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Houke. COMMITTEE ON
HOUSE OF REPRESENTATIVES
H. R. 3871
A BILL TO AMEND THE ACT CREATING THE FEDERAL
DUTIES, AND FOR OTHER PURPOSES
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE
CHARLES A. WOLVERTON, New Jersey, Chairman CARL HINSHAW, California
CLARENCE F. LEA, California LEONARD W. HALL, New York
ROBERT CROSSER, Ohio JOSEPH P. O'HARA, Minnesota
ALFRED L. BULWINKLE, North Carolina WILSON D. GILLETTE, Pennsylvania VIRGIL CHAPMAN, Kentucky ROBERT HALE, Maine
LINDLEY BECKWORTH, Texas HARRIS ELLSWORTH, Oregon
J. PERCY PRIEST, Tennessee MARION T. BENNETT, Missouri
OREN HARRIS, Arkansas JAMES I. DOLLIVER, Iowa
GEORGE G. SADOWSKI, Michigan EDWARD J. ELSAESSER, New York
RICHARD F. HARLESS, Arizona
EUGENE J. KEOGH, New York
ELTON J. LAYTON, Clerk
JULIA WATTERSON, Assistant Clerk 11
Digges, Isaac W., general counsel, Association of National Advertisers_
Hoge, James F., attorney, New York, N. Y----
Communication relative to number of complaints issued and dis-
Facing page 254
Statistics on applications for complaint-
National Small Business Men's Association, Inc., communication from,
Federal Trade Commission's Intrusion Upon the Tripartite Sepa-
AMENDING FEDERAL TRADE COMMISSION ACT
WEDNESDAY, APRIL 28, 1948
HOUSE OF REPRESENTATIVES,
Washington, D.C. The committee met at 10 a. m., in room 1334, New House Office Building, pursuant to call, Hon. Charles A. Wolverton (chairman) presiding.
The CHAIRMAN. The committee will please come to order.
The hearing this morning will be on H. R. 3871 introduced by our colleague, Mr. O'Hara, a bill to amend the act creating the Federal Trade Commission, to define its powers and duties, and for other purposes.
(H. R. 3871 the bill above referred to is as follows:)
[H. R. 3871, 80th Cong., 1st sess.)
A BILL To amend the Act creating the Federal Trade Commission, to define its powers
and duties, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5 of the Act entitled “An Act to create a Federal Trade Commission, to define its duties, and for other purposes”, approved September 26, 1914 (38 Stat. 719; U. S. C., title 15; sec. 45), as amended, is hereby amended to read as follows :
“SEC. 5. (a) Unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce are hereby declared unlawful. The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, common carriers subject to the Acts to regulate commerce, air carriers and foreign air carriers subject to the Act of June 23, 1938 (52 Stat. 973), and persons, partnerships, or corporations subject to the Act of August 15, 1921 (42 Stat. 159), except as provided in section 406 (b) of said Act (42 Stat. 169), from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce.
“(b) (1) Whenever the Commission shall have reason to believe that any such person, partnership, or corporation has been or is using any unfair method of competition or unfair or deceptive act or practice in commerce, and if it shall appear to the Commission that a proceeding in respect thereof would be to the interest of the public, it shall, by any of its attorneys designated by it for such purpose, file in the district court of the United States for the district, or in the United States court of any Territory, in which such person, partnership, or corporation resides or maintains his or its principal place of business, a complaint stating its charges in that respect and praying that the court enter an order requiring such person, partnership, or corporation to cease and desist from using such method of competition of such act or practice.
“(2) The Rules of Civil Procedure for the District Courts of the United States shall govern such proceeding.
“(3) Any person, partnership, or corporation may at any time make application and upon good cause shown may be allowed by the court to intervene and appear in said proceeding by counsel or in person.
"(c) If upon conclusion of its hearing the court shall be of the opinion that the method of competition or the act or practice in question is prohibited by this Act and that the enjoining of it would be to the interest of the public, it shall