shall be subscribed by the witness and certified in usual form by the officer. After the deposition has been so certified, it shall, together with three additional copies thereof made by such officer or under his direction, be forwarded by such officer under seal in an envelope addressed to the Commission at its office in Washington, D. C. Such deposition, unless otherwise ordered by the Commission for good cause shown, shall be filed in the record in said proceeding and a copy thereof supplied to the party upon whose application said deposition was taken, or his attorney.

Depositions shall be typewritten, on one side of paper only; letter size, 8 by 101⁄2 inches; left margin, 11⁄2 inches; right margin, 1 inch. Depositions shall be bound at left side only.

RULE XIX. EVIDENCE

Documentary.-Where relevant and material matter offered in evidence is embraced in a document containing other matter not material or relevant and not intended to be put in evidence, such immaterial or irrelevant parts shall be excluded, and shall be segregated insofar as practicable.

Objections.-Objections to the evidence before the Commission, a Commissioner, or an examiner, shall, in any proceeding, state briefly the grounds of objections relied upon, and the transcript shall not include argument or debate thereon.

RULE XX. BRIEFS

Filing.--All briefs must be filed with the secretary of the Commission within the time limits fixed by these rules.

Briefs tendered after expiration of the times fixed will be filed only by special permission of the Commission.

Appearance of additional counsel in a case will not constitute grounds for extending time for filing briefs.

Time.-Opening brief in support of the complaint shall be filed by the trial attorney of the Commission within 20 days after service upon him of copy of the report of the trial examiner.

Brief on behalf of respondent shall be filed within 20 days after service upon respondent or respondent's attorney of copy of brief in support of the complaint. Reply briefs in support of the complaint, if any, shall be filed within 10 days after filing of brief on behalf of respondent.

Number.-Twenty copies of each brief shall be filed.

Contents.-Briefs, except the reply brief in support of the complaint, shall contain, in the following order:

(a) A concise abstract or statement of the case;

(b) A brief of the argument, exhibiting a clear statement of the points of fact or law to be discussed, with references to the pages of the record and the authorities relied upon in support of each point;

(c) The exceptions, if any, to the report of the trial examiner.

Index.-Briefs comprising more than 10 pages shall contain on their top fly leaves a subject index with page references. The subject index shall be supplemented by an alphabetical list of all cases referred to, with references to pages where references are cited.

Reply briefs.-Reply brief in support of the complaint shall be filed only with permission of the Commission, and shall be strictly in answer to brief on behalf of respondent.

No further reply brief on behalf of respondent shall be filed.

Form.—Briefs on behalf of respondent shall be printed in 10 or 12 point type; on good, unglazed paper, size 8 by 101⁄2 inches; left margin of 11⁄2 inches, right margin of 1 inch; with double-leaded text and single-leaded citations.

RULE XXI. ORAL ARGUMENT

Oral arguments shall be had only as ordered by the Commission, on written application of the chief counsel of the Commission, or of the respondent, or of attorney for respondent, filed within 15 days after filing of brief on behalf of respondent.

Appearance of additional counsel in a case will not constitute grounds for extending time for oral argument.

RULE XXII. REPORTS SHOWING COMPLIANCE WITH ORDERS AND WITH

STIPULATIONS

In every case where an order to cease and desist is issued by the Commission for the purpose of preventing violations of law and in every instance where the Commission approves and accepts a stipulation in which a party agrees to cease and desist from the unlawful methods, acts, or practices involved, the respondents named in such orders and the parties so stipulating shall file with the Commission, within sixty days of the service of such order and within sixty days of the approval of such stipulation, a report, in writing, setting forth in detail the mauner and form in which they have complied with said order or with said stipulation; provided, however, that where the order prevents the use of a false advertisement of a food, drug, device, or cosmetic, which may be injurious to health because of results from such use under the conditions prescribed in the advertisement, or under such conditions as are customary or usual, or if the use of such advertisement is with intent to defraud or mislead, an interim report stating whether and how respondents intend to comply shall be filed within ten days.

Within its sound discretion, the Commission may require any respondent upon whom such order has been served and any party entering into such stipulation, to file with the Commission, from time to time thereafter, further reports in writing, setting forth in detail the manner and form in which they are complying with said order or with said stipulation.

Reports of compliance shall be signed in ink by respondents or by the parties stipulating.

RULE XXIII. REOPENING PROCEEDINGS

In any case where an order to cease and desist or an order dismissing a proceeding has been issued by the Commission, the Commission may (a) in the case of an order to cease and desist, at any time after the expiration of the statutory time for filing of a petition for review where no such petition has been filed. or (b) in the case of an order dismissing a proceeding at any time thereafter, give reasonable notice to all respondents and to all intervenors, if any, of a hearing as to whether the said proceedings should be reopened. If after said hearing the Commission shall have reason to believe that conditions of fact or of law have so changed since the said order was made as to require, or that the public interest requires, the reopening of such proceeding, the Commission will issue an order for the reopening of the same.

RULE XXIV-TRADE PRACTICE CONFERENCE PROCEDURE

(a) Purpose.-The trade practice conference procedure has for its purpose the establishment, by the Federal Trade Commission, of trade practice rules in the interest of industry and the purchasing public. This procedure affords opportunity for voluntary participation by industry groups or other interested parties in the formulation of rules to provide for elimination or prevention of unfair methods of competition, unfair or deceptive acts or practices, and other illegal trade practices. They may also include provisions to foster and promote fair competitive conditions and to establish standards of ethical business practices in harmony with public policy. No provision or rule, however, may be approved by the Commission which sanctions a practice contrary to law or which may aid or abet a practice contrary to law.

(b) When authorized.-Trade practice conference proceedings may be authorized by the Commission upon its own motion or upon application therefor whenever such proceedings appear to the Commission to be in the interest of the public. In authorizing proceedings, the Commission may consider whether such proceedings appear to have possibilities (1) of constructively advancing the best interests of industry on sound competitive principles in consonance with public policy, or (2) of bringing about more adequate or equitable observance of laws under which the Commission has jurisdiction, or (3) of otherwise protecting or advancing the public interest.

(c) Applications.—Applications for a trade practice conference may be filed with the Commission by any interested party or group. Such application shall be in writing and be signed by the applicant or the duly authorized representative of the applicant or group desiring such conference. The following information, to the extent known to the applicant, shall be furnished with such application or in a supplement thereto :

(1) A brief description of the industry, trade, or subject to be treated. (2) The kind and character of the products involved.

(3) The size or extent and the divisions of the industry or trade groups concerned.

(4) The estimated total annual volume of production or sales of the commodities involved.

(5) List of membership of the industry or trade groups concerned in the matter.

(6) A brief statement of the acts, practices, methods of competition, or other trade practices desired to be considered, or drafts of suggested trade practice rules.

(7) Evidence of authority to so act, where the application is signed by a person or organization acting in behalf of others.

(d) Informal discussions with members of the Commission's staff.—Any interested party or group may, upon request, be granted opportunity to confer in respect to any proposed trade practice conference with the Commission's trade practice conference division, either prior or subsequent to the filing of any such application. They may also submit any pertinent data or information which they desire to have considered. Such submission shall be made during such period of time as the Commission or its duly authorized official may designate.

(e) Industry conferences.—Reasonable public notice of the time and place of any such authorized conference shall be issued by the Commission. A member of the Commission or of its staff shall have charge of the conference and shall conduct the conference pursuant to direction of the Commission and in such manner as will facilitate the proceeding and afford appropriate consideration of matters properly coming before the conference. A transcript of the conference proceedings shall be made, which, together with all rules, resolutions, modifications, amendments, or other matters offered, shall be filed in the office of the Commission and submitted for its consideration.

(f) Public hearing on proposed rules.-Before final approval by the Commission of any rules, and upon such reasonable public notice as to the Commission seems appropriate, further opportunity shall be afforded by the Commission to all interested persons, corporations or other organizations, including consumers, to submit in writing relevant suggestions or objections and to appear and be heard at a designated time and place.

(g) Promulgation of rules.-When trade practice rules shall have been finally approved and received by the Commission, they shall be promulgated by official order of the Commission and published, pursuant to law, in the Federal Register. Said rules shall become effective upon such promulgation and publication or thereafter at such time as may be specified. Copies of the final rules shall be made available at the offices of the Commission to the public and to members of the industry. Under the procedure of the Commission, a copy of the trade practice rules as promulgated by the Commission is sent to each member of the industry whose name and address is available, together with an acceptance form providing opportunity to such member to signify his intention to observe the rules in the conduct of his business.

(h) Violations.-Complaints as to the use, by any person, corporation, or other organization, of any act, practice, or method inhibited by the rules may be made to the Commission by anyone having information thereof. Such complaints, if warranted by the facts and the law, will receive the attention of the Commission in accordance with law. In addition the Commission may act upon its own motion in proceeding against the use of any act, practice, or method contrary to law.

191905-40--14

STATEMENT OF POLICY

POLICY AS TO PRIVATE CONTROVERSIES

It is the policy of the Commission not to institute proceedings against alleged unfair methods of competition or unfair or deceptive acts or practices where the alleged violation of law is a private controversy redressable in the courts, except where said practices tend to affect the public. In cases where the alleged injury is one to a competitor only and is redressable in the courts by an action by the aggrieved competitor and the interest of the public is not involved, the proceeding will not be entertained.

SETTLEMENT OF CASES BY STIPULATION

In proceedings prior to the service of complaint by the Commission, the Commission may, in its discretion and in the public interest, permit respondents to dispose of cases by stipulations, in which stipulations the respondent promises and agrees to cease and desist from the unfair methods of competition or unfair or deceptive acts or practices involved, and in which the respondent, after admitting the material facts, agrees that said admissions may be used against him, if thereafter the Commission has reason to believe the respondent is violating his promise and agreement to cease and desist, and issues its complaint against him. All such stipulations shall be altogether for the public records of the Commission. The disposition of a case by stipulation is regarded as a privilege and not a right. It is the policy of the Commission not to accept stipulations in cases where it has reason to believe that the respondents have been guilty of intentional fraud or wrongdoing or violation of section 14 of the Federal Trade Commission Act, or of violation of certain sections of the Clayton Act or of violations of the criminal sections of the Sherman Act or of any other statute, or where, in the opinion of the Commission, the respondents will not keep the agreement. The Commission reserves the right in all cases, for any reasons which it regards as sufficient, to refuse to extend this privilege.

STATUS OF APPLICANT OR COMPLAINANT

The so-called “applicant" or complaining party has never been regarded as a party in the strict sense. The Commission acts only in the public interest. It has always been and now is the rule not to publish or divulge the name of an applicant or complaining party, and such party has no legal status before the Commission except where allowed to intervene as provided by the statute.

INVESTIGATIONS BY THE COMMISSION, 1915-39

DESCRIPTIONS OF GENERAL INQUIRIES INCLUDING TITLES OF PUBLISHED REPORTS

General investigations of the Federal Trade Commission are described in the following paragraphs devoted to the more than 110 inquiries undertaken at the request of the Congress, the President, the Attorney General, other departmental heads, and on motion of the Commission in pursuance of certain provisions of its organic act.

Published reports of the Commission in connection with these inquiries are also listed, including the Senate and House document numbers for those of the reports that were ordered printed by the Congress. Publications not designated by such document numbers were published as Commission reports. Although available in reference libraries, many of the publications mentioned are now out of print and are so designated herein. Those available may be obtained from the Superintendent of Documents, Government Printing Office, Washington, D. C.

Accounting Systems. This inquiry was made on motion of the Commission, with a view to improving accounting practices, and led to the publication in 1916 of two reports entitled "Fundamentals of a Cost System for Manufacturers" (31 pages), and "A System of Accounts for Retail Merchants" (19 pages, out of print).

Agricultural Implement and Machinery Industry. This inquiry was made pursuant to Public Resolution No. 130 (Senate Joint Resolution No. 277), Seventy-fourth Congress, second session, approved June 24, 1936. Adoption of the resolution was a result of widespread complaints in 1936 and prior years concerning the disparity between prices of farm products, which, in 1932, reached record lows, and the prices of many farm implements and machines and their repair parts, which had been maintained at a high level. The resolution called for investigation of these conditions and other related factors. The report showed that a concentration of control in the hands of a few large companies had resulted largely from acquisition of the capital stock or of the assets of competitors prior to enactment of the Clayton Act and thereafter in the purchase of assets of competitors rather than in the purchase of their capital stock. The Commission recommended amendment of section 7 of the Clayton Act as related on pages 19 and 29 of its annual report for 1938. The report, Agricultural Implement and Machinery Industry, was submitted to Congress June 6, 1938, in two parts and subsequently printed in one volume as House Document No. 702, Seventy-fifth Congress, third session (1,176 pages). (See also Farm Implements and Independent Harvester.)

Agricultural Income. This inquiry was made pursuant to Senate Joint Resolution No. 9, Seventy-fourth Congress, first session (Public Resolution No. 61, Seventy-fourth Congress, approved August 27, 1935, as amended by Public Resolution No. 86, Seventy-fourth Congress, and by Public Resolution No. 112, Seventy-fourth Congress.) The first resolution called for an inquiry with respect to the "principal farm products" and the last one with respect to "table and juice grapes, fresh fruits and vegetables." The chief topics covered were the decline in agricultural income; the increases or decreases in the income of principal corporations engaged in the manufacture and distribution of principal farm products; the proportion of total consumer cost of such products represented by proceeds to the farmers, manufacturers, and distributors; the financial position of the aforementioned principal corporations, including assets, investment and rates of return; the salaries of officers of such corporations; the concentration of control of major farm products, the methods used for obtaining such control, and the extent to which unfair methods were employed in handling farm products, such methods including any combinations, monopolies, and price-fixing. The resolution also required an inquiry into the extent to which cooperative agencies had entered into the processing and marketing of such farm products.