are subject to revocation for cause or upon a change in business status or discontinuance of business. The identity of holders of registered identification numbers issued by the Commission is confidential. § 1.83 Continuing guaranties. Continuing guaranties may be filed with the Commission under section 9 of the Wool Products Labeling Act and Rule 33 of the rules and regulations thereunder (§ 300.33 of this chapter); section 10 of the Fur Products Labeling Act and Rule 48 of the rules and regulations thereunder (§ 301.48 of this chapter); section 8 of the Flammable Fabrics Act and Rule 10 of the rules and regulations thereunder (§ 302.10 of this chapter); and section 10 of the Textile Fiber Products Identification Act and Rule 38 of the rules and regulations thereunder (§ 303.38 of this chapter). Upon receipt of continuing guaranties duly executed according to form and substance as prescribed in the applicable rules and regulations, they are filed and made of public record. Necessary forms may be obtained from the Commission upon request. § 1.84 Inspections and counseling. The Commission maintains a staff to carry on compliance inspection and industry counseling work among manufacturers and marketers of wool or other textile fiber products, fur or fur products, as well as articles of wearing apparel and fabrics subject to the provisions of the Flammable Fabrics Act. Administrative action to effect correction of minor infractions on a voluntary basis is taken in those cases where such procedure is believed adequate to effect immediate compliance and protect the public interest. Where inspections reveal violations of a major nature, appropriate corrective action will be taken. Subpart 1-Export Trade Associations § 1.91 Limited antitrust exemption. The Webb-Pomerene Export Trade Act authorizes the organization and operation of export trade associations, and extends to them certain limited exemptions from the Sherman Act and the Clayton Act. It also extends the jurisdiction of the Commission under the Federal Trade Commission Act to unfair methods of competition used in export trade against competitors engaged in export trade, even though the acts consti tuting such unfair methods are done without the territorial jurisdiction of the United States. § 1.92 Notice to Commission. To obtain the exemptions afforded by the Act, an export trade association is required to file with the Commission, within thirty (30) days after its creation, a verified written statement setting forth the location of its offices and places of business, names and addresses of its officer, stockholders or members, and copies of its documents of incorporation or association. On the first day of January of each year thereafter, each association must file a like statement and, when required by the Commission to do so must furnish to the Commission detailed information as to its organization, business, conduct, practices, management, and relation to other associations, corporations, partnerships, and individuals. § 1.93 Recommendations. Whenever the Commission has reason to believe that an association has violated the prohibitions of section 2 of the Act, it may conduct an investigation. If, after investigation, it concludes that the law has been violated, it may make to such association recommendations for the readjustment of its business. If the association fails to comply with the recommendations, the Commission will refer its findings and recommendations to the Attorney General for appropriate action. Subpart J-Trademark Cancellation Procedure § 1.101 Applications. Applications for the institution of proceedings for the cancellation of registration of trade, service, or certification marks under the Trade-Mark Act of 1946 may be filed with the Secretary of the Commission. Such applications shall be in writing, signed by or in behalf of the applicant, and should identify the registration concerned and contain a short and simple statement of the facts constituting the alleged basis for cancellation, the name and address of the applicant, together with all relevant and available information. If, after consideration of the matter, the Commission concludes that application for cancellation of the mark is appropriate, it will institute a proceeding before the Commissioner of Patents for cancellation of the registration. Subpart K-Injunctive and § 1.111 Injunctions pending Commission action. In those cases arising under section 12 of the Federal Trade Commission Act where the Commission has reason to believe that it would be to the interest of the public, the Commission will apply to the courts for injunctive relief, pursuant to the authority granted in section 13 of the Act. § 1.112 Ancillary court orders pending review. Where petition for review of an order to cease and desist has been filed in a United States Court of appeals, the Commission may apply to the court for issurance of such writs as are ancillary to its jurisdiction or are necessary in its judgement to prevent injury to the public or to competitors pendente lite. § 1.113 Injunctions: Wool, Fur, Textile and Flammable Fabrics cases. In those cases arising under the Wool Products Labeling Act, Fur Products Labeling Act, Flammable Fabrics Act, and Textile Fiber Products Identification Act, where it appears to the Commission that it would be to the public interest for it to do so, the Commission will apply to the courts for injunctive relief, pursuant to the authority granted in such Acts. § 1.114 Condemnation proceedings. In those cases arising under the Wool Products Labeling Act, Fur Products Labeling Act and especially the Flammable Fabrics Act where the public may be endangered, and where it appears to the Commission that the public interest requires such action, the Commission will apply to the courts for condemnation, pursuant to the authority granted in such Acts. Subpart L-Cooperation With Other Agencies § 1.121 General policy. It is the policy of the Commission to cooperate with other govermental agencies to avoid unnecessary overlapping or duplication of regulatory functions. Information in the following classes is public and may be obtained as indicated: (a) Annually, subsequent to the end of the fiscal year, the Commission makes a report to Congress summarizing its work during the year. Such reports are available for inspection at the Commission and Government depositories, and copies thereof may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. (b) The Commission's rules of practice and procedure and a description of its organization and policies are published in the FEDERAL REGISTER. Copies thereof may be obtained from the Commission upon request to the Secretary. (c) The decisions of the Commission in adjudicative proceedings and in proceedings disposed of by the entry of consent orders to cease and desist and texts or digests of selected advisory opinions are published periodically in official reports under the title "Federal Trade Commission Decisions." (d) Rules issued under the Wool Products Labeling Act, the Fur Products Labeling Act, the Flammable Fabrics Act, and the Textile Fiber Products Identification Act; quantity limit rules issued under section 2 (a) of the Clayton Act, as amended by the Robinson-Patman Act; trade practice conference rules, trade regulation rules, industry guides, texts or digests of selected advisory opinions and other administrative interpretations are published in the FEDERAL REGISTER. Copies thereof may be obtained upon request to the Secretary of the Commission. (e) The pleadings, transcript of testimony exhibits and all documents received in evidence or made a part of the record in adjudicative proceedings (except evidence received in camera); petitions for the issuance, amendment or repeal of rules and regulations under the Wool, Fur, Textile and Flammable Fabrics Acts, including petitions for exemptions; records of hearings in all rulemaking proceedings; continuing guaranties filed under the Wool, Fur, Textile and Flammable Fabrics Acts; agreements containing orders to cease and desist after acceptance by the Commission; and informal stipulations entered into prior to November 1, 1961, are available at the principal office of the Commission for inspection and copying at reasonable times. Where copies of such materials are desired, § 1.131 applies. (f) Reports of compliance, describing the manner and form in which respondents allege they have complied with the Commission's orders to cease and desist, and written assurances of voluntary compliance which are accepted under § 1.21 (excluding matters disposed of under § 1.84) are available at the principal office of the Commission for inspection and copying at reasonable times, unless at the time a report of compliance or an assurance of voluntary compliance was filed the party filing it requested that it be classified as confidential, showing justification therefor, and the Commission, with due regard to statutory restrictions, its rules and the public interest, granted the request. (g) Additional information concerning the activities of the Commission is released from time to time through the Commission's Office of Information. [28 F.R. 7080, July 11, 1963, as amended at 30 F.R. 8216, June 26, 1965] § 1.133 Confidential information. (a) The records and files of the Commission, and all documents, memoranda, correspondence, exhibits, and information of whatever nature, other than the documentary matters described in § 1.132, coming into the possession or within the knowledge of the Commission or any of its officers or employees in the discharge of their official duties, are confidential. Except to the extent that the disclosure of such material or information is specifically authorized by the Commission or to the extent that its use may become necessary in connection with adjudicative proceedings, they may be disclosed, divulged, or produced for inspection or copying only under the procedure set forth in § 1.134. (b) Under section 10 of the Federal Trade Commission Act, any officer or employee of the Commission who shall make public any information obtained by the Commission without its authority, unless directed by a court, shall be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished by a fine not exceeding five thousand ($5,000) dollars, or by imprisonment not exceeding one year, or by fine and imprisonment, in the discretion of the court. § 1.134 Release of confidential information. (a) Upon good cause shown, the Commission may by order direct that certain records, files, papers, or information be made public or disclosed to a particular applicant. (b) Application by a member of the public for such disclosure shall be in writing, under oath, setting forth the interest of the applicant in the subject matter; a description of the specific information, files, documents, or other material, inspection of which is requested; whether copies are desired; and the purpose for which the information or material, or copies, will be used if the application is granted. Upon receipt of such an application the Commission will take action thereon, having due regard to statutory restrictions, its rules, and the public interest. (c) In the event that confidential material is desired for inspection, copying, or use by an agency of the Federal or a State Government, a request therefor may be made by the administrative head of the agency. Such request shall be in writing, and shall describe the information or material desired, its relevancy to the work and function of the agency and if the production of documents or records or the taking of copies thereof is asked, the use which is intended to be made of them. The Commission will consider and act upon such requests, having due regard to statutory restrictions, its rules, and the public interest. (d) Any officer or employee who is served with a subpoena requiring the production of any document or records or the disclosure of any information which is designated in § 1.133 as confidential shall promptly advise the Commission of the service of such subpoena, the nature of the documents or information sought, and all relevant facts and circumstances. The Commission will thereupon enter such order or give such instructions as it shall deem advisable. If the officer or employee so served has not received instructions from the Com § 2.1 Notice of proposed adjudicative proceeding. Where time, the nature of the proceeding and the public interest permit, the Commission may notify a person, partnership or corporation of its determination to institute a formal proceeding against such party, charging him with having violated one or more of the statutes administered by the Commission. Such notice shall be served in the manner provided in § 4.4 (a) of this chapter, and shall be accompanied by a form of complaint which the Commission intends to issue, together with a proposed form of order. (a) Within ten (10) days after service of such notice, the party named in the proposed complaint may file with the Secretary of the Commission a reply stating whether or not he is interested in having the proceeding disposed of by the entry of a consent order. (b) If the reply is in the negative or if no reply is filed within the time provided, the complaint will be issued and served forthwith. (c) If the reply is in the affirmative, the party served will be afforded an opportunity to execute an appropriate agreement for consideration by the Commission. The party may appear personally or he may be represented by counsel who has entered an appearance under § 4.1 of this chapter. § 2.3 Agreement. Every agreement shall contain, in addition to an appropriate order, an admission of all jurisdictional facts and express waivers of further procedural steps, of the requirement that the Commission's decision contain a statement of findings of fact and conclusions of law, and of all rights to seek judicial review or otherwise to challenge or contest the validity of the order. The agreement shall also contain provisions that the complaint may be used in construing the terms of the order; that the order shall have the same force and effect and shall become final and may be altered, modified or set aside in the same manner and within the same time provided by statute for other orders; and that the agreement shall not became a part of the official record of the proceeding unless and until it is accepted by the Commission. In addition, the agreement may contain a statement that the signing thereof is for settlement purposes only and does not constitute an admission by any party that the law has been violated as alleged in the complaint. § 2.4 Disposition. (a) Within thirty (30) days after the filing of an affirmative reply under § 2.2, an executed agreement conforming with the requirements of § 2.3 may be submitted to the Commission through the Division of Consent Orders. (b) Upon receiving such an agreement, the Commission may (1) accept it and issue its complaint (in such form as the circumstances require), and decision, including the order agreed upon; (2) reject it and issue its complaint and set the matter down for adjudication in regular course; or (3) take such other action as it may deem appropriate. (c) If an agreement is not so submitted, or if at any time it appears to the Division of Consent Orders that the execution of a satisfactory agreement is unlikely, the Division of Consent Orders, after notification to the proposed respondents of its intention to do so, shall submit the matter to the Commission, together with any written offers of settlement which the proposed respondents desire to have the Commission consider. The Commission will thereupon take such action as may be appropriate. (d) After a complaint has been issued, the consent order procedure described SOURCE: The provisions of this Part 3 appear at 28 F.R. 7086, July 11, 1963, unless otherwise noted. Subpart A-Scope of Rules; Nature of Adjudicative Proceedings § 3.1 Scope of the rules in this part. The rules in this part govern procedure in adjudicative proceedings. It is the policy of the Commission that, to the extent practicable and consistent with requirements of law, such proceedings shall be conducted expeditiously. In the conduct of such proceedings the hearing examiner and counsel for all parties shall make every effort at each stage of a proceeding to avoid delay. § 3.2 Nature of adjudicative proceedings. Ajudicative proceedings are those formal proceedings conducted under one or more of the statutes administered by the Commission which are required by statute to be determined on the record after opportunity for an agency hearing. The term does not include other proceedings such as negotiations for the entry of consent orders; investigational hearings as distinguished from proceedings after the issuance of a complaint; hearings for the purpose of inquiring into the manner and extent of compliance with outstanding orders; proceedings for the promulgation of trade regulation rules or trade practice rules; proceedings for fixing quantity limits under section 2(a) of the Clayton Act; investigations under section 5 of the Export Trade Act; or the promulgation of substantive rules and regulations, determinations of classes of products exempted from statutory requirements, the establishment of name guides, or inspections and industry counseling under sections 4(d) and 6(a) of the Wool Products Labeling Act, sections 7, 8(b) and 8(c) of the Fur Products Labeling Act, section 5(c) and 5(d) of the Flammable Fabrics Act, and sections 7(c), 7(d) and 12(b) of the Textile Fiber Products Identification Act. Subpart B-Complaint, Answer, § 3.3 Commencement of proceeding. An adjudicative proceeding is commenced by the issuance and service of a complaint by the Commission. |