 100 a
36 Federal Trade Comm ission

Performance and Accountability Report

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strategic Goal 2: Maintain competition

Performance Measure FY 2009 

Target

FY 2009 

actual

5-Year 

Target

objective 2.1 identify anticompetitive Mergers and Practices that cause the Greatest consumer 

injury

Key Measure: 2.1.1 achieve positive outcomes in matters in which 

Hsr requests for additional information are issued.1* 90% 100% a n/a

Key Measure: 2.1.2 Percentage of significant nonmerger 

investigations that result in a positive outcome.*

90% 100% a n/a

2.1.3 Track the number of enforcement actions for the total mission, for the 

(a) merger and (B) nonmerger actions. establish Baseline (a) 19

(B) 7 n/a

2.1.4 report the number of (a) second requests, (B) reportable transactions 

for which premerger notifications were received, (c) Hsr investigations that 

resulted in enforcement action, (D) transactions in which antitrust issues 

were resolved through voluntary abandonment or restructuring because of 

FTc concerns, and (e) investigations closed because the evidence indicated 

that a competitive problem was unlikely.

establish Baseline

(a) 15

(B) 684

(c) 13

(D) 1

(e) 3

n/a

2.1.5 Track the number of significant nonmerger investigations closed each 

year, (a) with enforcement action and (B) without enforcement action. establish Baseline (a) 7

(B) 27 n/a

objective 2.2 stop anticompetitive Mergers and Business Practices Through law enforcement

Key Measure: 2.2.1 Positive result of cases brought by the FTc due 

to alleged violations.*

80% 96% a n/a

2.2.2 achieve savings for consumers through merger enforcement. $500 million $791 

million a

$2.5 

billion a

2.2.3 Take action against mergers likely to harm competition in markets 

with a total of at least $125 billion in sales over a five-year period; $25 

billion in sales each year.

$25 billion $22.3 

billion r

$125 

billion a

2.2.4 achieve savings for consumers through nonmerger enforcement. $80 million $188 

million a

$400 

million a

2.2.5 Take action against anticompetitive conduct in markets with a 

total of at least $40 billion in annual sales over a five-year period; $8 billion 

each year.

$8 billion $14.6 

billion a

$40 

billion r

2.2.6 save consumers at least six times the amount of agency resources 

allocated to the merger program over a five-year period. 

(efficiency Measure)

600% (annual) 2,132% a 600% 

(cumulative)a

2.2.7 save consumers at least four times the amount of agency resources 

allocated to the nonmerger enforcement program over a five-year period. 

(efficiency Measure)

400% (annual) 1,035% a 400% 

(cumulative)a

*see respective performance measure discussion in the Performance section for definitions of “positive outcomes” and “positive results.”
37 Fiscal Year 

2009

per

formance section

strategic Goal 2: Maintain competition (continued)

Performance Measure FY 2009 

Target

FY 2009 

actual

5-Year 

Target

objective 2.3 Prevent consumer injury Through education

2.3.1 Quantify the number of “hits” on antitrust information on the 

FTc’s website. 15 million 11.9 million r n/a

Key Measure: 2.3.2 Track (a) the number of times print 

media publish articles that refer to FTc competition activities and 

(B) the circulation of the media that publish those articles.

(a) 2,500 articles

(B) establish 

Baseline

(a) 1,569 articles

(B) circulation of 

360 million 

r

n/a

objective 2.4 enhance consumer Welfare Through research, reports, advocacy, and international 

cooperation and exchange

2.4.1 convene or participate substantially in workshops, 

conferences, seminars, and hearings involving significant 

competition-related issues.

4 events 8 events a 20 a

Key Measure: 2.4.2 issue studies, reports, and working or 

issues papers on significant competition-related issues.

8 documents 20 documents a 40 a

Key Measure: 2.4.3 Make advocacy filings with other 

federal and state government agencies urging them to assess the 

competitive ramifications and costs and benefits to consumers of 

their policies.

6 filings 10 filings a 30 a

2.4.4 issue advisory opinions to persons seeking agency review 

of proposed business actions. 2 – 3 opinions 1 opinion r 12 r

2.4.5 File amicus briefs with courts addressing competitionrelated issues. 2 – 3 briefs 2 briefs a 12 a

2.4.6 Track the volume of traffic on www.ftc.gov relating to 

competition research, reports, advocacy, and international 

cooperation and exchange.

1.1 million 1.6 million a n/a

Key Measure: 2.4.7 Track the number of (a) cases on which 

the FTc cooperated with foreign competition authorities, (B)

consultations with or comments to foreign competition authorities, 

(c) written submissions to international fora, (D) international 

events attended, and (e) leadership positions held by FTc staff in 

international competition organizations.

(a) 30 cases

(B) 25 consultations 

or comments 

(c) 7 submissions

(D) 8 events

(e) 5 positions

(a) 87 cases a

(B) 56 consultations 

or comments a

(c) 19 submissionsa

(D) 125 events a

(e) 10 positions a

n/a
38

per

formance section

Strategic Goal 1: 

Protect Consumers 

Prevent Fraud, Deception, and 

Unfair Business Practices in the 

Marketplace 

I. Strategic View 

as the nation’s premier consumer protection agency, 

the FTc strives to protect consumers by preventing 

fraud, deception, and unfair business practices in the 

marketplace. The agency applies four related objectives 

to achieve this broad-reaching goal. 

Objective 1.1 Identify fraud, deception, and unfair 

practices that cause the greatest consumer injury. 

The FTc identifies practices that cause consumer injury 

by analyzing the consumer complaint data collected 

in its consumer sentinel network database, holding 

public discussions, and monitoring the marketplace. 

Objective 1.2 Stop fraud, deception, unfairness, and other 

unlawful practices through law enforcement. 

The FTc uses information gathered under objective 1.1 

to target its law enforcement efforts. its law enforcement 

program aims to stop and deter fraud and deception, 

protect consumers’ privacy, and increase compliance 

with its consumer protection statutes and rules. 

Objective 1.3 Prevent consumer injury through education. 

The FTc targets its education efforts to give consumers 

the information they need to protect themselves from 

injury and to explain to businesses how to comply with 

applicable laws. 

Objective 1.4 Enhance consumer welfare through 

research, reports, advocacy, and international 

cooperation and exchange. 

The FTc complements its law enforcement and 

education efforts by gathering, analyzing, and making 

public certain information concerning the nature of 

business practices in the marketplace. 

AnnualCreditReport.com—The ONLY Authorized Source 

to Get a Free Annual Credit Report 

anyone can write a catchy jingle, but 

only annualcreditreport.com provides 

consumers with a truly free credit report. 

annualcreditreport.com requires no hidden 

fees or trial memberships. 

The Fair credit reporting act guarantees 

consumers access to a free credit report 

from each of the three nationwide reporting 

agencies—experian, equifax, and TransUnion—

every twelve months. The FTc has received 

complaints from consumers who thought 

they were ordering their free annual credit report, but instead paid hidden fees or agreed to 

unwanted services. 

The FTc urges consumers to not be fooled by Tv ads, email offers, or online search results. 

To learn more, visit www.ftc.gov/freereports or www.annualcreditreport.com.
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II. Strategic Analysis 

Objective 1.1 Identify fraud, deception, 

and unfair practices that cause the greatest 

consumer injury. 

identifying the practices that cause the greatest 

consumer injury is the first step in preventing 

fraud, deception, and unfair business practices 

in the marketplace. 

Our Strategy 

To identify consumer protection problems, the 

FTc collects and analyzes data from many sources. 

its consumer response center receives consumer 

complaints and inquiries via a toll-free number 

(877-FTc-HelP); an internet complaint form available 

at www.ftc.gov; and postal mail. Partners such as 

Better Business Bureaus, the internet crime complaint 

center (a partnership between the Federal Bureau of 

investigation and the national White collar crime 

center), the U.s. Postal inspection service, Phone 

Busters (the canadian fraud database), and the 

national Fraud information center of the national 

consumers league also share with the FTc the 

consumer complaint data they collect. The FTc 

continues to pursue new international partnerships to 

increase its collection of information from consumer 

agencies in other countries. For example, through 

www.econsumer.gov (a portal where consumers can 

report complaints about online and related transactions 

with foreign countries), the agency partners with other 

Top Consumer Complaints in Calendar Year 2008

For the ninth year in a row, identity theft is 

the number one consumer complaint category, 

accounting for 26 percent of the 1,223,370 

total complaints received between January and 

December 2008. To learn more, visit 

www.ftc.gov/opa/2009/02/2008cmpts.shtm. 

RANK CATEGORY % OF TOTAL COMPLAINTS

1 Identity theft 26

2 Debt collection (third party and creditor) 9

3 Shop-at-home and catalog sales 4

4 Internet services 4

5 Foreign money offers and counterfeit checks 3

6 Credit bureaus, information furnishers, credit report users 3

7 Prizes, sweepstakes, and lotteries 3

8 Television and electronic media 2

9 Banks and lenders 2

10 Telecom equipment and mobile services 2

11 Computer equipment and software 2

12 Business opportunities, employment agencies, work-at-home plans 2
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members of the international consumer Protection 

enforcement network, an international group that 

identifies and shares information about worldwide 

consumer protection issues. 

This information is entered into a database within 

the FTc’s consumer sentinel network (csn) and is 

analyzed by FTc staff to identify current trends and 

to target fraudulent, deceptive, and unfair business 

practices. The agency makes the more than 12.1 million 

consumer fraud, identity theft, financial, and Do not 

call (Dnc) complaints that it has collected during the 

past five years available, through csn’s secure website, 

to more than 1,700 law enforcement organizations in 

the United states, canada, and australia. although the 

FTc does not act on behalf of individual consumers, 

the consumer complaint database enables the FTc and 

its law enforcement partners to quickly spot trends, 

target the most serious consumer frauds reported by 

consumers, and coordinate law enforcement efforts. The 

ongoing input and analysis of current complaint data 

allows the FTc to move rapidly to stop illegal practices 

before they can cause more harm to consumers. 

consumers can call the FTc’s identity theft tollfree number, 877-iD-THeFT, or view its website 

(www.consumer.gov/idtheft) to obtain information 

about, and report, identity theft. at the end of the 

fiscal year, the csn contained nearly 1.4 million 

identity theft complaints that the agency has collected 

during the past five years. The FTc uses this data to 

spot patterns that can help criminal law enforcement 

agencies prosecute identity theft and help individuals 

and businesses avoid the financial consequences of 

this crime. 

The FTc and U.s. secret service case referral 

Program jointly identify criminal cases, and strong 

leads are referred to regional task forces, many led by 

the secret service Financial crimes Division. The FTc 

is a civil law enforcement agency without criminal 

authority. The FTc’s criminal liaison Unit identifies 

law enforcement agencies and case agents for referral 

of specific types of consumer fraud cases. They also 

educate criminal law enforcement authorities about 

the FTc and its mission, and coordinate training of 

FTc staff by criminal law enforcement authorities 

to help staff prepare cases for referral and ensure 

smooth progress of parallel prosecutions. The FTc, in 

partnership with the secret service and the Department 

of Justice, continues a training program that provides 

local and state law enforcement officers with practical 

tools to enhance combined efforts to combat identity 

theft, including information about accessing consumer 

complaint data. This training program provided onsite training to more than 750 officers from more than 

220 agencies in FY 2009. To date, the FTc and its 

partners, who now include the U.s. secret service, 

the U.s. Postal inspection service, the Federal Motor 

carrier safety administration, and the Federal Bureau 

of investigation, have conducted a total of 37 seminars, 

training more than 4,850 law enforcement officers from 

more than 1,570 agencies.

Performance Results

The key performance measure under this objective 

measures the percentage of agency consumer protection 

law enforcement actions that are responsive to the 

consumer complaint information gathered by the agency 

(Performance Measure 1.1.2). This measure was added 

in FY 2007 to take the agency a step beyond counting 

the number of complaints collected to examining the 

extent to which these complaints help set the consumer 

protection agenda under this objective. 

Performance Measure 1.1.1 requires the FTc to collect 

and enter complaints and inquiries into the csn. The 

large number of consumer complaints and inquiries 

collected provides the agency a broad view of what 

reporting consumers are experiencing.

The csn allows the FTc and its law enforcement 

partners to identify and develop cases against operators 

engaging in deceptive, fraudulent, and unfair practices 

that cause the greatest consumer injury. By analyzing 

consumer complaints, the FTc targets its enforcement 
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and education efforts to the top areas of consumer 

complaints. not only does the csn help identify 

the most serious and commonly reported consumer 

protection problems, but the real-time analysis quickly 

informs the agency of emerging scams so it can move 

rapidly to stop ongoing consumer injury. For the ninth 

year in a row, identity theft topped the annual list of 

top-10 complaint categories gathered by the agency. 

The FTc continues to focus law enforcement and 

education resources on this area of continuing concern 

to consumers and businesses, as well as the other areas 

identified as priorities.

¡OJO! Mantente alerta contra el fraude. Infórmate con la FTC

(Be on the alert against fraud. Stay informed with the FTC.)

The FTc’s Hispanic initiative includes a significant outreach component that includes 

disseminating consumer information in spanish, providing consumer news to the 

spanish-language media, and building partnerships with organizations, businesses, 

and leaders in the Hispanic community. The FTc’s spanish-language fraud awareness 

campaign, “Mantente alerta contra el fraude. infórmate con la FTc,” aims to 

encourage spanish speakers to identify fraudulent and deceptive business practices and 

to tell the FTc about them when they occur. To learn more, visit www.ftc.gov/ojo.

in addition to the ¡OJO! website, the FTc has a number of spanish-language “micro 

sites” on topics such as credit, business opportunities and work-at-home scams, identity 

theft, information security, and diet and fitness. additionally, the FTc has more than 

100 publications in spanish. consumers can find them at www.ftc.gov/espanol.
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Performance Measure 1.1.1

collect and enter complaints and inquiries into the consumer database. (numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

0.7 1.0 1.0 1.0 1.0 1.1 1.8 3.1 1.8 3.3

Data source: The FTc’s consumer sentinel network.

Target exceeded. To aid in assessing its effectiveness in identifying fraudulent, deceptive, and unfair practices, the FTc measures the 

number of consumer complaints and inquiries added to its csn each fiscal year. in FY 2009, the FTc added more than 3.3 million entries 

into its database, 183 percent of the target of 1.8 million.

since FY 2008, the total has included consumer complaints alleging Dnc violations. Due to the extent by which the FTc exceeded this 

target in FYs 2008 and 2009, the agency has re-evaluated the target in the latest update of the FTc strategic Plan, significantly increasing 

the target for FY 2010 and further increasing it for each of the following four years.

Key Measure: Performance Measure 1.1.2

The percentage of the agency’s consumer protection law enforcement actions that are responsive to consumer complaint information 

gathered by the agency.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 50% 76% 65% 71% 65% 79%

Data source: case managers report on e-questionnaires whether csn complaints were used to identify the practices that resulted in 

a law enforcement action.

Target exceeded. in FY 2009, 79 percent, or 70 out of 89, of the agency’s actions were responsive to consumer complaint information. 

Because other sources of information such as letters from consumers or businesses, congressional inquiries, and articles 

on consumer or economic subjects also may trigger FTc action, the agency has determined that 65 percent is the optimal target for 

this measure. 
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Objective 1.2 Stop fraud, deception, 

unfairness, and other unlawful practices 

through law enforcement.

once fraud, deception, and unfair business practices 

are identified in the marketplace, the FTc focuses its 

law enforcement efforts on areas where it can have the 

greatest impact for consumers. 

Our Strategy

Through its law enforcement efforts, the FTc stops 

fraudulent, deceptive, and unfair practices by obtaining 

court-ordered injunctions against defendants. The 

agency enforces section 5 of the FTc act, which 

prohibits unfair or deceptive acts or practices in or 

affecting commerce, as well as an increasing number 

of statutes and rules proscribing specific unlawful 

practices. enforcement efforts in FY 2009 included 

cases covering a range of topics, with priority given to 

addressing prohibited practices in the financial services 

marketplace, privacy and data security concerns, Dnc 

violations, technology abuses, deceptive marketing of 

health products, deceptive “green” marketing claims, 

and issues related to marketing to children.

With advances in technology, spammers, spyware 

operators, fraudulent telemarketers, and other scam 

artists can strike quickly on a global scale. an increasing 

number of complaints the FTc receives involve 

international transactions, and an increasing number 

of law enforcement investigations the FTc undertakes 

involve some international component. as a result, the 

FTc has implemented a comprehensive program to 

combat cross-border consumer protection law violations. 

The FTc continues to develop new bilateral and 

multilateral enforcement partnerships and to strengthen 

existing ones. Given its broad jurisdiction and limited 

resources, the agency focuses on the most serious 

identified problems, using varied enforcement tools. 

Performance Results

This objective has one performance measure. This key 

performance measure (Performance Measure 1.2.1) is 

to save consumers more than $400 million annually 

through law enforcement. The measure of the dollars 

saved is an important one. The FTc’s experience in 

most cases is that once it files a complaint and obtains 

National Do Not Call Registry

The FTc manages the national 

Do not call (Dnc) registry, which 

gives consumers the opportunity to limit 

telemarketing calls. as of september 30, 

2009, there were more than 191 million 

active registrations on the Dnc registry. 

The federal government created the 

national registry to make it easier and more 

efficient for consumers to stop getting 

unwanted telemarketing calls. 

The Do-not-call improvement act of 

2007, which became law in February 2008, 

ensures that telephone numbers placed on 

the Dnc registry will remain on it permanently. consumers can register online 

at www.donotcall.gov or call toll-free 888-382-1222 (TTY 866-290-4236) 

from the number they wish to register. registration is free. To learn more, visit 

www.donotcall.gov. 
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a court or administrative order, the defendants stop 

their practices. if they fail to comply with an order, they 

are subject to contempt or civil penalty proceedings. 

By stopping these practices, the agency directly prevents 

further consumer losses caused by these defendants. 

also, by publicizing these law enforcement actions and 

distributing consumer education materials, the FTc 

alerts consumers to fraudulent and deceptive practices, 

educates them to avoid such practices in the future, 

and, ultimately, seeks to increase consumer confidence 

in the marketplace, while deterring similar behavior 

by would-be violators. The agency estimates consumer 

savings by totaling the estimated annual sales of 

defendants in the 12 months prior to the FTc’s 

contacting the defendants or filing a complaint. 

Key Measure: Performance Measure 1.2.1

save consumers money each year through law enforcement. (Dollars shown in millions.) Due to the potential of great variance of savings 

on an annual basis, this measure has a five-year target of $2 billion. For FY 2009, the measure was changed to include only fraudulent sales 

from defendants, and not other economic injury.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

$400 $366 $400 $293 $400 $519 $400 $474 $400 $505

Data source: To make dollar value assessments, staff uses company sales and other records, as well as information from employees and 

customers, where applicable.

Target exceeded. in FY 2009, the FTc saved consumers nearly $505 million, 126 percent of its annual target. Based on the results in 

FYs 2007 to 2009, the agency would be on track to meet its five-year target of $2 billion by FY 2011. Because of the great variance of 

savings on an annual basis, and the exclusion of non-monetary economic harm caused by defendants’ actions, this measure was replaced 

with new measures in the latest update of the FTc strategic Plan.

Objective 1.3 Prevent consumer injury through 

education.

an educated consumer and business community is a 

first line of defense against fraud and deception.

Our Strategy

The FTc is committed to using education and outreach 

as cost-effective methods to prevent consumer injury, 

increase business compliance, and leverage its law 

enforcement program. virtually every consumer 

protection effort, from compliance efforts including 

internet surfs (monitoring the internet for potentially 

false or deceptive advertising for a targeted product 

or service) and law enforcement sweeps to the 

announcement of new rules and regulations, contains 

an educational component. Through print publications, 

websites, electronic media, videos, interactive quizzes, 

tutorials, special events, and partnerships, the agency 

reaches out to tens of millions of consumers and 

businesses every year on issues that directly affect their 

daily activities. 

The csn helps the FTc tailor its education efforts to 

topical areas where fraud, deception, unfair practices, 

and information gaps are causing the greatest injury. 

Through the FTc’s education efforts, consumers are 

given the tools they need to spot potentially fraudulent 

and other illegal promotions, and businesses are 

advised of how they can comply with the law. as 

with the agency’s law enforcement activities, many of 

its educational efforts now involve the internet. The 

internet plays an integral role in the FTc’s education, 

deterrence, and enforcement efforts by permitting 

the agency to reach vast numbers of consumers and 

businesses quickly, efficiently, and inexpensively. 

Through the internet, our education efforts have not 

only a national impact, but also a global effect. 
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The FTc coordinates with hundreds of private and 

public partners to provide information about specific 

education campaigns, products, and services. 

The FTc’s Hispanic outreach program forms 

partnerships by providing national and community 

groups with spanish-language consumer and business 

education materials, and conducting countless media 

interviews with spanish-language media. The agency 

also distributes a quarterly, bilingual newsletter to more 

than 1,500 local and national Hispanic organizations, 

maintains a spanish-language version of the FTc’s 

website at www.ftc.gov/espanol, and translates signature 

FTc “microwebsites” like onGuardonline; Deter, 

Detect, Defend: avoid identity Theft; and Money 

Matters. in addition to the Hispanic outreach program, 

a growing component of the agency’s consumer and 

business education efforts involve strategic partnerships 

to reach african americans.

Going forward, the FTc will continue to focus 

consumer and business education efforts on emerging 

consumer protection issues as well as those subjects 

identified by its consumer complaint databases where 

information gaps cause the greatest injury. The FTc will 

continue to use technology creatively, including new 

interactive media, to extend the reach of its consumer 

and business education.

“Who Cares?”

With so many sources of health information at consumers’ fingertips—many of them online—it can 

be tough to tell fact from fiction, or useful health products and services from those that don’t work or 

aren’t safe.

The FTc has created a website to help consumers find reliable sources of information on important health 

topics, whether you are an older consumer or a family member, caregiver, or friend. consumers can:

• Find links to agencies and organizations that care about topics like generic drugs, hormone therapy, caregiving, 

surgery to improve vision, alternative medicine, hearing aids, Medicare fraud, and medical identity theft; 

• learn how to spot misleading and deceptive claims; and 

• Find out who to contact to ask questions, enlist help, or speak up if you think a health product or 

service isn’t living up to its promises.

To learn more, visit www.ftc.gov/whocares.
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Performance Results

The FTc’s key performance measure under this 

objective gauges the agency’s impact by tracking the 

number of times print media publish articles that 

refer to FTc consumer protection activities and 

the circulation of media that publish those articles 

(Performance Measure 1.3.4). This measure takes a 

step beyond counting the number of hits on the FTc’s 

consumer protection web pages.

The remaining three measures (Performance Measures 

1.3.1, 1.3.2, and 1.3.3) help the FTc gauge the impact 

of its education efforts by tracking the number of 

consumer and business education publications it 

distributes in response to requests from the public. 

These performance measures help ensure that the 

agency is engaging in a sufficient amount of educational 

activity and that the educational materials are aimed at 

particularly vulnerable populations. 

The FTc seeks to alert as many consumers as possible 

to the telltale signs of fraud, deception, unfair business 

practices, and other critical consumer protection issues 

through dissemination of its education messages. 

Money Matters: www.ftc.gov/moneymatters

The Federal Trade commission has 

created a website to help consumers 

tackle some money issues head-on: 

www.ftc.gov/moneymatters. 

it’s become an all-too-familiar headline— 

lay-offs and furloughs, falling housing prices 

and rising consumer debt, declining retail 

sales and increasing costs of living. Money—

and the lack of it—is a source of stress and 

frustration. and while people the world 

over are working to stem the global financial 

situation we’re in, folks at home are trying to 

gain some control over their own financial 

situations, too. 

Practicing positive, tried and true money 

management techniques—and learning 

how to recognize and avoid some “ripped 

from the headlines” consumer scams and 

rip-offs—can help you weather tough 

economic times.
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ideally, the agency would like to measure the extent 

to which its educational materials improve consumer 

understanding and help consumers get better value for 

their money. This effect would be extremely difficult to 

measure, but traaking the distribution of publications 

provides a rough idea of how many consumers the FTc 

is reaching. The measure of the number of publications 

distributed by the FTc indicates its impact in 

educating consumers, although it does not fully 

capture the millions of FTc publications that are 

distributed to consumers through the FTc’s partners. 

Performance Measure 1.3.1

Track consumer protection messages accessed online or in print. (numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

20.0 35.3 25.0 53.0 45.0 47.0 50.0 49.2 55.0 43.1

Data source: The FTc tracks its publication inventory to determine the number of print messages accessed, and uses a computer 

software program to compile the number of FTc website accesses.

Target not Met. in FY 2009, the FTc accomplished 78 percent of its target of 55 million publications. of the more than 43 million 

consumer protection messages accessed, nearly 30.3 million were accessed online and nearly 12.8 million were print publications 

distributed by the FTc. 

Performance Measure 1.3.2

Track consumer protection messages related to identity theft, accessed online or in print. (numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

3.0 3.7 3.3 9.4 8.0 9.6 9.0 11.4 10.0 10.1

Data source: as a subset of the totals tracked in Performance Measure 1.3.1, the FTc tracks the number of consumer 

protection messages related to the high-profile and emerging issues of data security and identity theft. The FTc tracks 

its publication inventory to determine the number of print messages accessed, and uses a computer software program 

to compile the number of FTc website accesses.

Target exceeded. in FY 2009, the FTc accomplished 101 percent of its target of 10 million. The 10.1 million result includes more 

than 6.5 million messages accessed online, and more than 3.6 million print publications distributed, including more than 61,000 

comprehensive toolkits to help organizations combat identity theft by raising awareness and educating people by hosting a Protect 

Your identity Day. Because this is a subset of measure 1.3.1, this performance measure was removed in the latest update of the FTc 

strategic Plan.
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Performance Measure 1.3.3

Track consumer protection messages in spanish, accessed online or in print.

(numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

0.5 1.1 0.6 2.4 2.2 2.2 3.0 2.0 3.0 1.8

Data source: as a subset of the totals tracked in Performance Measure 1.3.1, the FTc tracks the number of consumer protection 

messages, in spanish, accessed online or in print. The FTc tracks its publication inventory to determine the number of print messages 

accessed, and uses a computer software program to compile the number of FTc website accesses.

Target not Met. in FY 2009, the FTc accomplished 60 percent of its target of three million. The 1.8 million result includes more than 

1 million messages accessed online, and more than 800,000 print publications distributed. While the number of print publications 

distributed remained relatively static over the last decade, as more consumers and businesses went online, the number of publications 

accessed through the internet soared before leveling off within the past few years. The agency’s partners are increasingly opting to 

post the FTc’s information on their own websites, and the agency has also increasingly taken advantage of the outreach potential of 

the “blogosphere.” The FTc is unable to measure the number of its consumer protection messages accessed on partner websites or 

blogs. although the FY 2009 target, based on past growth, was not met, the agency’s media outreach continues to be active, its list of 

partnerships is growing, and community outreach efforts through its newsletter and conference participation continue to be strong. 

Because this is a subset of measure 1.3.1, this performance measure was removed in the latest update of the FTc strategic Plan.

Key Measure: Performance Measure 1.3.4

Track (a) the number of times print media publish articles that refer to the FTc consumer protection activities and (B) the circulation 

of media that publish those articles.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish (a) 3,066 (a) 2,500 (a) 3,100 (a) 2,750 (a) 2,484

Baseline (B) 863 (B) 675 (B) 791 (B) 750 (B) 702 

million million million million million 

Data source: To determine the number of articles, the agency performs a lexisnexis search of the “U.s. newspapers and Magazines” 

database. This includes national newspapers, local newspapers, hundreds of magazines, and industry sources. Data on average 

circulation are drawn from The standard Periodical Directory (28th edition, 2005), or directly from the publishers of the periodicals.

Target not Met. in FY 2009, the FTc accomplished 90 percent of its target of 2,750 articles, and 94 percent of its target of a circulation 

of 750 million. as more people turn to television and the internet for news, print media circulation has continued to decline, and this 

performance measure was removed in the latest update of the FTc strategic Plan.
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Objective 1.4 Enhance consumer welfare through 

research, reports, advocacy, and international 

cooperation and exchange.

research, reports, advocacy, and international 

cooperation and exchange complement law enforcement 

and education to enhance the welfare of consumers.

Our Strategy

This fourth objective and its related performance 

measures capture the FTc’s increasing use of a variety 

of strategies in addition to law enforcement and 

education to enhance consumer welfare. notably, 

the agency convenes conferences and workshops 

through which experts and other experienced and 

knowledgeable parties identify novel or challenging 

consumer protection issues and discuss ways to address 

those issues. The FTc also issues reports that the 

congress has mandated or that the agency has prepared 

on its own initiative that analyze consumer protection 

problems and suggest public and private sector policies 

to address them. Further, the FTc files comments with 

federal and state government bodies advocating policies 

that promote the interests of consumers and highlight 

the role of consumer and empirical research in their 

decision making. The agency also testifies before the 

congress on consumer protection issues. 

The FTc also engages in a variety of international 

cooperation, exchange, and advocacy activities designed 

to promote market-based consumer protection policies 

and effective cross-border coordination. Finally, the 

FTc files amicus briefs (friend of the court briefs) 

to aid courts’ considerations of important consumer 

protection issues. 

in the latest update of the FTc strategic Plan, the FTc 

added a new performance measure under this objective 

to help determine the outcome of its advocacy efforts. 

These activities will continue to enhance consumer 

welfare by guiding the FTc’s consumer protection 

policy decisions, as well as the decisions of other state, 

federal, and international policymakers.

Cross-Border Fraud and the U.S. SAFE WEB Act of 2006

The U.s. saFe WeB act has 

greatly enhanced the FTc’s 

ability to tackle cross-border 

fraud, including scams that 

take advantage of the economic 

downturn to bilk vulnerable 

consumers. For example, in 

FTc v. Mcs Programs, llc, 

filed as part of operation short 

change, the FTc used its saFe 

WeB authority to share information with canadian authorities. The FTc alleged that 

the defendants used telemarketing robocalls and the internet to convince U.s. and 

canadian consumers to pay them $690 to $899 for a phony “rapid debt reduction” 

program that would enable them to pay off their debt three to five times faster than 

they could under their current payment schedule. The FTc obtained an injunction 

halting the defendants’ scheme and continues to litigate this matter. To learn more, 

visit www.ftc.gov/oia/consumer.shtm.
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Performance Results

The key performance measure under this objective 

gauges the FTc’s efforts to enhance consumer 

welfare by tracking the number of workshops on 

novel or challenging consumer protection problems 

or issues the FTc convenes or substantially participates 

in (Performance Measure 1.4.1). various industries 

have given great weight to the FTc’s policy efforts 

that have resulted in part from what has been learned 

through its workshops.

The FTc also gauges the impact of its efforts to 

enhance consumer welfare by tracking the number 

of reports it issues on novel or challenging consumer 

protection issues (Performance Measure 1.4.2) and 

tracking the number of public and advocacy comments 

it files with other federal and state government agencies 

(Performance Measure 1.4.3). The agency tracks its 

international consumer protection efforts to cooperate 

with foreign government agencies on enforcement 

matters with cross-border components (Performance 

Measure 1.4.4), and to provide consumer protection 

related policy or technical input related to foreign 

government agencies or international organizations 

(Performance Measure 1.4.5).

Key Measure: Performance Measure 1.4.1

convene or participate substantially in workshops and conferences on novel or challenging consumer protection problems or issues. 

The five-year target is 30 workshops.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 6 10 6 16 6 9

Data source: The agency counts the number of workshops and conferences by examining various sources, such as agency reports, 

FTc press releases, weekly Bureau planners, and responses to direct inquiries to divisions and regional offices.

Target exceeded. in FY 2009, the FTc exceeded its target and convened or participated substantially in nine workshops and conferences 

on novel or challenging consumer protection problems or issues. The overage is attributable to the many challenging consumer protection 

issues the FTc deemed it important to address in FY 2009. For example, the agency hosted the first two in a series of FTc roundtable 

discussions examining consumer protection issues in debt collection proceedings against consumers. The agency also hosted two 

workshops on how businesses can better secure personal information and protect the privacy of consumers and employees.
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Performance Measure 1.4.2

issue reports on novel or challenging consumer protection problems or issues. The five-year target is 40 reports.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a na na n/a 8 8 8 12 8 14

Data source: various sources, such as FTc press releases, weekly Bureau reports, and responses to direct inquiries of divisions and 

regional offices.

Target exceeded. in FY 2009, the FTc accomplished 175 percent of its target of eight reports. This target was significantly exceeded 

because in addition to the reports issued by the agency annually, this fiscal year, there were many consumer protection problems or issues 

in which the agency determined it important to issue reports. For example, the FTc has taken a leading role in addressing the privacy, 

security, and other risks of consumer harm associated with new technologies, and issued reports on online behavioral advertising and 

mobile marketing in FY 2009.
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Performance Measure 1.4.3

File public and advocacy comments with other federal and state government agencies. The five-year target is 30 advocacy filings.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 6 7 6 6 6 2

Data source: various sources, such as agency reports, FTc press releases, weekly Bureau planners, and responses to direct inquiries to 

divisions and regional offices.

Target not Met. in FY 2009, the FTc accomplished 33 percent of its target of six public and advocacy comments. The performance 

shortfall is explained in part because in order to respond more effectively to frauds stemming from the economic crisis, the agency diverted 

more resources to enforcement, which led to fewer advocacies than the FTc usually achieves. This shift of resources was necessitated by 

the need, for example, to bring 18 enforcement actions against entities engaged in mortgage foreclosure and loan modification fraud. 

Performance Measure 1.4.4

cooperate with foreign government agencies on enforcement matters with cross-border components. The five-year target is 100 

government agencies, or 20 per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 20 23 20 46 20 39

Data source: internal weekly reports to the chairman, litigation assistance reports, trip and visitor logs, and other informal sources.

Target exceeded. in FY 2009, the FTc accomplished 195 percent of its target of 20 matters. The overage, in large part, is attributable to 

the FTc’s information sharing and investigative assistance powers under the U.s. saFe WeB act of 2006 and to the increased capacity, 

in the past five years, of the FTc’s international partners to engage in cross-border enforcement activities. The performance measure and 

target have been re-evaluated for the latest update in the FTc strategic Plan.
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Performance Measure 1.4.5

Provide consumer protection related policy or technical input to foreign government agencies or international organizations. The five-year 

target is 100 instances, or 20 per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 20 34 20 88 20 81

Data source: internal weekly reports to the chairman, litigation assistance case logs, trip and visitor logs, and other informal sources.

Target exceeded. in FY 2009, the FTc accomplished 405 percent of its target of 20 instances. The overage is attributable, in large part, to 

the FTc’s ability to fund its own technical assistance programs in the consumer protection area as a result additional funding provided by 

congress and to the FTc’s increased activity on international policy and data security policy issues in the past five years The performance 

measure and targets have been re-evaluated in the latest update of the FTc strategic Plan.

resources Utilized—strategic Goal 1

(Dollars shown in millions)

2005 2006 2007 2008 2009

Full-Time equivalents 546 548 570 591 597

obligations $115 $116 $126 $140 $152

net cost $94 $98 $105 $124 $131

note: Differences between these obligations and net costs and the financial statements are due to rounding.
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Strategic Goal 2:

Maintain 

Competition

Prevent anticompetitive Mergers and other 

anticompetitive Business Practices in the Marketplace

I. Strategic View

a key function of the FTc is to protect and strengthen 

the free and open markets that are the cornerstone of a 

vibrant economy. aggressive competition among sellers 

in an open marketplace gives consumers the benefit 

of lower prices, higher quality products and services, 

maximum choice, and innovation leading to beneficial 

new products and services. The FTc seeks to promote 

vigorous competition by using the antitrust laws to 

prevent anticompetitive mergers and to stop business 

practices that diminish competition, such as agreements 

among competitors about prices or other aspects of 

competition (referred to as nonmerger enforcement). 

The agency applies four related objectives to achieve this 

broad-reaching goal.

Objective 2.1 Identify anticompetitive 

mergers and practices that cause the 

greatest consumer injury.

The FTc identifies mergers and business practices that 

have resulted in or are likely to result in anticompetitive 

effects. agency staff conducts thorough factual 

investigations and apply economic analysis 

to distinguish between actions that threaten the 

operation of free markets and those actions that are 

benign or procompetitive.

Objective 2.2 Stop anticompetitive mergers and 

business practices through law enforcement.

When the FTc identifies a harmful or potentially 

harmful merger or business practice, it takes 

enforcement action under the antitrust laws to stop it, 

either through an administrative challenge or in federal 

court. in many instances, the agency is able to reach an 

agreement with the parties that remedies its competitive 

concerns and avoids litigation.

Objective 2.3 Prevent consumer injury 

through education.

The FTc seeks to prevent anticompetitive activity by 

educating businesses and consumers about the antitrust 

laws and FTc efforts to ensure competitive markets.

Objective 2.4 Enhance consumer welfare through 

research, reports, advocacy, and international 

cooperation and exchange.

The FTc seeks to advance its mission to maintain 

competition and enhance consumer welfare by 

gathering, analyzing, and making public certain 

information concerning the nature of competition 

as it affects U.s. commerce.

Competition Counts

competition in america is about price, selection 

and service. it benefits consumers by keeping 

prices low and the quality and choice of goods 

and services high. The FTc promotes healthy 

competition and challenges anticompetitive 

business practices to make sure that consumers 

have access to quality goods and services, and 

that businesses can compete on the merits of 

their work. The FTc has developed a variety 

of resources to explain its competition work. 

competition counts explains how consumers win 

when businesses compete and provides an overview of the types of matters investigated by the bureau. 

To learn more, visit http://www.ftc.gov/bc/edu/pubs/consumer/general/zgen01.pdf.
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II. Strategic Analysis

Objective 2.1 Identify anticompetitive 

mergers and practices that cause the 

greatest consumer injury.

identifying anticompetitive mergers and 

anticompetitive business conduct is the first 

step in effective antitrust enforcement.

Our Strategy

The FTc seeks to identify anticompetitive mergers 

and practices with as much accuracy as possible. While 

certain business conduct (such as price fixing among 

competitors) is clearly anticompetitive, mergers and 

many other forms of business conduct can benefit, 

harm, or have no effect on consumers. consequently, 

both under- and over-enforcement can harm consumers’ 

interests. The agency seeks to take enforcement action 

against transactions or conduct that harms, or is likely 

to harm, consumers. at the same time, the agency seeks 

to avoid taking actions that prevent businesses from 

completing transactions or engaging in practices that 

fundamentally benefit consumers or have no competitive 

effect. The FTc also tries to identify enforcement 

targets as efficiently as possible so that it can devote 

the bulk of its resources to further investigation of, and 

possible challenge to, the most problematic mergers and 

practices. a related, but important, consideration is to 

conduct each inquiry in a way that minimizes the cost 

or inconvenience to businesses, while still enabling the 

agency to gather sufficient information to support each 

enforcement decision.

Merger Activities. The premerger notification 

requirements of the Hart-scott-rodino (Hsr) act 

provide the FTc with an effective starting point 

for identifying potentially anticompetitive mergers, 

acquisitions, and joint ventures (collectively referred 

to as mergers) before they are consummated. The Hsr 

act requires companies to report certain proposed 

mergers to the FTc and the Department of Justice 

(DoJ), which jointly enforce the Hsr act, and wait 

for a specified period (usually 30 days) to allow for 

antitrust review.

FTc staff examine each transaction to determine 

whether it poses a threat to competition. in most cases, 

a reasonable judgment can be made about whether the 

merger has the potential to be anticompetitive based on 

the materials filed with the Hsr act notification. in 

other cases, a formal request for additional information 

may be issued by the FTc. This is referred to as a 

“second request.” Because the parties may consummate 

a transaction after substantially complying with the 

second request and waiting for a short time period 

(usually 30 days), a second request investigation 

The Hart-Scott-Rodino (HSR) Act

The Hart-scott-rodino act established the federal premerger 

notification program, which provides the FTc and the 

Department of Justice (DoJ) with information about large 

mergers and acquisitions before they occur. The parties 

to certain proposed transactions must submit premerger 

notification to the FTc and DoJ. Premerger notification 

involves completing an Hsr Form, also called a “notification 

and report Form for certain Mergers and acquisitions,” with 

information about each company’s business. The parties may 

not close their deal until the waiting period outlined in the Hsr act has passed, or the government has 

granted early termination of the waiting period. To learn more, visit www.ftc.gov/bc/hsr.
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typically requires a significant investment of resources 

by the FTc. The agency must act quickly to gather 

and review information to make a decision on whether 

or not to pursue enforcement action to block a merger 

within the timeframe set out by the Hsr act and rules.

in FY 2009, the FTc continued to face a demanding 

merger review workload. indeed, an analysis of 

enforcement data shows that the number of second 

requests issued as a percentage of reported transactions 

has increased from 1.3 percent in FY 2008 to 2.2 

percent in FY 2009. additionally in FY 2009, the 

agency filed a number of merger complaints in federal 

court. overall, notwithstanding a decline in merger 

activity in FY 2009 due to current economic conditions, 

the number of enforcement actions decreased by only 

9.5 percent this year. looking forward, the FTc will 

continue to devote considerable resources to the merger 

review process. The agency expects the number of 

reported merger transactions to increase as the economy 

recovers from recession.

While the major Hsr act amendments in 2001 

reduced the number of mergers subject to the advance 

reporting requirement, they did not change the 

standard of legality for mergers. Whereas the vast 

majority of potentially problematic mergers continue 

to be subject to the revised Hsr filing requirements, 

smaller merger transactions may still be anticompetitive. 

consequently, the FTc continues to devote attention to 

the identification of unreported, usually consummated, 

mergers that could harm consumers. in FY 2009 the 

agency successfully challenged three such transactions. 

This effort involves monitoring trade press, industry 

sources, and the internet to stay informed of industry 

developments; following up on case leads from 

congressional offices, other executive Branch agencies, 

and state and local governments; and encouraging 

consumers, businesses, and the bar to notify the FTc 

of possible anticompetitive mergers.

Nonmerger Activities. in the nonmerger area, agency 

staff review complaints received from consumers, 

businesses, congressional offices, and elsewhere to 

identify potentially anticompetitive nonmerger business 

practices. in addition, the FTc has pursued a “positive 

agenda” of planned initiatives; that is, the agency has 

taken a systematic and proactive approach 

to identifying specific conduct likely to pose 

the greatest threat to consumer welfare. The focus 

continues to be on the types of practices, such as 

agreements among competitors, which are most likely 

to harm consumers.

in deploying its scarce enforcement resources, the 

agency focuses on sectors of the economy, such as health 

care, energy, real estate, or high technology, that have 

a significant impact on consumers’ daily lives. also, 

the agency considers the deterrent effects of antitrust 

enforcement on businesses and whether the FTc has 

enforcement experience in an area that will enable 

the agency to make an impact quickly and efficiently. 

Finally, consideration is given to whether the matter 

presents an opportunity to contribute positively to the 

development of antitrust law.
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Performance Results

There are two key performance measures under this 

objective: obtaining a positive outcome in at least 90 

percent of Hsr requests for additional information 

(Performance Measure 2.1.1); and concluding at least 90 

percent of significant nonmerger investigations (those 

with at least 150 hours of investigative effort) with a 

positive outcome (Performance Measure 2.1.2).

success on these two key outcome measures indicates 

that the FTc is effectively screening Hsr reported 

mergers and nonmerger investigations to identify those 

that raise significant antitrust issues and 

warrant further investigation and possible 

enforcement action, while at the same time 

permitting deals or conduct that are neutral or 

beneficial to consumers to proceed unimpeded. 

The three remaining measures (Performance 

Measures 2.1.3, 2.1.4, and 2.1.5) under this objective 

require that the FTc report detailed supplemental 

information on its merger and nonmerger activities. 

These measures are directly related to Performance 

Measures 2.1.1 and 2.1.2, and their purpose is to 

provide an informative backdrop against which the 

key performance measures can be contextualized. 

Key Measure: Performance Measure 2.1.1

achieve positive outcomes in matters in which Hsr requests for additional information are issued (note: final outcomes of cases are 

reported in Performance Measure 2.2.1).

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

60–80% 52% 60–80% 59% 90% 100% 90% 100% 90% 100%

Data source: information on the outcome of second request investigations is obtained from FTc press releases, agency databases, and 

internal communications from staff attorneys. Press releases are the source of information for public actions, such as consent orders, 

preliminary injunctions, and the results of judicial review, while internal communications are used to identify those investigations 

that were closed because parties abandoned a transaction or because staff did not find that the transaction might be likely to harm 

competition. internal communications are also used to identify those matters that were originally closed, but where subsequent 

events indicated that the transaction injured competition. These data are then cross referenced with the list of known second request 

investigations as recorded in the official agency database to calculate the performance measure.

Target exceeded. The FTc obtained a positive outcome in 16 out of 16 second request investigations that were concluded in FY 2009, 

or 100 percent. The FTc obtained seven consent orders, authorized staff to file five preliminary injunction complaints in federal court 

seeking to block a merger, raised anticompetitive concerns causing the parties to withdraw one transaction, and finally, closed three 

investigations without subsequent events indicating that the transaction injured competition. in the cases where staff was authorized to 

file a preliminary injunction complaint, the commission also issued an administrative complaint; however, for measurement purposes 

this investigation is counted only once. For mergers, a positive outcome includes:

• commission authorization of a complaint for preliminary injunction in federal court

• issuance of an administrative complaint

• acceptance of a consent agreement

• The parties’ voluntary abandonment or restructuring of a proposed transaction based on FTc antitrust concerns

• closing of an investigation in which possible antitrust issues were raised where no subsequent events indicated that the transaction 

injured competition

• negative outcomes would include closing investigations that are later determined to raise significant antitrust issues. This measure 

has been removed in the latest strategic Plan.
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Key Measure: Performance Measure 2.1.2

Percentage of significant nonmerger investigations that result in a positive outcome.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

60–80% 50% 60–80% 40% 90% 100% 90% 100% 90% 100%

Data source: information on the outcome of significant nonmerger investigations is obtained from press releases, various agency 

and Bureau databases, and internal communications. Press releases are the source of information for public actions, such as consent 

orders, permanent injunctions, and the results of judicial review, while internal communications are used to identify those matters 

that were originally closed, but where subsequent events indicated that the business practice injured competition. These data are then 

cross referenced with information on the number of hours logged to each investigation to identify those investigations that meet the 

significance threshold of more than 150 hours.

Target exceeded. The FTc achieved a positive outcome in 34 out of 34 significant nonmerger investigations, or 100 percent. 

specifically, the FTc obtained six consent orders, filed one permanent injunction complaint in federal court, and closed 27 

significant nonmerger investigations without subsequent events indicating that the business practice injured competition. 

For nonmergers, a positive outcome includes:

• commission authorization to file a complaint in federal court

• issuance of an administrative complaint

• acceptance of a consent agreement

• resolution of antitrust concerns without enforcement action

• closing of an investigation in which possible antitrust issues were raised where no subsequent events indicated that the business 

practice injured competition

• as with Performance Measure 2.1.1, a negative outcome would include closing an investigation of conduct that is later determined 

to raise significant antitrust issues. This measure has been removed in the latest strategic Plan.
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Performance Measure 2.1.3

Track the number of enforcement actions for the total mission, for the (a) merger and (B) nonmerger actions.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish (a) 22 establish (a) 21 establish (a) 19 

Baseline (B) 11 Baseline (B) 4 Baseline (B) 7

Data source: information on merger and nonmerger enforcement actions is taken from the FTc’s press releases and internal 

communications from staff attorneys. Press releases are the source of information for public actions, such as consent orders and 

preliminary and permanent injunctions, while internal communications are used to identify those merger enforcement matters where 

the parties voluntarily abandoned or restructured a proposed transaction based on FTc antitrust concerns.

as mentioned above, this measure is intended to provide the supporting information needed to place the two key Performance Measures 

2.1.1 and 2.1.2 in the appropriate context and is not intended to be evaluated as a stand-alone measure. Thus, where the result under 

Performance Measure 2.1.1 states that the agency obtained a positive outcome in 100 percent of second request investigations, this 

measure tells how many (output) of those positive outcomes are enforcement actions. enforcement actions include commission 

authorization of a complaint for preliminary injunction or permanent relief in federal court, issuance of an administrative complaint, 

acceptance of a consent agreement, and, for mergers, the parties’ voluntary abandonment or restructuring of a proposed transaction 

based on FTc antitrust concerns. in FY 2009, the FTc took 19 merger enforcement actions and seven nonmerger enforcement actions. 

in addition to the seven merger consent agreements accepted for comment and the one withdrawn transaction that are cited under 

Performance Measure 2.1.1 (which tracks the positive outcomes of second request Hsr investigations), in other non-Hsr merger 

investigations or Hsr investigations where no second request was issued, the FTc obtained two consent agreements and two additional 

transactions were abandoned by the parties based on FTc concerns.

Performance Measure 2.1.4

report the number of (a) second requests, (B) reportable transactions for which premerger notifications were received, (c) Hsr 

investigations that resulted in enforcement action, (D) transactions in which antitrust issues were resolved through voluntary 

abandonment or restructuring because of FTc concerns, and (e) investigations closed because the evidence indicated that a competitive 

problem was unlikely.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish 

Baseline

(a) 31

(B) 2,108 

(c) 20

(D) 5

(e) 11

establish 

Baseline

(a) 21

(B) 1,656 

(c) 12

(D) 2

(e) 7

establish 

Baseline

(a) 15

(B) 684 

(c) 13

(D) 1

(e) 3

Data source: information on the number of second requests and the number of reportable transactions is obtained from the FTc’s 

Premerger office and cross-referenced with data from the agency matter management database, while information on the number 

of enforcement actions and on the investigations closed without enforcement action is obtained from press releases and internal 

communications.

This measure reports detailed supplemental information on the FTc’s merger activities and is intended to provide the context against 

which to assess the results obtained under key Performance Measure 2.1.1. This measure tells us how many transactions were reported that 

could have been subject to a second request, how many second requests were actually issued, and the outcome of these investigations. 
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Performance Measure 2.1.5 

Track the number of significant nonmerger investigations closed each year, (a) with enforcement action and (B) without 

enforcement action.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish (a) 11 establish (a) 4 establish (a) 7 

Baseline (B) 17 Baseline (B) 14 Baseline (B) 27

Data source: information on significant nonmerger investigations is obtained from press releases, various agency and Bureau databases, 

and internal communications. Press releases are the source of information for public actions, such as consent orders and permanent 

injunctions, while the internal matter management database is used to identify those nonmerger matters that were closed without an 

enforcement action. These data are then cross referenced with information on the number of hours logged to each investigation to 

identify the ones that meet the significance threshold with more than 150 hours.

as in the case of the two previous measures, this measure reports detailed supplemental information on the FTc’s nonmerger activities 

(Key Performance Measure 2.1.2), and is intended to facilitate evaluation of the results of that measure.

Objective 2.2 Stop anticompetitive mergers and 

business practices through law enforcement.

law enforcement represents the most direct method 

by which the FTc pursues its goal of stopping mergers 

and business practices that significantly threaten 

competition and harm consumers.

Our Strategy

in both merger and nonmerger enforcement, the FTc 

focuses primarily on transactions or practices most likely 

to harm consumers, that is, mergers of firms competing 

in the same market or markets, and agreements among 

direct competitors. other activities, such as unilateral 

action by a single firm, or a merger or agreement 

involving a supplier and customers or between a firm 

and a potential competitor, may threaten competition 

and therefore are also subject to FTc scrutiny. Given 

the agency’s limited resources and because the FTc 

and DoJ jointly enforce the antitrust laws, the FTc 

directs much of its attention and resources to certain 

segments of the economy that are particularly important 

to consumers and in which it has particular expertise. 

These include health care, pharmaceuticals, energy, real 

estate, and technology.

To stop potentially anticompetitive mergers and 

practices through law enforcement, the FTc seeks 

legal remedies under the antitrust laws through federal 

court action, administrative proceedings, or negotiated 

settlements. For mergers, the most effective and costefficient strategy has been to prevent anticompetitive 

mergers before they occur. The agency has implemented 

this strategy primarily through its authority to seek 

federal court injunctions preventing these transactions. 

in many cases, the merging parties elect not to defend a 

court challenge and instead agree to resolve competitive 

concerns through a consent agreement. This approach 

is suitable when the competitive problem relates to only 

a portion of the transaction, such that a divestiture of 

assets will be sufficient to preserve or restore competition 

while allowing other competitively neutral or beneficial 

aspects of the merger to go forward. in other instances, 

the parties may abandon a transaction after assessing 

the likely outcome of an FTc court challenge. When 

a merger already has been consummated, the FTc 

generally relies on administrative litigation to restore 

competition lost as a result of the merger. 
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in nonmerger matters, the FTc seeks to stop ongoing 

activity that harms competition. The commission 

may initiate administrative proceedings before an 

administrative law Judge to adjudicate the issues and 

establish a basis for an order that the parties “cease and 

desist” from anticompetitive conduct. The FTc also has 

the authority to seek relief in federal courts, although it 

historically has used this option sparingly in nonmerger 

matters. again, the agency is often able to negotiate a 

consent agreement with the parties that remedies the 

problem without need for litigation.

in both merger and nonmerger matters, thorough 

investigation and sophisticated legal and economic 

analysis are of critical importance to ensure accurate 

assessment of the potential for competitive harm 

resulting from the transaction or conduct in question 

and, if necessary, demonstrate the likelihood of harm 

before an adjudicative body. When the FTc concludes 

that the likelihood of such harm indicates a law 

violation, and no settlement is possible, the commission 

authorizes its staff to litigate the matter. The frequency 

with which the agency prevails in litigation or secures 

a consent order to restore competition is an important 

indicator of its success in producing tangible benefits for 

consumers. This is not to say that the FTc, or any law 

enforcement agency, should win every case.

The commission issues complaints when, based on the 

findings of staff investigations, it has “reason to believe” 

a merger or conduct is anticompetitive. some cases 

involve very close issues, on which reasonable minds can 

and do differ. other cases may be very difficult from a 

litigation standpoint, but are still worth pursuing. all of 

the FTc’s antitrust challenges are defended by highly 

competent and well-financed counsel. in addition, 

the FTc’s responsibilities include taking action to 

help shape the development of the antitrust laws. To 

fulfill this duty, the agency inevitably must bring cases 

that pose litigation risks, especially where there is no 

clear precedent and the FTc is seeking to establish 

a new legal principle. The FTc also helps consumers 

by bringing cases to clarify, or improve upon, existing 

precedent. The target for the key Performance Measure 

2.2.1 reflects the reality that, even when the agency 

brings a meritorious case and litigates it well, success 

is not ensured. in addition, setting the standard too 

high could be detrimental if the effect were to deter the 

agency from bringing important, but risky, cases.

What is Antitrust? 

The word “antitrust” dates from 

the late 1800s, when powerful 

companies dominated industries, 

working together as “trusts” to 

stifle competition. Thus, laws 

aimed at protecting competition 

have long been labeled “antitrust 

laws.” Fast forward to the 21st 

century: You hear “antitrust” in 

news stories about competitors 

merging or companies conspiring 

to reduce competition. The 

FTc enforces antitrust laws by 

challenging business practices that could hurt consumers by resulting in higher prices, 

lower quality, or fewer goods or services.
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Performance Results

The key performance measure (Performance Measure 

2.2.1) under this objective tracks how many times 

the FTc obtained a positive result in matters where 

the agency had reason to believe that a merger or a 

course of conduct was anticompetitive. additionally, 

for both merger and nonmerger enforcement, the 

FTc measures the volume of commerce and estimates 

consumer savings in markets in which it takes successful 

enforcement action as an indicator of the scope of the 

FTc’s antitrust enforcement activities. external factors, 

such as level of merger activity, may cause the results to 

fluctuate significantly from year to year. consequently, 

the two volume-of-commerce targets (Performance 

Measures 2.2.2 and 2.2.3) and the two consumer 

savings targets (Performance Measures 2.2.5 and 2.2.6) 

are each expressed in terms of an aggregate target for 

the five-year strategic Plan period, using annual targets 

as gauges of progress toward the five-year target. This 

is also a result of the fact that duration of nonmerger 

investigations is often measured in years.

in addition to measuring consumer savings in 

absolute terms, the agency uses efficiency measures 

that state the FTc will try to save consumers more 

than the amount of agency resources allocated to 

the merger and nonmerger programs (Performance 

Measures 2.2.6 and 2.2.7).

Key Measure: Performance Measure 2.2.1

Positive result of cases brought by the FTc due to alleged violations.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

80% 95% 60–80% 100% 80% 100% 80% 96% 80% 96%

Data source: information on the result of cases brought by the FTc due to alleged violations is obtained from FTc press releases, 

agency databases, and internal communications from staff attorneys. Press releases are the source of information for public actions, 

such as consent orders and preliminary and permanent injunctions and the results of judicial review, while internal communications are 

used to identify those investigations that were closed because parties abandoned or restructured a transaction.

Target exceeded. The agency exceeded its target, achieving relief through litigation, reaching a successful settlement agreement, or 

persuading parties not to proceed with an anticompetitive acquisition in 25 out of 26, or 96 percent, of enforcement matters brought to 

conclusion during the fiscal year. The FY 2009 actual results do not include cases that were not final as of september 30, 2009, or are on 

appeal. at the end of FY 2009, litigation was pending for six significant matters. The outcome of these matters will be reflected in the 

actual results reported in appropriate future fiscal years. Positive results include:

• The parties’ abandonment of an anticompetitive transaction after antitrust concerns are identified

• an administrative consent agreement to resolve antitrust concerns

• a successful challenge in court
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Performance Measure 2.2.2

achieve savings for consumers through merger enforcement. The five-year target for consumer savings in markets in which the agency took 

successful action to stop anticompetitive mergers is $2.5 billion, or $500 million per year. (Dollars shown in millions)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a $500 $805 $500 $360 $500 $791

Data source: estimates of consumer savings associated with merger positive results are prepared by the lead attorney responsible for 

an individual investigation, and subsequently subject to review by staff economists. in the absence of case specific information (such as 

price and sales data), the estimate is generated using the volume of commerce in the affected markets as a basis for the calculation.

Target exceeded. in FY 2009, the FTc surpassed the annual objective, saving consumers an estimated $791 million. Furthermore, 

considering the results obtained in the previous two years of the five-years covered by this measure, it appears that the agency is on track to 

exceed the overall, long term, target.

Performance Measure 2.2.3

Take action against mergers likely to harm competition in markets with a total of at least $125 billion in sales over a five-year period; 

$25 billion in sales each year. (Dollars shown in billions)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

$40.0 $61.8 $40.0 $13.4 $25.0 $42.6 $25.0 $14.9 $25.0 $22.3

Data source: estimates of the volume of commerce associated with merger positive results are prepared by the lead attorney 

responsible for an individual investigation, and subsequently subject to review by staff economists. The estimate is generated 

using the volume of commerce for the affected markets using public sources and confidential data submitted by the parties 

during the course of the investigations.

Target not Met. The FTc’s positive merger results affected markets in which the total estimated volume of commerce was more than 

$22 billion, 11 percent shy of the annual target. However, after the first three of the five years covered by this performance measure, the 

agency has taken action against anticompetitive mergers in markets with a total of around $80 billion, and is thus currently on pace to 

exceed its five-year target. During FY 2009, the FTc obtained positive results in 17 merger matters, resulting in nine consent agreements, 

three transactions that were abandoned based on the antitrust concerns raised by staff during the course of the investigation, and five 

transactions that were abandoned after staff was authorized by the commission to file a preliminary injunction complaint. in the case 

of consent agreements, the actions taken by the FTc consist primarily of structural remedies, accompanied in some cases by conditions 

restricting the future conduct of the merged entity. in eight out of the nine consent agreements stipulated in FY 2009, the parties agreed 

to divest certain crucial assets to resolve the competitive concerns raised by the commission.
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Performance Measure 2.2.4

achieve savings for consumers through nonmerger enforcement. The five-year target for consumer savings in markets in which the agency 

took successful action to stop anticompetitive conduct is $400 million, or $80 million per year. (Dollars shown in millions)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a $80 $75 $80 $28 $80 $188

Data source: estimates of consumer savings associated with nonmerger positive results are prepared by the lead attorney responsible for 

an individual investigation, and subsequently subject to review by staff economists. in the absence of case specific information (such as 

price and sales data), the estimate is generated using the volume of commerce in the affected markets as a basis for the calculation.

Target exceeded. During FY 2009, the FTc exceeded the annual target of $80 billion, obtaining approximately $188 million in estimated 

consumer savings, and seems to be on target to reach the overall, five-year, goal. During the first three years covered by this five-year target, 

the agency has obtained just over $291 million out of the overall goal of $400 million, or around 73 percent of the total.

Performance Measure 2.2.5

Take action against anticompetitive conduct in markets with a total of at least $40 billion in annual sales over a five-year period; $8 billion 

each year. (Dollars shown in billions)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

$20.0 $19.4 $20.0 $1.4 $8.0 $2.6 $8.0 $0.4 $8.0 $14.6

Data source: estimates of the volume of commerce associated with nonmerger positive results are prepared by the lead attorney 

responsible for an individual investigation, and subsequently subject to review by staff economists. The estimate is generated using the 

volume of commerce for the affected markets using public sources and confidential data submitted by the parties during the course of 

the investigations.

Target exceeded. in FY 2009, the FTc obtained positive results in nonmerger matters in markets where the total volume of commerce 

was $14.6 billion, almost twice the annual target of $8 billion. coupled with the results obtained in FYs 2007 and 2008, which were 

under the yearly target, the results would seem to suggest that the agency may not be on track to reach the five-year goal. However, 

given the degree to which this measure has fluctuated historically, it is not possible to predict with accuracy if the overall long-term goal 

will be met. During FY 2009, the FTc obtained a positive result in seven nonmerger matters, resulting in an equal number of consent 

agreements that imposed remedies that resolved the concerns raised by the agency. at a general level, the principal effect of the actions 

taken by the FTc is to prevent the parties involved from persevering in their anticompetitive conduct, and to thus generate savings for 

consumers.
65 Fiscal Year 

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Performance Measure 2.2.6

save consumers at least six times the amount of agency resources allocated to the merger program over a five-year period. (efficiency 

Measure)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 600% 2,500% 600% 1,121% 600% 2,132%

Data source: The ratio of consumer savings in merger enforcement actions to the amount of resources allocated to the merger program 

is calculated using data on consumer savings obtained under Performance Measure 2.2.2, divided into the amount of monetary 

resources expended on the merger program as reported by the FTc’s Financial Management office.

Target exceeded. During FY 2009, the agency saved consumers approximately 21 times the amount of resources devoted to the merger 

program. This result is in large part determined by the presence of several pharmaceutical cases, which involved significantly sized relevant 

product markets. We will continue to monitor and reassess the target moving forward

Performance Measure 2.2.7

save consumers at least four times the amount of agency resources allocated to the nonmerger enforcement program over a five-year 

period. (efficiency Measure)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 400% 424% 400% 164% 400% 1,035%

Data source: The ratio of consumer savings in nonmerger enforcement actions to the amount of resources allocated to the merger 

program is calculated using data on consumer savings obtained under Performance Measure 2.2.4, divided into the amount of 

monetary resources expended on the nonmerger program as reported by the FTc’s Financial Management office.

Target exceeded. During FY 2009, the FTc took enforcement action in seven nonmerger matters, saving consumers approximately 10 

times the amount of monetary resources expended on the nonmerger program. in this case the agency’s result is in large part driven by the 

presence of a single case involving a national trade association, with more than 9,000 members, that was investigated for having enabled 

and encouraged the exchange of competitively sensitive price information among its members. Data from the first three years of the fiveyear period suggest that the agency is likely to meet or exceed the overall target. This trend needs to be carefully monitored, however, given 

the unpredictability of future nonmerger enforcement activity, specifically with regard to the size and scope of the relevant geographic and 

product markets involved in each individual investigation, and thus to the amount of estimated consumer savings.
66

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Objective 2.3 Prevent consumer injury 

through education.

in addition to its law enforcement activity, 

the FTc provides substantial information to 

the business community and consumers a 

bout the role of the antitrust laws and 

businesses’ obligations under those laws.

Our Strategy

The FTc uses education and outreach to increase 

business compliance, which helps prevent consumer 

injury, and augment its law enforcement efforts. The 

agency pursues this strategy through guidance to the 

business community; outreach efforts to federal, state, 

and local agencies, business groups, and consumers; 

development and publication of antitrust guidelines, 

policy statements, and reports; and speeches and 

testimony. By using these mechanisms to signal its 

enforcement policies and priorities, the FTc seeks 

to deter would-be violators of the antitrust laws. 

in its complaints, “analyses to aid Public comment,” 

and press releases, the agency explains the relevant 

facts and issues of cases in which it files complaints or 

obtains consent orders, so the nature of the competitive 

problems is clear. each successful enforcement action 

not only promotes competition in one or more relevant 

markets, but also serves to communicate to the business 

and legal communities that the FTc can and will take 

action to challenge similar transactions or conduct in 

the future. This information greatly facilitates antitrust 

lawyers’ counseling of their clients and prevents many 

anticompetitive mergers from being proposed or 

anticompetitive practices from being implemented.

in addition, the FTc educates the public through 

guidelines, congressional or other types of testimony, 

conferences, hearings, and workshops (such as the 

series of conferences on health care related issues or the 

FTC Competition Enforcement Database

This new resource catalogs the 

agency’s competition enforcement 

actions from 1996 to the present 

by the type of violation (merger 

or nonmerger), action (consent 

order, injunction, or administrative 

complaint), industry, sector, and date.

Using these navigation categories, 

consumers and businesses can 

access individual reports containing 

short descriptions of each action, 

with click-through access to related 

documents, such as press releases and 

case filings. To learn more, visit 

www.ftc.gov/bc/caselist/index.shtml.
67 Fiscal Year 

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workshop on unilateral effects analysis and intellectual 

property rights); advisory opinions (addressing, for 

example, the proposed clinical integration program 

between a physician-hospital organization and health 

plans and self-insured employers); and reports (such 

as the reports on activities in the oil and natural gas 

industries, the development of markets for followon biologic drugs, and the short-term and long-term 

effects of “authorized generics” on competition in the 

prescription drug marketplace).

as a complement to FTc enforcement activity, the 

agency also advises, when asked, other federal and 

state government officials about the possible effects 

that various regulatory proposals may have in creating, 

maintaining, or forestalling competitive markets. The 

FTc has a long and distinguished history in this area. 

The FTc advocates market-based solutions through the 

publication of studies and reports, and participation in 

state and federal legislative and regulatory fora. 

The agency also participates as an amicus curiae (friend 

of the court) in judicial proceedings when substantial 

questions of antitrust law or competition policy are 

involved, especially when the FTc may add a different 

perspective to the deliberations because of its specialized 

knowledge or experience. 

Finally, in an effort to continue educating consumers 

and businesses on the important role of competition 

in providing the most valuable and efficient mix of 

price, choice, and innovation, in Fiscal Year 2009, the 

FTc implemented substantial changes to the agency’s 

maintaining competition web pages and continued 

to publish and disseminate reference and case-related 

documents. The goal was to improve how topical 

information, case materials, and reference documents 

are organized—in an effort to aid visitors in searching 

and finding relevant information—and to continuously 

update the growing body of reference material.

You Are Here: Learning About The Economy

This website takes kids to the virtual shopping mall where they find games and 

activities that let them experience advertising, competition, and the mission of the 

FTc. animated guides help kids navigate through fun activities with embedded 

lessons. To learn more, visit www.ftc.gov/youarehere.
68 Federal Trade Commission

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in FY 2009, the FTc published an updated version 

of the Bureau of competition User’s Guide to provide 

the general public and practitioners with a roadmap of 

how the Bureau of competition is organized and which 

employees deal with individual sectors or specific issues. 

The FTc continues to develop educational materials to 

help explain its work.

Performance Results

The FTc uses two performance measures to assess its 

performance in preventing consumer injury through 

education. The key measure (Performance Measure 

2.3.2) tracks the number of external print media, such 

as newspapers, magazines, business and trade journals, 

and professional journals that publish articles that refer 

to FTc competition activities, and the circulation 

of the media that publish those articles. The second 

measure (Performance Measure 2.3.1) tracks the volume 

of traffic on the FTc website on antitrust-related 

pages that are relevant to policymakers, the business 

and legal communities, and the public at large. These 

performance measures are good indicators of the flow of 

information provided to the public.

successful outreach and education efforts, as reflected 

by the above measures, will help consumers, because 

increased knowledge and understanding of the antitrust 

laws will help businesses stay in compliance. These 

measures also will help ensure that the agency engages 

in consumer, business, and international education that 

advances the culture of competition, which enhances 

consumer welfare.

The results of these two measures indicate a significant 

continued public interest in the FTc and its Maintain 

competition strategic goal. in addition, the broad 

and increasing distribution of educational and policy 

materials through electronic channels represents 

important leveraging of the agency’s resources.
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Performance Measure 2.3.1

Quantify the number of “hits” on antitrust information on the FTc’s website. (numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

10.0 9.8 10.0 10.6 15.0 15.7 15.0 12.5 15.0 11.9

Data source: The number of hits on antitrust related pages on the FTc’s internet website is calculated using data generated by the 

agency’s web tracker software. The raw data are run through a computer program that uses a logical algorithm to classify the majority 

of the pages as pertaining to competition or not. 

Target not Met. in FY 2007, the FTc identified a target of at least 15 million hits by extrapolating from information acquired in the 

previous three fiscal years using web tracking software. in FY 2009 the FTc replaced that web tracking software with software that more 

accurately monitors web traffic by, for example, filtering out hits generated by web crawlers. as a result, a comparison of the target, which 

relied on over-inclusive hit numbers, with FY 2009 data gathered using the more accurate replacement software, suggests that the target 

was not met, but the comparison is unsound to an unknown degree. The FTc has established a new target for this performance measure 

in the updated strategic Plan, taking into account the improved tracking software, to better assess whether it is meeting its consumer and 

business education objective.

Key Measure: Performance Measure 2.3.2

Track (a) the number of times print media publish articles that refer to FTc competition activities and (B) the circulation of the media 

that publish those articles.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish (a)2,982 (a)2,500 (a)1,858 (a)2,500 (a)1,569 

Baseline articles articles articles articles articles 

(B) 635 (B)establish (B)397 (B) (B)360

million Baseline million establish million

Baseline

Data source: The data used to generate the results for this measure are extracted from the lexis/nexis “U.s. newspapers and 

Magazines” database and are cross-referenced with circulation data obtained from public sources or directly from the publishers. 

Target not Met. This performance measure tracks the number of external print media, such as newspapers, magazines, business and 

trade journals, and professional journals that publish articles that refer to FTc competition activities, and the circulation of the media 

that publish those articles. The print media that published articles covering the competition-related activities of the FTc encompasses 

publications with varying degrees of territorial distribution (from local to national) and with circulations ranging from less than fifty 

thousand to more than one million copies. it is difficult to assess the performance of the agency under this measure in light of the severe 

decline experienced in the newspaper industry over the last year. This measure has been removed from the latest strategic Plan.
70 Fe

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Objective 2.4 Enhance consumer welfare through 

research, reports, advocacy, and international 

cooperation and exchange.

as a complement to its activities aimed at preventing 

consumer injury through education, the FTc provides 

substantial information to the business community, 

policymakers, and consumers about the role of the 

antitrust laws and businesses’ obligations under those laws.

Our Strategy

The FTc has unique jurisdiction to gather, analyze, and 

make public certain information concerning the nature 

of competition as it affects U.s. commerce. The FTc 

uses that authority to hold public hearings, convene 

conferences and workshops, conduct economic studies 

on competition issues of significant public importance, 

and issue reports of its findings. This authority 

advances the competition mission in numerous 

ways and is a fundamental component in the FTc’s 

strategy to enhance consumer welfare. The agency 

uses the information it develops internally to refine 

the theoretical framework for analyzing competition 

issues and the empirical understanding of industry 

practices, which contributes substantially to an effective 

response to changing marketplace conditions. The 

information gained through this authority, combined 

with the agency’s professional expertise on competition 

issues, also contributes to a better understanding of 

business practices and their competitive and economic 

implications by various entities, including the business 

sector, the legal community, other enforcement 

authorities, the judiciary, foreign competition agencies, 

and governmental decision makers and policymakers at 

the federal, state, and local levels.

The FTc pursues its objective of enhancing consumer 

welfare by actively developing its international 

cooperation and exchange program. staff members 

regularly participate in dialogue with competition 

authorities of other countries and through international 

organizations on transnational competition issues that 

affect american consumers and businesses and that 

promote sound consumer welfare-based competition 

policy. Part of this program includes participating in 

technical assistance missions to countries with new 

competition regimes.

The Competitive Significance of Healthcare Provider Quality Information

Follow-on Biologic Drugs: Framework for 

competition and continued innovation

The Federal Trade commission hosted two 

roundtables this year on emerging health care 

competition and consumer issues focusing on 

two distinct areas in which competition and 

consumer protection policies are implicated: 

competition among health care providers based on 

quality information; and competition provided by 

developing an abbreviated regulatory approval pathway for follow-on biologic drugs. To learn more, visit 

www.ftc.gov/bc/workshops/hcbio/index.shtml.
71 Fiscal Year 

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Performance Results

The key measures used to gauge the FTc’s success under 

this objective are the ones relating to the publication of 

reports and studies on competition issues (Performance 

Measure 2.4.2), making advocacy filings (Performance 

Measure 2.4.3), and international cooperation and 

exchange (Performance Measure 2.4.7).

These measures, in conjunction with Performance 

Measures 2.4.1, 2.4.4, 2.4.5, and 2.4.6, help to ensure 

that the agency is engaging in appropriate types and 

sufficient levels of research, reports, advocacy, and 

international cooperation and exchange and that they 

are relevant to consumers, policymakers, businesses, and 

the legal community. The target for these measures sets 

a minimum level of activity that the agency is expected 

to achieve. 

Performance Measure 2.4.1

convene or participate substantially in workshops, conferences, seminars, and hearings involving significant competition-related issues. 

The target is for the FTc to convene or participate substantially in at least 20 conferences, workshops, or hearings that are related to 

significant competition issues over a five-year period, or at least four per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 4 7 4 5 4 8

Data source: information on conferences involving significant competition related issues is taken from the FTc website 

(www.ftc.gov/ftc/workshops.shtm).

Target exceeded. During FY 2009, the FTc held eight conferences on competition-related topics, including health care, premerger 

notification, unilateral effects, and intellectual property.

Key Measure: Performance Measure 2.4.2

issue studies, reports, and working or issues papers on significant competition-related issues. The target is for the FTc to issue at least 40 

studies, reports, and working papers or issues papers on significant competition-related issues over a five-year period, or at least eight such 

reports per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 8 18 8 7 8 20

Data source: information on studies and reports on significant competition-related issues is taken from the FTc website 

(www.ftc.gov/be/research.shtm and www.ftc.gov/reports/index.shtm).

Target exceeded. in FY 2009, the FTc issued a total of 20 reports on competition-related matters, thus exceeding the annual target. 
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Key Measure: Performance Measure 2.4.3

Make advocacy filings with other federal and state government agencies urging them to assess the competitive ramifications and costs 

and benefits to consumers of their policies. The target is for the FTc to make at least 30 advocacy filings with other state and federal 

government agencies urging them to assess the competitive impact of their policies over a five-year period, or six per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 6 11 6 12 6 10

Data source: information on competition-related advocacy filings is drawn from the FTc website 

(www.ftc.gov/opp/advocacy_date.shtm).

Target exceeded. in FY 2009, the FTc made 10 advocacy filings, thus exceeding the annual target of six filings. 

Performance Measure 2.4.4

issue advisory opinions to persons seeking agency review of proposed business actions. The target is for the FTc to issue 12 advisory 

opinions over the five-year period, or at least two or three per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 2 – 3 2 2 – 3 1 2 – 3 1

Data source: information on competition-related advisory opinions is drawn from the FTc website 

(www.ftc.gov/ftc/opinions.shtm).

Target not Met. The FTc responded to only one request for an advisory opinion, which was from a physician hospital organization, and 

thus did not meet its annual target. The FTc’s performance under this goal is necessarily constrained by the fact that requests for advisory 

opinions are generated by private parties. changes in the regulatory framework of specific industries or even developments in the business 

models adopted by private parties—events over which the FTc has relatively little control—could generate unexpected spikes in requests 

for advisory opinions. as a result, the agency will not continue this measure in the latest strategic Plan.

Performance Measure 2.4.5

File amicus briefs with courts addressing competition-related issues. The target is for the FTc to file at least 12 amicus briefs with courts 

addressing competition-related issues in the five-year period, or at least two to three per year.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 2 – 3 4 2 – 3 1 2 – 3 2

Data source: information on amicus briefs addressing competition-related issues is drawn from the FTc website 

(www.ftc.gov/ogc/briefs.shtm).

Target Met. in FY 2009, the FTc met the annual target set by the strategic Plan, filing two amicus briefs.
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Performance Measure 2.4.6

Track the volume of traffic on www.ftc.gov relating to competition research, reports, advocacy, and international cooperation and 

exchange. (numbers shown in millions.)

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a 1.1 1.1 1.1 1.2 1.1 1.6

Data source: The number of hits on the FTc website relating to competition research, reports, and advocacy is calculated using data 

generated by the agency’s web tracker software.

Target exceeded. This performance measure relates to the volume of traffic on FTc web pages that relate to competition research, 

reports, advocacy, and international cooperation. in FY 2009, there were approximately 1.6 million visits that met the criteria set by 

this measure, and the target was exceeded.

Key Measure: Performance Measure 2.4.7

Track the number of (a) cases on which the FTc cooperated with foreign competition authorities, (B) consultations with or comments 

to foreign competition authorities, (c) written submissions to international fora, (D) international events attended, and (e) leadership 

positions held by FTc staff in international competition organizations.

2005 2006 2007 2008 2009

Target actual Target actual Target actual Target actual Target actual

n/a n/a n/a n/a establish 

Baseline

(a) 61 

(B) 70 

(c) 19 

(D) 48 

(e) 8

(a) 30 

(B) 25 

(c) 7 

(D) 8 

(e) 5

(a) 79 

(B) 89 

(c) 30 

(D) 68 

(e) 9

(a) 30 

(B) 25 

(c) 7 

(D) 8 

(e) 5

(a) 87 

(B) 56 

(c) 19 

(D) 125 

(e) 10

Data source: information on the international activities of the FTc is produced by the agency’s office of international affairs.

Target exceeded. The third key performance measure under this objective relates to international cooperation and convergence in the field 

of competition enforcement and policy development. Based on the experience accumulated over recent years in the area of international 

cooperation, the agency set preliminary targets for this measure; however, recent trends in the level of activity suggest that these targets 

should be revised upwards. The FTc continues to receive more requests to participate in these productive international consultations and 

more and more FTc cases have international components benefiting from international cooperation. indeed, during FY 2009, the FTc 

substantially exceeded the targets. agency staff cooperated with foreign competition authorities in 87 instances, provided 56 consultations 

or comments to foreign competition authorities, presented 19 submissions to international fora, attended 125 international events, and 

held 10 leadership positions in international organizations. This measure was modified in the latest strategic Plan.
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International Fellows Program

The U.s. saFe WeB act of 2006 provides for 

foreign staff exchanges between the FTc and 

foreign government agencies. Using this authority, 

the FTc has established an international Fellows 

Program for mid-career attorneys, investigators, 

and economists to work with FTc staff as special 

FTc employees for three to six months. Fellows 

work on FTc matters alongside agency staff. They 

learn first-hand about the FTc’s enforcement 

practices and approaches and share their own 

insights. so far, sixteen Fellows have come to the 

FTc from agencies in argentina, australia, Brazil, 

canada, the european commission, Hungary, 

israel, Mexico, Poland, singapore, switzerland, 

and Turkey. additionally the FTc has hosted five 

colleagues from austria, egypt, israel, and Turkey 

for shorter internships. To learn more, visit 

www.ftc.gov/oia/safeweb.shtm. 

resources Utilized—strategic Goal 2

(Dollars shown in millions)

 

2005 2006 2007 2008 2009

Full-Time equivalents 470 457 489 502 509

obligations $86 $86 $94 $103 $113

net cost ($16) ($23) ($47) $ 2 $ 68

note: Differences between these obligations and net costs and the financial statements are due to rounding.
FY 

2009

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75
76 Federal Trade Commission

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steven a. Fisher Message from the chief Financial officer

Chief Financial 

Officer

i

am pleased to report that in Fiscal Year (FY) 2009, 

the Federal Trade commission (FTc) maintained 

its record of strong fiscal stewardship on behalf of 

the american people. For the 13th consecutive year, 

independent auditors gave us an unqualified (clean) 

opinion on our financial statements. our auditors 

also stated for the controls they tested, they found no 

material weaknesses, significant control deficiencies, or 

nonconformances with the Federal Managers’ Financial 

integrity act and other applicable laws and regulations. 

in addition to this key accomplishment, other notable 

successes over the past fiscal year include:

• returning $69 million in redress funds to victims 

of fraud and scams following successful prosecution 

of defendants that resulted in court-ordered 

judgments or settlements.

• adding an objective, in support of the agency’s 

update to its strategic Plan, dedicated to financial 

and acquisition management, signaling the agency’s 

dedication to being good trusted stewards of 

taxpayer dollars. 

• Paying 98 percent of all invoices received from 

vendors on time. 

• Maintaining an internal control environment 

through developing and maintaining appropriate 

guidance and training for all staff.

• sustaining a green rating from the Department 

of the Treasury on the accuracy and timeliness of 

financial reporting practices involving Fund Balance 

with Treasury transactions. 

• exceeding the government-wide goal to allocate 

three percent of total contract dollars to companies 

owned by service-disabled veterans. 

We achieved these successes during a year characterized 

by change across the federal government and at 

the FTc. The new White House administration 

and leadership transition at the FTc brought new 

government-wide mandates and shifts in programmatic 

priorities. However, as our agency continues to 

demonstrate, we stand prepared to face change with 

flexibility and innovation, but our commitment to 

good financial management and effective oversight 

holds steadfast. The Financial section of this report 

tangibly captures an aspect of this oversight by showing 

how financial resources were expended to achieve 

performance results and explaining our financial 

position as of september 30, 2009.

i am proud of the outstanding work the FTc 

accomplishes every day for the benefit of american 

consumers. agency leadership and staff are committed 

to the agency mission, and, together we will continue 

fulfilling our commitments to the american people 

while successfully meeting future challenges.

steven a. Fisher 

chief Financial officer 

november 13, 2009
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Principal Financial Statements

Federal trade commission

BALANCE SHEET

As of September 30, 2009 and 2008

(Dollars shown in thousands)

 

2009 2008

assets (note 2):

intragovernmental:

Fund balance with Treasury (note 3)

investments (note 5)

accounts receivable, net (note 6)

$ 81,307

94,848

141

 $ 86,792 

117,514 

48 

Total intragovernmental

cash and other monetary assets (note 4)

accounts receivable, net (note 6)

General property and equipment, net (note 7)

176,296

18,141

55,564

15,473

204,354 

10,485 

87,982 

15,098 

total assets $265,474 $317,919 

liabilities: 

intragovernmental: 

accounts payable

other (note 9)

$ 371

2,265

 $ 21 

17,028 

Total intragovernmental

accounts payable

accrued redress receivables due to claimants

redress collected but not yet disbursed

Divestiture fund due

other (note 9)

2,636

12,879

55,496

69,746

45,542

18,784

17,049 

15,591 

87,800 

85,021 

45,485 

16,897 

total liabilities (notes 8 and 9) 205,083 267,843 

net Position (note 1(r)): 

cumulative results of operations - other funds 60,391 50,076 

total net Position 60,391 50,076 

total liabilities and net Position $265,474 $317,919 
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STATEMENT OF NET COST

For the years ended September 30, 2009 and 2008

(Dollars shown in thousands)

2009 2008

costs by strategic goal:

Protect consumers (Pc) strategic Goal:

Gross costs (note 12) $147,232 $140,705 

less: earned revenue (note 13) (15,947) (16,202)

net Pc strategic goal costs 131,285 124,503 

Maintain competition (Mc) strategic Goal:

Gross costs (note 12) 109,718 104,853 

less: earned revenue (note 13) (42,309) (103,192)

net Mc strategic goal costs 67,409 1,661 

net cost of operations $198,694 $126,164 
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STATEMENT OF CHANGES IN NET POSITION

For the years ended September 30, 2009 and 2008

(Dollars shown in thousands)

2009 2008

cumulative results of operations:

Beginning balance, adjusted $50,076 $72,603 

Budgetary financing sources:

appropriations used

other financing sources (non-exchange):

imputed financing

201,359

7,650

96,226 

7,411 

total financing sources

less: net cost of operations

209,009

198,694

103,637 

126,164 

net change 10,315 (22,527)

total cumulative results of operations $60,391 $50,076 

unexpended appropriations: 

Beginning balance, adjusted

Budgetary Financing sources:

appropriations received

less: appropriations used

$ -

201,359

201,359

$ -

96,226 

96,226 

Total Budgetary Financing sources - - 

total unexpended appropriations $ - $ -

net Position (note 1 (r)) $60,391 $50,076 
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STATEMENT OF BUDGETARY RESOURCES

For the years ended September 30, 2009 and 2008

(Dollars shown in thousands)

2009 2008

Budgetary resources (note 15):

Unobligated balance, brought forward, october 1:

recoveries of prior year unpaid obligations

Budget authority:

appropriation

spending authority from offsetting collections

earned

collected

change in receivables from Federal sources

change in unfilled customer orders

Without advance from Federal sources

Previously unavailable (note 1(h))

$ 13,063

3,067

201,359

58,162

94

(24)

15,357

 $ 11,068 

1,322 

96,226 

134,728 

25 

(53)

28,561 

subtotal 274,948 259,487 

Temporarily not available pursuant to public law- (15,357)

total Budgetary resources $291,078 $256,520 

status of Budgetary resources:

obligations incurred (notes 1(h) and 14)

Direct

reimbursable

$280,905

390

$243,186 

271 

subtotal

Unobligated balance

apportioned

not available

281,295

8,126

1,657

243,457 

13,063 

- 

total status of Budgetary resources $291,078 $256,520 

change in obligated Balance:

obligated balance, net 

Unpaid obligations, brought forward, october 1

less: Uncollected customer payments from 

Federal sources, brought forward, october 1

$ 56,088

(224)

 $ 44,815 

(252)

Total unpaid obligated balance, net

obligations incurred, net (notes 1(h) and 14)

less: Gross outlays

less: recoveries of prior year unpaid obligations

change in uncollected customer payments from 

Federal sources (+/-)

obligated balance, net, end of period

Unpaid obligations

Uncollected customer payments from Federal sources

55,864

281,295

(265,229)

(3,067)

(70)

69,086

(293)

44,563 

243,457 

(230,862)

(1,322)

28 

56,088 

(224)

Total, unpaid obligated balance, net, end of period

net outlays:

Gross outlays (notes 1(h) and 14)

less: offsetting collections

less: Distributed offsetting receipts

$ 68,793

$265,229

(58,162)

(14,869)

 $ 55,864 

 $230,862 

(134,728)

(55,014)

net outlays$ 192,198 $ 41,120 
86 Federal Trade Comm ission

Performance and Accountability Report

financial section

Federal trade commission

 

 

STATEMENT OF CUSTODIAL ACTIVITY

For the years ended September 30, 2009 and 2008

(Dollars shown in thousands)

Pc mc 2009 2008

revenue activity (note 17):

sources of collections

Premerger filing fees (net of refunds) $ - $42,148 $42,148 $102,916 

civil penalties and fines 10,656 2,100 12,756 13,475 

redress (note 18) 14,698 - 14,698 101,859 

other miscellaneous receipts 172 - 172 4,586 

Total cash collections 25,526 44,248 69,774 222,836 

accrual adjustments (123) - (123) (37,212)

total custodial revenue $25,403 $44,248 $69,651 $185,624 

disposition of collections (note 17):

Transferred to others:

Treasury general fund $25,526 $ 2,100 $27,626 $ 68,674 

Department of Justice - 57,072 57,072 87,559 

other miscellaneous dispositions - - - 45,705 

(increase) in amounts yet to be transferred (123) (14,924) (15,047) (16,314)

total disposition of collections $25,403 $44,248 $69,651 $185,624 

net custodial activity (note 1 (f)) $ - $ - $ - $ - 
87 Fiscal Year 

2009

f

i

Notes to the Financial Statements

nancial section

Note 1—Summary of Significant 

Accounting Policies

(a) Basis of Accounting

The Federal Trade commission (FTc) is an 

independent United states Government agency, 

established by the Federal Trade commission act of 

1914. The FTc enforces a variety of federal antitrust 

and consumer protection laws. The agency is headed 

by five commissioners, nominated by the President 

and confirmed by the senate, each serving a seven-year 

term. The President chooses one commissioner to act as 

chairman. no more than three commissioners can be 

of the same political party.

The FTc has three major bureaus: The Bureau of 

consumer Protection (BcP), which supports the 

strategic goal of protecting consumers, the Bureau of 

competition (Bc), which supports the strategic goal of 

maintaining competition, and the Bureau of economics 

(Be), which supports both bureaus and strategic goals. 

additionally, various offices provide mission support 

functions and services.

The majority of FTc staff is located in Washington 

Dc; however, the FTc’s regions cover seven geographic 

areas. The regional offices work with the BcP and Bc to 

conduct investigations and litigation; provide advice to 

state and local officials on the competitive implications 

of proposed actions; recommend cases; provide local 

outreach services to consumers and business persons; 

and coordinate activities with local, state, and regional 

authorities. The regional offices frequently sponsor 

conferences for small businesses, local authorities, and 

consumer groups.

The financial statements and notes include the 

accounts of all funds under the FTc’s control. as 

further described throughout these notes, in addition 

to appropriations received for salaries and necessary 

expenses, the FTc maintains control over funds that 

are primarily comprised of proceeds derived from court 

ordered judgments and settlements held for subsequent 

distribution to approved claimants. These funds are 

considered non-entity and are reported as such on the 

Balance sheet.

(b) Fund Accounting Structure

The FTc’s financial activities are accounted for 

using various funds (i.e., Treasury account symbols 

(Tas)). They include the following for which the FTc 

maintains financial records:

GENERAL FUND Tas 29X0100 consists of a 

salaries and expense appropriation used to fund 

agency operations and capital expenditures. offsetting 

collections received during the year are also recorded in 

the general fund. (see note 13 exchange revenues.)

DEPOSIT FUND Tas 29X6013 consists of monies 

held temporarily by the FTc as an agent for others 

(e.g. redress funds) prior to distribution through the 

consumer redress program.

SUSPENSE FUND Tas 29F3875 consists of 

premerger filing fees collected by the FTc under the 

Hart-scott-rodino antitrust improvement act of 1976 

(Hsr) that are distributed equally to the FTc as a 

funding source and to the Department of Justice (DoJ). 

(see note 1(s) revenue and other Financing sources.)

MISCELLANEOUS RECEIPT ACCOUNTS

Tas 29 1040 and Tas 29 3220 consist of civil 

penalties, redress disgorgements to the Treasury and 

other miscellaneous receipts that by law are not retained 

by the FTc. cash balances are automatically transferred 

to the general fund of the Treasury at the end of each 

fiscal year.

(c) Basis of Accounting

The accompanying financial statements present the 

financial position, net cost of operations, changes in net 

position, budgetary resources, and custodial activities of 

the FTc. as noted above, the FTc maintains a single 

fund to account for salaries and all necessary expenses. 

Further, there are no intra-entity transactions with 

any other fund (e.g. deposit fund) that would require 
88 Federal Trade Comm ission

Performance and Accountability Report

f

inancial section

eliminating entries to present consolidated statements. 

accordingly, the statements are not labeled consolidated 

nor is the statement of Budgetary resources presented 

as combined. The financial statements have been 

prepared from the accounting records of the FTc on 

an accrual basis, in conformity with generally accepted 

accounting principles (GaaP) of the United states of 

america and with the form and content of financial 

statements specified by the office of Management and 

Budget (oMB) circular a-136, Financial reporting 

requirements (as revised June 2009). GaaP for federal 

entities incorporate the standards prescribed by the 

Federal accounting standards advisory Board (FasaB).

(d) Use of Estimates

The preparation of financial statements in conformity 

with GaaP requires management to make estimates 

and assumptions that affect the reported amounts 

of assets and liabilities at the date of the financial 

statements and the reported amounts of revenues and 

expenses during the reporting period. actual results 

could differ from those estimates.

(e) Fiduciary Activities

in FY 2009, the FasaB statement of Federal Financial 

accounting standard (sFFas) 31 Fiduciary activities 

became effective. The FTc evaluated its activities and 

determined that none of them met the criteria in sFFas 

31 to be classified as fiduciary activity.

(f) Changes in Presentation

The FTc receives collections for consumer redress (i.e., 

redress) in connection with the settlement or litigation 

of both its administrative proceedings and federal 

court cases. The FTc attempts to distribute funds to 

consumers whenever possible. if consumer redress is not 

practical or the judgment does not require the assessed 

penalty to be directed to consumers, the funds are 

paid (disgorged) to the general fund of the Treasury. 

The FTc also maintains one judgment (obtained by 

the FTc in support of its strategic goal to maintain 

competition) which stipulated the divestiture of assets 

by the defendants into an interest-bearing account to 

be monitored by the agency (hereafter referred to as 

divestiture activity).

The FTc changed its method of presentation for the 

receipt, accounting, and disposition of collections 

received relative to redress and divestiture activities. 

Previously, the FTc presented all consumer redress 

and divestiture activity in the statement of custodial 

activity (sca), in addition to the amount of Hsr 

premerger filing fees which the FTc collected on 

behalf of the DoJ. Beginning with FY 2009, relative to 

redress and divestiture activities (see note 18 redress 

and Divestiture activities), the sca includes only the 

amounts transferred to the Treasury’s general fund (i.e., 

disgorged). all other collection and redress activities are 

disclosed in note 18 redress and Divestiture activities. 

The reporting of the undisbursed funds and receivable 

balances as non-entity assets on the Balance sheet, with 

an offsetting non-entity liability, remains the same. 

as the current presentation reflects a change from 

one that was acceptable to another that is a preferred 

presentation, the FY 2008 sca has not been restated. 

However, FY 2008 amounts have been reclassified to 

align with the change in line item descriptions and 

revised presentation.

(g) Budget Authority

congress passes appropriations annually that provide 

the FTc with authority to obligate funds for necessary 

expenses to carry out mandated program activities. 

These funds are available until expended, subject to 

oMB apportionment and to congressional restrictions 

on the expenditure of funds. also, the FTc places 

internal restrictions on fund expenditures to ensure 

the efficient and proper use of all funds. appropriated 

funding is derived from various revenues and financing 

sources. The statement of Budgetary resources (sBr) 

reflects the single general fund (i.e. Tas 29X0100) for 

which the FTc has budget authority.

(h) Premerger Fee Collections Reporting

During FY 2008, the FTc processed and recorded 

premerger fee collections in its salaries and expense 

(s&e) fund 29X0100. This business practice was a 

deviation from FY 2007 and years prior. Previously 

the FTc would record premerger fee collections in 

its 29F3875 suspense account fund and then transfer 
89 Fiscal Year 

2009

f

inancial section

the FTc’s half of the collections to its s&e fund and 

transfer the other half to the DoJ.

The Treasury’s Financial Management service 

issued Bulletin no. 2007-07, suspense “F” account 

Discontinuance and Waiver Policy, effective in FY 

2008, which indicated that the F3875 and F3885 

suspense accounts be discontinued unless a waiver 

was approved. The FTc did not obtain a waiver, but 

processed the premerger fee collections during the 

year through its s&e fund. However, $15.3 million of 

undisbursed premerger collections due the DoJ that 

resided in the FTc’s s&e fund at year-end gave the 

appearance of providing a budgetary resource. For FY 

2008, this $15.3 million was reported as a budgetary 

resource, but was offset (restricted) by reporting an 

equal amount as temporarily not available pursuant to 

public law, since the funds were not available for the 

FTc’s use.

in FY 2009, the $15.3 million was disbursed to the 

DoJ from the FTc’s s&e fund, thereby creating an 

outlay. This outlay is included in the sBr, along with 

an offsetting previously unavailable budgetary resource. 

The FTc has since obtained a waiver to grant use of its 

29F3875 suspense fund and will incorporate it into the 

business process that it previously used.

(i) Entity/Non-entity Assets

assets that an agency is authorized to use in its 

operations are entity assets. assets that an agency 

holds on behalf of another federal agency or a third 

party and are not available for the agency’s use are 

non-entity assets.

(j) Fund Balance with Treasury

The FTc’s Fund Balance with Treasury includes 

appropriated funds, deposit funds for subsequent 

disbursement to claimants, and premerger filing fees 

awaiting disbursement to the DoJ. Funds are carried 

forward until such time as good or services are received 

and payment is made. all cash receipts are deposited 

with the Treasury and all disbursements for payroll 

and vendor invoices are disbursed by the Department 

of the Treasury.

(k) Cash and Other Monetary Assets

The FTc’s consumer redress agents process claims and 

disburse redress proceeds to approved claimants. Upon 

approval of the redress office, amounts necessary to 

cover current disbursement schedules are held as cash 

in interest bearing accounts. These funds are considered 

non-entity assets and are reported on the Balance sheet 

along with an offsetting non-entity liability.

(l) Investments

in protecting consumers, the FTc collects proceeds 

from defendants in accordance with court ordered 

judgments and settlement agreements for consumer 

redress and holds these proceeds in the deposit fund 

(Tas 29X6013) established with the Department of 

the Treasury. The FTc also holds monies in its deposit 

fund in connection with a judgment that stipulates 

the divestiture of assets by the defendant. Under an 

agreement with the Department of the Treasury, the 

portion of such judgments and settlements that are not 

immediately needed for cash disbursements are invested 

in Treasury securities. These investments are considered 

non-entity assets and are reported on the Balance sheet 

along with an offsetting non-entity liability.

(m) Accounts Receivable

entity accounts receivable consist of amounts due 

from other federal entities and from current and 

former employees and vendors. non-entity accounts 

receivable include uncollected civil monetary penalties 

imposed as a result of the FTc’s enforcement activities 

and uncollected redress judgments. These non-entity 

accounts receivable are reported on the Balance sheet 

along with an offsetting non-entity liability. Gross 

receivables are reduced to net realizable value by an 

allowance for uncollectible accounts. (see note 6 

accounts receivable.)

(n) Accrued Liabilities and Accounts Payable

accrued liabilities and accounts payable represent a 

probable future outflow or other sacrifices of resources 

as a result of past transactions or events. liabilities 

are recognized when they are incurred, regardless 

of whether they are covered by budgetary resources. 

liabilities can not be liquidated without legislation that 
90 Federal Trade Commission

Performance and Accountability Report

financial section

Pension expenses in FYs 2009 and 2008 consisted of the following (in thousands):

2009 2008 

Total Pension expense Total Pension expense

civil service retirement system $ 3,114 $ 3,474

Federal employees retirement system 11,802 10,949

Thrift savings Plan 4,586 4,276

total $19,502 $18,699

provides the resources to do so. also, the government, 

acting in its sovereign capacity, can abrogate FTc 

liabilities (other than contracts). (see note 8 liabilities 

not covered by Budgetary resources and note 9 other 

liabilities.)

(o) Employee Health Benefits and Life Insurance

FTc employees are eligible to participate in the 

contributory Federal employees Health Benefit Program 

(FeHBP) and the Federal employees Group life 

insurance Program (FeGliP). The FTc contributes a 

percentage to each program to pay for current benefits.

(p) Employee Retirement Benefits

FTc employees participate in either the civil service 

retirement system (csrs) or the Federal employees 

retirement system (Fers). employees hired after 

December 31, 1983, are covered by Fers and social 

security, while employees hired prior to January 1, 

1984, may elect to either join Fers or remain in 

csrs. approximately 15.6 percent of FTc employees 

participate in csrs. For employees participating 

in csrs, the FTc contributes seven percent of the 

employee’s gross earnings to the csrs retirement 

and Disability Fund. For employees participating 

in Fers, the FTc contributes 11.2 percent to the 

Federal employees’ retirement Fund. employees 

participating in Fers are covered under the Federal 

insurance contributions act (Fica) for which the FTc 

contributes a matching amount to the social security 

administration. FTc contributions are recognized as 

current operating expenses. The Thrift savings Plan 

(TsP) is a defined contribution retirement savings and 

investment plan for employees covered by either csrs 

or Fers. Participating employees may contribute any 

dollar amount or percentage of basic salary to TsP, 

not to exceed an annual dollar amount of $16,500 for 

2009. csrs participating employees do not receive a 

matching contribution from the FTc. Fers employees 

receive an agency automatic one percent contribution 

of gross pay to the TsP. The FTc also matches 100 

percent of the first three percent contributed and 50 

percent of the next two percent contributed. such 

FTc contributions are recognized as current operating 

expenses. although the FTc contributes a portion 

for pension benefits and makes the necessary payroll 

withholdings, it is not responsible for managing 

contribution refunds, employee’s retirement benefits, or 

the retirement plan assets. Therefore, the FTc financial 

statements do not report csrs and Fers assets, 

accumulated plan benefits, or unfunded liabilities, 

if any, which may be applicable to employees. such 

reporting is the responsibility of the office of Personnel 

Management (oPM). However, the FTc recognizes the 

full cost of providing future pension benefits to covered 

employees at the time the employees’ services are 

rendered. oPM has provided the FTc with certain cost 

factors that estimate the true service cost of providing 

the pension benefits to covered employees. During FYs 

2009 and 2008, the cost factors used to arrive at the 

service cost for csrs covered employees were 25.8 

percent and 25.2 percent of basic pay, respectively. 

During FYs 2009 and 2008, the cost factors for Fers 

covered employees were 12.3 and 12.0 percent of basic 

pay, respectively. The pension expense recognized in the 
91 Fiscal Year 

2009

f

inancial section

financial statements equals this service cost to covered 

employees less amounts contributed by these employees. 

if the pension expense exceeds the amount contributed 

by the FTc as employer, the excess is recognized as 

an imputed financing cost. The excess total pension 

expense over the amount contributed by the agency 

must be financed by oPM and is recognized as an 

imputed financing source, non-exchange revenue.

(q) Other Post-Employment Benefits

FTc employees eligible to participate in the FeHBP 

and the FeGliP may continue to participate in these 

programs after their retirement. The oPM has provided 

the FTc with certain cost factors that estimate the true 

cost of providing the post-retirement benefit to current 

employees. The FTc recognizes a current cost for these 

and other retirement Benefits (orB) at the time the 

employee’s services are rendered. The orB expense is 

financed by oPM, and offset by the FTc through the 

recognition of an imputed financing source. During 

FYs ended 2009 and 2008, the cost factors relating 

to FeHBP were $5,756 and $5,220, respectively, per 

employee enrolled. During FYs 2009 and 2008, the cost 

factor relating to FeGliP was 0.02 percent of basic pay 

per employee enrolled.

(r) Net Position

cumulative results of operations represent the net results 

of operations since inception, the cumulative amount of 

prior period adjustments, the remaining book value of 

capitalized assets, and future funding requirements.

The portion of FTc’s budget authority that is funded by 

a direct appropriation is fully expended during the year. 

Therefore, there is no unexpended appropriation balance 

in net position at the end of the year. (see statement of 

changes to net Position.)

(s) Revenues and Other Financing Sources

The FTc’s revenues are derived from spending 

authority from offsetting collections and from direct 

appropriation. spending authority from offsetting 

collections is comprised of amounts received for services 

performed under reimbursable agreements with other 

federal agencies, collections of premerger fees under 

the authority of the Hsr act, and collection of fees 

related to the Do-not-call (Dnc) implementation 

act. revenue is also recognized for services performed 

for other agencies through reimbursable agreements. 

revenues from premerger and Dnc fees are recognized 

when collected. all of the FTc’s offsetting collections 

are exchange revenues. (see note 13 exchange 

revenues.)

in addition to exchange revenue, the FTc receives 

financing sources through direct appropriation from the 

general fund of the Treasury to support its operations. 

a financing source, appropriations used, is recognized 

to the extent these appropriated funds have been 

consumed. The FTc received a financing source in 

the form of a direct appropriation that represented 

approximately 69 percent of total revenues and 

financing sources realized in FY 2009 and 40 percent 

in FY 2008.

(t) Methodology for Assigning Cost

Total costs are allocated to each strategic goal based 

on two components: the direct costs charged to each 

strategic goal and the indirect costs attributed to each 

strategic goal, based on the percentage of direct fulltime equivalent (FTe) used by each strategic goal.

Note 2—Non-entity Assets

non-entity Fund Balance with Treasury is comprised 

of undisbursed premerger filing fees and deposits 

held for the consumer redress program. investments 

represent funds not required for current distribution 

for consumer redress. cash and other Monetary assets 

consist of amounts on deposit with FTc distribution 

agents. accounts receivable represent amounts due from 

consumer redress judgments and civil penalties.
92 Federal Trade Comm ission

Performance and Accountability Report

f

inancial section

The following summarizes non-entity assets as of september 30, 2009 and 2008 (in thousands):

2009 2008

intragovernmental

Fund balance with Treasury $ 2,731 $ 2,507

investments 94,848 117,514

Total intragovernmental 97,579 120,021

cash and other monetary assets 18,141 10,485

accounts receivable, net 55,546 87,982

total non-entity assets 171,266 218,488

total entity assets 94,208 99,431

total assets $265,474 $317,919

Note 3—Fund Balance with Treasury

Fund balance includes appropriated funds, which are 

either unobligated, or obligated as an account payable or 

undelivered order and not yet disbursed. Fund balance 

also includes non-entity funds arising from undisbursed 

Hsr filing fees due to the DoJ and collections of 

redress judgments not yet disbursed to claimants.

Fund Balance with Treasury consisted of the following as of september 30, 2009 and 2008 (in thousands):

2009 2008

Fund Balances:

appropriated funds $78,576 $84,285

suspense fund - undisbursed Hsr filing fees 433 -

Deposit funds - redress 2,298 2,507

total $81,307 $86,792

status of Fund Balance with treasury

Unobligated balance

apportioned $ 8,126 $13,063

Unavailable 1,657 -

Temporarily not available - 15,357

obligated balance not yet disbursed 68,793 55,865

non-Budgetary fund balance with Treasury

suspense fund - undisbursed Hsr filing fees 433 -

Deposit funds - redress 2,298 2,507

total $81,307 $86,792
93 Fiscal Year 

2009

f

Note 4—Cash and Other 

inancial section

Monetary Assets

in connection with the consumer redress program, 

cash amounts necessary to cover current disbursement 

schedules are held at financial institutions in interest 

bearing accounts pursuant to court orders and are 

reported as non-entity assets. a corresponding liability 

is recorded for these assets. The FTc’s consumer redress 

agents process claims and disburse redress proceeds to 

claimants upon approval of the redress office. (see note 

18 redress and Divestiture activities.)

cash and other monetary assets consisted of the following as of 

september 30, 2009 and 2008 (in thousands):

2009 2008

other monetary assets

redress contractors $18,141 $10,485

total other monetary assets $18,141 $10,485

Note 5—Investments

Funds not needed to cover immediate disbursements 

for consumer redress are invested in Government 

account series (Gas) securities under an agreement 

with the Bureau of Public Debt. Gas securities are 

non-marketable, market-based Treasury securities that 

are not traded on any securities exchange but mirror the 

prices of particular Treasury securities trading in the 

government securities market. additionally, funds from 

one judgment where divesting of assets was required 

to maintain competition have also been invested. (see 

note 18 redress and Divestiture activities.)

as of september 30, 2009, investments consisted of the following (in thousands):

 Amortized 

 Amortization (Premium) Interest 

Cost Method Discount Receivable

Investment 

Net

Other 

Adjustments

Market 

Value 

Disclosure

intragovernmental 

securities:

non-Marketable:

Market-Based $94,848 - - $94,848 - $94,848

total $94,848 n/a - - $94,848 - $94,848

as of september 30, 2009, investments consisted of the following (in thousands):

 Amortized 

 Amortization (Premium) Interest 

Cost Method Discount Receivable

Investment 

Net

Other 

Adjustments

Market 

Value 

Disclosure

intragovernmental 

securities:

non-Marketable:

Market-Based $117,514 - - $117,514 - $117,514

total $117,514 n/a - - $117,514 - $117,514
94 Federal Trade Comm ission

Performance and Accountability Report

f

inancial section

Note 6—Accounts Receivable

opening accounts receivable balances reflect the 

Federal accounting standards advisory Board 

(FasaB) standard for the recognition of losses using 

the collection criterion of “more likely than not.” This 

criterion results in receivable balances that are more 

conservatively stated than those valued by the private 

sector under generally accepted accounting principles. 

FasaB states that it is appropriate to recognize the 

nature of federal receivables, which, unlike trade 

accounts of private firms or loans made by banks, are 

not created through credit screening procedures. rather, 

these receivables arise because of the assessment of fines 

from regulatory violations. in these circumstances, 

historical experience and economic realities indicate that 

these types of claims are frequently not fully collectible.

The method used to estimate the allowance for 

uncollectible receivables consists of individual case 

analysis by the attorney case manager with respect to the 

debtor’s ability and willingness to pay, the defendant’s 

payment record, and the probable recovery amount 

including the value of the sale of assets. Based on the 

aforementioned, cases are referred to the Treasury offset 

Program for collection activities after the receivable 

becomes six months delinquent in payment.

accounts receivable consisted of the following as of september 30, 2009 and 2008 (in thousands):

Uncollectible 

Receivables Accounts 2009 Net 2008 Net

entity accounts receivable:

intragovernmental $ 141 $ - $ 

With the Public 18 -

141

18

$ 48

-

 

total entity accounts 

receivable $ 159 $ - $ 159 $ 48

non-entity accounts 

receivable:

accounts receivable

consumer redress

civil penalties

other

$365,223

1,596

-

$309,727

1,546

-

$55,496

50

-

$87,800

173

9

total non-entity 

accounts receivable $366,819 $311,273 $55,546 $87,982
95 Fiscal Year 

2009

f

Note 7—General Property and 

inancial section

Equipment, Net

FTc capitalizes property and equipment with an 

initial cost of $100 thousand or greater and a useful 

life over two years. such assets are depreciated using 

the straight-line method of depreciation with service 

lives range from five to twenty years. leasehold 

improvements that cost $100 thousand or greater are 

capitalized and amortized over the remaining life of the 

lease. additionally, internal use software development 

and acquisition costs of $100 thousand or greater are 

capitalized as software development-in-progress until the 

development stage has been completed and the software 

successfully tested. Upon completion and testing, 

software development-in-progress costs are reclassified 

as internal use software costs and amortized using the 

straight-line method over the estimated useful life of 

three to five years. Purchased commercial software that 

does not meet the capitalization criteria is expensed.

amounts reported as equipment are comprised mostly 

of computer hardware and other building equipment. 

The FTc does not own buildings, but rather, in 

partnership with General services administration 

(Gsa) leases both federally owned (by Gsa) and 

commercial space. (see note 10 leases.) The leasehold 

improvements above consist of improvements made to 

the FTc headquarters building located in Washington 

Dc (which is owned by the Gsa), and to FTc 

commercially leased space also located in 

Washington Dc.

Depreciation expense was $2,416 and $4,786 

thousand for FYs ending september 30, 2009 and 

2008, respectively, and is contained in the 

accumulated depreciation.

as of september 30, 2009, general property and equipment, net consisted of the following (in thousands):

asset service acquisition accumulated 

class life Value depreciation

net 

Book Value

equipment 5–20 yrs. $ 8,089 $ 7,026

leasehold improvements lease term 13,419 2,872

software 3–5 yrs. 10,683 6,820

$ 1,063

10,547

3,863

total

 

$32,191 $16,718 $15,473

as of september 30, 2008, general property and equipment, net consisted of the following (in thousands):

asset service acquisition accumulated 

class life Value depreciation

net 

Book Value

equipment 5–20 yrs. $ 7,491 $ 6,497

leasehold improvements lease term 11,297 2,334

software 3–5 yrs. 10,612 5,471

$ 994

8,963

5,141

total $29,400 $14,302 $15,098
96 Federal Trade Commission

Performance and Accountability Report

financial section

Note 8—Liabilities Not Covered by Budgetary Resources

intragovernmental liabilities and liabilities with the public not covered by budgetary resources 

as of september 30, 2009 and 2008 are shown below (in thousands):

2009 2008

intragovernmental:

Undisbursed premerger fees liability

civil penalty collections due to Treasury

Feca liability

other Unfunded employment related liability

$ 433

50

436

12

$ 15,357

173

361

-

Total intragovernmental liabilities not covered 

by budgetary resources

With the public:

Unfunded leave

actuarial Feca

redress collected not yet disbursed

Divestiture fund due

accrued redress receivables due to claimants

931

9,787

2,173

69,746

45,542

55,496

15,891

9,058

1,925

85,021

45,485

87,800

total liabilities not covered by budgetary resources

total liabilities covered by budgetary resources

$183,675

21,408

$245,180

22,663

total liabilities $205,083 $267,843

UNDISBURSED PREMERGER FEES LIABILITY

represents undisbursed filing fees collected under 

the Hsr act of 1976, which are due to the DoJ in a 

subsequent period.

CIVIL PENALTY COLLECTIONS DUE TO 

TREASURY represents the corresponding liability 

relative to accounts receivable due for civil monetary 

penalties, which will be transferred to the general fund 

of the Treasury upon receipt.

FEDERAL EMPLOYEE’S COMPENSATION 

ACT (FECA) LIABILITY represents the unfunded 

liability for workers compensation claims payable to the 

Department of labor (Dol) and an actuarial liability 

for future workers’ compensation claims. The actuarial 

liability is based on the liability to benefits paid ratio 

provided by Dol multiplied by the average of benefits 

paid over three years.

UNFUNDED LEAVE represents a liability for earned 

leave and is reduced when leave is taken. The balance in 

the accrued annual leave account is reviewed quarterly 

and adjusted as needed to accurately reflect the liability 

at current pay rates and leave balances. accrued 

annual leave is paid from future funding sources and, 

accordingly, is reflected as a liability not covered by 

budgetary resources. sick and other leave is expensed 

as taken.

ACTUARIAL FECA represents the present value of 

future workers compensation claims.

REDRESS COLLECTED NOT YET DISBURSED

represents a non-entity liability corresponding to 
97 Fiscal Year 

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f

amounts reported as non-entity assets (including Fund 

inancial section

Balance with Treasury, cash and other Monetary 

assets and investments for Tas 29X6013). These funds 

are held until distributed to consumers or returned to 

Treasury through disgorgement.

DIVESTITURE FUND DUE represents the 

corresponding liability offsetting the amount reported 

as non-entity assets (investments) held by the FTc 

pending divesture of assets pursuant to a court ordered 

judgment. These funds are currently invested in 

Treasury securities. (see note 5 investments.)

ACCRUED REDRESS RECEIVABLES DUE TO 

CLAIMANTS represents the contra account for 

accounts receivable due from judgments obtained as a 

result of the agency’s consumer redress litigation.

Note 9—Other Liabilities

The following summarizes other liabilities as of september 30, 2009 and 2008 (in thousands):

2009 2009 2009 

non-current current total

intragovernmental:

Feca liability $ 436 $ - $ 436

civil penalty collections due to Treasury - 50 50

accrued benefits - 1,346 1,346

Undisbursed premerger fee liability - 433 433

Total intragovernmental 436 1,829 2,265

accrued leave - 9,787 9,787

actuarial Feca 2,173 - 2,173

accrued salary - 6,824 6,824

total other liabilities $2,609 $18,440 $21,049

2008 2008 2008 

non-current current total

intragovernmental:

Feca liability $ 361 $ - $ 361

civil penalty collections due to Treasury 35 138 173

accrued benefits - 1,137 1,137

Undisbursed premerger fee liability - 15,357 15,357

Total intragovernmental 396 16,632 17,028

accrued leave - 9,058 9,058

actuarial Feca 1,925 - 1,925

accrued salary - 5,914 5,914

total other liabilities $2,321 $31,604 $33,925
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inancial section

Note 10—Leases

leases of commercial property are made through and 

managed by Gsa. The commission has leases on three 

government-owned properties and eight commercial 

properties. The FTc’s current leases expire at various 

dates through 2019. Four leases provide for tenant 

improvement allowances totaling approximately $3,811 

thousand and provide that these costs be amortized 

over the length of the leases. Under the terms of the 

leases, the FTc agrees to reimburse the landlord for 

the principal balance of the unamortized portion of the 

tenant improvement allowance in the event the agency 

vacates the space before lease expiration. The FTc 

rents approximately 582,000 square feet of space in 

both commercial and government-owned properties for 

use as offices, storage and parking. all FTc leases are 

operating leases. rent expenditures for the years ended 

september 30, 2009 and 2008, were approximately 

$19,126 and $19,143 thousand, respectively.

Future minimum lease payments due under leases of 

government-owned property as of september 30, 2009, 

are as follows (in thousands):

Fiscal year government-owned 

Property leases

2010 $6,923

2011 6,920

2012 6,857

2013 6,809

2014 6,523

Thereafter 1,105

total Future minimum lease Payments $ 35,137

Future minimum lease payments under leases of commercial 

property due as of september 30, 2009 are as follows (in thousands):

Fiscal year commercial leases

2010 $12,709

2011 12,796

2012 10,844

2013 1,359

2014 1,286

Thereafter 3,652

total Future minimum lease Payments $42,646

Note 11—Commitments and 

Contingencies

The FTc is a party in various administrative 

proceedings, legal actions, and claims brought by or 

against it. in the opinion of FTc management and 

legal counsel, the ultimate resolution of these 

proceedings, actions, and claims, will not materially 

affect the financial position or the results of operations 

of the FTc.

Note 12—Intragovernmental Costs 

and Exchange Revenues

For ‘exchange revenue with the public,’ the buyer 

of the goods or services is a non-federal entity. For 

‘intragovernmental costs’ the buyer and seller are both 

federal entities. if a federal entity purchases goods or 

services from another federal entity and sells them to the 

public, the exchange revenue would be classified as ‘with 

the public,’ but the related costs would be classified as 

‘intragovernmental.’ The purpose of this classification is 

to enable the federal government to provide consolidated 

financial statements, and not to match public and 

intragovernmental revenue with costs that are incurred 

to produce public and intragovernmental revenue.
99 Fiscal Year 

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inancial section

For the FYs ended september 30, intragovernmental and public costs and exchange revenues are as follows (in thousands):

2009 2008

Protect consumers (Pc) strategic goal:

intragovernmental gross costs $ 36,121 $ 33,140

Public costs 111,111 107,565

total Pc strategic goal costs 147,232 140,705

intragovernmental earned revenue (253) (42)

Public earned revenue (15,694) (16,160)

total Pc strategic goal earned revenue (15,947) (16,202)

total Pc strategic goal net costs 131,285 124,503

maintain competition (mc) strategic goal:

intragovernmental gross costs 26,917 24,696

Public costs 82,801 80,157

total mc strategic goal costs 109,718 104,853

intragovernmental earned revenue (161) (276)

Public earned revenue (42,148) (102,916)

total mc strategic goal earned revenue (42,309) (103,192)

total mc strategic goal net costs 67,409 1,661

net cost of operations $198,694 $126,164

Note 13—Exchange Revenues

exchange revenues are earned through the collection of 

fees under the Hsr act. This act, in part, requires the 

filing of premerger notifications with the FTc and the 

antitrust Division of the DoJ and establishes a waiting 

period before certain acquisitions may be consummated. 

Mergers with transaction valuation above $65.2 million 

require the acquiring party to pay a filing fee. The filing 

fees are based on the transaction amount and follow a 

three-tiered structure: $45, $125 and $280 thousand. 

The FTc collects all Hsr premerger fees, retains 

one-half, and remits 50 percent to the DoJ antitrust 

Division pursuant to public law. revenue is recognized 

upon collection of the appropriate fee and verification 

of proper documentation.

exchange revenues are also earned through the 

collection of fees for the national Dnc registry. This 

registry operates under section 5 of the FTc act, which 

enforces the Telemarketing sales rule. The Do-notcall implementation act, Public law no. 108-010, 

gives the FTc authority to establish fees sufficient to 

offset enforcement of the provisions related to the Dnc 

registry. Telemarketers are required to pay an annual 

subscription fee and download from the Dnc registry 

database a list of telephone numbers of consumers 

who do not wish to receive calls. Fees are based on the 
100 Federal Trade Comm ission

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inancial section

number of area codes downloaded. effective october 

1, 2008, the minimum charge decreased from $62 to 

$54 to download one area code. The maximum charge 

decreased from $17,050 to $14,850 for all area codes 

within the United states. revenue is recognized when 

collected and the telemarketer is given access to the 

requested data.

exchange revenue is also earned for services provided 

to other government agencies through reimbursable 

agreements. The FTc recovers the full cost of services, 

primarily salaries and related expenses. revenue is 

earned at the time the expenditures are incurred against 

the reimbursable order. all exchange revenues are 

deducted from the full cost of the FTc’s programs to 

arrive at net program cost.

For the FYs ended september 30, exchange revenue consisted of the 

following (in thousands):

2009 2008

Hsr premerger filing fees $42,148 $102,917

Do not call registry fees 15,694 16,159

reimbursable agreements 414 318

total $58,256 $119,394

Note 14—Apportionment 

Categories of Obligations Incurred: 

Direct vs. Reimbursable Obligations

Apportionment Categories of 

Obligations Incurred

obligations incurred reported on the statement of Budgetary 

resources in FY 2009 and FY 2008 consisted of the following 

(in thousands):

2009 2008

direct obligations:

category a $265,548 $243,186

expenditure transfer to 

 DoJ of Hsr fees 15,357

280,905

-

243,186

reimbursable obligations:

category B 390

total $281,295

271

$243,457

Note 15—Explanation of Differences 

between the Statement of Budgetary 

Resources and the Budget of the 

United States Government

There are no material differences between amounts 

reported in the FY 2008 statement of Budgetary 

resources and the FY 2008 actual amounts as 

reported in the FY 2010 Budget of the United states 

Government. The FY 2011 Budget of the United states 

is not available to compare FY 2009 actual amounts to 

the FY 2009 statement of Budgetary resources.

Note 16—Undelivered Orders at the 

End of the Period

The amount of budgetary resources obligated for 

undelivered orders as of september 30, 2009 and 2008 

is $47,677 and $33,427 thousand, respectively.

Note 17—Custodial Activities

as discussed in note 1(h), there was a change of 

presentation for the sca for FY 2009. no changes were 

made to the amounts reported for FY 2008. additional 
101 Fiscal Year 

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inancial section

disclosures and comparative analysis related to all 

redress and divestiture activities are made in note 18 

redress and Divestiture activities.

The primary custodial activities of the FTc are:

Premerger Filing Fees

all Hsr premerger filing fees are collected by the 

FTc pursuant to 15 U.s.c. 18a note, as amended, and 

are divided evenly between the FTc and the DoJ. 

During FY 2009 and FY 2008, the FTc collected 

$84,295 and $205,833 thousand, respectively, in Hsr 

premerger filing fees. The amounts designated for the 

DoJ as reported on the sca were $42,148 thousand 

for FY 2009 and $102,916 thousand for FY 2008. 

Undistributed fees to the DoJ at september 30, 2009 

and 2008 were $433 and $15,357 thousand, respectively.

Civil Penalties and Fines

civil penalties collected in connection with the 

settlement or litigation of the FTc’s administrative or 

federal court cases are collected by either the FTc or 

the DoJ as provided for by law. The FTc deposits these 

collections into the Treasury. civil penalties collected 

also include amounts collected for undecided civil 

penalty cases that are held until final disposition of the 

case. all civil penalties collected are disgorged to the 

general fund of the Treasury at the end of the year.

Redress

collections for redress reported on the sca for FY 

2009 are limited to those collections that have been 

disgorged to the Treasury. collections reported on the 

sca in FY 2008 included both collections disgorged 

to the Treasury and collections held for distribution to 

claimants. collections disgorged to the Treasury were 

$14,698 thousand for FY 2009 and $54,797 thousand 

for FY 2008.

other line items on the sca include:

Accrual Adjustments

The accrual adjustment for FY 2009 represents the 

difference between the FTc’s opening and closing 

accounts receivable balances for civil penalties. For FY 

2008, the adjustment represents the difference between 

the FTc’s opening and closing accounts receivable 

balances for civil penalties and redress combined.

(Increase) in amounts yet to be transferred

an offsetting liability is established for undisbursed 

custodial funds and funds due to be collected 

(receivable). in FY 2009, the change in the liability 

represented the corresponding change in the opening 

and closing corresponding accounts receivable balances 

for civil penalties and undisbursed premerger fund 

balances. For FY 2008, the change in the liability 

additionally represented the change in the redress 

receivables and fund balances.

Note 18—Redress and 

Divestiture Activities

Redress

The FTc obtains consumer redress in connection with 

the settlement or litigation of both its administrative 

proceedings and its federal court cases. The FTc 

attempts to distribute funds thus obtained to consumers 

whenever possible. if consumer redress is not practical, 

the funds are paid (disgorged) to the Treasury, or 

on occasion, other alternatives, such as consumer 

education, are permitted. Major components of the 

program include eligibility determination, disbursing 

redress to claimants, and accounting for the disposition 

of these funds. collections made against court-ordered 

judgments totaled $75,301 and $101,859 thousand 

during FYs 2009 and 2008, respectively. FY 2008 total 

included $590 thousand that were collected by receivers 

and agents.

Divestiture Fund

one judgment (obtained by the FTc in support of 

its strategic goal to maintain competition) stipulates 

the divestiture of assets by the defendants into an 

interest-bearing account to be monitored by the agency. 

The account balance represents principal and related 

interest held in the Treasury’s Bureau of Public Debt. a 

corresponding liability is recorded.
102 Federal Trade Commission

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redress and divestiture fund activities consisted of (in thousands):

 

2009 2008

redress

Fund Balance with treasury

Beginning balance

collections

Disbursements to claimants

Disgorgements to Treasury

Transfers, expenses, refunds

$ 2,507

75,301

(261)

(14,698)

(60,551)

$ 1,441

101,269

(8)

(54,797)

(45,398)

ending balance $ 2,298 $ 2,507

cash and other monetary assets

Beginning balance

Disbursements to claimants

Transfers, expenses, interest income

$10,485

(68,910)

76,566

$ 78,739

(29,752)

(38,502)

ending balance $ 18,141 $ 10,485

investments

Beginning balance

Transfers, expenses, interest income

72,028

(22,722)

$ -

72,029

ending balance $49,306 $ 72,029

accounts receivable, net

Beginning balance

net activity

87,800

(32,304)

$123,974

(36,174)

ending balance $55,496 $ 87,800

divestiture Fund:

investments

Beginning balance

interest, net of expenses

$45,485

57

$ 44,570

915

ending Balance $45,542 $ 45,485
103 Fiscal Year 

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inancial section

Note 19—Reconciliation of Net Cost of Operations to Budget (in thousands)

2009 2008

resources used to Finance activities:

Budgetary resources obligated

obligations incurred $281,295 $243,457

less: spending authority from offsetting collections and recoveries (76,656) (120,693)

obligations net of offsetting collections and recoveries 204,639 122,764

other resources

imputed financing from costs absorbed by others 7,650 7,411

net other resources used to finance activities 7,650 7,411

total resources used to finance activities 212,289 130,175

resources Used to Finance items not Part of the net 

cost of operations:

change in budgetary resources obligated for goods, services and 

benefits ordered but not yet provided (14,274) (1,491)

resources that finance the acquisition of assets (2,791) (8,512)

total resources used to finance items not part of the net 

cost of operations (17,065) (10,003)

total resources used to finance the net cost of operations 195,224 120,172

components of the net cost of operations 

that will not require or generate resources 

in the current Period:

components requiring or Generating 

 resources in Future Periods:

increase in annual leave liability 729 852

other 325 70

total components of net cost of operations that will 

require or generate resources in future periods 1,054 922

components not requiring or Generating resources:

Depreciation and amortization 2,416 4,786

losses on Disposition of assets - other - 284

Budgetary offsetting collections and receipts that 

do not affect net cost of operations - -

total components of net cost of operations 

that will not require or generate resources 2,416 5,070

total components of net cost of operations that will not 

require or generate resources in the current period 3,470 5,992

net cost of operations $198,694 $126,164
104 Federal Trade Commission

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105 Fiscal Year 

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Other Accompanying 

Information
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Inspector General-Identified Management 

and Performance Challenges
107 Fiscal Year 

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Inspector General-Identified Management and Performance Challenges (continued)
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Inspector General-Identified Management and Performance Challenges (continued)
109 Fiscal Year 

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Inspector General-Identified Management and Performance Challenges (continued)
111 Fiscal Year 

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Chairman’s Response To IG Challenges
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Chairman’s Response To OIG Challenges (continued)
113 Fiscal Year 

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Summary of Financial Statement Audit and Management Assurances

TaBle 1: sUMMarY oF Financial sTaTeMenT aUDiT

audit opinion Unqualified 

restatement no

Material 

Weaknesses

Beginning 

Balance new resolved consolidated ending 

Balance

0 0 0 0 0

Total Material 

Weaknesses 0 0 0 0 0

TaBle 2: sUMMarY oF ManaGeMenT assUrances

effectiveness of internal control over Financial reporting (FMFia Para. 2)

statement of 

assurance Unqualified

Material 

Weaknesses

Beginning 

Balance new resolved consolidated reassessed ending 

Balance

0 0 0 0 0 0

Total Material 

Weaknesses 0 0 0 0 0 0

effectiveness of internal control over operations (FMFia Para. 2)

statement of 

assurance Unqualified

Material 

Weaknesses

Beginning 

Balance new resolved consolidated reassessed ending 

Balance

0 0 0 0 0 0

Total Material 

Weaknesses 0 0 0 0 0 0

conformance with Financial Management system requirements (FMFia Para. 4)

statement of 

assurance systems conform to financial management system requirements

nonconformances

Beginning 

Balance new resolved consolidated reassessed ending 

Balance

0 0 0 0 0 0

Total nonconformances 0 0 0 0 0 0
114 Federal Trade Comm ission

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Improper Payments Information Act 

The improper Payments information act (Public law no. 107-300) defined requirements to reduce improper and 

erroneous payments made by the federal government. The oMB also has established specific reporting requirements 

for agencies with programs that have a significant risk of erroneous payments and for reporting on the results of 

recovery auditing activities. a significant erroneous payment as defined by oMB guidance is an annual erroneous 

program payment that exceeds both 2.5 percent of the program payments and $10 million. The agency reviews its 

controls and systems under the FMFia to ensure that the agency can rely on them. in this review, the agency has 

not identified any programs where significant erroneous payments have occurred within the FTc. The agency will 

continue to review its programs annually to determine if any significant erroneous payments exist. 
115 Fiscal Year 

2009

Appendices
116 Federal Trade Commission

Performance and Accountability Report

appendices

Appendix A: Acronyms

BC Bureau of competition 

BCP Bureau of consumer Protection 

BE Bureau of economics

BI Business intelligence

CDC centers for Disease control

CFO chief Financial officer

CFS core Financial system

CON certificate of need 

COPPA children’s online Privacy Protection act 

CSN consumer sentinel network 

CSRS civil service retirement system 

DNC Do not call 

DOJ Department of Justice 

DOL Department of labor 

DRM Digital rights Management

EFT electronic Funds Transfer

FASAB Federal accounting standards advisory Board 

FDA Food and Drug administration

FECA Federal employee’s compensation act

FEGLIP Federal employees Group life insurance Program 

FEHBP Federal employees Health Benefit Program 

FERS Federal employees retirement system 

FICA Federal insurance contributions act 

FISMA Federal information security Management act 

FMFIA Federal Managers’ Financial integrity act 

FTC Federal Trade commission 

FTE Full-Time equivalent 

FY Fiscal Year 

GAAP Generally accepted accounting Principles 

GAO Government accountability office 

GAS Government account series 

GSA General services administration 

HRMO Human resources Management office

HSR Act Hart-scott-rodino act 

ICN international competition network

IG inspector General 
117 Fiscal Year 

2009

a

pp

endices

Appendix A: Acronyms (continued)

ITMO information and Technology Management office 

MC Maintain competition 

MD&A Management’s Discussion and analysis 

N/A not applicable 

not available

MLS Multiple listing service 

OIG office of inspector General

OMB office of Management and Budget 

OPM office of Personnel Management 

ORB other retirement Benefits 

PAR Performance and accountability report 

PC Protect consumer

PII Personally identifiable information 

PSC Privacy steering committee 

SAS statement on auditing standard 

SAT senior assessment Team 

SCA statement of custodial activity

SFFAS statement of Federal Financial accounting standard

TAS Treasury account symbol 

TSP Thrift savings Plan 

TTY Text Telephone 

Telephone Typewriter

U.S. United states 

U.S. SAFE Undertaking spam, spyware, and Fraud enforcement 

WEB Act With enforcers Beyond Borders act

USDA United states Department of agriculture
118 Federal Trade Comm ission

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pp

endices

Appendix B: 

Contact Information and Acknowledgements 

Federal Trade Commission 600 Pennsylvania avenue, nW 

 Washington, Dc 20580

General information number 202-326-2222 

internet Home Page www.ftc.gov 

FTc spanish Home Page www.ftc.gov/espanol 

strategic Plan internet site www.ftc.gov/strategicplan 

FTc Press releases www.ftc.gov/opa/pressold.shtm 

Performance and Accountability Report (PAR) Specific 

The FTc welcomes comments or suggestions for improvement of its Par. 

Please contact the agency to provide feedback or to request additional copies. 

Par internet site www.ftc.gov/par 

Par contact Darlene cossette 

Par Telephone 202-326-3255 

Par e-mail address gpra@ftc.gov 

Par Fax number 202-326-2329 

Par Mailing address Federal Trade commission 

 atten Par, M/D H-774 

 600 Pennsylvania avenue, nW 

 Washington, Dc 20580

Regions 

east central (cleveland, oH) 216-263-3455 

Midwest (chicago, il) 312-960-5634 

northeast (new York, nY) 212-607-2829 

northwest (seattle, Wa) 206-220-6350 

southeast (atlanta, Ga) 404-656-1390 

southwest (Dallas, TX) 214-979-9350 

Western (san Francisco, ca) 415-848-5100 

Western (los angeles, ca) 310-824-4343 

Consumer Response Center 

General complaints 877-FTc-HelP (877-382-4357) 

identity Theft complaints 877-iD-THeFT (877-438-4338) 

online General complaints www.ftc.gov/complaint 

identity Theft education 

 and complaints www.ftc.gov/idtheft 

national Do not call registry www.donotcall.gov 
118 Federal Trade Commission

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appendices

Appendix B: 

Contact Information and Acknowledgements 

Federal Trade Commission 600 Pennsylvania Avenue, NW 

 Washington, DC 20580

General Information Number 202-326-2222 

Internet Home Page www.ftc.gov 

FTC Spanish Home Page www.ftc.gov/espanol 

Strategic Plan Internet Site www.ftc.gov/strategicplan 

FTC Press Releases www.ftc.gov/opa/pressold.shtm 

Performance and Accountability Report (PAR) Specific 

The FTC welcomes comments or suggestions for improvement of its PAR . 

Please contact the agency to provide feedback or to request additional copies. 

PAR Internet Site www.ftc.gov/par 

PAR Contact Darlene Cossette 

PAR Telephone 202-326-3255 

PAR E-mail Address gpra@ftc.gov 

PAR Fax Number 202-326-2329 

PAR Mailing Address Federal Trade Commission 

 Atten PAR , M/D H-774 

600 Pennsylvania Avenue, NW 

Washington, DC 20580

Regions 

East Central (Cleveland, OH) 216-263-3455 

Midwest (Chicago, IL ) 312-960-5634 

Northeast (New York, NY) 212-607-2829 

Northwest (Seattle, WA) 206-220-6350 

Southeast (Atlanta, GA) 404-656-1390 

Southwest (Dallas, TX) 214-979-9350 

Western (San Francisco, CA) 415-848-5100 

Western (Los Angeles, CA) 310-824-4343 

Consumer Response Center 

General Complaints 877-FTC-HEL P (877-382-4357) 

Identity Theft Complaints 877-ID -THEFT (877-438-4338) 

Online General Complaints www.ftc.gov/complaint 

Identity Theft Education 

 and Complaints www.ftc.gov/idtheft 

National Do Not Call Registry www.donotcall.gov 
Federal Trade Commission

For the Consumer 

877-FTC-helP 

www.ftc.gov