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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

ABOUT THIS REPORT

The Federal Trade Commission’s (FTC) Fiscal Year (FY) 2013 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 the FTC’s website (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

•	 Government Performance and Modernization Act of 2010

The performance and financial information contained in this report is summarized in a two-page “snapshot” 

available in February 2014 at www.ftc.gov/par.

CERTIFICATE OF EXCELLENCE AND SPECIAL AWARD 

 CERTIFICATE OF 

 EXCELLENCE IN 

ACCOUNTABILITY

 REPORTING®

Presented to the

In recognition of your outstanding efforts in

preparing the agency’s Performance and

Accountability Report for the fiscal year 

ended September 30, 2012.

A Certificate of Excellence in Accountability Reporting is presented 

by AGA to federal government agencies whose Performance and 

Accountability Reports achieve the highest standards demonstrating 

accountability and communicating results.

Federal Trade 

Commission

Relmond P. Van Daniker, DBA, CPA 

Executive Director, AGA

Robert F. Dacey, CGFM, CPA 

Chair, Certificate of Excellence 

in Accountability Reporting Board

CERTIFICATE OF

EXCELLENCE IN

ACCOUNTABILITY

REPORTING®

SPECIAL RECOGNITION AWARD

Presented to the

In recognition for Providing the

Best Agency Head Message

in your FY12 Performance and Accountability Report

Federal Trade 

Commission

Relmond P. Van Daniker, DBA, CPA 

Executive Director, AGA

Robert F. Dacey, CGFM, CPA 

Chair, Certificate of Excellence 

in Accountability Reporting Board

The FTC received the Association of Government Accountants’ Certificate of Excellence in Accountability Reporting for 

its FY 2012 PAR as well as a Special Recognition award for Best Agency Head Message.
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

HOW THIS REPORT IS ORGANIZED

This report includes four major sections, plus supplemental information.

1. MANAGEMENT’S DISCUSSION AND ANALYSIS SECTION

The Management’s Discussion and Analysis Section provides an overview of the FTC’s 

mission and organization, an overview of key performance measures and efficiency measures, 

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 with accompanying notes. 

4. OTHER ACCOMPANYING INFORMATION SECTION

The Other Accompanying Information Section provides management and performance 

challenges identified by the Inspector General along with the Chairwoman’s response and a 

summary of financial statement audit and management assurances. 

5. APPENDICES

Appendix A provides the data quality information for FTC’s performance measures; Appendix 

B lists the acronyms used throughout this report; Appendix C lists useful links for references; 

Appendix D provides contact information and acknowledgements.

MANAGEMENT’S DISCUSSION 

AND ANALYSIS

THIS PAGE INTENTIONALLY LEFT BLANK

APPENDICES

FINANCIAL

SECTION

OTHER ACCOMPANYING 

INFORMATION

THIS PAGE INTENTIONALLY LEFT BLANK

PERFORMANCE

SECTION
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

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. 

Examples include the Federal Trade Commission 

Act, Telemarketing Sales Rule, Identity Theft Act,

Fair Credit Reporting Act, and Clayton Act. In total, 

the Commission has enforcement or administrative 

responsibilities under more than 70 laws (see 

www.ftc.gov/ogc/stats.shtm for a listing).

PROFILE

•	 The agency is headquartered in Washington,

DC, and operates with seven regions across the 

United States. 

•	 The agency had 1,165 full-time equivalent

employees at the end of FY 2013.

•	 Total new budget authority for FY 2013 was

$296 million.

THE FTC’S INCEPTION AND 

AUTHORITY

The Bureau of Corporations, created in 1903, served as 

the FTC’s predecessor agency. It was the Supreme Court’s 

1911 decision in the Standard Oil case (Standard Oil Co. v. 

U.S., 221 U.S. 1 (1911)) that prompted the transformation 

from the Bureau of Corporations to the FTC. The decision 

resulted in the FTC Act of 1914, where Congress created 

an administrative agency charged with preventing “unfair 

methods of competition,” giving definition to that general 

prohibition, utilizing a number of quasi-judicial powers 

to enforce that prohibition, and enforcing the Clayton Act. The FTC Act was later amended to prohibit unfair 

or deceptive acts or practices and the FTC currently maintains enforcement and administrative responsibilities 

under 70 laws. For a description of and further information regarding each law, visit: www.ftc.gov/ogc/stats.shtm.
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MESSAGE FROM THE 

CHAIRWOMAN Edith Ramirez

Chairwoman

The Federal Trade Commission has a unique 

dual mission to protect consumers and maintain 

competition in broad sectors of our economy. In 

FY 2013, the FTC continued to exemplify good 

government, effective law enforcement, and 

outstanding outreach to consumers, businesses, 

and our law enforcement partners around the 

world. This Performance and Accountability 

Report illustrates how we managed our resources, 

highlights our major accomplishments, and 

outlines our plans to address the challenges ahead.

FY 2013 PERFORMANCE 

HIGHLIGHTS

CONSUMER PROTECTION

The FTC continues to give priority to protecting 

consumer privacy and improving data security, 

stopping harmful practices that take advantage 

of new technology, and protecting underserved 

Americans from fraud including in the financial 

services marketplace.

In February 2013, the FTC charged mobile 

device manufacturer HTC America failed to 

take reasonable steps to secure the software it 

developed, introducing security flaws that placed 

sensitive information about millions of consumers 

at risk. HTC America agreed to a settlement 

that requires the company to develop and release 

software patches to fix vulnerabilities found in 

millions of its devices, establish a comprehensive 

security program, and undergo independent 

security assessments every other year for the next 

20 years.

The FTC filed its first case against mobile 

cramming case against Wise Media in April 

2013. The company signed consumers up for 

so-called “premium services” that sent text 

messages with horoscopes and other information, 

and then placed recurring charges of $9.99 

per month on mobile phone bills, all allegedly 

without consumers’ knowledge or permission. 

In November 2013, Wise Media agreed to a 

settlement that permanently bans it from placing 

any charges on consumers’ telephone bills or 

assisting anyone else in doing so.

This year also marked the 10th anniversary of 

the FTC’s National Do Not Call Registry, which 

allows consumers to opt-out of receiving certain 

telemarketing calls. The Registry currently 

includes over 223 million telephone numbers 

and remains one of the government’s most 

popular programs. The agency escalated its 

campaign against illegal robocalls by leading 

joint federal-state law enforcement efforts against 

operations allegedly responsible for millions of 

robocalls pitching phony credit card interest rate 

reductions. In addition, the FTC challenged 

the public to create an innovative technological 

solution to block illegal robocalls. Out of the 

nearly 800 eligible submissions to the FTC’s 
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Robocall Challenge, two winners tied for the 

$50,000 prize and they are working to bring their

ideas to market.

The FTC also continued its law enforcement 

efforts to stop fraudulent financial services. In 

June 2013, the FTC brought an action against 

Mortgage Investors Corporation, one of the 

nation’s leading refinancers of veterans’ home 

loans. The company will pay a record $7.5 million

civil penalty to resolve allegations that it violated 

the agency’s Telemarketing Sales Rule by calling 

more than 5.4 million U.S. service members and 

veterans whose phone numbers were on the Do 

Not Call Registry and misrepresenting the cost 

of and savings from refinancing mortgages. This 

case also represents the first action brought by the 

FTC to enforce the Mortgage Acts and Practices - 

Advertising Rule, which allows the FTC to collect 

civil penalties for deceptive mortgage ads. In July 

2013, the FTC also reached a settlement with the 

world’s largest debt collection operation, Expert 

Global Solutions and its subsidiaries, who agreed 

to stop harassing consumers with allegedly illegal 

debt collection calls and to pay a $3.2 million civil 

penalty – the largest ever obtained by the FTC 

against a third-party debt collector.

PROMOTING COMPETITION

One of the agency’s top priorities is promoting 

competition in the health care sector of the 

economy. This year the FTC had two landmark 

victories at the U.S. Supreme Court. In June 2013, 

the FTC achieved a significant victory when the 

Supreme Court ruled in FTC v. Actavis that payfor-delay settlements can violate the antitrust 

laws and should be subject to antitrust review. 

In so doing, the Court overturned the so-called 

“scope of the patent” test, which some courts had 

adopted, and which had virtually immunized 

pay-for-delay settlements from antitrust review. 

Because of the Court’s decision, the FTC is in 

a much stronger position to protect consumers 

from anticompetitive drug-patent settlements 

that result in higher drug costs. Additionally, in 

February 2013, the Supreme Court unanimously 

ruled in favor of the FTC in FTC v. Phoebe Putney 

Health System, reviving the FTC’s administrative 

challenge to a hospital merger resulting in a 

monopoly for general acute-care inpatient 

services in the Albany, Georgia area. Addressing 

the respondents’ claim of state action immunity, 

the Court held that the Georgia legislature did not 

articulate a clear policy that hospital authorities 

could eliminate competition through a hospital 

merger merely by conferring general corporate 

powers on the local hospital authority. The ruling 

has broad implications for antitrust enforcement 

because it clarifies and tightens the test for 

determining when state action immunity applies 

to anticompetitive actions by non-sovereign state 

actors, such as the Georgia Hospital Authority of 

Albany-Dougherty County.

OUTREACH AND PARTNERSHIPS

Consumers, industry, and our law enforcement 

partners keep us informed about real-world 

trends and challenges in the marketplace. 

Consumers can contact us online or via tollfree phone numbers. Our public outreach also 

includes online resources, such as www.ftc.gov, 

much of which is also available in Spanish. We 

also provide updates on Facebook and Twitter, 

and host educational videos on the FTC’s 

YouTube channel. The FTC’s online Business 

Center offers extensive guidance to businesses.

FINANCIAL MANAGEMENT

Being diligent and responsible stewards of the 

public resources that the American taxpayers and 

the Congress provide to us is one of our most 

important jobs. For the FY 2013 independent 

financial audit, we received our 17th consecutive 

unqualified opinion, the highest audit opinion 

available. The independent auditors did not 

identify any material weaknesses, significant 
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

deficiencies, or instances of non-compliance with 

laws and regulations. I am pleased to report that 

management’s assessment of risks and review of 

controls also disclosed no material weaknesses 

(see Statement of Assurance, p. 27) and that the 

financial and performance data presented here is 

reliable and complete.

FUTURE CHALLENGES

In pursuing our strategic goals and objectives, 

many of the FTC’s challenges are defined by 

the conditions of the marketplace, and thus are 

ever changing. We work to stay informed about 

new technologies, which can bring tremendous 

benefits to consumers, but also pose challenges on 

both the competition and consumer protection 

fronts. For a more detailed description of our 

mission challenges that have been identified by 

senior management, see p. 21.

Additionally, the Reports Consolidation Act of 2000 

requires the Inspector General (IG) to determine 

key management and performance challenges facing 

the agency, and to assess our progress in addressing 

them. The IG noted that the agency faces challenges 

this coming year in consolidating two Washington, 

D.C. satellite offices into one space at the Constitution 

Center building; securing the agency’s information 

systems and networks from destruction, data loss, or 

compromise; and reducing the vulnerability of leaks 

of nonpublic information during FTC investigations. 

Agency management agrees that these are critical challenges, and with the IG’s assessment of our progress in 

addressing the challenges, as discussed in the Other 

Accompanying Information Section of this report (see 

p. 138).

All of us at the FTC look forward to continuing 

our work to protect American consumers and 

promote competition along with our partners and 

colleagues in Congress, industry, and domestic 

and international law enforcement.

Edith Ramirez

December 16, 2013
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

TABLE OF CONTENTS

INTRODUCTION

About This Report .........................................................................................................................................................................I

How This Report Is Organized ..................................................................................................................................................II

The FTC At-A-Glance................................................................................................................................................................III

Message from the Chairwoman................................................................................................................................................IV

MANAGEMENT’S DISCUSSION AND ANALYSIS ............................................................................................................1

Mission and Organization ...........................................................................................................................................................2

The FTC: Our Purpose and History............................................................................................................................2

Our Organization...........................................................................................................................................................3

Our People.......................................................................................................................................................................5

Performance Overview ................................................................................................................................................................6

Strategic and Performance Planning Framework......................................................................................................6

Performance Measurement Process ............................................................................................................................7

Key Performance Measures and Efficiency Measures Overview............................................................................8

Agency Mission Challenges.......................................................................................................................................................21

Management Assurances...........................................................................................................................................................26

Implementation of the Federal Managers’ Financial Integrity Act (FMFIA) at the FTC..................................26

Chairman’s FMFIA Statement of Assurance ............................................................................................................27

Financial Highlights ...................................................................................................................................................................29

PERFORMANCE SECTION................................................................................................................................................ 35

Introduction to Performance ....................................................................................................................................................36

Relationship of Outputs to Outcomes.......................................................................................................................36

Verification and Validation of Performance Data ...................................................................................................37

Strategic Human Capital Management.....................................................................................................................37

Performance Measure Summary Tables....................................................................................................................38
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

Strategic Goal # 1: Protect Consumers....................................................................................................................................48

Strategic Goal #2: Maintain Competition ...............................................................................................................................69

Strategic Goal #3: Advance Performance ................................................................................................................................95

FINANCIAL SECTION....................................................................................................................................................... 105

Message from the Chief Financial Officer.............................................................................................................................106

Inspector General’s Transmittal Letter for Audit Report....................................................................................................107

Independent Auditor’s Report.................................................................................................................................................109

Principal Financial Statements................................................................................................................................................113

Notes to the Financial Statements ..........................................................................................................................................119

OTHER ACCOMPANYING INFORMATION................................................................................................................... 137

Inspector General-Identified Management and Performance Challenges.......................................................................138

Chairman’s Response to IG Challenges.................................................................................................................................145

Summary of Financial Statement Audit and Management Assurances............................................................................146

Improper Payments Elimination and Recovery Act............................................................................................................147

APPENDICES..................................................................................................................................................................... 149

Appendix A: Data Quality Information.................................................................................................................................150

Appendix B: Acronyms............................................................................................................................................................164

Appendix C: Other Useful Links............................................................................................................................................166

Appendix D: Contact Information and Acknowledgements .............................................................................................168
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 (U.S.) 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.

THE 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.

THE 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 this 

without unduly burdening legitimate business activity.

THE FTC: OUR PURPOSE AND 

HISTORY

Consumers and businesses are likely to be more 

familiar with the work of the FTC than they think. In 

the consumer protection area, the product warranties, 

care labels in clothes, and labels showing the energy 

costs of home appliances provide information that is 

required by the FTC. Likewise, businesses must be 

familiar with the laws requiring truthful advertising 

and protecting consumers’ personally identifiable and 

sensitive health information. These laws are enforced 

by the FTC.

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 enforced 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 or deceptive 

acts or practices in or affecting commerce.” Since 

then, the FTC also has been directed to enforce 

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.
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MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

The FTC Commission as of September 30, 2013: (left to right) Joshua D. Wright, Commissioner; Julie Brill, Commissioner; Edith 

Ramirez, Chairwoman; Maureen Ohlhausen, Commissioner.

OUR ORGANIZATION

The FTC is an independent agency that reports to 

the President and to 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 plain-language 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. No more than three commissioners may be 

from the same political party. The President chooses 

one commissioner to act as Chairman. The post is 

currently held by Chairwoman Edith Ramirez, a 

commissioner since 2010, who was confirmed as 

Chairwoman by the U.S. Senate on March 4, 2013. At 

the end of the fiscal year, the commissioners were Julie 

Brill, Maureen K. Ohlhausen, and Joshua D. Wright. 

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

the Bureau of Consumer Protection, the Bureau of 

Competition, and the Bureau of Economics. Their 

work is aided by the Office of General Counsel, the 

Office of International Affairs, the Office of Policy 

Planning, the Office of Public Affairs, the Office of 

Congressional Relations, the Office of the Secretary, 

the Office of the Executive Director, the Office of 

Administrative Law Judges, the Office of Equal 

Employment Opportunity, the Office of Inspector 

General, and seven regional offices. 
4 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION ORGANIZATIONAL CHART

Regions

Office of the

General Counsel

Jonathan E.

Nuechterlein

Bureau of

Consumer Protection

Jessica L. Rich

Bureau of

Competition

Deborah L. Feinstein

Bureau of

Economics**

Pauline M. Ippolito

(Acting)

Commissioner

Maureen Ohlhausen

Commissioner

(Vacant)

Commissioner

Joshua D. Wright

Commissioner

Julie Brill

Chairwoman

Edith Ramirez

Chief of Staff

Heather Hippsley

Office of

Congressional Relations

Jeanne Bumpus

Office of

Policy Planning

Andrew I. Gavil

Office of

International Affairs

Randolph W. Tritell

Office of Public Affairs

Peter P. Kaplan (Acting)

Office of the Secretary

Donald S. Clark

Office of

Administrative Law Judges*

D. Michael Chappell

Office of

Inspector General*

Scott E. Wilson

Office of Equal

Employment Opportunity

Kevin D. Williams

Office of the

Executive Director

David B. Robbins

* An independent organization within the FTC

**The current Director is Martin Gaynor, effective October 1, 2013.
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

The agency is headquartered in Washington, DC, and operates with seven regions across the U.S. 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 1,165 civil service employees dedicated

to addressing the major concerns of American consumers. The chart below shows workforce composition by 

category.

FTC’S WORKFORCE COMPOSITION

Senior Management; 39

Economists; 80

Paralegals; 70

Other*; 360

Attorneys; 616

* “Other” includes support staff, program management, investigators, and information technology-related occupations.
6 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

PERFORMANCE OVERVIEW

This section explains the FTC’s strategic and 

performance planning framework and summarizes the 

key performance measures and efficiency 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 

under Verification and Validation of Performance 

Data, and in Appendix A: Data Quality Information.

STRATEGIC AND PERFORMANCE 

PLANNING FRAMEWORK

The FY 2013 performance planning framework 

originates from the FTC’s Strategic Plan for Fiscal 

Years 2009 to 2014, available at www.FTC.gov/opp/

gpra/spfy09fy14.pdf and is supported by the FTC’s 

Performance Plan, available at www.ftc.gov/sites/

default/files/documents/reports_annual/performanceplan/2013_performance_plan.pdf.

In FY 2012, the FTC released an addendum to the 

strategic plan that included several target increases and 

a minor measure change. The changes have been noted 

in this report next to each measure’s performance 

discussion, as applicable. The addendum is available 

at www.ftc.gov/sites/default/files/documents/reports_

annual/strategic-plan/spfy09fy14add.pdf.

The FTC began operating under this strategic plan 

in FY 2010. The FTC’s work is structured around 

three strategic goals and 13 objectives. Performance 

measures are used to gauge the FTC’s success for each 

objective.

In FY 2014, the agency will implement an updated 

strategic plan for fiscal years 2014 to 2018, which will be 

available at www.ftc.gov/opp/gpra/index.shtm.

The table below describes each element in the FTC’s 

performance framework.

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.
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MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

STRATEGIC GOALS

(Numbers shown in millions) OBJECTIVES

PROTECT CONSUMERS

Prevent fraud, deception, and unfair 

business practices in the marketplace.

Net Costs: $151

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 protection through research, reports, rulemaking, and 

advocacy.

Protect American consumers in the global marketplace by providing 

sound policy and technical input to foreign governments and international 

organizations to promote sound consumer policy.

MAINTAIN COMPETITION

Prevent anticompetitive mergers 

and other anticompetitive business 

practices in the marketplace.

Net Costs: $41

Take action against anticompetitive mergers and practices that may cause 

significant consumer injury.

Prevent consumer injury through education.

Enhance consumer benefit through research, reports, and advocacy.

Protect American consumers in the global marketplace by providing sound 

policy recommendations and technical advice to foreign governments and 

international organizations to promote sound competition policy.

ADVANCE PERFORMANCE

Advance the FTC’s performance 

through organizational, individual, and 

management excellence.

Goal 3’s costs are distributed to Goal 1 and 

Goal 2 predominately by Goal 1’s and Goal 

2’s FTE usage, except for those non-pay costs 

that are clearly attributable to a specific goal.

Provide effective human resources management.

Provide effective infrastructure and security management.

Provide effective information resources management.

Provide effective financial and acquisition management.

Note: Net Costs represent the annual cost of agency operations. The gross cost less any offsetting revenue is used to determine the net cost.

PERFORMANCE MEASUREMENT 

PROCESS

Bureau and Office representatives serve as the 

Performance Measure Reporting Officials (PMROs), 

who act as data stewards for each of the agency’s 

publicly-reported performance measures. The PMROs 

report to the Deputy Performance Improvement 

Officer (PIO) on a monthly, quarterly, or annual basis 

via an internal data reporting tool. The Financial 

Management Office also leads quarterly performance 

measure reviews that coincide with the budget 

execution reviews. The CFO/PIO, the Executive 

Director/Chief Operating Officer, and the Chief of 

Staff/Chairwoman are briefed on the results and any 

significant variances in planned versus actual results. 

The PIO and Deputy PIO then coordinate with the 

PMROs on any adjustments to strategies and tactics 

based on the performance results.
8 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

KEY PERFORMANCE MEASURES 

AND EFFICIENCY MEASURES 

OVERVIEW

The FTC has established performance measures for 

assessing program performance against strategic 

goals and objectives. Of the 40 measures, 16 are

considered “key” measures because they best indicate 

whether agency activities are achieving the desired 

outcome associated with the related objective, and 

are indicated with a key graphic throughout this 

report. Additionally, four performance measures 

are considered efficiency measures because either 

they are ratios of outcomes to inputs or they capture 

administrative timeliness. For each measure, the FTC 

has established a performance target.

The following table summarizes actual performance 

during FY 2013 against established targets for all of the 

FTC’s key performance and efficiency measures and 

provides a synopsis of related highlights. The table also 

includes actual results from the past three fiscal years. 

The FTC met or exceeded all of the 16 key measures

and 4 of the 4 efficiency measures.

LEGEND FOR UPCOMING TABLES

4 Signifies that the target is met or exceeded

6 Signifies that the target is not met

STRATEGIC GOAL 1: PROTECT CONSUMERS

Objective 1.1: Identify fraud, deception, and unfair practices that cause the greatest 

consumer injury.

Key Measure 1.1.2 The percentage of the FTC’s consumer protection law enforcement actions that target 

the subject of consumer complaints to the FTC. (Output Measure)

2013

*Target 70.0% of actions

Performance Highlights

In FY 2013, the FTC filed its first case against mobile 

cramming – the placement of unauthorized charges on 

mobile phone bills. The FTC took legal action to shut down 

Wise Media, an operation that allegedly signed consumers 

up for so-called “premium services” that sent text messages 

with horoscopes and other information, and then placed 

repeating charges of $9.99 per month on mobile phone bills, 

all without consumers’ knowledge or permission.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

Actual 90.9% 

4

2012 Actual 90.6% 

4

2011 Actual 80.4% 

4
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MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Objective 1.2: Stop fraud, deception, unfairness, and other unlawful practices through law 

enforcement.

Key Measure 1.2.1 The percentage of all cases filed by the FTC that were successfully resolved through 

litigation, a settlement, or issuance of a default judgment. (Outcome Measure)

**2013

*Target 80.0-90.0% 

of cases

Performance Highlights

Mortgage Investors Corporation, one of the nation’s leading 

refinancers of veterans’ home loans, agreed to pay a $7.5 

million civil penalty to resolve allegations that it called more 

than 5.4 million U.S. service members and veterans whose 

phone numbers were on the Do Not Call Registry and 

misrepresented the cost of and savings from refinancing 

mortgages. The settlement represents the largest fine the 

FTC has ever collected for allegedly violating Do Not Call 

provisions of the agency’s Telemarketing Sales Rule (TSR). 

This case also represents the first action brought by the FTC 

to enforce the Mortgage Acts and Practices - Advertising 

Rule (MAP Rule), which allows the FTC to collect civil 

penalties for deceptive mortgage ads.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 98.6% 

4

2012 Actual 100.0% 

4

2011 Actual 100.0% 

4

Efficiency Measure 1.2.3 The percentage of redress cases in which the FTC distributes redress dollars designated 

for distribution to consumers within six months.

**2013

Target 90.0% of cases

Performance Highlights

The agency returns funds to victims of deceptive practices 

following the successful prosecution of defendants that 

result in judgments or settlements. For example, the FTC 

mailed 50,395 refund checks worth more than $1.1 million 

to consumers who were allegedly victimized by Health 

Care One and three affiliated companies, a telemarketing 

operation charged with tricking consumers into buying 

worthless medical discount plans. Pursuant to settlement 

agreements in the case, the defendants were required 

to surrender their assets so money could be returned to 

consumers. The orders also banned the defendants from 

selling healthcare-related goods and services in the future, 

among other things.

** This measure will no longer be reported after FY 2013.

Actual 94.7% 

4

2012 Actual 95.0% 

4

2011 Actual 100.0% 

4
10 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

Objective 1.3: Prevent consumer injury through education.

Key Measure 1.3.2 Customer satisfaction rate with an FTC consumer education website or microsite. 

(Outcome Measure)

2013

Target 73.0%

Performance Highlights

The FTC used the American Customer Satisfaction Index 

(ACSI) to measure how satisfied visitors to OnGuardOnline.

gov are. Over 100 federal agencies use this survey to 

measure customer satisfaction. In FY 2013, OnGuardOnline.

gov maintained an overall customer satisfaction score of 

80%, well above the benchmark score for government 

websites (73%). The survey also allows the FTC to measure 

key website elements such as navigation, site information, 

look and feel, site performance and functionality. The 

OnGuardOnline.gov score for each of these elements was 

above the national benchmark for satisfaction. In addition, 

71% of respondents said the site helped them do what they 

wanted and 60% said they learned something on the site 

that would change their online behavior in the future, a 

strong indication that the site is an effective and helpful tool 

for consumers.

Actual 80.0% 

4

2012 Actual 81.0% 

4

2011 Actual 81.0% 

4

Objective 1.4: Enhance consumer protection through research, reports, rulemaking, and 

advocacy.

Key/Efficiency Measure 1.4.4 The percentage of proposed Administrative Procedure Act (APA) rulemakings, 

conducted solely by the FTC, completed within nine months of receipt of final comments in the Final Notice of 

Proposed Rulemaking.

**2013

Target 75.0% of 

rulemakings

Performance Highlights

There is no data to consider under this measure, as the FTC 

had no APA rulemakings to consider in FY 2013.

** This measure will no longer be reported after FY 2013.

Actual N/A

2012 Actual N/A

2011 Actual 83.3% 

4
11

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Objective 1.5: Protect American consumers in the global marketplace by providing sound 

policy and technical input to foreign governments and international organizations to 

promote sound consumer policy.

Key Measure 1.5.1 Policy advice provided to foreign consumer protection and privacy agencies, directly 

and through international organizations, through substantive consultations, written submissions, or comments. 

(Output Measure)

**2013 *Target 60 policy inputs

Performance Highlights

In FY 2013, the FTC provided policy advice in 61 instances, 

through consultations, presentations, and written 

comments. New and emerging Internet policy and 

consumer privacy issues are being considered both by 

foreign agencies and by a growing range of international 

organizations. This has sustained a strong demand for the 

FTC’s policy advice and technical input on consumer policy 

and related issues.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 61 

4

2012 Actual 65 

4

2011 Actual 52 

4
12 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIC GOAL 2: MAINTAIN COMPETITION

Objective 2.1: Take action against anticompetitive mergers and practices that may cause 

significant consumer injury.

Key Measure 2.1.1 Actions to maintain competition, including litigated victories, consent orders, 

abandoned transaction remedies, restructured transaction remedies, or fix-it-first transaction remedies in a 

significant percentage of substantial merger and nonmerger investigations. (Outcome Measure)

2013

Target

40.0-60.0% of 

substantial 

investigations

Performance Highlights

The FTC obtained a positive result in 27 of the 64 significant 

merger and nonmerger (anticompetitive practices) 

investigations it concluded during FY 2013. Actions 

pertaining to mergers included successful second request 

or compulsory process investigations in a variety of matters 

across various industries: pharmaceuticals hospitals, high 

technology, manufacturing, and energy. Additionally, the 

FTC successfully concluded its litigation against the Polypore 

International/Daramic merger, securing divestiture of the 

acquired assets and a restoration of competition lost in the 

merger. After securing a significant victory in the Supreme 

Court on the parameters of the state action defense in 

antitrust cases, the FTC settled its litigation against the 

Phoebe Putney Health System.

In regard to anticompetitive practices, the FTC took action 

to stop and prevent anticompetitive tactics that harm 

consumers by thwarting competition. For example, during 

FY 2013, the FTC issued a consent order prohibiting IDEXX 

(the U.S.’s largest supplier of diagnostic testing products used 

by small animal veterinarians) from maintaining concurrent 

exclusive distribution agreements with all three top tier 

distributors for the next 10 years. In another conduct case, 

the FTC required Google to license on fair, reasonable, and 

non-discriminatory terms patents that it had acquired in 

its acquisition of Motorola Mobility. In ongoing litigation, 

the Supreme Court held in FTC v. Actavis that pay-for-delay 

agreements between brand and generic pharmaceutical 

companies are subject to antitrust scrutiny, thus reversing a 

lower court’s dismissal of the FTC’s case. The matter can now 

proceed to trial.

Actual 42.2% 

4

2012 Actual 43.1% 

4

2011 Actual 34.1% 1

6

1 This is a correction to results reported in the FY 2011 PAR. The results should have been based on 15 out of 44 cases, or 34%. The FY 2011

PAR reports actuals on 14 of 44 cases, or 32%.
13

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Efficiency Measure 2.1.4 Consumer savings of at least thirteen times the amount of FTC resources allocated to the 

merger program.

2013

*Target 1,300.0%

Performance Highlights

During FY 2013, the agency saved consumers approximately 

13 times the amount of resources devoted to the merger 

program.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Actual Strategic Plan Addendum. 1,382.2% 

4

2012 Actual 1,492.4% 

4

2011 Actual 1,419.0%2

4

Efficiency Measure 2.1.7 Consumer savings of at least twenty times the amount of FTC resources allocated to the 

nonmerger program.

2013

*Target 2,000.0%

Performance Highlights

During FY 2013, the agency saved consumers approximately 

23 times the amount of resources devoted to the nonmerger 

enforcement program. This is largely attributable to the 

consumer savings from one particular case from FY 2010 

involving Intel Corporation. The targets for FY 2012 through 

FY 2014 were modified in response to the agency greatly 

exceeding the target due to this case.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

Actual 2,296.0%

4

2012 Actual 1,831.7% 

✖

2011 Actual 1,917.7% 

4

2 This is a correction to results reported in the FY 2011 PAR. The results should have been based on a savings of $532.2 (million), or 1,419%.

The FY 2011 PAR reports savings of $531.5 (million), or 1,417%.
14 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

Objective 2.2: Prevent consumer injury through education.

Key Measure 2.2.1 Competition resources accessed via the FTC’s website. (Output Measure)

**2013

*Target 24.0 million hits

Performance Highlights

The FTC is committed to developing readily-available 

online competition content. Through its online presence, 

the FTC strives to provide content to serve its stakeholders, 

whether they are individual consumers, affected businesses, 

researchers, or practitioners and policy makers. During FY 

2013, the FTC’s online competition resources registered over 

44 million hits. These resources include pages that relate 

to individual investigations (such as complaints, orders, 

comments, and press releases), policy and research oriented 

content (such as reports, policy guides, and fact sheets, 

workshop or conference webpages, the online competition 

enforcement database, advocacy filings, and amicus briefs), 

and business and consumer education material. The use by 

the FTC of social media, including Twitter and Facebook, has 

driven more traffic than expected to certain competition 

related pages, including the FTC’s early termination notices. 

The agency did not account for the rapid growth in these 

tools when it set the target for this measure.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 44.1 

4

2012 Actual 23.2 

✖

2011 Actual 22.6 

4
15

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Objective 2.3: Enhance consumer benefit through research, reports, and advocacy.

Key Measure 2.3.1 Workshops, seminars, conferences, and hearings convened or cosponsored that involve 

significant competition-related issues. (Output Measure)

2013

Target

4 workshops, 

seminars, 

conferences and 

hearings

Performance Highlights

The FTC devotes resources to the creation of workshops, 

conferences, and hearings to foster an environment of 

discussion and analysis of competition-related issues. In FY 

2013, the FTC held four major conferences.

One event was the Pet Medications Workshop held in 

October 2012. The workshop examined competition and 

consumer protection issues in the pet medications industry.

The FTC’s Microeconomics Conference, held in November 

2012, focused on antitrust, consumer protection and policy 

issues that FTC economists encounter in their work. It 

also included discussions of structural models in applied 

industrial organization and the economics of hospital 

competition.

A joint conference was held in December 2012 with the 

Department of Justice’s Antitrust Division. Participants 

examined the impact of patent assertion entity activity on 

innovation and competition.

Finally, the FTC hosted a forum on using enforceable industry 

codes of conduct to protection consumers in cross-border 

commerce, which included a discussion of the anti-trust 

implications of such codes.

Actual 4 

4

2012 Actual 3 

✖

2011 Actual 4 

4
16 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

Key Measure 2.3.2 Reports and studies issued on key competition-related topics. (Output Measure)

2013

Target 8 reports and 

studies

Performance Highlights

A key component to the FTC’s competition-related 

strategy objective is studying and issuing working papers 

on competition-related topics. During FY 2013, the 

FTC published working papers on how mergers affect 

competition in grocery retailing, the structural evolution of 

the dialysis industry with a focus on differences between 

for profit and nonprofit clinics, and the effect of entry on 

generic drug prices. The FTC also published an annual report 

on concentration in the ethanol industry and the HartScott-Rodino Annual Report on the premerger notification 

program and merger enforcement.

Actual 14 

4

2012 Actual 9 

4

2011 Actual 11 

4

Key Measure 2.3.3 Advocacy comments and amicus briefs on competition issues filed with entities 

including federal and state legislatures, agencies or courts. (Output Measure)

**2013

*Target 10 comments 

and briefs

Performance Highlights

In FY 2013, the FTC filed advocacy comments and amicus 

briefs on competition issues such as pay-for-delay 

pharmaceutical patent settlements, standard essential 

patents, the regulation of certified registered nurse 

anesthetists and advanced practice registered nurses, 

taxicab licensing, and smartphone applications for arranging 

passenger motor vehicle transportation services.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 19 

4

2012 Actual 18 

4

2011 Actual 16 

4
17

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Objective 2.4: Protect American consumers in the global marketplace by providing sound 

policy recommendations and technical advice to foreign governments and international 

organizations to promote sound competition policy.

Key Measure 2.4.1 Policy advice provided to foreign competition agencies, directly and through 

international organizations, through substantive consultations, written submissions, or comments. (Output 

Measure)

**2013

*Target 60 policy inputs

Performance Highlights

In FY 2013, the FTC provided policy advice to foreign 

competition agencies in over 100 instances through 

consultations, written submissions, or comments. The FTC’s 

policy advice remains highly regarded and sought after by 

new and more experienced competition agencies and by 

participants in international competition organizations and 

conferences.

* Annual targets for FY12 - FY14 were increased based on 

projected future performance as reported in the FTC’s FY 2012 

Strategic Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 100 

4

2012 Actual 146 

4

2011 Actual 112 

4
18 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

STRATEGIC GOAL 3: ADVANCE PERFORMANCE

Objective 3.1: Provide effective human resources management.

Key Measure 3.1.2 The extent employees think the organization has the talent necessary to achieve 

organizational goals. (Outcome Measure)

2013

Target 56.0%

Performance Highlights

The Federal Human Capital Survey includes 98 questions 

that measure how effectively agencies manage their 

workforces. The FTC was at least five points higher than 

the government-wide average on 63 of the 84 nondemographic questions, and only one item fell more than 

five points below the government-wide average on any 

question. In Talent Management, the government-wide 

results were 56.0% and the FTC received 69.0%, which is 

second place compared to 37 other departments and 

agencies with more than 1,000 full-time employees.

Actual 69.0% 

4

2012 Actual 70.0% 

4

2011 Actual 70.0% 

4

Objective 3.2: Provide effective infrastructure and security management.

Key Measure 3.2.1 A favorable Continuity of Operations (COOP) rating. (Output Measure)

2013

Target 75.0% rating

Performance Highlights

The FTC participated in the government-wide Eagle Horizon 

Exercise 2013 to test and verify the effectiveness of the FTC 

COOP. The FTC’s overall score of 85.0% for the Eagle Horizon 

2013 Exercise reflects the strong overall commitment 

and continued support of the FTC COOP. This score was 

comparable to the 2012 score and demonstrates sustained 

high performance for the FTC’s participation in COOP testing 

exercise conducted by the Federal Emergency Management 

Agency (FEMA). Continued efforts to better define the FTC’s 

essential functions and ensure that effective procedures 

are in place are reflected in the outstanding overall exercise 

score.

Actual 85.0% 

4

2012 Actual 90.0% 

4

2011 Actual 75.0% 

4
19

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

Key Measure 3.2.2 Availability of information technology systems. (Outcome Measure)

2013

Target 99.50% system 

availability

Performance Highlights

In FY 2013, the information technology services pool 

averaged 100.0% availability, exceeding the target. These 

services include mission critical systems, such as email, 

phone and voicemail, and wireless services.

Actual 100.0% 

4

2012 Actual 99.86% 

4

2011 Actual 99.82% 

4

Objective 3.3: Provide effective information resources management.

Key Measure 3.3.1 The percentage of Commission-approved documents in the FTC’s ongoing and newly 

initiated proceedings available via the Internet within 15 days of becoming part of the public record. (Output 

Measure)

**2013

Target 80.0%

Performance Highlights

Making public documents available on the public FTC 

website in a timely manner increases public awareness of 

the FTC’s activities. Examples of public documents approved 

by the FTC and placed on the website include (1) the 

FTC’s complaints, pleadings, opinions and orders filed in 

adjudicative proceedings; (2) the Federal Register notices 

in rulemaking, guide issuance, regulatory review, consent 

agreement, and other proceedings in which the FTC solicits 

public comments; (3) reports by the FTC and its staff; (4) 

advocacy filings; (5) final consent orders and accompanying 

complaints; and (6) the FTC’s complaints, briefs, and 

proposed orders filed in federal court litigation.

In FY 2013, the agency posted 80.6% of documents tracked 

under this measure on the FTC’s public website within 15 

days of becoming part of the public record.

** This measure will no longer be reported after FY 2013.

Actual 80.6% 

4

2012 Actual 80.2% 

4

2011 Actual 82.0% 

4
20 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

Objective 3.4: Provide effective financial and acquisition management.

Key Measure 3.4.2 The percentage of Bureaus/Offices that establish and maintain an effective, risk-based 

internal control environment. (Outcome Measure)

**2013

Target 100.0%

Performance Highlights

The Statements of Assurance submitted by the agency’s 

major components provide the basis for measuring the 

effectiveness of the agency’s risk-based internal control 

environment. Based on these Statements of Assurance, 

100% of the major components establish and maintain an 

effective, risk-based internal control environment.

** This measure will no longer be reported after FY 2013.

Actual 100.0% 

4

2012 Actual 100.0% 

4

2011 Actual 100.0% 

4
21

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

AGENCY MISSION CHALLENGES

The FTC stands prepared to face the challenges of 

today’s marketplace as a champion for competition 

and consumers. As a small law enforcement agency 

with a broad mandate, many of the FTC’s challenges 

are defined by the conditions of the marketplace, and 

thus are ever changing. For example, as consumers 

and businesses encounter difficulties with financial 

scams, deceptive or fraudulent advertising, online 

privacy and data security, and anticompetitive 

business practices in the technology, health care and 

other industries, the FTC steps forward to promote 

competition and protect consumers. Agency mission 

challenges are presented as they relate to the agency’s 

strategic goals: Strategic Goal 1 (Protect Consumers) 

and Strategic Goal 2 (Maintain Competition). A 

reference to the most applicable strategic objectives is 

also provided, so readers may refer to descriptions of 

related performance targets and actual results listed by 

objective within the Performance Section. 

Management’s assessment was performed separately 

from the Inspector General’s (IG) identified 

management and performance challenges (see Other 

Accompanying Information Section). Management 

concurs with the IG identified challenges and his 

assessment of agency progress in addressing the 

challenges.

STRATEGIC GOAL 1: PROTECT 

CONSUMERS: PREVENT FRAUD, 

DECEPTION, AND UNFAIR 

BUSINESS PRACTICES IN THE 

MARKETPLACE

Under the goal of protecting consumers, the FTC 

will continue to give priority to addressing the 

following challenges: protecting consumer privacy and 

improving data security, stopping harmful practices 

that take advantage of new technology, promoting 

compliance in new media, protecting underserved 

Americans from fraud, protecting consumers in the 

financial services marketplace, combating identity 

theft, targeting deceptive advertising relating to 

consumers’ health, protecting children in the 

marketplace, and evaluating environmental marketing 

claims.

PROTECTING CONSUMER PRIVACY AND 

IMPROVING DATA SECURITY:

The FTC will continue to take a leading role in efforts 

to protect consumers from unfair, deceptive, or other 

illegal practices related to the privacy of their personal 

information, while preserving the many benefits that 

technological advances offer. The agency will stop 

unfair and deceptive consumer privacy and data 

security practices through law enforcement. It will 

promote stronger privacy protections through policy 

initiatives on a range of topics such as studying the 

privacy practices of the data broker industry. The FTC 

will also participate in interagency groups, promote 

self-regulatory efforts, provide technical assistance to 

the Congress on draft legislation, and participate in 

international privacy initiatives. (Objectives 1.1, 1.2, 

1.3, and 1.4)

STOPPING HARMFUL PRACTICES 

THAT TAKE ADVANTAGE OF NEW 

TECHNOLOGY:

Technology provides countless benefits to consumers, 

including choice, convenience, and increased access 

to goods, services, and information. It also enables, 

however, new vehicles for fraudulent, deceptive, 

and unfair practices in the marketplace. The FTC 

will continue to examine consumer protection 

issues in the mobile marketplace. The FTC will take 

enforcement actions against unfair and deceptive 

practices, including mobile cramming, text message 

spam, and misleading representations about apps. 

Technological advances also have created law 
22 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

enforcement challenges such as making it difficult for 

consumers and law enforcers to identify the location 

of fraudsters pitching scams over the telephone 

and to combat illegal robocalls. The FTC will 

continue to work with consumer groups, industry, 

technologists, policymakers, and other stakeholders 

to develop solutions to halt illegal robocalls and other 

telemarketing calls that violate the National Do Not 

Call Registry. (Objectives 1.1, 1.2, 1.3, and 1.4)

PROMOTING COMPLIANCE IN NEW 

MEDIA:

As newer media such as text messaging and wordof-mouth/viral marketing open new avenues for 

companies to communicate with consumers, 

businesses must ensure that their marketing and sales 

practices in this new media comply with the law. The 

FTC will promote compliance by conducting outreach 

to businesses that engage in viral, mobile, and 

affiliate marketing, stressing that existing advertising 

principles apply to new media and methods of 

marketing. The FTC will also monitor the marketplace 

and initiate investigations where appropriate. 

(Objectives 1.1, 1.2, 1.3, and 1.4)

PROTECTING UNDERSERVED 

AMERICANS FROM FRAUD: 

Frauds such as those offering purported government 

loans and grants, or income opportunities affect 

everyone but pose an even greater risk to those from 

low-income and underserved communities, and the 

FTC will continue its law enforcement efforts in this 

area. The FTC also will continue to use the tools and 

authorities available to it to protect consumers by 

taking enforcement actions to stop deceptive mortgage 

and other debt services, payday lending operations 

engaging in deceptive practices, and abusive debt 

collection practices. These practices can have severe 

consequences for consumers who can least afford it. 

The FTC also will combat fraud targeting seniors, such 

as prize promotion scams, and examine ways to better 

assist older victims. (Objectives 1.1, 1.2, 1.3, and 1.4)

PROTECTING CONSUMERS IN THE 

FINANCIAL SERVICES MARKETPLACE: 

Even as the economy recovers, many consumers 

continue to face financial challenges. The FTC will 

continue to closely coordinate with the Consumer 

Financial Protection Bureau to ensure that consumers 

are protected in the financial marketplace and to 

avoid any duplicative efforts between the agencies. In 

addition to the areas of financial fraud identified in 

the previous section, the agency also will take action 

against deceptive practices related to motor vehicle 

sales, leasing, and financing. (Objectives 1.1, 1.2, 1.3, 

and 1.4)

COMBATING IDENTITY THEFT: 

Identity theft exacts a heavy financial and emotional 

toll from its victims, and the FTC will continue to 

assist the millions of Americans who are victimized 

each year. The FTC will continue to be the repository 

for identity theft complaints and make them available 

to federal criminal law enforcement agencies. Our 

trained counselors will continue to advise identity 

theft victims who call our toll free number about 

rights and remedies available to them under federal 

law. The agency also will publicize its victim 

assistance guide for pro-bono attorneys, train local 

law enforcement to spot and prosecute identity theft, 

and update educational materials to address new 

and emerging issues, such as medical and children’s 

identity theft. (Objectives 1.1, 1.2, 1.3, and 1.4)

TARGETING DECEPTIVE ADVERTISING 

RELATING TO CONSUMERS’ HEALTH:

Consumers can fall prey to fraudulent health 

advertising when they are in need of medical help. 

The FTC, therefore, will continue to challenge 

deceptive advertising of health products, such as 

dietary supplements. The agency will focus on disease 

prevention and treatment claims; claims aimed at 

baby boomers, seniors, and the uninsured; and claims 

exploiting emerging health threats. In addition, the 

agency is coordinating in a wider government effort 
23

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

to prevent fraud related to the new health insurance 

marketplaces. (Objectives 1.1, 1.2, 1.3, and 1.4)

PROTECTING CHILDREN IN THE 

MARKETPLACE: 

Children and teens are particularly vulnerable to 

deceptive, unfair, and age-inappropriate advertising. 

The agency will educate businesses about their 

obligations pursuant to the recently revised Children’s 

Online Privacy Protection Act (COPPA) Rule, and 

bring enforcement actions as appropriate against 

entities that violate the Rule. The FTC also plans to 

monitor alcohol advertising, promote self-regulation 

to reduce minors’ exposure to alcohol advertising, and 

prepare a report to Congress evaluating compliance 

by alcohol companies with self-regulatory guidelines. 

Further, the agency will continue to monitor the 

marketing of violent entertainment to children and the 

ability of teens under age 17 to purchase age-restricted 

products containing violent content, and plans to 

release the results of an online survey of children 

regarding their access to and use of violent mobile 

game apps. (Objectives 1.1, 1.2, 1.3, and 1.4)

EVALUATING ENVIRONMENTAL 

MARKETING CLAIMS: 

Many consumers are interested in purchasing 

goods and services that have certain environmental 

attributes. Environmental marketing claims (such as 

“made with recycled content” or “biodegradable”) 

can be potentially useful to consumers. Consumers, 

however, cannot judge the veracity of these types 

of claims themselves, and the complexity of the 

issues involved creates the potential for confusing or 

misleading claims. The FTC will educate businesses 

about the FTC’s Guides for the Use of Environmental 

Marketing Claims (“Green Guides”), and will bring 

enforcement actions to stop deceptive environmental 

marketing claims. (Objectives 1.1, 1.2, 1.3, and 1.4)

STRATEGIC GOAL 2: MAINTAIN 

COMPETITION: PREVENT 

ANTICOMPETITIVE MERGERS 

AND OTHER ANTICOMPETITIVE 

BUSINESS PRACTICES IN THE 

MARKETPLACE

Under the Maintain Competition goal, the FTC 

will continue to give priority to the challenges 

of promoting competition and preventing 

anticompetitive activity particularly in the health 

care and pharmaceutical industries, technology 

sectors, and energy industries. The agency will also 

work on promoting sound competition policy at the 

international level and advocating for competition 

before federal courts, state legislatures, and other 

governmental agencies.

PROMOTING COMPETITION IN HEALTH 

CARE AND PHARMACEUTICALS: 

The rapidly rising cost of health care, which continues 

to account for an increasingly significant share of 

the gross domestic product, is a matter of concern 

for consumers, employers, insurers, and the nation 

as a whole. To ensure that consumers receive the 

benefits of competition in health care, the FTC has 

made antitrust enforcement in this area a priority. 

One particular area of FTC focus has been payfor-delay patent settlement agreements between 

brand and generic drug manufacturers to delay 

generic competition. As the Supreme Court recently 

explained in FTC v. Actavis, “there is reason for 

concern that settlements taking this form tend to have 

significant adverse effects on competition.” These 

agreements deprive consumers of access to lower cost 

generic drugs. According to FTC economists, these 

anticompetitive deals, unless stopped, could cost 

consumers up to $35 billion over ten years. The FTC

investigates and challenges patent settlements between 

brand and generic companies, when appropriate, 

and seeks relief for consumers when appropriate. 
24 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

The agency also addresses rising prescription drug 

prices by investigating pharmaceutical and medical 

device company mergers and acquisitions. In addition, 

the FTC stops anticompetitive agreements between 

physicians and hospital service organizations and 

mergers and acquisitions involving hospitals and other 

health care providers that may raise the cost of health 

care. The agency has issued guidance about antitrust 

law to prevent groups of health care providers from 

creating and exercising market power to the determent 

of consumers. The FTC focuses these efforts so 

that misunderstandings about the law do not deter 

potentially beneficial collaborations among health 

care competitors. The Affordable Care Act of 2010

encourages healthcare providers to create integrated 

health care delivery systems, called Accountable Care 

Organizations, to improve the quality of care and 

lower health care costs. The FTC worked with the 

other relevant U.S. agencies (the Antitrust Division 

of the Department of Justice and the Centers for 

Medicare and Medicaid Services) to develop a Joint 

Statement of Antitrust Enforcement Policy for 

Accountable Care Organizations, which makes clear 

that the antitrust laws are not a barrier to bona fide 

collaboration to improve healthcare and reduce costs. 

Upon request, FTC staff reviews certain proposed 

ACOs. The FTC retains the ability to challenge 

collaborations that are anticompetitive. (Objectives 

2.1, 2.2, and 2.3)

CONTINUING EMPHASIS ON 

TECHNOLOGY:

The continuing importance of technology and the 

fast pace at which these markets evolve is a crucial 

marketplace challenge. FTC antitrust investigations 

increasingly involve high-technology sectors of the 

economy, such as devices used in manufacturing, 

electronic components, and computer hardware and 

software. In enforcing the antitrust laws, the FTC 

analyzes mergers and acquisitions filed under the 

Hart-Scott-Rodino (HSR) Act, and also monitors 

the marketplace for non-reportable transactions that 

might raise anticompetitive concerns. The FTC takes 

action against those mergers that are likely to reduce 

or eliminate competition. In addition, the FTC is 

vigilant where a firm may be illegally using a dominant 

market position to stifle competition and strengthen 

an existing monopoly in order to raise prices, reduce 

the quality or choice of goods and services, or reduce 

innovation; or where groups of competitors take 

collective action that threatens to increase price or 

stifle innovation. Furthermore, issues in antitrust and 

competition policy matters increasingly intersect with 

intellectual property. Among other work, the FTC will 

work to advance a greater understanding of the impact 

of patent assertion entities (also known as PAEs) on 

competition and consumers and take enforcement 

activity where appropriate to curb anticompetitive and 

deceptive conduct. (Objectives 2.1 and 2.3)

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. Through its review of HSR 

merger filings and investigation of non-reportable 

transactions, the FTC promotes competition and 

protects consumers in these markets. The FTC 

also 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. The FTC examines 

energy markets for anticompetitive nonmerger activity 

as well, such as illegal agreements among competitors, 

agreements between manufacturers and product 

dealers, monopolization, and other anticompetitive 

activities. The FTC continues to investigate whether 

certain oil producers, refiners, transporters, marketers, 

physical or financial traders, or others (1) have 

engaged in practices, including manipulation, that 
25

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

have lessened or may lessen competition in the 

production, refining, transportation, distribution, or 

wholesale supply of crude oil or petroleum products; 

or (2) have provided false or misleading information 

related to the wholesale price of crude oil or petroleum 

products to a federal department or agency. Such 

actions could violate Section 5 of the FTC Act,

the Commission’s Prohibition of Energy Market 

Manipulation Rule, or Section 811 or Section 812 of 

the Energy Independence and Security Act of 2007. 

To prepare and support agency staff in meeting these 

challenges, 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. The 

FTC has issued reports on the factors that influence 

the prices that American consumers pay for gas. These 

reports, the most recent of which was released in 2011, 

show that the price of oil is still the most important 

factor in gas prices. (Objectives 2.1 and 2.3)
26 FEDERAL TRADE COMMISSION • 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)

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, 

performing a preliminary risk assessment of such 

processes, reviewing and assessing the overall control 

environment, ensuring 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 2013, the SAT updated guidance for 

program managers to use in completing selfassessments 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 Standards 

for Attestation Engagements (SSAE) No. 16), 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. 

In FY 2013, the FTC continued to follow its Internal 

Control Review Plan. The objective of the reviews is to 

assist management in identifying high-risk areas and 

implement appropriate risk management strategies 

where necessary. Two additional reviews were initiated 

or underway this year. The Chairwoman’s assurance 

statement that follows is supported by the processes 

and reviews described above, which were carried out 

in FY 2013. Management assurances tables appear in 

the Other Accompanying Information Section.
27

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

CHAIRWOMAN’S FMFIA STATEMENT OF ASSURANCE
28 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

SUMMARY OF MATERIAL WEAKNESS AND 

NONCONFORMANCES

As noted in the Chairwoman’s FMFIA Statement of 

Assurance, the FTC has no material weaknesses or 

nonconformances to report for FY 2013. No new 

material weaknesses or significant nonconformances 

were identified for the past nine years, nor were 

there any existing unresolved weaknesses requiring 

corrective action.

FEDERAL INFORMATION SECURITY 

MANAGEMENT ACT (FISMA)

As mandated by FISMA, the agency continues 

to maintain an information security program to 

manage information technology in accordance with 

National Institute of Standards and Technology 

(NIST) requirements. During FY 2013, the FTC has 

performed five Assessment and Authorization (A&A) 

efforts and currently has nineteen systems authorized 

to operate. The FTC leveraged two Federal Risk and 

Authorization Management Program (FedRAMP) 

Joint Authorization Board (JAB) provisional 

authorizations – one for the cloud hosting of our 

public web sites and one for the Sentinel Network 

Services systems.

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. The FTC monitors, administers 

and collects on debts less than 180 days delinquent. 

The FTC also monitors, administers and collects on 

debts more than 180 days delinquent. All eligible, 

nonexempt 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 

2013, the FTC processed 9,200 invoices totaling $100 

million that were subject to prompt payment. Of these 

invoices, 99.1 percent were paid on time. During FY 

2013, the FTC paid a total of $312 in interest penalties, 

or .0003 percent of the total dollar amount invoiced.

AGENCY FINANCIAL MANAGEMENT 

SYSTEMS STRATEGY

The FTC’s overall strategy for its financial 

management systems framework is driven by the 

objectives of operational effectiveness and efficiency, 

reliability and timeliness of data, and support of 

requirements of the agency’s strategic goals. The 

agency continues to work with its shared service 

provider in enhancing its Core Financial System 

(CFS) and the related feeder systems and business 

processes. The FTC also plans to fully integrate its 

procurement system with its CFS. Such integration 

will strengthen internal controls, improve efficiency 

of the procurement process, and provide agency staff 

with timely information regarding budget execution 

and the availability of funds.
29

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

FINANCIAL HIGHLIGHTS

Introduction

The financial highlights presented below are an analysis 

of the information that appears in the FTC’s FY 2013 

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 

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 17th straight year, the FTC is proud 

to have received an unqualified (clean) opinion on its 

audited financial statements. The chart below presents 

a snapshot of the changes in key financial statement 

line items that occurred during FY 2013 and is followed 

by an explanation of the more significant fluctuations 

in each of FTC’s financial statements.

Differences between amounts presented in this section and the financial statements are due to rounding.

CONDENSED BALANCE SHEET (Dollars shown in thousands) FY 2013 FY 2012 Percentage

Change

Assets:

Fund balance with Treasury $ 206,638 $ 192,786 7%

Cash and other monetary assets 18,239 28,360 -36%

Accounts receivable, net 24,838 31,986 -22%

General property & equipment, net 22,042 18,385 20%

Total Assets $ 271,757 $ 271,517 0%

Liabilities:

Accrued consumer redress due to claimants $ 23,693 $ 27,219 -13%

Consumer redress collections not yet disbursed 65,848 84,935 -22%

Accounts payable and other 29,725 30,609 -3%

Total Liabilities $ 119,266 $ 142,763 -16%

Net Position:

Cumulative results of operations 152,491 128,754 18%

Total Net Position $ 152,491 $ 128,754 18%

Total Liabilities and Net Position $ 271,757 $ 271,517 0%

COST SUMMARY (Dollars shown in thousands) FY 2013 FY 2012 Percentage 

Change

 Gross costs $ 287,941 $ 286,054 1%

Less earned revenue (95,811) (101,619) -6%

Net Cost of Operations $ 192,130 $ 184,435 4%
30 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL ANALYSIS

ASSETS

The FTC’s Balance Sheet shows total assets of $271.8 

million at the end of FY 2013, an increase of $0.3 million 

or 0.1 percent compared to total assets of $271.5 million

in FY 2012. The small variance between the two years 

is explained through the analysis of the individual asset 

categories. 

The increase of $14 million in the fund balance with 

Treasury is due primarily to an increase in unpaid 

obligations at the end of the period. Cash and other 

monetary assets decreased by $10 million, due primarily 

to a large consumer redress distribution in FY 2013 of 

a judgment collected in FY 2012. Accounts receivable, 

net, decreased by $7 million, due to an increase in the 

allowance for uncollectible accounts in the consumer 

redress program, and to an increase in collections of 

civil penalties. General property & equipment, net, 

increased by $4 million, due primarily to capital asset 

additions during the year. The majority of additions 

were leasehold improvements, arising from the pending 

move of offices from M Street, and 601 New Jersey

Avenue to the Constitution Center building on 400 7th 

Street. 

ASSETS BY TYPE (Dollars shown in millions)

General property and equipment, $22

Fund balance with Treasury, $207

Cash and other monetary assets, $18

Accounts receivable, net, $25 

9%

7%

8%

76%
31

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

LIABILTIIES

The FTC’s total liabilities at the end of FY 2013 were 

$119 million, a decrease of $23 million or 16 percent,

from fiscal year 2012 total liabilities of $143 million. 

The decrease is explained through the analysis of the 

individual liability categories. 

Accrued consumer redress due to claimants is the 

liability offset to consumer redress accounts receivable, 

net. The decrease of $4 million in this liability reflects a 

similar decrease in the accounts receivable, net, related 

to consumer redress.

Consumer redress collections not yet disbursed is 

the liability offset to amounts collected for consumer 

redress and held temporarily in a Treasury deposit 

fund ($48 million) or as cash in a financial institution 

($18 million). The decrease of $19 million is due to a 

decrease in redress collections during fiscal year 2013. 

Accounts payable and other decreased by $1 million in 

FY 2013, due to the decrease in the civil penalty accrual 

(the offsetting liability corresponding to the accounts 

receivable, net, for civil penalties). 

LIABILITIES BY TYPE (Dollars shown in millions)

Accounts payable and 

Other, $30 

Redress collected not yet

disbursed, $66 

Accrued redress receivables 

due to claimants, $24 

55%

20%

25%
32 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

NET POSITION

Net position represents the FTC’s cumulative results 

of operations. At the end of FY 2013, the FTC’s net 

position is $153 million, increasing by $24 million or 18

percent over the FY 2012 ending net position of $129 

million.

Financing sources from appropriations used during 

the year were $207 million and imputed financing 

sources totaled $9 million for a total of $216 million.

The imputed financing sources consisted of $4 million 

in future retirement benefits and $5 million in future

health and life insurance benefits accrued in FY 2013, 

which will be paid by entities other than the FTC.

The financing sources of $216 million exceed the net

cost of operations totaling $192 million (gross costs of 

$288 million less revenues from fees of $96 million),

resulting in the $23 million increase in net position. 

RESULTS OF OPERATIONS

The gross cost of FTC’s programs was $288 million for 

FY 2013, representing an increase of $2 million, or 1 

percent over FY 2012. The primary factors contributing 

to this increase were an increase in personnel and 

related benefit costs of $5 million offset by a decrease in

losses on disposition of asset. Gross costs are inclusive 

of all costs involved in FTC’s ongoing operations. 

Earned revenues offset FTC’s gross costs in determining 

the net costs of operations. FTC’s earned revenues are 

derived primarily from fees collected for the National 

Do Not Call (DNC) Registry and for premerger 

filings under the Hart-Scott-Rodino Act. Total earned 

revenues were $96 million in FY 2013, representing a

decrease of $6 million from FY 2012. This decrease was

due primarily to a decrease in premerger filing fees in 

FY 2013.

The increase in gross costs and the decrease in earned 

revenues in FY 2013, contributed to the overall increase 

of $8 million in net costs from FY 2012 to FY 2013. 

FY 2013 NET COSTS BY STRATEGIC GOAL

(Dollars shown in thousands)

Strategic Goal 1

Protect Consumers

Strategic Goal 2

Maintain Competition Total

Gross Costs $ 165,566 $ 122,375 $ 287,941

Less Earned Revenue (14,118) (81,693) (95,811)

Net Cost of Operations $ 151,448 $ 40,682 $ 192,130
33

MANAGEMENT’S DISCUSSION AND ANALYSIS

FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

BUDGETARY RESOURCES

The Statement of Budgetary Resources (SBR) provides 

information on budgetary resources made available 

to the agency and the status of those resources at the 

end of the fiscal year. New budgetary authority (total 

budgetary resources excluding unobligated balances 

brought forward and prior year recoveries) was $296

million in FY 2013. The $296 million is comprised of

$207 in general fund appropriations and $89 million 

in spending authority from offsetting collection. 

Overall, this represents a decrease of $17 million 

or 5 percent from the $313 million received in FY

2012. The decrease is due appropriated amounts 

rescinded and to a decrease in offsetting collections. 

In FY 2013, general fund appropriations and offsetting 

collections comprised 70 and 30 percent of new budget 

authority, respectively. This compares to general fund 

appropriation of $210 million and offsetting collections 

of $103 million, comprising 67 and 33 percent of new

budget authority, respectively, in FY 2012.

NEW BUDGET AUTHORITY FOR FY 2012 (Dollars shown in millions)

General Fund

Appropriations, $207

Spending authority from 

osetting collections, $89 

70%

30%
34 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS

LIMITATIONS OF FINANCIAL 

STATEMENTS 

FTC management has prepared its FY 2013 financial 

statements from the books and records of the agency 

in accordance with the requirements of 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 2013

DEBT MANAGEMENT

Eligible Nonexempt 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) 99.1%

Percentage Interest Penalties Paid to Total Dollars Invoiced 0.0003%

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%
PERFORMANCE

SECTION
36 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

INTRODUCTION TO 

PERFORMANCE

The Performance Section presents, by goals and 

objectives, detailed information on the performance 

results of the Federal Trade Commission’s (FTC) 

programs. This section also includes a discussion 

of strategies and factors affecting performance, a 

summary of methods used to verify and validate 

performance data, trend data, performance targets, 

and resource utilization data for Goal 1 and Goal 2. 

Since Goal 3 applies to overall performance across 

the agency, the resources utilized for Goal 3 are 

distributed to Goal 1 and Goal 23

. Generally, this 

section would also contain the results of program 

evaluations; however, the agency did not undergo 

any significant program evaluations in FY 2013. For 

a summary of the agency’s mission and a description 

of the organizational structure, see the Management’s 

Discussion and Analysis Section.

The goals, objectives, and performance measures 

reported in this PAR are based on the agency’s FY 

2009 to 2014 Strategic Plan, which became effective 

in FY 2010. In FY 2012, the agency updated the 

strategic plan with an addendum, reflecting interim 

adjustments to several performance measures and 

targets. The performance tables that follow present 

up to seven fiscal years of performance results and 

targets, except for those performance measures 

added in the addendum. These newest performance 

measures are presented starting in FY 2010. Measures 

or performance targets that changed as a result of the 

addendum are noted throughout the section where 

applicable. The addendum to the strategic plan is 

available at www.ftc.gov/sites/default/files/documents/

reports_annual/strategic-plan/spfy09fy14add.pdf.

This will be the final year that the agency reports 

performance information under the FY 2009 to 

2014 Strategic Plan. As required under the GPRA 

Modernization Act of 2010 (GPRAMA), each 

government agency is required to prepare an updated 

strategic plan every four years. In FY 2013, the agency 

updated its strategic plan for fiscal years 2014 to 2018. 

The new strategic plan will take effect in FY 2014.

RELATIONSHIP OF OUTPUTS TO 

OUTCOMES

The FTC continuously reviews its performance 

framework and focuses on tracking and reporting the 

most appropriate and meaningful outcome measures 

to show effectiveness, efficiency, and results. For 

example, outcome-based Performance Measures 2.1.2 

and 2.1.5 estimate the millions of dollars in consumer

savings that result from merger and nonmerger 

actions taken to maintain competition. The FTC, 

however, has not developed outcome measures in all 

cases, and uses input and output measures that either 

support outcomes, lead to outcomes, or otherwise 

provide valuable indicators of how the FTC is 

progressing toward achieving its strategic goals and 

objectives. Under the consumer protection goal, for 

example, Performance Measure 1.1.1 counts consumer 

complaints added to the FTC’s database, and 

Performance Measure 1.1.2 indicates the percentage 

of the agency’s consumer protection law enforcement 

actions that targeted the subject of consumer 

complaints. While these measures are not outcomeoriented, they bring the FTC closer to determining 

its impact in the ultimate desired outcome of a 

marketplace free of unfair practices that cause 

consumer injury and free of fraud and deception.

3

 Goal 3’s costs are distributed to Goal 1 and Goal 2 predominately by Goal 1’s and Goal 2’s FTE usage, except for those non-pay costs that 

are clearly attributable to a specific goal.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 37

PERFORMANCE SECTION

VERIFICATION AND VALIDATION OF 

PERFORMANCE DATA

The financial data and performance results described 

in this report enable the FTC to administer its 

programs, gauge programmatic success, and make 

adjustments necessary to improve program quality 

for the public. The Message from the Chairwoman on 

p. IV states that the FTC’s financial and performance 

data presented are complete and reliable. Appendix 

A provides details on the data quality of each 

performance measure. For FY 2013, a new subsection 

has been added in Appendix A to explain how a 

particular measure’s formula or calculation was 

computed. Additionally, the following steps outline 

how the agency ensures the performance information 

it reports is complete, reliable and accurate:

•	 The FTC has adopted a central internal

repository for performance data entry, 

reporting and review. The electronic data tool 

reduces human error, increases transparency, 

and facilitates senior management review of the 

agency’s performance information.

•	 The agency maintains written procedures

used to ensure timely reporting of complete, 

accurate, and reliable actual results relative to 

the key performance measures.

•	 The agency holds 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.

•	 The agency conducts quarterly performance

measurement reviews with management 

as well as 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.

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 Office of the Chief Information Officer 

(OCIO). In addition to the general controls the FTC 

has in place, which ensure only authorized staff 

can access key systems, each application (system) 

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 

accuracy and consistency. In addition to internal 

monitoring of each system, experts outside of the 

business units (e.g., the Bureaus of Consumer 

Protection (BCP) and Competition (BC)) routinely 

monitor the data collection. For example, senior 

economists from the Bureau of Economics review 

statistical data used by the Bureau of Competition to 

calculate performance results.

The Financial Management Office (FMO) 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.

STRATEGIC HUMAN CAPITAL 

MANAGEMENT

The FTC’s strategic human capital management ensures that the agency has the diverse, skilled workforce 

needed to advance its mission, achieve its strategic 

goals and objectives, and meet performance measure 

targets. The agency conducts human capital planning 
38 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

in concert with long-term strategic planning and annual performance planning to keep human capital 

goals, policies, programs, and initiatives aligned with 

the strategic and performance plans.

Human capital planning encompasses leadership 

and knowledge management, a results-oriented 

performance culture, talent management, and job 

satisfaction, which are evaluated annually by the 

U.S. Office of Personnel Management’s Employee 

Viewpoint Survey. More detailed information on 

human capital performance goals and results are 

provided on page 96.

LEGEND FOR UPCOMING TABLES

4 Signifies that the target is met or exceeded

6 Signifies that the target is not met

PERFORMANCE MEASURE 

SUMMARY TABLES

As noted in the Management’s Discussion and 

Analysis Section of this report, 16 of the FTC’s

performance measures are considered “key” measures 

because they best indicate whether agency activities 

are achieving the desired outcome associated with the 

related objective, and are indicated with a key graphic 

throughout this report. Additionally, four performance 

measures are considered efficiency measures because 

either they are ratios of outcomes to inputs or they 

capture administrative timeliness.

The tables that follow show FY 2013 performance 

targets and units of measure compared to actual 

results. In the tables that show historical performance, 

data is presented for as many years as the performance 

measure has been tracked by the agency. This length 

of time is linked to the FTC’s strategic plan revision 

process, which involves an agency-wide review of the 

existing set of measures and decisions made by senior 

management regarding what measures will change 

under the new strategic plan framework.

Of the 40 total performance measures, 34 were met or 

exceeded, five were not met, and data was not available 

for one measure in FY 2013. As context, in FY 2012, 

the agency met or exceeded 29 measures, did not meet 

nine measures, and data was not available for two 

measures. In FY 2011, the agency met or exceeded 36

measures, did not meet three measures and data was 

not available for one measure. In FY 2013, based on 

these results, the FTC continues to make significant 

progress toward reaching its objectives, as fully 

described in this section.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 39

PERFORMANCE SECTION

STRATEGIC GOAL 1: PROTECT CONSUMERS

Objective 1.1: Identify fraud, deception, and unfair practices that cause the greatest 

consumer injury.

Performance Measure 1.1.1 Complaints collected and 

entered into the Consumer Sentinel Network database.

Target 3.0 million complaints

Actual 5.7 million complaints 

4

Key Measure 1.1.2 The percentage of the 

FTC’s consumer protection law enforcement actions 

that target the subject of consumer complaints to the 

FTC.

Target 70.0% of actions

Actual 90.9% of actions 

4

Performance Measure 1.1.3 The rate of customer 

satisfaction with the FTC’s Consumer Response Center.

Target See (A) and (B) below

Actual

(A) 76.0% 

4

(B) 80.0% 

4

Target: (A) For the website, exceed average citizen satisfaction rate as published in the E-Government Satisfaction Index, 

which was 74%.

(B) For the call center, meet or exceed standards for call centers developed by the Citizen Service Levels Interagency 

Committee, which was 74%.
40 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

Objective 1.2: Stop fraud, deception, unfairness, and other unlawful practices through law 

enforcement.

 Key Measure 1.2.1 The percentage of all 

cases filed by the FTC that were successfully resolved 

through litigation, a settlement, or issuance of a default 

judgment.

Target 80.0-90.0% of cases

Actual 98.6% of cases 

4

Performance Measure 1.2.2 The FTC’s effectiveness 

in stopping prohibited business practices in three high 

priority areas over fiscal years 2009-2013.

Target Statistically significant decrease in the 

prevalence of the practices

Actual

Statistically significant decrease in one of the 

three high priority areas 

✖

Performance Measure 1.2.3 The percentage of 

redress cases in which the FTC distributes redress 

dollars designated for distribution to consumers within 

six months. (Efficiency Measure)

Target 90.0% of cases

Actual 94.7% of cases 

4

Performance Measure 1.2.4 Investigations or cases 

in which the FTC obtains foreign-based evidence or 

engages in mutual assistance that contributes to FTC 

law enforcement actions, or in which we cooperate 

with foreign agencies and/or multilateral organizations.

Target 30 investigations or cases

Actual 61 investigations or cases 

4
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 41

PERFORMANCE SECTION

Objective 1.3: Prevent consumer injury through education.

Performance Measure 1.3.1 Consumer protection 

messages accessed online or in print.

Target 50.0 million messages

Actual 43.6 million messages 

✖

Key Measure 1.3.2 Customer satisfaction rate with 

an FTC consumer education website or microsite.

Target 73.0%

Actual

80.0% 

4

Performance Measure 1.3.3 Organizations requesting 

consumer education publications. 

Target 12,300 organizations

Actual 11,236 organizations 

✖
42 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

Objective 1.4: Enhance consumer protection through research, reports, rulemaking, and 

advocacy.

Performance Measure 1.4.1 Workshops and conferences 

convened or cosponsored that address consumer protection 

problems.

Target 8 workshops and conferences

Actual 12 workshops and conferences 

4

Performance Measure 1.4.2 Advocacy comments and 

amicus briefs on consumer protection issues filed with 

entities including federal and state legislatures, agencies, or 

courts.

Target 6 comments and briefs

Actual 12 comments and briefs 

4

Performance Measure 1.4.3 The percentage of 

respondents finding the FTC’s advocacy comments and 

amicus briefs “useful.”

Target 75.0% of respondents

Actual 100.0% of respondents 

4

Key Measure 1.4.4 The percentage of proposed 

Administrative Procedure Act (APA) rulemakings, conducted 

solely by the FTC, completed within nine months of 

receipt of final comments in the Final Notice of Proposed 

Rulemaking. (Efficiency Measure)

Target 75.0% of rulemakings

Actual No APA rulemakings were proposed in FY 

2013
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 43

PERFORMANCE SECTION

Objective 1.5: Protect American consumers in the global marketplace by providing sound 

policy and technical input to foreign governments and international organizations to 

promote sound consumer policy.

Key Measure 1.5.1 Policy advice provided 

to foreign consumer protection and privacy agencies, 

directly and through international organizations, through 

substantive consultations, written submissions, or 

comments.

Target 60 policy inputs

Actual 61 policy inputs 

4

Performance Measure 1.5.2 Technical assistance to foreign 

consumer protection and privacy authorities.

Target 8 technical assistance missions or 

international Fellows hosted

Actual

13 technical assistance missions or 

international Fellows hosted 

4
44 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

STRATEGIC GOAL 2: MAINTAIN COMPETITION

Objective 2.1: Take action against anticompetitive mergers and practices that may cause 

significant consumer injury.

Key Measure 2.1.1 Actions to maintain competition, 

including litigated victories, consent orders, abandoned 

transaction remedies, restructured transaction remedies, or 

fix-it-first transaction remedies in a significant percentage of 

substantial merger and nonmerger investigations.

Target 40.0-60.0% of substantial investigations

Actual 42.2% substantial investigations 

4

Performance Measure 2.1.2 Consumer savings of at 

least $500 million through merger actions to maintain 

competition.

Target $500.0 million

Actual $564.2 million 

4

Performance Measure 2.1.3 Actions against mergers likely 

to harm competition in markets with a total of at least $25 

billion in sales.

Target $25.0 billion

Actual $21.0 billion 

✖

Performance Measure 2.1.4 Consumer savings of at least 

thirteen times the amount of FTC resources allocated to the 

merger program. (Efficiency Measure)

Target 1,300.0%

Actual 1,382.2% 

4

Performance Measure 2.1.5 Consumer savings of at least 

$450 million through nonmerger actions taken to maintain 

competition. 

Target $450.0 million 

Actual $449.8 million 

✖

Performance Measure 2.1.6 Actions against 

anticompetitive conduct in markets with a total of at least 

$12 billion in annual sales.

Target $12.0 billion

Actual $13.1 billion 

4

Performance Measure 2.1.7 Consumer savings of at least 

twenty times the amount of FTC resources allocated to the 

nonmerger program. (Efficiency Measure)

Target 2,000.0%

Actual 2,296.0% 

4

Performance Measure 2.1.8 The percentage of cases in 

which the FTC had at least one substantive contact with a 

foreign antitrust authority in which the agencies followed 

consistent analytical approaches and reached compatible 

outcomes.

Target 90.0% of cases

Actual 100.0% of cases 

4
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 45

PERFORMANCE SECTION

Objective 2.2: Prevent consumer injury through education.

Key Measure 2.2.1 Competition resources 

accessed via the FTC’s website.

Target 24.0 million hits

Actual 44.1 million hits 

4

Objective 2.3: Enhance consumer benefit through research, reports, and advocacy.

Key Measure 2.3.1 Workshops, seminars, 

conferences, and hearings convened or cosponsored that 

involve significant competition-related issues.

Target 4 workshops, seminars, conferences, and 

hearings

Actual

4 workshops, seminars, conferences, and 

hearings 

4

Key Measure 2.3.2 Reports and studies issued on 

key competition-related topics.

Target 8 reports and studies

Actual 14 reports and studies 

4

Key Measure 2.3.3 Advocacy comments and 

amicus briefs on competition issues filed with entities 

including federal and state legislatures, agencies or courts.

Target 10 comments and briefs

Actual 19 comments and briefs 

4

Performance Measure 2.3.4 The percentage of 

respondents finding the FTC’s advocacy comments and 

amicus briefs “useful.”

Target 75.0% of respondents

Actual 100.0% of respondents 

4

Performance Measure 2.3.5 The volume of traffic on 

www.ftc.gov relating to competition research, reports, and 

advocacy. 

Target 1.7 million hits

Actual 3.9 million hits 

4
46 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

Objective 2.4: Protect American consumers in the global marketplace by providing sound 

policy recommendations and technical advice to foreign governments and international 

organizations to promote sound competition policy.

Key Measure 2.4.1 Policy advice provided 

to foreign competition agencies, directly and through 

international organizations, through substantive 

consultations, written submissions, or comments.

Target 60 policy inputs

Actual 100 policy inputs 

4

Performance Measure 2.4.2 Technical assistance provided 

to foreign competition authorities.

Target 10 technical assistance missions or 

international Fellows hosted

Actual

34 technical assistance missions or 

international Fellows hosted 

4

STRATEGIC GOAL 3: ADVANCE PERFORMANCE

Objective 3.1: Provide effective human resources management.

Performance Measure 3.1.1 The extent employees 

believe their organizational culture promotes improvement 

in processes, products and services, and organizational 

outcomes.

Target 51.0%

Actual 64.0% 

4

Key Measure 3.1.2 The extent employees think 

the organization has the talent necessary to achieve 

organizational goals.

Target 56.0%

Actual 69.0% 

4
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 47

PERFORMANCE SECTION

Objective 3.2: Provide effective infrastructure and security management.

Key Measure 3.2.1 A favorable Continuity of 

Operations (COOP) rating.

Target 75.0% rating

Actual 85.0% rating 

4

Key Measure 3.2.2 Availability of information 

technology systems.

Target 99.50% system availability

Actual 100.0% system availability 

4

Objective 3.3: Provide effective information resources management.

Key Measure 3.3.1 The percentage of Commissionapproved documents in the FTC’s ongoing and newly 

initiated proceedings available via the Internet within 15 

days of becoming part of the public record.

Target 80.0% of documents

Actual 80.6% of documents 

4

Objective 3.4: Provide effective financial and acquisition management.

Performance Measure 3.4.1 Independent auditor’s 

financial statement audit results.

Target Unqualified opinion on the financial 

statements

Actual

Unqualified opinion on this financial 

statements 

4

Key Measure 3.4.2 The percentage of Bureaus/

Offices that establish and maintain an effective, risk-based 

internal control environment.

Target 100.0% of Bureaus/Offices

Actual 100.0% of Bureaus/Offices

4

Performance Measure 3.4.3 Performance against the Small 

Business Administration’s government-wide small business 

procurement goals.

Target 23.0% of total small business eligible 

dollars

Actual

49.5% of total small business eligible 

dollars 

4
48 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE 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 implements five objectives to 

achieve this 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 consumer complaint data it 

collects and maintains 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, increase 

compliance with its consumer protection statutes and 

rules, and return funds to harmed consumers.

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 

PROTECTION THROUGH RESEARCH, 

REPORTS, RULEMAKING, AND 

ADVOCACY.

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.

OBJECTIVE 1.5: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY AND TECHNICAL INPUT 

TO FOREIGN GOVERNMENTS AND 

INTERNATIONAL ORGANIZATIONS TO 

PROMOTE SOUND CONSUMER POLICY.

The FTC works around the globe to address new and 

emerging consumer protection and privacy challenges 

and concerns with a broad-based international 

program that strives to develop a safe and thriving 

global marketplace that encourages growth and 

innovation and fosters consumer trust.

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 better protect consumers, the FTC must identify 

problems confronting consumers and trends in the 

fast-changing, increasingly global marketplace. The 

agency strives to understand the issues affecting 

consumers, including any newly emerging methods of 

fraud or deceit, so that it can target its enforcement, 

education, and advocacy to those areas where 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 49

PERFORMANCE SECTION

consumers suffer the most harm. The FTC reports 

this information to other law enforcement authorities 

and encourages those authorities to assist in its efforts, 

either independently or jointly. In this way, the FTC 

leverages its resources by ensuring there are multiple 

“cops on the beat.”

To fulfill this objective, the FTC is using new 

technologies creatively and building on its broad base 

of private and public sector partners. The agency 

continues to collect consumer complaint information 

directly through four principal sources: (1) a tollfree helpline (1-877-FTC-HELP); (2) an identity 

theft hotline (1-877-ID-THEFT); (3) the National 

Do Not Call Registry (1-888-382-1222); and (4) the 

online consumer complaint forms that support each 

of these efforts, as well an online form dedicated 

to cross-border fraud complaints. In addition, 

the FTC continues to gather consumer complaint 

information from other sources, including other law 

enforcement agencies, the Better Business Bureaus, 

and private entities. The agency makes this and other 

information accessible through the secure website 

of the Consumer Sentinel Network (CSN), a unique 

investigative database of consumer complaints that 

is accessible to over 2,000 law enforcement partner 

agencies worldwide. The CSN encompasses more than 

23 million consumer fraud, identity theft, financial, 

and Do Not Call (DNC) complaints. FTC staff and 

law enforcement partners also have the ability to 

search more than 284 million spam records collected 

by the FTC via spam@uce.gov. The agency augments 

identification of targets from its databases with other 

strategies for generating enforcement leads, such as 

ad monitoring, internet surfs (monitoring the internet 

for potentially false or deceptive advertising for a 

targeted product or service), and direct referrals from 

government and private sector partners.

PERFORMANCE RESULTS

Performance Measure 1.1.1 ensures that the agency 

assimilates a large number of consumer complaints, 

including complaints about DNC violations. The 

agency receives these complaints from a variety of 

sources, including direct consumer complaints to the 

FTC and complaints received by the FTC’s partners. 

In this manner, the FTC collects robust information 

to inform its law enforcement efforts. Key Measure 

1.1.2 ensures that FTC law enforcement actions target 

the subject of concerns identified by consumers. 

Performance Measure 1.1.3 helps the agency’s 

consumer response center ensure it is providing 

satisfactory service responding to consumers.
50 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

TOP CONSUMER COMPLAINTS IN 

CALENDAR YEAR 2012

The list of top consumer complaints received by the FTC in 2012 

(excluding Do Not Call complaints, which are reported separately) 

showed that for the 13th year in a row, identity theft was the number 

one consumer complaint category. Of 2,061,495 complaints received, 

369,132 – or 18 percent – were related to identity theft. Debt 

collection complaints were in second place, with 199,721 complaints. 

The report is available on the FTC’s website at www.ftc.gov/sentinel/

reports/sentinel-annual-reports/sentinel-cy2012.pdf. 

Rank Category Number of 

Complaints Percentage Compared to 2011

1 Identity Theft 369,132 18%  from 15%

2 Debt Collection 199,721 10%  

3 Banks and Lenders 132,340 6%  from 5%

4 Shop-at-Home and Catalog Sales 115,184 6%  from 5%

5 Prizes, Sweepstakes and Lotteries 98,479 5%  from 6%

6 Impostor Scams 82,896 4%  

7 Internet Services 81,438 4%  from 5%

8 Auto Related Complaints 78,062 4%  

9 Telephone and Mobile Services 76,783 4%  

10 Credit Cards 51,550 3%  from 2%
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 51

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.1.1 

COMPLAINTS COLLECTED AND ENTERED INTO THE CONSUMER SENTINEL NETWORK 

DATABASE. (INPUT MEASURE – NUMBERS SHOWN IN MILLIONS)

**2013

*Target 3.0

TARGET MET/EXCEEDED. In FY 2013, the FTC added 5.7 

million entries into its database, exceeding the target of 3.0 

million.

The increased number of complaints in FY 2013 and FY 

2012 was driven by a continuing increase in the number 

of external data contributors and consumers continuing to 

contact the FTC in ever increasing numbers. 

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 5.7

2012

*Target 3.0

Actual 5.8

2011

Target 2.6

Actual 4.0

2010

Target 2.5

Actual 3.1

2009

Target 1.8

Actual 3.3

2008

Target 1.8

Actual 3.1

2007

Target 1.0

Actual 1.1

2006

Target 1.0

Actual 1.0
52 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY MEASURE 1.1.2 

THE PERCENTAGE OF THE FTC’S CONSUMER PROTECTION LAW ENFORCEMENT 

ACTIONS THAT TARGET THE SUBJECT OF CONSUMER COMPLAINTS TO THE FTC. 

(OUTPUT MEASURE)

2015 Target 80.0%

TARGET MET/EXCEEDED. In FY 2013, 90.9%, or 60 of 66, of 

BCP’s actions targeted the subject of consumer complaints 

to the FTC.

Because BCP augments identification of targets from its 

databases with other strategies for generating enforcement 

leads—such as ad monitoring, Internet surfs, mobile app 

surveys, and direct referrals from government and private 

sector partners—the results vary from year to year.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

2014 *Target 80.0%

2013

*Target 70.0%

Actual 90.9%

2012

*Target 70.0%

Actual 90.6%

2011

Target 65.0%

Actual 80.4%

2010

Target 65.0%

Actual 95.9%

2009

Target 65.0%

Actual 79.0%

2008

Target 65.0%

Actual 71.0%

2007

Target 50.0%

Actual 76.0%

2006

Target N/A

Actual N/A
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 53

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.1.3 

THE RATE OF CUSTOMER SATISFACTION WITH THE FTC’S CONSUMER RESPONSE 

CENTER. (OUTCOME MEASURE)

2015 Target See (A) and (B)

TARGET MET/EXCEEDED. In FY 2013, the average citizen 

satisfaction score for participating federal government 

websites was 74%, and the score for the FTC’s website was 

76%. The standard for call centers was 74%, and the FTC’s 

score was 80%.

2014 Target See (A) and (B)

2013

Target (A) 74% and 

(B) 74%

Actual (A) 76% and 

(B) 80%

2012

Target (A) 74% and 

(B) 74%

Actual (A) 75% and 

(B) 78%

2011

Target (A) 74% and 

(B) 74%

Actual (A) 75% and 

(B) 77%

2010

Target (A) 74% and 

(B) 76%

Actual (A) 75% and 

(B) 76%

Target: (A) For the website, exceed average citizen satisfaction rate as published in the ACSI’s E-Government Satisfaction Index.

(B) For the call center, meet or exceed standards for call centers developed by the Citizen Service Levels Interagency Committee.
54 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

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

The FTC protects consumers by enforcing Section 5 of

the FTC Act, which prohibits unfair or deceptive acts 

or practices in or affecting commerce, as well as by 

enforcing a number of statutes and rules proscribing 

specific unlawful practices. The agency initiates civil 

cases, primarily by filing actions in federal court, 

which allege that defendants have violated these laws 

and rules and seek injunctions and other relief. The 

FTC also conducts administrative proceedings.

PERFORMANCE RESULTS

Key Measure 1.2.1 ensures that the FTC successfully 

resolves cases, though it aims to file large, precedent 

setting cases when appropriate, including cases that 

raise challenging legal and factual issues. Performance 

Measure 1.2.2 ensures the agency’s success in 

changing business practices within priority areas and 

demonstrates the change through research methods. 

Performance Measure 1.2.3 ensures that the FTC 

returns redress dollars to consumers as quickly as 

possible. Dollars are considered “designated for 

distribution” when the FTC is in receipt of all funds, 

legal issues are resolved, and a usable claimant list is 

ready. Performance Measure 1.2.4 helps gauge law 

enforcement efforts from an international perspective, 

including continuing to use and further develop 

powers authorized under the Undertaking Spam, 

Spyware, And Fraud Enforcement With Enforcers 

beyond Borders Act of 2006 (US SAFE WEB Act) to

achieve the objective.

KEY MEASURE 1.2.1 

THE PERCENTAGE OF ALL CASES FILED BY THE FTC THAT WERE SUCCESSFULLY 

RESOLVED THROUGH LITIGATION, A SETTLEMENT, OR ISSUANCE OF A DEFAULT 

JUDGMENT. (OUTCOME MEASURE)

**2013

*Target 80.0-90.0%

TARGET MET/EXCEEDED. Of the 144 cases resolved in FY 

2013, 142 were successfully resolved through litigation, a 

settlement, or issuance of a default judgment. At the end 

of FY 2013, an additional 89 cases are unresolved, and 

remained in litigation.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 98.6%

2012

*Target 80.0-90.0%

Actual 100.0%

2011

Target 75.0-85.0%

Actual 100.0%

2010

Target 75.0-85.0%

Actual 99.2%
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 55

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.2.2

THE FTC’S EFFECTIVENESS IN STOPPING PROHIBITED BUSINESS PRACTICES IN THREE 

HIGH PRIORITY AREAS OVER FISCAL YEARS 2009-2013. (OUTCOME MEASURE)

**2013

Target

Statistically 

significant 

decrease in the 

prevalence of 

the practices

TARGET NOT MET. The FTC’s progress on this target is described below.

The three high priority areas fall under the realm of deceptive “green” marketing claims. 

They are stopping false and misleading claims for: bamboo textiles, energy-efficient 

windows, and “zero-VOC” paint. The FTC is currently conducting studies to examine the 

agency’s effectiveness in stopping such misleading advertising claims.

The first study involves websites marketing textiles as being made from bamboo, when 

they actually were made from rayon. The FTC reviewed websites to establish a baseline 

of those marketing “bamboo” textiles, charged four sellers with making false claims about 

their products, and then sent 78 warning letters to companies that continued making 

these claims. In FY 2013, the FTC filed four additional cases against national retailers, 

who paid a total of $1.26 million to resolve allegations they falsely advertised textiles as 

made from bamboo. The FTC captured another sample of websites and is in the process 

of analyzing them to determine whether there has been a decrease in the number of 

misleading claims. The FTC anticipates concluding the study in FY 2014.

The FTC’s second study was completed during FY 2012 and involved energy efficiency 

and cost savings claims for replacement windows. FTC staff created a baseline by 

identifying 29 websites that made deceptive energy and cost savings claims for 

replacement windows. The FTC issued complaints and entered consent orders against 

five of the largest firms that allegedly made these claims. FTC staff then reviewed the 

websites, finding 15 sellers were still making deceptive claims. The FTC issued warning 

letters to those marketers and FTC staff followed those letters with telephone calls. FTC 

staff surveyed the websites again and found that not only has there been a statistically 

significant decrease in the prohibited practices, but the project has put an end to inflated 

energy and cost savings claims for replacement windows on the Internet.

The FTC’s third study examines the agency’s effectiveness in stopping misleading “zeroVOC” or “low-VOC” claims for paint. The FTC created a baseline by attempting to identify 

all paint manufacturers (by searching online and reviewing industry information), and 

evaluating the VOC claims that were made. In FY 2013, the FTC filed lawsuits against 

two of the nation’s leading paint companies, alleging they made misleading zero-VOC 

claims. Although the claim may be true for the uncolored “base” paints, it is not true 

for tinted paint, which typically has much higher levels of the compounds, and which 

consumers usually buy. Based on these cases, the FTC issued a new enforcement policy 

statement regarding VOC-free claims for paint. The statement provides clarification on 

how companies can determine if their VOC-free claims are truthful. The FTC is in the 

process of collecting information about current VOC-free claims to evaluate the agency’s 

effectiveness in the marketplace, and the FTC expects to conclude the study in FY 2014.

** This measure will no longer be reported after FY 2013.

Actual

Statistically 

significant 

decrease in one 

of the three high 

priority areas

2012

Target

Statistically 

significant 

decrease

Actual

Statistically 

significant 

decrease in one 

of the three high 

priority areas

2011

Target

Statistically 

significant 

decrease

Actual Data not 

available

2010

Target

Statistically 

significant 

decrease

Actual Data not 

available
56 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.2.3 

THE PERCENTAGE OF REDRESS CASES IN WHICH THE FTC DISTRIBUTES REDRESS 

DOLLARS DESIGNATED FOR DISTRIBUTION TO CONSUMERS WITHIN SIX MONTHS.

(EFFICIENCY MEASURE)

**2013

Target 90.0%

TARGET MET/EXCEEDED. In FY 2013, in 18 of 19 cases, or 

94.7%, the FTC distributed redress dollars designated for 

distribution to consumers within six months.

** This measure will no longer be reported after FY 2013.

Actual 94.7%

2012

Target 90.0%

Actual 95.0%

2011

Target 90.0%

Actual 100.0%

2010

Target 90.0%

Actual 96.0%

FTC COLLECTS A RECORD FINE FROM A THIRDPARTY DEBT COLLECTOR

In July 2013, the world’s largest debt collection operation, Expert Global Solutions 

and its subsidiaries, agreed to stop harassing consumers with allegedly illegal debt 

collection calls and to pay a $3.2 million civil penalty – the largest ever obtained 

by the FTC against a third-party debt collector. The FTC alleged that the companies 

violated the Fair Debt Collection Practices Act and the FTC Act by using tactics such 

as calling consumers multiple times per day, calling even after being asked to stop, 

calling early in the morning or late at night, calling consumers’ workplaces despite 

knowing that the employers prohibited such calls, and leaving phone messages that 

disclosed the debtor’s name, and the existence of the debt, to third parties. Under 

the order, whenever a consumer disputes the validity or the amount of the debt, 

the defendants must either close the account and end collection efforts, or suspend 

collection until they have conducted a reasonable investigation and verified that their information about the debt is 

accurate and complete. The order also restricts situations in which the defendants can leave voicemails that disclose 

the alleged debtor’s name and the fact that he or she may owe a debt. For more information, visit: www.ftc.gov/

opa/2013/07/nco.shtm. 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 57

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.2.4 

INVESTIGATIONS OR CASES IN WHICH THE FTC OBTAINS FOREIGN-BASED 

EVIDENCE OR ENGAGES IN MUTUAL ASSISTANCE THAT CONTRIBUTES TO FTC LAW 

ENFORCEMENT ACTIONS OR IN WHICH WE COOPERATE WITH FOREIGN AGENCIES 

AND/OR MULTILATERAL ORGANIZATIONS. (OUTPUT MEASURE)

2015 Target 40

TARGET MET/EXCEEDED. In FY 2013, the FTC cooperated 

with its foreign counterparts on consumer protection and 

privacy matters to obtain evidence and other assistance 

for the FTC’s investigations and litigation with numerous 

jurisdictions including Australia, Canada, Colombia, Chile, 

Dominican Republic, El Salvador, Israel, Italy, Jamaica, 

Netherlands, New Zealand, Nigeria, Philippines, Slovakia, 

Spain, the United Kingdom and the European Union. Foreign 

agencies assisted the FTC in activities such as locating 

investigative targets and defendants, obtaining corporate 

records, obtaining witness statements, and providing 

investigative information. The FTC also provided assistance 

to numerous foreign entities. In several instances, the 

information the FTC provided to the foreign entity resulted in 

a parallel proceeding or reciprocal assistance to the FTC. The 

FTC also engaged in mutual assistance with international 

enforcement organizations such as the International 

Consumer Protection Enforcement Network, the Global 

Privacy Enforcement Network, the London Action Plan antispam network, and the International Mass Marketing Fraud 

Network.

2014 Target 40

2013

Target 30

Actual 61

2012

Target 30

Actual 56

2011

Target 30

Actual 53

2010

Target 30

Actual 39
58 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

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 first line of defense against fraud, deception, and 

unfair practices is education. Most of the FTC’s law 

enforcement initiatives include a consumer and/or 

business education component aimed at preventing 

consumer injury and unlawful business practices, 

and mitigating financial losses. Throughout the year, 

the FTC launches various consumer and business 

education campaigns to raise awareness of new or 

emerging marketplace issues that have the potential 

to cause harm. The agency creatively uses new 

technologies and private and public partnerships to 

reach new and under-served audiences, particularly 

those who may not seek information directly from the 

FTC. The FTC will continue to publicize its consumer 

complaint and identity theft website addresses and 

toll-free numbers in an ongoing effort to increase 

public awareness of its activities and inform the public 

of the ways to contact the FTC to obtain information 

or file a complaint.

PERFORMANCE RESULTS

Consumer and business education is crucial to prevent 

and reduce consumer harm. Performance Measure 

1.3.1 ensures that the FTC continue to promote 

educational activity and that the educational materials 

are aimed at new trends and at particularly vulnerable 

populations. Key Measure 1.3.2 ensures that the 

agency’s consumer education websites are effective 

and helpful for consumers. Performance Measure 1.3.3 

ensures that the FTC is publicizing its activities in the 

best way possible and that the agency has a wide array 

of partners to leverage resources.

NATIONAL DO NOT CALL REGISTRY

This year marked the 10th anniversary of the FTC’s National Do Not 

Call Registry, which allows consumers to opt-out of receiving certain 

telemarketing calls. The Registry currently includes over 223 million 

telephone numbers. It is fast and free to register a number and registrations 

never expire. Consumers can register online at www.donotcall.gov, or by 

calling toll-free at 888-382-1222 (TTY 866-290-4236) from the number they 

wish to register. 

The Do Not Call Registry remains one of the government’s most popular programs. Consumers are, however, 

understandably frustrated with the increasing number of robocalls made by scam artists. The FTC has escalated 

its campaign against these illegal robocalls on a number of fronts. The FTC led joint federal-state law enforcement 

efforts, including prosecuting operations allegedly responsible for millions of robocalls – often from “Rachel from 

Cardholder Services” – pitching phony credit card interest rate reductions and other bogus services. The FTC also 

hosted a Robocall Summit that brought together stakeholders to discuss ways to effectively trace illegal calls, 

combat caller ID spoofing, and ultimately stop the calls. In addition, the FTC challenged the public to create an 

innovative technological solution to block illegal robocalls. Out of the nearly 800 eligible submissions to the FTC’s 

Robocall Challenge, two winners tied for the $50,000 prize. Both winning proposals use technology to intercept and 

filter out “blacklisted” robocall numbers and accept “whitelisted” numbers from other callers. For more information, 

visit: www.ftc.gov/opa/2012/11/robocalls.shtm, ftc.gov/bcp/workshops/robocalls/, and www.ftc.gov/opa/2013/04/

robocall.shtm.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 59

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.3.1

CONSUMER PROTECTION MESSAGES ACCESSED ONLINE OR IN PRINT. (OUTPUT 

MEASURE – NUMBERS SHOWN IN MILLIONS)

**2013

Target 50.0

TARGET NOT MET. In FY 2013, the FTC accomplished over 

87% of its target of 50 million messages. Of the over 43.6 

million consumer protection messages accessed, more than 

30.5 million were accessed online, more than 1.3 million 

were accessed via video, and over 11.8 million were print 

publications distributed by the FTC. This figure does not 

take into account the number of national and international 

media outlets (print, video and online that picked up and 

reprinted the agency’s messages for their audiences (e.g., 

the New York Times, Yahoo.com, the Wall Street Journal, etc.). 

Of the messages accessed, free credit report information 

is the most popular. Identity theft materials continue to be 

popular printed titles, followed by credit and online safety 

and security publications.

The Division of Consumer and Business Education (DCBE) 

continues to leverage its limited resources by successfully 

and effectively marketing its materials through partnerships, 

and has simultaneously reduced storage and distribution 

costs through trimming the catalog of titles available in print 

by over 20% in FY 2013 (49 titles withdrawn). The agency 

currently has no way to measure distribution through 

partners or their sites.

** This measure will no longer be reported after FY 2013.

Actual 43.6

2012

Target 50.0

Actual 39.4

2011

Target 50.0

Actual 41.4

2010

Target 50.0

Actual 43.9

2009

Target 55.0

Actual 43.1

2008

Target 50.0

Actual 49.2

2007

Target 45.0

Actual 47.0

2006

Target 25.0

Actual 53.0
60 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY MEASURE 1.3.2 

CUSTOMER SATISFACTION RATE WITH AN FTC CONSUMER EDUCATION WEBSITE OR 

MICROSITE. (OUTCOME MEASURE)

2015 Target

Exceed average citizen satisfaction 

rate as published in the 

E-Government Satisfaction Index TARGET MET/EXCEEDED. In FY 2013, the FTC 

continued to evaluate www.OnGuardOnline.

gov, a joint effort of the federal government and 

the technology industry, created, maintained, 

and marketed by the FTC to help computer 

users guard against Internet fraud, secure 

their computers, and protect their personal 

information. The average citizen satisfaction score 

for participating federal government websites 

was 73%, and the score for www.OnGuardOnline.

gov was 80%. The continued measurement of the 

website over time has allowed the FTC to assess 

the effect of website improvements on customer 

satisfaction.

2014 Target

Exceed average citizen satisfaction 

rate as published in the 

E-Government Satisfaction Index

2013

Target 73.0%

Actual 80.0%

2012

Target 74.0%

Actual 81.0%

2011

Target 74.0%

Actual 81.0%

2010

Target 74.0%

Actual 77.0%
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 61

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.3.3

ORGANIZATIONS REQUESTING CONSUMER EDUCATION PUBLICATIONS. (OUTPUT 

MEASURE)

**2013

*Target 12,300 TARGET NOT MET. In FY 2013, the FTC accomplished 

approximately 91.3% of its target of 12,300 organizations. A 

total of 14,221 customers requested consumer publications, 

including 11,236 unique organizations. DCBE stopped 

producing Net Cetera, which likely reduced the number 

of customers and orders. Nonetheless, in FY 2013 the 

agency did see increased interest in its new publication 

“Safeguarding Your Child’s Future,” a publication about 

child identity theft. Released late in FY 2012, the FTC has 

distributed over a quarter million copies in FY 2013.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 11,236

2012

*Target 12,000

Actual 11,298

2011

Target 11,300

Actual 14,818

2010

Target 11,000

Actual 15,372

PROTECTING MOBILE SOFTWARE SECURITY 

Mobile device manufacturer HTC America agreed to settle FTC charges that the 

company failed to take reasonable steps to secure the software it developed for 

its smartphones and tablet computers, introducing security flaws that placed 

sensitive information about millions of consumers at risk. The FTC charged that 

HTC America failed to employ reasonable and appropriate security practices in 

the design and customization of the software on its mobile devices. Among other 

things, the FTC alleged that HTC America failed to provide its engineering staff 

with adequate security training, failed to review or test the software on its mobile 

devices for potential security vulnerabilities, failed to follow well-known and 

commonly accepted secure coding practices, and failed to establish a process for 

receiving and addressing vulnerability reports from third parties. The settlement requires HTC America to develop 

and release software patches to fix vulnerabilities found in millions of HTC devices. In addition, the settlement 

requires HTC America to establish a comprehensive security program designed to address security risks during the 

development of HTC devices and to undergo independent security assessments every other year for the next 20 

years. For more information, visit: www.ftc.gov/opa/2013/02/htc.shtm.
62 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OBJECTIVE 1.4: ENHANCE CONSUMER 

PROTECTION THROUGH RESEARCH, 

REPORTS, RULEMAKING, AND 

ADVOCACY.

Research, reports, rulemaking and advocacy 

complement law enforcement and education to 

enhance the welfare of consumers.

OUR STRATEGY

The FTC uses a variety of strategies in addition to 

law enforcement and education to enhance consumer 

protection. The agency convenes and co-sponsors 

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 analyze consumer 

protection problems and provide recommendations 

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 consumers and empirical research 

in their decision making. The agency testifies before 

the Congress on consumer protection issues. The FTC 

also files amicus briefs to aid courts’ considerations of 

consumer protection issues.

PERFORMANCE RESULTS

Public policy that enhances consumer protection 

is based on a thorough understanding of complex 

issues, which is obtained through dialogue, study, and 

empirical research. Such policy also recognizes that 

stakeholders other than government, such as industry 

associations or private standard-setting organizations, 

are at times better positioned to address certain 

consumer protection issues. Performance Measures 

1.4.1 through 1.4.3, and Key Measure 1.4.4, allow 

the agency to gauge the success of this objective and 

help ensure that the agency augments its enforcement 

and education efforts. These efforts are furthered by 

encouraging discussions among all interested parties, 

through careful study of and empirical research on 

novel or challenging consumer protection problems, 

by urging adoption of policies and legal principles 

that promote consumers’ interest, and by conducting 

rulemaking as appropriate. These activities help guide 

the FTC’s consumer protection policy decisions, as 

well as those of other state, federal, and international 

policymakers.

FTC FILES ITS FIRST MOBILE PHONE 

“CRAMMING” CASE

The FTC took legal action to shut down an operation that allegedly took in millions 

of dollars by placing unauthorized or “crammed” charges on consumers’ mobile 

phone bills. The April 2013 complaint against Wise Media, LLC and its owners is the 

first FTC case against mobile cramming and part of the agency’s focus on consumer 

protection issues that may arise from the explosive growth of mobile technology. 

The FTC’s complaint alleged that the defendants signed consumers up for so-called 

“premium services” that sent text messages with horoscopes and other information, 

and then placed repeating charges of $9.99 per month on mobile phone bills, without 

consumers’ knowledge or permission. To resolve these charges, the defendants 

agreed to a settlement order that permanently bans them from placing any charges 

on consumers’ telephone bills or assisting anyone else in doing so. The settlements 

include a $10.9 million judgment, which is partially suspended due to the defendants’ inability to pay the full amount. 

For more information, visit: http://www.ftc.gov/news-events/press-releases/2013/11/mobile-crammers-settle-ftccharges-unauthorized-billing. 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 63

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.4.1 

WORKSHOPS AND CONFERENCES CONVENED OR COSPONSORED THAT ADDRESS 

CONSUMER PROTECTION PROBLEMS. (OUTPUT MEASURE)

2015 Target 12

TARGET MET/EXCEEDED. In FY 2013, the FTC exceeded 

its target and convened or cosponsored 12 workshops and 

conferences that addressed consumer protection problems. 

These events brought together approximately 3,417 

participants.

* The target change from “6 workshops and conferences” to “8 

workshops and conferences” took effect for FY 2011 reporting. 

The target will increase to “12 workshops and conferences” 

beginning in FY 2014. 

2014 *Target 12

2013

*Target 8

Actual 12

2012

*Target 8

Actual 14

2011

*Target 8

Actual 14

2010

Target 6

Actual 11

2009

Target 6

Actual 9

2008

Target 6

Actual 16

2007

Target 6

Actual 10

2006

Target N/A

Actual N/A
64 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.4.2 

ADVOCACY COMMENTS AND AMICUS BRIEFS ON CONSUMER PROTECTION ISSUES 

FILED WITH ENTITIES INCLUDING FEDERAL AND STATE LEGISLATURES, AGENCIES, OR 

COURTS. (OUTPUT MEASURE)

**2013

Target 6 TARGET MET/EXCEEDED. In FY 2013, the FTC filed advocacy 

comments on consumer protection issues such as: identity 

theft, product certification seals, effective approaches to 

financial education, attorney advertising, electric utilities, 

and smartphone applications for arranging passenger motor 

vehicle transportation services.

The agency exceeded the target for filing consumer 

protection-related briefs and comments in FY 2013 and 

FY 2012. By contrast, in FY 2011 the agency filed three 

consumer protection-related briefs and comments, and did 

not meet the target. These performance results illustrate 

the unpredictability of the types and number of issues that 

might arise before state and federal government bodies and 

therefore the types of comments and briefs that the agency 

might file in response.

** This measure will no longer be reported after FY 2013.

Actual 12

2012

Target 6

Actual 8

2011

Target 6

Actual 3

2010

Target 6

Actual 6
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 65

PERFORMANCE SECTION

FTC HALTS TRAVEL AND 

TIMESHARE RESALE SCAMS IN 

MULTINATIONAL EFFORT 

Although the economy is improving, many consumers 

are still in tough financial straits and are desperate 

to sell their timeshares. Con artists take advantage 

of consumers’ situations by falsely claiming that they 

have someone ready to buy the property and then 

persuading consumers to pay up-front fees. The FTC 

worked with its law enforcement partners at the federal, 

state, local, and international level to bring 191 actions 

to stop these scams. This concerted effort included 3 

FTC cases, 83 civil actions brought by 28 states, and 

25 actions brought by law enforcement agencies in 

10 other countries. More than 184 individuals face 

criminal prosecution by U.S. Attorneys and local law 

enforcement. In the three FTC cases, federal courts 

halted three operations, Resort Solution Trust, Resort 

Property Depot, and Vacations Communications Group, 

that took more than $18 million from consumers 

throughout the country who were trying to sell their 

timeshare properties. Although the defendants allegedly 

claimed they had buyers for the properties or that the 

timeshares would be sold in a specified time period, at 

most, the defendants provided agreements to “advertise” 

consumers’ timeshare units. For more information, visit:

www.ftc.gov/opa/2013/06/timesharerelease.shtm.
66 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.4.3

THE PERCENTAGE OF RESPONDENTS FINDING THE FTC’S ADVOCACY COMMENTS 

AND AMICUS BRIEFS “USEFUL.” (OUTCOME MEASURE)

**2013

*Target 75.0%

TARGET MET/EXCEEDED. The FTC mails advocacy 

recipients a survey designed to gauge the usefulness of 

agency advocacy comments and amicus briefs. “Usefulness” 

is assessed by the recipient. The target percentage 

recognizes that comments critiquing a recipient’s proposed 

action may not be assessed positively. In FY 2013, 2 of 2 

survey responses classified the FTC’s consumer protection 

submissions as useful.

* Targets for FY12 - FY13 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 100.0%

2012

*Target 75.0%

Actual N/A

2011

Target 50.0%

Actual 100.0%

2010

Target 50.0%

Actual 100.0%

KEY MEASURE 1.4.4 

THE PERCENTAGE OF PROPOSED ADMINISTRATIVE PROCEDURE ACT (APA) 

RULEMAKINGS, CONDUCTED SOLELY BY THE FTC, COMPLETED WITHIN NINE 

MONTHS OF RECEIPT OF FINAL COMMENTS IN THE FINAL NOTICE OF PROPOSED 

RULEMAKING. (EFFICIENCY MEASURE)

**2013

Target 75.0%

There is no data to consider under this measure, as the FTC 

had no APA rulemakings to consider in FY 2013.

** This measure will no longer be reported after FY 2013.

Actual N/A

2012

Target 75.0%

Actual N/A

2011

Target 75.0%

Actual 83.3%

2010

Target 75.0%

Actual 100.0%
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 67

PERFORMANCE SECTION

OBJECTIVE 1.5: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY AND TECHNICAL INPUT 

TO FOREIGN GOVERNMENTS AND 

INTERNATIONAL ORGANIZATIONS TO 

PROMOTE SOUND CONSUMER POLICY.

A myriad of issues—spam, phishing, spyware, 

telemarketing fraud, identity theft, data security, 

and privacy—cross national borders. The resulting 

challenges require the FTC to cooperate with 

counterparts in foreign agencies and international 

organizations.

OUR STRATEGY

To achieve this objective, the FTC pursues the 

development of an international consumer protection 

model that focuses on protecting consumers while 

maximizing economic benefit and consumer choice.

The agency also focuses on understanding cutting-edge issues in technology and globalization that 

present challenges to American consumer interests. 

The agency influences policy development and implementation by advising multilateral organizations, 

regional entities, and foreign government agencies 

through substantive consultations and written comments. Finally, the FTC provides technical assistance 

to newer consumer protection agencies to enhance 

their ability to apply sound consumer protection policies.

PERFORMANCE RESULTS

The FTC uses two measures to assess the performance 

of this objective. Key Measure 1.5.1 and Performance

Measure 1.5.2 address the scope of agency contact

with international counterparts and help determine if 

agency efforts are sufficiently broad-based.

KEY MEASURE 1.5.1

POLICY ADVICE PROVIDED TO FOREIGN CONSUMER PROTECTION AND PRIVACY 

AGENCIES, DIRECTLY AND THROUGH INTERNATIONAL ORGANIZATIONS, THROUGH 

SUBSTANTIVE CONSULTATIONS, WRITTEN SUBMISSIONS, OR COMMENTS. (OUTPUT 

MEASURE)

**2013

*Target 60

TARGET MET/EXCEEDED. In FY 2013, the FTC provided 

policy advice in 61 instances, through consultations, 

presentations, and written comments. New and emerging 

Internet policy and consumer privacy issues are being 

considered both by foreign agencies and by a growing 

range of international organizations. This has sustained a 

strong demand for the FTC’s policy advice and technical 

input on consumer policy and related issues.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 61

2012

*Target 60

Actual 65

2011

Target 40

Actual 52

2010

Target 40

Actual 64
68 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PERFORMANCE MEASURE 1.5.2 

TECHNICAL ASSISTANCE TO FOREIGN CONSUMER PROTECTION AND PRIVACY 

AUTHORITIES. (OUTPUT MEASURE)

**2013

Target 8

TARGET MET/EXCEEDED. In FY 2013, the FTC conducted 11 

technical assistance missions and hosted two international 

Fellows supporting the consumer protection mission. Three 

of the technical assistance missions were funded by the U.S. 

Agency for International Development (USAID), and the 

international Fellows were funded from their home agencies.

** This measure will no longer be reported after FY 2013.

Actual 13

2012

Target 8

Actual 18

2011

Target 8

Actual 15

2010

Target 8

Actual 23

RESOURCES UTILIZED—STRATEGIC GOAL 1

(DOLLARS SHOWN IN MILLIONS.)

2007 2008 2009 2010 2011 2012 2013

Full-Time Equivalents 570 591 597 621 633 625 638

Obligations $ 126 $ 140 $ 152 $ 168 $ 166 $ 161 $ 173

Net Cost $ 105 $ 124 $ 131 $ 144 $ 155 $ 151 $ 151
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 69

PERFORMANCE SECTION

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: TAKE ACTION AGAINST 

ANTICOMPETITIVE MERGERS 

AND PRACTICES THAT MAY CAUSE 

SIGNIFICANT CONSUMER INJURY.

The FTC takes action against mergers and business 

practices that have resulted in, or are likely to result 

in, anticompetitive effects. Agency staff conducts 

thorough factual investigations and applies legal and 

economic analysis to distinguish between actions 

that threaten the operation of free markets and those 

actions that are benign or procompetitive.

PROTECTING COMPETITION IN 

PHARMACEUTICAL AND LABORATORY 

EQUIPMENT MERGERS

The FTC protects competition in health care-related industries 

through its merger reviews which result in law enforcement 

action when needed to keep prices down and quality of 

choice of products and services high. For example, this year 

the FTC successfully challenged the acquisition by Watson 

Pharmaceuticals of Actavis and required the companies to divest 

the rights and assets pertaining to 18 drugs, and relinquish the manufacturing and marketing rights to three others. 

The divestiture protects competition in the markets for these 21 current and future generic drugs, used to treat a 

wide range of conditions, including hypertension, diabetes, attention deficit hyperactivity disorder, and certain 

heart rhythm disorders. For more information, visit: www.ftc.gov/opa/2012/10/watson.shtm. 

In a second case, the FTC required Corning, Inc. to provide assets and assistance to another life sciences company so 

that it could manufacture tissue culture treated dishes, multi-well plates, and flasks, which are used by researchers at 

pharmaceutical and biotechnology companies and universities in their cell culture research. The settlement ensures 

that competition otherwise lost through Corning’s acquisition of Becton, Dickinson and its Discovery Labware 

Division is maintained. For more information, visit: www.ftc.gov/opa/2012/10/corning.shtm. 
70 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OBJECTIVE 2.2: PREVENT CONSUMER 

INJURY THROUGH EDUCATION.

The FTC seeks to prevent anticompetitive activity 

by educating businesses and consumers about 

the antitrust laws and the FTC’s efforts to ensure 

competitive markets.

OBJECTIVE 2.3: ENHANCE CONSUMER 

BENEFIT THROUGH RESEARCH, 

REPORTS, AND ADVOCACY.

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.

OBJECTIVE 2.4: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY RECOMMENDATIONS AND 

TECHNICAL ADVICE TO FOREIGN 

GOVERNMENTS AND INTERNATIONAL 

ORGANIZATIONS TO PROMOTE SOUND 

COMPETITION POLICY.

The FTC continues to build cooperative relationships 

with foreign antitrust agencies to ensure close 

collaboration on cross-border cases and convergence 

toward sound competition policies.

II. STRATEGIC ANALYSIS

OBJECTIVE 2.1: TAKE ACTION AGAINST 

ANTICOMPETITIVE MERGERS 

AND PRACTICES THAT MAY CAUSE 

SIGNIFICANT CONSUMER INJURY.

Taking action against anticompetitive mergers and 

anticompetitive business conduct is the first step in 

effective antitrust enforcement.

OUR STRATEGY

The FTC seeks to identify and take action against 

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 practices that harm, or are 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 

consideration is the need 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. In order to leverage its resources, 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, 

technology, energy, and real estate.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 71

PERFORMANCE SECTION

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, which jointly enforce the HSR 

Act, and wait for a specified period (usually 30 days) 

to allow for antitrust review. FTC staff examines 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 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 to pursue enforcement action 

to block a merger within the timeframe set out by the 

HSR Act and rules.

ANOTHER VICTORY FOR THE FTC AND 

CONSUMERS ON THE STATE ACTION 

DOCTRINE

In May 2013, the United States Court of Appeals for the Fourth 

Circuit upheld the FTC’s determination that The North Carolina 

State Board of Dental Examiners (“Dental Board”) unlawfully 

prohibited non-dentists from providing teeth whitening services 

and was not immune from antitrust liability under the state 

action doctrine.

In 2010, the FTC issued an administrative complaint, alleging that the North Carolina Dental Board had violated 

antitrust laws by engaging in activities to prevent non-dentists from providing teeth whitening services in the 

state, including issuing “cease and desist” letters to non-dentists engaged in the practice, and discouraging some 

shopping centers from leasing space to non-dentists providing teeth-whitening services.

After an administrative trial, the FTC ruled that the Dental Board’s conduct illegally thwarted lower-priced 

competition. The Board had claimed that it was exempt from the federal antitrust laws under the state action 

doctrine. The FTC disagreed, reasoning that because the Dental Board was controlled by practicing dentists 

and was not actively supervised by the state, the antitrust laws apply to the Dental Board’s conduct. The Fourth 

Circuit upheld that conclusion.

FTC Chairwoman Edith Ramirez noted that the Court’s ruling was a victory for consumers, stating: “We are 

pleased that the Fourth Circuit agreed that a state regulatory board dominated by self-interested private 

actors cannot shield its anticompetitive conduct from antitrust review using the state action doctrine. This 

decision, as did the Supreme Court’s unanimous decision in FTC v. Phoebe Putney earlier this year, recognizes 

that exemptions to the antitrust laws are to be applied narrowly and that consumers are best off when there is 

vigorous competition.” For more information, visit: www.ftc.gov/opa/2013/06/ncdental.shtm. 
72 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

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 cost efficient 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. 

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. 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 attorneys to 

notify the FTC of possible anticompetitive mergers.

NONMERGER ACTIVITIES

In the nonmerger area, agency staff reviews 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 identify 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 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.

In nonmerger matters, the FTC seeks to take action 

against ongoing activity that harms competition. The 

FTC 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 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 73

PERFORMANCE SECTION

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 FTC 

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.

PERFORMANCE RESULTS

The key performance measure under this objective 

relates to actions taken in a significant percentage 

of substantial merger and nonmerger investigations. 

This translates into obtaining a positive result (i.e., 

litigated victories, consent orders, or abandoned 

transactions (the latter for mergers only)) in 40 to 

60 percent of investigations that involved a second

request or compulsory process, in the case of merger 

investigations, or which involved at least 150 hours

of investigative effort, in the case of nonmerger 

investigations.

Success on this key outcome measure 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. This measure evaluates appropriate 

investigation, case selection, and resolution, as well as 

the crafting of sufficient and effective remedies.

The target range of 40 to 60 percent set for key

Performance Measure 2.1.1 reflects the reality that 

the FTC conducts substantial merger and nonmerger 

investigations when it believes that a merger or 

conduct may be anticompetitive, but that not all such 

investigations should lead to an enforcement action or 

a positive result. Indeed, the existence of a minimum 

and maximum value recognizes the possibility that 

the FTC may find itself under- or over-enforcing 

the competition laws, while the magnitude of the 

spread between these two values serves to identify a 

band within which the agency’s performance can be 

reasonably expected to vary. From this perspective, 

setting the range at too high a level could be 

detrimental if the effect were to deter the agency from 

bringing important, but risky, cases, while setting the 

range at too low a level could be detrimental as well, 

if the effect were to incentivize the agency to bring 

marginal cases.

Of the remaining measures under this objective, six 

relate directly to Performance Measure 2.1.1 in that 

they measure the impact of the agency’s actions, in 

terms of the magnitude of the affected markets and the 

associated consumer benefits, as well as the efficiency 

with which these same actions were undertaken. 

Whereas the consumer savings measures are designed 

to assess the ultimate outcome, or impact, of the 

FTC’s actions in protecting consumers and promoting 

vigorous competition, by quantifying the impact of the 

FTC’s enforcement actions on consumer welfare, the 

volume of commerce measures are intended to give an 

indication of the economic significance of the relevant 

product markets.

For both merger and nonmerger actions, the FTC 

measures the volume of commerce and estimates 

consumer savings in markets in which it obtains a 

positive result as an indicator of the scope of the FTC’s 

antitrust enforcement activities. External factors, such 

as level of merger activity, and internal ones, such as 

the duration of nonmerger investigations, may cause 

these results to fluctuate significantly from year to 

year. Consequently, the two volume-of-commerce 

targets (Performance Measures 2.1.3 and 2.1.6) and the

two consumer savings targets (Performance Measures 

2.1.2 and 2.1.5) are assessed each year by calculating
74 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

the average of current year plus the previous four 

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 2.1.4 and 2.1.7).

The final measure under this objective addresses 

the international dimension of the agency’s law 

enforcement efforts by tracking the percentage of cases 

in which the FTC had at least one substantive contact 

with a foreign antitrust authority in which the agencies 

followed consistent analytical approaches and reached 

compatible outcomes.

THE FTC CHALLENGES ANTICOMPETITIVE 

HOSPITAL MERGERS

The FTC has redoubled its efforts to prevent hospital mergers that may leave 

insufficient local options for inpatient hospital services, leading to higher prices 

for health care. For example, in late 2012, the FTC challenged Reading Health 

System’s proposed acquisition of Surgical Institute of Reading, L.P., alleging that 

the combination of the two health care providers would substantially reduce 

competition in the Reading, Pennsylvania area and lead to reduced quality and 

higher health care costs for the area’s employers and residents. Shortly after the 

FTC filed its administrative complaint, the parties abandoned the transaction. 

For more information, visit: www.ftc.gov/opa/2012/11/reading.shtm. 

In February 2013, the United States Supreme Court unanimously ruled for the 

FTC in FTC v. Phoebe Putney, reviving the FTC’s administrative challenge to a 

hospital merger resulting in a monopoly for general acute-care inpatient services in the Albany, Georgia area. The 

Court held that the Georgia legislature did not articulate a clear policy that hospital authorities could eliminate 

competition through a hospital merger merely by conferring general corporate powers on the local hospital 

authority (www.ftc.gov/opa/2013/02/phoebe.shtm). The ruling has broad implications for antitrust enforcement 

because it clarifies and tightens the test for determining when state action immunity applies to anticompetitive 

actions by non-sovereign state actors.

In August 2013, the case was settled. The proposed consent agreement includes provisions to aid competition 

in the local markets, requiring the defendants to notify the FTC of any future acquisition and prohibiting the 

defendants from opposing competing hospitals’ request for state certification to enter the local markets. 

Although divestiture is the FTC’s preferred remedy to restore competition lost due to an unlawful merger, 

divestiture was impossible in this consummated merger due to Georgia’s Certificate of Need laws. The proposed 

consent thus uses the most effective means available to address the FTC’s competitive concerns, given the 

unique circumstances presented by Georgia’s laws and regulations. For more information, visit: www.ftc.gov/

opa/2013/06/phoebe.shtm. 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 75

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KEY MEASURE 2.1.1 

ACTIONS TO MAINTAIN COMPETITION, INCLUDING LITIGATED VICTORIES, CONSENT 

ORDERS, ABANDONED TRANSACTION REMEDIES, RESTRUCTURED TRANSACTION 

REMEDIES, OR FIX-IT-FIRST TRANSACTION REMEDIES IN A SIGNIFICANT PERCENTAGE 

OF SUBSTANTIAL MERGER AND NONMERGER INVESTIGATIONS. (OUTCOME MEASURE)

2015 Target 40.0–60.0%

TARGET MET/EXCEEDED. The agency took action successfully in 27 of the 64 substantial 

merger and nonmerger investigations that were closed in FY 2013. These 27 actions consist 

of 20 consent orders, 2 merger transactions that were withdrawn or restructured as a 

consequence of the antitrust concerns raised during the investigation, 2 cases in which the 

agency filed complaints and ultimately accepted consent orders to resolve the litigation, 2 

cases in which the agency filed complaints and the parties abandoned the transaction, and 

1 matter won on appeal. 

The 23 successful merger actions include successful second request or compulsory process 

investigations in matters involving, for example, pharmaceuticals and laboratory equipment 

(Watson/Actavis, Actavis/Warner Chilcott, Mylan/Agila and Corning/Becton, Dickinson), 

hospitals and other healthcare facilities (Phoebe Putney/Palmyra, Reading Hospital/Surgical 

Institute of Reading, Universal Health Services/Ascend Health, and Capella Healthcare/St. 

Joseph’s Mercy Health System), high technology (Integrated Device/PLX and Honeywell/

Intermec), manufacturing (Polypore/Daramic, Magnesium Elektron/Revere Graphics, and 

Robert Bosch/SPX) and energy (Tesoro/Chevron Northwest Products Pipeline) mergers.

On the nonmerger side, the FTC took successfully took four actions against anticompetitive 

tactics that the FTC had reason to believe harmed consumers. In FY 2013, the FTC issued a 

settlement order prohibiting IDEXX (the U.S.’s largest supplier of diagnostic testing products 

used by small animal veterinarians) from maintaining concurrent exclusive distribution 

agreements with all three top tier distributors for the next 10 years. The FTC settled charges 

against eight independent nephrologists in Puerto Rico that the doctors illegally collectively 

bargained with insurers and refused to treat health plan patients when the doctors’ price 

demands were rebuffed. In another conduct case, the FTC required Google to license on fair, 

reasonable, and non-discriminatory terms patents that it had acquired in its acquisition of 

Motorola Mobility. Also, in FY 2013 the FTC settled its charges that Bosley, Inc., the nation’s 

largest manufacturer of medical/surgical hair restoration procedures, had illegally exchanged 

competitively sensitive, nonpublic information about its business practices with one of 

its competitors, Hair Club. In ongoing litigation, the Supreme Court held in FTC v. Actavis 

that pay-for-delay agreements between brand and generic pharmaceutical companies are 

subject to antitrust scrutiny, thus reversing a lower court’s dismissal of the FTC’s case. The 

matter can now proceed to trial.

Of the 37 substantial investigations that were closed without an action, 24 involved a 

nonmerger matter and 13 a merger matter.

2014 Target 40.0–60.0%

2013

Target 40.0–60.0%

Actual 42.2%

2012

Target 40.0–60.0%

Actual 43.1%

2011

Target 40.0–60.0%

Actual 34.1%4

2010

Target 40.0–60.0%

Actual 40.0%5

4 This is a correction to results reported in the FY 2011 PAR. The results should have been based on 15 out of 44 cases, or 34%. The FY 2011

PAR reports actuals on 14 of 44 cases, or 32%.

5 This is a correction to results reported in the FY 2010 PAR. The results should have been based on 23 out of 58 cases, or 40%. The FY 2010

PAR reports actuals on 22 of 57 cases, or 39%.
76 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

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PERFORMANCE MEASURE 2.1.2 

CONSUMER SAVINGS OF AT LEAST $500 MILLION THROUGH MERGER ACTIONS TO 

MAINTAIN COMPETITION. (OUTCOME MEASURE – NUMBERS SHOWN IN MILLIONS)

2015 Target $500.0

TARGET MET/EXCEEDED. In FY 2013, the FTC has saved 

consumers an estimated $564.2 million through its merger 

actions to maintain competition.

2014 Target $500.0

2013

Target $500.0

Actual $564.2

2012

Target $500.0

Actual $504.9

2011

Target $500.0

Actual $532.26

2010

Target $500.0

Actual $586.0

2009

Target $500.0

Actual $791.0

2008

Target $500.0

Actual $360.0

2007

Target $500.0

Actual $805.0

2006

Target N/A

Actual N/A

6 This is a correction to results reported in the FY 2011 PAR. The results should have been based on a savings of $532.2 (million). The FY

2011 PAR reports savings of $531.5 (million).
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 77

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PERFORMANCE MEASURE 2.1.3 

ACTIONS AGAINST MERGERS LIKELY TO HARM COMPETITION IN MARKETS WITH A 

TOTAL OF AT LEAST $25 BILLION IN SALES. (OUTCOME MEASURE – NUMBERS SHOWN 

IN BILLIONS)

**2013

Target $25.0 TARGET NOT MET. The FTC’s positive merger results affected 

markets in which the total estimated volume of commerce 

was approximately $21.0 billion, or 84% of the annual 

target. During FY 2013, the FTC obtained litigated victories, 

consent orders, or the parties abandoned the transactions 

in 14 merger matters. Specifically, one matter was won on 

appeal, 10 consent agreements were put in place, and three 

transactions were either abandoned or restructured based 

on the antitrust concerns raised by staff during the course 

of the investigation. 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.

The agency did not meet the target in FY 2013 because 

several significant matters are still pending before a judge, 

so they are excluded from this measure even though they 

represent a significant investment of agency resources. 

Specifically, the Commission issued one administrative 

complaint and filed one complaint in federal court 

challenging acquisitions that it had reason to believe were 

anticompetitive. Also, one merger case filed in a previous 

year remains in litigation.

** This measure will no longer be reported after FY 2013.

Actual $21.0

2012

Target $25.0

Actual $20.2

2011

Target $25.0

Actual $22.7

2010

Target $25.0

Actual $22.5

2009

Target $25.0

Actual $22.3

2008

Target $25.0

Actual $14.9

2007

Target $25.0

Actual $42.6

2006

Target $40.0

Actual $13.4
78 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

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PERFORMANCE MEASURE 2.1.4 

CONSUMER SAVINGS OF AT LEAST 13 TIMES THE AMOUNT OF FTC RESOURCES 

ALLOCATED TO THE MERGER PROGRAM. (EFFICIENCY MEASURE)

2015 Target 1,300.0%

TARGET MET/EXCEEDED. During FY 2013, the agency saved 

consumers over 13 times the amount of resources devoted 

to the merger program. This result is in large part determined 

by the presence of several enforcement actions over the last 

four years in the pharmaceutical industry, which involved 

significantly sized relevant product markets.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

2014 *Target 1,300.0%

2013

*Target 1,300.0%

Actual 1,382.2%

2012

*Target 1,300.0%

Actual 1,492.4%

2011

Target 600.0%

Actual 1,419.0%7

2010

Target 600.0%

Actual 1,670.0%

2009

Target 600.0%

Actual 2,132.0%

2008

Target 600.0%

Actual 1,121.0%

2007

Target 600.0%

Actual 2,500.0%

2006

Target N/A

Actual N/A

7

This is a correction to results reported in the FY 2011 PAR. The results should have been based on a savings of $532.2 (million), or 1,419%.

The FY 2011 PAR reports savings of $531.5 (million), or 1,417%.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 79

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PERFORMANCE MEASURE 2.1.5 

CONSUMER SAVINGS OF AT LEAST $450 MILLION THROUGH NONMERGER ACTIONS 

TAKEN TO MAINTAIN COMPETITION. (OUTCOME MEASURE – NUMBERS SHOWN IN 

MILLIONS)

2015 Target $80.0

TARGET NOT MET. In FY 2013, the FTC obtained estimated 

savings to consumers of approximately $449.8 million 

through nonmerger actions taken to maintain competition.

In FY 2011 and FY 2010, the agency exceeded the target on 

this measure by more than 455%, and 533% respectively. The 

reason that the agency exceeded the target by such a large 

margin is attributable to one particular case, which involved 

Intel Corporation, the world’s leading computer chip maker, 

which was charged with illegally using its dominant market 

position for a decade to stifle competition and strengthen 

its monopoly. The targets for FY 2012 through FY 2014 were 

modified in response to the agency greatly exceeding the 

target due to this case. Targets for future years have been 

adjusted based on prior year results and expected future 

performance. The effect attributable to the Intel case in FY 

2010 will expire by FY 2015.

Additionally, nonmerger/conduct cases historically take a 

longer time than merger cases to investigate and bring to 

a final enforcement action. For example, we are currently in 

the midst of litigation in four nonmerger cases which did not 

conclude in FY 2013. 

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

2014 *Target $440.0

2013

*Target $450.0

Actual $449.8

2012

*Target $450.0

Actual $439.8

2011

Target $80.0

Actual $444.9

2010

Target $80.0

Actual $508.0

2009

Target $80.0

Actual $188.0

2008

Target $80.0

Actual $28.0

2007

Target $80.0

Actual $75.0

2006

Target N/A

Actual N/A
80 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

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PERFORMANCE MEASURE 2.1.6 

ACTIONS AGAINST ANTICOMPETITIVE CONDUCT IN MARKETS WITH A TOTAL OF AT 

LEAST $12 BILLION IN ANNUAL SALES. (OUTCOME MEASURE – NUMBERS SHOWN IN 

BILLIONS)

**2013

*Target $12.0

TARGET MET/EXCEEDED. The FTC’s positive nonmerger 

results affected markets in which the total estimated volume 

of commerce was approximately $13 billion. During FY 2013, 

the FTC obtained litigated victories or consent orders in four 

nonmerger matters.

In FY 2011 and FY 2010, the agency exceeded the target on 

this measure by more than 45% each year. As mentioned 

under Performance Measure 2.1.5, the reason the agency 

had exceeded the target by so wide a margin is in large 

part attributable to one particular case, which involved Intel 

Corporation. The targets for FY 2012 through FY 2014 were 

modified in response to the agency greatly exceeding the 

target due to this case.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual $13.1

2012

*Target $12.0

Actual $11.7

2011

Target $8.0

Actual $11.6

2010

Target $8.0

Actual $11.7

2009

Target $8.0

Actual $14.6

2008

Target $8.0

Actual $0.4

2007

Target $8.0

Actual $2.6

2006

Target $20.0

Actual $1.4
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 81

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PERFORMANCE MEASURE 2.1.7 

CONSUMER SAVINGS OF AT LEAST 20 TIMES THE AMOUNT OF FTC RESOURCES 

ALLOCATED TO THE NONMERGER PROGRAM. (EFFICIENCY MEASURE)

2015 Target 400.0% TARGET MET/EXCEEDED. During FY 2013, the agency saved 

consumers approximately 23 times the amount of resources 

it devoted to the nonmerger enforcement program. As 

mentioned under Performance Measure 2.1.5, the reason 

the agency had previously exceeded the target in FY 2011 

and FY 2010 by so wide a margin is in large part attributable 

to one particular case, which involved Intel Corporation. 

The targets for FY 2012 through FY 2014 were modified in 

response to the agency greatly exceeding the target due to 

this case.

Additionally, as mentioned in Measure 2.1.5, nonmerger/

conduct cases historically take a longer period of time then 

merger cases to investigate and bring to a final enforcement 

action. For example, we are currently in the midst of 

litigation in four nonmerger cases which did not conclude in 

FY 2013.

Targets for future years have been adjusted based on prior 

year results and expected future performance. The effect 

attributable to the Intel case in FY 2010 will expire by FY 

2015.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

2014 *Target 1,850.0%

2013 *Target 2,000.0%

Actual 2,296.0%

2012 *Target 2,000.0%

Actual 1,831.7%

2011 Target 400.0%

Actual 1,917.7%

2010 Target 400.0%

Actual 2,418.0%

2009 Target 400.0%

Actual 1,035.0%

2008 Target 400.0%

Actual 164.0%

2007 Target 400.0%

Actual 424.0%

2006 Target N/A

Actual N/A

SCRUTINIZING ENERGY MERGERS

The FTC is committed to promoting competition in the 

energy sector. In June 2013, the FTC issued a consent 

order resolving charges that Tesoro Corporation’s $335 

million acquisition of Chevron Corporation’s Northwest 

Products Pipeline system and associated terminals would 

be anticompetitive, harming competition in the market for 

refined light petroleum products terminaling services in the 

Boise, Idaho area. Refined light petroleum products include 

gasoline, diesel fuel, and jet fuel. The order required Tesoro 

to sell a refined light petroleum products terminal in Boise 

to preserve competition. For more information, visit: www.ftc.gov/opa/2013/06/tesoro.shtm.
82 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

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PERFORMANCE MEASURE 2.1.8 

THE PERCENTAGE OF CASES IN WHICH THE FTC HAD AT LEAST ONE SUBSTANTIVE 

CONTACT WITH A FOREIGN ANTITRUST AUTHORITY IN WHICH THE AGENCIES 

FOLLOWED CONSISTENT ANALYTICAL APPROACHES AND REACHED COMPATIBLE 

OUTCOMES. (OUTPUT MEASURE)

2015 Target 95.0%

TARGET MET/EXCEEDED. In FY 2013, the FTC had 24 

substantive contacts in 17 enforcement matters with the 

following counterpart agencies around the world: Australia, 

Brazil, Canada, the European Union, Germany, Mexico and 

Russia. Those agencies reached compatible outcomes in 

the 9 cases that were completed within the fiscal year. While 

the FTC will continue to strive for 100% success, the target 

reflects the possibility of inconsistent outcomes, particularly 

as new antitrust agencies begin to assert their jurisdiction. 

2014 Target 95.0%

2013

Target 90.0%

Actual 100.0%

2012

Target 90.0%

Actual 100%

2011

Target 90.0%

Actual 100.0%

2010

Target 90.0%

Actual 100.0%
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 83

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OBJECTIVE 2.2: PREVENT CONSUMER 

INJURY THROUGH EDUCATION.

In addition to its law enforcement activity, the FTC 

provides substantial information to the business 

community and consumers about 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, 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 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, speeches, hearings, and workshops (such 

as the workshop on patent assertion entity activities); 

advisory opinions; and reports (such as the reports on 

the ethanol market).

As a complement to the FTC enforcement activity, 

the agency also advises, when asked, other federal and 

state government officials about the possible effects 

that various regulatory and legislative 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, the FTC continues to publish 

reference and case-related documents. Another way 

the FTC achieves this goal is to improve how topical 

information, case materials, and reference documents 

are organized on its web site in an effort to aid visitors 

in searching for and finding relevant information and 

to continuously update the growing body of reference 

material.

PERFORMANCE RESULTS

The FTC uses one measure to assess its performance 

in preventing consumer injury through education. 

The key measure (Performance Measure 2.2.1) tracks 

the volume of traffic on the FTC website on antitrustrelated pages that are relevant to policymakers, the 

business and legal communities, and the public at 

large. This performance measure is an indicator of the 

flow of information provided to the public. Successful 

outreach and education efforts, as reflected by this 

measure, will help consumers, because increased 

knowledge and understanding of the antitrust laws 
84 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

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will help businesses stay in compliance. This measure 

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 this measure would seem to 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.

KEY MEASURE 2.2.1 

COMPETITION RESOURCES ACCESSED VIA THE FTC’S WEBSITE. (OUTPUT MEASURE – 

NUMBERS SHOWN IN MILLIONS)

**2013

*Target 24.0

TARGET MET/EXCEEDED. During FY 2013, the FTC’s online 

competition resources registered over 44.1 million hits. 

These resources include pages that relate to individual 

investigations (such as complaints, orders, comments, and 

press releases), policy and research oriented content (such 

as reports, policy guides, and fact sheets, workshop or 

conference webpages, the online competition enforcement 

database, advocacy filings, and amicus briefs), and business 

and consumer education material. The use by the FTC of 

social media, including Twitter and Facebook, has driven 

more traffic than expected to certain competition related 

pages, including the FTC’s early termination notices. The 

agency did not account for the rapid growth in these tools 

when it set the target for this measure.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 44.1

2012

*Target 24.0

Actual 23.2

2011

Target 10.0

Actual 22.6

2010

Target 10.0

Actual 21.5

2009

Target 15.0

Actual 11.9

2008

Target 15.0

Actual 12.5

2007

Target 15.0

Actual 15.7

2006

Target 10.0

Actual 10.6
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 85

PERFORMANCE SECTION

OBJECTIVE 2.3: ENHANCE 

CONSUMER BENEFIT THROUGH 

RESEARCH, REPORTS, AND 

ADVOCACY.

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 goal 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. And finally, 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 FTC 

also files amicus briefs to aid courts’ considerations of 

consumer protection issues.

PERFORMANCE RESULTS

The key measures used to gauge the FTC’s 

success under this objective are the ones relating 

to conducting public hearings, conferences, and 

workshops (Performance Measure 2.3.1), issuing 

reports and studies on competition related issues 

(Performance Measure 2.3.2), and making advocacy 

filings (Performance Measure 2.3.3). These measures, 

in conjunction with Performance Measures 2.3.4, 

and 2.3.5, help to ensure that the agency is engaging

in appropriate types and sufficient levels of research, 

reports, and advocacy 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.
86 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY MEASURE 2.3.1 

WORKSHOPS, SEMINARS, CONFERENCES, AND HEARINGS CONVENED OR 

COSPONSORED THAT INVOLVE SIGNIFICANT COMPETITION-RELATED ISSUES. 

(OUTPUT MEASURE)

2015 Target 4 TARGET MET/EXCEEDED. During FY 2013, the FTC held 

four competition and economics-related conferences. 

One event was the Pet Medications Workshop held in 

October 2012. The workshop examined competition and 

consumer protection issues in the pet medications industry. 

Workshop participants, including veterinarians, pharmacists, 

economists, lawyers, and others, discussed how current 

industry distribution and other business practices affect 

consumer choice and price competition for pet medications.

Another event was a joint conference with the Department 

of Justice’s Antitrust Division held in December 2012 

examining the impact of patent assertion entity activity on 

innovation and competition.

The FTC’s Microeconomics Conference, held annually in 

November, brings together scholars and leaders from 

universities throughout the world, other government 

agencies, and other organizations to discuss antitrust, 

consumer protection, and policy issues which FTC 

economists encounter in their work. The Conference 

included discussions of structural models in applied 

industrial organization and the economics of hospital 

competition.

Finally, the FTC hosted a forum on using enforceable industry 

codes of conduct to protect consumers in cross-border 

commerce, which included a discussion of the antitrust 

implications of such codes.

2014 Target 4

2013

Target 4

Actual 4

2012

Target 4

Actual 3

2011

Target 4

Actual 4

2010

Target 4

Actual 6

2009

Target 4

Actual 8

2008

Target 4

Actual 5

2007

Target 4

Actual 7

2006

Target N/A

Actual N/A
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 87

PERFORMANCE SECTION

KEY MEASURE 2.3.2 

REPORTS AND STUDIES ISSUED ON KEY COMPETITION-RELATED TOPICS. (OUTPUT 

MEASURE)

2015 Target 8

TARGET MET/EXCEEDED. During FY 2013, the FTC 

published working papers on how mergers affect 

competition in grocery retailing; the structural evolution of 

the dialysis industry with a focus on differences between 

for profit and nonprofit clinics; and the effect of entry on 

generic drug prices. The FTC also published an annual report 

on concentration in the ethanol industry and the HartScott-Rodino Annual Report on the premerger notification 

program and merger enforcement.

2014 Target 8

2013

Target 8

Actual 14

2012

Target 8

Actual 9

2011

Target 8

Actual 11

2010

Target 8

Actual 9

2009

Target 8

Actual 20

2008

Target 8

Actual 7

2007

Target 8

Actual 18

2006

Target N/A

Actual N/A
88 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY MEASURE 2.3.3 

ADVOCACY COMMENTS AND AMICUS BRIEFS ON COMPETITION ISSUES FILED WITH 

ENTITIES INCLUDING FEDERAL AND STATE LEGISLATURES, AGENCIES OR COURTS. 

(OUTPUT MEASURE)

**2013

*Target 10

TARGET MET/EXCEEDED. In FY 2013, the FTC filed advocacy 

comments and amicus briefs on competition issues such as: 

pay-for-delay pharmaceutical patent settlements; standard 

essential patents; the regulation of certified registered 

nurse anesthetists and advanced practice registered nurses; 

taxicab licensing; and smartphone applications for arranging 

passenger motor vehicle transportation services.

The target for filing competition-related briefs and 

comments was increased to ten in FY 2012. The agency 

exceeded the FY 2012 and FY 2013 targets as well. These 

performance results illustrate the unpredictability of the 

types of and number of competition issues that might arise 

before federal and state government bodies and therefore 

the types of comments and briefs that the agency might file 

in response.

* Targets for FY12 - FY13were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 19

2012

*Target 10

Actual 18

2011

Target 6

Actual 16

2010

Target 6

Actual 17
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 89

PERFORMANCE SECTION

PERFORMANCE MEASURE 2.3.4 

THE PERCENTAGE OF RESPONDENTS FINDING THE FTC’S ADVOCACY COMMENTS 

AND AMICUS BRIEFS “USEFUL.” (OUTCOME MEASURE)

**2013

*Target 75.0%

TARGET MET/EXCEEDED. The FTC mails advocacy recipients 

a survey designed to gauge the usefulness of agency 

advocacy comments and amicus briefs. “Usefulness” is 

assessed by the recipient. The target percentage recognizes 

that comments critiquing a recipient’s proposed action 

may not be assessed positively. In FY 2013, 2 of 2 survey 

responses classified the FTC’s competition submissions as 

useful.

* Targets for FY12 - FY13 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 100.0%

2012

*Target 75.0%

Actual 83.3%

2011

Target 50.0%

Actual 100.0%

2010

Target 50.0%

Actual 100.0%

PROMOTING COMPETITION IN 

TECHNOLOGY SECTORS

The FTC aims to promote competition and prevent 

anticompetitive business practices and mergers in technology 

sectors. For example, in December 2012, the FTC issued an 

administrative complaint seeking to stop Integrated Device 

Technology’s proposed acquisition of PLX Technology. The FTC 

alleged that the merger would have given the combined firm a 

near-monopoly in a market for integrated computer circuit switch technology, leading to higher switch prices, less 

innovation, and reduced customer service. Integrated Device Technology and PLX abandoned the transaction in 

light of the FTC’s challenge.

In January 2013, the FTC took action to stop Google’s alleged misuse of standard essential patents (“SEPs”). 

Specifically, the FTC alleged that Google violated commitments made to certain standard setting organizations to 

license patents essential to implementing several technology standards on fair, reasonable, and non-discriminatory 

(“FRAND”) terms to any interested manufacturer. The “SEPs” at issue were held initially by Motorola Mobility and 

covered technologies essential to interoperability standards used in a variety of popular mobile devices, including 

smartphones and tablets. The FTC alleged that Motorola Mobility and then Google (after it acquired Motorola 

Mobility and its patent portfolio) refused to license the SEPs on FRAND terms after manufacturers had developed 

standard compliant products in reliance on those commitments. To settle the charges, Google agreed to offer a 

FRAND license to any company that would like to license Google’s SEPs in the future and to follow the procedures 

outlined in the FTC’s consent order to resolve any FRAND-related licensing disputes. For more information, visit: 

www.ftc.gov/opa/2013/01/google.shtm.
90 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PERFORMANCE MEASURE 2.3.5 

THE VOLUME OF TRAFFIC ON WWW.FTC.GOV RELATING TO COMPETITION 

RESEARCH, REPORTS, AND ADVOCACY. (OUTPUT MEASURE – NUMBERS SHOWN IN 

MILLIONS)

**2013

Target 1.7

TARGET MET/EXCEEDED. This performance measure relates 

to the volume of traffic on the FTC’s web pages that relate 

to competition research, reports, and advocacy. In FY 2013, 

approximately 3.9 million hits met the criteria set by this 

measure.

** This measure will no longer be reported after FY 2013.

Actual 3.9

2012

Target 1.7

Actual 3.4

2011

Target 1.7

Actual 1.8

2010

Target 1.7

Actual 2.2

2009

Target 1.1

Actual 1.6

2008

Target 1.1

Actual 1.2

2007

Target 1.1

Actual 1.1

2006

Target N/A

Actual N/A
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 91

PERFORMANCE SECTION

OBJECTIVE 2.4: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY RECOMMENDATIONS AND 

TECHNICAL ADVICE TO FOREIGN 

GOVERNMENTS AND INTERNATIONAL 

ORGANIZATIONS TO PROMOTE SOUND 

COMPETITION POLICY.

The FTC seeks more effective, coordinated reviews of 

multijurisdictional mergers, and is working towards 

achieving consistent outcomes in cases of potential 

unilateral anticompetitive conduct.

OUR STRATEGY

To achieve this objective, the agency participates in 

multilateral competition organizations, which provides 

valuable opportunities to promote international 

cooperation and convergence and for competition 

officials to share insights on law enforcement 

and policy initiatives. The FTC also pursues the 

development of an international market-based 

competition model that focuses on the maximization 

of consumer benefit. The agency influences policy 

development and implementation by advising 

multilateral organizations, regional entities, and 

foreign government agencies through substantive 

consultations and written comments. And finally, 

the FTC provides technical assistance to newer 

competition agencies to enhance their ability to apply 

sound competition policies.

PERFORMANCE RESULTS

The FTC uses two performance measures to assess 

performance for this objective. Key Measure 2.4.1 

and Performance Measure 2.4.2 address the scope of 

our contact with international counterparts and help 

determine if our efforts are sufficiently broad-based.

KEY MEASURE 2.4.1 

POLICY ADVICE PROVIDED TO FOREIGN COMPETITION AGENCIES, DIRECTLY 

AND THROUGH INTERNATIONAL ORGANIZATIONS, THROUGH SUBSTANTIVE 

CONSULTATIONS, WRITTEN SUBMISSIONS, OR COMMENTS. (OUTPUT MEASURE)

**2013

*Target 60 TARGET MET/EXCEEDED. In FY 2013, the FTC provided 

policy advice to foreign competition agencies in over 100 

instances through consultations, written submissions, or 

comments. The FTC’s policy advice remains highly regarded 

and sought after by new and more experienced competition 

agencies and by participants in international competition 

organizations and conferences.

* Targets for FY12 - FY14 were increased based on projected 

future performance as reported in the FTC’s FY 2012 Strategic 

Plan Addendum.

** This measure will no longer be reported after FY 2013.

Actual 100

2012

*Target 60

Actual 146

2011

Target 40

Actual 112

2010

Target 40

Actual 76
92 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

PATENT ASSERTION ENTITIES

The FTC is playing a role in advancing greater understanding of the 

impact of patent assertion entity (“PAE”) activity on innovation and 

competition. PAE activity focuses primarily on purchasing patents 

from existing owners and making money by licensing the intellectual 

property to – or litigating against – manufacturers and users who 

are already using the patented technology. Supporters of the PAE 

business model assert that it facilitates the transfer of patent rights, 

rewards inventors, and funds ongoing research and development 

efforts. Critics, however, describe adverse effects on competition and innovation, including increased costs and a lack 

of technology transfer, ultimately taxing consumers and industry.

In December 2012, the FTC and the Antitrust Division of the United States Department of Justice held a joint 

workshop and invited written comments from the public on PAE activity. The joint PAE workshop provided a forum 

for industry participants, academics, economists, lawyers, and other interested parties to discuss the evolution of 

economic and legal analyses of PAE behavior, including patent acquisitions and licensing activity. While workshop 

panelists and commenters provided anecdotal evidence of potential harms and efficiencies of PAE activity, many 

stressed the lack of more comprehensive empirical evidence. In an attempt to collect such data, in September 2013 

the Commission invited public comment on a proposed study using its authority under Section 6(b) of the Federal 

Trade Commission Act, 15 U.S.C. § 46(b), to gather qualitative and quantitative information on PAE acquisition, 

litigation, and licensing practices. The Commission hopes to develop a fuller and more accurate picture of PAE 

activity, which it can then share with Congress, other government agencies, academics, and industry.

A transcript of the workshop and all comments are available on the FTC website: www.ftc.gov/opp/

workshops/pae. More information about the study is available at www.ftc.gov/opa/2013/09/paestudy.shtm.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 93

PERFORMANCE SECTION

PERFORMANCE MEASURE 2.4.2 

TECHNICAL ASSISTANCE PROVIDED TO FOREIGN COMPETITION AUTHORITIES. 

(OUTPUT MEASURE)

**2013

Target 10

TARGET MET/EXCEEDED. In FY 2013, the FTC conducted 26 

technical assistance missions and hosted eight international 

Fellows. Thirteen of the technical assistance missions 

and two international Fellows were funded through 

outside sources such as the U.S. Agency for International 

Development and the U.S. Trade and Development Agency.

** This measure will no longer be reported after FY 2013.

Actual 34

2012

Target 10

Actual 27

2011

Target 10

Actual 27

2010

Target 10

Actual 60

RESOURCES UTILIZED—STRATEGIC GOAL 2

(DOLLARS SHOWN IN MILLIONS.)

2007 2008 2009 2010 2011 2012 2013

Full-Time Equivalents 489 502 509 512 522 506 505

Obligations $ 94 $ 103 $ 113 $ 123 $ 123 $ 119 $ 127

Net Cost $ (47) $ 2 $ 68 $ 43 $ 43 $ 33 $ 41
94 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY RULING IN A “PAY-FORDELAY” PHARMACEUTICAL PATENT 

SETTLEMENTS CASE

One of the FTC’s top priorities is restricting anticompetitive “pay-fordelay” patent settlements, as these agreements between branded 

manufacturers and generic competitors delay the availability 

of lower-cost generic drugs. In June 2013, the FTC achieved a 

significant victory in the pay-for-delay battle when the United 

States Supreme Court ruled in FTC v. Actavis that pay-for-delay 

settlements can violate the antitrust laws and should be subject to antitrust review. Because of the Court’s 

Actavis decision, the FTC is in a much stronger position to protect consumers from anticompetitive drug-patent 

settlements that result in higher drug costs.

The FTC initiated the Actavis litigation in 2009, when it challenged a settlement agreement between Solvay 

Pharmaceuticals and three competing drug manufacturers seeking to offer a generic alternative. Pursuant to the 

settlement, Solvay had agreed to drop its patent infringement actions, and its would-be competitors agreed not 

to market a generic version of the drug until 2015 – 65 months after Solvay’s drug patent expired. Expressing 

concern that consumers would ultimately bear the costs of delayed generic entry, the FTC urged that the 

settlement was an unlawful restraint of trade. Both the district court and the Eleventh Circuit disagreed, but the 

Supreme Court overturned the so-called “scope of the patent” test, which some courts had adopted, and which 

had virtually immunized pay-for-delay settlements from antitrust review.

As FTC Chairwoman Edith Ramirez said following the Court’s ruling: “The Supreme Court’s decision is a significant 

victory for American consumers, American taxpayers, and free markets. . . . With this ruling, the Court has taken a 

big step toward addressing a problem that has cost Americans $3.5 billion a year in higher drug prices.” For more 

information, visit: www.ftc.gov/opa/2013/06/actavis.shtm. 
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 95

PERFORMANCE SECTION

STRATEGIC GOAL 3: 

ADVANCE PERFORMANCE

Advance the FTC’s Performance Through 

Organizational, Individual, and Management 

Excellence.

I. STRATEGIC VIEW

The FTC recognizes that a strong foundation of 

organizational, individual, and management excellence 

is a driver of mission success. The agency applies four 

objectives to achieve this goal. The objectives align 

with four key functional areas: human resources, 

infrastructure and security, information resources, and 

finance and acquisition.

OBJECTIVE 3.1: PROVIDE EFFECTIVE 

HUMAN RESOURCES MANAGEMENT.

The FTC uses an integrated approach that ensures 

human capital programs and policies are linked to 

our mission, goals, and strategies, while providing 

for continuous improvement in efficiency and 

effectiveness.

OBJECTIVE 3.2: PROVIDE EFFECTIVE 

INFRASTRUCTURE AND SECURITY 

MANAGEMENT.

Building, modernizing, and maintaining physical and 

information technology infrastructure ensures a safe 

and secure workplace to achieve mission goals, and to 

respond to and anticipate both routine and emergency 

agency requirements.

OBJECTIVE 3.3: PROVIDE EFFECTIVE 

INFORMATION RESOURCES 

MANAGEMENT.

The FTC recognizes that sound management of 

information resources is essential to meeting its 

strategic goals.

OBJECTIVE 3.4: PROVIDE EFFECTIVE 

FINANCIAL AND ACQUISITION 

MANAGEMENT.

Effective financial and acquisition management allows 

the FTC to protect American consumers and maintain 

competition in an accountable, transparent, and 

fiscally responsible manner.

II. STRATEGIC ANALYSIS

OBJECTIVE 3.1: PROVIDE EFFECTIVE 

HUMAN RESOURCES MANAGEMENT.

This objective aligns with the agency’s Human Capital Plan that encompasses leadership and knowledge 

management, a results-oriented performance culture, 

talent management, and job satisfaction.
96 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OUR STRATEGY

The FTC recognizes that its employees are its 

greatest asset and places great emphasis on the 

importance of human resources management to 

the successful accomplishment of its mission. One 

of the key strategies used to achieve this objective 

entails implementing programs and processes that 

will enable the agency to recruit quickly, develop, 

and retain a qualified, diverse workforce through 

an integrated workforce plan. The FTC also uses 

the integrated workforce plan to identify and fulfill 

current and future human resources needs to carry out 

its mission and creates an agency-wide performance 

culture focused on individual and organizational 

accountability toward the achievement of the FTC’s 

programmatic goals and priorities. Finally, the agency 

achieves this objective by providing human resources 

management training and outreach to staff.

The agency continues to enhance its performance 

culture focused on accountability toward achieving the 

FTC’s programmatic goals and priorities. In FY 2013, 

the agency continued its efforts to help employees 

better understand how their work contributes to the 

organization’s ability to achieve its goals and fulfill its 

mission through continued communication efforts 

with both supervisors and employees. In this way, the 

FTC continues to focus on functions that contribute 

toward accomplishing organizational goals and 

objectives.

PERFORMANCE RESULTS

Two performance measures, Performance Measure 

3.1.1 and Performance Measure 3.1.2, are used to 

gauge achievement of this objective. These measures 

are based on results from the Federal Employee 

Viewpoint Survey administered by the U.S. Office of 

Personnel Management. The survey focuses on federal 

employees’ perceptions of critical areas of their work 

life and workforce management, and measures factors 

that influence whether employees want to join, stay, 

and help their agency meet its mission.

In FY 2013, the FTC had a survey response rate of 

55 percent (565 of 1,022 employees responded) and,

compared to 37 other federal agencies with over 1,000 

employees, received first place in Results-Oriented 

Performance Culture, second place in Talent Management, third place in Leadership and Knowledge 

Management, and fourth place in Job Satisfaction. Of 

the 84 non-demographic items on the survey, the FTC 

had 52 items with high positive ratings that are considered strengths; and two items with a negative rating 

that would be considered a challenge. Additionally, 63

items were five percentage points or more above the 

government-wide average, and only one item was five 

percentage points or more below the government-wide 

average.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 97

PERFORMANCE SECTION

PERFORMANCE MEASURE 3.1.1 

THE EXTENT EMPLOYEES BELIEVE THEIR ORGANIZATIONAL CULTURE PROMOTES 

IMPROVEMENT IN PROCESSES, PRODUCTS AND SERVICES, AND ORGANIZATIONAL 

OUTCOMES. (OUTCOME MEASURE)

**2013 Target 51.0%

TARGET MET/EXCEEDED. The government-wide results 

were 51.0% and the FTC received 64.0%.

Compared to 37 other departments and agencies with more 

than 1,000 full-time employees, the FTC took third place in 

Leadership and Knowledge Management and first place in 

Results-Oriented Performance Culture.

** This measure will no longer be reported after FY 2013.

Actual 64.0%

2012 Target 52.0%

Actual 66.0%

2011 Target 54.0%

Actual 66.0%

2010 Target 53.0%

Actual 68.0%

KEY MEASURE 3.1.2 

THE EXTENT EMPLOYEES THINK THE ORGANIZATION HAS THE TALENT NECESSARY 

TO ACHIEVE ORGANIZATIONAL GOALS. (OUTCOME MEASURE)

2015 Target

Exceed the government-wide 

results on the Federal Human 

Capital Survey’s Talent

 Management Index

TARGET MET/EXCEEDED. The governmentwide results were 56.0% and the FTC received 

69.0%.

Compared to 37 other departments and 

agencies with more than 1,000 full-time 

employees, the FTC took second place in Talent 

Management.

2014 Target

Exceed the government-wide 

results on the Federal Human 

Capital Survey’s Talent 

Management Index

2013

Target 56.0%

Actual 69.0%

2012

Target 59.0%

Actual 70.0%

2011

Target 60.0%

Actual 70.0%

2010

Target 60.0%

Actual 72.0%
98 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OBJECTIVE 3.2: PROVIDE EFFECTIVE 

INFRASTRUCTURE AND SECURITY 

MANAGEMENT.

Building, modernizing, and maintaining physical and 

information technology infrastructure ensures a safe 

and secure workplace.

OUR STRATEGY

The FTC ensures a safe and secure workplace by 

promoting staff awareness, regularly participating 

in Continuity of Operations Plan (COOP) testing, 

and incorporating best practices from Federal 

Emergency Management Agency (FEMA) staff. 

The COOP exercises have established a viable, 

tested infrastructure that can provide continuation 

of the FTC’s mission along with a safe and secure 

environment for all staff in the event of an emergency.

Ensuring that the FTC has optimal information 

technology (IT) infrastructure operations and 

performance is key to meeting the agency’s business 

goals. The ability of the agency’s Office of the Chief 

Information Officer (OCIO) to deliver value to the 

agency is dependent upon its ability to identify and 

provide a host of critical services of improved quality, 

at lower business risk, and with increased agility. To 

this end, OCIO is working to deploy a sophisticated 

suite of infrastructure operations performance 

monitoring tools, technology, and processes that will 

help achieve the agency goals.

Measuring and improving service delivery to bring 

positive business experiences and outcomes for the 

FTC is imperative. With ever-changing technology, 

including the potential for use of cloud computing, 

this must be accomplished in a growing, complex, 

and dynamic IT infrastructure and application 

environment.

PERFORMANCE RESULTS

Two performance measures are used to gauge 

achievement of this objective. First, the FTC utilizes a 

comprehensive program comprised of tests, training, 

and exercises to validate our COOP capabilities. The 

annual government-wide Eagle Horizon exercise 

serves to assess and validate all the components of 

continuity plans, policies, procedures, systems, and 

facilities used to respond to and recover from an 

emergency situation and identify issues for subsequent 

improvement. An analysis of the plan and exercise is 

conducted with a combination of FEMA, self and peer 

review. An overall score is derived for the exercise 

using the average numeric rating for each element 

of the review. The FTC’s target is based on prior 

performance and the target of 75 percent represents

management’s commitment to reaching a realistic yet 

ambitious milestone.

A second Performance Measure, Key Measure 3.2.2, 

assesses performance of this objective by collecting 

and tracking the availability of key information 

technology applications, systems, and components. 

By tracking unplanned outage periods, the agency 

monitors the reliability and availability of 31 critical 

information technology services.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 99

PERFORMANCE SECTION

KEY MEASURE 3.2.1

A FAVORABLE CONTINUITY OF OPERATIONS (COOP) RATING. (OUTPUT MEASURE)

2015 Target 75.0%

TARGET MET/EXCEEDED. The FTC’s overall score of 85.0% 

for the Eagle Horizon 2013 Exercise reflects the strong overall 

commitment and continued support of the FTC COOP. 

Continued efforts to better define FTC’s essential functions 

and ensure that effective procedures are in place are 

reflected in the outstanding overall exercise score.

2014 Target 75.0%

2013

Target 75.0%

Actual 85.0%

2012

Target 75.0%

Actual 90.0%

2011

Target 75.0%

Actual 75.0%

2010

Target 75.0%

Actual 85.0%

KEY MEASURE 3.2.2

AVAILABILITY OF INFORMATION TECHNOLOGY SYSTEMS. (OUTCOME MEASURE)

2015 Target 99.50%

TARGET MET/EXCEEDED. The FTC’s information technology 

services pool averaged 100.0% availability, exceeding the 

target of 99.50%. During FY 2013, the FTC completed an 

upgrade of our network storage system and other network 

hardware components. Completing these initiatives 

helped to facilitate expanding storage for the FTC’s critical 

applications and increased the level of redundancy in the 

network. To maintain this level of support, the OCIO will 

continue to evaluate lifecycle replacement of outdated 

hardware and software with new components that provide 

greater availability and quicker recovery.

Note: Results for this performance measure are presented 

to two decimals because rounding the number materially 

changes the result. 

2014 Target 99.50%

2013

Target 99.50%

Actual 100.0%

2012

Target 99.00%

Actual 99.86%

2011

Target 98.50%

Actual 99.82%

2010

Target 98.00%

Actual 99.77%
100 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OBJECTIVE 3.3: PROVIDE EFFECTIVE 

INFORMATION RESOURCES 

MANAGEMENT.

The agency manages information to enable staff to 

make thoughtful decisions and perform their work, 

to facilitate appropriate public access, and to protect 

sensitive information from inappropriate access and 

release.

OUR STRATEGY

The FTC provides through its public website – as 

prescribed by Section 207 of the E-Government Act 

and Presidential Executive Orders – public access to 

electronic copies of virtually all public documents 

generated in public Commission proceedings since 

1996, including: administrative and federal court

law enforcement proceedings; rulemaking and guide 

development proceedings; and hearings, workshops 

and conferences. These documents include all 

public documents approved or authorized by the 

Commission, including: Commission Administrative 

Complaints and Consent Orders; Federal Court 

Complaints, Consent Decrees, and other Commission 

filings; Congressional Testimony; Federal Register 

Notices; Commission and Staff Reports; Competition 

Advocacy filings; and Consumer Education materials. 

These documents are typically placed on the FTC’s 

website at the same time as the news releases 

describing them.

The FTC is in the middle of undergoing a multiyear 

transition to managing information resources in 

electronic format as one of the best means of meeting 

this objective. As part of this transition, the FTC 

conducted an agency-wide inventory of records, 

including major electronic systems. Based on the 

inventory, the agency then developed, finalized and 

submitted to the National Archives and Records 

Administration (NARA) a comprehensive retention 

schedule that NARA approved in FY 2012. The 

schedule authorizes the FTC to create, maintain and 

dispose of agency records electronically. It will enable 

the FTC to concentrate on managing information 

rather than records schedules.

As another step in the transition, the FTC has 

developed an electronic recordkeeping certification 

review (ERCR) process that is being used to review 

the ability of the FTC’s information systems to house 

agency records with authenticity, reliability, and 

integrity for the mandated retention period. During 

FY 2013, staff completed its review of and certified the 

FTC’s Sentinel Network Services, a collection of online 

consumer protection services.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 101

PERFORMANCE SECTION

PERFORMANCE RESULTS

One performance measure, Performance Measure 

3.3.1, is used to gauge success of this objective. 

This key performance measure is the percentage 

of Commission-approved documents in the FTC’s 

ongoing and newly initiated proceedings available 

on www.ftc.gov within 15 days of becoming part of

the public record. The FTC selected this measure 

because making documents available to the public 

in timely fashion facilitates public awareness of and 

participation in Commission activities. Examples of 

documents approved by the Commission are Federal 

Register notices in rulemakings and other proceedings 

that seek public comments, consent agreements, 

complaints and orders in administrative litigation, and 

complaints and proposed orders in litigation in the 

federal courts.

KEY MEASURE 3.3.1 

THE PERCENTAGE OF COMMISSION-APPROVED DOCUMENTS IN THE FTC’S ONGOING 

AND NEWLY INITIATED PROCEEDINGS AVAILABLE VIA THE INTERNET WITHIN 15 DAYS 

OF BECOMING PART OF THE PUBLIC RECORD. (OUTPUT MEASURE)

**2013

Target 80.0%

TARGET MET/EXCEEDED. In FY 2013, the target for this 

performance measure increased to 80.0%; during that 

period, 80.6% of documents tracked under this measure 

were posted to the Internet within 15 days of becoming part 

of the public record. The actual performance for FY 2013 is 

based on comprehensive counts, as it was in FY 2012.

** This measure will no longer be reported after FY 2013.

Actual 80.6%

2012

Target 80.0%

Actual 80.2%

2011

Target 75.0%

Actual 82.0%

2010

Target 75.0%

Actual 93.8%
102 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

OBJECTIVE 3.4: PROVIDE EFFECTIVE 

FINANCIAL AND ACQUISITION 

MANAGEMENT.

Resource stewardship and financial oversight are 

fundamental to establishing the accountability and 

transparency, which fosters organizational, individual, 

and management excellence.

OUR STRATEGY

This objective promotes consistency and integrity 

throughout the organization, and ensures efficient 

program delivery and effective and efficient program 

administration. Our work in this area covers a wide 

range of administrative and operational efforts, such 

as formulating and executing the agency budget, 

managing acquisition activities, overseeing the internal 

control program, managing accounting operations, 

spearheading audit resolution, and ensuring 

compliance with various financial management 

laws and regulations. These efforts are critical to 

maintaining the management infrastructure needed 

to carry out the mission. In addition, the FTC aligns 

resources to strategic priorities and outcomes to focus 

the agency on the most important tasks and programs 

and implement “best practice” acquisition and 

business process solutions to accomplish our goals.

One of the primary strategies the agency uses under 

this objective is to enhance the internal control 

environment. During FY 2013 the FTC initiated one 

separate internal control review, and completed one 

prior year review. These reviews were conducted as 

part of our Internal Control Review Plan established 

in FY 2010. The objective of the reviews is to assist 

management in identifying high-risk areas and 

implement appropriate risk management strategies 

where necessary.

PERFORMANCE RESULTS

Three performance measures that assess internal 

administrative and programmatic operations 

and acquisition procedures are used to gauge the 

achievement of this objective. Performance Measure 

3.4.1 tracks the independent auditor’s financial 

statement audit results, and Key Measure 3.4.2 tracks 

the percentage of bureaus/offices that establish 

and maintain an effective, risk-based internal 

control environment. Strong internal controls over 

financial and business processes are critical to the 

integrity of the data reported through the financial 

reporting system. Performance Measure 3.4.3 

monitors performance against the Small Business 

Administration’s government-wide small business 

procurement goals.
FEDERAL TRADE COMMISSION • FISCAL YEAR 2013 103

PERFORMANCE SECTION

PERFORMANCE MEASURE 3.4.1 

INDEPENDENT AUDITOR’S FINANCIAL STATEMENT AUDIT RESULTS. (OUTCOME 

MEASURE)

2015 Target Unqualified opinion on the 

financial statements

TARGET MET/EXCEEDED. The agency received a “clean” 

(unqualified) opinion on its financial statements. The opinion 

is determined by the independent auditor’s review and tests 

of internal controls over operations and financial reporting 

and the auditor’s determination that the financial statements 

and notes are fairly presented.

2014 Target Unqualified opinion on the 

financial statements

2013

Target Unqualified opinion on the 

financial statements

Actual Unqualified opinion

2012

Target Unqualified opinion on the 

financial statements

Actual Unqualified opinion

2011

Target Unqualified opinion on the 

financial statements

Actual Unqualified opinion

2010

Target Unqualified opinion on the 

financial statements

Actual Unqualified opinion
104 FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

PERFORMANCE SECTION

KEY MEASURE 3.4.2 

THE PERCENTAGE OF BUREAUS/OFFICES THAT ESTABLISH AND MAINTAIN AN 

EFFECTIVE, RISK-BASED INTERNAL CONTROL ENVIRONMENT. (OUTCOME MEASURE)

**2013

Target 100.0%

TARGET MET/EXCEEDED. The agency’s components 

perform assessments of the internal controls that have been 

placed into operation within their areas of responsibility. 

These assessments address the “Standards of Internal 

Control” issued by the Government Accountability Office and 

are documented. The Financial Management Office (FMO) 

reviews the assessments and the Chairwoman considers 

these when preparing her annual Statement of Assurance. 

These assessments submitted by the agency’s major 

components, coupled with FMO’s review, provide the basis 

for the measurement of the effectiveness of the FTC’s riskbased internal control environment.

** This measure will no longer be reported after FY 2013.

Actual 100.0%

2012

Target 100.0%

Actual 100.0%

2011

Target 100.0%

Actual 100.0%

2010

Target 100.0%

Actual 100.0%

PERFORMANCE MEASURE 3.4.3 

PERFORMANCE AGAINST THE SMALL BUSINESS ADMINISTRATION’S GOVERNMENTWIDE SMALL BUSINESS PROCUREMENT GOALS. (OUTCOME MEASURE)

**2013

Target 23.0%

TARGET MET/EXCEEDED. This measure encompasses 

contracts to organizations classified as small businesses in 

accordance with Federal Acquisition Regulation Part 19 Small 

Business Programs. The FY 2013 performance result reflects 

the agency’s full commitment to utilizing small businesses 

wherever possible based on the nature of the acquisition. 

The agency has not raised the target for this performance 

measure because the target is established nationwide by the 

Small Business Administration.

** This measure will no longer be reported after FY 2013.

Actual 49.5%

2012

Target 23.0%

Actual 57.7%

2011

Target 23.0%

Actual 46.3%

2010

Target 23.0%

Actual 58.9%
FINANCIAL

SECTION
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

MESSAGE FROM THE CHIEF

FINANCIAL OFFICER

I am pleased to present the Financial section of this 

Performance and Accountability Report (PAR). This 

report shows both the progress we made in Fiscal 

Year 2013 and our plans to continue improving future 

performance. During this fiscal year, the Federal 

Trade Commission continued to protect consumers 

and promote competition while remaining fiscally 

responsible; FY 2013 marks the 17th consecutive 

year that the FTC has received an unqualified (clean) 

opinion on our financial statements. 

Our commitment to effective financial management 

and to upholding high standards of accountability in 

FY 2013 also included several key accomplishments:

•	 Returning more than more than $36 million

directly to consumers who were victims 

of fraud, following successful prosecution 

of defendants resulting in court-ordered 

judgments or settlements.

•	 Receiving, for the sixth consecutive year, the

association of Government Accountants’ 

Certificate of Excellence in Accountability 

Reporting, awarded to agencies with the most 

transparent, innovative, and user-friendly 

PARs. In 2013 the agency also received a Special 

Recognition award for the Best Agency Head 

Message.

•	 Substantially exceeding the Small Business

Administration’s Government-wide goal to 

ensure that small businesses get their fair 

share of work with the federal government by 

awarding 49.5 percent of “eligible dollars” to

small businesses. 

•	 Continuing our record of no material

weaknesses, significant control deficiencies, or 

nonconformances with the Federal Managers’ 

Financial Integrity Act and other applicable 

laws and regulations.

This section also includes FY 2013 financial 

information and uses our performance results to show 

how we optimized our financial resources to protect 

consumers and maintain competition.

The FTC’s Financial Management Office, and the 

entire agency, are committed to exemplary financial 

management and the enhancement of operational 

efficiency through a variety of cost-saving efforts. We 

will continue to work to benefit American consumers 

through financial and performance management 

excellence. 

Steven A. Fisher

Chief Financial Officer

December 16, 2013
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

1101 MERCANTILE LANE, SUITE 122 ● LARGO, MD 20774 

PHONE: (240) 770-4900 ● FAX: (301) 773-2090 ● mail@brownco-cpas.com ● www.brownco-cpas.com

INDEPENDENT AUDITOR'S REPORT 

Inspector General 

Federal Trade Commission

Washington, D.C. 

Report on the Financial Statements 

We have audited the accompanying balance sheets of the Federal Trade Commission (FTC) as of 

September 30, 2013, and the related statements of net cost, changes in net position, budgetary resources, 

and custodial activity for the years then ended (collectively referred to as the financial statements), and 

the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in 

accordance with accounting principles generally accepted in the United States of America; this includes 

the design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or 

error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We 

conducted our audit in accordance with auditing standards generally accepted in the United States of 

America and the standards applicable to financial audits contained in Government Auditing Standards, 

issued by the Comptroller General of the United States; and the Office of Management and Budget 

(OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements, as amended. Those 

standards and OMB Bulletin No. 14-02 require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free from material misstatements. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in 

the financial statements. The procedures selected depend on the auditor’s judgment, including the 

assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. 

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 

and fair presentation of the financial statements in order to design audit procedures that are appropriate in 

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s 

internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates 

made by management, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 

our audit opinion. 
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2 

Opinion on the Financial Statements 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of FTC as of September 30, 2013, and its net costs, changes in net position, budgetary 

resources, and custodial activity for the year then ended, in accordance with accounting principles 

generally accepted in the United States of America. 

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the information in 

the Management’s Discussion and Analysis (MD&A) and Required Supplementary Information (RSI) 

sections be presented to supplement the basic financial statements. Such information, although not a part 

of the basic financial statements, is required by the Federal Accounting Standards Advisory Board, who

considers it to be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to 

the required supplementary information in accordance with auditing standards generally accepted in the 

United States of America, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management's responses to our inquiries, 

the basic financial statements, and other knowledge we obtained during our audit of the basic financial 

statements. We do not express an opinion or provide any assurance on the information because the limited 

procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 

Prior Year Financial Statements 

The financial statements as of and for the year ended September 30, 2012 were audited by other auditors

whose report, dated November 12, 2012, expressed an unmodified opinion on those statements 

Report on Internal Control Over Financial Reporting 

In planning and performing our audit of the financial statements, we considered FTC’s internal control 

over financial reporting (internal control) to design audit procedures that are appropriate in the 

circumstances for the purpose of expressing an opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of FTC’s internal control. Accordingly, we do not 

express an opinion on the effectiveness of FTC’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination 

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less 

severe than a material weakness, yet important enough to merit attention by those charged with 

governance. 

Our consideration of the internal control was for the limited purpose described in the first paragraph of 

this section and was not designed to identify all deficiencies in internal control over financial reporting

that might be deficiencies, significant deficiencies or material weaknesses. In our fiscal year 2013 audit, 

we did not identify any deficiencies in internal control that we consider to be a material weakness. 

However, material weaknesses may exist that have not been identified. 
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

3 

Report on Compliance and Other Matters 

As part of obtaining reasonable assurance about whether FTC’s financial statements are free from 

material misstatement, we performed tests of its compliance with applicable provisions of laws, 

regulations, contracts and grant agreements, noncompliance with which could have a direct and material 

effect on the determination of financial statement amounts. However, providing an opinion on 

compliance with those provisions was not an objective of our audit, and accordingly, we do not express 

such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that 

are required to be reported under Government Auditing Standards or OMB Bulletin No. 14-02. 

Management’s Responsibility for Internal Control and Compliance

FTC’s management is responsible for (1) evaluating effectiveness of internal control over financial 

reporting based on criteria established under the Federal Managers Financial Integrity Act (FMFIA), (2) 

providing a statement of assurance on the overall effectiveness of internal control over financial reporting, 

and (3) ensuring compliance with other applicable laws and regulations. 

Auditor’s Responsibilities

We are responsible for: (1) obtaining a sufficient understanding of internal controls over financial 

reporting to plan the audit, (2) testing compliance with certain provisions of laws and regulations that 

have a direct and material effect on the financial statements and applicable laws for which OMB Bulletin 

14-02 requires testing, and (3) applying certain limited procedures with respect to the MD&A and other 

RSI.

We did not evaluate all internal controls relevant to operating objectives as broadly established by the 

FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations. 

We limited our internal control testing to testing controls over financial reporting. Because of inherent 

limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may 

nevertheless occur and not be detected. We also caution that projecting our audit results to future periods 

is subject to risk that controls may become inadequate because of changes in conditions or that the degree 

of compliance with controls may deteriorate. In addition, we caution that our internal control testing may 

not be sufficient for other purposes. 

We did not test compliance with all laws and regulations applicable to FTC. We limited our tests of 

compliance to certain provisions of laws and regulations that have a direct and material effect on the 

financial statements and those required by OMB Bulletin 14-02 that we deemed applicable to FTC’s 

financial statements for the fiscal year ended September 30, 2013. We caution that noncompliance with 

laws and regulations may occur and not be detected by these tests and that such testing may not be 

sufficient for other purposes. 

Purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters

The purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters sections of this report is solely to describe the scope of our testing of internal control 

and compliance and the result of that testing, and not to provide an opinion on the effectiveness of FTC’s 

internal control or on compliance. These reports are an integral part of an audit performed in accordance 
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4 

with Government Auditing Standards in considering FTC’s internal control and compliance. 

Accordingly, these reports are not suitable for any other purpose. 

This report is intended solely for the information and use of the management of FTC, OMB, OIG and 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

Largo, Maryland 

December 16, 2013 
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

PRINCIPAL FINANCIAL STATEMENTS

FINANCIAL STATEMENT DESCRIPTIONS

A brief description of the five principal financial statements presented on the following pages is provided:

•	 Balance Sheet – Presents the combined amounts the agency had to use or distribute (assets) versus the

amounts the agency owed (liabilities), and the difference between the two (net position).

•	 Statement of Net Cost – Presents the annual cost of agency operations. The gross cost less any offsetting

revenue is used to determine the net cost.

•	 Statement of Changes in Net Position – Reports the accounting activities that caused the change in net

position during the reporting period.

•	 Statement of Budgetary Resources – Reports how budgetary resources were made available and the status of

those resources at fiscal year-end.

•	 Statement of Custodial Activity – Reports collections and their disposition by the agency on behalf of the

Treasury General Fund and one other federal agency. The FTC acts as custodian and does not have use of 

these funds.

The accompanying notes to the financial statements describe significant accounting policies as well as detailed 

information on select statement lines.
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FEDERAL TRADE COMMISSION

 

BALANCE SHEET AS OF SEPTEMBER 30, 2013 AND 2012 

(Dollars shown in thousands) 

 

2013 2012

Assets (Note 2):

Intragovernmental:

Fund balance with Treasury (Note 3) $ 206,638 $ 192,786 

Accounts receivable, net (Note 5) 47 995 

Total intragovernmental 206,685 193,781 

Cash and other monetary assets (Note 4) 18,239 28,360 

Accounts receivable, net (Note 5) 24,791 30,991 

General property and equipment, net (Note 6) 22,042 18,385 

Total Assets $ 271,757 $ 271,517 

Liabilities:

Intragovernmental:

Accounts payable $ 1,555 $ 1,030 

Other (Note 8) 2,314 4,706 

Total intragovernmental 3,869 5,736 

Accounts payable 8,591 8,353 

Accrued consumer redress due to claimants 23,693 27,219 

Consumer redress collections not yet disbursed 65,848 84,935 

Other (Note 8) 17,265 16,520 

Total Liabilities (Notes 7 & 8) $ 119,266 $ 142,763 

Net Position (Note 1(n)):

Unexpended appropriations - - 

Cumulative results of operations 152,491 128,754 

Total Net Position $ 152,491 $ 128,754 

Total Liabilities and Net Position $ 271,757 $ 271,517 

The accompanying notes are an integral part of these statements. 
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FEDERAL TRADE COMMISSION

 

STATEMENT OF NET COST FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012 

(Dollars shown in thousands) 

2013 2012

Costs by Strategic Goal:

Strategic Goal 1: Protect Consumers:

Gross costs (Note 11) $ 165,566 $ 164,767 

Less: earned revenue (Note 12) (14,118) (13,794)

Net cost 151,448 150,973 

Strategic Goal 2: Maintain Competition:

Gross costs (Note 11) 122,375 121,287 

Less: earned revenue (Note 12) (81,693) (87,825)

Net cost 40,682 33,462 

Net Cost of Operations $ 192,130 $ 184,435 

The accompanying notes are an integral part of these statements. 
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FEDERAL TRADE COMMISSION

 

STATEMENT OF CHANGES IN NET POSITION FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012 

(Dollars shown in thousands) 

2013 2012

Cumulative Results of Operations:

Beginning balance $ 128,754 $ 93,196 

Budgetary Financing Sources:

Appropriations used 206,660 210,267 

Other Financing Sources (Non-Exchange):

Imputed financing 9,207 9,726 

Total financing sources 215,867 219,993 

Net cost of operations (192,130) (184,435)

Net change 23,737 35,558 

Cumulative Results of Operations $ 152,491 $ 128,754 

Unexpended Appropriations:

Beginning balance $ - $ - 

Budgetary Financing Sources:

Appropriations received 216,249 210,267 

Other adjustments (rescissions) (9,589) -

Appropriations used (206,660) (210,267)

Total budgetary financing sources - - 

Total Unexpended Appropriations - - 

Net Position (Note 1(n)) $ 152,491 $ 128,754 

The accompanying notes are an integral part of these statements. 
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FEDERAL TRADE COMMISSION

 

STATEMENT OF BUDGETARY RESOURCES FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012 

(Dollars shown in thousands) 

2013 2012

 Budgetary Resources: 

Unobligated balance, brought forward, October 1 $ 57,778 $ 20,575 

Recoveries of prior year unpaid obligations 2,999 4,341 

Unobligated balance from prior year budget authority, net 60,777 24,916 

Appropriations 206,660 210,267 

Spending authority from offsetting collections 89,420 102,610 

 Total Budgetary Resources $ 356,857 $ 337,793 

 

 Status of Budgetary Resources: 

Obligations incurred (Note 13): $ 299,698 $ 280,015 

Unobligated balance, end of period: 

Apportioned (Note 1(q)) 52,778 56,434 

Unapportioned 4,381 1,344 

Total unobligated balance, end of period 57,159 57,778 

 Total Status of Budgetary Resources $ 356,857 $ 337,793 

Change in Obligated Balance: 

Unpaid Obligations: 

Unpaid obligations, brought forward, October 1 $ 79,576 $ 87,672 

Obligations incurred (Note 13): 299,698 280,015 

Outlays, gross (279,830) (283,770)

Recoveries of prior year unpaid obligations (2,999) (4,341)

Unpaid obligations, end of period 96,445 79,576 

Uncollected Payments: 

Uncollected payments from Federal sources, brought forward, October 1 (1,098) (115)

Change in uncollected payments from Federal sources, brought forward , October 1 (199) (983)

Uncollected payments from Federal sources, end of period (1,297) (1,098)

 

Memorandum (non-add) Entries: 

Obligated balance, start of year, net 78,478 87,557 

Obligated balance, end of period, net $ 95,147 $ 78,478 

 Budget Authority and Outlays, Net: 

Budget authority, gross $ 302,530 $ 312,877 

Actual offsetting collections (95,671) (101,627)

Change in uncollected customer payments from Federal sources (199) (983)

Budget authority, net $ 206,660 $ 210,267 

Outlays, gross $ 279,830 $ 283,770 

Actual offsetting collections (95,671) (101,627)

Outlays, net 184,159 182,143 

Distributed offsetting receipts (14,645) (15,478)

Agency outlays, net $ 169,514 $ 166,665

The accompanying notes are an integral part of these statements. 
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FEDERAL TRADE COMMISSION

 

STATEMENT OF CUSTODIAL ACTIVITY FOR THE YEARS ENDED SEPTEMBER 30, 2013 AND 2012 

(Dollars shown in thousands) 

Protect

Consumers

Maintain

Competition 2013 2012

Revenue Activity (Note 16):

Sources of collections:

Premerger filing fees (net of refunds) $ - $ 81,202 $ 81,202 $ 87,544 

Civil penalties and fines 42,545 - 42,545 6,602 

Consumer redress (Note 17) 14,518 - 14,518 15,261 

Other miscellaneous receipts 127 - 127 217 

Total cash collections 57,190 81,202 138,392 109,624 

Accrual adjustments (2,675) - (2,675) 3,634 

Total Custodial Revenue $ 54,515 $ 81,202 $ 135,717 $ 113,258 

Disposition of Collections (Note 16):

Transferred to others:

Treasury general fund $ 57,190 $ - $ 57,190 $ 22,080 

Department of Justice - 81,202 81,202 87,544 

Increase/(decrease) in amounts yet to be 

transferred

(2,675) - (2,675) 3,634 

Total Disposition of Collections $ 54,515 $ 81,202 $ 135,717 $ 113,258 

Net Custodial Activity $ - $ - $ - $ - 

The accompanying notes are an integral part of these statements. 
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Notes to the Financial 

Statements 

NOTE 1—SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

(a) REPORTING ENTITY 

The Federal Trade Commission (FTC) is an 

independent agency of the U.S. Government, 

established by the Federal Trade Commission Act of 

1914. The FTC enforces a variety of federal antitrust 

and consumer protection laws. Its mission is 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 this 

without unduly burdening legitimate business activity. 

The FTC 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. 

The FTC carries out its mission of protecting 

consumers and maintaining competition through 

three bureaus: The Bureau of Consumer Protection 

(BCP), the Bureau of Competition (BC), and the 

Bureau of Economics (BE). Additionally, various 

offices within FTC provide mission support to the 

bureaus. The FTC’s staff is located in Washington DC 

and seven geographic areas. 

The financial statements and notes include the 

financial activity recorded in all of the funds under the 

FTC’s control. As further described in Note 1(b), these 

funds include appropriations received for salaries and 

necessary expenses, as well as non-entity funds that 

are primarily comprised of proceeds derived from 

court ordered judgments and settlements held for 

subsequent distribution to approved claimants. 

(b) FUND ACCOUNTING STRUCTURE 

The FTC ’s financial activities are accounted for using 

various funds in the Treasury. These are identified by 

Treasury Account Symbols (TAS) described below: 

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 12, Exchange Revenues.) 

DEPOSIT FUND 

TAS 29X6013 consists of monies collected for the

consumer redress program and held temporarily by 

the FTC until money is disbursed to consumers or 

transferred to the general fund of the Treasury. (See 

Note 3, Fund Balance with Treasury and Note 17, 

Consumer Redress Activities) 

CLEARING/SUSPENSE FUND 

TAS 29F3875 consists of premerger filing fees

collected by the FTC under the Hart-Scott-Rodino 

(HSR) Antitrust Improvement Act of 1976 that are

distributed equally to the FTC as a funding source and 

to the Department of Justice (DOJ). (See Note 1(o), 

Revenues and Other Financing Sources). 

RECEIPT ACCOUNTS 

TAS 29 1040 is used to account for the collection and 

accrual of civil penalties imposed in court actions 

for violations of antitrust acts and FTC orders. Cash 

balances remaining in the fund at the end of each 

fiscal year are transferred to the general fund of the 

Treasury. 

TAS 29 3220 is used to account for miscellaneous 

receipts that by law are not retained by FTC and for 

collections in connection with the consumer redress 

program that are disgorged to the Treasury. Cash 
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balances remaining in this fund at the end of each 

fiscal year are transferred to the general fund of the 

Treasury. 

(c) BASIS OF PRESENTATION AND 

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. They have been prepared from 

the accounting records of the FTC. These financial 

statements may differ from other financial reports 

submitted pursuant to the Office of Management 

and Budget (OMB) directives for the purpose of 

monitoring and controlling the use of the FTC’s 

budgetary resources. 

The FTC’s financial statements are prepared in 

conformity with generally accepted accounting 

principles (GAAP) for Federal entities and with OMB 

Circular A-136, Financial Reporting Requirements

(as revised October 2013). Accordingly, revenues are 

recognized when earned and expenses are recognized 

when incurred, without regard to the receipt or 

payment of cash. These principles differ from 

budgetary reporting principles. The differences relate 

primarily to the capitalization and depreciation of 

property and equipment, as well as the recognition of 

other long-term assets and liabilities.

As described in Note 1(b), the FTC maintains a single 

fund to account for salaries and all necessary expenses. 

Further, there are limited intra-entity transactions 

with any other fund (e.g., deposit fund) that would 

require eliminating entries to present consolidated 

statements. Accordingly, the statements are not 

labeled consolidated nor is the Statement of Budgetary 

Resources (SBR) presented as combined. 

Assets, liabilities, revenues and costs are classified 

in these financial statements according to the type 

of entity associated with the transactions. Balances 

classified as intragovernmental arise from transactions 

with other Federal entities. Balances not classified 

as intragovernmental arise from transactions with 

individuals or organizations outside of the Federal 

Government (i.e., with the Public). 

The FTC presents net cost of operations by its two 

major strategic goals: protect consumers and maintain 

competition. These goals are described in the agency’s 

strategic and performance plan and align with the 

agency’s major programs. 

(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) BUDGET AUTHORITY 

The 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 the OMB apportionment and 

to Congressional restrictions on the expenditure of 

funds. In addition, the FTC places internal restrictions 

on fund expenditures to ensure the efficient and 

proper use of all funds. The FTC’s budget authority 

is derived from a direct appropriation and offsetting 

collections. FTC accounts for budget authority in its 

general fund (29X0100), as reflected in the Statement 

of Budgetary Resources. 
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

(f) ENTITY/NON-ENTITY ASSETS 

The FTC includes both entity and non-entity assets 

in these financial statements. 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. 

(g) FUND BALANCE WITH TREASURY 

The FTC’s Fund Balance with Treasury (FBWT) 

includes undisbursed appropriated funds, deposit 

funds awaiting subsequent disbursement to claimants, 

and premerger filing fees that are to be distributed 

evenly between the DOJ and the FTC general fund. 

Funds are carried forward until such time as goods 

or services are received and/or payment is made. All 

cash receipts are deposited with the Treasury and all 

payments are disbursed by the Treasury. 

(h) CASH AND OTHER MONETARY ASSETS 

In connection with the consumer redress program, 

as described in Note 17, amounts necessary to cover 

current disbursement schedules are held as cash at 

financial institutions in interest bearing accounts. 

Upon approval by FTC’s Redress Administration 

Office, consumer redress agents process claims and 

disburse redress proceeds to approved claimants. 

These funds are considered non-entity assets and are 

reported in the FTC’s financial records along with an 

offsetting non-entity liability. 

(i) ACCOUNTS RECEIVABLE, NET 

The bulk of FTC’s accounts receivable are non-entity 

accounts receivable arising from the settlement or 

litigation of both administrative and federal court 

cases in connection with the consumer redress 

program. Non-entity accounts receivable also include 

uncollected civil monetary penalties imposed as a 

result of the FTC’s enforcement activities. These nonentity accounts receivable are included in the financial 

statements along with an offsetting non-entity liability. 

Entity accounts receivable consist of amounts due 

from other federal entities and from current and 

former employees and vendors. Gross receivables 

are reduced to net realizable value by an allowance 

for uncollectible accounts. (See Note 5, Accounts

Receivable, Net.) 

(j) ACCRUED LIABILITIES AND ACCOUNTS 

PAYABLE 

Accrued liabilities and accounts payable represent a 

probable future outflow or other sacrifice 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 cannot be liquidated without legislation 

that provides the resources to do so. In addition, the 

government, acting in its sovereign capacity, can 

abrogate the FTC liabilities (other than contracts). 

(See Note 7, Liabilities Not Covered by Budgetary 

Resources and Note 8, Other Liabilities.) 

(k) 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) administered by the 

Office of Personnel Management (OPM). The FTC 

contributes a percentage to each program to pay for 

current benefits. 

(l) EMPLOYEE RETIREMENT BENEFITS 

FTC’s employees participate in either the Civil Service 

Retirement System (CSRS) or the Federal Employees’ 

Retirement System (FERS) administered by OPM. 

Employees hired after December 31, 1983, are 

covered by FERS and Social Security, while employees 
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hired prior to January 1, 1984 were allowed to elect 

joining FERS or remaining in CSRS. For employees 

participating in CSRS, the FTC contributes seven 

percent of the employee’s basic pay to the Civil Service 

Retirement and Disability Fund. For employees 

participating in FERS, the FTC contributes 11.9 

percent to the Federal Employees’ Retirement Fund. 

In addition, the FTC contributes the employer’s 

matching share to the Social Security Administration 

under the Federal Insurance Contributions Act, 

which fully covers FERS participating employees. 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 the TSP, not to 

exceed an annual dollar amount of $17,500 for 2013.

For those employees participating in FERS, the FTC 

makes a mandatory 1 percent contribution to this 

plan and in addition, matches 100 percent of the first 

three percent contributed and 50 percent of the next

two percent. CSRS participating employees do not 

receive a matching contribution from the FTC. FTC 

contributions to the TSP are recognized as current 

operating expenses. 

The FTC does not report CSRS and FERS assets, 

accumulated plan benefits, or unfunded liabilities, 

if any, applicable to its employees. OPM reports this 

information. However, the FTC recognizes the full 

cost of providing future pension benefits to covered 

employees at the time the employees’ services are 

rendered using cost factors provided by OPM that 

estimate the true service cost of providing the pension 

benefits. During fiscal years 2013 and 2012, the cost 

factors used to arrive at the service cost for CSRS 

covered employees were 32.3 percent and 29.8 percent 

of basic pay, respectively. For the same years, the cost 

factors for FERS covered employees were 14.2 percent 

and 13.7 percent. The FTC recognizes the excess of 

the true service cost over amounts contributed as 

an imputed cost. This additional cost is financed by 

OPM, and recognized as an imputed financing source 

by FTC. 

(m) 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 FTC recognizes 

a current cost of providing post-retirement benefits 

using cost factors provided by OPM that estimate 

the true cost of providing these benefit to current 

employees. During fiscal years ended 2013 and 2012, 

the cost factors relating to FEHBP were $5,190 and

$5,817, respectively, per employee enrolled. For the

same years, the cost factor relating to FEGLIP was 0.02 

percent of basic pay per employee enrolled. The cost of 

providing post-retirement benefits for the FEHBP and 

FEGLIP is financed by OPM, and recognized as an 

imputed financing source by FTC.

(n) 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 the 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 in Net Position.) 
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

(o) REVENUES AND OTHER FINANCING 

SOURCES 

The FTC’s revenues and other financing sources 

are derived from exchange revenue collections (see 

Note 12, Exchange Revenues) and from a direct 

appropriation. Exchange revenues consist of premerger 

filing fees under the authority of the HSR Act, fees 

related to the Do-Not-Call (DNC) Implementation 

Act, and amounts received for services performed 

under reimbursable agreements with other federal 

agencies. The FTC receives an annual Salaries and 

Expense appropriation from the general fund of the 

Treasury to support its operations. The appropriation 

represented approximately 58 percent of total

budgetary resources in fiscal year 2013 and 62 percent

in fiscal year 2012. 

(p) METHODOLOGY FOR ASSIGNING 

COSTS AND EXCHANGE REVENUES 

The FTC allocates costs and exchange revenues, on the 

Statement of Net Cost to its two major strategic goals: 

protect consumers and maintain competition. Costs 

and exchange revenues that are identified specifically 

with each of these two strategic goals are charged or 

credited directly. Costs not directly attributable to 

these two goals, including costs related to FTC’s third 

goal, Advance Performance, are allocated based on the 

percentage of direct fulltime equivalents used by each 

of these two goals. 

(q) UNOBLIGATED BALANCE 

The amount reported on the Statement of Budgetary 

Resources as Unobligated balance, end of period, 

Apportioned for fiscal year 2013 includes $32.9 

million that was designated to fund costs associated 

with replacing leases for office space located at 

601 New Jersey Avenue and 1800 M Street and for

relocating affected staff into a new single facility. 

Current plans call for these funds to be obligated in 

fiscal year 2014 with the anticipated occupancy of the 

FTC’s new leased space in fiscal year 2014. 
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NOTE 2—ENTITY AND NON-ENTITY ASSETS FTC’s non-entity assets are comprised of fund balances 

FTC’s entity assets are comprised of fund balances with Treasury, cash and other monetary assets, and 

with Treasury; accounts receivable; and property and accounts receivable. The fund balances with Treasury 

equipment. The fund balances with Treasury consist consist of deposits held for the consumer redress 

of undisbursed funds in the FTC general fund and program and undisbursed premerger filing fees. Cash 

an amount in the clearing/suspense fund payable and other Monetary Assets consist of amounts on 

to the FTC general fund. Entity accounts receivable deposit for the consumer redress program in financial 

are comprised of amounts due from other federal institutions. Accounts receivable consist of amounts 

agencies, current and former employees, and vendors. due from consumer redress judgments and civil 

penalties.

At September 30, 2013, FTC entity and non-entity assets consisted of the following (in thousands):

2013

Entity

2013

Non-Entity

2013

Total

Intragovernmental:

Fund balance with Treasury:

FTC funds $ 158,756 $ - $ 158,756

Deposit funds - consumer redress - 47,609 47,609

Clearing/Suspense funds - premerger filing fees 137 136 273

Accounts receivable, net 47 - 47

Subtotal intragovernmental assets 158,940 47,745 206,685

Cash and other monetary assets - 18,239 18,239

Accounts receivable, net 48 24,743 24,791

Property and equipment, net 22,042 - 22,042

Total Assets $ 181,030 $ 90,727 $ 271,757

At September 30, 2012, FTC entity and non-entity assets consisted of the following (in thousands):

2012

Entity

2012

Non-Entity

2012

Total

Intragovernmental:

Fund balance with Treasury:

FTC funds $ 136,211 $ - $ 136,211

Deposit funds - consumer redress - 56,575 56,575

Accounts receivable, net 995 - 995

Subtotal intragovernmental assets 137,206 56,575 193,781

Cash and other monetary assets - 28,360 28,360

Accounts receivable, net 47 30,944 30,991

Property and equipment, net 18,385 - 18,385

Total Assets $ 155,638 $ 115,879 $ 271,517
125

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NOTE 3—FUND BALANCE WITH 

TREASURY 

FTC’s Fund Balance with Treasury consists of 

undisbursed appropriated funds, which are either 

unobligated or obligated, as well as non-entity funds 

arising from amounts collected for consumer redress 

and not yet disbursed to claimants. The fund balance 

also includes the amount of undisbursed premerger 

filing fees that will be distributed equally between the 

FTC and the DOJ in a subsequent period. 

Fund Balance with Treasury consisted of the following as of September 30, 2013 and 2012 (in thousands):

2013 2012

Fund Balance with Treasury:

Appropriated funds $ 158,756 $ 136,256

Deposit funds - consumer redress 47,609 56,575

Clearing/suspense funds - premerger filing fees 273 (45)

Total Fund Balance with Treasury $ 206,638 $ 192,786

Status of Fund Balance with Treasury:

Unobligated balance:

Apportioned $ 52,778 $ 56,434

Unavailable - not apportioned 4,381 1,344

Unavailable - temporary reduction 6,450 -

Obligated balance not yet disbursed 95,147 78,478

Non-budgetary fund balance with treasury

Deposit funds - consumer redress 47,609 56,575

Clearing/suspense funds - premerger filing fees 273 (45)

Total Status of Fund Balance with Treasury $ 206,638 $ 192,786

The negative balance in the clearing/suspense fund as of September 30, 2012 represents the amount of premerger 

filing fees that were disbursed in excess of actual fees collected. This amount was recorded as a receivable due 

from DOJ and Treasury at the end of fiscal year 2012 and was collected during fiscal year 2013 through an offset to 

distributions made (see Note 16, Premerger filing fees). 
126

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NOTE 4—CASH AND OTHER 

MONETARY ASSETS 

Cash and other monetary assets 

consists of cash in financial 

institutions necessary to cover 

current disbursement schedules in 

connection with the consumer redress 

program. (See Note 1(h), Cash and 

Other Monetary Assets and Note 17, 

Consumer Redress Activities.) 

Cash and other monetary assets consisted of the following as of 

September 30, 2013 and 2012 (in thousands):

2013 2012

Cash and Other Monetary Assets: 

Consumer redress funds held in 

financial institutions

$ 18,239 $ 28,360

Total Cash and Other Monetary Assets $ 18,239 $ 28,360

NOTE 5—ACCOUNTS RECEIVABLE, NET 

Accounts receivable, net of allowances 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 GAAP. 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 accounts 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 for collection activities after the receivable 

becomes six months delinquent in payment. 

Accounts receivable, net consisted of the following as of September 30, 2013 and 2012 (in thousands):

Gross

Receivables

Allowance for

Uncollectible

Accounts 2013 Net 2012 Net

Entity Accounts Receivable:

Intragovernmental $ 47 $ - $ 47 $ 995

With the public 48 - 48 47

Total entity accounts receivable $ 95 $ - $ 95 $ 1,042

Non-Entity Accounts Receivable:

Consumer redress $ 994,781 $ 971,088 $ 23,693 $ 27,219

Civil penalties 31,345 30,295 1,050 3,725

Total non-entity accounts receivable $ 1,026,126 $ 1,001,383 $ 24,743 $ 30,944

Total Accounts Receivable $ 1,026,221 $ 1,001,383 $ 24,838 $ 31,986
127

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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

NOTE 6—GENERAL PROPERTY AND 

EQUIPMENT, NET 

The FTC’s property and equipment consists of 

general-purpose equipment used by the agency, capital 

improvements made to buildings leased by the FTC for 

office space, and software. The FTC reports property 

and equipment at historical cost and capitalizes items 

with an initial cost of $100 thousand or greater and 

a useful life over two years. Property and equipment 

that meets this criterion are depreciated using the 

straight-line method over the estimated useful life of 

the asset. Leasehold improvements are amortized over 

the remaining life of the lease. Additionally, assets 

under development, such as internal use software 

and leasehold improvements with an estimated 

aggregate cost of over $100 thousand are capitalized 

as development-in-progress and then amortized once 

complete and placed into service. The FTC expenses 

the cost of normal repairs and maintenance, as well 

as property and equipment that does not meet the 

capitalization criteria.

Depreciation expense was $3,216 and $3,766 thousand

for fiscal years ending September 30, 2013 and 2012, 

respectively, and is contained in the accumulated 

depreciation. 

As of September 30, 2013, general property and equipment, net consisted of the following (in thousands):

Asset Class Service

Life

Acquisition

Value

Accumulated

Depreciation

Net

Book Value

Equipment 5-20 yrs. $ 10,356 $ 4,779 $ 5,577

Leasehold improvements lease term 16,079 6,638 9,441

Software 3-5 yrs. 20,067 13,043 7,024

Total General Property and Equipment $ 46,502 $ 24,460 $ 22,042

As of September 30, 2012, general property and equipment, net consisted of the following (in thousands):

Asset Class Service

Life

Acquisition

Value

Accumulated

Depreciation

Net

Book Value

Equipment 5-20 yrs. $ 13,447 $ 7,363 $ 6,084

Leasehold improvements lease term 14,351 5,742 8,609

Software 3-5 yrs. 15,275 11,583 3,692

Total General Property and Equipment $ 43,073 $ 24,688 $ 18,385
128

FINANCIAL SECTION

FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

NOTE 7—LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

Liabilities not covered by budgetary resources consisted of the following as of September 30, 2013 and 2012 (in 

thousands):

2013 2012

Intragovernmental:

Undisbursed premerger filing fees due to DOJ $ 136 $ -

Civil penalty accrual due to Treasury 1,050 3,725

FECA liability 394 390

Other unfunded employment related liability 2 7

Subtotal intragovernmental liabilities not covered by budgetary resources $ 1,582 $ 4,122

Accrued consumer redress due to claimants 23,693 27,219

Consumer redress collections not yet disbursed 65,848 84,935

Accrued leave 11,385 11,529

Actuarial FECA 2,254 2,080

Total Liabilities Not Covered by Budgetary Resources $ 104,762 $ 129,885

Total Liabilities Covered by Budgetary Resources 14,504 12,878

Total Liabilities $ 119,266 $ 142,763

Undisbursed Premerger Filing Fees Due to DOJ 

represents the non-entity liability for undisbursed 

filing fees due to the DOJ in a subsequent period. 

Civil Penalty Accrual Due to Treasury represents the 

non-entity liability corresponding to the non-entity 

accounts receivable, net of allowance 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 payable to the Department of Labor 

(DOL), as paying agent for all FECA claims. 

Consumer Redress Accrual Due to Claimants 

represents the non-entity liability corresponding to 

the non-entity accounts receivable, net for judgments 

obtained as a result of the agency’s consumer redress 

litigation. 

Consumer Redress Collections Not Yet Disbursed 

represents the non-entity liability corresponding to 

the non-entity assets (Fund Balance with Treasury and 

Cash and Other Monetary Assets ) collected through 

the consumer redress program. 

Unfunded Leave represents the accrued unfunded liability for earned leave. 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. 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. 
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NOTE 8—OTHER LIABILITIES 

Other liabilities consisted of the following as of September 30, 2013 (in thousands):

2013

Non-Current

2013

Current 2013 Total

Other intragovernmental:

Accrued employee benefits $ - $ 734 $ 734

Undisbursed premerger filing fees - 136 136

Civil penalties - 1,050 1,050

FECA liability 394 - 394

Subtotal other intragovernmental 394 1,920 2,314

Accrued payroll and benefits - 3,626 3,626

Accrued leave - 11,385 11,385

Actuarial FECA 2,254 - 2,254

Subtotal other 2,254 15,011 17,265

Total Other Liabilities $ 2,648 $ 16,931 $ 19,579

Other liabilities consisted of the following as of September 30, 2012 (in thousands):

2012

Non-Current

2012

Current 2013 Total

Other intragovernmental:

Accrued employee benefits $ - $ 591 $ 591

Civil penalties - 3,725 3,725

FECA liability 390 - 390

Subtotal other intragovernmental 390 4,316 4,706

Accrued payroll and benefits - 2,911 2,911

Accrued leave - 11,529 11,529

Actuarial FECA 2,080 - 2,080

Subtotal other 2,080 14,440 16,520

Total Other Liabilities $ 2,470 $ 18,756 $ 21,226
130

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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

NOTE 9—LEASES 

Leases of commercial property are made through and 

managed by the General Services Administration 

(GSA). The FTC has leases on five government-owned 

properties and nine commercial properties totaling 

approximately 633 thousand square feet for use as

offices, storage and parking. The FTC’s current leases 

expire at various dates through 2024. All FTC leases 

are operating leases

Certain leases provide for tenant improvement 

allowances and these costs are 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. 

In 2014, the FTC will begin relocating employees 

from 2 of the leased commercial properties into a 

single newly leased commercial facility. During the 

transition, the FTC’s lease payments will be higher due 

to the fact that payments will need to be made on both 

the old and new leases until the move is complete. The 

higher cost is reflected in the chart showing future 

lease payments of commercial property. 

Future minimum lease payments due under leases 

of government-owned property as of September 30, 

2013, are as follows (in thousands):

Fiscal Year

2014 $ 6,465

2015 $ 6,378

2016 $ 6,383

2017 $ 6,363

2018 $ 6,321

Thereafter $ 6,080

Total Future Minimum Lease Payments $ 37,990

Future minimum lease payments under leases of 

commercial property due as of September 30, 2013 are 

as follows (in thousands):

Fiscal Year

2014 $ 24,192

2015 $ 15,003

2016 $ 14,589

2017 $ 14,546

2018 $ 13,441

Thereafter $ 77,635

Total Future Minimum Lease Payments $ 159,406

NOTE 10—COMMITMENTS AND 

CONTINGENCIES

The FTC is a party in various administrative 

proceedings, legal actions, and claims brought by or 

against it, including pending litigation where adverse 

decisions are considered by management and legal 

counsel as “reasonably possible”. The potential loss for 

pending claims and actions is estimated to be up to $2 

million as of September 30, 2013. 

NOTE 11—INTRAGOVERNMENTAL 

COSTS AND EXCHANGE REVENUES 

Intragovernmental costs arise from purchases of 

goods or services from other components of the 

Federal Government. In contrast, public costs are 

those that arise from the purchase of goods or services 

from nonfederal entities. 

Intragovernmental exchange revenue is earned in 

connection with services provided by the FTC to 

another federal entity in a reimbursable agreement. 

Public earned revenue represents the fees collected 

by the FTC from nonfederal entities. (See Note 12, 

Exchange Revenues.) 
131

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The accompanying chart shows a breakout of the Statement of Net Cost, for the fiscal years ended September 30, 

2013 and 2012, by the categories intragovernmental and public (in thousands):

2013 2012

Strategic Goal 1: Protect Consumers

Intragovernmental gross costs $ 45,938 $ 43,660

Public costs 119,628 121,107

Gross costs, Protect Consumers 165,566 164,767

Intragovernmental earned revenue (6) (42)

Public earned revenue (14,112) (13,752)

Earned revenue, Protect Consumers (14,118) (13,794)

Net Cost, Protect Consumers 151,448 150,973

Strategic Goal 2: Maintain Competition

Intragovernmental gross costs 33,954 32,139

Public costs 88,421 89,148

Gross costs, Maintain Competition 122,375 121,287

Intragovernmental earned revenue (491) (281)

Public earned revenue (81,202) (87,544)

Earned revenue, Maintain Competition (81,693) (87,825)

Net Cost, Maintain Competition 40,682 33,462

Net Cost of Operations $ 192,130 $ 184,435

NOTE 12—EXCHANGE REVENUES 

The FTC’s exchange revenues are derived from three 

primary sources, as described below.

The HSR 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 $70.9 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. By law, the FTC may retain one-half of all 

premerger filing fees collected, and remits one-half 

to the DOJ Antitrust Division. Revenue is recognized 

upon collection of the fee and verification of proper 

documentation. 

The FTC collects fees for the National DNC Registry, 

which operates under Section 5 of the FTC Act.

A permanent fee structure was established by 

Public Law (P.L.) No. 110-188, the Do-Not-Call 

Extension Act of 2007, which amended the DoNot-Call Implementation Act and provided that 

fees be reviewed annually and adjusted for inflation, 

as appropriate. Telemarketers must pay an annual 

subscription fee and download a list of telephone 

numbers of consumers who do not wish to receive 
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calls from the DNC Registry database. Fees are based 

on the number of area codes downloaded. On October 

1, 2012, the minimum charge was raised from $56 to

$58 to download one area code. The maximum charge

was raised from $15,503 to $15,962 for all area codes

within the United States. Revenue is recognized when 

collected and the telemarketer is given access to the 

requested data. 

The FTC receives reimbursements for services 

provided to other government agencies under 

interagency agreements. As the provider of services in 

an interagency agreement (reimbursable order), the 

FTC bills the buying agency to recover the full cost 

of services, primarily salaries and related expenses. 

Revenue is earned at the time FTC incurs expenditures 

against the reimbursable order. 

Exchange revenues are deducted from gross costs 

on the Statement of Net Cost to arrive at net cost of 

operations. 

For the fiscal years ended September 30, 2013 and 

2012, exchange revenue consisted of the following (in 

thousands):

2013 2012

Exchange Revenues:

Premerger filing fees $ 81,202 $ 87,544

Do Not Call registry fees 14,112 13,752

Reimbursements 497 323

Total Exchange Revenues $ 95,811 $ 101,619

NOTE 13—APPORTIONMENT 

CATEGORIES OF OBLIGATIONS 

INCURRED: DIRECT VS. REIMBURSABLE 

OBLIGATIONS 

For the fiscal years ended September 30, 2013 and 

2012, obligations incurred consisted of the following 

(in thousands):

2013 2012

Obligations Incurred:

Category A - direct obligations $ 277,209 $ 279,646

Category B - direct obligations 21,945 -

Category B - reimbursable 

obligations 544 369

Total Obligations Incurred $ 299,698 $ 280,015

NOTE 14—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 fiscal year 2012 Statement of Budgetary 

Resources and the fiscal year 2012 actual amounts as 

reported in the fiscal year 2014 Budget of the United 

States Government. The fiscal year 2015 Budget of the

United States is not available to compare fiscal year 

2013 actual amounts to the fiscal year 2013 Statement 

of Budgetary Resources. 

NOTE 15—UNDELIVERED ORDERS AT 

THE END OF THE PERIOD 

The amount of budgetary resources obligated for 

undelivered orders as of September 30, 2013 and 2012, 

is $81,941 and $66,697 thousand respectively. 
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NOTE 16—CUSTODIAL ACTIVITIES 

The primary custodial activities of the FTC are: 

PREMERGER FILING FEES 

HSR premerger filing fees collected by the FTC 

pursuant to 15 U.S.C. 18a notes, as amended, are

divided evenly between the FTC and the DOJ. The 

portion of collections designated for the DOJ is 

reported as a custodial activity. During fiscal year 2013 

and fiscal year 2012, the FTC collected $162,404 and

$175,088 thousand respectively, in HSR premerger

filing fees. One-half of the amounts collected in 

each year were distributed to DOJ, as show on the 

Statement of Custodial Activity. Undistributed fees to 

the DOJ at September 30, 2013 were $136 thousand;

fees to be credited back from DOJ and the Department 

of Treasury at September 30, 2012 were $45 thousand.

CIVIL PENALTIES 

Civil monetary 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. In those situations 

where the FTC collects the penalties, the FTC deposits 

the money in a receipt account with 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 

transferred to the general fund of the Treasury at the 

end of the year. 

CONSUMER REDRESS 

Collections for consumer redress reported on the 

Statement of Custodial Activity are limited to those 

collections that have been disgorged to the Treasury. 

Collections disgorged to the Treasury were $14,518

thousand for fiscal year 2013 and $15,261 thousand for

fiscal year 2012. 

Other line items on the Statement of Custodial 

Activity include: 

ACCRUAL ADJUSTMENTS 

Accrual adjustments represent the change in accounts 

receivable, net of allowances for uncollectible 

accounts, for civil penalties assessed in court actions.. 

(DECREASE)/INCREASE IN AMOUNTS YET 

TO BE TRANSFERRED 

The decrease/increase in amounts yet to be transferred 

represents the change in the offsetting liability for civil 

penalties due to Treasury that is established at the time 

an accounts receivable for civil penalties in recorded.. 

NOTE 17—CONSUMER REDRESS 

ACTIVITIES 

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. In those cases where 

consumer redress is not practicable, the funds 

are transferred (disgorged) to the Treasury, or on 

occasion, used for consumer education or another 

purpose as directed by the final order issued by the 

court. Major components of the redress program 

include eligibility determination, claimant notification, 

and administration of redress to claimants. 

Redress funds are held by the FTC in a deposit fund 

at Treasury until a determination is made on the 

practicability of redress. If redress is determined to 

be practicable, funds needed to cover immediate 

disbursements to consumers are transferred to 

accounts at financial institutions from which redress 

agents process claims and disburse proceeds to 

claimants. (In previous years, funds not needed to 

cover immediate disbursements were invested in 

Treasury securities. After performing an analysis of 

the yield versus the related costs in fiscal year 2012, 

the FTC discontinued this practice and the funds were 

returned to the FTC’s deposit fund.)
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Redress fund activities consisted of the following for September 30, 2013 and 2012 (in thousands):

2013 2012

Consumer Redress:

Fund Balance with Treasury

Beginning balance $ 56,575 $ 3,803

Collections 36,063 53,442

Disbursements to claimants, net (23) 1

Disgorgements to Treasury (14,518) (15,261)

Transfers, expenses, refunds (30,488) 14,590

Total Fund Balance with Treasury, Ending $ 47,609 $ 56,575

Cash and Other Monetary Assets

Beginning balance $ 28,360 $ 44,944

Disbursements to claimants, net (36,621) (36,231)

Transfers, expenses, interest income 26,500 19,647

Total Cash and Other Monetary Assets, Ending $ 18,239 $ 28,360

Investments

Beginning balance $ - $ 35,443

Transfers, expenses, interest income - (14,269)

Return to deposit fund - (21,174)

Total Investments, Ending $ - $ -

Accounts Receivable, Net

Beginning balance $ 27,219 $ 11,229

Net activity (3,526) 15,990

Total Accounts Receivable, Ending $ 23,693 $ 27,219
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NOTE 18 — RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET

For the fiscal years ended September 30, 2013 and 2012 (in thousands):

2013 2012

Resources Used to Finance Activities:

Budgetary resources obligated:

Obligations incurred $ 299,698 $ 280,015

Less: spending authority from offsetting collections and recoveries (98,869) (106,951)

Total budgetary resources obligated 200,829 173,064

Other resources:

Imputed financing from costs absorbed by others 9,207 9,726

Total other resources 9,207 9,726

Total Resources Used to Finance Activities 210,036 182,790

Resources Used to Finance Items not Part of the Net Cost of Operations:

Change in budgetary resources obligated, but not yet provided (14,277) 256

Resources that finance the acquisition of assets (6,873) (5,283)

Total resources used to finance items not part of the net cost of operations (21,150) (5,027)

Total Resources Used to Finance the Net Cost of Operations 188,886 177,763

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 (144) 516

Other 172 (113)

Total components requiring or generating resources in future period 28 403

Components not requiring or generating resources:

Depreciation and amortization 3,216 3,766

Losses on disposition of assets - other - 2,503

Total components not requiring or generating resources 3,216 6,269

Total Components of the Net Cost of Operations that will not Require or 

Generate Resources in the Current Period: 3,244 6,672

Net Cost of Operations $ 192,130 $ 184,435
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OTHER ACCOMPANYING 

INFORMATION
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OTHER ACCOMPANYING INFORMATION

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Inspector General - Identified Management and 

Performance Challenges
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OTHER ACCOMPANYING INFORMATION

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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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OTHER ACCOMPANYING INFORMATION

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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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INSPECTOR GENERAL - IDENTIFIED MANAGEMENT AND PERFORMANCE 

CHALLENGES (CONTINUED)
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Chairwoman's Response to IG Challenges
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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 (Federal Managers’ Financial Integrity Act 

(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

Non-Conformances

Beginning 

Balance New Resolved Consolidated Reassessed Ending 

Balance

0 0 0 0 0 0

Total Non-Conformances 0 0 0 0 0 0
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THE IMPROPER PAYMENTS ELIMINATION AND 

RECOVERY ACT 

The Improper Payments Elimination and Recovery 

Act (IPERA) (Public Law No. 111-204) 

requires agencies to review annually all programs 

and activities, identify those that may be susceptible 

to significant improper payments, estimate annual 

improper payments in the susceptible programs and 

activities, and report the results of their improper 

payment activities. The IPERA also requires agencies 

to conduct payment recapture audits. 

Office of Management and Budget (OMB) 

Memorandum M-11-16 prescribes guidance for

agencies to use in implementing IPERA. OMB 

guidance defines “significant improper payments”, for 

FY 2013 reporting, as those in any particular program 

or activity that exceed both 1.5 percent of program

outlays and $10 million of all program or activity 

payments made during the fiscal year, or $100 million 

(regardless of the improper payment percentage of 

total program outlays). In addition, the OMB guidance 

addresses implementing payment recapture audits, 

for programs and activities that expend $1 million or 

more annually, provided it is cost-effective to do so. In 

accordance with the OMB guidance, the FTC reviewed 

its programs and activities and determined that none 

of the agency’s programs or activities were susceptible 

to making significant improper payments and that the 

implementation of a payment recapture audit would 

not be cost–effective.

The FTC’s shared service provider, the Department 

of Interior Business (IBC) Center, has implemented 

a continuous monitoring solution against the 

Department of Treasury’s Do Not Pay database. This 

helps to identify and prevent improper payments 

before they are made.  IBC compares the FTC’s 

payee records in the financial system with payee 

records in the Do Not Pay database. Potential 

matches are reviewed by FTC on an on-going basis 

to prevent improper payments. Additionally, the 

FTC has incorporated a pre-award check on potential 

contractors against the Do Not Pay database.
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APPENDIX A: DATA QUALITY INFORMATION

STRATEGIC GOAL 1: PROTECT 

CONSUMERS

OBJECTIVE 1.1: IDENTIFY FRAUD, 

DECEPTION, AND UNFAIR PRACTICES 

THAT CAUSE THE GREATEST CONSUMER 

INJURY.

Performance Measure 1.1.1: Complaints collected 

and entered into the Consumer Sentinel Network 

Database.

Definition and background: This measure tracks 

complaints entered into the FTC’s Consumer Sentinel 

Network (CSN) Database. Consumer Sentinel is an 

investigative tool that provides access to millions of 

consumer complaints to member law enforcement 

agencies. More information about CSN can be found 

at www.ftc.gov/sentinel/index.shtm. 

Data sources: The FTC’s CSN database.

Verification and validation: Reports are run at least 

quarterly to determine the number of complaints that 

are entered into the CSN database.

Data limitations: The data in the CSN database is 

dependent on the complainant providing accurate 

and complete information. CSN data may be 

underreported because some people choose not to file 

a formal complaint, and some people may not know 

they are able to file a complaint with the FTC.

Performance Measure 1.1.2: The percentage of the 

FTC’s consumer protection law enforcement actions 

that target the subject of consumer complaints to 

the FTC. 

Definition and background: This measure gauges 

how well the FTC’s consumer protection law 

enforcement actions target the subject of concerns 

identified by consumers.

Calculation/Formula: Number of enforcement 

actions targeted consumer identified complaints 

compared to the total number of enforcement actions.

Data sources: The FTC’s CSN database, LexisNexis 

CourtLink, the FTC website, and reports from the 

agency, Bureau Director’s Office, divisions, and 

regional offices. 

Verification and validation: A list of all federal court 

actions filed in the current fiscal year is compiled in 

a spreadsheet. For each case, CSN database searches 

by the defendants’ names are completed to determine 

if the cases target subjects of consumer complaints to 

the FTC. The results of the searches are also recorded 

on the spreadsheet, and the percentage is calculated 

based on this information. This information is 

reviewed periodically by staff and management for 

completeness and accuracy. 

Data limitations: The spreadsheet may not capture a 

case if it is missed during the internal review process.

Performance Measure 1.1.3: The rate of customer 

satisfaction with the FTC’s Consumer Response 

Center.

Definition and background: This measure ensures 

the FTC is providing satisfactory service to consumers 

through the complaint website and call center.

Calculation/Formula: The calculation is conducted 

by a third party, Foresee, and the formula it uses is 

proprietary. 

Data sources: Reports from the U.S. Department of 

the Interior’s Federal Consulting Group, the executive 

agent for the American Customer Satisfaction 

Index (ACSI).

Verification and validation: Measurement is 

generated by an outside source based on industry 

standard practices.

Data limitations: There are no significant data 

limitations.
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OBJECTIVE 1.2: STOP FRAUD, 

DECEPTION, UNFAIRNESS, AND OTHER 

UNLAWFUL PRACTICES THROUGH LAW 

ENFORCEMENT.

Performance Measure 1.2.1: The percentage of all 

cases filed by the FTC that were successfully resolved 

through litigation, a settlement, or issuance of a default 

judgment.

Definition and background: This measure gauges 

how well the FTC successfully resolves cases, including 

those that raise challenging legal and factual issues.

Calculation/Formula: The number of successfully 

filed cases is divided by the by the total number of all 

federal court cases resolved in the current fiscal year. 

Data sources: LexisNexis CourtLink, the FTC website, 

and reports from the Bureau Director’s Office, 

divisions, and regional offices.

Verification and validation: A list of all federal court 

cases resolved in the current fiscal year is compiled 

in a spreadsheet, and the percentage of successfully 

resolved cases is calculated based on this information. 

The report is sent to the Associate Directors and 

regional managers on a quarterly basis to verify the 

accuracy of the report and ensure all resolutions are 

included in the report.

Data limitations: The spreadsheet may not capture a 

case if it is missed during the internal review process. 

Performance Measure 1.2.2: The FTC’s effectiveness 

in stopping prohibited business practices in three high 

priority areas over the next five years. 

Definition and background: This measure gauges the 

FTC’s success in changing business practices related to 

misleading advertising claims within priority areas and 

demonstrates the change through research methods.

Calculation/Formula: In each area, FTC staff 

establishes a baseline by identifying the number of 

potentially deceptive advertisements appearing online. 

After the FTC takes enforcement or other actions in 

that area, the staff reviews the online advertisements 

again to determine the number that continue to make 

the deceptive claims. This figure is compared to the 

baseline to determine the effectiveness of the FTC’s 

actions in stopping deceptive practices. 

Data sources: Evaluations of the prevalence of 

prohibited business practices in targeted areas. The 

Internet is used to examine advertising claims.

Verification and validation: Attorneys assigned to 

the subject area work with FTC economists to validate 

the methodology and quality control.

Data limitations: Advertising claims in other types of 

media are not captured.

Performance Measure 1.2.3: The percentage of 

redress cases in which the FTC distributes redress 

dollars designated for distribution to consumers 

within six months. 

Definition and background: This measure ensures 

that the FTC returns redress dollars to consumers as 

quickly as possible.

Calculation/Formula: When a redress distribution 

occurs, the date designated for distribution in the 

redress case status report is checked to determine 

whether or not redress occurred within six months. 

The percentage is determined by dividing the number 

of cases redress distribution occurred within six 

months by the total number of redress distributions in 

a quarter.

Data sources: Bureaus’ open redress case status 

reports.

Verification and validation: When a redress 

distribution occurs, the date of the distribution is 

checked and verified to determine whether or not the 

redress occurred within six months. 

Data limitations: There are no significant data 

limitations. 

Performance Measure 1.2.4: Investigations or 

cases in which the FTC obtains foreign-based 

evidence or engages in mutual assistance that 

contributes to FTC law enforcement actions or in 

which we cooperate with foreign agencies and/or 

multilateral organizations.
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Definition and background: This measure tracks 

investigations or cases in which the FTC obtains 

foreign-based evidence or engages in mutual 

assistance that contributes to FTC law enforcement 

actions or in which we cooperate with foreign agencies 

and/or multilateral organizations.

Data sources: Office of International Affairs weekly 

reports and internal tracking sheets.

Verification and validation: Consumer Protection 

team members report matters they worked on in 

which information was shared. Staff review and 

compile the matters reported. Managers review these 

matters to ensure that they qualify as part of the 

measure and have not been previously counted.

Data limitations: Review is necessary to avoid double 

counting of particular matters.

OBJECTIVE 1.3: PREVENT CONSUMER 

INJURY THROUGH EDUCATION.

Performance Measure 1.3.1: Consumer protection 

messages accessed online or in print. 

Definition and background: This measure gauges 

whether the agency is producing a sufficient amount 

of educational activity and educational materials 

that are aimed at new trends and at particularly 

vulnerable populations.

Data sources: The measure is determined using 

the agency’s web statistics software (for messages 

accessed online) and the FTC publication inventory 

(for messages accessed in print). Print distribution 

numbers are derived from three sources: distribution 

center; distribution from the FTC warehouse; and 

distribution directly from printers when publications 

are printed or reprinted. A full recap of FY 2013 is 

available on request.

Verification and validation: The publication 

inventory is tracked to determine the number of print 

messages distributed. The agency’s IT office compiles 

statistics for all FTC websites.

Data limitations: It is possible that distribution is 

much higher than reported, as online users may be 

printing and disseminating copies. 

Performance Measure 1.3.2: Customer satisfaction 

rate with the FTC consumer education websites or 

microsites. 

Definition and background: This measure gauges the 

effectiveness, helpfulness, and usability of the FTC’s 

consumer education websites and microsites.

Calculation/Formula: The calculation is conducted 

by a third party, Foresee, and the formula it uses is 

proprietary.

Data sources: Reports from the U.S. Department of 

the Interior’s Federal Consulting Group, the executive 

agent for the American Customer Satisfaction Index 

(ACSI).

Verification and validation: Measurement is 

generated by an outside source based on industry 

standard practices.

Data limitations: There are no significant data 

limitations. 

Performance Measure 1.3.3: Organizations requesting 

consumer education publications.

Definition and background: This measure helps the 

FTC ensure that it is publicizing its activities in the 

best way possible, and that the agency has a wide array 

of partners to leverage resources.

Data sources: The measure is derived from the 

agency’s database of online customer orders, 

maintained by the Division of Consumer and 

Business Education.

Verification and validation: The data includes 

customers who have ordered materials during the 

fiscal year and provided a valid organization. Orders 

from individuals and duplicate organizations are 

not included.

Data limitations: The accuracy of the calculations 

depends in part on customers entering their 
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organization name into the order form with consistent 

spelling and formatting; otherwise data may be slightly 

over-reported.

OBJECTIVE 1.4: ENHANCE CONSUMER 

PROTECTION THROUGH RESEARCH, 

REPORTS, RULEMAKING, AND 

ADVOCACY.

Performance Measure 1.4.1: Workshops and 

conferences convened or cosponsored that address 

consumer protection problems.

Definition and background: This measure helps the 

FTC ensure that enforcement and education efforts 

are augmented by encouraging discussions among 

all interested parties, through careful study of and 

empirical research on novel or challenging consumer 

protection problems.

Data sources: The FTC website and reports from 

the agency, Bureau Director’s Office, division, and 

regional offices.

Verification and validation: A list of all workshops 

and conferences is maintained in a spreadsheet. The 

spreadsheet is reviewed quarterly by headquarters and 

regional office management to verify the accuracy 

of the report and to ensure that all conferences and 

workshops are included in the report.

Data limitations: Review is necessary to avoid underreporting any workshops or conferences.

Performance Measure 1.4.2: Advocacy comments 

and amicus briefs on consumer protection issues filed 

with entities including federal and state legislatures, 

agencies, or courts.

Definition and background: The measure tracks the 

number of advocacy comments and amicus briefs 

on consumer protection matters filed with entities 

including federal and state legislatures, agencies, and 

courts to measure the output of the FTC’s advocacy 

activities relating to consumer protection matters. 

Advocacy letters and amicus briefs are tracked based 

on their date of filing to their recipients. During 

FY 2013, the Commission and staff filed seven 

advocacy comments and amicus briefs involving 

consumer protection-related matters. There were five 

advocacies relating to both consumer protection and 

competition related matters that were counted in both 

this performance measure and performance measure 

2.3.3. Thus, there were 12 consumer protection-related 

filings.

Data sources: Internal matter records of advocacy 

comments and amicus briefs filed (e.g., records 

available in the FTC’s document management system).

Verification and validation: Review of internal 

matter records of advocacy comments and amicus 

briefs filed (e.g., records available in the FTC’s 

document management system) and confirmation of 

data with staff having responsibilities for advocacy 

matters.

Data limitations: There are no significant data 

limitations.

Performance Measure 1.4.3: The percentage of 

respondents finding the FTC’s advocacy comments 

and amicus briefs “useful.”

Definition and background: This measure tracks the 

percentage of respondents finding the FTC’s advocacy 

comments and amicus briefs to be “useful,” in order 

to assess the effect of consumer protection advocacy 

comments.

Calculation/Formula: Number of survey responses 

received indicating the usefulness of an advocacy 

divided by the total number of surveys sent to 

advocacy recipients. During FY 2013, two survey 

responses were received, one relating to a consumer 

protection filing and one relating to both consumer 

protection and competition. The survey response 

regarding an advocacy relating to both consumer 

protection and competition was counted in both 

this performance measure and in performance 

measure 2.3.4. 

Data sources: Responses to a written survey, sent by 

agency staff to advocacy recipients (except courts), to 

evaluate the usefulness of an advocacy.

Verification and validation: Agency staff review 
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written responses in order to determine percentage of 

respondents describing the FTC’s advocacy comments 

as “useful.”

Data limitations: There are no significant data 

limitations.

Performance Measure 1.4.4: The percentage of 

proposed Administrative Procedure Act (APA) 

rulemakings, conducted solely by the FTC, completed 

within nine months of receipt of final comments in the 

Final Notice of Proposed Rulemaking.

Definition and background: This measure helps the 

FTC ensure that the agency augments its enforcement 

and education efforts by conducting appropriate 

rulemakings.

Data sources: The Federal Register and the FTC 

website.

Verification and validation: A list of all rulemakings, 

the comment period close date, and the completion 

date of APA rulemakings is maintained in a 

spreadsheet. The spreadsheet is reviewed quarterly 

by headquarters and regional office management to 

verify the accuracy of the report and to ensure that all 

rulemakings are included in the report. 

Data limitations: Review is necessary to avoid underreporting any rulemakings.

OBJECTIVE 1.5: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY AND TECHNICAL INPUT 

TO FOREIGN GOVERNMENTS AND 

INTERNATIONAL ORGANIZATIONS TO 

PROMOTE SOUND CONSUMER POLICY.

Performance Measure 1.5.1: Policy advice provided 

to foreign consumer protection and privacy agencies, 

directly and through international organizations, 

through substantive consultations, written 

submissions, or comments. 

Definition and background: This measure tracks 

policy advice provided to foreign consumer 

protection and privacy agencies, directly and through 

international organizations. Policy advice is defined 

as substantive consultations, written submissions, 

or comments.

Data sources: Office of International Affairs weekly 

reports and internal tracking sheets.

Verification and validation: OIA staff report policy 

advice provided in weekly reports and internal 

logs. Staff review and compile the matters reported. 

Managers review these matters to ensure that they are 

sufficiently substantive to qualify for the measure and 

have not previously been counted. 

Data limitations: Review is necessary to avoid 

double counting of particular matters and to 

ensure the instances of policy advice reported are 

sufficiently substantive.

Performance Measure 1.5.2: Technical assistance to 

foreign consumer protection and privacy authorities.

Definition and background: This measure tracks 

technical assistance provided to foreign consumer 

protection and privacy authorities.

Data sources: Office of International Affairs weekly 

reports and Technical Assistance calendar.

Verification and validation: OIA staff report 

technical assistance workshops, conferences, and other 

missions conducted. Staff review and compile the 

matters reported, and managers review these reports.

Data limitations: Review is necessary to ensure that 

reported items qualify as technical assistance missions.

STRATEGIC GOAL 2: MAINTAIN 

COMPETITION

OBJECTIVE 2.1: TAKE ACTION AGAINST 

ANTICOMPETITIVE MERGERS 

AND PRACTICES THAT MAY CAUSE 

SIGNIFICANT CONSUMER INJURY.

Performance Measure 2.1.1: Actions to maintain 

competition, including litigated victories, consent 

orders, abandoned transaction remedies, restructured 
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transaction remedies, or fix-it-first transaction 

remedies in a significant percentage of substantial 

merger and nonmerger investigations.

Definition and background: This measure ensures 

that FTC actions promote vigorous competition by 

preventing anticompetitive mergers and stopping 

business practices that diminish competition. This 

measure reflects actions to maintain competition, 

including litigated victories, consent orders, 

abandoned transaction remedies, restructured 

transaction remedies, or fix-it-first transaction 

remedies in a significant percentage of substantial 

merger and nonmerger investigations. 

Calculation/Formula: The measure is calculated 

by taking the number of substantial investigations 

closed with an action divided by the total number 

of substantial investigations closed (with or without 

action). “Substantial investigations” comprises all 

second request and/or compulsory process merger 

investigations, and nonmerger investigations where 

staff logged more than 150 hours and/or obtained

compulsory process.

Data sources: Press releases are the source of 

information for public actions, such as consent orders 

and the results of judicial review, while internal 

communications from staff attorneys are used to 

identify those investigations that were closed because 

parties abandoned a transaction or because staff 

did not find that the transaction or the conduct is 

likely to harm competition. This information is then 

cross referenced with a list of second request and 

compulsory process merger investigations and a list 

of significant nonmerger investigations as recorded in 

the agency’s records and identified using the agency’s 

time and attendance reporting database.

Verification and validation: The data is recorded 

by bureau staff, and reviewed monthly by analysts, 

attorneys, economists, and senior management.

Data limitations: This measure does not include 

actions taken in investigations that did not involve the 

use of compulsory process, and therefore did not fall 

under the definition of substantial as specified by this 

measure. Compulsory process refers to a resolution, 

or vote, adopted by the FTC that authorizes staff to 

issue subpoenas and civil investigative demands. This 

measure also does not include actions that are still in 

litigation or on appeal.

Performance Measure 2.1.2: Consumer savings 

of at least $500 million through merger actions to

maintain competition.

Definition and background: This measure ensures 

that the FTC’s merger actions are in part guided by the 

prospective effect these actions will have on consumer 

savings. 

Calculation/Formula: The measure is calculated by 

taking the sum of “Consumer Savings” of individual 

merger actions for the current fiscal year plus the 

previous four fiscal years and dividing the sum by five.

Data sources: The lead attorney estimates consumer 

savings for a particular case using the appropriate 

applicable estimation formula and submits it to the 

Bureau of Economics for concurrence. If available, 

staff will use case-specific data to generate the 

estimate of consumer savings due to the FTC’s action. 

Otherwise, staff uses a formulaic approach taking one 

percent of the volume of commerce in the affected 

market(s) for two years, where the relevant product 

and geographic market(s) are those identified in the 

final enforcement action.

Verification and validation: See measure 2.1.1.

Data limitations: The data is dependent on the 

estimates of consumer savings made by staff in 

accordance with the appropriate applicable estimation 

formulas. Additionally, a five year average is used 

because total consumer savings in an individual year 

may be heavily influenced by significant cases in that 

year.

Performance Measure 2.1.3: Actions against mergers 

likely to harm competition in markets with a total of at 

least $25 billion in sales.

Definition and background: This measure ensures 
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that the FTC’s merger actions are guided in part by the 

size of the relevant product markets involved. 

Calculation/Formula: The measure is calculated by 

taking the sum of the estimated volume of commerce 

in the affected market(s) in which the FTC took action 

for the current fiscal year plus the previous four fiscal 

years divided by five.

Data sources: The lead attorney who worked on the 

investigation estimates the volume of commerce using 

the appropriate applicable estimation formula and 

submits the information to the Bureau of Economics 

for concurrence.

Verification and validation: See measure 2.1.1.

Data limitations: The data is dependent on the 

estimates of volume of commerce made by staff in 

accordance with the appropriate applicable estimation 

formulas. Additionally, a five year average is used 

because the total volume of commerce in an individual 

year may be heavily influenced by significant cases in 

that year.

Performance Measure 2.1.4: Consumer savings of 

at least thirteen times the amount of FTC resources 

allocated to the merger program.

Definition and background: This measure ensures 

that the FTC’s actions are in part guided by the 

requirement that estimated consumer savings exceed 

how much is spent on the merger program. 

Calculation/Formula: Estimated consumer savings 

generated under measure 2.1.2 are divided by the 

amount of resources spent on the merger program for 

the current fiscal year.

Data sources: The lead attorney estimates consumer 

savings for a particular case using the appropriate 

applicable estimation formula and submits it to the 

Bureau of Economics for concurrence. The FTC’s 

financial system provides the amount of resources 

expended on the merger program. 

Verification and validation: See measure 2.1.1.

Data limitations: See measure 2.1.2.

Performance Measure 2.1.5: Consumer savings of at 

least $80 million through nonmerger actions taken to 

maintain competition.

Definition and background: This measure ensures 

that the FTC’s nonmerger actions are in part guided 

by the prospective effect they will have on consumer 

savings. 

Calculation/Formula: The measure is calculated by 

taking the sum of the estimated consumer savings in 

nonmerger actions for the current fiscal year plus the 

previous four fiscal years, and dividing the sum by 

five.

Data sources: The lead attorney estimates consumer 

savings for a particular case using the appropriate 

applicable estimation formula and submits it to the 

Bureau of Economics for concurrence. If available, 

staff will use case-specific data to generate the 

estimate of consumer savings due to the FTC’s action. 

Otherwise, staff uses a formulaic approach taking one 

percent of the volume of commerce in the affected 

market(s) for one year, where the relevant product and 

geographic market(s) are those identified in the final 

enforcement action. 

Verification and validation: See measure 2.1.1.

Data limitations: See measure 2.1.2.

Performance Measure 2.1.6: Actions against 

anticompetitive conduct in markets with a total of at 

least $8 billion in annual sales.

Definition and background: This measure ensures 

that the FTC’s nonmerger actions are in part guided by 

the size of the relevant product markets involved. 

Calculation/Formula: The measure is calculated by 

taking the sum of the estimated volume of commerce 

in the affected market(s) in which the FTC took action 

for the current fiscal year plus the previous four fiscal 

years and dividing the sum by five.

Data sources: The lead attorney who worked on the 

investigation estimates the volume of commerce using 

the appropriate applicable estimation formula and 

submits the information to the Bureau of Economics 

for concurrence.
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Verification and validation: See measure 2.1.1.

Data limitations: See measure 2.1.3.

Performance Measure 2.1.7: Consumer savings of at 

least twenty times the amount of the FTC resources 

allocated to the nonmerger program.

Definition and background: This measure ensures 

that the FTC’s actions are in part guided by the 

requirement that estimated consumer savings exceed 

how much is spent on the nonmerger program. 

Calculation/Formula: This measure is calculated 

by taking the estimated consumer savings generated 

under measure 2.1.5 divided by the amount of

resources spent on the nonmerger program.

Data sources: The lead attorney estimates consumer 

savings for a particular case using the appropriate 

applicable estimation formula. The FTC’s financial 

system provides the amount of resources expended on 

the nonmerger program.

Verification and validation: See measure 2.1.1.

Data limitations: See measure 2.1.2.

Performance Measure 2.1.8: The percentage of 

cases in which the FTC had at least one substantive 

contact with a foreign antitrust authority in which the 

agencies followed the analytical approach and reached 

compatible outcomes.

Definition and background: This measure tracks 

the cases in which the Bureau of Competition or 

foreign agency staff notify the Office of International 

Affairs that a substantial contact has taken place, 

compared with cases where, in the judgment of OIA 

management, no consistent analytical approaches were 

observed. The phrase “reached compatible outcomes” 

means that the reviewing agencies do not impose 

inconsistent obligations on parties; professional 

judgment from OIA senior management is used 

to make a final decision on compatibility for FTC 

measurement purposes. 

Calculation/Formula: Number of cases where foreign 

antitrust authority or agency followed the analytical 

approach and reached compatible outcomes divided 

by the total number of cases the FTC has at least one 

substantive contact.

Data sources: Office of International Affairs weekly 

reports and internal logs.

Verification and validation: International Antitrust 

team members report matters they worked on in 

which substantial contact took place. Staff review 

and compile the matters reported, overseen by an 

International Antitrust team member. Managers 

review and ensure that the matters reported qualify for 

the measure.

Data limitations: Review is necessary to ensure that 

the matters reported included sufficiently substantial 

contact with a foreign antitrust authority.

OBJECTIVE 2.2: PREVENT CONSUMER 

INJURY THROUGH EDUCATION.

Performance Measure 2.2.1: Competition resources 

accessed via the FTC’s website.

Definition and background: This measure ensures 

that consumer injury is prevented by educating 

antitrust practitioners and consumers. This measure 

is calculated by taking the sum of the views recorded 

on antitrust related web pages on the FTC’s external 

website.

Data sources: The primary data source is software 

that monitors traffic on the FTC’s external website.

Verification and validation: Bureau staff identify 

relevant FTC web-based resources to track. Internet 

traffic data is received and entered into a bureau 

database by staff, and reviewed monthly by analysts, 

attorneys, and senior management.

Data limitations: The analysis is dependent on the 

accuracy of measurements made by the web tracking 

software and the presence of internal and external 

traffic filters. The data is also dependent on the 

accurate identification of relevant FTC web-based 

materials.
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OBJECTIVE 2.3: ENHANCE CONSUMER 

BENEFIT THROUGH RESEARCH, 

REPORTS, AND ADVOCACY.

Performance Measure 2.3.1: Workshops, seminars, 

conferences, and hearings convened or cosponsored 

that involve significant competition-related issues.

Definition and background: This measure ensures 

that consumer benefits are enhanced through policy 

related activities such as workshops, seminars, 

conferences, and hearings convened or cosponsored 

that involve significant competition-related issues. 

The measure is calculated by counting the number 

of competition-related workshops, hearings and 

conferences hosted by the FTC.

Data sources: Information on conferences involving 

significant competition related issues is taken from the 

FTC’s website (www.ftc.gov/ftc/workshops.shtm) and 

from press releases.

Verification and validation: Data is received from 

staff attorneys, internal databases and press releases. 

The data is entered into a bureau database by staff, and 

reviewed monthly by analysts, attorneys, economists, 

and senior management.

Data limitations: Review is necessary to ensure that 

all competition-related workshops, hearings and 

conferences are identified.

Performance Measure 2.3.2: Reports and studies 

issued on key competition-related topics.

Definition and background: The measure tracks 

competition policy related activities such as research, 

reports, and studies that enhance consumers’ 

knowledge of competition issues. The measure is 

calculated by counting the number of the reports and 

studies issued by the FTC.

Data sources: Information on studies and reports on 

significant competition-related issues is taken from 

the FTC’s website (www.ftc.gov/be/research.shtm and 

http://www.ftc.gov/policy/reports).

Verification and validation: See measure 2.3.1.

Data limitations: See measure 2.3.1.

Performance Measure 2.3.3: Advocacy comments and 

amicus briefs on competition issues filed with entities 

including federal and state legislatures, agencies 

or courts.

Definition and background: This measure tracks 

the number of advocacy comments and amicus briefs 

on competition matters filed with entities including 

federal and state legislatures, agencies, or courts to 

measure the output of the FTC’s advocacy activities 

relating to competition matters. Advocacy letters and 

amicus briefs are tracked based on their date of filing 

to their recipients. During FY 2013, the FTC and 

staff filed 14 advocacy comments and amicus briefs 

involving competition-related matters. There were five 

advocacies relating to both consumer protection and 

competition related matters that were counted in both 

this performance measure and performance measure 

1.4.2. Thus, there were 19 competition-related filings.

Data sources: Internal matter records of advocacy 

comments and amicus briefs filed (e.g., records 

available in the FTC’s document management system).

Verification and validation: Review internal matter 

records of advocacy comments and amicus briefs 

filed (e.g., records available in the FTC’s document 

management system) and confirm data with staff 

having responsibilities for advocacy matters.

Data limitations: There are no significant data 

limitations. 

Performance Measure 2.3.4: The percentage of 

respondents finding the FTC’s advocacy comments 

and amicus briefs “useful.”

Definition and background: This measure tracks the 

percentage of respondents finding the FTC’s advocacy 

comments and amicus briefs to be “useful,” in order to 

assess the effect of competition advocacy comments.

Calculation/Formula: Number of survey responses 

received indicating the usefulness of an advocacy 
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divided by the total number of surveys sent to 

advocacy recipients. During FY 2013, two survey 

responses were received, one relating to a competition 

filing and one relating to both consumer protection 

and competition. The survey response regarding an 

advocacy relating to both consumer protection and 

competition was counted in both this performance 

measure and in performance measure 1.4.3.

Data sources: Responses to a written survey, sent by 

agency staff to advocacy recipients (except courts), to 

evaluate the usefulness of an advocacy.

Verification and validation: Agency staff review 

written responses in order to determine percentage of 

respondents describing the FTC’s advocacy comments 

as “useful.”

Data limitations: There are no significant data 

limitations.

Performance Measure 2.3.5: The volume of traffic on 

www.ftc.gov relating to competition research, reports, 

and advocacy.

Definition and background: This measure ensures 

the agency’s policy related activities enhance consumer 

benefit by providing practitioners and consumers with 

opportunities to interact with the staff and to learn 

about the agency’s enforcement and policy priorities. 

The measure is calculated by summing the views 

registered on the website of a subset of the competition 

related pages that pertain to advocacy, research, and 

international activities.

Data sources: The agency’s software that monitors 

traffic on the FTC’s external website, the Office 

of International Affairs, and the Office of Policy 

Planning.

Verification and validation: See measure 2.3.1.

Data limitations: The analysis is dependent on the 

accuracy of the measurements made by the web 

tracking software, and the presence of internal and 

external traffic filters. The data is also dependent on 

the accurate identification of relevant FTC web-based 

materials.

OBJECTIVE 2.4: PROTECT AMERICAN 

CONSUMERS IN THE GLOBAL 

MARKETPLACE BY PROVIDING SOUND 

POLICY RECOMMENDATIONS AND 

TECHNICAL ADVICE TO FOREIGN 

GOVERNMENTS AND INTERNATIONAL 

ORGANIZATIONS TO PROMOTE SOUND 

COMPETITION POLICY.

Performance Measure 2.4.1: Policy advice provided 

to foreign competition agencies, directly and through 

international organizations, through substantive 

consultations, written submissions, or comments.

Definition and background: This measure tracks 

the policy advice provided to foreign competition 

agencies, directly and through international 

organizations, through substantive consultations, 

written submissions, or comments excluding casual 

contacts.

Data sources: Office of International Affairs weekly 

reports.

Verification and validation: Agency staff create a 

draft list of events that fall within the scope of the 

measure, which is then submitted to attorneys for 

review. Managers review and ensure that the matters 

reported qualify as substantive policy advice.

Data limitations: Review is necessary to ensure that 

instances of policy advice reported are sufficiently 

substantive.

Performance Measure 2.4.2: Technical assistance 

provided to foreign competition authorities.

Definition and background: This measure tracks 

the number of long term and short term technical 

assistance missions and international Fellows and 

interns hosted.

Data sources: Office of International Affairs weekly 

reports and Technical Assistance calendar. 

Verification and validation: See measure 2.4.1. 

Data limitations: Review is necessary to ensure that 

reported items qualify as technical assistance missions.
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STRATEGIC GOAL 3: ADVANCE 

PERFORMANCE

OBJECTIVE 3.1: PROVIDE EFFECTIVE 

HUMAN RESOURCES MANAGEMENT.

Performance Measure 3.1.1: The extent to which 

employees believe their organizational culture 

promotes improvement in processes, products and 

services, and organizational outcomes.

Definition and background: This measure gauges the 

extent employees believe their organizational culture 

promotes improvement in processes, products and 

services, and organizational outcomes so that the FTC 

has a strong foundation of organizational, individual, 

and management excellence driving mission success.

Data sources: The Federal Employee Viewpoint 

Survey is administered annually by the U.S. Office 

of Personnel Management (OPM). The Federal 

Employee Viewpoint Survey is a tool that measures 

employees’ perceptions of whether, and to what extent, 

conditions that characterize successful organizations 

are present. This survey was administered for the first 

time in 2002, and then repeated in 2004, 2006, 2008,

2010, 2011, and most recently in 2012. OPM transmits 

the agency results to the FTC’s Human Capital 

Management Office.

Verification and validation: Data collected is 

weighted by statisticians to produce survey estimates 

that accurately represent the survey population and 

adjust for differences between the characteristics of 

the survey respondents and the population of federal 

employees surveyed. The weights developed take 

into account the variable probabilities of selection 

across sample domains, nonresponse, and known 

demographic characteristics of the survey population.

Data limitations: The survey results represent a 

snapshot in time of the perceptions of the workforce. 

The Government-wide results have a plus or minus 1 

percent margin of error.

Performance Measure 3.1.2: The extent employees 

think the organization has the talent necessary to 

achieve organizational goals.

Definition and background: This measure gauges 

the extent employees think the organization has the 

talent necessary to achieve organizational goals so that 

the FTC has a strong foundation of organizational, 

individual, and management excellence driving 

mission success.

Data sources: See measure 3.1.1.

Verification and validation: See measure 3.1.1.

Data limitations: See measure 3.1.1.

OBJECTIVE 3.2: PROVIDE EFFECTIVE 

INFRASTRUCTURE AND SECURITY 

MANAGEMENT.

Performance Measure 3.2.1: A favorable Continuity 

of Operations (COOP) rating.

Definition and background: The FTC ensures a safe 

and secure workplace through the development and 

implementation of the FTC COOP. The FTC COOP 

defines the necessary planning and actions that are 

required to ensure the preservation and performance 

of the FTC Mission Essential Functions (MEFs). 

Continuity planning facilitates the performance of 

FTC MEFs during all-hazards emergencies or other 

situations that may disrupt or potentially disrupt 

normal operations. The FTC participated in the 

government-wide Eagle Horizon Exercise to test 

and verify the effectiveness of the FTC COOP. An 

analysis of the plan and exercise is conducted with 

a combination of Federal Emergency Management 

Agency (FEMA), self, and peer review. An overall 

score is derived for the exercise using the average 

numeric rating for each element of the review.

Calculation/Formula: Results of the annual 

government-wide Eagle Horizon exercise, whereas 

an overall score is derived for the exercise using the 

average numeric rating for each element of the review.

Data sources: The data on performance of the COOP 
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exercise is generated using standard evaluation 

protocol developed by FEMA.

Verification and validation: The review of the FTC 

COOP was conducted independently by a FEMA 

representative and the evaluation of the Eagle Horizon 

Exercise was conducted by an internal FTC team, 

when then submitted the data to FEMA. The FTC 

Health and Safety Officer provided an overall review 

to make sure that the data is complete and accurate.

Data limitations: The overall score is based on 

subjective analysis of the COOP and performance of 

the exercise designed to give an overall evaluation of 

the COOP and identify improvement opportunities. 

The subjective nature of the data limits its usefulness 

in trend or comparative analysis.

Performance Measure 3.2.2: Availability of 

information technology systems.

Definition and background: This measure tracks 

unplanned service outages and monitors the 

reliability of 31 critical information technology 

services including: email, FTC-specific applications 

and systems, BlackBerry servers, Internet/Intranet, 

telecommunications (includes phone and voicemail 

services), Wide Area Network, the agency’s primary 

public website (www.ftc.gov), remote employee access, 

printing, and enterprise-wide applications.

Calculation/Formula: This measure is calculated 

by dividing the number of minutes of unscheduled 

system outages per month by the number of total 

minutes per month.

Data sources: System and network engineers record 

system or component outage data as part of the 

OCIO’s Change Management procedure.

Verification and validation: Outage timeframes are 

verified by correlating outages to system alerts and 

data recorded in the change management database.

Data limitations: The agency uses a manual tracking 

process to record the outage data in a spreadsheet. 

The reliability of the data depends on compliance 

with the change management procedure. The agency 

is currently working to implement SolarWinds, a 

network performance-monitoring tool that will 

provide early warning notifications regarding changes 

to application performance and generate outage and 

downtime data.

OBJECTIVE 3.3: PROVIDE EFFECTIVE 

INFORMATION RESOURCES 

MANAGEMENT.

Performance Measure 3.3.1: The percentage of 

Commission-approved documents in the FTC’s 

ongoing and newly initiated proceedings available via 

the Internet within 15 days of becoming part of the

public record.

Definition and background: This performance 

measure was created in an effort to promote agency 

transparency and ensure that documents the 

Commission approves are made available to the public 

in a timely manner. The Commission approves public 

documents by majority vote. These votes are tracked 

by the Office of the Secretary (OS) and are counted 

each quarter. Once the Commission approves a public 

document, the Office of Public Affairs works with 

agency staff to determine whether to publish a news 

release announcing the document. OS works to make 

sure the document is posted to www.ftc.gov at the 

same time as the news release or, if there is no news 

release, as soon as feasible. The agency sometimes 

waits to post a specific document to www.ftc.gov in 

order to maximize consumer impact by posting it in 

conjunction with several related matters. 

Calculation/Formula: To arrive at the performance 

measure, we count the total number of Commission 

votes on public documents. Next, we count the 

number of public documents that were posted to www.

ftc.gov within 15 days after Commission approval.

Then, we divide this number by the total number of 

public documents to arrive at a percentage. We do not 

include any documents that a court has placed under 

seal until the court lifts the seal, because documents 

under seal are not available to the public. Also, we 
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do not count as “posted to the Internet” documents 

that are unavailable on www.ftc.gov, even if they are 

available elsewhere on the Internet (e.g., in electronic 

filing systems used by the federal courts).

Data sources: The data is compiled from Commission 

voting records, FTC news releases, and FTC Web 

Team confirmations that documents have been posted 

to www.ftc.gov.

Verification and validation: Agency staff and 

management verify that the data showing all 

Commission-approved public documents for a specific 

quarter is complete and accurate by reviewing the 

actual Commission votes. We verify the accuracy 

of the date a document is posted to www.ftc.gov

by checking the date against the FTC Web Team 

confirmation that the document has been posted. 

At the time a document is posted to www.ftc.gov,

we test the web link to the document to confirm it is 

operational. The FTC’s OS management reviews the 

source materials and counts to make sure the data is 

complete and accurate. 

Data limitations: This measure only includes 

Commission-approved public documents.

OBJECTIVE 3.4: PROVIDE EFFECTIVE 

FINANCIAL AND ACQUISITION 

MANAGEMENT.

Performance Measure 3.4.1: Independent auditor’s 

financial statement audit results.

Definition and background: Independent auditor’s 

opinion based on auditor’s review and tests of internal 

controls over operations and financial reporting and 

the determination that the financial statements and 

notes are fairly presented. The measure formula is 

100 percent if an unqualified or “clean” opinion (the 

financial statements are fairly presented) is achieved 

or zero percent for all other opinion types (qualified, 

adverse, disclaimer).

Data sources: Independent auditor’s opinion of yearend financial statements.

Verification and validation: FTC’s independent 

auditors render their opinion to the agency. 

Data limitations: There are no significant data 

limitations.

Performance Measure 3.4.2: The percentage of 

Bureaus/Offices that establish and maintain an 

effective, risk-based internal control environment.

Definition and background: This measure tracks 

the percentage of Bureaus/Offices that establish and 

maintain an effective, risk-based internal control 

environment.

Calculation/Formula: Number of Bureaus and 

Offices that established and maintain an effective, 

risk-based internal control environment divided by the 

total number of Bureaus and Offices.

Data sources: FMFIA Annual Statement of Assurance

Verification and validation: As basis for the FTC’s 

annual statement of assurance, agency staff distribute 

an annual survey to key agency management and staff 

which includes detailed questions about their internal 

controls. Staff verify that survey responses have been 

received by each of the Bureaus/Offices (assessable 

units), verify the percentage of the Bureaus/Offices 

that indicate they maintain an effective internal 

control environment (supported by an internal control 

assessment), and staff and management review the 

final compilation of assessments. 

Data limitations: Internal control survey responses 

are dependent on the respondent’s understanding of 

their programs.

Performance Measure 3.4.3: Performance against the 

Small Business Administration’s government-wide 

small business procurement goals.

Definition and background: This measure identifies 

quarterly and annual awards of contract dollars to 

small business entities as a ratio against total dollars 

available for a set-aside for small business awards in 

whole or part. The accumulation, ratio analysis, and 

agency targets are managed by SBA. The internal 
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operations of the Federal Procurement Data System 

- Next Generation (FPDS-NG) application, through 

which the measure is reported, are managed by GSA.

Data sources: FPDS-NG, found at www.fpds.gov

Verification and validation: FTC’s acquisition staff 

performs a statistical analysis annually and certifies 

the statistical validity of the FPDS-NG data.

Data limitations: There are no significant data 

limitations.
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APPENDIX B: ACRONYMS

A&A Assessment & Authorization

ACSI American Customer Satisfaction Index 

APA Administrative Procedure Act 

BC Bureau of Competition 

BCP Bureau of Consumer Protection 

BE Bureau of Economics 

CFO Chief Financial Officer

CFS Core Financial System

COOP Continuity of Operations Plan 

COPPA Children’s Online Privacy Protection Act

CSN Consumer Sentinel Network 

CSRS Civil Service Retirement System 

DCBE Division of Consumer and Business Education

DNC Do Not Call 

DOJ Department of Justice 

DOL Department of Labor 

EFT Electronic Funds Transfer

ERCR Electronic Recordkeeping Certification Review 

FASAB Federal Accounting Standards Advisory Board 

FBWT Fund Balance with Treasury 

FECA Federal Employee’s Compensation Act 

FEGLIP Federal Employees Group Life Insurance Program 

FEHBP Federal Employees Health Benefit Program 

FEMA Federal Emergency Management Agency 

FERS Federal Employees Retirement System 

FISMA Federal Information Security Management Act 

FMFIA Federal Managers’ Financial Integrity Act 

FMO Financial Management Office

FPDS-NG Federal Procurement Data System - Next Generation

FRAND Fair, Reasonable, And Non-Discriminatory

FTC Federal Trade Commission 

FTE Full-Time Equivalent 

FY Fiscal Year 

GAAP Generally Accepted Accounting Principles 

GAO Government Accountability Office 

GPRA Government Performance and Results Act 
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GPRAMA GPRA Modernization Act of 2010

GSA General Services Administration 

HSR Hart-Scott-Rodino Act 

IBC Department of the Interior Business Center

IG Inspector General 

IPERA Improper Payments Elimination and Recovery Act

IT Information Technology

MEF Mission Essential Function

N/A Not Applicable or Not Available 

NARA National Archives and Records Administration

NIST National Institute of Standards and Technology 

OCIO Office of the Chief Information Officer 

OIA Office of International Affairs

OIG Office of Inspector General 

OMB Office of Management and Budget 

OPM Office of Personnel Management 

OS Office of the Secretary

PAE Patent Assertion Entity

PAR Performance and Accountability Report 

PIO Performance Improvement Officer

PMRO Performance Measure Reporting Official

SAT Senior Assessment Team

SBR Statement of Budgetary Resources

SEP Standard Essential Patent

SSAE Statement on Standards for Attestation Engagements

TAS Treasury Account Symbol 

TSR Telemarketing Sales Rule

TSP Thrift Savings Plan 

TTY Text Telephone or Telephone Typewriter 

USAID United States Agency for International Development

US SAFE WEB Act Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond 

Borders Act of 2006
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APPENDIX C: OTHER USEFUL LINKS

INTRODUCTION SECTION:

•	 Accountability of Tax Dollars Act of 2002 (page I): http://www.whitehouse.gov/sites/default/files/omb/assets/about_ 

omb/107-2891.pdf

•	 Association for Government Accountant’s Certificate of Excellence in Accountability Reporting (page I): http:// www.

agacgfm.org/Advocacy---Accountability/Certification-of-Excellence-in-Accountability-Repo.aspx 

•	 Clayton Act (page III): http://www.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00000012----000-.html

•	 Fair Credit Reporting Act (page III): http://www.ftc.gov/os/statutes/031224fcra.pdf 

•	 Federal Managers’ Financial Integrity Act of 1982 (page I): http://www.whitehouse.gov/omb/financial_fmfia1982 

•	 Federal Trade Commission Act (page III): http://www.law.cornell.edu/uscode/text/15/41

•	 Government Management Reform Act of 1994 (page I): http://govinfo.library.unt.edu/npr/library/misc/s2170.html 

•	 Government Performance and Results Act of 1993 (page I): http://www.whitehouse.gov/omb/mgmt-gpra/gplaw2m 

•	 GPRA Modernization Act of 2010 (page I): http://www.gpo.gov/fdsys/pkg/PLAW-111publ352/pdf/PLAW111publ352.pdf

•	 Identity Theft Act (page III): http://www.law.cornell.edu/uscode/text/18/1028 

•	 Improper Payments Information Act of 2002 (page I): http://www.whitehouse.gov/omb/financial_fia_improper/ 

•	 Reports Consolidation Act of 2000 (page I): http://www.gpo.gov/fdsys/pkg/PLAW-106publ531/pdf/PLAW106publ531.pdf

•	 Telemarketing Sales Rule (page III): http://www.law.cornell.edu/uscode/text/15/chapter-87

MANAGEMENT’S DISCUSSION & ANALYSIS SECTION:

•	 The Affordable Care Act of 2010 (page 24): http://www.whitehouse.gov/healthreform/healthcare-overview

•	 American Customer Satisfaction Index (page 10): http://www.theacsi.org 

•	 Children’s Online Privacy Protection Act (page 23): http://www.business.ftc.gov/privacy-and-security/childrensprivacy

•	 Circular A-123, “Management’s Responsibility for Internal Control” (page 26): http://www.whitehouse.gov/omb/ 

circulars_a123_rev/ 

•	 Debt Collection Improvement Act of 1996 (page 28: http://www.dol.gov/ocfo/media/regs/DCIA.pdf 

•	 Do Not Call Registry (page 9): www.donotcall.gov

•	 Energy Independence and Security Act of 2007 (page 25): http://www.gpo.gov/fdsys/pkg/BILLS-110hr6enr/pdf/BILLS110hr6enr.pdf

•	 Equal Credit Opportunity Act (page 2): http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm

•	 Federal Human Capital Survey (page 18): http://www.fedview.opm.gov 

•	 Federal Information Security Management Act (page 28): http://csrc.nist.gov/drivers/documents/FISMA-final.pdf 

•	 FTC Guides for the Use of Environmental Marketing Claims (page 23): http://www.ftc.gov/bcp/edu/microsites/ 

energy/about_guides.shtml

•	 Hart-Scott-Rodino Act (page 24): http://www.ftc.gov/bc/hsr
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

•	 Prompt	Payment	Act	(page	28):	http://www.fms.treas.gov/prompt/regulations.html 

•	 Statement	on	Standards	for	Attestation	Engagement	(page	26):	http://www.aicpa.org/Research/Standards/AuditAttest/

Pages/SSAE.aspx

PERFORMANCE SECTION:

•	 Complaint	Assistant	(page	49):	https://www.ftccomplaintassistant.gov 

•	 Consumer	Sentinel	(page	49):	http://www.ftc.gov/sentinel/ 

•	 Federal	Employee	Viewpoint	Survey	(page	96):	http://www.fedview.opm.gov 

•	 Hart-Scott-Rodino	Act	(page	71):	http://www.ftc.gov/bc/hsr 

•	 National	Do	Not	Call	Registry	(page	49):	www.donotcall.gov 

•	 OnGuardOnline	(page	60):	www.onguardonline.gov 

•	 Undertaking	Spam,	Spyware,	And	Fraud	Enforcement	With	Enforcers	beyond	Borders	Act	of	2006	(page	54):	http:// 

www.gpo.gov/fdsys/pkg/PLAW-109publ455/pdf/PLAW-109publ455.pdf	

OTHER ACCOMPANYING INFORMATION:

•	 Improper	Payments	Elimination	and	Recovery	Act	(page	147):	http://www.gpo.gov/fdsys/pkg/BILLS-111s1508enr/pdf/	

BILLS-111s1508enr.pdf
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FEDERAL TRADE COMMISSION • PERFORMANCE AND ACCOUNTABILITY REPORT

APPENDIX D: 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/news-events/press-releases 

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 Valerie Green

PAR	Telephone	 	 	 	 	 	 202-326-2901

PAR Email Address gpra@ftc.gov

PAR	Fax	Number		 	 	 	 	 202-326-2329

PAR Mailing Address Federal Trade Commission

 attn: 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
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FEDERAL TRADE COMMISSION • FISCAL YEAR 2013

ACKNOWLEDGEMENTS

The FTC gratefully acknowledges the following individuals who made a significant contribution in producing 

this report: Heather Hippsley of the Office of the Chairwoman; George Adam, Pat Bak, Chloe Collins, Juliet 

Felent, Steven Fisher, Antonio Gomez, Valerie Green, James Hale, Karen Leydon, Kimberly Mayo, Jeff Nakrin, 

Mark Oemler, Karen Overmier, David Robbins, Russ Roeller, Randall Salzer, Lori Walsh-Van Wey, and Milissa 

Young-Loiselle of the Office of the Executive Director; Don Clark and April Tabor of the Office of the Secretary; 

Jeanine Balbach, Shannon Chowdhury, Nathan Hawthorne and Andrea Zach of the Bureau of Competition; Laura 

DeMartino, Gregory Fortsch and Jenny Kellogg of the Bureau of Consumer Protection; Russell Damtoft and 

Priscilla Jamison of the Office of International Affairs; and Christopher Grengs of the Office of Policy Planning for 

contributing to the development of this report. Editorial and design work supported by LMI and Graphic Visions.