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fiscal statements, and personnel summaries will be placed in the record at this point.
STATUTORY AUTHORITY AND DUTIES OF THE FEDERAL TRADE COMMISSION Statutory authority.—The Federal Trade Commission, an administrative agency, created by the act of September 26, 1914, is charged with the enforcement of the Federal Trade Commission Act as amended by the Wheeler-Lea Act, approved March 21, 1938 (52 Stat. 111-117); section 2 of the Clayton Act, as amended by the Robinson-Patman Act, approved June 19, 1936 (49 Stat. 1526), and sections 3, 7 as amended, and 8 of the Clayton Act of October 15, 1914 (38 Stat. 730); the Export Trade Act, approved April 10, 1918 (40 Stat. 516); the Wool Products Labeling Act, approved October 14, 1940 (54 Stat. 1128); the Insurance Regulation Act, approved March 9, 1945 (59 Stat. 33); the Lanham Trade-Mark Act of 1946, approved July 5, 1946 (60 Stat. 427); the Fur Products Labeling Act, approved August 8, 1951 (65 Stat. 175); the Flammable Fabrics Act, approved June 30, 1953 (67 Stat. 111); amendment to the Packers and Stockyards Act, 1921, approved September 2, 1958 (72 Stat. 1749); and the Textile Fiber Products Identification Act, approved September 2, 1958 (72 Stat. 1717).
Duties.—The principal duties of the Commission under the above-mentioned statutes are:
(1) The Federal Trade Commission Act: Under this act, the Commission is charged with (a) the prevention of unfair methods of competition in commerce and unfair or deceptive acts or practices in commerce; (b) the conduct of investigations relating to (1) alleged violations of the Antitrust Acts (2) the manner in which decrees in antitrust suits brought by the United States have been carried out, and (3) the organization, business, conduct, practices and management of corporations engaged in commerce (with certain statutory exemptions) and their relation to other enterprises; (c) the making of reports and recommendations to the Congress with respect to legislation; and (d) the conduct of trade conferences of industries for the elimination of unlawful and unethical business practices.
(2) Clayton Act: Under sections 3, 7, and 8 of this act the Commission is charged with the duty of preventing and eliminating unlawful typing contracts, corporate mergers and acquisitions and interlocking directorates. Under the Clayton Act, as amended by the Robinson-Patman Act, which greatly enlarged and increased the jurisdiction and duties of the Commission in respect to unlawful price discriminations, the Commission is charged with the preventon of certain specific practices; i.e., unlawful price and related discriminations.
(3) Amendment to Packers and Stockyards Act: The provisions of this amendment extend the Commission's jurisdiction to cover certain matters previously subject to the exclusive jurisdiction of the Secretary of Agriculture.
The amendment, in effect, grants the Commission jurisdiction over the activities of packers not related to livestock, meats, meat products, and the like. The Commission is granted additional power and jurisdiction over all transactions in commerce in margarine and oleomargarine and over retail sales of meat and related products. Other matters involving meat and related products are made subject to the Commission's jurisdiction where the Secretary requests the Commission to investigate and report or where, under certain circumstances, action by the Commission is necessary to exercise effectively its power or jurisdiction with respect to retail sales of meat and related products.
(4) Export Trade Act: The Commission is responsible for receiving and filing articles of association or incorporation of "associations" organized under the Export Trade Act; investigating their operations which may adversely affect competition within the United States; making recommendations to the associations for readjustments deemed necessary therein; and, where considered appropriate, making recommendations to the Attorney General for penal action.
(5) Wool Products Labeling Act: Under this statute the manufacture for introduction into commerce, or the introduction, sale, transportation or distribution, in commerce, of misbranded wool products, is unlawful, and constitutes an unfair method of competition and an unfair and deceptive act and practice under the Federal Trade Commission Act. The Commission is authorized to make inspections, analyses, tests, and examinations of all wool products subject to the act and to make such rules and regulations as may be necessary and proper for the administration and enforcement of the act. In addition, the Commission is also empowered under the statute to prevent the movement of misbranded wool products in commerce by injunction and to proceed by libel action in certain cases for condemnation of such products.
(6) Insurance Regulation Act of 1945: The provisions of this act limit the application of the Federal Trade Commission and Clayton Acts, as amended, to practices in the insurance field which have not been regulated by the States. This has imposed upon the Commission the task of not only determining whether any given matter concerning insurance violates any of the acts it administers, but also whether the practices involved have been regulated by the States within the intent and meaning of this act.
(7) Lanham Trade-Mark Act of 1946: Under this statute it is the duty of the Commission to make applications for the cancellation of registered trademarks under certain specified conditions. The Commission, as applicant, must secure the proper evidence on which the application for cancellation is based, prepare the application, stating the grounds relied upon, be represented at the hearing before a Patent Office examiner for the purpose of presenting such evidence and otherwise prosecute the matter to a conclusion.
(8) Fur Products Labeling Act: The Commission is charged with the administration and enforcement of this consumer legislation which requires the mandatory labeling of fur articles of wearing apparel, as well as truthful invoicing and advertising of furs and fur products to show, among other things, the true English name of the animal from which the fur was taken. The Commission is also charged with issuing a Fur Product Name Guide and is authorized and directed to cause compliance inspections, analyses, tests, and examinations to be made of furs and fur products subject to the act and to prescribe rules and regulations governing the manner and form of disclosing required information under the act. In addition to administrative enforcement, injunctive and condemnation proceedings are also provided for.
(9) Flammable Fabrics Act: Under this act which became effective July 1, 1954, the Commission is directed to prevent the marketing in commerce of all wearing apparel and fabrics intended for use in wearing apparel which when tested under the prescribed standard set forth in the act is so highly flammable as to be dangerous when worn by individuals. Its enforcement is to be carried out through administrative procedures provided for under the Federal Trade Commission Act as well as injunction, condemnation, and criminal proceedings in the Federal courts.
(10) Textile Fiber Products Identification Act: This additional "truth-infabrics" legislation takes up where the Wool Products Labeling Act leaves off. It became law September 2, 1958, and covers the broad field of mandatory content disclosure in labeling and advertising of textile fiber products. Under its terms, misbranding as well as false and deceptive advertising of textile fiber products is unlawful.
The Commission is authorized, under the act, to make inspections, analyses, tests, and examinations of all textile fiber products subject to the statute, and further, to make such rules and regulations as may be necessary and proper for administration and enforcement of the act. In addition, the Commission is directed to establish generic names for those manmade fibers which have not as yet attained one.
Its enforcement is to be carried out through administrative procedures provided for under the Federal Trade Commission Act, together with injunction and criminal proceedings in the U.S. district courts.
Actual obligations-Fiscal year 1963
Office of the Executive Director.
Division of Personnel.
Division of Administrative Services.
Office of the Comptroller..
Division of Data Processing..
Office of the Secretary,
Legal and public records.
Office of the General Counsel.
Division of Legislation.
Office of the Director.
Division of Accounting -
Office of the Director
Division of Scientific Opinions...
Office of the Director...
Division of Regulation.
Office of the Director.
Field offices --
Office of the Director.
Division of Trade Regulation Rules..
Office of the Director.....
Division of Financial Statistics..
1,369, 927 11, 456, 007
9, 454, 143