An act to amend the Federal Trade Commission Act to extend the authorization of appropriations contained in such Act, and for other purposes.
PL 96-252 (H.R.2313), enacted 05/28/1980

94 STAT. 374 
PUBLIC LAW 96-252—MAY 28, 1980 
Public Law 96-252 
96th Congress 
An Act 
May 28, 1980 
fji^ amend the Federal Trade Commission Act to extend the authorization of appro-
[H.R. 2313] 
priations contained in such Act, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
Federal Trade 
United States of 
America in Congress assembled. 
Commission 
Improvements 
Act of 1980. 
SHORT TITLE 
1
5 use 58 note. 
SECTION 1. This Act may be cited as the "Federal Trade Commis-
sion Improvements Act of 1980". 
RECONSIDERATION OF ORDERS 
SEC. 2. Section 5(b) of the Federal Trade Commission Act (15 U.S.C. 
45(b)) is amended— 
(1) in the last sentence thereof, by striking out ": Provided, 
however, That" and inserting in lieu thereof ", except that (1)", 
and by inserting before the period at the end thereof the 
following:"; and (2) in the case of an order, the Commission shall 
reopen any such order to consider whether such order (including 
any affirmative relief provision contained in such order) should 
be altered, modified, or set aside, in whole or in part, if the 
person, partnership, or corporation involved files a request with 
the Commission which makes a satisfactory showing that 
changed conditions of law or fact require such order to be altered, 
modified, or set aside, in whole or in part"; and 
(2) by adding at the end thereof the following new sentence: 
"The Commission shall determine whether to alter, modify, or 
set aside any order of the Commission in response to a request 
made by a person, partnership, or corporation under paragraph 
(2) not later than 120 days after the date of the filing of such 
request.". 
DISCLOSURE OF COMMERCIAL OR FINANCIAL INFORMATION; QUARTERLY 
FINANCIAL REPORTS 
SEC. 3. (a) Section 6(f) of the Federal Trade Commission Act (15 
U.S.C. 46(f)) is amended— 
(1) by striking out ", except trade secrets and names of 
customers, as it shall deem expedient" and inserting in lieu 
thereof "as are"; and 
(2) by inserting before the period at the end thereof the 
following: ": Provided, That the Commission shall not have any 
authority to make public any trade secret or any commercial or 
financial information which is obtained from any person and 
which is privileged or confidential, except that the Commission 
may disclose such information to officers and employees of 
appropriate Federal law enforcement agencies or to any officer 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 375 
or employee of any State law enforcement agency upon the prior 
certification of an officer of any such Federal or State law 
enforcement agency that such information will be maintained in 
confidence and will be used only for official law enforcement 
purposes". 
(b) Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is 
amended by adding at the end thereof the following new undesig-
nated paragraph: 
"The Commission shall establish a plan designed to substantially 
reduce burdens imposed upon small businesses as a result of require-
ments established by the Commission under clause (b) relating to the 
filing of quarterly financial reports. Such plan shall (1) be established 
after consultation with small businesses and persons who use the 
information contained in such quarterly financial reports; (2) provide 
for a reduction of the number of smedl businesses required to file such 
quarterly financial reports; and (3) make revisions in the forms used 
for such quarterly financial reports for the purpose of reducing the 
complexity of such forms. The Commission, not later than December 
31, 1980, shall submit such plan to the Committee on Commerce, 
Science, and Transportation of the Senate and to the Committee on 
Interstate and Foreign Commerce of the House of Representatives. 
Such plan shall take effect not later than October 31, 1981.". 
Plan for filing of 
quarterly 
financial 
reports; 
submittal to 
congressional 
committees. 
Effective date. 
CONFIDENTIALITY OF LINE-OF-BUSINESS REPORTS 
SEC. 4. Section 6 of the Federal Trade Commission Act (15 U.S.C. 
46), as amended in section 30t)), is further amended by adding at the 
end thereof the following new undesignated paragraph: 
"No officer or employee of the Commission or any Commissioner 
may publish or disclose information to the public, or to any Federal 
agency, whereby any line-of-business data furnished by a particular 
establishment or individual can be identified. No one other than 
designated sworn officers and employees of the Commission may 
examine the line-of-business reports from individual firms, and 
information provided in the line-of-business program administered 
by the Commission shall be used only for statistical purposes. Infor-
mation for carrying out specific law enforcement responsibilities of 
the Commission shall be obtained under practices and procedures in 
effect on the date of the enactment of the Federal Trade Commission 
Improvements Act of 1980, or as changed by law.". 
Ante, p. 374. 
Studies and 
reports. 
COMMISSION INVESTIGATIONS OF INSURANCE BUSINESSES 
SEC. 5. (a) Section 6 of the Federal Trade Commission Act, as 
amended in section 3(b) and section 4, is further amended by adding 
at the end thereof the following new undesignated paragraph: 
"Nothing in this section (other than the provisions of clause (c) and 
clause (d)) shall apply to the business of insurance, except that the 
Commission shall have authority to conduct studies and prepare 
reports relating to the business of insurance. The Commission may 
exercise such authority only upon receiving a request which is agreed 
to by a majority of the members of the Committee on Commerce, 
Science, and Transportation of the Senate or the Committee on 
Interstate and Foreign Commerce of the House of Representatives. 
The authority to conduct any such study shall expire at the end of the Expiration date. 
Congress during which the request for such study was made.". 
94 STAT. 376 
PUBLIC LAW 96-252—MAY 28, 1980 
Study and 
evaluation. 
15 u s e 46 note. 
42 u s e 1395. 
(b) The amendment made in subsection (a) shall not be construed to 
prohibit the Federal Trade Commission from participating with the 
Secretary of Health and Human Services in a comprehensive study 
and evaluation of the comparative effectiveness of various State 
policies and programs relating to the regulation of health insurance 
policies available for purchase by individuals who are eligible for 
benefits under the program of health insurance benefits established 
in title XVIII of the Social Security Act. 
ENFORCEMENT AUTHORITY 
SEC. 6. The first undesignated paragraph of section 10 of the 
Federal Trade Commission Act (15 U.S.C. 50) is amended— 
(1) by inserting "any" after "produce"; and 
(2) by inserting "an order of a district court of the United 
States directing compliance with" after "obedience to". 
STANDARDS AND CERTIFICATION RULEMAKINGS 
SEC. 7. Section 18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(l)(B)) is amended by inserting after "section 5(a)(1))" the 
following: ", except that the Commission shall not develop or promul-
gate any trade rule or regulation with regard to the regulation of the 
development and utilization of the standards and certification activi-
ties pursuant to this section". 
Notice; 
publication in 
Federal 
Register. 
Submittal to 
congressional 
committees. 
Notice, 
submittal to 
congressional 
committees. 
ADVANCE NOTICE OF PROPOSED COMMISSION RULES 
SEC. 8. (a) Section 18(b) of the Federal Trade Commission Act (15 
U.S.C. 57a(b)) is amended— 
(1) by inserting "(1)" after the subsection designation; 
(2) by redesignating paragraph (1) through paragraph (4) as 
subparagraph (A) through subparagraph (D), respectively; and 
(3) by adding at the end thereof the following new paragraph: 
"(2)(A) Prior to the publication of any notice of proposed rulemak-
ing pursuant to paragraph (1)(A), the Commission shall publish an 
advance notice of proposed rulemaking in the Federal Register. Such 
advance notice shall— 
"(i) contain a brief description of the area of inquiry under 
consideration, the objectives which the Commission seeks to 
achieve, and possible regulatory alternatives under considera-
tion by the Commission; and 
"(ii) invite the response of interested parties with respect to 
such proposed rulemaking, including any suggestions or alterna-
tive methods for achieving such objectives. 
"(B) The Commission shall submit such advance notice of proposed 
rulemaking to the Committee on Commerce, Science, and Transpor-
tation of the Senate and to the Committee on Interstate and Foreign 
Commerce of the House of Representatives. The Commission may use 
such additional mechanisms as the Commission considers useful to 
obtain suggestions regarding the content of the area of inquiry before 
the publication of a general notice of proposed rulemaking under 
paragraph (1)(A). 
"(C) The Commission shall, 30 days before the publication of a 
notice of proposed rulemaking pursuant to paragraph (1)(A), submit 
such notice to the Committee on Commerce, Science, and Transporta-
tion of the Senate and to the Committee on Interstate and Foreign 
Commerce of the House of Representatives.". 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 377 
(bXl) Section 18(c) of the Federal Trade Commission Act (15 U.S.C. 
57a(c)) is amended by striking out "subsection (b)(3)" and inserting in 
lieu thereof "subsection (b)(1)(C)". 
(2) Section 18(e)(5)(C) of the Federal Trade Commission Act (15 
U.S.C. 57a(e)(5)(C)) is amended by striking out "subsection (b)(4)" and 
inserting in lieu thereof "subsection (b)(1)(D)". 
PRESIDING OFFICER AT RULEMAKING PROCEEDINGS 
SEC. 9. (a) Section 18(c) of the Federal Trade Commission Act (15 
U.S.C. 57a(c)) is amended— 
(1) by redesignating paragraph (1) through paragraph (4) as 
paragraph (2) through paragraph (5), respectively; and 
(2) by inserting before paragraph (2), as so redesignated in 
paragraph (1), the following new paragraph: 
"(1)(A) The Commission shall provide for the conduct of pro-
ceedings under this subsection by hearing officers who shall 
perform their functions in accordance with the requirements of 
this subsection. 
"(B) The officer who presides over the rulemaking proceedings 
shall be responsible to a chief presiding officer who shall not be 
responsible to any other officer or employee of the Commission. 
The officer who presides over the rulemaking proceeding shall 
make a recommended decision based upon the findings and 
conclusions of such officer as to all relevant and material 
evidence, except that such recommended decision may be made 
by another officer if the officer who presided over the proceeding 
is no longer available to the Commission. 
"(C) Except as required for the disposition of ex parte matters 
as authorized by law, no presiding officer shall consult any 
person or party with respect to any fact in issue unless such 
officer gives notice and opportunity for all parties to 
participate.". 
(b) Section 18(c) of the Federal Trade Commission Act (15 U.S.C. 
57a(c)), as amended in subsection (a), is further amended— 
(1) in paragraph (2) thereof, as so redesignated in subsection 
(a)(l)~ 
(A) by striking out "paragraph (2)" and inserting in lieu 
thereof "paragraph (3)"; and 
(B) by striking out "paragraph (2XB)" and inserting in lieu 
thereof "paragraph (3)(B)"; 
(2) in paragraph (3) thereof, as so redesignated in subsection 
(a)(1), by striking out "paragraph (1)" and inserting in lieu 
thereof paragraph (2)"; and 
(3) in paragraph (4XA) thereof, as so redesignated in subsection 
(aXD, by striking out "paragraphs (1) and (2)" and inserting in 
lieu thereof "paragraphs (2) and (3)". 
(c) Section 18(eXl)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(eXlXB)) is amended by striking out "subsection (cX4)" and 
inserting in lieu thereof "subsection (cX5) . 
COMPENSATION FOR PARTICIPATION IN RULEMAKING PROCEEDINGS 
SEC. 10. (a) Section 18(h) of the Federal Trade Commission Act (15 
U.S.C. 57a(h)) is amended by redesignating paragraph (3) as para-
graph (4), and by inserting after paragraph (2) the following new 
paragraph: 
94 STAT. 378 
PUBLIC LAW 96-252—MAY 28, 1980 
Compensation. 
Small business 
outreach 
program, 
establishment. 
Repeal. 
15 u s e 57a, 57a 
note. 
"(3) The amount of compensation which may be paid to any person 
under this subsection in connection with the participation by such 
person in any particular rulemaking proceeding under this section 
may not exceed $75,000. The aggregate amount of compensation paid 
under this subsection in any fiscal year to any person for all 
rulemaking proceedings in which such person participates during 
such 
fiscal 
year may not exceed $50,000.". 
(b) Section 18(hX2) of the Federal Trade Commission Act (15 U.S.C. 
57a(hX2)) is amended to read as follows: 
"(2) The Commission shall reserve an amount equal to 25 percent of 
the amount appropriated for the payment of 
compensation under this 
subsection for any fiscal year for use in accordance with this para-
graph. Such reserved amount shall be available solely for the pay-
ment of compensation to persons who either (A) would be regulated 
by the proposed rule involved; or (B) represent persons who would be 
so regulated. Any portion of such reserved amount which is not used 
for the payment of compensation to such persons under this para-
graph shall revert to the Treasury of the United States.". 
(c) Section 18(hX4) of the Federal Trade Commission Act, as so 
redesignated in subsection (a), is amended by striking out 
"$1,000,000" and inserting in lieu thereof "$750,000". 
(d) Section 18(h) of the Federal Trade Commission Act (15 U.S.C. 
57a(h)), as amended in subsection (a), is further amended by adding at 
the end thereof the following new paragraph: 
"(5) The Commission", in connection with the administration of this 
subsection pursuant to rules prescribed by the Commission under 
paragraph (1), shall establish a small business outreach program. 
Such program shall— 
"(A) solicit public comment from small businesses whose views 
otherwise would not be adequately represented, in order to 
ensure a fair determination in rulemaking proceedings under 
this section; and 
"(B) encourage the participation of small businesses in the 
compensation program administered by the Commission under 
this subsection by disseminating to small businesses information 
which explains the procedures and requirements applicable to 
the receipt of 
compensation under such program.". 
(e) The amendments made in subsection (a) and subsection (c) are 
repealed, effective at the end of fiscal year 1982. Effective upon such 
repeal, paragraph (5) of section 18(h) of the Federal Trade Commis-
sion Act, as added by subsection (d), is redesignated as paragraph (4) 
of section 18(h) of such Act. 
Ante, p. 374. 
COMMISSION RULEMAKINGS RELATING TO CHILDREN S ADVERTISING; 
PUBUCATION OF TEXT OF PROPOSED RULES 
SEC. 11. (aXD Section 18 of the Federal Trade Commission Act (15 
U.S.C. 57a) is amended by adding at the end thereof the following new 
subsection: 
"(i) The Commission shall not have any authority to promulgate 
any rule in the children's advertising proceeding pending on the date 
of the enactment of the Federal Trade Commission Improvements 
Act of 1980 or in any substantially similar proceeding on the basis of a 
determination by the Commission that such advertising constitutes 
an unfair act or practice in or affecting commerce.". 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 379 
15 u s e 57a note. 
(2) Section 18(a)(1) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(l)) is amended by striking out "The" and inserting in lieu 
thereof "Except as provided in subsection (i), the". 
(3) Section 18(b)(1)(A) of the Federal Trade Commission Act, as so 
redesignated in section 8(a), is amended by inserting after "particu-
larity the following: "the text of the rule, including any alternatives, 
which the Commission proposes to promulgate, and'. 
(b) The Federal Trade Commission shall not have any authority to 
use any funds which are authorized to be appropriated to carry out 
the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for fiscal year 
1980, 1981, or 1982, under section 24 of such Act, as amended by 
section 17 and as so redesignated in section 13, for the purpose of Post, pp. 39i, 380 
initiating any new rulemaking proceeding under section 18 of such 
Act which is intended to result in, or which may result in, the 
promulgation of any rule by the Commission which prohibits or 
otherwise regulates any commercial advertising on the basis of a 
determination by the Commission that such commercial advertising 
constitutes an unfair act or practice in or affecting commerce. 
(c) The amendments made in subsection (a) shall take effect on the 
date of the enactment of this Act. The children's advertising proceed-
ing pending on the date of the enactment of this Act shall not proceed 
further until such time as the Commission has complied with section 
18(b)(1)(A) of the Federal Trade Commission Act, as amended by 
subsection (a)(3) and as so redesignated in section 8(a). In any such 
further proceeding, interested parties shall be given a reasonable 
opportunity to present their views in accordance with section 
180t))(lXB) of the Federal Trade Commission Act, as so redesignated in 
section 8(a), section 18(b)(1)(C) of such Act, as so redesignated in 
section 8(a), and section 18(c) of such Act (15 U.S.C. 57a(c)). 
Effective date. 
15 u s e 57a note. 
EX PARTE MEETINGS 
SEC. 12. Section 18 of the Federal Trade Commission Act (15 U.S.C. 
57a), as amended in section IKaXD, is further amended by adding at 
the end thereof the following new subsections: 
"(jXD For purposes of this subsection, the term 'outside party' 
means any person other than (A) a Commissioner; (B) an officer or 
employee of the Commission; or (C) any person who has entered into a 
contract or any other agreement or arrangement with the Commis-
sion to provide any goods or services (including consulting services) to 
the Commission. 
"(2) Not later than 60 days after the date of the enactment of the 
Federal Trade Commission Improvements Act of 1980, the Commis-
sion shall publish a proposed rule, and not later than 180 days after 
such date of enactment the Commission shall promulgate a final rule, 
which shall authorize the Commission or any Commissioner to meet 
with any outside party concerning anv rulemaking proceeding of the 
Commission. Such rule shall provide that— 
"(A) notice of any such meeting shall be included in any weekly 
calendar prepared by the Commission; and 
"(B) a verbatim record or a summary of any such meeting, or of 
any communication relating to any such meeting, shall be kept, 
made available to the pubRc, and included in the rulemaking 
record, 
"(k) Not later than 60 days after the date of the enactment of the 
Federal Trade Commission Improvements Act of 1980, the Commis-
sion shall publish a proposed rule, and not later than 180 days after 
"Outside party.' 
Proposed rule, 
publication. 
Ante, p. 374. 
Final rule. 
94 STAT. 380 
PUBLIC LAW 96-252—MAY 28, 1980 
such date of enactment the Commission shall promulgate a final rule, 
which shall prohibit any officer, employee, or agent of the Commis-
sion with any investigative responsibility or other responsibility 
relating to any rulemaking proceeding within any operating bureau 
of the Commission, from communicating or causing to be communi-
cated to any Commissioner or to the personal staff of any Commis-
sioner any fact which is relevant to the merits of such proceeding and 
which is not on the rulemaking record of 
such proceeding, unless such 
communication is made available to the public and is included in the 
rulemaking record. The provisions of this subsection shall not apply 
to any communication to the extent such communication is required 
for the disposition of ex parte matters as authorized by law.". 
CIVIL INVESTIGATIVE DEMANDS 
SEC. 13. The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
15 use 57c, 58. 
amended by redesignating section 20 and section 21 as section 24 and 
section 25, respectively, and by inserting after section 19 the follow-
ing new section: 
Defimtions 
"SEC. 20. (a) For purposes of this section: 
"(1) The terms 'civil investigative demand' and 'demand' mean 
any demand issued by the Commission under subsection (c)(1). 
"(2) The term 'Commission investigation' means any inquiry 
conducted by a Commission investigator for the purpose of 
ascertaining whether any person is or has been engaged in any 
unfair or deceptive acts or practices in or affecting commerce 
15 use 45. 
(within the meaning of section 5(a)(1)). 
"(3) The term 'Commission investigator' means any attorney 
or investigator employed by the Commission who is charged with 
the duty of enforcing or carrying into effect any provisions 
relating to unfair or deceptive acts or practices in or affecting 
commerce (within the meaning of section 5(a)(1)). 
"(4) The term 'custodian' means the custodian or any deputy 
Post, p. 385. 
custodian designated under section 21(b)(2)(A). 
"(5) The term 'documentary material' includes the original or 
any copy of any book, record, report, memorandum, paper, 
communication, tabulation, chart, or other document. 
"(6) The term 'person' means any natural person, partnership, 
corporation, association, or other legal entity, including any 
person acting under color or authority of State law. 
"(7) The term 'violation' means any act or omission constitut-
ing an unfair or deceptive act or practice in or affecting com-
merce (within the meaning of section 5(a)(1)). 
"(b) For the purpose of investigations performed pursuant to this 
section with respect to unfair or deceptive acts or practices in or 
affecting commerce (within the meaning of section 5(a)(1)), all actions 
15 use 46, 49. 
Q
f the Commission taken under section 6 and section 9 shall be 
conducted pursuant to subsection (c). 
"(c)(1) Whenever the Commission has reason to believe that any 
person may be in possession, custody, or control of any documentary 
material, or may have any information, relevant to unfair or decep-
tive acts or practices in or affecting commerce (within the meaning of 
section 5(a)(1)), the Commission may, before the institution of any 
proceedings under this Act, issue in writing, and cause to be served 
upon such person, a civil investigative demand requiring such person 
to produce such documentary material for inspection and copying or 
reproduction, to file written reports or answers to questions, to give 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 381 
oral testimony concerning documentary material or other informa-
tion, or to furnish any combination of such material, answers, or 
testimony. 
"(2) Each civil investigative demand shall state the nature of the 
conduct constituting the alleged violation which is under investiga-
tion and the provision of law applicable to such violation, 
"(3) Each civil investigative demand for the production of documen-
tary material shall— 
"(A) describe each class of documentary material to be pro-
duced under the demand with such definiteness and certainty as 
to permit such material to be fairly identified; 
"(B) prescribe a return date or dates which will provide a 
reasonable period of time within which the material so 
demanded may be assembled and made available for inspection 
and copying or reproduction; and 
"(C) identify the custodian to whom such material shall be 
made available. 
"(4) Each civil investigative demand for written reports or answers 
to questions shall— 
"(A) propound with definiteness and certainty the reports to be 
produced or the questions to be answered; 
"(B) prescribe a date or dates at which time written reports or 
answers to questions shall be submitted; and 
"(C) identify the custodian to whom such reports or answers 
shall be submitted. 
"(5) Each civil investigative demand for the giving of oral testimony 
shall— 
"(A) prescribe a date, time, and place at which oral testimony 
shall be commenced; and 
"(B) identify a Commission investigator who shall conduct the 
investigation and the custodian to whom the transcript of such 
investigation shall be submitted. 
"(6)(A) Any civil investigative demand may be served by any 
Commission investigator at any place within the territorial jurisdic-
tion of 
any court of the United States. 
"(B) Any such demand or any enforcement petition filed under this 
section majf be served upon any person who is not found within the 
territorial jurisdiction of any court of the United States, in such 
manner as the Federal Rules of Civil Procedure prescribe for service 28 use app. 
in a foreign nation. 
"(C) To the extent that the courts of the United States have 
authority to assert jurisdiction over such person consistent with due 
process, the United States District Court for the District of Columbia 
shall have the same jurisdiction to take any action respecting 
compliance with this section by such person that such district court 
would have if such person were personally within the jurisdiction of 
such district court. 
"(7) Service of any civil investigative demand or any enforcement 
petition filed under this section may be made upon a partnership, 
corporation, association, or other legal entity by— 
"(A) delivering a duly executed copy of such demand or 
petition to any partner, executive officer, managing agent, or 
general agent of such partnership, corporation, association, or 
other legal entity, or to any agent of such partnership, corpora-
tion, association, or other legal entity authorized by appointment 
or by law to receive service of process on behalf of such partner-
ship, corporation, association, or other legal entity; 
94 STAT. 382 
PUBLIC LAW 96-252—MAY 28, 1980 
"(B) delivering a duly executed copy of such demand or petition 
to the principal office or place of business of the partnership, 
corporation, association, or other legal entity to be served; or 
"(C) depositing a duly executed copy in the United States 
mails, by registered or certified mail, return receipt requested, 
duly addressed to such partnership, corporation, association, or 
other legal entity at its principal office or place of business. 
"(8) Service of any civil investigative demand or of any enforcement 
petition filed under this section may be made upon any natural 
person by— 
"(A) delivering a duly executed copy of such demand or 
petition to the person to be served; or 
"(B) depositing a duly executed copy in the United States mails 
by registered or certified mail, return receipt requested, duly 
addressed to such person at his residence or principal office or 
place of business. 
"(9) A verified return by the individual serving any civil investiga-
tive demand or any enforcement petition filed under this section 
setting forth the manner of such service shall be proof of such service. 
In the case of service by registered or certified mail, such return shall 
be accompanied by the return post office receipt of delivery of such 
demand or enforcement petition. 
"(10) The production of documentary material in response to a civil 
investigative demand shall be made under a sworn certificate, in such 
form as the demand designates, by the person, if a natural person, to 
whom the demand is directed or, if not a natural person, by any 
person having knowledge of the facts and circumstances relating to 
such production, to the effect that all of the documentary material 
required by the demand and in the possession, custody, or control of 
the person to whom the demand is directed has been produced and 
made available to the custodian. 
"(11) Each reporting requirement or question in a civil investiga-
tive demand shall be answered separately and fully in writing under 
oath, unless it is objected to, in which event the reasons for the 
objection shall be stated in lieu of an answer, and it shall be 
submitted under a sworn certificate, in such form as the demand 
designates, by the person, if a natural person, to whom the demand is 
directed or, if not a natural person, by any person responsible for 
answering each reporting requirement or question, to the effect that 
all information required by the demand and in the possession, 
custody, control, or knowledge of the person to whom the demand is 
directed has been submitted. 
"(12)(A) Any Commission investigator before whom oral testimony 
is to be taken shall put the witness on oath or affirmation and shall 
personally, or by any individual acting under his direction and in his 
presence, record the testimony of the witness. The testimony shall be 
taken stenographically and transcribed. After the testimony is fully 
transcribed, the Commission investigator before whom the testimony 
is taken shall promptly transmit a copy of the transcript of the 
testimony to the custodian. 
"(B) Any Commission investigator before whom oral testimony is to 
be taken shall exclude from the place where the testimony is to be 
taken all other persons except the person giving the testimony, his 
attorney, the officer before whom the testimony is to be taken, and 
any stenographer taking such testimony. 
"(C) The oral testimony of any person taken pursuant to a civil 
investigative demand shall be taken in the judicial district of the 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 383 
United States in which such person resides, is found, or transacts 
business, or in such other place as may be agreed upon by the 
Commission investigator before whom the oral testimony of such 
person is to be taken and such person. 
"(DXi) Any person compelled to appear under a civil investigative 
demand for oral testimony pursuant to this section may be accompa-
nied, represented, and advised by an attorney. The attorney may 
advise such person, in confidence, either upon the request of such 
person or upon the initiative of the attorney, with respect to any 
question asked of such person. 
"(ii) Such person or attorney may object on the record to any 
question, in whole or in part, and shall briefly state for the record the 
reason for the objection. An objection may properly be made, re-
ceived, and entered upon the record when it is claimed that such 
person is entitled to refuse to answer the question on grounds of any 
constitutional or other legal right or privilege, including the privilege 
against self-incrimination. Such person shall not otherwise object to 
or refuse to answer any question, and shall not himself or through his 
attorney otherwise interrupt the oral examination. If such person 
refuses to answer any question, the Commission may petition the 
district court of the IJnited States pursuant to this section for an 
order compelling such person to answer such question. 
"(iii) If such person refuses to answer any question on grounds of 
the privilege against self-incrimination, the testimony of such person 
may be compelled in accordance with the provisions of section 6004 of 
title 18, United States Code. 
"(E)(i) After the testimony of any witness is fully transcribed, the 
Commission investigator shall afford the witness (who may be accom-
panied by an attorney) a reasonable opportunity to examine the 
transcript. The transcript shall be read to or by the witness, unless 
such examination and reading are waived by the witness. Any 
changes in form or substance which the witness desires to make shall 
be entered and identified upon the transcript by the Commission 
investigator with a statement of the reasons given by the witness for 
making such changes. The transcript shall then be signed by the 
witness, unless the witness in writing waives the signing, is ill, cannot 
be found, or refuses to sign. 
"(ii) If the transcript is not signed by the witness during the 30-day 
period following the date upon which the witness is first afforded a 
reasonable opportunity to examine it, the Commission investigator 
shall sign the transcript and state on the record the fact of the waiver, 
illness, absence of the witness, or the refusal to sign, together with 
any reasons given for the failure to sign. 
"(F) The Commission investigator shall certify on the transcript 
that the witness was duly sworn by him and that the transcript is a 
true record of the testimony given by the witness, and the Commis-
sion investigator shall promptly deliver the transcript or send it by 
registered or certified mail to the custodian. 
"(G) The Commission investigator shall furnish a copy of the 
transcript (upon payment of reasonable charges for the transcript) to 
the witness only, except that the Commission may for good cause 
limit such witness to inspection of the official transcript of his 
testimony. 
"(H) Any witness appearing for the taking of oral testimony 
pursuant to a civil investigative demand shall be entitled to the same 
fees and mileage which are paid to witnesses in the district courts of 
the United States. 
79-194 
O—81—pt. 1 
28 : QL3 
94 STAT. 384 
PUBLIC LAW 96-252—MAY 28, 1980 
Post, p. 385. 
Enforcement for 
noncompliance. 
Investigative 
demand, petition 
for modification. 
Ante, p. 374. 
"(d) Materials received as a result of a civil investigative demand 
shall be subject to the procedures established in section 2L 
"(e) Whenever any person fails to comply with any civil investiga-
tive demand duly served upon him under this section, or whenever 
satisfactory copying or reproduction of material requested pursuant 
to the demand cannot be accomplished and such person refuses to 
surrender such material, the Commission, through such officers or 
attorneys as it may designate, may file, in the district court of the 
United States for any judicial district in which such person resides, is 
found, or transacts business, and serve upon such person, a petition 
for an order of such court for the enforcement of this section. All 
process of any court to which application may be made as provided in 
this subsection may be served in any judicial district. 
"(f)(1) Not later than 20 days after the service of any civil investiga-
tive demand upon any person under subsection (c), or at any time 
before the return date specified in the demand, whichever period is 
shorter, or within such period exceeding 20 days after service or in 
excess of such return date as may be prescribed in writing, subse-
quent to service, by any Commission investigator named in the 
demand, such person may file with the Commission a petition for an 
order by the Commission modifying or setting aside the demand. 
"(2) The time permitted for compliance with the demand in whole 
or in part, as deemed proper and ordered by the Commission, shall 
not run during the pendency of such petition at the Commission, 
except thrt such person shall comply with any portions of the 
demand not sought to be modified or set aside. Such petition shall 
specify each ground upon which the petitioner relies in seeking such 
relief, and may be based upon any failure of the demand to comply 
with the provisions of this section, or upon any constitutional or other 
legal right or privilege of such person. 
"(fO At any time during which any custodian is in custody or control 
of any documentary material, reports, answers to questions, or 
transcripts of oral testimony given by any person in compliance with 
any civil investigative demand, such person may file, in the district 
court of the United States for the judicial district within which the 
office-of such custodian is situated, and serve upon such custodian, a 
petition for an order of such court requiring the performance by such 
custodian of any duty imposed upon him by this section or section 21. 
"(h) Whenever any petition is filed in any district court of the 
United States under this section, such court shall have jurisdiction to 
hear and determine the matter so presented, and to enter such order 
or orders as may be required to carry into effect the provisions of this 
section. Any final order so entered shall be subject to appeal pursuant 
to section 1291 of title 28, United States Code. Any disobedience of 
any final order entered under this section by any court shall be 
punished as a contempt of such court. 
"(i) Notwithstanding any other provision of law, the Commission 
shall have no authority to issue a subpoena or make a demand for 
information, under authority of this Act or any other provision of 
law, unless such subpoena or demand for information is signed by a 
Commissioner acting pursuant to a Commission resolution. The 
Commission shall not delegate the power conferred by this section to 
sign subpoenas or demands for information to any other person. 
"(j) The provisions of this section shall not— 
"(1) apply to any proceeding under section 5(b); or 
"(2) apply to or affect the jurisdiction, duties, or powers of any 
agency of the Federal Government, other than the Commission, 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 385 
regardless of whether such jurisdiction, duties, or powers are 
derived in whole or in part, by reference to this Act.". 
CONFIDENTIAUTY 
SEC. 14. The Federal Trade Commission Act (15 U.S.C. 41 et seq.), as 
amended in section 13, is further amended by inserting after section 
20 the following new section: 
"SEC. 21. (a) For purposes of this section: 
"(1) The term 'material' means documentary material, written 
reports or answers to questions, and transcripts of oral testi-
mony. 
"(2) The term 'Federal agency' has the meaning given it in 
section 552(e) of title 5, United States Code. 
"(bXD With respect to any document or transcript of oral testimony 
received by the Commission pursuant to compulsory process in an 
investigation, a purpose of which is to determine whether any person 
may have violated any provision of the laws administered by the 
Commission, the procedures established in paragraph (2) through 
paragraph (7) shall apply. 
"(2)(A) The Commission shall designate a duly authorized agent to 
serve as custodian of documentary material, or written reports or 
answers to questions, and transcripts of oral testimony, and such 
additional duly authorized agents as the Commission shall determine 
from time to time to be necessary to serve as deputies to the 
custodian. 
"(B) Any person upon whom any demand for the production of 
documentary material has been duly served shall make such mate-
rial available for inspection £md cop5dng or reproduction to the 
custodian designated in such demand at the principal place of 
business of such person (or at such other place as such custodian and 
such person thereafter may agree and prescribe in writing or £is the 
court may direct pursuant to section 20(h)) on the return date 
specified in such demand (or on such later date as such custodian may 
prescribe in writing). Such person may upon written agreement 
between such person and the custodian substitute copies for originals 
of all or any part of such material. 
"(3XA) The custodian to whom any documentary material, written 
reports or answers to questions, and transcripts of oral testimony are 
delivered shall take physical possession of such material, reports or 
answers, and transcripts, and shall be responsible for the use made of 
such material, reports or answers, and transcripts, and for the return 
of material, pursuant to the requirements of this section. 
"(B) The custodian may prepare such copies of the documentary 
material, written reports or answers to questions, and transcripts of 
oral testimony as may be required for official use by any duly 
authorized officer or employee of the Commission under regulations 
which shall be promulgated by the Commission. Notwithstanding 
subparagraph (C), such material and transcripts may be used by any 
such officer or employee in connection with the taking of oral 
testimony under this section. 
"(C) Except as otherwise provided in this section, while in the 
possession of the custodian, no documentary material, reports or 
answers to questions, and transcripts of oral testimony shall be 
available for examination by any individual other than a duly 
authorized officer or employee of the Commission without the con-
sent of the person who produced the material or transcripts. Nothing 
Ante, p. 380. 
15 u s e 57b-2. 
"Material." 
"Federal 
agency." 
Custodian of 
documentary 
material, 
designation. 
Material, 
availability for 
inspection or 
reproduction. 
Ante, p. 380. 
Responsibility 
for use. 
Copies. 
Examination. 
94 STAT. 386 
PUBLIC LAW 96-252—MAY 28, 1980 
in this section is intended to prevent disclosure to either House of the 
Congress or to any committee or subcommittee of the Congress, 
except that the Commission immediately shall notify the owner or 
provider of any such information of a request for information 
designated as confidential by the owner or provider. 
"(D) While in the possession of the custodian and under such 
reasonable terms and conditions as the Commission shall prescribe— 
"(i) documentary material or written reports shall be available 
for examination by the person who produced the material, or by 
any duly authorized representative of such person; and 
"(ii) answers to questions in writing and transcripts of oral 
testimony shall be available for examination by the person who 
produced the testimony or by his attorney. 
"(4) Whenever the Commission has instituted a proceeding against 
a person, partnership, or corporation, the custodian may deliver to 
any officer or employee of the Commission documentary material, 
written reports or answers to questions, and transcripts of oral 
testimony for official use in connection with such proceeding. Upon 
the completion of the proceeding, the officer or employee shall return 
to the custodian any such material so delivered which has not been 
received into the record of the proceeding. 
"(5) If any documentary material, written reports or answers to 
questions, and transcripts of oral testimony have been produced in 
the course of any investigation by any person pursuant to compulsory 
process and— 
"(A) any proceeding arising out of the investigation has been 
completed; or 
"(B) no proceeding in which the material may be used has been 
commenced within a reasonable time after completion of the 
examination and analysis of all such material and other informa-
tion assembled in the course of the investigation; 
then the custodian shall, upon written request of the person who 
produced the material, return to the person any such material which 
has not been received into the record of any such proceeding (other 
than copies of such material made by the custodian pursuant to 
paragraph (3)(B)). 
"(6) The custodian of any documentary material, written reports or 
answers to questions, and transcripts of oral testimony may deliver to 
any officers or employees of appropriate Federal law enforcement 
agencies, in response to a written request, copies of such material for 
use in connection with an investigation or proceeding under the juris-
diction of any such agency. Such materials shall not be made avail-
able to any such agency until the custodian receives certification of 
any officer of such agency that such information will be maintained 
in confidence and will be used only for official law enforcement 
purposes. Such documentary material, written reports or answers to 
questions, and transcripts of oral testimony may be used by any 
officer or employee of such agency only in such manner and subject to 
such conditions as apply to the Commission under this section. The 
custodian may make such materials available to any State law 
enforcement agency upon the prior certification of any officer of such 
agency that such information will be maintained in confidence and 
will be used only for official law enforcement purposes. 
"(7) In the event of the death, disability, or separation from service 
in the Commission of the custodian of any documentary material, 
written reports or answers to questions, and transcripts of oral 
testimony produced under any demand issued under this Act, or the 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 387 
official relief of the custodian from responsibility for the custody and 
control of such material, the Commission promptly shall— 
"(A) designate under paragraph (2)(A) another duly authorized 
agent to serve as custodian of such material; and 
"(B) transmit in writing to the person who produced the 
material or testimony notice as to the identity and address of the 
successor so designated. 
Any successor designated under paragraph (2)(A) as a result of the 
requirements of this paragraph shall have (with regard to the 
material involved) all duties and responsibilities imposed by this 
section upon his predecessor in office with regard to such material, 
except that he shall not be held responsible for any default or 
dereliction which occurred before his designation. 
"(c)(1) All information reported to or otherwise obtained by the 
Commission which is not subject to the requirements of subsection (b) 
shall be considered confidential when so marked by the person 
supplying the information and shall not be disclosed, except in 
accordance with the procedures established in paragraph (2) and 
paragraph (3). 
"(2) If the Commission determines that a document marked confi-
dential by the person supplying it may be disclosed because it is not a 
trade secret or commercial or financial information which is obtained 
from any person and which is privileged or confidential, within the 
meaning of section 6(f), then the Commission shall notify such person ^"^e, p. 374. 
in writing that the Commission intends to disclose the document at a 
date not less than 10 days after the date of receipt of notification. 
"(3) Any person receiving such notification may, if he believes 
disclosure of the document would cause disclosure of a trade secret, or 
commercial or financial information which is obtained from any 
person and which is privileged or confidential, within the meaning of 
section 6(f), before the date set for release of the document, bring an 
action in the district court of the United States for the district within 
which the documents are located or in the United States District 
Court for the District of Columbia to restrain disclosure of the 
document. Any person receiving such notification may file with the File for stay of 
appropriate district court or court of appeals of the United States, as disclosure. 
appropriate, an application for a stay of disclosure. The documents 
shall not be disclosed until the court has ruled on the application for a 
stay. 
"(d)(1) The provisions of subsection (c) shall not be construed to 
prohibit— 
"(A) the disclosure of information to either House of the 
Congress or to any committee or subcommittee of the Congress, 
except that the Commission immediately shall notify the owner 
or provider of any such information of a request for information 
designated as confidential by the owner or provider; 
"(B) the disclosure of the results of any investigation or study 
carried out or prepared by the Commission, except that no 
information shall be identified nor shall information be disclosed 
in such a manner as to disclose a trade secret of any person 
supplying the trade secret, or to disclose any commercial or 
financial information which is obtained from any person and 
which is privileged or confidential; 
"(C) the disclosure of relevant and material information in 
Commission adjudicative proceedings or in judicial proceedings 
to which the Commission is a party; or 
94 STAT. 388 
PUBLIC LAW 96-252—MAY 28, 1980 
Information 
disclosure in 
adjudicative or 
judicial 
proceedings. 
Exemption from 
disclosure. 
"(D) the disclosure to a Federal agency of disaggregated infor-
mation obtained in accordance with section 3512 of title 44, 
United States Code, except that the recipient agency shall use 
such disaggregated information for economic, statistical, or 
policymaking purposes only, and shall not disclose such informa-
tion in an individually identifiable form. 
"(2) Any disclosure of relevant and material information in Com-
mission adjudicative proceedings or in judicial proceedings to which 
the Commission is a party shall be governed by the rules of the 
Commission for adjudicative proceedings or by court rules or orders, 
except that the rules of the Commission shall not be amended in a 
manner inconsistent with the purposes of this section. 
"(e) Nothing in this section shall supersede any statutory provision 
which expressly prohibits or limits particular disclosures by the 
Commission, or which authorizes disclosures to any other Federal 
agency. 
"(f) Any material which is received by the Commission in any 
investigation, a purpose of which is to determine whether any person 
may have violated any provision of the laws administered by the 
Commission, and which is provided pursuant to any compulsory 
process under this Act or which is provided voluntarily in place of 
such compulsory process shall be exempt from disclosure under 
section 552 of title 5, United States Code.". 
15 u s e 57b-3. 
"Rule." 
15 u s e 46, 57a. 
"Rulemaking." 
Preliminary 
regulatory 
analysis, 
contents. 
REGULATORY ANALYSES; JUDICIAL REVIEW; REGULATORY AGENDAS 
SEC. 15. The Federal Trade Commission Act (15 U.S.C. 41 et seq.), as 
amended in section 13 and section 14, is further amended by inserting 
after section 21 the following new section: 
"SEC. 22. (a) For purposes of 
this section: 
"(1) The term 'rule* means any rule promulgated by the 
Commission under section 6 or section 18, except that such term 
does not include interpretive rules, rules involving Commission 
management or personnel, general statements of policy, or rules 
relating to Commission organization, procedure, or practice. 
Such term does not include any amendment to a rule unless the 
Commission— 
"(A) estimates that such amendment will have an annual 
effect on the national economy of $100,000,000 or more; 
"(B) estimates that such amendment will cause a substan-
tial change in the cost or price of goods or services which are 
used extensively by particular industries, which are supplied 
extensively in particular geographic regions, or which are 
acquired in si^ificant quantities by the Federal Govern-
ment, or by State or local governments; or 
"(C) otherwise determines that such amendment will have 
a significant impact upon persons subject to regulation 
under such amendment and upon consumers. 
"(2) The term 'rulemaking' means any Commission process for 
formulating or amending a rule. 
"(b)(1) In any case in which the Commission publishes notice of a 
proposed rulemaking, the Commission shall issue a preliminary 
regulatory analysis relating to the proposed rule involved. Each 
preliminary regulatory analysis shall contain— 
"(A) a concise statement of the need for, and the objectives of, 
the proposed rule; 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 389 
"(B) a description of any reasonable alternatives to the pro-
posed rule which may accomplish the stated objective of the rule 
in a manner consistent with applicable law; and 
"(C) for the proposed rule, and for each of the alternatives 
described in the analysis, a preliminary analysis of the projected 
benefits and any adverse economic effects and any other effects, 
and of the effectiveness of the proposed rule and each alternative 
in meeting the stated objectives of the proposed rule. 
"(2) In any case in which the Commission promulgates a final rule, 
the Commission shall issue a final regulatory analysis relating to the 
final rule. Each final regulatory analysis shall contain— 
"(A) a concise statement of the need for, and the objectives of, 
the final rule; 
"(B) a description of any alternatives to the final rule which 
were considered by the Commission; 
"(C) an analysis of the projected benefits and any adverse 
economic effects and any other effects of the final rule; 
"(D) an explanation of the reasons for the determination of the 
Commission that the final rule will attain its objectives in a 
manner consistent with applicable law and the reasons the 
particular alternative was chosen; and 
"(E) a summary of any significant issues raised by the com-
ments submitted during the public comment period in response 
to the preliminary regulatory analysis, and a summary of the 
assessment by the Commission of such issues. 
"(3)(A) In order to avoid duplication or waste, the Commission is 
authorized to— 
"(i) consider a series of closely related rules as one rule for 
purposes of this subsection; and 
"(ii) whenever appropriate, incorporate any data or analysis 
contained in a regulatory analysis issued under this subsection in 
the statement of basis and purpose to accompany any rule 
promulgated under section 18(a)(1)(B), and incorporate by refer-
ence in any preliminary or final regulatory analysis information 
contained in a notice of proposed rulemaking or a statement of 
basis and purpose. 
"(B) The Commission shall include, in each notice of proposed 
rulemaking and in each publication of a final rule, a statement of the 
manner in which the public may obtain copies of the preliminary and 
final regulatory analyses. The Commission may charge a reasonable 
fee for the copying and mailing of regulatory analyses. The regula-
tory analyses shall be furnished without charge or at a reduced 
charge if the Commission determines that waiver or reduction of the 
fee is in the public interest because furnishing the information 
primarily benefits the general public. 
"(4) The Commission is authorized to delay the completion of any of 
the requirements established in this subsection by publishing in the 
Federal Register, not later than the date of publication of the final 
rule involved, a finding that the final rule is being promulgated in 
response to an emergency which makes timely compliance with the 
provisions of this subsection impracticable. Such publication shall 
include a statement of 
the reasons for such finding. 
"(5) The requirements of this subsection shall not be construed to 
alter in any manner the substantive standards applicable to any 
action by the Commission, or the procedural standards otherwise 
applicable to such action. 
Final regulatory 
analysis, 
contents. 
Ante, p. 376. 
Preliminary and 
final regulatory 
analyses, 
availability. 
Fee. 
Publication in 
Federal 
Register. 
94 STAT. 390 
PUBLIC LAW 96-252—MAY 28, 1980 
Judicial review. 
18 u s e 57a. 
Regulatory 
agenda. 
Publication 
dates in Federal 
Register. 
"(c)(1) The contents and adequacy of any regulatory analysis 
prepared or issued by the Commission under this section, including 
the adequacy of any procedure involved in such preparation or 
issuance, shall not be subject to any judicial review in any court, 
except that a court, upon review of a rule pursuant to section 18(e), 
may set aside such rule if the Commission has failed entirely to 
prepare a regulatory analysis. 
"(2) Except as specified in paragraph (1), no Commission action may 
be invalidated, remanded, or otherwise affected by any court on 
account of any failure to comply with the requirements of this 
section. 
"(3) The provisions of this subsection do not alter the substantive or 
procedural standards otherwise applicable to judicial review of any 
action by the Commission. 
"(d)(1) The Commission shall publish at least semiannually a 
regulatory agenda. Each regulatory agenda shall contain a list of 
rules which the Commission intends to propose or promulgate during 
the 12-month period following the publication of the agenda. On the 
first Monday in October of each year, the Commission shall publish in 
the Federal Register a schedule showing the dates during the current 
fiscal year on which the semiannual regulatory agenda of the 
Commission will be published. 
"(2) For each rule listed in a regulatory agenda, the Commission 
shall-
"(A) describe the rule; 
"(B) state the objectives of and the legal basis for the rule; and 
"(C) specify any dates established or anticipated by the Com-
mission for taking action, including dates for advance notice of 
proposed rulemaking, notices of proposed rulemaking, and final 
action by the Commission. 
"(3) Each regulatory agenda shall state the name, office address, 
and office telephone number of the Commission officer or employee 
responsible for responding to any inquiry relating to each rule listed. 
"(4) The Commission shall not propose or promulgate a rule which 
was not listed on a regulatory agenda unless the Commission pub-
lishes with the rule an explanation of the reasons the rule was 
omitted from such agenda.". 
"Board of 
Governors." 
15 u s e 57b-4. 
GOOD FAITH RELIANCE UPON ACTIONS OF BOARD OF GOVERNORS OF 
FEDERAL RESERVE SYSTEM 
SEC. 16. The Federal Trade Commission Act (15 U.S.C. 41 et seq.), as 
amended in section 13, section 14, and section 15, is further amended 
by inserting after section 22 the following new section: 
"SEC. 23. (a) For purposes of this section, the term 'Board of 
Governors' means the Board of Governors of the Federal Reserve 
System. 
"(b) Notwithstanding any other provision of law, if^ 
"(1) any person, partnership, or corporation engages in any 
conduct or practice which allegedly constitutes a violation of any 
Federal law with respect to which the Board of Governors of the 
Federal Reserve System has rulemaking authority; and 
"(2) such person, partnership, or corporation engaged in such 
conduct or practice in good faith reliance upon, and in conform-
ity with, any rule, regulation, statement of interpretation, or 
statement of approval prescribed or issued by the Board of 
Governors under such Federal law; 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 391 
then such good faith reliance shall constitute a defense in any 
administrative or judicial proceeding commenced against such 
person, partnership, or corporation by the C!ommission under this Act 
or in any administrative or judicial proceeding commenced against 
such person, partnership, or corporation by the Attorney General of 
the United States, upon request made by the Commission, under any 
provision of law. 
"(c) The provisions of subsection (b) shall apply regardless of 
whether any rule, regulation, statement of interpretation, or state-
ment of approval prescribed or issued by the Board of Governors is 
amended, rescinded, or held to be invalid by judicial authority or any 
other authority after a person, partnership, or corporation has 
engaged in any conduct or practice in good faith reliance upon, and in 
conformity with, such rule, regulation, statement of interpretation, 
or statement of approval. 
"(d) If, in any case in which— 
"(1) the Board of Governors has rulemaking authority with 
respect to any Federal law; and 
"(2) the Commission is authorized to enforce the requirements 
of such Federal law; 
any person, partnership, or corporation submits a request to the 
Board of Governors for the issuance of any statement of interpreta-
tion or statement of approval relating to any conduct or practice of 
such person, partnership, or corporation which may be subject to the 
requirements of such Federal law, then the Board of Governors shall 
dispose of such request as soon as practicable after the receipt of such 
request". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 17. Section 24 of the Federal Trade Commission Act, as so is use 57c. 
redesignated in section 13, is amended— 
^nte, p. 380. 
(1) by striking out "and" after "1976;"; and 
(2) by striking out "1977. For fiscal years" and all that follows 
through "law." and inserting in lieu thereof "1977; not to exceed 
$70,000,000 for the fiscal year ending September 30,1980; not to 
exceed $75,000,000 for the fiscal year ending September 30,1981; 
and not to exceed $80,000,000 for the fiscal year ending Septem-
ber 30,1982.". 
RESTRICTION OF COMMISSION AUTHORITY UNDER LANHAM TRADEMARK 
ACT 
SEC. 18. The Federal Trade Commission shall not have any author- is use 57c note. 
ity to use any funds which are authorized to be appropriated to carry 
out the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for fiscal 
year 1980,1981, or 1982, under section 24 of such Act, as amended by 
section 17 and as so redesignated in section 13, for the purpose of 
taking any action under section 14 of the Act entitled An Act to 
provide for the registration and protection of trademarks used in 
commerce, to carry out the provisions of certain international con-
ventions, and for other purposes" (15 U.S.C. 1064), commonly referred 
to as the Lanham Trademark Act, with respect to the cancellation of 
the registration of any mark on the ground that such mark has 
become the common descriptive name of an article or substance. 
RESTRICTION OF COMMISSION REGULATION OF FUNERAL INDUSTRY 
SEC. 19. (a) For purposes of this section: 
15 use 57a note. 
94 STAT. 392 
PUBLIC LAW 96-252—MAY 28, 1980 
"Commission." 
"Funeral trade 
regulation rule." 
Funds, use. 
Publication in 
Federal 
Register. 
(1) The term "Commission" means the Federal Trade Commis-
sion. 
(2) The term "funeral trade regulation rule" means the pro-
posed trade regulation rule which was published in the Federal 
Register of August 29,1975, beginning at page 39901, and which 
relates to the regulation of funeral industry practices. 
(b) Except as provided in subsection (c), the Federal Trade Commis-
sion shall not have any authority to use any funds which are 
authorized to be appropriated to carry out the Federal Trade Com-
mission Act (15 U.S.C. 41 et seq.) for fiscal year 1980, 1981, or 1982, 
under section 24 of such Act, as amended by section 17 and as so 
redesignated in section 13, to issue— 
(1) the funeral trade regulation rule in final form; or 
(2) any other trade regulation rule, in proposed or final form, 
which sets forth rules substantially similar to the rules set forth 
in the funeral trade regulation rule. 
(c)(1) The Commission shall have authority to use the funds 
specified in subsection (b) to issue the funeral trade regulation rule in 
final form only to the extent that the funeral trade regulation rule (in 
its final form)— 
(A) requires persons, partnerships, and corporations furnish-
ing goods and services relating to funerals to disclose the fees or 
prices charged for such goods and services in a manner pre-
scribed by the Commission; and 
(B) prohibits or prevents such persons, partnerships, and 
corporations from— 
(i) engaging in any misrepresentation; 
(ii) engaging in any boycott against, or making any threat 
against, any other person, partnership, or corporation fur-
nishing goods and services relating to funerals; 
(iii) conditioning the furnishing of any such goods or 
services to a consumer upon the purchase by such consumer 
of other such goods or services; or 
(iv) furnishing any such goods or services to a consumer for 
a fee without obtaining the prior approval of such consumer. 
(2)(A) The Commission, before issuing the funeral trade regulation 
rule in final form— 
(i) shall publish in the Federal Register for public comment a 
revised version of the funeral trade regulation rule which con-
tains the provisions specified in subparagraph (A) and subpara-
graph (B) of paragraph (1); 
(ii) shall allow interested persons to submit written data, 
views, and arguments relating to such revised version of the 
funeral trade regulation rule, and make all such submissions 
publicly available; and 
(iii) may permit interested persons, or, as appropriate, a single 
representative of each group of such persons having the same or 
similar interests with respect to such revised version of the 
funeral trade regulation rule, to present their position orally. 
(B) The requirements established in subparagraph (A) are in 
addition to, and not in lieu of, any other requirements established in 
the Federal Trade Commission Act (15 U.S.C. 41 et seq.), or in any 
other provision of law, and applicable to the promulgation of trade 
regulation rules by the Commission. The requirements established in 
subparagraph (A) shall not be construed to vacate or otherwise affect 
any proceedings conducted by the Commission before the date of the 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 393 
enactment of this Act with respect to the funeral trade regulation 
rule. 
(d) If, upon application to the Commission by an appropriate State 
agency, the Commission determines (pursuant to rules prescribed by 
the Commission) that— 
(1) there is in effect a State requirement which applies to any 
transaction to which this section applies; and 
(2) such State requirement affords an overall level of protec-
tion to consumers which is as great as, or greater than, the 
protection afforded by this section; 
then only such State requirement shall be applicable to the extent 
specified in such determination for so long as the State administers 
and enforces effectively any such State requirement. 
RESTRICTION OP COMMISSION AUTHORITY RELATING TO AGRICULTURAL 
COOPERATIVES 
SEC 20. (a) The Federal Trade Commission shall not have any 1
5 use 57c note. 
authority to use any funds which are authorized to be appropriated to 
carry out the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for 
fiscal year 1980, 1981, or 1982, under section 24 of such Act, as 
amended by section 17 and as so redesignated in section 13, for the 
purpose of conducting any study, investigation, or prosecution of any 
agricultural cooperative for any conduct which, because of the 
provisions of the Act entitled "An Act to authorize association of 
producers of agricultural products", approved February 18, 1922 (7 
U.S.C. 291 et seq.), commonly known as the Capper-Volstead Act, is 
not a violation of any Federal emtitrust Act or the Federsd Trade 
Commission Act (15 U.S.C. 41 et seq.). 
(b) The Federal Trade Commission shall not have any authority to 
use any funds which are authorized to be appropriated to carry out 
the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for fiscal year 
1980, 1981, or 1982, under section 24 of such Act, as amended by 
section 17 and as so redesignated in section 13, for the purpose of 
conducting any study or investigation of any agricultural marketing 
orders. 
Study or 
investigation, 
prohibition. 
CONGRESSIONAL REVIEW OF RULES 
15 u s e 57a-l. 
SEC. 21. (a)(1) The Federal Trade Commission, after promulgating a 
final rule, shall submit such final rule to the Congress for review in 
accordance with this section. Such final rule shall be delivered to 
each House of the Congress on the same date and to each House of the 
Congress while it is in session. Such final rule shall be referred to the 
Committee on Commerce, Science, and Transportation of the Senate 
and to the Committee on Interstate and Foreign Commerce of the 
House, respectively. 
(2) Any such final rule shall become effective in accordance with its Effective date, 
terms unless, before the end of the period of 90 calendar days of 
continuous session after the date such final rule is submitted to the 
Congress, both Houses of the Congress adopt a concurrent resolution 
disapproving such final rule. 
(b)(1) The provisions of this subsection are enacted by the 
Congress— 
(A) as an exercise of the rulemaking power of the Senate and 
the House of Representatives, respectively, and as such they are 
deemed a part of the rules of each House, respectively, but 
applicable only with respect to the procedure to be followed in 
94 STAT. 394 
PUBLIC LAW 96-252^MAY 28, 1980 
that House in the case of concurrent resolutions which are 
subject to this section, and such provisions supersede other rules 
only to the extent that they are inconsistent with such other 
rules; and 
(B) with full recognition of the constitutional right of either 
House to change the rules (so far as relating to the procedure of 
that House) at any time, in the same manner and to the same 
extent as in the case of any other rule of that House. 
(2)(A) Any concurrent resolution disapproving a final rule of the 
Commission shall, upon introduction or receipt from the other House 
of the Congress, be referred immediately by the presiding officer of 
such House to the Committee on Commerce, Science, and Transporta-
tion of the Senate or to the Committee on Interstate and Foreign 
Commerce of the House, as the case may be. 
(B) If a committee to which a concurrent resolution is referred does 
not report such concurrent resolution before the end of the period of 
75 calendar days of continuous session of the Congress after the 
referral of such resolution to the Committee on Commerce, Science, 
and Transportation of the Senate or to the Committee on Interstate 
and Foreign Commerce of the House, as the case may be, under 
subsection (a)(1), it shall be in order to move to discharge any such 
committee from further consideration of such concurrent resolution. 
(C)(i) A motion to discharge in the Senate may be made only by a 
Member favoring the concurrent resolution, shall be privileged 
(except that it may not be made after the committee has reported a 
concurrent resolution with respect to the same final rule of the 
Commission), and debate on such motion shall be limited to not more 
than 1 hour, to be divided equally between those favoring and those 
opposing the motion. An amendment to the motion shall not be in 
order, and it shall not be in order to move to reconsider the vote by 
which the motion was agreed to or disagreed to. If the motion to 
discharge is agreed to or disagreed to, the motion may not be 
renewed, nor may another motion to discharge the committee be 
made with respect to any other concurrent resolution with respect to 
the same final rule of the Commission. 
(ii) A motion to discharge in the House may be made by presenta-
tion in writing to the Clerk. The motion may be called up only if the 
motion has been signed by one-fifth of the Members of the House. The 
motion is highly privileged (except that it may not be made after the 
committee has reported a concurrent resolution of disapproval with 
respect to the same rule). Debate on such motion shall be limited to 
not more than 1 hour, the time to be divided equally between those 
favoring and those opposing the motion. An amendment to the 
motion is not in order, and it is not in order to move to reconsider the 
vote by which the motion is agreed to or disagreed to. 
(3)(A) When a committee has reported, or has been discharged from 
further consideration of, a concurrent resolution, it shall be at any 
time thereafter in order (even though a previous motion to the same 
effect has been disagreed to) to move to proceed to the consideration 
of the concurrent resolution. The motion shall be privileged in the 
Senate and highly privileged in the House of Representatives, and 
shall not be debatable. An amendment to the motion shall not be in 
order, and it shall not be in order to move to reconsider the vote by 
which the motion was agreed to or disagreed to. 
(B) Debate on the concurrent resolution shall be limited to not more 
than 10 hours, which shall be divided equally between those favoring 
and those opposing such concurrent resolution. A motion further to 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 395 
limit debate shall not be debatable. An amendment to, or motion to 
recommit, the concurrent resolution shall not be in order, and it shall 
not be in order to move to reconsider the vote by which such 
concurrent resolution was agreed to or disagreed to. 
(4) Appeals from the decision of the Chair relating to the applica-
tion of the rules of the Senate or the House of Representatives, as the 
case may be, to the procedure relating to a concurrent resolution 
shall be decided without debate. 
(5) Notwithstanding any other provision of this subsection, if a 
House h£is approved a concurrent resolution with respect to any final 
rule of the Commission, then it shall not be in order to consider in 
such House any other concurrent resolution with respect to the same 
final rule. 
(c)(1) If a final rule of the Commission is disapproved by the 
Congress under subsection (a)(2), then the Commission may promul-
gate a final rule which relates to the same acts or practices as the 
final rule disapproved by the Congress in accordance with this 
subsection. Such final rule— 
(A) shall be based upon— 
(i) the rulemaking record of the final rule disapproved by 
the Congress; or 
(ii) such rulemaking record and the record established in 
supplemental rulemaking proceedings conducted by the 
Commission in accordance with section 553 of title 5, United 
States Code, in any case in which the Commission deter-
mines that it is necessary to supplement the existing rule-
making record; and 
(B) may contain such changes as the Commission considers 
necessary or appropriate. 
(2) The Commission, after promulgating a final rule under this 
subsection, shall submit the final rule to the Congress in accordance 
with subsection (a)(1). 
(d) Congressional inaction on, or rejection of, a concurrent resolu-
tion of disapproval under this section shall not be construed as an 
expression of approval of the final rule involved, and shall not be 
construed to create any presumption of validity with respect to such 
final rule. 
(e)(1) The Comptroller General shall prepare a report which exam- Report, contents. 
ines the review of Commission rules under this section. Such report 
shall— 
(A) list the final rules submitted to the Congress by the 
Commission during the period in which this section is in effect; 
(B) list the final rules disapproved by the Congress under 
subsection (a)(2); 
(C) specify the number of instances in which the Commission 
promulgates a final rule in accordance with subsection (c); and 
(D) include an analysis of any impact which the provisions of 
this section have had upon the decisionmaking and rulemaking 
processes of the Commission. 
(2) The Comptroller General shall submit the report required in 
paragraph (1) to the Congress before the end of fiscal year 1982. 
(f)(1) Any interested party may institute such actions in the 
appropriate district court of the United States, including actions for 
declaratory judgment, as may be appropriate to construe the consti-
tutionality of any provision of this section. The district court immedi-
ately shall certify all questions of the constitutionality of this section 
Report to 
Congress. 
Actions in a U.S. 
district court. 
94 STAT. 396 
PUBLIC LAW 96-252—MAY 28, 1980 
Appeal to 
Supreme Court 
of the United 
States. 
Resubmittal to 
Congress. 
Definitions. 
Effective date. 
15 u s e 57a-l 
note. 
15 u s e 57a note. 
to the United States court of appeals for the circuit involved, which 
shall hear the matter sitting en banc. 
(2) Notwithstanding any other provision of law, any decision on a 
matter certified under paragraph (1) shall be reviewable by appeal 
directly to the Supreme Court of the United States. Such appeal shall 
be brought not later than 20 days after the decision of the court of 
appeals. 
(3) It shall be the duty of the court of appeals and of the Supreme 
Court of 
the United States to advance on the docket and to expedite to 
the greatest possible extent the disposition of any matter certified 
under paragraph (1). 
(g)(1) For purposes of this section— 
(A) continuity of session is broken only by an adjournment sine 
die; and 
(B) days on which either House is not in session because of an 
adjournment of more than 5 days to a day certain are excluded in 
the computation of the periods specified in subsection (a)(2) and 
subsection (b). 
(2) If an adjournment sine die of the Congress occurs after the 
Commission has submitted a final rule under subsection (a)(1), but 
such adjournment occurs— 
(A) before the end of the period specified in subsection (a)(2); 
and 
(B) before any action necessary to disapprove the final rule is 
completed under subsection (a)(2); 
then the Commission shall be required to resubmit the final rule 
involved at the beginning of the next regular session of the Congress. 
The period specified in subsection (a)(2) shall begin on the date of such 
resubmission, 
(h) For purposes of this section: 
(1) The term "Commission" means the Federal Trade Commis-
sion. 
(2) The term "concurrent resolution" means a concurrent 
resolution the matter after the resolving clause of which is as 
follows: "That the Congress disapproves the final rule promul-
gated by the Federal Trade Commission dealing with the matter 
of 
, which final rule was submitted to the Congress on 
.". (The blank spaces shall be filled appropriately.) 
(3) The term "rule" means any rule promulgated by the 
Commission pursuant to the Federal Trade Commission Act (15 
U.S.C. 41 et seq.), other than any rule promulgated under section 
18(a)(1)(A) of such Act (15 U.S.C. 57a(a)(l)(A)). 
(i) The provisions of this section shall take effect on the date of the 
enactment of this Act and shall cease to have any force or effect after 
September 30,1982. 
OVERSIGHT HEARINGS 
SEC. 22. The Consumer Subcommittee of the Committee on Com-
merce, Science, and Transportation of the Senate shall conduct an 
oversight hearing with respect to the Federal Trade Commission at 
least once during the first 6 calendar months, and at least once 
during the last 6 calendar months, of each of the fiscal years 1980, 
1981, and 1982. 
PUBLIC LAW 96-252—MAY 28, 1980 
94 STAT. 397 
EFFECTIVE DATE 
SEC. 23. The provisions of this Act, and the amendments made by 15 U
S
C 45 note. 
this Act, shall take effect on the date of the enactment of this Act. 
Approved May 28, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-181 (Comm. on Interstate and Foreign Commerce) and No. 
96-917 (Comm. of Conference). 
SENATE REPORTS: No. 96-184 accompanying S. 1020 and No. 96-500 accompanying 
S. 1991 (both from Comm. on Commerce, Science, and Transpor-
tation). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Nov. 14, 27, considered and passed House. 
Vol. 126 (1980): Feb. 7, H.R. 2313 considered and passed Senate, amended, in 
lieu of S. 1020 and S. 1991. 
May 20, House agreed to conference report. 
May 21, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 22 (1980): May 28, Presidential statement.