Date: 1987-10-07
Speaker: THOMAS A. LUKEN (democrat)
Chamber: H

Mr. Chairman. I yield myself such time as I may consume. Mr. Chairman. the last FTC reauthorization bill was enacted in 1980 and expired at the end of fiscal year 1982. Since that time the FTC has had to operate without any authorization of appropriations and has been funded only through continuing appropriations. It is essential that Congress act to authorize the Commission in order to give it some guidance and policy direction. H.R. 2897 authorizes appropriations for the Commission of $69.850.000 for fiscal year 1988. $70.850.000 for fiscal year 1989 and $71.850.000 for fiscal year 1990. This is the amount requested by the FTC. The committee has continued to aggressively monitor Commission activities through the hearing process. We have identified areas of activity that require legislative remedy and have included several provisions in the bill to provide direction to the FTC. As a result. we included amendments to the act that would limit the Commissions authority to invalidate certain State laws that constitute "State action" under the Sherman Act. provide that FTC rules do not become effective until they are submitted to Congress for 90 days. and would become final if Congress does not disapprove them by joint resolution. prohibit the Commission from conducting any study or prosecution of agricultural cooperatives for conduct permitted by the CapperVolstead Act. and exempt Federal credit unions from regulation In the same manner as other financial institutions. We have also acted to establish guidelines for the FTC In instances in which it intervenes in local. State. or Federal proceedings. The committee found that although the FTC can be effective in these interventions. there was little administrative control over staff activities and no clear threshold as to when the staff would need to obtain the Commissions permission for such interventions. H.R. 2897 requires the FTC to conduct several important studies including Medigap sales to the elderly. the life care home industry. and the high cost of property and casualty insurance. In addition to these provisions. the bill gives the Commission authority to prevent air carriers from using unfair or deceptive acts or practices and mandates that the FTC promulgate a rule requiring very specific information be Included in airline advertising including a "full. conspicuous. and understandable" disclosure of any limitations on a particular fare. Our Subcommittee on Transportation. Tourism. and Hazardous Materials has been investigating unfair and deceptive airline practices and at a hearing confirmed what many of us have heard from our constituents and experienced ourselves. The carriers will not guarantee that a specific number of seats on any particular flight will be available at the advertised discount. In fact. during a break in the hearing one of our subcommittee members. Mr. SIKORSKI. attempted unsuccessfully to obtain a reservation for a flight at a discount that was currently being advertised. even though he requested a flight on a day that an airline witness said was a light travel day. In recent years the number of complaints made by consumers to the Department of Transportation and to the airlines themselves have increased dramatically. But the hapless consumer cannot turn to the agency that has the mission to assure fair competition and to protect consumers from marketplace abuses. Regulation is left to the Department of Transportation. which has seen fit to assign 12 employees to handle the more than 19.000 complaints the DOT has received so far this year. The scandalous conduct of some airlines should be regulated by the FTC just like other businesses. It is the Government agency with the experience and the expertise of 500 employees who handle consumer matters. I urge you to support our bill and strike a blow for the American consumer.