Evening star., 1938-01-31
TRADE UNIT ACT
DUE FOR CHANGE
Legislation to Add to Com.
missions Power Sped
in Congress.
By G. GOULD LINCOLN.

1914.
Conferees of the Senate and House
will meet at the call of Senator
Wheeler. Of Montana, chairman of the
Interstate Commerce Committee and
the Conference Committee, to adjust
differences between the bill as It
passed the Senate and as it more re-
Gently passed the House.
The House, when 1t passed the Fed
eral Trade Commission bill, went
strongly on record In favor Of having
the commission continue to deal with
false advertising Of food, drugs. de-
vices and cosmetics" The commits
sion has that authority now and has
had 1t in the past. but the new bill
will make 1t possible to deal more
effectively with false advertising. The
commission has jurisdiction over all
false advertising.
Jurisdictional Fight.
Final favorable action by Congress
on the bill, as amended by the House,
will terminate . drive which began
several years ago to take from the
Trade Commission jurisdiction over
false advertising Of food and drugs
and place it within the Department Of
Agriculture. The food and drug act,
passed by the Senate during the last
Congress and again by the Senate at
the first session Of the present Con-
gress, would turn this jurisdiction over
to the Food and Drug Administration
Of the Department of Agriculture.
The Interstate and Foreign Com.
merce Committee of the House, whose
chairman is Representative Lea of
California, and the House itself, took
the position that the Trade Commits
sion was far better able and better
qualified to handle cases of false ad-
vertising Of food, drugs, devices and
cosmetics. In the first place. it was
argued that the commission has juris-
diction over all kinds of false advertis-
ing and always has had. In the Sec
ond place, 1t now has the machinery
to handle such matters. In the third
place. as a quasijudicial body the COM
mission is better qualified to deal with
false advertising than is . bureau of
an executive department.
The cpnferees OF the Senate on this
bill are Senators Wheeler, Wagner
of New York and Davis of Penn
sylvania, and Representatives Lea.
Chapman Of Kentucky. Pearson and
Reece Of Tennessee and Wolverton Of
New Jersey.
Departments Authority.
No attempt has been made to take
from the Food and Drug Administra-
tion Of the Department of Agriculture
jurisdiction over the false labelling or
| misbranding OF food. drugs, devices
and cosmetics. The House Interstate
and Foreign Commerce Committee has
before 1t the Senate bill amending the
pure food and drugs act containing
drastic provisions against mislabeling
or reference to false advertising In
the belief that such advertising can
more economically, more effectively
and more properly be controlled by the
Trade Commission.
The Food and Drug Administration
has control over the purity of foods
and drugs, including adulteration. mis-
branding and false labelling. 1t has
been urged that it would be more ad-
vantageous to have the Food and Drug
Administration take over control of
false advertising. too. Proponents of
this move say that it would avoid q
division of responsibility; that If the
| duty Of attacking false advertising OF
FOCUS and drugs is left to the Trade
Commission, 1t must rely upon the ad-
ministration for the detection Of such
| advertising. It has been urged, too
that in the matter Of advertising the
Food and Drug Administrat tons stand
point Is that Of the consumer, while
the Fedora! Trade Commissions View
point is that of the industrial COM
petitor.
The amendments to the Federal
Trade Commission Act contain q pro-
vision that would widen considerably
the jurisdiction and the point Of view
OF the Trade Commission, however
This provision would make unfair OF
deceptive acts or practices in COM
merce" unlawful. Under the present
act unfair methods of competition
Is the language Of the law. The
amendment now proposed is to make
the commission better able to protect
the interests of the consuming public
It also will relieve the commission OF
proving competition and injury to
competitors in making case. It will
be sufficient If an act. or practice /,
unfair or deceptive to the consumer
These provisions Of the bill as II
passed the House are identically the
same as they were In the bill a. II
passed the Senate.
cease and Desist" Order.
Another amendment to the pres
ent law makes the cease and desist
orders of the Trade Commission final
90 days after their issuance, unless
an appeal is taken to the courts, and
provides civil penalty, not to ex-
coed $4,000 for each violation of such
orders after they have become final
Heretofore there has been no penalty
Tor violation of the commission.
orders except 4 proceeding for con.
tempt after the order has been af.
firmed by the appellate court.
The amendments relating to adver.
tising revolve around the definition O,
false advertisement" which is de-
clared to be an advertisement which
Is misleading in a material respect.
Certain specified matters are to be con.
sidered IN determining whether or no,
an advertisement is not q necessar,
element OF false advertisement. TIT