(k) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001). (1) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071). (m) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508). (n) The prohibitions against (1) embezzlement of Government money or property (18 U.S.C. 641); (2) failing to account for public money (18 U.S.C. 643); and (3) embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654). (0) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285). (p) The prohibition against political activities in subchapter III of chapter 73 of title 5, United States Code and 18 U.S.C. 602, 603, 607, and 608. (q) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219). Subpart C-Ethical and Other Conduct and Responsibilities of Special Government Employees § 0.735-21 Application of Subpart B of this part to special Government employees. All provisions of Subpart B of this part except § 0.735-12(f) shall apply to special Government employees. In addition, the regulations in this Subpart C shall apply. § 0.735-22 Use of Government employ ment. A special Government employee shall not use his Government employment for a purpose that is, or gives the appearance of being, motivated by the desire for private gain for himself or another person, particularly one with whom he has family, business, or financial ties. § 0.735-23 Use of inside information. Except as provided in § 0.735-12(c), a special Government employee shall not use inside information obtained as a result of his Government employment for private gain for himself or another person either by direct action on his part or by counsel, recommendation, suggestion to another person, particu or A special Government employee shall not use his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particuwhom he has family, business, or financial ties. § 0.735-25 Gifts, entertainment, and favors. Except as provided in § 0.735-11(b), a special Government employee, while so employed or in connection with his employment, shall not receive or solicit from a person having business with his agency anything of value as a gift, gratuity, loan, entertainment, or favor for himself or another person, particularly one with whom he has family, business, or financial ties. § 0.735-26 Miscellaneous statutory pro visions. (2) The General Counsel and the Assistant General Counsels. (3) The Secretary of the Commission. (4) Hearing Examiners. (5) Bureau Directors, Assistant Bureau Directors, and Chiefs of Divisions within the Bureaus. (6) Attorneys in Charge of the Field Offices. (b) An employee who feels that his position has been improperly designated as one requiring the submission of a statement of employment and financial interests has recourse to the Commission's grievance procedures set forth in Chapter 5-771 of the Commission's Administrative Manual. § 0.735-33 Presidential appointees. A statement of employment and financial interests is not required by this part from the Chairman or other Commissioners. These officials are subject to separate reporting requirements under section 401 of the Executive order. § 0.735-34 Time and place for submission of statements. An employee required to submit a statement of employment and financial interests under the regulations in this part shall submit that statement to the Executive Director not later than: (a) Ninety days after the effective date of the regulations in this part if employed on or before that effective date; or (b) Thirty days after his entrance on duty, but not earlier than 90 days after the effective date, if appointed after that effective date. § 0.735-35 Supplementary statements. Changes in, or additions to, the information contained in an employee's statement of employment and financial interests shall be reported in a supplementary statement as of June 30 each year. If no changes or additions occur, a negative report is required. Notwithstanding the filing of the annual report required by this section, each employee shall at all times avoid acquiring a financial interest that could result, or taking an action that would result, in a violation of the conflicts of interest provisions of section 208 of title 18, United States Code, or Subpart B of this part. § 0.735-36 Interests of employees' relatives. The interest of a spouse, minor child, or other member of an employee's immediate household is considered to be an interest of the employee. For the purpose of this section, "member of an employee's immediate household" means those blood relations who are residents of the employee's household. § 0.735-37 Information not known by employees. If any information required to be included on a statement of employment and financial interests or supplementary statement, including holdings placed in trust, is not known to the employee but is known to another person, the employee shall request that other person to submit information in his behalf. § 0.735-38 Information prohibited. This part does not require an employee to submit on a statement of employment and financial interests or supplementary statement any information relating to the employee's connection with, or interest in, a professional society or a charitable, religious, social, fraternal, recreational, public service, civic, or political organization or a similar organization not conducted as a business enterprise. For the purpose of this section, educational and other institutions doing research and development or related work involving grants of money from or contracts with the Government are deemed "business enterprises" and are required to be included in an employee's statement of employment and financial interests. § 0.735-39 Confidentiality of employ ees' statements. Each statement of employment and financial interests, and each supplementary statement, shall be held in confidence. Only the Chairman, the Executive Director, and the Deputy Executive Director are authorized to review and retain the statements. These officials are responsible for maintaining the statements in confidence and shall not allow access to, or allow information to be disclosed from, a statement except to carry out the purpose of this part. Information from a statement shall not be disclosed except as the Civil Service Commission or the Chairman may determine for good cause shown. § 0.735-40 Effect of employees' statements on other requirements. The statements of employment and financial interests and supplementary statements required of employees are in addition to and not in substitution for, or in derogation of, any similar require ment imposed by law, order, or regulation. The submission of a statement or supplementary statement by an employee does not permit him or any other person to participate in a matter in which his or the other person's participation is prohibited by law, order, or regulation. § 0.735-41 Specific provisions for special Government employees. (a) Except as provided in paragraph (b) of this section, each special Government employee shall submit a statement of employment and financial interests which reports: (1) All other employment; and (2) The financial interests of the special Government employee which relate either directly or indirectly to the duties and responsibilities of the special Government employee. (b) The Chairman may waive the requirement in paragraph (a) of this section for the submission of a statement of employment and financial interests in the case of a special Government employee who is not a consultant or an expert when he finds that the duties of the position held by that special Government employee are of a nature and at such a level of responsibility that the submission of the statement by the incumbent is not necessary to protect the integrity of the Government. For the purpose of this paragraph, "consultant" and "expert" have the meanings given those terms by chapter 304 of the Federal Personnel Manual. (c) A statement of employment and financial interests required to be submitted under this section shall be submitted to the Executive Director not later than the time of employment of the special Government employee. Each special Government employee shall keep his statement current throughout his employment with the Commission by the submission of supplementary statements. § 0.735-42 Reviewing statements. The Executive Director or the Deputy Executive Director shall review each statement of employment and financial interests to ascertain whether a conflict of interest or an apparent conflict of interest exists. If there is a conflict or apparent conflict, the procedures specified in §§ 0.735--6 and 0.735-7 shall be followed. Pursuant to Public Law 87-849 (18 U.S.C. 208), except as permitted by § 0.735-52, no employee or special Government employee shall participate "personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which, to his knowledge, he, his spouse, minor child, partner, organization in which he is serving as officer, director, trustee, partner, or employee, or any person or organization with whom he is negotiating or has any arrangement concerning prospective employment, has a financial interest." Conviction under 18 U.S.C. 208 carries a fine of not more than $10,000, or imprisonment for not more than 2 years, or both. § 0.735-52 * * Exemptions. Section 0.735-51 and 18 U.S.C. 208(a) shall not apply if the employee or special Government employee sends prior written notification to the Chairman, through normal supervisory channels, "of the nature and circumstances of the * particular matter and makes full disclosure of the financial interest," and receives in advance a written determination made by the Chairman "that the interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect from such officer employee." or Purpose. How promulgated. Subpart B-Rules and Rulemaking Scope of the rules in this subpart. Trade regulation rules. 1.41 1.42 1.43 Subpart E-Export Trade Associations Subpart F-Trademark Cancellation Procedure 1.51 Applications. Subpart G-Injunctive and Condemnation 1.61 Injunctions pending Commission action. 1.62 Ancillary court orders pending review. 1.63 Injunctions: Wool, Fur, Flammable Fabrics, and Textile cases. 1.64 Condemnation proceedings. AUTHORITY: The provisions of this Part 1 issued under sec. 6, 38 Stat. 721; 15 U.S.C. 46. SOURCE: The provisions of this Part 1 appear at 32 F.R. 8444, June 13, 1967, unless otherwise noted. Subpart A-Industry Guidance § 1.1 Policy. Any person, partnership, or corporation may request advice from the Commission with respect to a course of action which the requesting party proposes to pursue. It is the Commission's policy to consider requests for such advice and, where practicable, to inform the requesting party of the Commission's views. A request ordinarily will be considered inappropriate for such advice: (a) Where the course of action is already being followed by the requesting party; (b) where the same or substantially the same course of action is under investigation or is or has been the subject of a current proceeding, order, or decree initiated or obtained by the Commission or another governmental agency; or (c) where the proposed course of action or its effects may be such that an informed decision thereon cannot be made or could be made only after extensive investigation, clinical study, testing, or collateral inquiry. § 1.2 Procedure. The request for advice should be submitted in writing to the Secretary of the Commission and should include full and complete information regarding the proposed course of action. Conferences with members of the Commission's staff may be held before or after submittal of the request. Submittals of additional information may be required. The original submittal should affirmatively show that the proposed course of action is not currently being followed by the requesting party and is not the subject of a pending investigation or other proceeding by the Commission or any other governmental agency. If the request is for advice as to whether the proposed course of action may violate an outstanding order to cease and desist issued by the Commission, such request will be considered as provided for in § 3.61 of this chapter. § 1.3 Advice. (a) On the basis of the facts submitted, as well as other information available to the Commission, and if practicable, the Commission will inform the requesting party of its views and may take such other action as may be appropriate. (b) Any advice given is without prejudice to the right of the Commission to reconsider the questions involved and, where the public interest requires, to rescind or revoke the advice. Notice of such rescission or revocation will be given to the requesting party so that he may discontinue the course of action taken pursuant to the Commission's advice. The Commission will not proceed against the requesting party with respect to any action taken in good faith reliance upon the Commission's advice under this section, where all relevant facts were fully, completely, and accurately presented to the Commission and where such action was promptly discontinued upon notification of rescission or revocation of the Commission's approval. § 1.4 Publication. Texts or digests of advisory opinions of general interest will be published by the Commission, subject to statutory re strictions against disclosure of trade secrets and names of customers and to considerations of the confidentiality of commercial, financial, and other facts involved and of meritorious objections made by the requesting party to such publication. INDUSTRY GUIDES § 1.5 Purpose. Industry guides are administrative interpretations of laws administered by the Commission for the guidance of the public in conducting its affairs in conformity with legal requirements. They provide the basis for voluntary and simultaneous abandonment of unlawful practices by members of industry. Failure to comply with the guides may result in corrective action by the Commission under applicable statutory provisions. Guides may relate to a practice common to many industries or to specific practices of a particular industry. § 1.6 How promulgated. Industry guides1 are promulgated by the Commission on its own initiative or pursuant to petition filed with the Secretary or upon informal application therefor, by any interested person or group, when it appears to the Commission that guidance as to the legal requirements applicable to particular practices would be beneficial in the public interest and would serve to bring about more widespread and equitable observance of laws administered by the Commission. In connection with the promulgation of industry guides, the Commission at any time may conduct such investigations, make such studies, and hold such conferences or hearings as it may deem appropriate. All or any part of any such investigation, study, conference, or hearing may be conducted under the provisions of Subpart A of Part 2 of this chapter. Subpart B-Rules and Rulemaking § 1.11 Scope of the rules in this subpart. The rules in this subpart apply to and govern procedure for the promulgation of trade regulation rules, quantity limit rules, rules authorized under the Wool Products Labeling Act of 1939, the Fur Products Labeling Act, the Flammable 1 In the past, certain of these have been promulgated and referred to as trade practice rules. Fabrics Act, and the Textile Fiber Products Identification Act, and rules under the Fair Packaging and Labeling Act except to the extent that objections to orders relating to the issuance, amendment, or repeal of rules under the latter Act are required by statute to be determined on the record after opportunity for an agency hearing. The rules in this subpart do not apply to the promulgation of industry guides, general statements of policy, or rules of agency organization, procedure, or practice. § 1.12 Trade regulation rules. (a) Nature and authority. For the purpose of carrying out the provisions of the statutes administered by it, the Commission is empowered to promulgate rules and regulations applicable to unlawful trade practices. Such rules and regulations (hereinafter called "trade regulation rules") express the experience and judgment of the Commission, based on facts of which it has knowledge derived from studies, reports, investigations, hearings, and other proceedings, or within official notice, concerning the substantive requirements of the statutes which it administers. (b) Scope. Trade regulation rules may cover all applications of a particular statutory provision and may be nationwide in effect, or they may be limited to particular areas or industries or to particular product or geographic markets, as may be appropriate. (c) Use of rules in adjudicative proceedings. Where a trade regulation rule is relevant to any issue involved in an adjudicative proceeding thereafter instituted, the Commission may rely upon the rule to resolve such issue, provided that the respondent shall have been given a fair hearing on the applicability of the rule to the particular case. § 1.13 Quantity limit rules. Quantity limit rules are authorized by section 2(a) of the Clayton Act, as amended by the Robinson-Patman Act. These rules have the force and effect of law. § 1.14 Rules applicable to wool, fur, flammable fabrics, and textile fiber products and rules promulgated under the Fair Packaging and Labeling Act. Rules having the force and effect of law are authorized under section 6 of the Wool Products Labeling Act of 1939, |