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CROSS REFERENCES

Direct appeals from decisions of three-judge courts, see section 1253 of Title 28, Judiciary and Judicial Procedure.

Time for appeal to Supreme Court, see section 2101 of Title 28, Judiciary and Judicial Procedure.

§ 30. Depositions for use in suits in equity.

In the taking of depositions of witnesses for use in any suit in equity brought by the United States under sections 1-7 of this title, and in the hearings before any examiner or special master appointed to take testimony therein, the proceedings shall be open to the public as freely as are trials in open court; and no order excluding the public from attendance on any such proceedings shall be valid or enforceable. (Mar. 3, 1913, ch. 114, 37 Stat. 731.) FEDERAL RULES OF CIVIL PROCEDURE Depositions and discovery, see rules 26-37, following section 2072 of Title 28, Judiciary and Judicial Procedure. Federal Rules of Civil Procedure as governing the procedure in all suits of a civil nature whether cognizable as cases at law or in equity, see rule 1. Masters, see rule 53.

One form of action, see rule 2.

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§ 31. Panama Canal closed to violators of antitrust laws.

No vessel permitted to engage in the coastwise or foreign trade of the United States shall be permitted to enter or pass through the Panama Canal if such ship is owned, chartered, operated, or controlled by any person or company which is doing business in violation of the provisions of sections 1-11 of this title or of any other Act of Congress amending or supplementing the same. may be determined by the judgment of any court of the United States of competent jurisdiction in any cause pending before it to which the owners or operators of such ship are parties. Suit may be brought by any shipper or by the Attorney General of the United States. (Aug. 24, 1912, ch. 390, § 11, 37 Stat. 567.)

The question of fact

CROSS REFERENCES

Acts supplemental to sections 1-11 mentioned in text of this section, see sections 12-33 of this title.

§ 32. Immunity of witness.

No person shall be prosecuted or be subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he may testify or produce evidence, documentary or otherwise, in any proceeding, suit, or prosecution under sections 1-7 of this title and all Acts amendatory thereof or supplemental thereto, and sections 8-11 of this title: Provided, That no person so testifying shall be exempt from prosecution or punishment for perjury committed in so testifying. (Feb. 25, 1903, ch. 755, § 1, 32 Stat. 904.)

CODIFICATION

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46.

Definitions.

Unfair methods of competition unlawful; prevention by Commission.

(a) Declaration of unlawfulness; power to prohibit unfair practices.

(b) Proceeding by Commission; modifying and setting aside orders.

(c) Review of order; rehearing.

(d) Jurisdiction of court.

(e) Precedence of proceedings; exemption from liability.

(f) Service of complaints, orders and other

processes; return.

(g) Finality of order.

(h) Same; order modified or set aside by Supreme Court.

(1) Same; order modified or set aside by Court

of Appeals.

(1) Same; rehearing upon order or remand. (k) Definition of mandate.

(1) Penalty for violation of order.

Additional powers of commission.

(a) Investigation of corporations.
(b) Reports by corporations.

(c) Investigation of compliance with antitrust
decrees.

(d) Investigations of violations of antitrust statutes.

(e) Readjustment of business of corporations
violating antitrust statutes.

(f) Publication of information; reports.
(g) Classification of corporations; regulations.
(h) Investigations of foreign trade conditions;
reports.

46a. Concurrent resolution essential to authorize investigations.

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Section is also set out as section 47 of Title 49, Transportation.

Effect of subdivision on other statutory provisions.

52.

CROSS REFERENCES

Acts supplemental to sections 1-7 mentioned in text of this section, see sections 12-33 of this title.

53.

Same; temporary injunction.

Immunity under this section to extend to natural persons only, see section 33 of this title.

Dissemination of false advertisements.

(a) Unlawfulness.

(b) Unfair or deceptive act or practice.

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political party. The first commissioners appointed shall continue in office for terms of three, four, five, six, and seven years, respectively, from September 26, 1914, the term of each to be designated by the President, but their successors shall be appointed for terms of seven years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the commissioner whom he shall succeed: Provided, however, That upon the expiration of his term of office a Commissioner shall continue to serve until his successor shall have been appointed and shall have qualified. The President shall choose a chairman from its membership. No commissioner shall engage in any other business, vocation, or employment. Any commissioner may be removed by the President for inefficiency, neglect of duty, or malfeasance in office. A vacancy in the commission shall not impair the right of the remaining commissioners to exercise all the powers of the commission.

The commission shall have an official seal, which shall be judicially noticed. (Sept. 26, 1914, ch. 311, § 1, 38 Stat. 717; Mar. 21, 1938, ch. 49, § 1. 52 Stat. 111; 1950 Reorg. Plan No. 8, § 3, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1265.)

AMENDMENTS

1938-Act Mar. 21, 1938 amended section by adding proviso clause to the third sentence.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1265, set out below.

By section 3 of act Sept. 26, 1914, the former Bureau of Corporations was abolished, and all employees and functions of said Bureau transferred to the Federal Trade Commission.

DESIGNATION OF CHAIRMAN

1950 Reorg. Plan No. 8, set out below, transferred the functions of the Federal Trade Commission with respect to choosing its Chairman from among the membership thereof to the President.

CROSS REFERENCES

Applicability of sections 41-46 and 47-58 of this title to the insurance business, see sections 1011-1015 of this title.

1950 REORGANIZATION PLAN NO. 8

Eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 13, 1950, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949. FEDERAL TRADE COMMISSION

§ 1. TRANSFER OF FUNCTIONS TO THE CHAIRMAN (a) Subject to the provisions of subsection (b) of this section, there are hereby transferred from the Federal Trade Commission, hereinafter referred to as the Commission, to the Chairman of the Commission, hereinafter referred to as the Chairman, the executive and administrative functions of the Commission, including functions of the Commission with respect to (1) the appointment and supervision of personnel employed under the Commission, (2) the distribution of business among such personnel and among administrative units of the Commission, and (3) the use and expenditure of funds.

(b) (1) In carrying out any of his functions under the provisions of this section the Chairman shall be gov

al policies of the Commission and by such isions, findings, and determinations as the may by law be authorized to make. appointment by the Chairman of the heads dministrative units under the Commission shall et to the approval of the Commission. 'ersonnel employed regularly and full time in the liate offices of members of the Commission other the Chairman shall not be affected by the provisions his reorganization plan.

(4) There are hereby reserved to the Commission its unctions with respect to revising budget estimates and with respect to determining upon the distribution of appropriated funds according to major programs and purposes.

§ 2. PERFORMANCE OF TRANSFERRED FUNCTIONS The Chairman may from time to time make such provisions as he shall deem appropriate authorizing the performance by any officer, employee, or administrative unit under his jurisdiction of any function transferred to the Chairman by the provisions of this reorganization plan.

§ 3. DESIGNATION OF CHAIRMAN

The functions of the Commission with respect to choosing a Chairman from among the membership of the Commission are hereby transferred to the President.

§ 42. Salaries; employees; expenses.

Each commissioner shall receive a salary of $15,000 per annum, payable in the same manner as the salaries of the judges of the courts of the United States. The commission shall appoint a secretary, who shall receive a salary, payable in like manner, and it shall have authority to employ and fix the compensation of such attorneys, special experts, examiners, clerks, and other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress.

With the exception of the secretary, a clerk to each commissioner, the attorneys, and such special experts and examiners as the commission may from time to time find necessary for the conduct of its work, all employees of the commission shall be a part of the classified civil service, and shall enter the service under such rules and regulations as may be prescribed by the commission and by the Civil Service Commission.

All of the expenses of the commission, including all necessary expenses for transportation incurred by the commissioners or by their employees under their orders, in making any investigation, or upon official business in any other places than in the city of Washington, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the commission.

Until otherwise provided by law, the commission may rent suitable offices for its use.

The General Accounting Office shall receive and examine all accounts of expenditures of the commission. (Sept. 26, 1914, ch. 311, § 2, 38 Stat. 718; June 10, 1921, ch. 18, § 304, 42 Stat. 24; Oct. 15, 1949, ch. 695, § 5 (a), 63 Stat. 880.)

AMENDMENTS

1949-Act Oct. 15, 1949, increased compensation of members from $10,000 to $15,000 per annum.

1921-Act June 10, 1921 omitted salary of $5,000 for the secretary.

EFFECTIVE DATE OF 1948 AMENDMENT The increased compensation provided for by act Oct. 15, 1949, took effect on the first day of the first pay period which began after Oct. 15, 1949 by the provisions of section 9 of said act Oct. 15, 1949, which is set out as a note under section 3 of Title 5, Executive Departments and Government Officers and Employees.

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264, set out in note under section 41 of this title. § 43. Office and place of meeting.

The principal office of the commission shall be in the city of Washington, but it may meet and exercise all its powers at any other place. The commission may, by one or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in any part of the United States. (Sept. 26, 1914, ch. 311, § 3, 38 Stat. 719.)

TRANSFER OF FUNCTIONS

All executive and administrative functions of the Federal Trade Commission were, with certain reservations, transferred to the Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F. R. 3175, 64 Stat. 1264, set out in note under section 41 of this title. § 44. Definitions.

The words defined in this section shall have the following meaning when found in sections 41-46 and 47-58 of this title, to wit:

"Commerce" means commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation.

"Corporation" shall be deemed to include any company, trust, so-called Massachusetts trust, or association, incorporated or unincorporated, which is organized to carry on business for its own profit or that of its members, and has shares of capital or capital stock or certificates of interest, and any company, trust, so-called Massachusetts trust, or association, incorporated or unincorporated, without shares of capital or capital stock or certificates of interest, except partnerships, which is organized to carry on business for its own profit or that of its members.

"Documentary evidence" includes all documents, papers, correspondence, books of account, and financial and corporate records.

"Acts to regulate commerce" means the Act entitled "An Act to regulate commerce", approved February 14, 18871 and all Acts amendatory thereof and supplementary thereto and the Communications Act of 1934 and all Acts amendatory thereof and supplementary thereto.

"Antitrust Acts" means the Act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies", approved July 2, 1890; also

1 So in original. Probably should read "February 4, 1887".

sections 73-77, inclusive, of an Act entitled "An Act to reduce taxation, to provide revenue for the Government, and for other purposes", approved August 27, 1894; also the Act entitled "An Act to amend sections 73 and 76 of the Act of August 27, 1894, entitled 'An Act to reduce taxation, to provide revenue for the Government, and for other purposes' ", approved February 12, 1913; and also the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes", approved October 15, 1914. (Sept. 26, 1914, ch. 311, § 4, 38 Stat. 719; Oct. 15, 1914, ch. 323, § 1, 38 Stat. 730; Mar. 21, 1938, ch. 49, § 2, 52 Stat. 111.)

REFERENCES IN TEXT

Acts to regulate commerce: Act of February 4, 1887, erroneously referred to in text as act of February 14, 1887, is set out as chapters 1 and 8 of Title 49, Transportation. Communications Act of 1934 is set out as sections 150 et seq., of Title 47, Telegraphs, Telephones, and Radiotelegraphs.

Antitrust Acts: Act July 2, 1890, referred to in text, is set out as sections 1-7 of this title:

Sections 73 to 77 of act August 27, 1894, is set out as sections 8-11 and 15, note, of this title;

Act February 12, 1913, is set out as amendments to sections 8 and 11 of this title.

Act Oct. 15, 1914, is set out as sections 12, 13, 14-21, 22-27, and 44 of this title, and sections 52 and 53 of Title 29, Labor. Part of section 1 of said Act, defining "person" or "persons" was omitted as covered by section 402 of Title 18, Crimes and Criminal Procedure. Sections 9 and 21-25 of said Act were repealed by Act June 25, 1948, c. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948 and their provisions are now covered by sections 402, 660, 3285, and 3691 of Title 18, Crimes and Criminal Procedure. Former section 23 is obsolete and not now covered. Sections 17-19 of said Act were repealed by Act June 25, 1948, c. 646, § 39, 62 Stat. 992, eff. Sept. 1, 1948, and their provisions are now covered by rule 65 following section 2072 of Title 28, Judiciary and Judicial Procedure.

CROSS REFERENCES

Additional definitions, see sections 45 (k) and 55 of this

title.

§45. Unfair methods of competition unlawful; prevention by Commission-(a) Declaration of unlawfulness; power to prohibit unfair practices. (1) Unfair methods of competition in commerce, and unfair or deceptive acts or practices in commerce, are declared unlawful.

(2) Nothing contained in this section or in any of the Antitrust Acts shall render unlawful any contracts or agreements prescribing minimum or stipulated prices, or requiring a vendee to enter into contracts or agreements prescribing minimum or stipulated prices, for the resale of a commodity which bears, or the label or container of which bears, the trade-mark, brand, or name of the producer or distributor of such commodity and which is in free and open competition with commodities of the same general class produced or distributed by others, when contracts or agreements of that description are lawful as applied to intrastate transactions under any statute, law, or public policy now or hereafter in effect in any State, Territory, or the District of Columbia in which such resale is to be made, or to which the commodity is to be transported for such resale.

(3) Nothing contained in this section or in any of the Antitrust Acts shall render unlawful the exercise or the enforcement of any right or right of action created by any statute, law, or public policy now or hereafter in effect in any State, Territory, or the District of Columbia, which in substance provides that willfully and knowingly advertising, offering for sale, or selling any commodity at less than the price or prices prescribed in such contracts or agreements whether the person so advertising, offering for sale, or selling is or is not a party to such a contract or agreement, is unfair competition and is actionable at the suit of any person damaged thereby.

(4) Neither the making of contracts or agreements as described in paragraph (2) of this subsection, nor the exercise or enforcement of any right or right of action as described in paragraph (3) of this subsection shall constitute an unlawful burden or restraint upon, or interference with, commerce.

(5) Nothing contained in paragraph (2) of this subsection shall make lawful contracts or agreements providing for the establishment or maintenance of minimum or stipulated resale prices on any commodity referred to in paragraph (2) of this subsection, between manufacturers, or between producers, or between wholesalers, or between brokers, or between factors, or between retailers, or between persons, firms, or corporations in competition with each other.

(6) The Commission is 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 Civil Aeronautics Act of 1938, and persons, partnerships, or corporations subject to the Packers and Stockyards Act, 1921, except as provided in section 227 (b) of Title 7, from using unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce. (b) Proceeding by Commission; modifying and setting aside orders.

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 by it in respect thereof would be to the interest of the public, it shall issue and serve upon such person, partnership, or corporation a complaint stating its charges in that respect and, containing a notice of a hearing upon a day and at a place therein fixed at least thirty days after the service of said complaint. The person, partnership, or corporation so complained of shall have the right to appear at the place and time so fixed and show cause why an order should not be entered by the Commission requiring such person, partnership, or corporation to cease and desist from the violation of the law so charged in said complaint. Any person, partnership, or corporation may make application, and upon good cause shown may be allowed by the Commission to intervene and appear in said proceeding by counsel or in person. The testimony in

any such proceeding shall be reduced to writing and filed in the office of the Commission. If upon such hearing the Commission shall be of the opinion that the method of competition or the act or practice in question is prohibited by sections 41-46 and 47-58 of this title, it shall make a report in writing in which it shall state its findings as to the facts and shall issue and cause to be served on such person, partnership, or corporation an order requiring such person, partnership, or corporation to cease and desist from using such method of competition or such act or practice. Until the expiration of the time allowed for filing a petition for review, if no such petition has been duly filed within such time, or, if a petition for review has been filed within such time then until the transcript of the record in the proceeding has been filed in a court of appeals of the United States, as hereinafter provided, the Commission may at any time, upon such notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any report or any order made or issued by it under this section. After the expiration of the time allowed for filing a petition for review, if no such petition has been duly filed within such time, the Commission may at any time, after notice and opportunity for hearing, reopen and alter, modify, or set aside, in whole or in part, any report or order made or issued by it under this section, whenever in the opinion of the Commission conditions of fact or of law have so changed as to require such action or if the public interest shall so require: Provided, however, That the said person, partnership, or corporation may, within sixty days after service upon him or it of said report or order entered after such a reopening, obtain a review thereof in the appropriate court of appeals of the United States, in the manner provided in subsection (c) of this section.

(c) Review of order; rehearing.

Any person, partnership, or corporation required by an order of the Commission to cease and desist from using any method of competition or act or practice may obtain a review of such order in the court of appeals of the United States, within any circuit where the method of competition or the act or practice in question was used or where such person, partnership, or corporation resides or carries on business, by filing in the court, within sixty days from the date of the service of such order, a written petition praying that the order of the Commission be set aside. A copy of such petition shall be forthwith served upon the Commission, and thereupon the Commission forthwith shall certify and file in the court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the Commission. Upon such filing of the petition and transcript the court shall have jurisdiction of the proceeding and of the question determined therein, and shall have power to make and enter upon the pleadings, evidence, and proceedings set forth in such transcript a decree affirming, modifying, or setting aside the order of the Commission, and enforcing the same to the extent that such order

is affirmed, and to issue such writs as are ancillary to its jurisdiction or are necessary in its judgment to prevent injury to the public or to competitors pendente lite. The findings of the Commission as to the facts, if supported by evidence, shall be conclusive. To the extent that the order of the Commission is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of such order of the Commission. If either party shall apply to the court for leave to adduce additional evidence, and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceeding before the Commission, the court may order such additional evidence to be taken before the Commission and to be adduced upon the hearing in such manner and upon such terms and conditions as to the court may seem proper. The Commission may modify its findings as to the facts, or make new findings, by reason of the additional evidence so taken, and it shall file such modified or new findings, which, if supported by evidence, shall be conclusive, and its recommendation, if any, for the modification or setting aside of its original order, with the return of such additional evidence. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in section 347 of Title 28.

(d) Jurisdiction of court.

The jurisdiction of the court of appeals of the United States to affirm, enforce, modify, or set aside orders of the Commission shall be exclusive. (e) Precedence of proceedings; exemption from liability.

Such proceedings in the court of appeals shall be given precedence over other cases pending therein, and shall be in every way expedited. No order of the Commission or judgment of court to enforce the same shall in anywise relieve or absolve any person, partnership, or corporation from any liability under the Antitrust Acts.

(f) Service of complaints, orders and other processes;

return.

Complaints, orders, and other processes of the Commission under this section may be served by anyone duly authorized by the Commission, either (a) by delivering a copy thereof to the person to be served, or to a member of the partnership to be served, or the president, secretary, or other executive officer or a director of the corporation to be served; or (b) by leaving a copy thereof at the residence or the principal office or place of business of such person, partnership, or corporation; or (c) by registering and mailing a copy thereof addressed to such person, partnership, or corporation at his or its residence or principal office or place of business. The verified return by the person so serving said complaint, order, or other process setting forth the manner of said service shall be proof of the same, and the return post office receipt for said complaint, order, or other process registered and mailed as aforesaid shall be proof of the service of the same.

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