Federal Trade Commission Act Amendments of 1994
PL 103-312 (H.R.2243), enacted 08/26/1994

PUBLIC LAW 103-312—AUG. 26, 1994 
108 STAT. 1691 
Public Law 103-312 
103d Congress 
An Act 
To amend the Federal Trade Commission Act to extend the authorization of appro-
priations in such Act, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCE. 
(a) SHORT TITLE.—This Act may be cited as the "Federal Trade 
Commission Act Amendments of 1994". 
(b) REFERENCE.—^Whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, a section 
or other provision, the reference shall be considered to be made 
to a section or other provision of the Federal Trade Commission 
Act. 
SEC. 2. AGRICULTURAL COOPERATIVES. 
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) 
is amended by redesignating sections 24 and 25 as sections 25 
and 26, respectively, and by inserting immediately after section 
23 the following new section: 
"SEC. 24. (a) The Commission shall not have any authority 
to conduct any study, investigation, or prosecution of any agricul-
tural 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 of the antitrust Acts or this Act. 
"(b) The Commission shall not have any authority to conduct 
any study or investigation of any agricultursd marketing orders.". 
SEC. 3. COMPENSATION IN PROCEEDINGS. 
(a) REPEAL.—Subsection (h) of section 18 (15 U.S.C. 57a) is 
repealed and subsections (i), (j), and (k) of section 18 are redesig-
nated as subsections (h), (i), and (j), respectively. 
(b) CONFORMING AMENDMENT.—Section 18(a)(1) (15 U.S.C. 
57a(a)(l)) is amended by striking "subsection (i)" and inserting 
"subsection (h)". 
SEC. 4. PROCEEDINGS SUBSEQUENT TO VIOLATIONS OF ORDERS. 
(a) 
CONSENT 
ORDERS.—Section 
5(m)(l)(B) 
(15 
U.S.C. 
45(m)(l)(B)) is amended by inserting ", other than a consent order," 
immediately after "order" the first time it appears. 
(b) DETERMINATIONS OF LAW.—Section 5(m)(2) (15 U.S.C. 
45(m)(2)) is amended by adding at the end the following: "Upon 
request of any party to such an action against such defendant, 
the court shall also review the determination of law made by 
Aug. 26, 1994 
[H.R. 2243] 
Federal Trade 
Commission Act 
Amendments of 
1994. 
15 use 58 note. 
15 use 57c, 58. 
15 u s e 57b-5. 
Courts. 
108 STAT. 1692 
PUBLIC LAW 103-312—AUG. 26, 1994 
the Commission in the proceeding under subsection (b) that the 
act or practice which was the subject of such proceeding constituted 
an unfair or deceptive act or practice in violation of subsection 
(a).". 
SEC. 5. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES. 
Section 18(b) (15 U.S.C. 57a(b)) is amended by adding at the 
end the following new paragraph: 
Proposed rule. 
"(3) The Commission shall issue a notice of proposed rulemaking 
pursuant to paragraph (1)(A) only where it has reason to believe 
that the unfair or deceptive acts or practices which £ire the subject 
of the proposed rulemaking are prevsdent. The Commission shall 
make a determination that unfair or deceptive acts or practices 
/ 
are prevalent under this paragraph only if— 
V 
"(A) it has issued cease and desist orders regarding such 
acts or practices, or 
"(B) any other information available to the Commission 
indicates a widespread pattern of unfair or deceptive acts or 
practices.". 
SEC. 6. EFFECTIVE DATE OF ORDERS. 
(a) ORDERS SUBJECT TO PETITION FOR REVIEW.—Section 5(g)(2) 
(15 U.S.C. 45(g)(2)) is amended to read as follows: 
"(2) Except as to any order provision subject to paragraph 
(4), upon the sixtieth day after such order is served, if a 
petition for review has been duly filed; except that any such 
order may be stayed, in whole or in part and subject to such 
conditions as may be appropriate, by— 
"(A) the Commission; 
"(B) an appropriate court of appeals of the United 
V:'XA States, if (i) a petition for review of such order is pending 
in such court, and (ii) an application for such a stay was 
previously submitted to the Commission and the Commis-
sion, within the 30-day period beginning on the date the 
application was received by the Commission, either denied 
the application or did not grant or deny the application; 
or 
"(C) the Supreme Court, if an applicable petition for 
certiorari is pending.". 
(b) ORDERS SUBJECT TO SECTIONS 5(m)(l)(B) AND 19(a)(2).— 
'V 
Section 5(g)(3) (15 U.S.C. 45(g)(3)) is amended to read as follows: 
"(3) For purposes of subsection (m)(l)(B) and of section 
19(a)(2), if a petition for review of the order of the Commission 
has been filed— 
"(A) upon the expiration of the time allowed for filing 
a petition for certiorari, if the order of the Commission 
has been affirmed or the petition for review has been 
dismissed by the court of appeals and no petition for certio-
rari has been duly filed; 
"(B) upon the denial of a petition for certiorari, if 
the order of the Commission has been affirmed or the 
petition for review has been dismissed by the court of 
appeals; or 
"(C) upon the expiration of 30 days from the date 
of issuance of a mandate of the Supreme Court directing 
that the order of the Commission be affirmed or the petition 
for review be dismissed.". 
PUBLIC LAW 103-312—AUG. 26, 1994 
108 STAT. 1693 
(c) DIVESTITURE ORDERS.—Section 5(g)(4) (15 U.S.C. 45(g)(4)) 
is amended to read as follows: 
"(4) In the case of an order provision requiring a person, 
partnership, or corporation to divest itself of stock, other share 
capital, or assets, if a petition for review of such order of 
the Commission has been filed— 
"(A) upon the expiration of the time allowed for filing 
a petition for certiorari, if the order of the Commission 
has been affirmed or the petition for review has been 
dismissed by the court of appeals and no petition for certio-
rari has been duly filed; 
"(B) upon the denial of a petition for certiorari, if 
the order of the Commission has been affirmed or the 
petition for review has been dismissed by the court of 
appeals; or 
"(C) upon the expiration of 30 days from the date 
of issuance of a mandate of the Supreme Court directing 
that the order of the Commission be affirmed or the petition 
for review be dismissed.". 
(d) TECHNICAL,—Paragraph (1) of section 5(g) (15 U.S.C. 
45(g)(1)) is amended by striking "; or" and inserting a period. 
SEC. 7. CIVIL INVESTIGATIVE DEMANDS. 
(a) 
DEFINITIONS.—Section 20(a) (15 U.S.C. 57b-1(a)) is 
amended— 
(1) in paragraph (2), by inserting "or in any antitrust 
violations" immediately after "section 5(a)(1))"; 
(2) in paragraph (3), by inserting "or any provisions relating 
to antitrust violations" immediately after "section 5(a)(1))"; 
(3) in paragraph (7), by inserting "or 2iny antitrust viola-
tion" immediately after "section 5(a)(1))"; and 
(4) by adding at the end the following new paragraph: 
"(8) The term 'antitrust violation' means any unfair method 
of competition (within the meaning of section 5(a)(1)), any viola-
tion of the Clayton Act, any violation of any other Federal 
statute that prohibits, or makes available to the Commission 
a civil remedy with respect to, any restraint upon or monopo-
lization of interstate or foreign trade or commerce, or any 
activity in preparation for a merger, acquisition, joint venture, 
or similar transaction, which if consummated, may result in 
such an unfair method of competition or violation.". 
(b) ISSUANCE OF DEMAND.—(1) Section 20(c)(1) (15 U.S.C. 57b-
1(c)(1)) is amended— 
(A) by inserting "or tangible things" immediately after 
"documentary material" the first place it appears; 
(B) by inserting "or to antitrust violations," immediately 
after "section 5(a)(1)),"; and 
(C) by inserting "to submit such tangible things," imme-
diately after "copjdng or reproduction,". 
(2) Section 20(c) (15 U.S.C. 57b-l(c)) is amended— 
(A) by redesignating paragraphs (4), (5), (6), (7), (8), (9), 
(10), (11), and (12) as paragraphs (5), (6), (7), (8), (9), (10), 
(11), (13), and (14), respectively; 
(B) by inserting immediately after paragraph (3) the follow-
ing new paragraph: 
"(4) Each civil investigative demand for the submission of tan-
gible things shall— 
108 STAT. 1694 
PUBLIC LAW 103-312—AUG. 26, 1994 
"(A) describe each class of tangible things to be submitted 
under the demand with such deflniteness and certainty as 
to permit such things to be fairly identified; 
"(B) prescribe a return date or dates which will provide 
a reasonable period of time within which the things so 
demanded may be assembled and submitted; and 
"(C) identify the custodian to whom such things shall be 
submitted."; and 
(C) by inserting immediately after paragraph (11), as so 
redesignated, the following new paragraph: 
"(12) The submission of tangible things in response to a civil 
investigative demand shall be made under a sworn certificate, in 
such form as the demand designates, by the 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 tangible things required 
by the demand and in the possession, custody, or control of the 
person to whom the demand is directed have been submitted to 
the custodian.". 
(c) SECTION 20(g).—Section 20(g) (15 U.S.C. 57b-l(g)) is 
amended by inserting ", tangible things" immediately after "docu-
mentary material". 
(d) APPLICABILITY OF SECTION 20.—Section 20(j)(l) (15 U.S.C. 
57b-l(j)(l)) is amended by inserting immediately before the semi-
colon the following: ", any proceeding under section 11(b) of the 
Clayton Act (15 U.S.C. 21(b)), or any adjudicative proceeding under 
any other provision of law", 
SEC. 8. COMMISSION CUSTODY OF TANGIBLE THINGS. 
Section 21 (15 U.S.C. 57b-2) is amended— 
(1) in subsection (a)(1), by inserting "tangible things," 
immediately after "documentary material,"; 
(2) in subsection (b)(1), by inserting ", tangible thing," 
immediately after "document"; 
(3) in subsection (b)(2)(A), by inserting "tangible things," 
immediately after "documentary material,"; 
(4) in subsection (b)(3)— 
(A) in subparagraph (A), by inserting "tangible things," 
immediately after "documentary material,"; 
(B) in subparagraph (B), by inserting ", and may make 
tangible things available," immediately after "oraJ testi-
mony"; and by inserting ", things," immediately after "such 
material"; 
(C) in subparagraph (C), by inserting "tangible things," 
immediately ^ e r 'xiocumentary material," and by inserting 
", things," immediately after "material"; and 
(D) in subparagraph (D), by inserting ", tangible 
things," immediately after "documentary material"; 
(5) in subsection (b)(4), by inserting "tangible things," 
immediately after "documentary material,"; 
(6) in subsection (b)(5), by inserting "tangible things," 
immediately after "documentary material,"; 
(7) in subsection (b)(6)— 
(A) by inserting immediately after the first sentence 
the following new sentence: 'The custodian of any tangible 
things may make such things available for inspection to 
such persons on the same basis."; and 
PUBLIC LAW 103-312—AUG. 26, 1994 
108 STAT. 1695 
(B) by inserting "results of inspections of tangible 
things," immediately after "Such documentary material,"; 
and 
(8) in subsection (bX7), by inserting "tangible things," 
immediately after "documentary material,". 
SEC. 9. DEFINITION OF UNFAIR ACTS OR PRACnCEa 
Section 5 (15 U.S.C. 45) is amended by adding at the end 
the following: 
"(n) The Commission shall have no authority under this section 
or section 18 to declare unlawful an act or practice on the grounds 
that such act or practice is unfair unless the act or practice causes 
or is likely to cause substantial injury to consumers which is not 
reasonably avoidable by consumers themselves and not outweighed 
by countervailing benents to consumers or to competition. In deter-
mining whether an act or practice is unfair, the Commission may 
consider established public policies as evidence to be considered 
with all other evidence. Such public policy considerations may not 
serve as a primary basis for such determination.". 
SEC. 10. PROCESS. 
(a) AUTHORITY.— 
(1) ADVERTISEMENTS IN VIOLATION OF SECTION 12.—Section 
13(a) (15 U.S.C. 53(a)) is amended by striking the last sentence 
and inserting the following: "Any suit may be brought where 
such person, partnership, or corporation resides or transacts 
business, or wherever venue is proper under section 1391 of 
title 28, United States Code. In addition, the court may, if 
the court determines that the interests of justice require that 
any other person, partnership, or corporation should be a party 
in such suit, cause such other person, partnership, or corpora-
tion to be added as a party without regard to whether venue 
is otherwise proper in me district in which the suit is brought. 
In any suit under this section, process may be served on any 
person, partnership, or corporation wherever it may be found. . 
(2) PROVISIONS ENFORCED BY COMMISSION.—Section 
13(b) 
(15 U.S.C. 53(b)) is amended by striking the last sentence 
and inserting the following: "Any suit may be brought where 
such person, partnership, or corporation resides or transacts 
business, or wherever venue is proper under section 1391 of 
title 28, United States Code. In addition, the court may, if 
the court determines that the interests of justice require that 
any other person, partnership, or corporation should be a party 
in such suit, cause such other person, partnership, or corpora-
tion to be added as a party without regard to whether venue 
is otherwise proper in the district in which the suit is brought. 
In any suit under this section, process may be served on any 
person, partnership, or corporation wherever it may be found.". 
(b) PROCEDURES.—Section 13 (15 U.S.C. 53) is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting immediately after subsection (b) the follow-
ing new subsection: 
"(c) Any process of the Commission under this section may 
be served by anv person duly authorized by the Commission— 
"(1) by aelivering a copy of such process to the person 
to be served, to a member of the partnership to be served, 
or to the president, secretary, or other executive officer or 
a director of the corporation to oe served; 
108 STAT. 1696 
PUBLIC LAW 103-312—AUG. 26, 1994 
"(2) by leaving a copy of such process at the residence 
or the principal office or place of business of such person, 
partnership, or corporation; or 
"(3) by mailing a copy of such process by registered mail 
or certified mail addressed to such person, partnership, or 
corporation at his, or her, or its residence, principal office, 
or principal place or business. 
The verified return by the person serving such process setting 
forth the manner of such service shall be proof of the same.". 
15 use 57c note. SEC. 11. INTERVENTION BY COMMISSION IN CERTAIN PROCEEDINGS. 
(a) LIMITATION ON USE OF AUTHORIZED FUNDS.—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 years 1994, 
1995, and 1996 for the purpose of submitting statements to, appear-
ing before, or intervening in the proceedings of, any Federal or 
State agency or State legislative body concerning proposed rules 
or legislation that the agency or legislative body is considering 
unless the Commission advises the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Energy and Commerce of the House of Representatives regarding 
such action as soon as possible. 
(b) CONTENTS OF NOTICE TO CONGRESS.—The notice required 
in subsection (a) shall include the name of the agency or legislator 
involved, the date of such action, and a concise statement regarding 
the nature and purpose of such action. 
SEC. 
1
2
. 
RESOURCE 
ALLOCATION 
STUDY. 
The Federal Trade Commission shall conduct an evaluation 
of the level of its personnel resources and the manner in which 
such resources are allocated. The Commission shall study— 
(1) whether overall resources at the Commission are ade-
quate to fulfill the Commission's responsibilities in the areas 
of competition and consumer protection; 
(2) the distribution of personnel to individual offices of 
commissioners, departments, bureaus, and other units within 
the Commission, and whether the current allocation of person-
nel most efficiently enables the Commission to fulfill its statu-
tory mandate; 
(3) the number of personnel in supervisory positions, con-
trasted with those personnel in nonsupervisory positions; and 
(4) whether the amount of workyears devoted to research 
activities should be increased and what results (if any) such 
an increase would produce. 
The Commission shall transmit the results of such study, together 
with any recommendations that the Commission determines appro-
priate, to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Energy and Commerce of 
the House of Representatives not later than 6 months after the 
date of enactment of this Act. 
SEC. 13. FEDERAL-STATE COOPERATION. 
The Federal Trade Commission shall review its statutory 
responsibilities to identify those matters within its jurisdiction 
where Federal enforcement is particularly necessary or desirably 
and those areas that might more effectively be enforced at the 
PUBLIC LAW 103-312—AUG. 26, 1994 
108 STAT. 1697 
State or local level. In identifying such areas, the Commission 
shall— 
(1) consider the resources available to the Commission 
and the States, as well as particular rules that have been 
promulgated by the Commission; 
(2) consult with the attorneys general of the States, rep-
resentatives of consumers and industry, and other interested 
parties; and 
(3) consider such other issues as will result in more efficient 
implementation of the statutory responsibilities of the Commis-
sion. 
Not later than 6 months after the date of enactment of this Act, 
the Commission shall transmit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
E n e r ^ and Commerce of the House of Representatives the informa-
tion identified in paragraphs (1) through (3), together with specific 
recommendations for methods of achieving greater cooperation 
between the Commission and the States. 
SEC. 14. AUTHORIZATION OF APPROPRIATIONS. 
Section 25 (15 U.S.C. 57c), as so redesignated by section 2 
of this Act, is amended to read as follows: 
"SEC. 25, There are authorized to be appropriated to carry 
out the functions, powers, and duties of the Commission not to 
exceed $92,700,000 for fiscal year 1994; not to exceed $99,000,000 
for fiscal year 1995; and not to exceed $102,000,000 for fiscal 
year 1996. . 
SEC. 16. EFFECTIVE DATE; APPLICABILITY. 
15 USC 45 note. 
(a) IN GENERAL.—^Except as provided in subsections (b), (c), 
(d), and (e), the provisions of this Act shall take effect on the 
date of enactment of this Act. 
(b) APPLICABIUTY OF SECTION 5.—The amendment made by 
section 5 of this Act shall apply only to rulemaking proceedings 
initiated after the date of enactment of this Act. Such amendment 
shall not be construed to affect in any manner a rulemaking 
proceeding which was initiated before the date of enactment of 
this Act. 
(c) APPLICABILITY OF SECTION 6.—The amendments made by 
section 6 of this Act shall apply only with respect to cease and 
desist orders issued under section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45) after the date of enactment of this Act. 
These amendments shall not be construed to affect in any manner 
a cease and desist order which was issued before the date of 
enactment of this Act. 
(d) APPLICABILITY OF SECTIONS 7 AND 8.—The amendments 
made by sections 7 and 8 of this Act shall appl^ only with respect 
to compulsory process issued after the date o
f
*
^ enactment of this 
Act. 
(e) APPLICABILITY OF SECTION 9.—The amendments made by 
section 9 of this Act shall apply only with respect to cease and 
desist orders issued under section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45), or to rules promulgated under section 
18 of the Federal Trade Commission Act (15 U.S.C. 57a) after 
the date of enactment of this Act. These amendments shall not 
be construed to affect in any manner a cease and desist order 
which was issued, or a rule which was promulgated, before the 
date of enactment of this Act. These amendments shall not be 
108 STAT. 1698 
PUBLIC LAW 103-312—AUG. 26, 1994 
construed to affect in any manner a cease and desist order issued 
after the date of enactment of this Act, if such order was issued 
pursuant to remand from a court of appeals or the Supreme Court 
of an order issued by the Federal TVade Commission before the 
date of enactment of this Act. 
Approved August 26, 1994. 
LEGISLATIVE HISTORY—H.R. 2243 (S. 1179): 
HOUSE REPORTS: Nos. 103-138 (Comm. on Energy and C!ommerce) and 103-617 
(Comm. of Conference). 
SENATE REPORTS: No. 103-180 accompanying S. 1179 (Comm. on Commerce, 
Science, and Transportation). 
CONGRESSIONAL RECORD: 
Vol. 139 (1993): June 21, considered and passed House. 
Sept. 22, considered and passed Senate, amended, in lieu of 
S. 1179. 
Vol. 140 (1994): July 25, House agreed to conference report. 
Aug. 11, Senate agreed to conference report.