federal Trade commission | Performance and Accountability Report
IIntroduction

fiscal year 2011

Certificate of Excellence

About this RePoRt

The federal Trade commission’s (fTc) fiscal year (fy) 2011 Performance and accountability report (Par) 

provides the results of the agency’s program and financial performance and demonstrates to the Congress, the 

President, and the public the FTC’s commitment to its mission and accountability over the resources entrusted to it.

This report, available at www.ftc.gov/par, includes information that satisfies the reporting requirements contained 

in the following legislation:

• federal managers’ financial integrity act of 1982

• Government Performance and results act of 1993

• Government management reform act of 1994

• reports consolidation act of 2000

• accountability of Tax dollars act of 2002

• improper Payments information act of 2002

• GPra modernization act of 2010

The performance and financial information contained in this report is summarized in a “Summary of Financial and 

Performance Information” report available at www.ftc.gov/par by February 2012.

 CERTIFICATE OF 

 EXCELLENCE IN 

ACCOUNTABILI

 REPORTING®

TY

Presented to the

Federal Trade 

Commission

In recognition of your outstanding efforts 

preparing FTC’s Performance and 

Accountability Report for the fiscal year ended 

September 30, 2010.

A Certificate of Excellence in Accountability Reporting is presented 

by AGA to federal government agencies whose Annual 

Financial Reports achieve the highest standards demonstrating 

accountability and communicating results.

CERTIFICATE OF

EXCELLENCE IN

ACCOUNTABILITY

REPORTING®

BEST-IN-CLASS AWARD

Presented to the

Federal Trade 

Commission

In recognition for Providing the

Most Effective Management’s 

Discussion and Analysis

in your FY10 Performance and Accountability Report

Relmond P. Van Daniker, DBA, CPA 

Executive Director, AGA

John H. Hummel, CGFM 

Chair, Certificate of Excellence 

in Accountability Reporting Board

Relmond P. Van Daniker, DBA, CPA 

Executive Director, AGA

John H. Hummel, CGFM 

Chair, Certificate of Excellence The FTC received the Association of Government Accountants’ Certificate of in Accountability Reporting Board

Excellence in Accountability Reporting for its FY 2010 PAR and a Best-In-Class 

award for Most Effective Management’s Discussion and Analysis.
Introduction

II Federal Trade Commission | Performance and Accountability Report 

This report includes four major sections plus supplemental information.

1. Management’s discussion and Analysis section

The management’s discussion and analysis (md&a) 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 Chairman’s response and a summary of financial statement 

audit and management assurances.

5. Appendices 

appendix a lists the acronyms used throughout this report; appendix B 

provides contact information and acknowledgements. Appendix C lists 

useful links for references.
IIIIntroduction

fiscal year 2011

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.

Trade Commission Act, Telemarketing Sales Rule, Identity

Theft Act, Fair Credit Reporting Act, and Clayton Act.

Profile

• The agency is headquartered in Washington, 

DC, and operates with seven regions across the 

United States. 

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

employees at the end of FY 2011.

• Total new budget authority for FY 2011 was 

$292 million.

DiD You Know?

Consumers are affected every day by the FTC’s activities. For example, consumers 

receive fewer telemarketing calls, obtain free credit reports, receive less spam, receive 

identity theft victim assistance, access truthful information about health and weightloss products, pay lower prescription drug prices thanks to the availability of generic 

drugs, and enjoy competitive prices for goods as a result of merger reviews and 

actions taken by the FTC.

•	 The agency manages the National Do Not Call (DNC) Registry, which 

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

of the fiscal year, there were more than 208 million active registrations 

on the DNC Registry.

•	 In FY 2011, the FTC took action against mergers likely to harm 

competition in markets with a total of $22.7 billion in sales. The agency’s 

efforts to maintain aggressive competition among sellers benefit 

consumers through lower prices, higher quality products and services, 

additional choice, and greater innovation.

•	 The FTC shares the more than 16.1 million consumer fraud, identity theft, 

financial, and DNC Registry complaints it has collected during the past 

five years with more than 2,000 law enforcement partner agencies 

worldwide via the secure Consumer Sentinel Network website.
Introduction

IV Federal Trade Commission | Performance and Accountability Report 

MessAge FRoM 

the ChAiRMAn

The Federal Trade Commission is a small agency with 

a big mission: protecting consumers and maintaining 

competition. This past year, the troubled economy 

has made our mission more critical than ever, as we 

combat deceptive, unfair, and anticompetitive conduct 

that tilts the marketplace against consumers and honest 

businesses. Our law enforcement actions and policy 

initiatives have focused on key sectors of our economy, 

from high tech to health care, financial services to 

online commerce.

Again this year, our staff has demonstrated remarkable 

talent, dedication, and creativity and produced tangible 

results for American consumers. This Performance 

and Accountability Report for Fiscal Year 2011 shows 

how we managed our resources, highlights our major 

accomplishments, and outlines our plans to address the 

challenges ahead. 

FY 2011 PERFORMANCE HIGHLIGHTS

“last Dollar” frauDs: 

Stopping scammers who prey on financially distressed 

consumers remains the fTc’s top consumer protection 

priority. During the past year, the agency has taken 

action against some of the worst abusers trying to 

pick the last dollar out of the pockets of struggling 

consumers with false promises of jobs, debt relief, 

mortgage modification, and health insurance. The 

FTC has also partnered with other agencies to review 

questionable practices of mortgage servicers including 

“robo-signing.” 

“PaY-for-DelaY” PharmaCeutiCal 

settlements: 

Anticompetitive “pay-for-delay” patent settlements 

between brand-name drug companies and their generic 

competitors delay the availability of lower cost generic 

drugs by 17 months on average, costing consumers an 

estimated $3.5 billion a year. The FTC has continued 

efforts to end this harmful practice by challenging these 

agreements in court and supporting legislation to restrict 

them. This is an important part of the agency’s overall 

effort to promote competition in health care goods and 

services, to help improve quality and reduce the costs.

high-teCh ComPetition anD innovation:

Technology markets are critically important to our 

economy, job creation, and business innovation. The 

FTC’s antitrust investigations increasingly involve hightech industries. The FTC challenges anticompetitive 

conduct and mergers, while also considering the realities 

of the fast-moving technology marketplace in selecting 

targets.

Consumer PrivaCY anD “Do not traCK”: 

In December 2010, the FTC staff issued a preliminary 

privacy report, promoting “privacy by design,” 

transparency, consumer choice, and business innovation. 

The report can help inform policymakers, including 

the Congress, as they develop solutions, policies, and 

potential laws governing privacy. It also encourages 

industry to develop self-regulatory guidelines and best 

practices. One suggestion: implementation of a “Do 

Not Track” mechanism, so consumers can control the 

collection of data about their online searching and 

browsing, an idea with growing industry support. 

Jon Leibowitz 

Chairman
VIntroduction

fiscal year 2011

the fTc either disbursed to consumers or credited the 

U.S. Treasury amounts that total nearly 90 percent our 

FY 2011 appropriation -- a tremendous return on the 

taxpayers’ investment.

future Challenges

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. In 2011, 

the fTc management continues to face challenges in 

protection of personally identifiable and non-public 

information, information technology security, and the 

use of case management to target the most significant 

potential consumer protection and competition 

problems. Agency management agrees that these are 

critical challenges, and with the IG’s assessment of 

our progress, as discussed in the Other Accompanying 

Information Section of this report (see p. 134). 

As we look ahead, my fellow Commissioners, the FTC’s 

staff, and I will continue to work with our partners and 

colleagues in the Congress, industry, and domestic and 

international law enforcement to protect American 

consumers and promote competition necessary to a 

recovering economy. 

Jon Leibowitz

November 15, 2011
Introduction

VI Federal Trade Commission | Performance and Accountability Report 

PerformanCe seCtion ............................................................................................................... 35

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

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

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

 Performance Measure Summary Tables .......................................................................................... 38

Strategic Goal #1: Protect Consumers .......................................................................................................... 47

Strategic Goal #2: Maintain Competition .................................................................................................... 68

Strategic Goal #3: Advance Performance ..................................................................................................... 92
VII Introduction

fiscal year 2011
Management’s Discussion & Analysis

VIII Federal Trade Commission | Performance and Accountability Report 
Management’s Discussion & Analysis

fiscal year 2011 1
Management’s Discussion & Analysis

2 Federal Trade Commission | Performance and Accountability Report 

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.
3Management’s Discussion & Analysis

fiscal year 2011

Each year, more people around the globe have come to 

understand that the competition among independent 

businesses is good for consumers, the businesses 

themselves, and the economy. Competitive markets 

yield lower prices and better quality goods and services, 

and a vigorous marketplace provides the incentive and 

opportunity for the development of new ideas and 

innovative products and services. Many of the 

laws governing competition also are administered 

by the FTC. 

The fTc has a long tradition of maintaining a 

competitive marketplace for both consumers and 

businesses. When the FTC was created in 1914, its 

purpose was to prevent unfair methods of competition 

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

Over the years, the Congress passed additional laws 

giving the agency greater authority over anticompetitive 

practices. In 1938, the Congress passed a broad 

prohibition against “unfair and deceptive acts or 

practices.” Since then, the FTC also has been directed to 

administer a wide variety of other consumer protection 

laws and regulations, including the Telemarketing Sales 

Rule, the Identity Theft Act, and the Equal Credit 

Opportunity Act.

our organization

The fTc is an independent agency that reports to the 

Congress on its actions. These actions include pursuing 

vigorous and effective law enforcement; advancing 

consumers’ interests by sharing its expertise with 

federal and state legislatures and U.S. and international 

government agencies; developing policy and research 

tools through hearings, workshops, and conferences; 

and creating practical and plain-language educational 

programs for consumers and businesses in a global 

marketplace with constantly changing technologies.

methods of competition;” to give definition to that general prohibition; to use a number of 

quasi-judicial powers to enforce that prohibition; and to enforce the Clayton Act. The FTC 

Act was later amended to prohibit unfair or deceptive acts or practices. The FTC currently 

has enforcement and administrative responsibilities under 46 laws. For a description of, 

and further information on, each law see www.ftc.gov/ogc/stats.shtm.
Management’s Discussion & Analysis

4 Federal Trade Commission | Performance and Accountability Report 

The fTc is headed by a commission composed of 

five commissioners, nominated by the President and 

confirmed by the Senate, each serving a seven-year 

term. The President chooses one commissioner to act 

as Chairman. No more than three commissioners can 

be from the same political party. Jon Leibowitz was 

designated to serve as chairman of the fTc on march 

2, 2009, by President Barack H. Obama. Leibowitz was 

previously sworn in as a commissioner on September 

3, 2004, following his nomination by the President and 

confirmation by the U.S. Senate. At the end of the fiscal 

year, the commissioners were Julie Brill, William E. 

Kovacic, Edith Ramirez, and J. Thomas Rosch.

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

the Bureau of Consumer Protection, the Bureau of 

Competition, and the Bureau of Economics. Work 

is aided by offices, including the Office of General 

Counsel, the Office of Inspector General, the Office 

of International Affairs, the Office of the Executive 

Director, and seven regions.

The FTC Commission, as of September 30, 2011: (left to right) Edith Ramirez, Commissioner; William 

E. Kovacic, Commissioner; Jon Leibowitz, Chairman; J. Thomas Rosch, Commissioner; Julie Brill, 

Commissioner.
5Management’s Discussion & Analysis

fiscal year 2011

Office of 

Administrative Law Judges*

D. Michael Chappell

Office of 

Inspector General*

John Seeba

Office of Equal

Employment Opportunity

Kevin Williams (Acting)

Office of the 

Executive Director

Eileen Harrington

Chairman

Jon Leibowitz

-----------

Chief of Staff

Joni Lupovitz

Commissioner

Julie Brill

Commissioner

William E. Kovacic1

Commissioner

J. Thomas Rosch

Bureau of

Economics

Joseph Farrell

Office of the 

General Counsel

Willard K. Tom

Commissioner

Edith Ramirez

Office of 

International Affairs

Randolph W. Tritell

Office of 

Policy Planning

Susan S. DeSanti

Office of Public Affairs

Cecelia Prewett

Office of 

Congressional Relations

Jeanne Bumpus

Regions

Bureau of

Consumer Protection

David Vladeck

Bureau of

Competition

Richard Feinstein

Office of the Secretary

Donald S. Clark 

Federal trade Commission organization Chart

*An independent organization within the FTC 

1

Commissioner Kovacic left office on October 3, 2011
Management’s Discussion & Analysis

6 Federal Trade Commission | Performance and Accountability Report 

FTC’S WORKFORCE COMPOSITION

Attorneys; 583

Economists; 76

Senior Management; 45

Other*; 426

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 over 1,100 civil 

service employees dedicated to addressing the major concerns of American consumers. The 

chart below shows workforce composition by category.
7Management’s Discussion & Analysis

fiscal year 2011

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: Verification and 

Validation of Performance Data.

strategic and Performance 

Planning Framework

PERFORMANCE MEASuREMENT 

METHOdOLOGY 

The FY 2011 performance planning framework 

originates from the fTc’s fys 2009 to 2014 strategic 

Plan, available at www.FTC.gov/opp/gpra/spfy09fy14.

pdf and is supported by the FTC’s Performance Plan, 

available at http://www.ftc.gov/opp/gpra/2012_

performance_plan.pdf. 

The fTc began operating under this updated 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. The table below describes each element in the 

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.
Management’s Discussion & Analysis

8 Federal Trade Commission | Performance and Accountability Report 

STraTeGic GOalS

(Numbers shown in millons.) ObjecTiveS

PrOTecT cONSuMerS

Prevent fraud, deception, and unfair 

business practices in the marketplace.

gross Costs: $169 

less earned revenue: ($14)

net Costs: $155

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.

gross Costs: $129

less earned revenue: ($92)

net Costs: $37

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.

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. Additionally, 

four performance measures are considered efficiency 

measures because they are either 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 2011 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 two fiscal years. The 

FTC met or exceeded 15 of the 16 key measures and 

four of the four efficiency measures.
9Management’s Discussion & Analysis

fiscal year 2011

leGeNd fOr uPcOMiNG TableS

✔ Signifies that the target is met or exceeded

✖ Signifies that the target is not met

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)

2011

Target 65.0% 

of actions

PerfOrMaNce HiGHliGHTS

In December 2010, the FTC took legal action against a 

far-reaching Internet enterprise involving 61 corporations, 

known as iWorks, that allegedly lured consumers into 

“trial” memberships for bogus government-grant and 

money-making schemes, and then repeatedly charged 

them monthly fees, causing more than $274 million in 

consumer injury. The FTC’s complaint alleges that this 

scheme has caused more than 500,000 consumers to 

seek chargebacks – reversals of charges to their credit 

cards or debits to their bank accounts.

actual

80.4% 

✔

2010 actual

95.9%

✔

2009 actual

79.0%

✔
Management’s Discussion & Analysis

10 Federal Trade Commission | Performance and Accountability Report 

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

through law

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)

2011

Target 75.0–85.0% of 

cases

PerfOrMaNce HiGHliGHTS

The FTC finalized an order in January 2011 settling charges 

that The Dannon Company, Inc. exaggerated the health 

benefits of its Activia yogurt and DanActive dairy drink, 

two popular products that contain beneficial bacteria 

known as probiotics. Under the proposed administrative 

settlement announced in December, Dannon agreed to 

stop claiming that Activia relieves temporary irregularity, 

unless the representation is non-misleading and the ad 

conveys that eating three servings a day is required to 

obtain the benefit, or unless Dannon has competent and 

reliable scientific evidence that the benefit can be achieved 

from eating less than three servings a day. Dannon also 

agreed to stop claiming that DanActive or any yogurt, 

dairy drink, or probiotic food helps people avoid catching 

colds or the flu, unless the claim is approved by the Food 

and Drug Administration (FDA). Although companies 

usually do not need FDA approval of their health claims 

to comply with the FTC Act, the FTC determined in this 

case that requiring such approval will give Dannon clearer 

guidance going forward and help ensure that the company 

complies with the order. 

actual

100.0% 

✔

2010 actual

99.2% 

✔

2009 actual N/A

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)

2011

Target 90.0% of 

cases

PerfOrMaNce HiGHliGHTS

The agency returns funds to victims of fraud and scams 

following the successful prosecution of defendants 

that result in court-ordered judgments or settlements. 

For example, the FTC is mailing 450,177 refund checks 

worth almost $108 million to homeowners who were 

allegedly overcharged by Countrywide Home Loans, 

Inc. As part of the FTC’s efforts to protect financially 

distressed homeowners, the FTC reached a settlement 

with Countrywide last year over allegations that the 

company collected excessive fees from borrowers who 

were struggling to keep their homes. The settlement order 

required Countrywide, which is now owned by Bank of 

America, to pay $108 million to be used for refunds and 

barred the company from taking advantage of borrowers 

who have fallen behind on their payments. 

actual

100.0% 

✔

2010 actual

96.0% 

✔

2009 actual N/A
11Management’s Discussion & Analysis

fiscal year 2011

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)

2011

Target

Exceed average 

citizen satisfaction 

rate as published in 

the E-Government 

Satisfaction Index.

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 2011, OnGuardOnline.gov maintained an overall 

customer satisfaction score of 81, well above the 

benchmark score for government websites (74). 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, 73% of respondents said the site helped 

them do what they wanted and 56% 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

 Exceeded

✔

2010 actual

 Exceeded

✔

2009 actual N/A

Objective 1.4: enhance consumer protection through research, reports, rulemaking, 

and advocacy

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)

2011

Target 75.0% of 

rulemakings

PerfOrMaNce HiGHliGHTS

In December 2010, the FTC issued the Mortgage 

Assistance Relief Services Rule, which, as of January 31, 

2011, bans mortgage relief companies from collecting 

fees until homeowners have received and accepted 

a written offer of mortgage relief from their lender 

or servicer. The Rule also requires mortgage relief 

companies to make certain disclosures and prohibits 

them from making false or misleading claims.

actual

83.3% 

✔

2010 actual

100.0%

✔

2009 actual N/A
Management’s Discussion & Analysis

12 Federal Trade Commission | Performance and Accountability Report 

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)

2011

Target 40 policy inputs

PerfOrMaNce HiGHliGHTS

Enhanced engagement with new and developing foreign 

consumer protection and privacy agencies, as well as 

participation in additional international organizations that 

are now working on consumer protection and privacy 

issues, has resulted in an increased demand for the 

FTC’s policy advice. In FY 2011, the FTC provided policy 

advice over 50 instances through consultations, written 

submissions, or comments. 

actual

52

✔

2010 actual

64

✔

2009 actual N/A
13Management’s Discussion & Analysis

fiscal year 2011

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)

2011

Target

40.0–60.0% 

of substantial 

investigations

PerfOrMaNce HiGHliGHTS

The FTC obtained a positive result in 14 of the 44 

significant merger and nonmerger investigations it 

concluded during FY 2011. 

On the merger side this includes successful second 

request or compulsory process investigations in matters 

involving crucial pharmaceuticals (Hikma Pharmaceuticals 

/ Baxter International, Grifols / Talecris), acute care 

psychiatric hospitals and dialysis clinics (Universal Health 

Services / Psychiatric Solutions and DaVita / DSI Renal), 

specialized nuclear pharmacies (Cardinal Health, Inc. / Bio 

Tech Pharmacy, Inc.), manufacturing of industrial goods 

(Keystone / Compagnie de Saint-Gobain), and outlet 

shopping centers (Simon Property Group / Prime Outlets).

In addition, during FY 2011, the Commission issued 

two administrative complaints challenging hospital 

mergers it had reason to believe were anticompetitive. 

However, since these matters are still pending before 

an Administrative Law Judge, they are excluded from 

this measure, even though they represent a significant 

investment of agency resources.

On the nonmerger side, the FTC took action to protect 

consumers from price fixing by physicians, issuing 

an order prohibiting an association representing 900 

physicians in the Amarillo, TX area from fixing the prices it 

charges insurance providers.

actual

 31.8%

✖

2010 actual

 40.0%1

✔

2009 actual N/A

1

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%.
Management’s Discussion & Analysis

14 Federal Trade Commission | Performance and Accountability Report 

Performance measure 2.1.4 Consumer savings of at least six times the amount of ftC resources allocated 

to the merger program. (efficiency measure)

2011

Target 600.0% PerfOrMaNce HiGHliGHTS

During FY 2011, the agency saved consumers approximately 

14 times the amount of resources devoted to the merger 

program, as calculated using the five-year average 

consumer savings obtained under Performance Measure 

2.1.2 ($531.5 million) divided into the amount of resources 

used on the merger program. 

actual

1,417.3% 

✔

2010 actual

1,670.0% 

✔

2009 actual

2,132.0%

✔

Performance measure 2.1.7 Consumer savings of at least four times the amount of ftC resources allocated 

to the nonmerger program. (efficiency measure)

2011

Target 400.0%

PerfOrMaNce HiGHliGHTS

During FY 2011, the agency saved consumers approximately 

19 times the amount of resources it devoted to the nonmerger 

enforcement program, as calculated using the five-year 

average consumer savings obtained under Performance 

Measure 2.1.5 ($444.9 million) divided into the amount of 

resources used on the nonmerger program. This result 

is largely attributable to the consumer savings from one 

particular case in FY 2010 that involved Intel Corporation.

actual

1,917.7% 

✔

2010 actual

2,418.0% 

✔

2009 actual

1,035.0% 

✔
15Management’s Discussion & Analysis

fiscal year 2011

Objective 2.2: Prevent consumer injury through education

Key measure 2.2.1 Competition resources accessed via the ftC’s website. (output measure)

2011

Target 10.0 million hits

PerfOrMaNce HiGHliGHTS

The FTC continued to develop competition 

related content to better serve the interest of its 

stakeholders, whether they are individual consumers, 

affected businesses, researchers, or practitioners 

and policy makers. During FY 2011, the FTC’s online 

competition resources registered nearly 23 million 

hits from external sources. 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 web pages, the online competition 

enforcement database, advocacy filings, and amicus 

briefs), and business and consumer education 

material.

actual

22.6

✔

2010 actual

21.5

✔

2009 actual

11.9

✔

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)

2011

Target

4 workshops, 

seminars, conferences, 

and hearings

PerfOrMaNce HiGHliGHTS

The FTC devotes resources to the organization of 

workshops, conferences, and hearings to foster an 

environment of discussion and analysis of the hottopic issues that relate to competition. Of particular 

note, during FY 2011, the FTC convened two 

workshops on the legal issues raised by Accountable 

Care Organizations (ACOs). The first workshop 

addressed and solicited public comments on the 

various ACO models being considered by health care 

providers, while the second workshop was designed 

to seek input on the Proposed Statement of Antitrust 

Enforcement Policy, which discusses how the federal 

antitrust agencies will enforce U.S. antitrust laws 

when competing health care providers create new 

ACOs under the Affordable Care Act of 2010.

actual

 4

✔

2010 actual

 6

✔

2009 actual

8

✔
Management’s Discussion & Analysis

16 Federal Trade Commission | Performance and Accountability Report 

Key measure 2.3.2 reports and studies issued on key competition-related topics. (output measure)

2011

Target 8 reports and 

studies

PerfOrMaNce HiGHliGHTS

Studying and issuing reports on the nation’s crucial 

economic sectors is a key component of the FTC’s 

competition related strategic objective. During FY 2011, the 

agency issued a final report on authorized generic drugs 

showing how when pharmaceutical companies introduce an 

authorized generic version of their brand-name drug, it can 

reduce both retail and wholesale drug prices. 

In addition, the FTC issued a Bureau of Economics staff 

report examining trends in the petroleum industry and 

how they have affected gasoline prices between 2005 and 

early 2011. The report concludes that while a broad range 

of factors influence the price of gasoline, worldwide crude 

oil prices continue to be the main driver of what Americans 

pay at the pump.

actual

 11

✔

2010 actual

 9

✔

2009 actual

20

✔

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)

2011

Target 6 comments 

and briefs

PerfOrMaNce HiGHliGHTS

In FY 2011, the FTC and staff filed advocacy comments on 

a wide range of competition issues including, for example, 

cooperative agreements among health care providers, 

pharmacy benefit plans, the sale of optical goods, health 

care provider scope of practice, and electricity competition 

issues. The FTC also filed an amicus brief in the U.S. Court 

of Appeals for the Third Circuit, arguing that pay-for-delay 

settlements should be treated as presumptively unlawful 

under the antitrust laws.

actual

16 

✔

2010 actual

17 

✔

2009 actual N/A
17Management’s Discussion & Analysis

fiscal year 2011

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)

2011

Target 40 policy inputs

PerfOrMaNce HiGHliGHTS

The FTC’s policy advice continues to grow as a result of the 

increasing number of jurisdictions enforcing competition 

laws, the FTC’s participation in international organizations, 

and the FTC’s growing engagement with key jurisdictions 

such as China, India, Mexico, and Brazil. In FY 2011, the FTC 

provided policy advice to foreign competition agencies 

in over 100 instances through consultations, written 

submissions, or comments.

actual

112 

✔

2010 actual

76 

✔

2009 actual N/A

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)

2011

Target

Exceed the 

government-wide 

results on the Federal 

Human Capital 

Survey’s Talent 

Management Index

PerfOrMaNce HiGHliGHTS

The Federal Human Capital Survey includes 84 questions 

that measure how effectively agencies manage their 

workforces. The FTC was at least five points higher 

than the government-wide average on 59 of the 84 

questions, and did not fall more than five points below 

the government-wide average on any question. In Talent 

Management, the government-wide results were 60% and 

the FTC received 70%, which is second place compared to 

37 other departments and agencies with more than 1,000 

full-time employees.

actual

Exceeded 

✔

2010 actual

Exceeded 

✔

2009 actual N/A
Management’s Discussion & Analysis

18 Federal Trade Commission | Performance and Accountability Report 

Objective 3.2: Provide effective infrastructure and security management

Key measure 3.2.1 a favorable Continuity of operations (CooP) rating. (output measure)

2011

Target 75.0% rating

PerfOrMaNce HiGHliGHTS

The agency’s COOP efforts establish a viable, tested 

infrastructure to sustain agency operations and provide 

a safe and secure environment for staff during an 

emergency. In FY 2011, the FTC’s received a grade of 75% 

for the “Eagle Horizon” COOP program. While this grade 

meets the target, the result is lower than last year’s result. 

The difference is primarily due to challenges the agency 

encountered trying to meet a new program requirement 

to move network processes to an offsite computer facility. 

This disaster recovery related effort is intended to ensure 

the agency’s continued support of the American consumer 

despite the availability of a specific building. To address this 

requirement, the agency will continue to look at possible 

cloud computing options that will meet disaster recovery 

needs specific to the FTC.

actual

75.0%

✔

2010 actual

85.0% 

✔

2009 actual N/A

Key measure 3.2.2 availability of information technology systems. (outcome measure)

2011

Target 98.50% system 

availability

PerfOrMaNce HiGHliGHTS

Ensuring that the agency has optimal information 

technology infrastructure operations and performance is 

key to meeting the agency’s business goals. To monitor 

the reliability and availability of information technology 

services, the agency tracks unplanned outage periods 

of almost 30 critical services including enterprise-wide 

custom applications and systems, BlackBerry servers, 

Internet/Intranet, email, and telecommunications. In FY 

2011, this information technology services pool averaged 

99.82% availability, exceeding the target.

actual

99.82%

✔

2010 actual

99.77%2

✔

2009 actual N/A

2

This is a correction to results reported in the FY 2010 PAR, which 

showed the results for the final quarter of the fiscal year, or 99.86%, 

and not cumulative results.
19Management’s Discussion & Analysis

fiscal year 2011

Objective 3.3: Provide effective information resources management

Key measure 3.3.1 the percentage of Commission-approved documents in ongoing and newly initiated the 

ftC proceedings available via the internet within 15 days of becoming part of the public record. 

(output measure)

2011

Target 75.0% rating

PerfOrMaNce HiGHliGHTS

Making public documents easily 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) complaints and FTC opinions and 

orders filed in adjudicative proceedings; (2) Federal 

Register notices in rulemaking, guide issuance, 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) FTC complaints, briefs, 

and proposed orders filed in federal court litigation. 

In FY 2011, the agency posted 82% of documents tracked 

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

days of becoming part of the public record.

actual

82.0%

✔

2010 actual

93.8%

✔

2009 actual N/A

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)

2011

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 

and two additional internal reviews conducted in 

accordance with the agency’s Internal Control Review Plan, 

100% of the major components establish and maintain an 

effective, risk-based internal control environment.

actual

100.0% 

✔

2010 actual N/A

2009 actual N/A

Performance Measures summary

The Performance measure summary Table in the 

Performance section of this report shows actual 

results for all performance measures and shows unit 

of measure. Of the 40 total performance measures, 27 

were exceeded, 8 were met, 4 were not met, and results 

are not available for one. Based on these results, the 

FTC has made significant progress toward reaching 

its objectives, as fully described in the Performance 

Section.
Management’s Discussion & Analysis

20 Federal Trade Commission | Performance and Accountability Report 

AgenCy Mission ChAllenges

The fTc stands prepared to face the challenges of 

today’s marketplace as a champion for consumers 

and competition. 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 protect consumers 

and maintain competition. Agency management has 

identified significant mission challenges in Strategic 

Goal 1 (Protect consumers) and strategic Goal 2 

(Maintain Competition). Management’s identification 

was performed separately from the Inspector General’s 

(iG) assessment of management and performance 

challenges (see the other accompanying information 

Section). However, because management concurs with 

the IG assessment, certain aspects of the challenges 

described below are also addressed by the IG. Agency 

mission challenges are presented below as they relate 

to the agency’s strategic goals. A reference to the 

most applicable strategic objectives is also provided 

so that readers may refer to descriptions of related 

performance targets and actual results listed by objective 

within the Performance Section. 

strategic goal 1: Protect 

Consumers: Prevent Fraud, 

deception, and unfair business 

Practices in the Marketplace

Under the Protect Consumers goal, the FTC will 

continue to give priority to addressing the following 

challenges: protecting consumers in a troubled 

economy, protecting consumer privacy and improving 

data security, stopping harmful uses of technology, 

promoting compliance in new media, protecting 

vulnerable Americans from fraud, combating identity 

theft, targeting deceptive advertising affecting 

consumers’ health, protecting children in the marketplace, 

and evaluating environmental marketing claims.

PROTECTING CONSuMERS IN A 

TROuBLEd ECONOMY:

As more consumers face financial challenges, fraud 

operators have seized upon new schemes to take 

advantage of those most affected by the economic 

downturn. The FTC targets illegal practices in the 

financial services arena, especially schemes directed at 

financially distressed consumers. The FTC will continue 

to use the tools and legalauthorities available to it to 

protect consumers in the financial services marketplace. 

Agency law enforcement actions will target deceptive, 

unfair, and other illegal practices involving mortgage 

advertising, servicing, lending, and other financial 

services. These practices can have severe consequences 

for consumers, including unanticipated high-cost 

mortgages, ruined credit histories, and loss of their 

homes. The FTC will work to combat financial frauds 

by targeting foreclosure “rescue” and loan modification 

scams; enforcing debt relief services amendments 

to the Telemarketing Sales Rule; enforcing the new 

Mortgage Assistance Relief Services Rule (which 

protects struggling homeowners from mortgage relief 

scams) and the new rule banning deceptive mortgage 

advertising practices; and targeting payday lenders, credit 

repair outfits, and other non-traditional creditors that 

are violating statutes the FTC enforces. The agency 

also will fight deceptive and abusive debt collection 

practices. In addition, the FTC will continue to gather 

information on the consumer protection issues related 

to buying or leasing motor vehicles. Further, the FTC 

will 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. The FTC also will work 

to protect vulnerable consumers from deceptive workat-home, get-rich-quick, and related schemes, including 

promises of non-existent jobs and promotion of phony 

government grants. The FTC will continue to respond 

to growing challenges in these arenas. (Objectives 1.1, 

1.2, 1.3, and 1.4)
21Management’s Discussion & Analysis

fiscal year 2011

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 their privacy. The agency 

will stop unfair and deceptive consumer privacy and 

security practices through law enforcement, and 

promote stronger privacy protections through policy 

initiatives. Most notably, the FTC will issue a final 

report on protecting consumer privacy. The FTC 

will also participate in interagency groups, provide 

technical assistance to Congress on draft legislation, and 

participate in international privacy events. The National 

do not call (dnc) registry puts consumers in charge 

of the telemarketing calls they receive at home. The 

fTc created the registry to make it easier and more 

efficient for consumers to stop unwanted telemarketing 

calls. Though most entities covered by the DNC Rule 

comply, the FTC has received millions of complaints 

alleging DNC violations, and the FTC’s challenge is 

to ensure that consumers who register their numbers 

are protected from receiving unwanted telemarketing 

calls, including “robocalls” that deliver prerecorded 

telemarketing messages, by vigorously enforcing the 

DNC Rule. (Objectives 1.1, 1.2, 1.3, and 1.4)

STOPPING HARMFuL uSES 

OF 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. If consumers are 

not adequately protected, not only can they suffer 

economic injury, but they may lose confidence in these 

new technologies. To respond to these challenges, 

the FTC will examine malware and spyware threats 

to mobile devices, promote technologies to protect 

consumers online, and target online and mobile threats 

for enforcement, including mobile spam, deceptive and 

unfair apps, and malware distributed through social 

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

PROMOTING COMPLIANCE IN 

NEW MEdIA: 

As new media open new avenues for companies to 

communicate with consumers, the FTC’s challenge is to 

promote compliance. The agency will conduct outreach 

to businesses that engage in social network, 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 VuLNERABLE AMERICANS 

FROM FRAud: 

frauds such as those offering health insurance or 

income opportunities through jobs, investment, 

government grants, or other scams continue to affect 

the poor and underserved communities, and the FTC 

will continue to combat such frauds. It also will combat 

fraud targeting seniors, and examine ways to better 

assist older victims. (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 agency 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 

AFFECTING CONSuMERS’ HEALTH: 

consumers can fall prey to fraudulent health advertising 

when they are desperate for help. The FTC, therefore, 

will continue to challenge deceptive advertising of 

health products. 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. (Objectives 1.1, 1.2, 

1.3, and 1.4)
Management’s Discussion & Analysis

22 Federal Trade Commission | Performance and Accountability Report 

others with taking more than $40 million 

from consumers by falsely claiming that their products and services would help consumers 

start their own Internet businesses. The agency also filed a complaint against National Sales 

Group, alleging that the defendants deceived consumers into paying for their employment 

goods and services by creating a false impression that they were hiring workers themselves, 

or were recruiters affiliated with potential employers. The FTC alleged that these defendants 

caused nearly $8 million in consumer injury. In February 2011, the FTC obtained orders against Ivy 

Capital and National Sales Group that temporarily halted the unlawful practices, froze assets, and 

appointed receivers to take control of the corporate defendants. 

For more information, visit www.ftc.gov/opa/2011/03/emptypromises.shtm.

PROTECTING CHILdREN: 

The FTC will continue to protect children and teens 

from deceptive and unfair practices, as well as continue 

to monitor and encourage self-regulatory efforts 

regarding advertising to children and teens. The agency 

recently proposed amendments to the children’s online 

Privacy Protection Act (COPPA) Rule, which requires 

website operators to obtain verifiable parental consent 

before collecting personal information from children 

under 13 years old. Agency staff is assessing business 

practices involving new technologies, including mobile 

applications, to determine whether they are conducted 

in accordance with the COPPA rule. At the direction of 

Congress, the FTC, the Food and Drug Administration, 

the Centers for Disease Control and Prevention, and 

the U.S. Department of Agriculture issued for public 

comment a proposed set of voluntary principles that 

can be used by industry as a guide for marketing food 

to children. The agencies will consider comments 

submitted by interested parties as they further develop 

and refine final recommendations as required by the 

Congress. Also, the FTC will issue a report in late 2011 

or early 2012, following up on its 2008 report to the 

Congress, regarding industry expenditures and activities 

to market food to children and adolescents. In the 

alcohol advertising arena, the FTC plans to propose 

improvements to self-regulatory standards, continue the 

We Don’t Serve Teens campaign, bring enforcement 

actions targeting unfair or deceptive practices, and 

issue another report to the Congress on self-regulation. 

Further, the agency will monitor the marketing of 
23Management’s Discussion & Analysis

fiscal year 2011

violent entertainment to children and the ability of 

teens under age 17 to purchase age-restricted violent 

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

EVALuATING ENVIRONMENTAL 

MARKETING CLAIMS: 

Green claims, such as claims for carbon reduction, 

landfill reduction, and sustainable materials and 

packaging, have increased in popularity. These claims 

can provide extremely useful information to consumers; 

however, the complexity of the issues involved creates 

the potential for confusing, misleading, and fraudulent 

claims. In October 2010, the FTC proposed revisions 

to the “FTC Guides for the Use of Environmental 

Marketing Claims,” commonly known as the Green 

Guides. The FTC is considering public comments on 

the proposed changes and will decide which changes 

to make final. The agency also will bring cases and law 

enforcement sweeps to address deceptive environmental 

marketing claims, working where possible with state and 

local partners. (Objectives 1.1, 1.2, 1.3, and 1.4)

SERVING HISPANIC ANd AFRICANAMERICAN POPuLATIONS: 

The FTC has conducted fraud surveys showing that 

Hispanic and African-American consumers are more 

likely to be victims of fraud than other demographic 

groups. The FTC will continue to aggressively combat 

consumer fraud against Hispanic and African-American 

consumers. The agency will tailor its consumer 

education messages to different groups, and focus and 

strengthen its strategic partnerships. (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 

in the health care and pharmaceutical industries, high 

technology sectors, and energy industries. The agency will 

also work on promoting sound competition policy at the 

international level and advocating for competition before 

the U.S. courts, legislatures, and government agencies.

PROMOTING COMPETITION ANd 

PREVENTING ANTICOMPETITIVE 

ACTIVITY IN THE HEALTH CARE ANd 

PHARMACEuTICAL INduSTRIES:

The rapidly rising cost of health care, 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. Pay-for-delay patent 

settlement agreements between brand and generic drug 

manufacturers to delay generic competition are causing 

consumers significant harm because they deprive 

consumers of access to lower cost generic drugs. 

According to FTC economists, these anticompetitive 

deals, unless stopped, will cost consumers $35 billion 

over ten years. When appropriate, the FTC investigates 

and challenges anticompetitive patent settlements 

between brand and generic companies and supports 

legislation to eliminate this problem. The agency also 

addresses rising prescription drug prices by monitoring 

and, when appropriate, challenging pharmaceutical and 

medical device company mergers. In addition, the FTC 

stops anticompetitive agreements between physicians 

and hospital service organizations and monitors hospital 

and other mergers that may raise the cost of health 

care. The agency engages in efforts to educate health 

care providers about antitrust law to prevent groups 

of providers from creating and exercising market 

power, which undermines efforts to improve quality 

and control costs. The FTC focuses these education 

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 and the Antitrust Division 

of the department of Justice recently issued guidelines 
Management’s Discussion & Analysis

24 Federal Trade Commission | Performance and Accountability Report 

explaining how the agencies would enforce the antitrust 

laws with regard to ACOs so that the antitrust laws will 

not be perceived as a barrier to bona fide collaboration 

to improve healthcare and reduce costs. The agencies 

will continue to evaluate competitive concerns about 

ACO formation and conduct, and take any enforcement 

action necessary to protect consumers. (Objectives 2.1, 

2.2, and 2.3)

PROMOTING COMPETITION ANd 

PREVENTING ANTICOMPETITIVE 

BuSINESS PRACTICES IN HIGH 

TECHNOLOGY SECTORS:

The continuing importance of technology is a crucial 

marketplace challenge that is placing greater demands 

on antitrust enforcement. The FTC’s antitrust 

In the first workshop, co-hosted by the Federal Trade Commission, the Centers for Medicare 

and Medicaid Services (CMS) and the Department of Health and Human Services’ Office of 

Inspector General, the agencies involved addressed and solicited public comments on the legal 

issues raised by various ACO models being considered by health care providers, while in the 

second workshop. To learn more, visit www.ftc.gov/opp/workshops/aco/index.shtml.

In May 2011, the Federal Trade Commission held a second workshop seeking input on the 

Proposed Statement of Antitrust Enforcement Policy, which discusses how the federal antitrust 

agencies will enforce U.S. antitrust laws when competing health care providers create new 

ACOs under the Affordable Care Act of 2010. To learn more, visit 

www.ftc.gov/opp/workshops/aco2/index.shtml.
25Management’s Discussion & Analysis

fiscal year 2011

PROMOTING COMPETITION ANd 

PREVENTING ANTICOMPETITIVE 

ACTIVITY IN ENERGY INduSTRIES:

The price of gasoline and other energy sources 

continues to be a great concern for consumers, 

businesses, and governments. The agency addresses 

this concern 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 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. In FY 2011, the 

FTC issued a new report on the factors that influence 

the prices that American consumers pay for gas. This 

report, which is an update of two earlier reports on the 

energy industry, shows that the price of oil is still the 

most important factor. The FTC uses its enforcement 

authority to search for anticompetitive nonmerger 

activity such as illegal agreements among competitors, 

monopolization, and other anticompetitive activities. 

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 continues to investigate whether certain oil 

producers, refiners, transporters, marketers, physical or 

financial traders, or others (1) have engaged in practices, 

including manipulation, that 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. (Objectives 2.1 and 2.3)

AdVOCACY ANd COMPETITION POLICY: 

As part of its mission, the FTC promotes sound 

competition policy through advocacy and policy 

initiatives. In June 2011, the Commission hosted a 

workshop addressing legal and policy issues relating 

to intellectual property rights in the context of 

industry standard setting activities. This followed 

the commission’s march 2011 issuance of a report 

recommending improvements to two areas of patent 

law: policies affecting how well a patent gives notice 

of what technology is protected and remedies for 

patent infringement. In addition, the FTC advises 

other government agencies on competition policy. For 

example, in FY 2011, the FTC submitted eight advocacy 

comments addressing state legislative proposals on 

health care related issues ranging from restricting 

services that non-physician health care specialists 

may provide, to creating antitrust law exemptions for 

certain types of health care collaborations among 

providers. Finally, the FTC promotes convergence 

toward sound consumer welfare based competition 

enforcement and policy internationally, both through 

multilateral organizations such as the international 

Competition Network and the Organization for 

economic cooperation and development and through 

bilateral engagement with its enforcement counterparts. 

(Objectives 2.2, 2.3, and 2.4)
Management’s Discussion & Analysis

26 Federal Trade Commission | Performance and Accountability Report 

During FY 2011, 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 

[FISMA] 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 2011, the FTC continued to follow its Internal 

Control Review Plan established in FY 2010 to conduct 

internal control reviews of agency bureaus and offices 

at least once every three years. The objective of the 

reviews is to assist management in identifying highrisk areas and implement appropriate risk management 

strategies where necessary. Two additional reviews 

were conducted this year. The Chairman’s assurance 

statement that follows is supported by the processes 

and reviews described above, which were carried out in 

FY 2011. Management assurances tables appear in the 

Other Accompanying Information Section.
27Management’s Discussion & Analysis

fiscal year 2011

CHAIRMAN’S FMFIA STATEMENT OF ASSuRANCE
Management’s Discussion & Analysis

28 Federal Trade Commission | Performance and Accountability Report 

SuMMARY OF MATERIAL WEAKNESSES 

ANd NONCONFORMANCES

as noted in the chairman’s fmfia statement of 

Assurance, the FTC has no material weaknesses or 

nonconformances to report for FY 2011. No new 

material weaknesses or significant nonconformances 

were identified for the past five years, nor were there 

any existing unresolved weaknesses requiring 

corrective action.

FEdERAL INFORMATION SECuRITY 

MANAGEMENT ACT (FISMA)

As mandated by FISMA, the agency continues to 

maintain an information security program to manage 

information technology national institute of standards 

and Technology (NIST) requirements. Continuous 

monitoring is one of many approaches that the fTc 

employs to protect agency information systems and the 

data that is collected, stored, and transmitted during the 

course of business. The Office of the Chief Information 

Officer (OCIO) has strengthened its continuous 

monitoring program by participating 

in the following Comprehensive National 

Cybersecurity Initiatives:

• Trusted Internet Connection. The FTC has 

contracted with a Managed Trusted Internet 

Protocol service provider to reduce external 

access points, establish baseline security 

capabilities, and validate agency adherence to 

those security capabilities.

• EINSTEIN 2. The FTC participates in the 

department of Homeland security einsTein 

2 program that deploys signature-based sensors 

capable of inspecting Internet traffic entering 

federal systems for unauthorized accesses and 

malicious content.

Additionally, the OCIO has created a robust, repeatable 

change control process that uses automated tools to 

audit, monitor, and report changes made to critical the 

FTC information systems. Furthermore, the FTC has 

performed a certification and accreditation on its new 

Data Center, and has authorized that facility to operate as 

required by NIST. 
29Management’s Discussion & Analysis

fiscal year 2011

Federal Accounting Standards Advisory Board (FASAB). 

For the 15th straight year, the FTC is proud to have 

received an unqualified (clean) opinion on our Audited 

financial statements. The chart below presents a 

snapshot of the changes in key financial statement line 

items that occurred during FY 2011 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 

Assets:

shown in thousands) FY 2011 FY 2010 Percentage

Change

 Fund Balance with Treasury $ 112,225 $ 109,486 3%

 Cash and Other Monetary Assets 44,944 21,473 109%

 Investments 35,443 199,105 -82%

 Accounts Receivable, Net 11,400 48,260 -76%

 General Property & Equipment, Net 19,371 18,060 7%

Total Assets $ 223,383 $396,384 -44%

Liabilities:

 Accrued Redress Receivables Due to Claimants $11,229 $ 38,170 -71%

 Redress Collected not yet Disbursed

 Divestiture Fund Due

84,190

-

180,526

45,523

-53%

-100%

 Accounts Payable and Other 34,768 44,515 -22%

Total Liabilities $ 130,187 $308,734 -58%

Net Position:

Cumulative Results of Operations-Other Funds 93,196 87,650 6%

Total Net Position $ 93,196 $ 87,650 6%

Total Liabilities and Net Position $ 223,383 $ 396,384 -44%

 Gross Cost

 Less: Earned 

COST 

Revenue

SUMMARY FY 2011

$ 298,649

 (106,217) 

FY 2010

$ 275,100

 (87,980) 

Percentage

Change

9%

21%

Net Cost of Operations $ 192,432 $ 187,120 -3%
Management’s Discussion & Analysis

30 Federal Trade Commission | Performance and Accountability Report 

Financial Analysis 

assets. 

The FTC’s Balance Sheet shows total assets of $223 

million at the end of FY 2011, a decrease of $173 million 

or 44 percent compared to total assets of $396 million 

in FY 2010. The overall decrease is primarily attributable 

to distributing a majority of $108 million from one 

significant redress case previously collected near the latter 

part of FY 2010. In addition, during FY 2011 $45 million 

in funds were returned to defendants, which had been 

previously held in a divestiture fund.

Cash and other monetary assets increased by $23 million, 

due primarily to the remaining funds awaiting distribution 

related to the $108 million judgment case. Accounts 

receivable, net decreased by $37 million due to a $12 

million collection of a civil penalty receivable, $9 million 

collected from sale of assets against a redress judgment 

receivable and increased write-offs and allowances of net 

receivable balances existing at the end of FY 2010.

General property & equipment, net increased due to the 

several internal use software developments and purchases 

being placed in service during FY 2011.

ASSETS BY TYPE (Dollars shown in millions)

Accounts receivable, net, $11

Fund balance with 

treasury, $112

Investments, $36

Cash and other monetary 

assets, $45

General Property and 

equipment, net, $19

5%

20%

50%

9%

16%
31Management’s Discussion & Analysis

fiscal year 2011

Divestiture fund due decreased from $45 million in FY 

2010 to $0 in fy 2011 due to the return of funds to 

defendants in FY 2011.

redress collected not yet disbursed is the liability offset 

to collections made on redress cases. The primary 

cause for the decrease of $97 million is the distribution 

of funds from the $108 million judgment previously 

mentioned.

accounts payable and other decreased by $10 million in 

FY 2011, primarily due to the related collection of the 

civil penalty receivable that existed at FY 2010 year-end. 

This collection was disgorged to Treasury, thus reducing 

the liability balance.

LIABILITIES BY TYPE (Dollars shown in millions)

Redress collected not 

yet disbursed, $84

Accrued redress 

receivables due to 

claimants, $11

Accounts Payable and 

Other, $35

27%

65%

8%
Management’s Discussion & Analysis

32 Federal Trade Commission | Performance and Accountability Report 

FY 2011 NET COSTS BY STRATEGIC GOAL

(Dollars shown in thousands)

Strategic Goal 1

Protect Consumers

Strategic Goal 2

Maintain Competition Total

Gross Costs $ 169,334 $129,315 $ 298,649

Less: Earned Revenue (14,223) (91,984) (106,217) 

Net Cost of Operations $ 155,101 $ 37,331 $ 192,432
33Management’s Discussion & Analysis

fiscal year 2011

BuDgetarY resourCes. 

The statement of Budgetary resources (sBr) provides 

information on budgetary resources made available 

to the agency and the status of these resources at the 

end of the fiscal year. New budgetary authority (total 

budgetary resources excluding unobligated balances 

brought forward and prior year recoveries) was $292 

million in FY 2011, a decrease of $1 million or less 

than one percent from the $293 million received in 

FY 2010. Except for a small rescission in FY 2011, the 

appropriation for the FTC in FY 2011 was the same as 

FY 2010.

In FY 2011, spending authority derived from offsetting 

collections totaled $106 million ($91 million for Hsr 

fees, $14 million for DNC Registry and $1 million 

from reimbursable agreements) and general fund 

appropriations totaled $186 million, comprising 36 and 

64 percent of new budget authority, respectively. This 

NEW BUDGET AUTHORITY FOR FY 2011 (Dollars shown in millions)

General fund 

appropriations, $186

Spending authority 

from offsetting 36% collections, $106

64%

compares to offsetting collections of $88 million and 

general fund appropriations of $205 million, comprising 

30 and 70 percent of new budget authority, respectively, 

in FY 2010.

The SBR includes distributed offsetting receipts, which 

are the non-entity and non-budgetary funds recorded in 

the FTC’s miscellaneous receipt account. These receipts 

are composed of disgorgements to the Treasury from 

undistributed funds from the redress program and 

court-appointed receivers. Distributed offsetting receipts 

were $13 million in FY 2011, compared to $7 million in 

FY 2010.
Management’s Discussion & Analysis

34 Federal Trade Commission | Performance and Accountability Report 

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 2011

debT MaNaGeMeNT

Debt Transferred to Treasury 100%

fuNdS MaNaGeMeNT

Fund Balance with Treasury (identifies the difference 

between the fund balance reported in Treasury reports 

and the agency fund balance with Treasury recorded 

in its general ledger on a net basis) 

100% reconciled

PaYMeNT MaNaGeMeNT

Percentage Invoices Paid on Time (per Prompt 

Payment Act) 

97%

Percentage Interest Penalties Paid to Total Dollars 

Invoiced 

0.01%

Percentage of total dollars outstanding in current 

status* (good standing) for Individually Billed Travel 

Account holders 

100%

Percentage of total dollars outstanding in current 

status* (good standing) for Centrally Billed Travel 

accounts 

100%

Percentage of total dollars outstanding in current 

status* (good standing) for Purchase Cards 

100%

*The OMB threshold for delinquency is 61 days.
Performance Section

fiscal year 2011 35
Performance Section

36 Federal Trade Commission | Performance and Accountability Report 

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 resources 

utilized 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 

21

. Generally, this section would also contain the results 

of program evaluations; however, the agency did not 

undergo any significant program evaluations in FY 

2011. For a summary of the agency’s mission summary 

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 strategic 

plan, which was last updated effective FY 2010. The 

performance tables that follow present six fiscal years 

of performance results and targets, except for those 

performance measures first added in the latest strategic 

plan update. These newest performance measures are 

presented starting in FY 2010. 

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 

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. For example, a 

robust staffing strategy with the right mix of tools and 

mechanisms helps the agency meet challenges inherent 

in a constrained fiscal environment while providing 

mission-essential skills and competencies. 

1

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.

Human capital planning encompasses leadership and 

knowledge management, a results-oriented performance 

culture, talent management, and job satisfaction, which 

are evaluated by the Office of Personnel Management’s 

Human capital assessment and accountability 

Framework. More detailed information on human 

capital performance goals and results are provided 

on page 92. 

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 outcome-oriented, they bring the FTC closer to 

determining its role in the ultimate desired outcome 

of a marketplace free of unfair practices that cause 

consumer injury and free of fraud and deception.
37Performance Section

fiscal year 2011

Verification and Validation of 

Performance data

The financial data and performance results described 

in this report enable the fTc to administer its 

programs, gauge their success, and make adjustments 

necessary to improve program quality for the public. 

The Message from the Chairman on p.IV provides tha

the FTC’s financial and performance data presented 

in this report are complete and reliable. The following 

steps outline how the agency ensured the performance

information it reports is complete and reliable:

• Completed an independent review of the 

internal controls over the data collection and 

reporting of performance measures to ensure 

reporting entities had documented adequate 

procedures and checks and balances in the 

reporting process.

• developed policy and documented the 

procedures used to ensure timely reporting of 

complete, accurate, and reliable actual results 

relative to the key performance measures.

• Held program managers accountable to set 

meaningful and realistic targets that also 

challenge the agency to leverage its resources. 

This includes ensuring ongoing monitoring 

of performance targets so they are updated 

to reflect changes in key factors that impact 

the agency’s ability to achieve such results. 

Further, when appropriate, program managers 

are required to explain how they will improve 

performance when targets are not met.

t 

• subjected performance measurement results to 

periodic senior management and commission 

review throughout the fiscal year. This process 

includes substantiating that actual results 

reported are indeed correct whenever those 

results reveal significant discrepancies or 

variances from the target.

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 in place 

over the network that ensure only authorized staff can 

access key systems, each application (system)—such 

as the Consumer Sentinel Network—incorporates 

internal validation edits to ensure the accuracy of data 

contained therein. These application edits include 

checks for reasonableness, consistency, and accuracy. 

Crosschecks between other internal automated systems 

also provide assurances of data reasonableness and 

consistency. In addition to internal monitoring of 

each system, experts outside of the business units 

(e.g., the Bureaus of Consumer Protection and 

Competition) routinely monitor the data collection. 

For example, senior economists from the Bureau of 

Economics review statistical data used by the Bureau 

of Competition to calculate performance results. 

The Financial Management Office is responsible 

for providing direction and support on data 

collection methodology and analysis, ensuring that 

data quality checks are in place, and accurately 

reporting performance management data. Within the 

Performance Section, the FTC has identified the data 

sources for each performance measure.

leGeNd fOr uPcOMiNG PerfOrMaNce SecTiON TableS 

✔ Signifies that the target is met or exceeded

✖ Signifies that the target is not met
Performance Section

38 Federal Trade Commission | Performance and Accountability Report 

Performance Measure summary tables

The tables that follow capture FY 2011 targeted performance compared to actual results and units of measure.

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 2.6 million complaints 

actual

4.0 million complaints 

✔

 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 65.0% of actions

actual

80.4% of actions 

✔

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) Exceeded 

✔

(B) Exceeded 

✔

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

Satisfaction Index

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

Interagency Committee
39Performance Section

fiscal year 2011

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

law enforcement

 Key measure 1.2.1 The percentage of all cases Target 75.0–85.0% of cases

filed by the FTC that were successfully resolved 

through litigation, a settlement, or issuance of a default 

judgment. actual

100.0% of cases 

✔

Performance measure 1.2.2 The FTC’s effectiveness in Target Statistically significant decrease in the 

prevalence of the practice.

stopping prohibited business practices in three high 

priority areas over the next five years.

actual N/A

Performance measure 1.2.3 The percentage of redress Target 90.0% of cases

cases in which the FTC distributes redress dollars 

designated for distribution to consumers within six 

months. actual

100.0% of cases 

✔

Performance measure 1.2.4 Investigations or cases Target 30 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. actual

53 investigations or cases 

✔
Performance Section

40 Federal Trade Commission | Performance and Accountability Report 

Objective 1.3: Prevent consumer injury through education

Target 50 million messages

Performance measure 1.3.1 Consumer protection 

messages accessed online or in print.

41.4 million messages 

actual ✖

Exceed average citizen satisfaction 

Target rate as published in the E-Government 

Satisfaction Index

 Key measure 1.3.2 Customer satisfaction rate 

with an FTC consumer education website or microsite.

Exceeded 

actual ✔

Target 11,300 organizations

Performance measure 1.3.3 Organizations requesting 

consumer education publications. 

14,818 organizations 

actual ✔
41Performance Section

fiscal year 2011

Objective 1.4: enhance consumer protection through research, reports, rulemaking, 

and advocacy

Target 8 workshops and conferences 

Performance measure 1.4.1 Workshops and conferences 

convened or cosponsored that address consumer 

protection problems.

actual 14 workshops and conferences

✔

Target 6 comments and briefs

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.

actual

3 comments and briefs

✖

Target 50.0% of respondents

Performance measure 1.4.3 The percentage of 

respondents finding the FTC’s advocacy comments and 

amicus briefs “useful.”

actual 100.0% of respondents 

✔

 Key measure 1.4.4 The percentage of proposed Target 75.0% of rulemakings

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. actual 83.3% of rulemakings 

✔
Performance Section

42 Federal Trade Commission | Performance and Accountability Report 

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 Target 40 policy inputs

foreign consumer protection and privacy agencies, 

directly and through international organizations, 

through substantive consultations, written submissions, 

or comments. actual 52 policy inputs

✔

Target 8 technical assistance missions or 

international Fellows hosted 

Performance measure 1.5.2 Technical assistance to 

foreign consumer protection and privacy authorities.

actual

15 technical assistance missions or 

international Fellows hosted 

✔
43Performance Section

fiscal year 2011

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 31.8% of substantial investigations

✖

Performance measure 2.1.2 Consumer savings of at 

least $500 million through merger actions to maintain 

competition.

Target $500.0 million

actual

$531.5 million

✔

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

$22.7 billion 

✖

Performance measure 2.1.4 Consumer savings of at least 

six times the amount of FTC resources allocated to the 

merger program. (Efficiency Measure)

Target 600.0%

actual

1,417.3% 

✔

Performance measure 2.1.5 Consumer savings of at 

least $80 million through nonmerger actions taken to 

maintain competition. 

Target $80.0 million

actual

$444.9 million

✔

Performance measure 2.1.6 Actions against 

anticompetitive conduct in markets with a total of at 

least $8 billion in annual sales.

Target $8.0 billion

actual

$11.6 billion

✔

Performance measure 2.1.7 Consumer savings of at least 

four times the amount of FTC resources allocated to the 

nonmerger program. (Efficiency Measure)

Target 400.0%

actual

1,917.7%

✔

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

✔
Performance Section

44 Federal Trade Commission | Performance and Accountability Report 

Objective 2.2: Prevent consumer injury through education

Target 10.0 million hits

 Key measure 2.2.1 Competition resources 

accessed via the FTC’s website. 22.6 million hits 

actual ✔

Objective 2.3: enhance consumer benefit through research, reports, and advocacy

Target 4 workshops, seminars, conferences, and 

hearings

Key measure 2.3.1 Workshops, seminars, 

conferences, and hearings convened or cosponsored 

that involve significant competition-related issues. 4 workshops, seminars, conferences, 

actual and hearings 

✔

Target 8 reports and studies

 Key measure 2.3.2 Reports and studies issued 

on key competition-related topics.

actual 11 reports and studies

✔

 Key measure 2.3.3 Advocacy comments and Target 6 comments and briefs

amicus briefs on competition issues filed with entities 

including federal and state legislatures, agencies or 

courts. actual

16 comments and briefs 

✔

Target 50.0% of respondents

Performance measure 2.3.4 The percentage of 

respondents finding the FTC’s advocacy comments and 

amicus briefs “useful.”

actual 100.0% of respondents 

✔

Target 1.7 million hits

Performance measure 2.3.5 The volume of traffic on 

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

and advocacy. 

actual

1.8 million hits

✔
45Performance Section

fiscal year 2011

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 Target 40 policy inputs

foreign competition agencies, directly and through 

international organizations, through substantive 

consultations, written submissions, or comments. actual 112 policy inputs

✔

Target 10 technical assistance missions or 

international Fellows hosted

Performance measure 2.4.2 Technical assistance 

provided to foreign competition authorities.

actual

27 technical assistance missions or 

international Fellows hosted 

✔

Objective 3.1: Provide effective human resources management

Exceed the government-wide results 

Performance measure 3.1.1 The extent employees Target on the Federal Human Capital Survey’s 

Results-Oriented Performance Culture 

believe their organizational culture promotes Index

improvement in processes, products and services, 

and organizational outcomes. Exceeded

actual ✔

Exceed the government-wide results 

Target on the Federal Human Capital Survey’s 

 Key measure 3.1.2 The extent employees think Talent Management Index

the organization has the talent necessary to achieve 

organizational goals. Exceeded 

actual ✔
Performance Section

46 Federal Trade Commission | Performance and Accountability Report 

Objective 3.2: Provide effective infrastructure and security management

Target 75.0% rating

 Key measure 3.2.1 A favorable Continuity of 

actual

Target

75.0% rating 

✔

98.50% system availability

Operations (COOP) rating.

 Key measure 3.2.2 Availability of information 

technology systems.

actual 99.82% system availability

✔

Objective 3.3: Provide effective information resources management

Target 75.0% of documents Key measure 3.3.1 The percentage of 

Commission-approved documents in ongoing and newly 

initiated FTC proceedings available via the Internet 

within 15 days of becoming part of the public record. actual

82.0% of documents 

✔

Objective 3.4: Provide effective financial and acquisition management

Target Unqualified opinion on the financial 

statements

Performance measure 3.4.1 Independent auditor’s 

financial statement audit results.

actual

Unqualified opinion on the financial 

statements

✔

Target 100.0% of Bureaus/Offices

Key measure 3.4.2 The percentage of Bureaus/

Offices that establish and maintain an effective, riskbased internal control environment.

100.0% of Bureaus/Offices 

actual ✔

Target 23.0% of total small business 

eligible dollars 

Performance measure 3.4.3 Performance against the 

Small Business Administration’s government-wide small 

business procurement goals. 46.3% of total small business 

actual eligible dollars 

✔
47Performance Section

fiscal year 2011

y 

e.
Performance Section

48 Federal Trade Commission | Performance and Accountability Report 

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 toll-free 

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 as online forms dedicated to complaints from 

members of the U.S. Armed Forces and 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. CSN 

encompasses nearly 16.1 million consumer fraud, identity 

theft, financial, and Do Not Call (DNC) complaints that 

the agency has collected since July 2006. 

the FTC staff and law enforcement partners also have 

the ability to search more than 340 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 ensures that the agency’s consumer response center 

is providing satisfactory service responding to consumers.
49Performance Section

fiscal year 2011

complaints were in second place, with 144,159 complaints. The report is available on the FTC’s 

website at www.ftc.gov/sentinel/reports/sentinel-annual-reports/sentinel-cy2010.pdf. 

In the table below, “Percentage” is based on the total number of consumer complaints the FTC 

received in 2010 (1,339,265 complaints). “Compared to 2009” is based on the total number of 

consumer complaints the FTC received in 2009, as of the end of 2009 (1,330,426 complaints).

raNK

1

2

3

4

5

6

7

8

9

10

caTeGOrY

identity Theft

debt collection

internet Services

Prizes, Sweepstakes and lotteries 

Shop-at-Home and catalog Sales

imposter Scams 

internet auctions

foreign Money/counterfeit check 

Scams 

Telephone and Mobile Services

credit cards

NuMber Of 

cOMPlaiNTS

250,854

144,159

65,565

64,085 

60,205 

60,158 

56,107 

43,866

37,388

33,258 

PerceNT 

Of TOTal 

19%

11%

5%

5%

4%

4%

4%

3%

3%

2%

cOMPared 

TO 2009

i From 21%

h From 9%

i From 6%

h From 3%

i From 6%

N/A

fg

i From 5%

N/A

i From 3%
Performance Section

50 Federal Trade Commission | Performance and Accountability Report 

PeRFoRMAnCe MeAsuRe 1.1.1 

ComPlaints ColleCteD anD entereD into the Consumer sentinel 

networK DataBase. (inPut measure – numBers shown in millions.)1

2013 Target 2.8

TarGeT exceeded. 

In FY 2011, the FTC added 4.0 million entries into its database, 154% 

of the target of 2.6 million.

The increased number of complaints in FY 2011 was driven by an 

increase in the number of external data contributors, including the 

Oregon Department of Justice, Washington State Office of the 

Attorney General, Michigan Office of the Attorney General, and the 

2012 Target 2.7

2011

Target 2.6

actual 4.0

2010

Target 2.5

Tennessee Consumer Affairs Division. Furthermore, the database 

now includes complaints from all 122 Better Business Bureaus. The 

number of complaints has otherwise remained steady, with the only 

other significant increase in FY 2008, when, for the first time, the 

total included consumer complaints alleging DNC violations.

Due to the extent by which the FTC exceeded this target in FYs 

2008 and 2009, the agency reevaluated the target in the 2009 

update of the FTC Strategic Plan, significantly increasing the target 

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

Due to the extent by which the FTC exceeded the revised targets in 

FYs 2010 and 2011, the agency again reevaluated the target in 2011, 

and plans to update the performance plan, significantly increasing 

the target for FYs 2012 and 2013. The FTC’s FY 2012 PAR will contain 

the updated targets. 

Data Source: The FTC’s Consumer Sentinel Network database.

1

Effective FY 2011, “and inquires” was dropped from this 

performance measure.

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
51Performance Section

fiscal year 2011

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 65%

TarGeT exceeded. 

In FY 2011, 80.4%, or 41 of 51, of the agency’s actions targeted the 

subject of consumer complaints to the FTC.

Because the agency augments identification of targets from its 

databases with other strategies for generating enforcement leads—

such as ad monitoring, Internet surfs, and direct referrals from 

government and private sector partners—the results vary from 

2012 Target 65%

2011

Target 65.0%

actual 80.4%

2010

Target 65.0%

year to year, and the agency has not increased the target for this 

measure.

Data Source: The FTC’s Consumer Sentinel Network database. 

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
Performance Section

52 Federal Trade Commission | Performance and Accountability Report 

PeRFoRMAnCe MeAsuRe 1.1.3 

the rate of Customer satisfaCtion with the ftC’s Consumer resPonse Center. 

(outCome measure)

2013 Target See (A) and (B)

TarGeT MeT. 

In FY 2011, the average citizen satisfaction score for 

participating federal government websites was 74, and the 

score for the FTC’s website was 75. The standard for call 

centers was 74, and the FTC’s score was 77.

Data Source: Reports from the U.S. Department of the 

Interior’s Federal Consulting Group, the executive agent for 

the American Customer Satisfaction Index (ACSI), which 

is produced by the University of Michigan in partnership 

with the American Society for Quality, ForeSee Results 

and the CFI Group. The ACSI produces the E-Government 

Satisfaction Index.

2012 Target See (A) and (B)

2011

Target see (a) and (B)

actual

(a) exceeded

(B) exceeded

2010

Target see (a) and (B)

actual

(a) exceeded

(B) met

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.
53Performance Section

fiscal year 2011

Performance Results

Key Measure 1.2.1 ensures that the FTC successfully 

resolves cases, though it aims to file large, precedentsetting 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 new 

powers authorized under the “Undertaking Spam, 

Spyware, And Fraud Enforcement With Enforcers 

beyond Borders Act of 2006” (U.S. 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 75.0-85.0%

TarGeT exceeded. 

Of the 121 cases resolved in FY 2011, all were successfully resolved 

through litigation, a settlement, or issuance of a default judgment. 

At the end of FY 2011, an additional 94 cases had not been resolved, 

and remained in litigation.

While the agency significantly exceeded the target, setting the 

2012 Target 75.0-85.0%

2011

Target 75.0-85.0%

actual 100.0% target too high could discourage the filing of large, difficult, or 

precedent-setting cases, including cases that raise challenging legal 

and factual issues.

Data Source: LexisNexis CourtLink, the FTC website, and agency, 

bureau, division, and regional office reports. 2010

Target 75.0-85.0%

actual 99.2%
Performance Section

54 Federal Trade Commission | Performance and Accountability Report 

PeRFoRMAnCe MeAsuRe 1.2.2 

the ftC’s effeCtiveness in stoPPing ProhiBiteD Business PraCtiCes in three high 

PrioritY areas over the next five Years. (outCome measure)

2013 Target Statistically significant decrease in 

the prevalence of the practice.

Stopping deceptive “green” marketing claims 

is one of the FTC’s highest priorities, and the 

agency expects to complete its first study, 

addressing bamboo textiles claims, in FY 2012.

In order to establish a baseline, the FTC 

2012 Target Statistically significant decrease in 

the prevalence of the practice

identified more than 500 websites marketing 

bamboo textiles, and from that group 

developed a representative sample of 70 

websites. After charging four sellers of clothing 

and other textile products with making false 

claims, the agency re-captured the sample 

and analyzed the marketing claims. The FTC 

then sent 78 publically announced letters to 

companies nationwide, warning that they may 2011

Target statistically significant decrease in 

the prevalence of the practice.

be breaking the law. Although the agency 

actual n/a anticipated capturing the sample a third time 

and reporting the study’s results in FY 2011, the 

FTC decided to undertake additional work in 

this area before analyzing the effectiveness of 

Target statistically significant decrease in 

the prevalence of the practice.

its actions on the marketplace. Therefore, final 

results will be reported in FY 2012.

2010

Data Source: Evaluations of the prevalence 

actual n/a of prohibited business practices in the 

targeted areas.

national Do not 

Call registrY

The FTC manages the National Do Not Call Registry, which 

continues to protect consumer from receiving unwanted 

commercial telemarketing calls. The Registry empowers 

consumers to take charge of the commercial telemarketing 

calls they receive. In FY 2011, telephone numbers on the 

Registry exceeded 208 million. It’s fast and free to register 

a number, and registrations never expire. Consumers can 

register online at www.donotcall.gov, or call toll-free 

888-382-1222 (TTY 866-290-4236) from the number they 

wish to register. 
55Performance Section

fiscal year 2011

2013 Target 90.0%

TarGeT exceeded. 

In FY 2011, in 13 of 13 cases or 100%, the FTC distributed redress dollars 

2012 Target 90.0% designated for distribution to consumers within six months.

The agency will continue to monitor the target of this relatively new measure 

and will reassess it after additional performance cycles.

Target 90.0% Data Source: Bureau open redress case status reports.

2011

actual 100.0%

Target 90.0%

2010

actual 96.0%

the ftC seeKs to halt 

10 oPerators of faKe 

news sites from maKing 

DeCePtive Claims aBout 

aCai BerrY weight 

loss ProDuCts

In April 2011, the FTC requested that federal courts 

temporarily halt the allegedly deceptive tactics of 10 

operations using fake news websites to market acai berry 

weight-loss products. According to the FTC, the Internet marketers falsely claimed endorsement 

from ABC, Fox News, CBS, CNN, USA Today, and Consumer Reports. The defendants allegedly 

operated websites that were meant to appear as if they belong to legitimate news-gathering 

organizations, but in reality the sites were simply advertisements aimed at deceptively enticing 

consumers to buy the featured weight-loss products from other merchants. The FTC seeks to 

permanently stop this misleading practice and has asked courts to freeze the operations’ assets 

pending trial. For more information, visit www.ftc.gov/opa/2011/04/fakenews.shtm.
Performance Section

56 Federal Trade Commission | Performance and Accountability Report 

.

2013 Target 30

TarGeT exceeded. 

In FY 2011, the FTC cooperated with its foreign counterparts on consumer 

protection and privacy matters to obtain evidence and other assistance for FTC 

investigations and litigation with numerous jurisdictions including Australia, 

Belize, Canada, Colombia, Costa Rica, the Dominican Republic, El Salvador, 

France, Israel, New Zealand, Peru, the Philippines, and the United Kingdom. 

Foreign agencies assisted the FTC in activities such as locating investigative 

targets and defendants, obtaining corporate records, obtaining witness 

statements, organizing depositions, and providing investigative information. The 

FTC also provided assistance to numerous foreign entities, including pursuant to 

2012 Target 30

2011

Target 30

actual 53 the information-sharing and investigative assistance provisions of the U.S. SAFE 

WEB Act of 2006. In several instances, the information the FTC provided to the 

foreign entity resulted in parallel proceeding or reciprocal assistance to the FTC.

Target 30 The agency will continue to monitor the target of this relatively new measure 

and will reassess it after additional performance cycles.

2010

actual 39 Data Source: Information on the international activities of the FTC is produced by the agency’s Office of International Affairs.

the ftC ComBats immigration 

serviCes sCams

In January 2011, the FTC brought a case against Immigration Center, 

one of several associated companies allegedly participating in a large

Internet scam in which they masqueraded as a U.S. government 

website. At the request of the FTC, a federal judge in June 2011, 

shut down the operation of Manuel and Lola Alban for allegedly 

misrepresenting that it was authorized to provide immigration services

Because immigrants with limited English language proficiency 

often are targeted by scammers who call themselves “immigration 

consultants” or “notarios,” or falsely claim that they are attorneys, the

FTC developed education materials in English, Spanish, Chinese, and 

Korean. As part of the campaign, the FTC rolled out six new radio 

public service announcements in English, Spanish, and Mandarin Chinese that warn about illegal 

notarios and immigration consultants, and direct consumers to the materials on the FTC’s website 

at www.ftc.gov/immigration. For more information, visit www.ftc.gov/opa/2011/06/immigration.shtm. 
57Performance Section

fiscal year 2011

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.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.

In November 2010, the FTC announced a new Business 

Center at www.Business.ftc.gov, that gives business 

owners, attorneys, and marketing professionals the 

tools they need to understand and comply with the 

consumer protection laws, rules, and guides the FTC 

enforces. The Business Center provides practical, 

plain-language guidance about advertising, credit, 

telemarketing, privacy, and a host of other topics. 

A series of short videos explain the bottom line 

about what businesses need to know to comply, and 

the Business Center blog gives readers the latest 

compliance tips and information.

Business Center
Performance Section

58 Federal Trade Commission | Performance and Accountability Report 

PeRFoRMAnCe MeAsuRe 1.3.1 

Consumer ProteCtion messages aCCesseD online or in Print. 

(numBers shown in millions.) 

2013

2012

2011

2010

2009

2008

2007

2006

Target 50.0

TarGeT NOT MeT. 

In FY 2011, the FTC accomplished roughly 88% of its target of 50 

million messages. Of the more than 43.9 million consumer protection 

messages accessed, more than 26.4 million were accessed online and 

nearly 17.5 million were print publications distributed by the FTC.

While the number of print publications distributed remained 

relatively static over the last decade, as more consumers and 

businesses went online, the number of publications accessed through 

the Internet soared before leveling off within the past few years. Also, 

the results underestimate the FTC’s impact. The agency’s partners 

are increasingly opting to post the FTC’s information on their own 

websites, and the agency has also increasingly taken advantage of 

the outreach potential of the “blogosphere.” The FTC is unable to 

measure the number of its consumer protection messages accessed 

on partner websites or blogs. 

Data Source: The agency’s web statistics software (for messages 

accessed online) and the FTC publication inventory (for messages accessed in print).

Target 50.0

Target 50.0

actual 41.4

Target 50.0

actual 43.9

Target 55.0

actual 43.1

Target 50.0

actual 49.2

Target 45.0

actual 47.0

Target 25.0

actual 53.0
59Performance Section

fiscal year 2011

DeBt ColleCtion Consumer 

rights

If you are behind in paying your bills, you can expect to hear from a 

debt collector. A debt collector is someone, other than the creditor, who 

regularly collects debts owed to someone else. Lawyers who collect debts 

on a regular basis are considered debt collectors, too. 

What you need to know: You have rights. Federal law requires that 

collectors treat you fairly. In short, that means: A debt collector may contact you in person, by mail, telephone, 

telegram, or fax, but may not contact you at inconvenient times or places—for example, before 8 a.m. or after 

9 p.m.—unless you agree. A debt collector may not contact you at work if the collector is aware that your 

employer prohibits it. If an attorney is representing you about the debt, the debt collector must contact the 

attorney, rather than you. If you don’t have an attorney, a collector may contact other people only to find 

out your address, your phone number, and where you work. A debt collector may not harass, oppress, or 

abuse you or any third parties they contact about you. A debt collector may not lie or mislead anyone when 

collecting a debt. 

In 2010, as in other recent years, the FTC received more complaints about debt collection than any other 

specific industry. (The FTC does not count any identity theft or Do Not Call Registry complaints that 

may involve debt collection in determining the total number of debt collection complaints.) In its lawsuits 

challenging illegal debt collection practices, the FTC has obtained tough relief against collectors, including 

banning some of them from the business and requiring them to pay millions of dollars in penalties. For more 

information, visit www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-debt-collection.shtml.
Performance Section

60 Federal Trade Commission | Performance and Accountability Report 

Key MeAsuRe 1.3.2 

Customer satisfaCtion rate with an ftC Consumer eDuCation weBsite or miCrosite. 

Exceed average citizen satisfaction 

2013 Target rate as published in the TarGeT MeT. 

E-Government Satisfaction Index In FY 2011, the FTC continued to evaluate 

www.OnGuardOnline.gov, a joint effort of 

the federal government and the technology 

2012 Target

Exceed average citizen satisfaction 

rate as published in the industry, created, maintained, and marketed by 

the FTC to help computer users guard against E-Government Satisfaction Index Internet fraud, secure their computers, and 

protect their personal information. The average 

citizen satisfaction score for participating 

exceed average citizen satisfaction federal government websites was 74, and the 

Target rate as published in the score for www.OnGuardOnline.gov was 81. 

e-government satisfaction index The continued measurement of the website 

2011 over time has allowed the FTC to assess the 

effect of website improvements on customer 

satisfaction.

actual exceeded

Data Source: Reports from the U.S. 

Department of the Interior’s Federal 

Consulting Group, the executive agent for 

the American Customer Satisfaction Index 

(ACSI), which is produced by the University 

of Michigan in partnership 

2010 with the American Society for Quality, 

Target

exceed average citizen satisfaction 

rate as published in the 

e-government satisfaction index

ForeSee Results and the CFI Group. 

actual exceeded The ACSI produces the E-Government 

Satisfaction Index.
61Performance Section

fiscal year 2011

PeRFoRMAnCe MeAsuRe 1.3.3 

organizations requesting Consumer eDuCation PuBliCations. 

2013 Target 11,900 TarGeT exceeded. 

In FY 2011, the FTC accomplished 131% of its target of 

11,300 organizations. 

2012 Target 11,600 The FTC’s campaign for children’s online safety kicked 

off at the start of FY 2010 with the publication of “Net 

Cetera: Chatting with Kids about Being Online.” This 

was followed in FY 2011 by the Net Cetera Community 

Target 11,300 Outreach Toolkit in October 2010, and “Heads Up: Stop. 

Think. Click” in November 2010. Approximately half of 

all orders received during FY 2011 included “Net Cetera” 

2011 materials. In the third quarter of FY 2011, orders began 

returning to expected levels.

actual 14,818 While the target increases over the next few years, 

the agency will continue to monitor performance and 

reassess targets as needed.

Target 11,000 Data Source: The agency’s online order 

system database.

2010

actual 15,375

At www.ftc.gov/lightbulbs, a video and flyer explain how understanding lumens and the new 

Lighting Facts label will help shoppers compare bulbs. For example, lumens, not watts, tell you 

how bright a light bulb is, no matter the type of bulb. The more lumens, the brighter the light. 

Beginning in 2012, the front of light bulb packages will emphasize a bulb’s brightness in lumens, 

instead of the bulb’s energy usage in watts. This new packaging will help consumers select the 

most efficient bulbs that fit their lighting needs and therefore, save money. 

To learn more, visit www.ftc.gov/lightbulbs. 
Performance Section

62 Federal Trade Commission | Performance and Accountability Report 

Performance Results

Public policy that enhances consumer protection 

is based on a thorough understanding of complex 

issues, which arises from dialogue, study, and empirical 

research. Such policy also appreciates 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 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.
63Performance Section

fiscal year 2011

PeRFoRMAnCe 

MeAsuRe 1.4.1 

worKshoPs anD 

ConferenCes ConveneD or 

CosPonsoreD that aDDress 

Consumer ProteCtion 

ProBlems. (outPut measure)

2013 Target 8

TarGeT exceeded. 

2012 Target 8 In FY 2011, the FTC exceeded 

its target and convened or 

cosponsored 14 workshops and 

conferences that addressed 

consumer protection problems. 

These events brought together 

approximately 1,470 participants. 

Due to the extent by which the 

FTC exceeded this target in FY 

2010 and prior years, the agency 

reevaluated the target and updated 

the performance plan, increasing 

the target for FY 2011 and the 

following three years. The agency 

significantly exceeded the revised 

FY 2011 target because it convened 

or cosponsored events, including 

the debt collection technology 

workshop, in anticipation of the 

transfer of certain authorities to the 

new Consumer Financial Protection 

Bureau, resulting in an unusually 

large number workshops and 

conferences.

Data Source: The FTC website 

and agency, bureau, division, and 

regional office reports.

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
Performance Section

64 Federal Trade Commission | Performance and Accountability Report 

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.

2013 Target 6 TarGeT NOT MeT. 

In FY 2011, the FTC filed advocacy 

comments and amicus briefs on 

consumer protection issues such as 

third-party debt collector practices, 

telemarketing calls, and the Home 

2012 Target 6 Mortgage Disclosure Act.

While the agency did not meet 

the target for filing consumer 

protection-related briefs and 

comments, it greatly exceeded 

the target for filing competitionTarget 6 related briefs and comments (see 

discussion of Key Measure 2.3.3 on 

page 86). 

2011 These performance results highlight 

the inherent unpredictability of the 

actual 3 types and number of consumer 

protection 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.

Target 6 The agency will continue to monitor 

the target of this relatively new 

measure and will reassess it after 

2010 additional performance cycles.

Data Source: Internal matter reactual 6 cords of advocacy comments and 

amicus briefs filed.
65Performance Section

fiscal year 2011

PeRFoRMAnCe 

MeAsuRe 1.4.3 

the PerCentage of 

resPonDents finDing the 

ftC’s aDvoCaCY Comments 

anD amiCus Briefs “useful.” 

(outCome measure)

2013 Target 50.0% TarGeT exceeded. 

The FTC mails advocacy recipients 

a survey designed to gauge the 

2012 Target 50.0% usefulness of agency advocacy 

comments and amicus briefs. 

“Usefulness” is assessed by the 

recipient. The target percentage 

Target 50.0% recognizes that comments 

critiquing a recipient’s proposed 

2011 action may not be assessed 

positively. In FY 2011, 1 of 1 survey 

actual 100.0% respondents classified the FTC’s 

submissions as useful. The agency 

will continue to monitor the target 

of this relatively new measure and 

will reassess it after additional 

Target 50.0% performance cycles.

2010 Data Source: A formal written 

survey distributed to advocacy 

actual 100.0% recipients.

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%

TarGeT exceeded. 

Of the six rulemakings completed 

2012 Target 75.0% in FY 2011, five were completed 

within nine months of receipt 

of final comments in the Final 

Notice of Proposed Rulemaking. 

Rulemakings are considered 

2011 completed on the dates the 

Target 75.0%

Commission votes on the rules. The 

actual 83.3% agency will continue to monitor 

the target of this relatively new 

measure and will reassess it after 

Target 75.0% additional performance cycles.

2010 Data Source: The Federal 

actual 100.0% Register and the FTC website.
Performance Section

66 Federal Trade Commission | Performance and Accountability Report 

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. And 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 40 TarGeT exceeded. 

In FY 2011, the FTC provided 

policy advice in 52 instances 

through consultations, written 

2012 Target 40 submissions, or comments. 

Enhanced engagement with new 

and developing foreign consumer 

protection and privacy agencies, as 

well as participation in additional 

Target 40 international organizations that 

are now working on consumer 

2011 protection and privacy issues, has 

resulted in an increased demand 

for the FTC’s policy advice. 

actual 52 The agency will continue to 

monitor the target of this relatively 

new measure and will reassess 

it after additional performance 

Target 40 cycles.

Data Source: Information on the 

2010 international activities of the 

FTC is produced by the agency’s 

actual 64 Office of International Affairs.
67Performance Section

fiscal year 2011

PeRFoRMAnCe 

MeAsuRe 1.5.2 

teChniCal assistanCe 

to foreign Consumer 

ProteCtion anD 

PrivaCY authorities. 

(outPut measure)

2013 Target 8 TarGeT exceeded. 

In FY 2011, the FTC conducted 14 

technical assistance missions and 

hosted one international fellow 

2012 Target 8 relating to the consumer protection 

mission. The FTC received 

funding from the U.S. Agency 

for International Development 

to conduct consumer protection 

technical assistance missions in 

Target 8 Central America, the Dominican 

Republic, Africa (including South 

2011 Africa) and Vietnam. Four of the 

technical assistance missions 

and the international fellow were 

actual 15 funded by the U.S. Agency for 

International Development.

The agency will continue to 

monitor the target of this relatively 

Target 8 new measure and will reassess 

it after additional performance 

cycles.

2010

Data Source: Office of 

actual 23 International Affairs technical assistance calendar.

Resources utilized—

strategic goal 1

(dOLLARS SHOWN IN 

MILLIONS.)

2007 2008 2009 2010 2011

Full-Time 

Equivalents 570 591 597 621 633

Obligations $126 $140 $152 $168 $166

Net Cost $105 $124 $131 $144 $155

Note: Differences between these obligations and net costs and the 

financial statements are due to rounding.
Performance Section

68 Federal Trade Commission | Performance and Accountability Report 

antitrust laws by challenging business practices that could hurt consumers by resulting in higher 

prices, lower quality, or fewer goods or services.
69Performance Section

fiscal year 2011

(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, 

but important, consideration is to conduct each inquiry 

in a way that minimizes the cost or inconvenience to 

businesses, while still enabling the agency to gather 

sufficient information to support each enforcement 

decision. Given the agency’s limited 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, 

energy, real estate, and technology. 

the FTC, the proposed acquisition would have significantly increased Universal Health’s market power 

in these areas, increasing its ability to impose price increases and reducing its incentives to improve 

services. To learn more, visit www.ftc.gov/os/caselist/1010142/index.shtm.
Performance Section

70 Federal Trade Commission | Performance and Accountability Report 

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 

DOJ, which jointly enforce the HSR Act, and wait for a 

specified period (usually 30 days) to allow for antitrust 

review. The 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.

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 the 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 

the ftC Puts 

ConDitions on simon 

ProPertY grouP’s 

aCquisition of Prime 

outlets

The Federal Trade Commission is requiring 

Simon Property Group, Inc. to divest property 

and modify tenant leases as part of a settlement

designed to preserve outlet center competition 

in parts of southwest Ohio, Chicago, Illinois, and 

Orlando, Florida, in the wake of Simon’s purchase of Prime Outlets Acquisition Company, LLC. 

To learn more, visit www.ftc.gov/os/caselist/1010061/index.shtm
71Performance Section

fiscal year 2011

transactions may still be anticompetitive. Consequently, 

the fTc continues to devote attention to the 

identification of unreported, usually consummated, 

mergers that could harm consumers. In FY 2011, the 

agency successfully challenged one such transaction. 

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 

In a settlement taken to preserve competition and protect U.S. consumers from higher health 

care costs, the Federal Trade Commission challenged Grifols S.A.’s proposed acquisition of 

Talecris Biotherapeutics Holdings Corp, a leading plasma-derived drug manufacturer, arguing 

that it would be anticompetitive and would violate federal antitrust laws. In its complaint, the 

FTC alleges that the proposed acquisition would eliminate direct competition for the products 

in three classes of plasma-derived drugs. With fewer competitors in the market, those remaining 

could more easily work together through coordinated interaction to reduce supply and raise 

prices for consumers. The settlement will require Grifols, S.A., a manufacturer of plasma-derived 

drugs, to make significant divestitures as part of a settlement allowing Grifols to acquire a 

leading plasma-derived drug manufacturer. 

To learn more, visit www.ftc.gov/os/caselist/1010153/index.shtm.
Performance Section

72 Federal Trade Commission | Performance and Accountability Report 

In March 2011, the FTC issued the report, The Evolving IP Marketplace: Aligning Patent Notice 

and Remedies with Competition, which describes how the patent system both supports the 

trend toward more open innovation and collaboration and deters innovation through the costs 

imposed by patent assertions entities, sometimes called “patent trolls.” In response to the 

benefits and problems of the patent system, the report recommends changes to improve the 

policies governing patent notice (how well a patent informs the public of what technology is 

protected) and remedies for patent infringement (damages and injunctions). The recommended 

changes would improve how patent law and competition policy further their common goals of 

enhancing consumer welfare and promoting innovation. The report is based on eight days of 

public hearings, public comment and independent research. 

To learn more, visit www.ftc.gov/bc/workshops/ipmarketplace/.
73Performance Section

fiscal year 2011

precedent and the FTC is seeking to establish a new 

legal principle. The FTC also helps consumers and 

businesses by bringing cases to clarify, or improve upon, 

existing precedent.

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) 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 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.
Performance Section

74 Federal Trade Commission | Performance and Accountability Report 

Key MeAsuRe 2.1.1 

aCtions to maintain ComPetition, inCluDing litigateD viCtories, Consent orDers, 

aBanDoneD transaCtion remeDies, restruCtureD transaCtion remeDies, or fix-itfirst transaCtion remeDies in a signifiCant PerCentage of suBstantial merger anD 

nonmerger investigations. (outCome measure)

2013 Target 40.0–60.0% 

TarGeT NOT MeT. 

The agency took action to maintain competition in 14 of the 44 

substantial merger and nonmerger investigations that were closed 

in FY 2011. These 14 actions consist of nine consents, four merger 

transactions that were withdrawn or abandoned as a consequence 

of the antitrust concerns raised during the investigation, and one 

matter won on appeal. This corresponds to 12 merger matters and 

two nonmerger matters. Of the 30 substantial investigations that were 

closed without an action, which includes litigation losses, 14 involved a 

nonmerger matter and 16 a merger matter.

Though the agency did not meet the target in FY 2011, it should be 

noted that in addition to the actions listed above, the Commission also 

obtained a consent in one additional merger investigation and one 

restructured transaction that are excluded from this measure since 

they did not involve the use of compulsory process. (Compulsory 

Process refers to a resolution, or vote, adopted by the Commission that 

authorizes staff to issue subpoenas and civil investigative demands 

(CIDs); it is the adoption of a Compulsory Process resolution that 

would have made these cases fall under the definition of substantial as 

specified by this measure.)

In addition, during FY 2011, the Commission issued two administrative 

complaints challenging hospital mergers it had reason to believe 

were anticompetitive. Since these matters are still pending before 

an Administrative Law Judge, however, they are excluded from this 

measure, even though they represent a significant investment of 

agency resources. 

Data Source: Information to identify “actions to maintain competition” is obtained from press releases, various agency and Bureau 

databases, and internal communications. Press releases are the 

source of information for public actions, such as consent orders 

and the results of judicial review, while internal databases are used 

to identify those matters that were closed without an action being 

taken and to determine if an investigation meets the substantiality 

criteria (i.e., if a second request was issued or whether compulsory 

process was authorized for merger investigations, and the number 

of hours that staff logged to a particular investigation for nonmerger investigations).

1

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%.

2012 Target 40.0–60.0% 

2011

Target 40.0–60.0% 

actual 31.8% 

2010

Target 40.0–60.0% 

actual 40.0%1 
75Performance Section

fiscal year 2011

2013 Target $500.0

TarGeT exceeded. 

IIn FY 2011, the FTC exceeded the target, saving consumers 

an estimated $531.5 million, as calculated using the average 

consumer savings for the current fiscal year and the 

previous four years. 

Data Source: Estimates of consumer savings associated 

with merger actions are prepared by the lead attorney 

responsible for an individual investigation, and subsequently subject to review by staff economists. In the 

absence of case specific information (such as price and 

sales data), the estimate is generated using the volume 

of commerce in the affected markets as a basis for the 

calculation.

2012 Target $500.0

2011

Target $500.0 

actual $531.5

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
Performance Section

76 Federal Trade Commission | Performance and Accountability Report 

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 $22.7 billion, or 90.8% of the 

annual target, as calculated using the average of the current fiscal volume of 

commerce year and the previous four years. During FY 2011, the FTC obtained 

positive results in 12 merger matters, resulting in eight consent agreements, 

and four transactions that were abandoned 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. In all eight consent agreements in FY 2011, 

the parties agreed to divest certain crucial assets to resolve the competitive 

concerns raised by the Commission.

Although the agency did not meet the target in FY 2011, as in the case of 

Performance Measure 2.1.1, it should be noted that there were two additional 

merger investigations, which were resolved with a consent or a restructured 

transaction, but are excluded from this measure because they did not involve 

the use of compulsory process.

Data Source: Estimates of the volume of commerce associated with merger actions are prepared by the lead attorney responsible for an individual 

investigation, and subsequently subject to review by staff economists. 

The estimate is generated using the volume of commerce for the affected 

markets using public sources and confidential data submitted by the parties during the course of the investigations.

2012 Target $25.0

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
77Performance Section

fiscal year 2011

2013 Target 600.0%

TarGeT exceeded. 

During FY 2011, the agency saved consumers approximately 14 times the amount 

of resources devoted to the merger program, as calculated using the five-year 

average consumer savings obtained under Performance Measure 2.1.2 ($531.5 

million) divided into the amount of resources used in the current fiscal year. 

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.

Due to the extent by which the FTC exceeded this target in FY 2011 and prior 

years, the agency reevaluated the target and plans to update the performance 

plan, significantly increasing the target for FY 2012 and the following two years. 

The FTC’s FY 2012 PAR will contain the updated targets.

Data Source: The ratio of consumer savings in merger actions to the amount 

of resources allocated to the merger program is calculated using data on 

consumer savings obtained under Performance Measure 2.1.2, divided into 

the amount of monetary resources expended on the merger program as 

reported by the FTC’s Financial Management Office.

2012 Target 600.0%

2011

Target 600.0%

actual 1,417.3%

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
Performance Section

78 Federal Trade Commission | Performance and Accountability Report 

2013 Target $80.0

TarGeT exceeded. 

In FY 2011, the FTC obtained estimated savings to consumers of approximately 

$444.9 million, as calculated using the average consumer savings of the current 

fiscal year and the previous four years.

The reason that the agency has exceeded the target by such a margin is in 

large part attributable to one particular case, which involved Intel Corporation, 

the world’s leading computer chip maker, who was charged with illegally using 

its dominant market position for a decade to stifle competition and strengthen 

its monopoly. Because of how this measure is calculated, this particular case 

will continue to influence the performance results under this measure for the 

next three fiscal years. Due to this situation, the agency reevaluated the target 

and plans to update the performance plan, significantly increasing the target 

for FY 2012 and the following two years. The FTC’s FY 2012 PAR will contain the 

updated targets.

Data Source: Estimates of consumer savings associated with nonmerger 

actions are prepared by the lead attorney responsible for an individual 

investigation, and subsequently subject to review by staff economists. In 

the absence of case specific information (such as price and sales data), the 

estimate is generated using the volume of commerce in the affected 

markets as a basis for the calculation.

2012 Target $80.0

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
79Performance Section

fiscal year 2011

2013 Target $8.0

TarGeT exceeded. 

The FTC’s positive nonmerger results affected markets 

in which the total estimated volume of commerce was 

approximately $11.6 billion, almost 1.5 times the targeted 

amount, as calculated using the volume of commerce of the 

current fiscal year and the previous four years. During FY 

2011, the FTC obtained positive results in two nonmerger 

matters.

As mentioned under Performance Measure 2.1.5, the reason 

that the agency has exceeded the target by such a margin 

is in large part attributable to one particular case, which 

involved Intel Corporation.

Because of how this measure is calculated, this particular 

case will continue to influence the performance results 

under this measure for the next three fiscal years. Due to 

this situation, the agency reevaluated the target and plans 

to update the performance plan, significantly increasing the 

target for FY 2012 and the following two years. The FTC’s 

FY 2012 PAR will contain the updated targets.

Data Source: Estimates of the volume of commerce associated with nonmerger actions are prepared by the 

lead attorney responsible for an individual investigation, 

and subsequently subject to review by staff economists. 

The estimate is generated using the volume of commerce for the affected markets using public sources and 

confidential data submitted by the parties during the 

course of the investigations.

2012 Target $8.0

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
Performance Section

80 Federal Trade Commission | Performance and Accountability Report 

performance 

Measure 2.1.7 

Consumer savings of 

at least four times 

the amount of FTC 

resources allocated

to the nonmerger 

program. (Efficiency

Measure)

2013 Target 400.0%

TarGeT exceeded. 

During FY 2011, the agency saved consumers 

approximately 19 times the amount of 

resources it devoted to the nonmerger 

enforcement program. This is largely 

attributable to the consumer savings from 

one particular case from FY 2010 involving 

Intel Corporation. 

Because this particular case will continue to 

influence the performance results under this 

measure for the next three fiscal years, the 

agency reevaluated the target and plans to 

update the performance plan, significantly 

increasing the target for FY 2012 and the 

following two years. The FTC’s FY 2012 PAR 

will contain the updated targets.

Data Source: The ratio of consumer savings in nonmerger enforcement actions 

to the amount of resources allocated to 

the merger program is calculated using 

data on the five-year average consumer 

savings obtained under Performance 

Measure 2.1.5 ($444.9 million), divided 

into the amount of monetary resources 

expended on the nonmerger program 

as reported by the FTC’s Financial 

Management Office.

2012 Target 400.0%

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

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. 

(Outcome Measure)

2013 Target 90.0% TarGeT exceeded. 

In FY 2011, the agency had almost 50 

substantive contacts with counterpart 

2012 Target 90.0% agencies around the world including in 

Australia, Canada, China, Germany, Spain, 

France and Turkey. The agency obtained 

compatible outcomes in the 12 cases that 

Target 90.0% were completed within the fiscal year. While 

2011 the agency will continue to strive for 100% 

success, the target reflects the possibility of 

inconsistent outcomes, particularly as new 

antitrust agencies come on line. However, 

at this time the FTC believes that the target 

remains appropriate.

actual 100.0%

Target 90.0%

Data Source: Information on the interna2010 tional activities of the FTC is produced 

by the agency’s Office of International 

actual Affairs. 100.0%
81Performance Section

fiscal year 2011

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 antitrust-related 

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 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. 
Performance Section

82 Federal Trade Commission | Performance and Accountability Report 

The results of this measure 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 10.0

TarGeT exceeded. 

During FY 2011, the agency estimates that the hits on the 

FTC web site’s competition resources number 22.6 million, 

which exceeds the established target by over 100%. 

The target of 10 million was set by the agency in its last 

Strategic Plan, taking into account the new tracking 

software that the FTC uses to monitor web traffic on its 

2012 Target 10.0

2011

Target 10.0

actual 22.6

2010

Target 10.0

website and by extrapolating from information on traffic 

flows in recent years.

Notwithstanding that the agency set the target at what it 

considered to be a reasonable level, the amount of traffic 

registered in FY 2011 and in FY 2010 has climbed to such an 

extent that the agency reevaluated the target and plans to 

update the performance plan, significantly increasing the 

target for FY 2012 and the following two years. The FTC’s 

FY 2012 PAR will contain the updated targets.

Data Source: The agency’s web statistics software. 

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
83Performance Section

fiscal year 2011

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. 

down.’ In addition to the price of crude oil, by far and away the largest factor in gasoline prices, 

the report looks at factors such as how fast retail gas prices adjust to changes in wholesale gas 

and crude oil prices; refinery profit margins; and the possible impact of futures speculation. It 

also examines the effect of OPEC – a cartel that tries to restrict oil output, and which would be a 

criminal conspiracy if it were run by companies rather than countries.” 

To learn more, visit www.ftc.gov/opa/2011/09/gasprices.shtm
Performance Section

84 Federal Trade Commission | Performance and Accountability Report 

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.

2013 Target 4

TarGeT MeT. 

During FY 2011, the FTC held four 

conferences on competition-related 

topics, including the legal issues raised 

by Accountable Care Organizations 

(ACOs) and the legal and policy 

issues relating to intellectual property 

rights and collaboratively set industry 

standards. The workshops on ACOs, 

cohosted with the Centers for 

Medicare & Medicaid Services and 

the Department of Health and Human 

Services’ Office of Inspector General, 

brought together approximately 450 

participants, including physicians, 

physician associations, hospitals, health 

systems, payers, consumers, and other 

interested parties. The workshop 

on intellectual property rights and 

standard setting brought together just 

under 100 attendees between industry 

representatives, trade associations, 

regulators and academicians.

Data Source: Information on conferences involving significant competition related issues is taken from the 

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

2012 Target 4

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
85Performance Section

fiscal year 2011

key Measure 2.3.2 

Reports and studies 

issued on key

competition-related

topics. (Output Measure)

2013 Target 8

TarGeT exceeded. 

In FY 2011, the FTC issued 11 reports 

on competition-related matters, thus 

exceeding the annual target. The 

reports addressed topics such as the 

interaction between the patent system 

and competition policy in fostering 

innovation, the impact of authorized 

generic drugs, trends in the petroleum 

industry, ethanol market concentration, 

and oil and gas activities.

Data Source: Information on studies 

and reports on significant competition-related issues is taken from the 

FTC website (www.ftc.gov/be/research.shtm and www.ftc.gov/reports/

index.shtm).

2012 Target 8

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
Performance Section

86 Federal Trade Commission | Performance and Accountability Report 

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)

TarGeT exceeded. 

2013 Target 6

In FY 2011, the FTC filed advocacy 

comments and amicus briefs on 

competition issues such as cooperative 

agreements among health care 

providers, mail order pharmacies, and 

2012 Target 6 the sale of optical goods.

While the agency greatly exceeded the 

target for filing competition-related 

briefs and comments, it did not meet the 

Target 6

target for filing consumer protectionrelated briefs and comments (see 

discussion of Performance Measure 1.4.2 

on page 64). These performance results 

2011 highlight the inherent unpredictability 

of the types and number of competition 

issues that might arise before federal 

actual 16 and state government bodies and 

therefore the types of comments and 

briefs that the agency might file in 

response.

The agency will continue to monitor the 

Target 6 target of this relatively new measure 

and will reassess it after additional 

2010 performance cycles.

Data Source: Internal matter records 

actual 17 of advocacy comments and amicus

briefs filed.

Authorized Generic Drugs 

Impact Competition and

Reduce Prices

The Federal Trade Commission issued a final report on 

authorized generic drugs that concludes when pharmaceutical 

companies introduce an authorized generic version of their 

brand-name drug, it can reduce both retail and wholesale drug 

prices. The report also found that authorized generics have a 

substantial effect on the revenues of competing generic firms. 

Over the longer term, by lowering expected profits for generic 

competitors, the introduction of an authorized generic could 

affect a generic drug company’s decision to challenge patents 

on branded drug products with low sales. To learn more, visit 

www.ftc.gov/opa/2011/08/genericdrugs.shtm

Authorized Generic Drugs: 

Short-Term Effects and Long-Term Impact

Federal Trade Commission 

August 2011
87Performance Section

fiscal year 2011

PeRFoRMAnCe 

MeAsuRe 2.3.4 

the PerCentage of 

resPonDents finDing 

the ftC’s aDvoCaCY 

Comments anD amiCus 

Briefs “useful.” (outCome 

measure)

2013 Target 50.0%

TarGeT exceeded. 

The FTC mails advocacy recipients a 

2012 Target 50.0% survey designed to gauge the usefulness 

of agency advocacy comments and 

amicus briefs. “Usefulness” is assessed 

by the recipient. The target percentage Target 50.0%

recognizes that comments critiquing 

2011 a recipient’s proposed action may not 

be assessed positively. In FY 2011, 5 of actual 100.0% 5 survey responses classified the FTC’s 

submissions as useful. The agency will 

continue to monitor the target of this Target 50.0% relatively new measure and will reassess 

it after additional performance cycles. 2010

Data Source: A formal written survey actual 100.0%

distributed to advocacy recipients.

asK what the ftC 

woulD Do

The Bureau of Competition of the Federal Trade 

Commission has developed a guidance document 

for consumers and businesses who are considering 

filing a request for an advisory opinion from the FTC 

or its staff on competition topics. Advisory opinions 

allow requesters to obtain industry guidance where 

a matter involves a substantial or novel question 

of fact or law and there is no clear Commission or court precedent. Under the FTC’s Rules of 

Practice, the FTC or its staff may offer industry guidance in the form of an advisory opinion, 

in response to a request involving a proposed course of conduct. The Rules also explain how 

to request confidential treatment for submitted materials. Advisory opinions serve a public 

informational function, in addition to their value to the requesters. To learn more, visit www.ftc.

gov/bc/healthcare/industryguide/advop-general.pdf
Performance Section

88 Federal Trade Commission | Performance and Accountability Report 

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 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 

2011, approximately 1.8 million visits met 

the criteria set by this measure.

Data Source: The agency’s web statistics software.

2012 Target 1.7

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
89Performance Section

fiscal year 2011

e

b

o

t

i

s

c

A

T

officials to share insights on law enforcement and polic

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.

y 

u.s. anD China sign 

historiC memoranDum of 

unDerstanDing 

In July, the FTC, the DOJ, and the three agencies responsible for 

enforcing China’s Antimonopoly Law signed a historic Memorandum 

of Understanding (MOU) to denote a new era of cooperation between 

the antitrust agencies of the United States and China. The MOU 

provides for periodic high-level consultations among all five agencies 

as well as separate communications between individual agencies. “In 

the three years since China’s antimonopoly law came into effect, its 

nforcement agencies have risen in prominence and have quickly developed many of the important analytical techniques used 

y leading antitrust agencies around the world,” FTC Chairman Jon Leibowitz said. “We look forward to continuing to share 

ur experiences with China’s enforcement agencies as they confront many of the same challenges in implementing their laws 

hat other agencies have faced, and we are confident that China will continue to build its agencies and enforcement mechanisms 

n positive ways.” The MOU formalizes a robust relationship that has developed between the FTC and the Chinese agencies 

ince well before the Antimonopoly Law was passed. The FTC has engaged in close policy dialogue with the Chinese agencies, 

onducted numerous training workshops for the Chinese agencies since 2007, and recently hosted a staff member from the 

ntimonopoly Bureau of the Ministry of Commerce under the FTC’s International Fellows Program. 

o learn more, visit www.ftc.gov/opa/2011/07/chinamou.shtm.
Performance Section

90 Federal Trade Commission | Performance and Accountability Report 

2013 Target 40 TarGeT exceeded. 

In FY 2011, the FTC provided policy 

advice to foreign competition 

agencies in over 100 instances through 

2012 Target 40 consultations, written submissions, or 

comments. The FTC’s policy advice 

continues to grow as a result of the 

increasing number of jurisdictions 

Target 40 enforcing competition laws, the 

FTC’s participation in international 

2011 organizations, and the FTC’s growing 

engagement with key jurisdictions such 

actual 112 as China, India, Mexico, and Brazil.

The agency will continue to monitor the 

target of this relatively new measure 

and will reassess it after additional 

Target 40 performance cycles.

2010 Data Source: Information on the 

international activities of the FTC is 

actual 76 produced by the agency’s Office of 

International Affairs.

PeRFoRMAnCe 

MeAsuRe 2.4.2 

teChniCal assistanCe 

ProviDeD to foreign 

ComPetition authorities. 

(outPut measure)

2013 Target 10

TarGeT exceeded. 

In FY 2011, the FTC conducted 21 

2012 Target 10 technical assistance missions and 

hosted six international Fellows. Thirteen 

of the technical assistance missions 

and two international Fellows were 

Target 10 funded through outside sources such 

2011 as from U.S. Agency for International 

Development and the U.S. Trade and 

Development Agency. 

The agency will continue to monitor 

actual 27

the target of this new measure and will 

Target 10 reassess it after additional performance 

2010 cycles.

actual 60 Data Source: Office of International 

Affairs technical assistance calendar.
91Performance Section

fiscal year 2011

ResouRCes utilized—stRAtegiC goAl 2

(dOLLARS SHOWN IN MILLIONS.)

2007 2008 2009 2010 2011

Full-Time Equivalents 489 502 509 512 522

Obligations $94 $103 $113 $123 $125

Net Cost ($47) $2 $68 $43 $37

Note: Differences between these obligations and net costs and the financial statements are due to rounding.
Performance Section

92 Federal Trade Commission | Performance and Accountability Report 
93Performance Section

fiscal year 2011

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 2011, 

the FTC had a response rate of 59 percent (597 of 

1,012 employees responded) and continues to rank 

in the top tier of the 37 agencies surveyed that have 

more than 1,000 full-time employees. The survey 

includes 84 questions that measure how effectively 

agencies manage their workforces. The FTC ranked 

second of 37 agencies in Leadership and Knowledge 

Management, Results-Oriented Performance Culture, 

and Talent Management, and fifth of 37 agencies in Job 

Satisfaction. The FTC was at least five points higher 

than the government-wide average on 59 of the 84 

questions, and did not fall more than five points below 

the government-wide average on any question.
Performance Section

94 Federal Trade Commission | Performance and Accountability Report 

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

Exceed the government-wide 

results on the Federal Human 

Capital Survey’s Results-Oriented 

Performance Culture Index

TarGeT MeT. 

The government-wide results were 54% and 

the FTC received 66%.

Exceed the government-wide Compared to 37 other departments and 

2012 Target results on the Federal Human 

Capital Survey’s Results-Oriented 

agencies with more than 1,000 full-time 

employees, the FTC took second place in 

Performance Culture Index Leadership and Knowledge Management and 

Results-Oriented Performance Culture.

Data Source: 2011 Federal Employee 

Target Viewpoint Survey.

exceed the government-wide 

results on the federal human 

Capital survey’s results-oriented 

Performance Culture index

2011

actual exceeded

exceed the government-wide 

Target results on the federal human 

Capital survey’s results-oriented 

Performance Culture index

2010

actual exceeded
95Performance Section

fiscal year 2011

Exceed the government-wide results on 

2013 Target the Federal Human Capital Survey’s Talent TarGeT MeT. 

Management Index The government-wide results were 

60% and the FTC received 70%.

Exceed the government-wide results on 

2012 Target the Federal Human Capital Survey’s Talent Compared to 37 other departments 

Management Index and agencies with more than 

1,000 full-time employees, the 

FTC took second place in Talent exceed the government-wide results on Management. Target the federal human Capital survey’s talent 

management index Data Source: 2011 Federal 2011 Employment Viewpoint Survey.

actual exceeded

exceed the government-wide results on 

Target the federal human Capital survey’s talent 

management index

2010

actual exceeded
Performance Section

96 Federal Trade Commission | Performance and Accountability Report 

Performance Results

Two performance measures are used to gauge achievement 

of this objective. First, the FTC uses FEMA’s annual 

testing of COOP programs. The testing is captured as 

Performance Measure 3.2.1 and includes participation in 

the federal Executive Branch continuity alert, notification, 

and deployment procedures as well as interagency 

communications. The agency also annually reviews its 

continuity capability, as well as its ability to identify and 

prioritize essential functions and conduct operations from 

pre-planned alternate locations. Specifically, this measure 

represents performance in a series of exercises known as 

“Eagle Horizon.” The exercises allow the Executive Branch

to implement integrated, overlapping national continuity 

concepts in order to ensure the preservation of our 

government and the continuing performance of essential 

functions. These services provided by the government at 

all levels and the private sector affect the everyday lives 

of citizens and customers. 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.

In FY 2011, FEMA added more in-depth measurements 

of the inner workings of the agencies COOP program 

and this year’s “table top” exercise, e.g., a condensed 

exercise, for all agencies was used to benchmark these 

new measurements. Most of these new measurements 

will be included in the full response exercise planned for 

FY 2012. The FTC has plans in place to address the new 

measurements.

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 almost 30 critical information 

technology services including: email, the FTC-specific 

and custom applications and systems, BlackBerry servers, 

Internet/Intranet, telecommunications (includes phone 

and voicemail services), Wide Area Network, the agency’s 

website (www.ftc.gov), Secure Access for Employees, and 

enterprise-wide customer applications.

2013 Target 75.0%

TarGeT MeT.

2012 Target 75.0% The FTC’s grade of 75% for the Eagle Horizon program compared to last year 

reflects the agency’s mixed response to new requirements implemented at the 

2011

Target 75.0% conclusion of last year’s test. One of these new requirements involves moving 

much of the FTC network processes to an offsite computer facility. This disaster 

recovery related effort is intended to ensure the agency’s continued support of 

the American consumer despite the availability of a specific building. To address 

this requirement, the agency will continue to look at possible cloud computing 

options that will meet disaster recovery needs specific to the FTC.

Data Source: FEMA’s Continuity Evaluation Tool.

actual 75.0%

2010

Target 75.0%

actual 85.0%
97Performance Section

fiscal year 2011

2013 Target 99.5% TarGeT MeT. 

The FTC’s information technology 

services pool averaged 99.82% 

availability, exceeding the target of 

98.50%. The primary reason for the 

2012 Target 99.0% increase in uptime is a recent shift from 

older equipment to new virtual machines 

and centralized storage. The completion 

of the OCIO’s Data Center Initiative and 

the implementation of other planned 

Target 98.50% infrastructure upgrades during FY 2012 

will improve system availability even 

further. OCIO will continue to replace 

2011 outdated hardware and software, which 

has reached the end of its lifecycle, with 

new components that will provide high 

actual 99.82% availability and quicker recovery.

Note: Results for this performance 

measure are presented to two decimals 

because rounding the number materially 

changes the result.

Target 98.00%

Data Source: OCIO’s Monthly System 

2010 Availability Report. 

 1This is a correction to the results reported in the 

FY 2010 PAR, which showed the results for the 

actual 99.77%1

final quarter of the fiscal year, or 99.86%, and 

not cumulative results.

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 is 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 

agencywide 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, 

when NARA approves it, will authorize 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 will be 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 2011, the 

FTC initiated ERCRs of the main public website, www.

ftc.gov, the Consumer Response Systems and Services 

(crss) (a collection of online consumer protection 

services) and the matter management system 2 (a 

system that records, tracks, and reports administrative 

and statistical information on FTC law enforcement and 

regulatory matters).
Performance Section

98 Federal Trade Commission | Performance and Accountability Report 

In addition, as part of effective information resources 

management, the FTC is identifying and implementing 

business process improvements through effective use 

of technology. For example, the FTC developed and is 

using a web based e-filing system for public filings in 

all administrative litigation proceedings under Part 3 of 

the FTC Rules of Practice. Designed in the footprint 

of systems used by the federal courts, the FTC’s e-filing 

system enables parties to the agency’s administrative 

proceedings to file public documents electronically 

rather than in paper format.

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 Commissionapproved 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 timely availability of 

public documents 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.

2013 Target 80.0% TarGeT exceeded. 

 FY 2011, 82% of documents tracked 

under this measure, 250 out of 305, 

2012 Target 80.0% were posted to the Internet within 15 

days of becoming part of the public 

record. 

This year, the performance actual is 

Target 75.0% based on comprehensive counts. In FY 

2010, the performance result was an 

2011 estimate based on samples from the first 

two quarters and actual counts for the 

actual 82.0% remaining quarters.

The target for this performance measure 

will increase starting in FY 2012. The 

FTC plans to obtain at least FY 2012’s 

Target 75.0% performance actuals before considering 

whether to adjust the target for FY 2013.

2010 Data Source: Internal records from 

actual 93.8% the Office of the Secretary and the 

Records and Filings Office.
99Performance Section

fiscal year 2011

offices occur at least once every three years. The 

objective of the reviews is to assist management in 

identifying high risk areas and implement appropriate 

risk management strategies where necessary. In addition, 

the fTc is aligning resources to strategic priorities and 

outcomes to focus the agency on the most important 

tasks and programs and implementing best business 

solutions to accomplish our goals through world-class 

acquisition and business processes.

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 

governmentwide small business procurement goals.
Performance Section

100 Federal Trade Commission | Performance and Accountability Report 

2013

2012

2011

Target Unqualified opinion on the 

financial statements TarGeT MeT. 

The agency received a “clean” 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.

Data Source: Independent auditor’s opinion. 

Target Unqualified opinion on the 

financial statements

Target unqualified opinion on the 

financial statements

actual unqualified opinion

Target unqualified opinion on the 

financial statements

2010

actual unqualified opinion
101Performance Section

fiscal year 2011

2013 Target 100.0%

TarGeT MeT. 

The Statements of Assurance (SOA) 

submitted by the agency’s major 

components provide the basis for the 

measurement of the effectiveness of 

the FTC’s risk-based internal control 

2012 Target 100.0%

2011

Target 100.0%

actual 100.0% environment.

Each component completed 

questionnaires specific to its functions 

that addressed the Government 

Target 100.0%

Accountability Office’s, “Standards of 

Internal Control” and other internal 

documentation supporting the SOA. 

This information was reviewed by the 

agency’s internal control management.

In addition, the Financial Management 

2010 Office conducted two additional 

reviews in accordance with its Internal 

actual 100.0% Control Review Plan established in FY 

2010. Based on the SOAs and these 

internal reviews, this performance 

measure is met by 100% of the 

Bureaus/Offices. 

Data Source: The Statements of 

Assurance submitted by the agency’s 

thirteen major components. 

2013 Target 23.0%

TarGeT exceeded. 

This measure encompasses contracts 

to organizations classified as small 

2012 Target 23.0%

2011

Target 23.0% businesses in accordance with 

Federal Acquisition Regulation 19, i.e., 

open market procurements. The FY 

2011 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 

actual 46.3%

Target 23.0%

for this performance measure because 

the target is established nationwide 

2010 by the Small Business Administration 

actual 58.9% without the FTC’s direct input.

Data Source: The Federal 

Procurement Data System—Next 

Generation
Financial Section

102 Federal Trade Commission | Performance and Accountability Report 
Financial Section

fiscal year 2011 103
Financial Section

104 Federal Trade Commission | Performance and Accountability Report 

MessAge FRoM the ChieF 

FinAnCiAl oFFiCeR

During Fiscal Year (FY) 2011, the Federal Trade 

commission (fTc) upheld its commitment to protect 

consumers and promote competition in a fiscally 

responsible manner. I am pleased to report that FY 

2011 marks the 15th consecutive year that the FTC has 

received an unqualified (clean) opinion on our financial 

statements. This achievement, along with other notable 

successes, demonstrates our commitment to effective 

financial management and to upholding high standards 

of accountability. Other key accomplishments this past 

fiscal year included:

• returning more than $116 million in redress 

funds to victims of fraud and scams following 

successful prosecution of defendants resulting 

in court-ordered judgments or settlements.

• Receiving, for the fourth consecutive year, 

the association of Government accountants’ 

Certificate of Excellence in Accountability 

Reporting.

• Awarding 46 percent of the total “small 

business eligible dollars” to small businesses, 

which substantially exceeded the Small Business 

Administration’s Government-wide goal.

• 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.

The financial section of this report explains our 

financial position as of September 30, 2011, and shows 

how financial resources were used to protect consumers 

and maintain competition, as shown in our performance 

results. We achieved these results, despite a tight fiscal 

environment, through the dedicated efforts of our 

talented and committed staff. 

We remain mindful that we face an increasingly austere 

financial future, and will continue to emphasize the 

importance of good financial management and costsaving efforts that enhance operational efficiency. We 

look forward with confidence as we continue to achieve 

results for the American consumer.

Steven A. Fisher

Chief Financial Officer

November 15, 2011
105Financial Section

fiscal year 2011
Financial Section

106 Federal Trade Commission | Performance and Accountability Report 
107Financial Section

fiscal year 2011
Financial Section

108 Federal Trade Commission | Performance and Accountability Report 
109Financial Section

fiscal year 2011
Financial Section

110 Federal Trade Commission | Performance and Accountability Report 
111Financial Section

fiscal year 2011

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.
Financial Section

112 Federal Trade Commission | Performance and Accountability Report 

F

B

A

(

2011 2010

Assets (Note 2):

Intragovernmental:

 Fund balance with Treasury (Note 3) $ 112,225 $ 109,486 

 Investments (Note 5) 35,443 199,105

 Accounts receivable, net (Note 6) 26 71 

 Total intragovernmental 147,694 308,662 

 Cash and other monetary assets (Note 4) 44,944 21,473 

 Accounts receivable, net (Note 6) 11,374 48,189

 General property and equipment, net (Note 7) 19,371 18,060 

Total Assets $ 223,383 $ 396,384 

 Liabilities:

Intragovernmental:

Accounts payable $ 444 $ 188

Other (Note 9) 1,430 12,574

 Total intragovernmental 1,874 12,762 

 Accounts payable 15,416 11,112 

 Accrued redress receivables due to claimants 11,229 38,170 

 Redress collected but not yet disbursed 84,190 180,526 

 Divestiture fund due - 45,523

 Other (Note 9) 17,478 20,641 

Total Liabilities (Note 8 and 9) $ 130,187 $ 308,734 

 Net Position (Note 1(o)):

Cumulative results of operations - other funds 93,196 87,650 

Total Net Position $ 93,196 $ 87,650

Total Liabilities and Net Position $ 223,383 $ 396,384 

The accompanying notes are an integral part of these statements.
113Financial Section

fiscal year 2011

FedeRAl tRAde CoMMission

STATEMENT OF NET COST

FOR THE YEARS ENdEd SEPTEMBER 30, 2011 ANd 2010

(dollars shown in thousands)

2011 2010

Costs by Strategic Goal:

Protect Consumers (PC) Strategic Goal:

 Gross costs (Note 12) $ 169,334 $ 158,458 

 Less: earned revenue (Note 13) (14,233) (14,426) 

Net PC strategic goal costs 155,101 144,032 

Maintain Competition (MC) Strategic Goal:

Gross costs (Note 12) 129,315 116,642 

Less: earned revenue (Note 13) (91,984) (73,554) 

Net MC strategic goal costs 37,331 43,088

Net Cost of Operations $ 192,432 $ 187,120 

The accompanying notes are an integral part of these statements.
Financial Section

114 Federal Trade Commission | Performance and Accountability Report 

FedeRAl tRAde CoMMission

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENdEd SEPTEMBER 30, 2011 ANd 2010

(dollars shown in thousands)

2011 2010 

Cumulative Results of Operations:

 Beginning balance, adjusted $ 87,650 $ 60,391 

 Budgetary financing sources:

 Appropriations used 186,219 204,673

 Other financing sources (non-exchange): 

 Imputed financing 11,759 9,706 

 Total financing sources 197,978 214,379 

 Less: net cost of operations (192,432) (187,120) 

 Net change 5,546 27,259 

Total Cumulative Results of Operations $ 93,196 $ 87,650 

Unexpended Appropriations:

 Beginning balance, adjusted $ - $ - 

 Budgetary financing sources:

 Appropriations received 186,219 204,673 

 Less: Appropriations used (186,219) (204,673) 

 Total budgetary financing sources - - 

Total Unexpended Appropriations - - 

Net Position (Note 1(o)) $ 93,196 $ 87,650 

The accompanying notes are an integral part of these statements.
115Financial Section

fiscal year 2011

FedeRAl tRAde CoMMission

STATEMENT OF BudGETARY RESOuRCES

FOR THE YEARS ENdEd SEPTEMBER 30, 2011 ANd 2010 

(dollars shown in thousands)

2011 2010

Budgetary Resources:

 Unobligated balance, brought forward, October 1:

 Recoveries of prior year unpaid obligations

 Actual

 $ 13,128 

 8,231 

 $ 9,783 

 3,325 

 Budget authority:

 Appropriation

 Spending authority from offsetting collections

 Earned

 186,219 204,673 

 Collected 106,261 88,050 

 Change in receivables from Federal sources (45) (70) 

 Change in unfilled customer orders

 Without advance from Federal sources (160) 96

 Subtotal budget authority 292,275 292,749

Total Budgetary Resources $ 313,634 $ 305,857 

Status of Budgetary Resources:

Obligations incurred (Note 

 Direct

14):

 $ 292,146 $ 291,742 

 Reimbursable 913 987 

 Subtotal 293,059 292,729 

 Unobligated balance:

 Apportioned

 Not available

 17,882 

 2,693 

 

 

 10,845 

 2,283 

Total Status of Budgetary Resources $ 313,634 $ 305,857 

Change in Obligated Balance:

Obligated balance, net

 Unpaid obligations, brought forward, October 1 $ 90,622 $ 69,086 

 Less: Uncollected customer payments from Federal 

 Sources brought forward, October 1 (320) (293) 

 Total unpaid obligated balance, net

 Obligations incurred, net (Note 14)

 90,302 

 293,059 

 68,793 

 292,729 

 Less: Gross outlays (287,778) (267,869) 

 Less: Recoveries of prior year unpaid obligations, actual (8,231) (3,325) 

 Change in uncollected customer payments from Federal 

 Obligated balance, net, end of period

 Unpaid obligations

sources 205

 87,672

 (26)

 90,622

 Uncollected customer payments from Federal sources (115) (320) 

Net 

Total, unpaid obligated balance, net, 

Outlays:

Gross outlays

end of period $ 87,557 

 $ 287,778 

 $ 

 $ 

 90,302 

267,869 

Less: Offsetting collections (106,261) (88,050) 

Less: Distributed offsetting receipts (13,417) (6,986) 

Net Outlays $ 168,100 $ 172,833 

The accompanying notes are an integral part of these statements.
Financial Section

116 Federal Trade Commission | Performance and Accountability Report 

FedeRAl tRAde CoMMission

STATEMENT OF CuSTOdIAL ACTIVITY

FOR THE YEARS ENdEd SEPTEMBER 30, 2011 ANd 2010 

(dollars shown in thousands)

PC MC 2011 2010

Revenue Activity (Note 17):

Sources of collections:

Premerger filing fees (net of refunds) $ - $ 91,424 $ 91,424 $ 72,858 

Civil penalties and fines 23,275 - 23,275 2,097 

Redress (Note 18) 13,177 - 13,177 6,659 

Other miscellaneous receipts 240 - 240 327 

 Total cash collections 36,692 91,424 128,116 81,941 

 Accrual adjustments (9,908) - (9,908) 9,950 

Total Custodial Revenue $ 26,784 $ 91,424 $ 118,208 $ 91,891 

Disposition of Collections (Note 17):

 Transferred to others:

 Treasury general fund $ 36,692 $ - $ 36,692 $ 9,083

 Department of Justice - 91,424 91,424 72,858 

 (Decrease)/increase in amounts yet to be transferred (9,908) - (9,908) 9,950

Total Disposition of Collections $ 26,784 $ 91,424 $ 118,208 $ 91,891

Net Custodial Activity $ - $ - $ - $ -

The accompanying notes are an integral part of these statements.
117Financial Section

fiscal year 2011

(a) REPORTING ENTITY

The federal Trade commission (fTc) is an 

independent United States Government agency, 

established by the federal Trade commission act of 

1914. The FTC enforces a variety of federal antitrust 

and consumer protection laws. The agency is headed 

by five Commissioners, nominated by the President 

and confirmed by the Senate, each serving a seven-year 

term. The President chooses one Commissioner to act 

as Chairman. No more than three Commissioners can 

be of the same political party. 

The FTC has three major bureaus: The Bureau of 

Consumer Protection (BCP), which supports the 

strategic goal of protecting consumers, the Bureau of 

Competition (BC), which supports the strategic goal of 

maintaining competition, and the Bureau of Economics 

(BE), which supports both bureaus and strategic goals. 

Additionally, various Offices provide mission support 

functions and services. 

The majority of FTC staff is located in Washington 

DC; however, the FTC’s regions cover seven geographic 

areas. The regional offices work with the BCP and 

Bc to conduct investigations and litigation; provide 

advice to state and local officials on the competitive 

implications of proposed actions; recommend cases; 

provide local outreach services to consumers and 

business persons; and coordinate activities with local, 

state, and regional authorities. The regional offices 

frequently sponsor conferences for small businesses, 

local authorities, and consumer groups. 

The financial statements and notes include the 

accounts of all funds under the FTC’s control. As 

further described throughout these notes, in addition 

to appropriations received for salaries and necessary 

expenses, the FTC maintains control over funds that 

are primarily comprised of proceeds derived from court 

ordered judgments and settlements held for subsequent 

distribution to approved claimants. These funds are 

considered non-entity and are reported as such on the 

Balance Sheet. 

(b) FuNd ACCOuNTING STRuCTuRE

The FTC’s financial activities are accounted for using 

various funds (i.e., Treasury Account Symbols (TAS)). 

They include the following for which the FTC maintains 

financial records: 

general funD 

Tas 29X0100 consists of a salaries and expense 

appropriation used to fund agency operations and 

capital expenditures. Offsetting collections received 

during the year are also recorded in the general fund. 

(See Note 13 Exchange Revenues.)

DePosit funD 

Tas 29X6013 consists of monies held temporarily by 

the FTC as an agent for others (e.g., redress funds) prior 

to distribution through the consumer redress program.

susPense funD 

TAS 29F3875 consists of premerger filing fees collected 

by the FTC under the Hart-Scott-Rodino (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(P) Revenues 

and Other Financing Sources). 

misCellaneous reCeiPt aCCounts 

TAS 29 1040 and TAS 29 3220 consist of civil penalties, 

redress disgorgements to the department of the 

Treasury (Treasury) and other miscellaneous receipts 

that by law are not retained by the FTC. Cash balances 

are automatically transferred to the general fund of the 

Treasury at the end of each fiscal year. 
Financial Section

118 Federal Trade Commission | Performance and Accountability Report 

(c) BASIS OF ACCOuNTING ANd 

PRESENTATION

The accompanying financial statements present the 

financial position, net cost of operations, changes in net 

position, budgetary resources, and custodial activities 

of the FTC. As noted above, the FTC maintains a 

single fund to account for salaries and all necessary 

expenses. Further, there are no intra-entity transactions 

with any other fund (e.g., deposit fund) that would 

require eliminating entries to present consolidated 

statements. Accordingly, the statements are not labeled 

consolidated nor is the statement of Budgetary 

Resources (SBR) presented as combined. The financial 

statements have been prepared from the accounting 

records of the FTC on an accrual basis, in conformity 

with generally accepted accounting principles (GAAP) 

of the United States of America and with the form 

and content of financial statements specified by the 

Office of Management and Budget (OMB) Circular 

A-136, Financial Reporting Requirements (as revised 

October 2011). GAAP for federal entities incorporate 

the standards prescribed by the federal accounting 

Standards Advisory Board (FASAB).

(d) uSE OF ESTIMATES

The preparation of financial statements in conformity 

with GAAP requires management to make estimates 

and assumptions that affect the reported amounts 

of assets and liabilities at the date of the financial 

statements and the reported amounts of revenues and 

expenses during the reporting period. Actual results 

could differ from those estimates.

(e) BudGET AuTHORITY

congress passes appropriations annually that provide 

the FTC with authority to obligate funds for necessary 

expenses to carry out mandated program activities. 

These funds are available until expended, subject to 

omB apportionment and to congressional restrictions 

on the expenditure of funds. In addition, the FTC 

places internal restrictions on fund expenditures 

to ensure the efficient and proper use of all funds. 

appropriated funding is derived from various revenues 

and financing sources. The SBR reflects the single 

general fund (i.e. TAS 29X0100) for which the FTC has 

budget authority.

(f) ENTITY/NON-ENTITY ASSETS

assets that an agency is authorized to use in its 

operations are entity assets. Assets that an agency 

holds on behalf of another federal agency or a third 

party and are not available for the agency’s use are 

non-entity assets.

(g) FuNd BALANCE WITH TREASuRY 

The FTC’s Fund Balance with Treasury (FBWT) includes 

appropriated funds, deposit funds for subsequent 

disbursement to claimants, and premerger filing fees 

awaiting disbursement to the DOJ. Funds are carried 

forward until such time as goods or services are received 

and payment is made. All cash receipts are deposited with 

the Treasury and all disbursements for payroll and vendor 

invoices are disbursed by the Treasury.

(h) CASH ANd OTHER 

MONETARY ASSETS

The fTc’s consumer redress agents process claims and 

disburse redress proceeds to approved claimants. Upon 

approval of the redress office, amounts necessary to 

cover current disbursement schedules are held as cash 

in interest bearing accounts. These funds are considered 

non-entity assets and are reported on the Balance Sheet 

along with an offsetting non-entity liability.

(i) INVESTMENTS 

In protecting consumers, the FTC collects proceeds 

from defendants in accordance with court ordered 

judgments and settlement agreements for consumer 

redress and holds these proceeds in the deposit fund 

(TAS 29X6013) established with the Treasury. Under 

an agreement with the Treasury, the portion of such 

judgments and settlements that are not immediately 

needed for cash disbursements are invested in Treasury 

securities. These investments are considered non-entity 

assets and are reported on the Balance Sheet along with 

an offsetting non-entity liability.
119Financial Section

fiscal year 2011

(j) ACCOuNTS RECEIVABLE, NET 

entity accounts receivable consist of amounts due 

from other federal entities and from current and 

former employees and vendors. Non-entity accounts 

receivable include uncollected civil monetary penalties 

imposed as a result of the fTc’s enforcement activities 

and uncollected redress judgments. These non-entity 

accounts receivable are reported on the Balance sheet 

along with an offsetting non-entity liability. Gross 

receivables are reduced to net realizable value by an 

allowance for uncollectible accounts. (See Note 6 

Accounts Receivable, Net.)

(k) ACCRuEd LIABILITIES ANd 

ACCOuNTS PAYABLE 

accrued liabilities and accounts payable represent a 

probable future outflow or other sacrifices of resources 

as a result of past transactions or events. Liabilities 

are recognized when they are incurred, regardless 

of whether they are covered by budgetary resources. 

Liabilities 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 8 liabilities not covered by Budgetary resources 

and Note 9 Other Liabilities.)

(l) EMPLOYEE HEALTH BENEFITS ANd 

LIFE INSuRANCE 

fTc employees are eligible to participate in the 

contributory Federal Employees Health Benefit 

Program (feHBP) and the federal employees 

Group Life Insurance Program (FEGLIP). The FTC 

contributes a percentage to each program to pay for 

current benefits.

(m) EMPLOYEE RETIREMENT BENEFITS

fTc employees participate in either the civil service 

retirement system (csrs) or the federal employees 

Retirement System (FERS). Employees hired after 

December 31, 1983, are covered by FERS and Social 

Security, while employees hired prior to January 1, 1984, 

may elect to either join FERS or remain in CSRS. For 

employees participating in CSRS, the FTC contributes 

seven percent of the employee’s gross earnings to the 

CSRS Retirement and Disability Fund. For employees 

participating in FERS, the FTC contributes 11.2 percent 

to the Federal Employees’ Retirement Fund. Employees 

participating in fers are covered under the federal 

Insurance Contributions Act (FICA) for which the FTC 

contributes a matching amount to the social security 

Administration. FTC contributions are recognized as 

current operating expenses. 

The Thrift Savings Plan (TSP) is a defined contribution 

retirement savings and investment plan for employees 

covered by either CSRS or FERS. Participating 

employees may contribute any dollar amount or 

percentage of basic salary to TSP, not to exceed an 

annual dollar amount of $16,500 for 2011. CSRS 

participating employees do not receive a matching 

contribution from the FTC. FERS employees receive 

an agency automatic one percent contribution of gross 

pay to the TSP. The FTC also matches 100 percent 

of the first three percent contributed and 50 percent 

of the next two percent contributed. Such the FTC 

contributions are recognized as current operating 

expenses.

although the fTc contributes a portion for pension 

benefits and makes the necessary payroll withholdings, 

it is not responsible for managing contribution refunds, 

employee’s retirement benefits, or the retirement 

plan assets. Therefore, the FTC financial statements 

do not report CSRS and FERS assets, accumulated 

plan benefits, or unfunded liabilities, if any, which 

may be applicable to employees. Such reporting is the 

responsibility of the Office of Personnel Management 

(OPM). However, the FTC recognizes the full cost of 

providing future pension benefits to covered employees 

at the time the employees’ services are rendered. OPM 

has provided the FTC with certain cost factors that 

estimate the true service cost of providing the pension 

benefits to covered employees. During FYs 2011 and 

2010, the cost factor used to arrive at the service cost 

for CSRS covered employees was 30.1 percent of basic 

pay. During FYs 2011 and 2010, the cost factor for 

FERS covered employees was 13.8 percent of basic 

pay. The pension expense recognized in the financial 

statements equals this service cost to covered employees 

less amounts contributed by these employees. If the 
Financial Section

120 Federal Trade Commission | Performance and Accountability Report 

pension expense exceeds the amount contributed 

by the FTC as employer, the excess is recognized as 

an imputed financing cost. The excess total pension 

expense over the amount contributed by the agency 

must be financed by OPM and is recognized as an 

imputed financing source on the records of the FTC.

(n) OTHER POST-EMPLOYMENT BENEFITS

The fTc employees eligible to participate in the 

feHBP and the feGliP may continue to participate 

in these programs after their retirement. The OPM has 

provided the FTC with certain cost factors that estimate 

the true cost of providing the post-retirement benefit 

to current employees. The FTC recognizes a current 

cost for these and Other Retirement Benefits (ORB) 

at the time the employee’s services are rendered. The 

ORB expense is financed by OPM, and offset by the 

FTC through the recognition of an imputed financing 

source. During FYs ended 2011 and 2010, the cost 

factors relating to FEHBP were $6,027 and $5,906, 

respectively, per employee enrolled. During FYs 2011 

and 2010, the cost factor relating to FEGLIP was 0.02 

percent of basic pay per employee enrolled. 

(o) 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.) 

(p) REVENuES ANd OTHER 

FINANCING SOuRCES

The fTc’s funding is derived from spending authority 

from offsetting collections revenue and from direct 

appropriation. Spending authority from offsetting 

collections is comprised of collections of premerger 

filing fees under the authority of the HSR Act, 

collection of fees related to the Do-Not-Call (DNC) 

Implementation Act, and amounts received for services 

performed under reimbursable agreements with other 

federal agencies. All of the FTC’s offsetting collections 

are exchange revenues. (See Note 13 Exchange 

Revenues.) 

In addition to exchange revenue, the FTC receives 

funding through a direct appropriation from the general 

fund of the Treasury to support its operations. The 

direct appropriation represented approximately 59 

percent of total budgetary resources in fy 2011 and 67 

percent in FY 2010.

(q) METHOdOLOGY FOR ASSIGNING 

COSTS ANd ExCHANGE REVENuES 

Total net costs are allocated to the protect consumers 

strategic goal and the maintain competition strategic 

goal. (See Statement of Net Cost.) Costs and exchange 

revenues that are identified specifically with each of 

these two strategic goals are charged or credited directly. 

Other costs not directly attributable to these two goals 

are allocated based on the percentage of direct fulltime equivalents used by each of these two goals. These 

other indirect costs include costs related to the advance 

performance strategic goal.
121Financial Section

fiscal year 2011

Non-entity assets consisted of the following as of September 30, 2011 and 2010 (in thousands):

2011 2010

Intragovernmental:

 Fund balance with Treasury

 Investments

$ 4,093 

 35,443 

 $ 6,056 

199,105 

Total intragovernmental:

Cash and other monetary 

Accounts receivable, net

assets

 39,536 

 44,944 

 11,321 

 205,161 

 21,473 

 48,170

Total non-entity assets 95,801 274,804 

Total entity assets 127,582 121,580 

Total assets $ 223,383 $ 396,384

note 3—Fund balance with treasury 

Fund balance includes appropriated funds, which are also includes non-entity funds arising from undisbursed 

either unobligated, or obligated as an account payable or HSR filing fees due to the DOJ and collections of 

undelivered order and not yet disbursed. Fund balance redress judgments not yet disbursed to claimants.

Fund Balance with Treasury consisted of the following as of September 30, 2011 and 2010 (in thousands):

2011 2010

Fund balances with Treasury:

Appropriated funds $ 108,132 $ 103,430 

Suspense fund - undisbursed HSR filing fees 290 585

Deposit funds - redress 3,803 5,471 

Total fund balance with Treasury $ 112,225 $ 109,486 

Status of fund balance with Treasury

Unobligated balance

 Apportioned $ 17,882 $ 10,845 

 Unavailable 2,693 2,283

Obligated balance not yet disbursed 87,557 90,302 

Non-Budgetary fund balance with Treasury:

 Suspense fund - undisbursed HSR filing fees 290 585 

 Deposit funds - redress 3,803 5,471 

Total status fund balance with Treasury $ 112,225 $ 109,486 
Financial Section

122 Federal Trade Commission | Performance and Accountability Report 

Cash and other monetary assets consisted of the following as of 

September 30, 2011 and 2010 (in thousands):

2011 2010

Cash and other monetary assets:

 Redress contractors $ 44,944 $ 21,473

Total cash and other monetary assets $ 44,944 $ 21,473 

government securities market. Additionally, in FY 2010 

the investments balance included long-time reserved 

funds that had been from one judgment related to 

the FTC’s maintaining competition mission. The 

invested funds from this judgment were returned to the 

defendants during FY 2011. (See Note 18 Redress and 

Divestiture Activities.) 

As of September 30, 2011, investments consisted of the following (in thousands):

Amortized Amortization Interest Cost (Premium) Method Receivable Discount

Investment

Net

Other 

Adjustments

Market

Value

Disclosure

 Intragovernmental 

 Securities: 

 Non-Marketable: 

 Market-Based $ 35,443 n/a - - $ 35,443 - $ 35,443 

 Total investments $ 35,443 n/a - - $ 35,443 - $ 35,443 

As of September 30, 2010, investments consisted of the following (in thousands):

Amortized Amortization Interest Cost (Premium) Method Receivable Discount

Investment

Net

Other 

Adjustments

Market

Value

Disclosure

 Intragovernmental 

 Securities: 

 Non-Marketable: 

 Market-Based $ 199,105 n/a - - $ 199,105 - $ 199,105 

 Total investments $ 199,105 n/a - - $ 199,105 - $ 199,105 
123Financial Section

fiscal year 2011

The method used to estimate the allowance for 

uncollectible receivables consists of individual case 

analysis by the attorney case manager with respect to th

debtor’s ability and willingness to pay, the defendant’s 

payment record, and the probable recovery amount 

including the value of the sale of assets. Based on the 

aforementioned, cases are referred to the Treasury 

offset Program for collection activities after the 

receivable becomes six months delinquent in payment.

e 

Accounts receivable, net consisted of the following as of September 30, 2011 and 2010 (in thousands):

 Allowance for Gross Uncollectible 2011 Net Receivables Accounts 

 2010 Net 

 Entity accounts receivable: 

 Intragovernmental $ 26 $ - $ 26 $ 71

 With the Public 53 - 53 19 

 Total entity acounts receivable, net $ 79 $ - $ 79 $ 90

 Non-entity accounts receivable: 

 Consumer redress $ 424,802 $ 413,573 $ 11,229 $38,170

 Civil penalties 8,068 7,976 92 10,000 

Total non-entity accounts receivable $ 432,870 $ 421,549 $ 11,321 $48,170

 Total accounts receivable, net $ 432,949 $ 421,549 $ 11,400 $48,260

 
Financial Section

124 Federal Trade Commission | Performance and Accountability Report 

Amounts reported as equipment are comprised mostly 

of computer hardware and other building equipment. 

The FTC does not own buildings, but rather, in 

partnership with General Services Administration 

(GSA) leases both federally owned (by GSA) and 

commercial space. (See Note 10 Leases.) The leasehold 

improvements below consist of improvements made to 

the FTC headquarters building located in Washington 

DC (which is owned by the GSA), and to the FTC 

commercially leased space also located in Washington DC. 

Depreciation expense was $3,783 and $3,073 thousand 

for fiscal years ending September 30, 2011 and 2010, 

respectively, and is contained in the accumulated 

depreciation.

As of September 30, 2011, general property and equipment, net consisted of the following (in thousands):

Service Acquisition Accumulated Asset Class Life Value DepreciationNet 

Book Value

Equipment 5-20 yrs. $ 10,357 $ 7,003 $ 3,354 

Leasehold improvements lease term 14,403 4,787 9,616 

Software 3-5 yrs. 16,187 9,786 6,401 

Total general property and equipment, net $ 40,947 $ 21,576 $ 19,371 

As of September 30, 2010, general property and equipment, net consisted of the following (in thousands):

Service Acquisition Accumulated Asset Class Life Value DepreciationNet 

Book Value

Equipment 5-20 yrs. $ 9,975 $ 7,814 $ 2,161 

Leasehold improvements lease term 14,080 3,824 10,256 

Software 3-5 yrs. 13,796 8,153 5,643 

Total general property and equipment, net $ 37,851 $ 19,791 $ 18,060 
125Financial Section

fiscal year 2011

Liabilities not covered by budgetary resources consisted of the following as of September 30, 2011 and 2010 (in thousands):

2011

Intragovernmental:

 Undisbursed premerger fees liability $ 290 

 Civil penalty collections due to Treasury 92

 FECA liability 372

 Other Unfunded Employment Related Liability 15 

2010

 $ 585 

10,000 

439 

 16 

Total intragovernmental liabilities not covered 

Accrued redress receivables due to claimants

Redress collected not yet disbursed

Divestiture fund due

Unfunded leave

Actuarial FECA

by budgetary resources 769 

 11,229

 84,190

 -

11,013 

2,208 

 11,040 

 38,170

 180,526 

 45,523

10,683 

2,162

Total 

Total 

liabilities 

liabilities 

not covered by budgetary resources

covered by budgetary resources

 $ 109,409 

 20,778 

 $ 288,104 

 20,630

Total liabilities $ 130,187 $ 308,734 

undisbursed Premerger fees liability 

represents undisbursed filing fees collected under the 

HSR Act, which are due to the DOJ in a subsequent 

period.

Civil Penalty Collections Due to treasury

represents the corresponding liability relative to 

accounts receivable due for civil monetary penalties, 

which will be transferred to the general fund of the 

Treasury upon receipt. 

federal employee’s Compensation act 

(feCa) liability represents the unfunded 

liability for workers compensation the payable to the 

Department of Labor (DOL). DOL is the paying 

agent for all FECA claims. 

accrued redress receivables Due to 

Claimants represents the contra account for 

accounts receivable due from judgments obtained as a 

result of the agency’s consumer redress litigation.

redress Collected not Yet Disbursed

represents a non-entity liability corresponding to 

amounts reported as non-entity assets (including Fund 

Balance with Treasury, Cash and Other Monetary Assets 

and Investments for TAS 29X6013). These funds are 

held until distributed to consumers or returned to 

Treasury through disgorgement. 

Divestiture fund Due represents the 

corresponding liability offsetting the amount reported 

as non-entity assets (investments) held by the FTC 

pending divesture of assets pursuant to a court ordered 

judgment. The invested funds were disbursed in FY 

2011; therefore, there is no offsetting liability in FY 

2011. (See Note 5 Investments.) 

unfunded leave represents a liability for earned 

leave and is reduced when leave is taken. The balance in 

the accrued annual leave account is reviewed quarterly 

and adjusted as needed to accurately reflect the liability at 

current pay rates and leave balances. Accrued annual leave 

is paid from future funding sources and, accordingly, is 

reflected as a liability not covered by budgetary resources. 

Sick and other leave is expensed as taken.
Financial Section

126 Federal Trade Commission | Performance and Accountability Report 

Other liabilities consisted of the following as of September 30, 2011 and 2010 (in thousands):

2011

Non-Current

2011

Current 2011 Total

Intragovernmental:

 Accrued benefits $ - $ 676 $ 676

 Undisbursed premerger liability - 290 290 

 Civil penalty collection due to Treasury - 92 92

 FECA liability 372 - 372

Total Intragovernmental 372 1,058 1,430

Accrued salary - 4,257 4,257 

Accrued leave - 11,013 11,013

Actuarial FECA 2,208 - 2,208 

Total Other Liabilities $ 2,580 $ 16,328 $ 18,908

2010

Non-Current

2010

Current 2010 Total

Intragovernmental:

 Accrued benefits $ - $ 1,550 $ 1,550

 Undisbursed premerger liability - 585 585

 Civil penalty collection due to Treasury - 10,000 10,000

 FECA liability 439 - 439

Total Intragovernmental 439 12,135 12,574

Accrued salary - 7,796 7,796 

Accrued leave - 10,683 10,683

Actuarial FECA 2,162 - 2,162 

Total Other Liabilities $ 2,601 $ 30,614 $ 33,215

provided by DOL multiplied by the average of benefits 

paid over three years.
127Financial Section

fiscal year 2011

future minimum lease payments due under leases of 

government-owned property as of September 30, 2011, 

are as follows (in thousands):

Fiscal Year

2012 $ 6,861 

2013 6,814 

2014 6,527 

2015 228 

2016 229 

Thereafter 653 

Total Future Minimum Lease Payments $ 21,312 

future minimum lease payments under leases of commercial 

property due as of September 30, 2011 are as follows (in thousands):

Fiscal Year

2012 $ 13,704 

2013 4,250

2014 4,211 

2015 1,960 

2016 1,754 

Thereafter 3,462 

Total Future Minimum Lease Payments $ 29,341

note 11—Commitments and 

Contingencies

The FTC is a party in various administrative proceedings, 

legal actions, and claims brought by or against it. In the 

opinion of the FTC management and legal counsel, the 

ultimate resolution of these proceedings, actions, and 

claims, will not materially affect the financial position or 

the results of operations of the FTC. 

note 12—intragovernmental Costs 

and exchange Revenues

intragovernmental costs represent costs incurred for 

goods or services provided by another federal entity. 

Public costs represent costs incurred for goods or 

services from a nonfederal entity. Intragovernmental 

earned revenue represents goods or services provided 

by the FTC to another federal entity. Public earned 

revenue represents goods or services provided by 

the FTC to a nonfederal entity. The purpose of this 

classification is to enable the federal government to 

provide consolidated financial statements.
Financial Section

128 Federal Trade Commission | Performance and Accountability Report 

For the FYs ended September 30 2011 and 2010, intragovernmental and public costs and exchange revenues are as follows 

(in thousands): 

2011 2010

Protect Consumers (PC) Strategic Goal:

 Intragovernmental gross costs $ 43,116 $ 40,985

 Public costs 126,218 117,473 

Total PC strategic goal costs 169,334 158,458 

 Intragovernmental earned revenue (513) (257) 

 Public earned revenue (13,720) (14,169) 

Total PC strategic goal earned revenue (14,233) (14,426) 

Total PC strategic goal net costs 155,101 144,032 

Maintain Competition (MC) Strategic Goal:

 Intragovernmental gross costs 32,926 30,169 

 Public costs 96,389 86,473 

Total MC strategic goal net costs 129,315 116,642 

 Intragovernmental earned revenue (560) (696) 

 Public earned revenue (91,424) (72,858) 

Total MC strategic goal earned revenue (91,984) (73,554) 

Total MC strategic goal net costs 37,331 43,088 

Net Cost of Operations $ 192,432 $ 187,120 

note 13—exchange Revenues

exchange revenues are earned through the collection of 

fees under the HSR Act. This Act, in part, requires the 

filing of premerger notifications with the FTC and the 

Antitrust Division of the DOJ and establishes a waiting 

period before certain acquisitions may be consummated. 

Mergers with transaction valuation above $66.0 million 

require the acquiring party to pay a filing fee. The filing 

fees are based on the transaction amount and follow 

a three-tiered structure: $45, $125 and $280 thousand. 

The FTC collects all HSR premerger fees, retains 

one-half, and remits 50 percent to the DOJ Antitrust 

Division pursuant to public law. Revenue is recognized 

upon collection of the appropriate fee and verification 

of proper documentation.

exchange revenues are also earned through the 

collection of fees for the National DNC Registry. This 

Registry operates under Section 5 of the FTC Act, 

which enforces the Telemarketing Sales Rule. The DoNot-Call Implementation Act, Public Law No. 108-010, 

gives the FTC authority to establish fees sufficient to 

offset enforcement of the provisions related to the 

Registry. Telemarketers are required to pay an annual 

subscription fee and download from the DNC Registry 

database a list of telephone numbers of consumers 

who do not wish to receive calls. Fees are based on 

the number of area codes downloaded. Since October 

1, 2009, the minimum charge has remained at $55 to 

download one area code. The maximum charge has 

remained at $15,058 for all area codes within the United 

States. Revenue is recognized when collected and the 

telemarketer is given access to the requested data.
129Financial Section

fiscal year 2011

exchange revenue is also earned for services provided 

to other government agencies through reimbursable 

agreements. The FTC recovers the full cost of services, 

primarily salaries and related expenses. Revenue is 

earned at the time the expenditures are incurred against 

the reimbursable order. Exchange revenues are deducted 

from the full cost of the fTc’s strategic goals to arrive 

at net strategic goal cost.

For the FYs ended September 30, 2011 and 2010, exchange revenue 

consisted of the following (in thousands):

2011 2010

HSR premerger filing fees $ 91,424 $ 72,858 

Do Not Call registry fees 13,720 14,169 

Reimbursable agreements 1,073 953

Total exchange revenue $ 106,217 $ 87,980 

note 14—Apportionment 

Categories of obligations 

incurred: direct vs. Reimbursable 

obligations

aPPortionment Categories of 

oBligations inCurreD 

For the FYs ended September 30, 2011 and 2010, obligations 

incurred consisted of the following (in thousands):

2011 2010

Obligations incurred:

Category A -

Category B -

 Direct obligations

 Reimbursable Obligations

 $ 292,146 

 913 

 $ 291,742 

 987 

Total obligations incurred $ 293,059 $ 292,729 

note 15—explanation of 

differences between the 

statement of budgetary 

Resources and the budget of the 

united states government 

There are no material differences between amounts 

reported in the fy 2010 statement of Budgetary 

resources and the fy 2010 actual amounts as reported in 

the FY 2012 Budget of the United States Government. 

The fy 2013 Budget of the United states is not 

available to compare fy 2011 actual amounts to the 

FY 2011 Statement of Budgetary Resources.

note 16—undelivered orders at 

the end of the Period

The amount of budgetary resources obligated for 

undelivered orders as of September 30, 2011 and 2010 

is $66,895 and $69,991 thousand respectively. 
Financial Section

130 Federal Trade Commission | Performance and Accountability Report 

(dECREASE)/INCREASE IN AMOuNTS YET 

TO BE TRANSFERREd

This represents the difference between the opening 

and closing balances for the offsetting liability is that 

is established for the civil penalty funds due to be 

collected (receivable). 

note 18—Redress and divestiture 

Activities

REdRESS 

The FTC obtains consumer redress in connection with 

the settlement or litigation of both its administrative 

proceedings and its federal court cases. The FTC 

attempts to distribute funds thus obtained to consumers 

whenever possible. If consumer redress is not practical, 

the funds are paid (disgorged) to the Treasury, or 

on occasion, other alternatives, such as consumer 

education, are permitted. Major components of the 

program include eligibility determination, disbursing 

redress to claimants, and accounting for the disposition 

of these funds. Collections made against court-ordered 

judgments totaled $41,596 and $170,270 thousand 

during FYs 2011 and 2010, respectively.

dIVESTITuRE FuNd 

The divestiture fund consisted of one judgment 

(obtained by the fTc in support of its strategic goal 

to maintain competition) that required the defendants 

to place funds in reserve under the FTC control. The 

funds were available for development opportunities by 

a competing company that had received divested assets 

from the defendants. During FY 2010, the judgment 

was re-opened by the court and ultimately modified to 

allow those funds to be returned to the defendants. The 

disbursement of those funds occurred during the first 

quarter of FY 2011. 
131Financial Section

fiscal year 2011

2011 2010

Redress:

Fund Balance with Treasury

Beginning balance $ 5,471 $ 2,298 

Collections 41,596 170,270 

Disbursements to claimants (48) (483) 

Disgorgements to Treasury (13,177) (6,659) 

Transfers, expenses, refunds (30,039) (159,955) 

 Total fund balance with Treasury, ending $ 3,803 $ 5,471

 Cash and Other Monetary Assets

 Beginning balance $ 21,473 $ 18,141 

 Disbursements to claimants (116,089) (47,683) 

 Transfers, expenses, interest income 139,560 51,015 

 Total cash and other monetary assets, ending $ 44,944 $ 21,473

 Investments

 Beginning balance $ 153,582 $ 49,306

 Transfers, expenses, interest income (118,139) 104,276

 Total investments, ending $ 35,443 $ 153,582

 Accounts receivable, net

 Beginning balance $ 38,170 $ 55,496

 Net Activity (26,941) (17,326) 

 Total accounts receivable, net, ending $ 11,229 $ 38,170

Divestiture Fund:

 Investments

 Beginning balance $ 45,523 $ 45,542

 Interest, net of (expenses) (4) (19)

 Return of funds (45,519) -

 Total investments, ending $ - $ 45,523 

Redress and divestiture fund activities consisted of the following for September 30, 2011 and 2010 (in thousands):
Financial Section

132 Federal Trade Commission | Performance and Accountability Report 

For the FYs ended September 30, 2011 and 2010 (in thousands)

2011 2010

Resources Used to Finance Activities:

Budgetary Resources Obligated

 Obligations incurred $ 293,059 $ 292,729 

 Less: Spending authority from offsetting collections and recoveries (114,287) (91,401) 

Obligations net of offsetting collections and recoveries 178,772 201,328 

Other Resources

Imputed financing from costs absorbed by others 11,759 9,706 

 Net other resources used to finance activities 11,759 9,706 

Total resources used to finance activities 190,531 211,034

Resources Used to Finance Items not Part of the Net Cost of Operations:

 Change in budgetary resources obligated for goods,

 services and benefits ordered but not yet provided 2,936 (22,218) 

 Resources that finance the acquisition of assets (5,093) (5,660) 

Total resources used to finance items not part of the net cost of operations (2,157) (27,878) 

Total resources used to finance the net cost of operations 188,374 183,156 

Components of the Net Cost of Operations that will not Require 

Generate Resources in the Current Period:

or

 Components Requiring or Generating Resources in Future Periods:

 Increase in annual leave liability 330 896 

 Other (55) (5) 

 Total components 

 generate resources 

of 

in 

Net Cost of Operations 

future periods

that will require or

 275 891

 Components not Requiring or Generating Resources:

 Depreciation and amortization 3,783 3,073 

 Total Components 

 generate resources

of Net Cost of Operations that will not require or 

 3,783 3,073 

Total components of net cost of operations 

 generate resources in the current period

that will not require or

 4,058 3,964

Net Cost of Operations $ 192,432 $ 187,120 
Other Accompanying Information

fiscal year 2011 133
Other Accompanying Information

134 Federal Trade Commission | Performance and Accountability Report 
135Other Accompanying Information

fiscal year 2011

INSPECTOR GENERAL-IdENTIFIEd MANAGEMENT ANd PERFORMANCE 

CHALLENGES (CONTINuEd)
Other Accompanying Information

136 Federal Trade Commission | Performance and Accountability Report 

INSPECTOR GENERAL-IdENTIFIEd MANAGEMENT ANd PERFORMANCE 

CHALLENGES (CONTINuEd)
137Other Accompanying Information

fiscal year 2011

INSPECTOR GENERAL-IdENTIFIEd MANAGEMENT ANd PERFORMANCE 

CHALLENGES (CONTINuEd)
Other Accompanying Information

138 Federal Trade Commission | Performance and Accountability Report 

INSPECTOR GENERAL-IdENTIFIEd MANAGEMENT ANd PERFORMANCE 

CHALLENGES (CONTINuEd)
139Other Accompanying Information

fiscal year 2011

INSPECTOR GENERAL-IdENTIFIEd MANAGEMENT ANd PERFORMANCE 

CHALLENGES (CONTINuEd)
Other Accompanying Information

140 Federal Trade Commission | Performance and Accountability Report 

Chairman’s resPonse to ig Challenges
141Other Accompanying Information

fiscal year 2011

auDit oPinion Unqualified

restatement

material weaKnesses

total material 

weaKnesses

No

Beginning 

Balance new resolved Consolidated ending 

Balance

0 0 0 0 0

0 0 0 0 0
Other Accompanying Information

142 Federal Trade Commission | Performance and Accountability Report 

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 ending 

Balance

0 0 0 0 0

total material 

weaKnesses 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 ending 

Balance

0 0 0 0 0

total material 

weaKnesses 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 ending 

Balance

0 0 0 0 0

total nonConformanCes 0 0 0 0 0
143Other Accompanying Information

fiscal year 2011

The improper Payments elimination and recovery act 

(IPERA) (Public Law No. 111-204) which amended the 

Improper Payments Information Act (Public Law No. 

107-300), defines requirements to reduce improper and 

erroneous payments made by the federal government. 

In addition, the Office of Management and Budget 

(OMB) issued guidance (Memorandum M-11-16) which 

defines “significant improper payments” and prescribes 

the reporting requirements for agencies with programs 

that are susceptible to significant improper payments. 

Significant improper payments as defined by OMB 

guidance are those that exceed both 2.5 percent of a 

program’s annual payments and $10 million. The FTC 

reviewed its programs and activities in accordance with 

the above guidance and determined that none of the 

agency’s programs or activities are susceptible to making 

significant improper payments.

The IPERA and OMB Memorandum M-11-16 also 

provide guidance to agencies for implementing payment 

recapture audits, for programs and activities that expend 

$1 million or more annually, provided it is cost-effective 

to do so. The FTC considered the criteria specified in 

the above guidance in determining whether it would be 

cost-effective to implement a payment recapture audit 

program at the FTC and concluded that it would not be 

cost-effective to do so. The agency informed the IG and 

the OMB as required. In arriving at our determination, 

all of the activities within the agency’s protecting 

consumers and maintaining competition programs 

were included in our assessment. The FTC reached our 

conclusion by considering the nature (type), volume and 

amounts of our disbursements, the degree of risk for 

making an improper payment, and the existence and 

effectiveness of controls that have been placed into 

operation to prevent such payments. We also noted the 

FTC has not made significant improper payments in 

prior years. 
Appendices

144 Federal Trade Commission | Performance and Accountability Report 
Appendices

fiscal year 2011 145
Appendices

146 Federal Trade Commission | Performance and Accountability Report 

APPendix A: ACRonyMs

ACO Accountable Care Organization

APA Administrative Procedure Act

ACSI American Customer Satisfaction Index

BC Bureau of Competition 

BCP Bureau of Consumer Protection

BE Bureau of Economics

CDC Centers for Disease Control

CEO Chief Executive Officer

CFO Chief Financial Officer

CFS Core Financial System

CISCO Chief Information Security Officer

CON Certificate of Need

COOP Continuity of Operations Plan

COPPA Children’s Online Privacy Protection Act

CPO Chief Privacy Officer

CRSS Consumer Response Systems and Services

CSN Consumer Sentinel Network

CSRS Civil Service Retirement System 

DNC Do Not Call 

DOJ Department of Justice 

DOL Department of Labor 

DRM Digital Rights Management

ERCR Electronic Recordkeeping Certification Review

EDMS Electronic Document Management System

EFT Electronic Funds Transfer 

FASAB Federal Accounting Standards Advisory Board 

FBWT Fund Balance with Treasury

FDA Food and Drug Administration 

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 

FICA Federal Insurance Contributions Act

FISMA Federal Information Security Management Act 

FMFIA Federal Managers’ Financial Integrity Act 
147Appendices

fiscal year 2011

FTC Federal Trade Commission 

FTE Full-Time Equivalent 

FY Fiscal Year 

GAAP Generally Accepted Accounting Principles 

GAO Government Accountability Office 

GAS Government Account Series 

GPRA Government Performance and Results Act

GSA General Services Administration 

HRMO Human Resources Management Office 

HSR Hart-Scott-Rodino Act 

ICN International Competition Network 

IG Inspector General

IP Intellectual Property

IPPA Integrated Project Plan of Action

IT Information Technology

MC Maintain Competition 

MD&A Management’s Discussion and Analysis 

N/A Not Applicable or Not Available 

NFL National Football League

NIST National Institute of Standards and Technology

MLS Multiple Listing Service

MOU Memorandum of Understanding

OCIO Office of the Chief Information Officer

OECD Organization for Economic Co-operation and Development

OIG Office of Inspector General 

OMB Office of Management and Budget 

OPEC Organization of the Petroleum Exporting Countries

OPM Office of Personnel Management 

ORB Other Retirement Benefits 

PAR Performance and Accountability Report 

PC Protect Consumers

PII Personally Identifiable Information 

PSC Privacy Steering Committee 

SAS Statement on Auditing Standard 

SAT Senior Assessment Team 

SBR Statement of Budgetary Resources

SCA Statement of Custodial Activity 

SFFAS Statement of Federal Financial Accounting Standard 
Appendices

148 Federal Trade Commission | Performance and Accountability Report 

SHI Sensitive Health Information

SOA Statement of Assurance

TAS Treasury Account Symbol 

TSP Thrift Savings Plan 

TTY Text Telephone or Telephone Typewriter 

U.S. United States 

U.S. SAFE WEB Act Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond 

 Borders Act of 2006

USDA United States Department of Agriculture
149Appendices

fiscal year 2011

APPendix b: ContACt inFoRMAtion

FEdERAL TRAdE COMMISSION 600 Pennsylvania Avenue, NW

Washington, DC 20580

General Information Number 202-326-2222

Internet Home Page www.ftc.gov

FTC Spanish Home Page www.ftc.gov/espanol

Strategic Plan Internet Site www.ftc.gov/strategicplan

FTC Press Releases www.ftc.gov/opa/pressold.shtm 

PERFORMANCE ANd ACCOuNTABILITY REPORT (PAR) SPECIFIC

The FTC welcomes comments or suggestions for improvement of its PAR. Please contact the 

agency to provide feedback or to request additional copies.

PAR Internet Site www.ftc.gov/par

PAR Contact 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 www.ftc.gov/idtheft

and complaints

National Do Not Call Registry www.donotcall.gov
Appendices

150 Federal Trade Commission | Performance and Accountability Report 

APPendix C: otheR useFul linKs 

INTROduCTION

• Accountability of Tax Dollars Act of 2002: 

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 (CEAR): 

http://www.agacgfm.org/performance/cear/ 

• Clayton Act: http://www.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00000012----000-.html

• Fair Credit Reporting Act: http://www.ftc.gov/os/statutes/031224fcra.pdf

• Federal Managers’ Financial Integrity Act of 1982 (FMFIA): 

http://www.whitehouse.gov/omb/financial_fmfia1982

• Federal Trade Commission Act: http://www.ftc.gov/ogc/ftcact.shtm

• Government Management Reform Act of 1994: 

http://govinfo.library.unt.edu/npr/library/misc/s2170.html

• Government Performance and Results Act of 1993 (GPRA): 

http://www.whitehouse.gov/omb/mgmt-gpra/gplaw2m

• GPRA Modernization Act of 2010: 

http://www.gpo.gov/fdsys/pkg/BILLS-111hr2142enr/pdf/BILLS-111hr2142enr.pdf

• Identity Theft Act: http://www.ftc.gov/os/statutes/itada/itadact.htm

• Improper Payments Information Act of 2002: http://www.whitehouse.gov/omb/financial_fia_improper/

• Reports Consolidation Act of 2000: 

http://www.gpo.gov/fdsys/pkg/BILLS-106s2712enr/pdf/BILLS-106s2712enr.pdf

• Telemarketing Sales Rule: http://www.ftc.gov/bcp/rulemaking/tsr/index.shtml

Md&A

• Accountable Care Organizations (ACOs) overview: https://www.cms.gov/ACO

• Affordable Care Act: http://www.gpo.gov/fdsys/pkg/PLAW-111publ148/pdf/PLAW-111publ148.pdf

• American Customer Satisfaction Index (ACSI): http://www.theacsi.org

• Children’s Online Privacy Protection Act (COPPA) Rule: 

http://business.ftc.gov/privacy-and-security/children%E2%80%99s-online-privacy

• Circular A-123, “Management’s Responsibility for Internal Control”: 

http://www.whitehouse.gov/omb/circulars_a123_rev/

• Commission’s Prohibition of Energy Market Manipulation Rule: 

http://www.ftc.gov/os/2009/08/P082900mmr_finalrule.pdf
151Appendices

fiscal year 2011

• Debt Collection Improvement Act of 1996: http://www.dol.gov/ocfo/media/regs/DCIA.pdf

• Equal Credit Opportunity Act: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm

• Federal Human Capital Survey: http://www.fedview.opm.gov

• Federal Information Security Management Act (FISMA): 

http://csrc.nist.gov/drivers/documents/FISMA-final.pdf

• FTC Guides for the Use of Environmental Marketing Claims: 

http://www.ftc.gov/bcp/edu/microsites/energy/about_guides.shtml

• Gasoline and Diesel Price Monitoring Project: http://www.ftc.gov/ftc/oilgas/gas_price.htm

• Government Accountability Office (GAO) Auditing Resources: http://www.gao.gov/aac.html

• International Competition Network: http://www.internationalcompetitionnetwork.org

• Managed Trusted Internet Protocol Service: http://www.gsa.gov/portal/content/104213

• Mortgage Assistance Relief Services Rule: 

http://business.ftc.gov/documents/bus76-mortgage-assistance-relief-services-rule

• Office of Inspector General (OIG): http://www.ftc.gov/oig/

• Prompt Payment Act: http://www.fms.treas.gov/prompt/regulations.html

• Trusted Internet Connection: http://www.dhs.gov/files/programs/gc_1268754123028.shtm

• We Don’t Serve Teens: http://www.dontserveteens.gov

PERFORMANCE

• Complaint Assistant: https://www.ftccomplaintassistant.gov

• Hart-Scott-Rodino (HSR) Act: http://www.ftc.gov/bc/hsr

• Home Mortgage Disclosure Act: http://www.fdic.gov/regulations/laws/rules/6500-3030.html

• Human Capital Assessment and Accountability Framework: 

http://www.opm.gov/hcaaf_resource_center/2-1.asp

• Net Cetera: Chatting with Kids about Being Online: 

http://onguardonline.gov/features/feature-0004-featured-net-cetera-toolkit

• Undertaking Spam, Spyware, And Fraud Enforcement With Enforcers beyond Borders Act of 2006 (U.S. 

SAFE WEB Act): http://www.gpo.gov/fdsys/pkg/PLAW-109publ455/pdf/PLAW-109publ455.pdf

OTHER ACCOMPANYING INFORMATION

• Improper Payments Elimination and Recovery Act (IPERA): 

http://www.whitehouse.gov/the-press-office/president-obama-sign-improper-payments-elimination-andrecovery-act
Appendices

152 Federal Trade Commission | Performance and Accountability Report

ACKnowledgeMents

The FTC gratefully acknowledges the work of James Baker, Chloe Collins, Steve Fisher, Ted Franklin, 

Valerie Green, Eileen Harrington, Karen Leydon, Nancy Lux, Jeff Nakrin, Mark Oemler, Mary Beth 

Richards, Jon Schroeder, and Lori Walsh-Van Wey of the Office of the Executive Director; Jeanine 

Balbach, Nathan Hawthorne, and Stefano Sciolli of the Bureau of Competition; Laura DeMartino, 

Gregory Fortsch, and Jonathan Soileau of the Bureau of Consumer Protection; Russell Damtoft 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 AOC Solutions, 

Inc., and Fathom Creative.
fiscal year 2011