This part is based on Public Law 87849, effective January 21, 1963; Executive Order 11222 of May 8, 1965; and Part 735 of Civil Service regulations (5 CFR Part 735). This part does not purport to refer to or enumerate every restriction or requirement imposed by statute, regulation, or other authority. The omission of a reference thereto in no way alters the legal effect of such restriction or requirement. This part is not intended to limit whatever statutory authority or responsibility the Chairman may have with respect to employee conduct and discipline. § 0.735-3

Presidential policy.

The President's policy, in section 101 of Executive Order No. 11222, is that "Where government is based on the consent of the governed, every citizen is entitled to have confidence in the integrity of his government. Each individual officer, employee, or adviser of government must help to earn and must honor that trust by his own integrity and conduct in all official actions." When signing the order, the President spoke even more specifically of what he conceives to be the duty that this policy imposes on employees of the executive branch: "Government personnel bear a special responsibility to be fair and impartal in their dealings with those who have business with the government. We cannot tolerate conflicts of interest or favoritism-and it is our intention to see that this does not take place in the Federal Government." This policy is based on a recognition that the maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by Government employees, and special Government employees, through informed judgment is essential to assure the proper performance of the Government's business and the maintenance of confidence and respect of the citizens in their Government. $ 0.735-4 Definitions.

In this part:

(a) "Commission" means the Federal Trade Commission.

(b) "Employee" means an officer or employee of the Commission, and, insofar as statutory and Executive order provisions are concerned, a Commissioner,

but does not include a special Government employee.

(c) "Executive order" means Executive Order 11222.

(d) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

(e) "Special Government employee" means a "special Government employee" as defined in section 202 of title 18 of the United States Code, who is employed in the Federal Trade Commission. In general, this refers to employees appointed to perform temporary duties on either a full-time or intermittent basis for not to exceed 130 days during any period of 365 consecutive days.

When a statement of employment and financial interests submitted under Subpart D of this part or information from other sources indicates a conflict between the interests of an employee, other than a Commissioner, or special Government employee and the performance of his services for the Government and when the conflict or appearance of conflict is not resolved at a lower level in the Commission, the information concerning the conflict or appearance of conflict shall be reported to the Chairman through the Executive Director. The individual concerned shall be provided an opportunity to explain the conflict or appearance of conflict. § 0.735-7

Disciplinary and other reme

dial action.

(a) A violation of the regulations in this part by an employee, other than a Commissioner, or special Government employee may be cause for appropriate

disciplinary action which may be in addition to any penalty prescribed by law.

(b) When, after consideration of the explanation as provided by § 0.735-6, the Chairman decides that remedial action is required, he will initiate immediate action to end the conflicts or appearance of conflicts of interest. Remedial action may include, but is not limited to:

(1) Changes in assigned duties;

(2) Divestment by the employee or special Government employee of his conflicting interest;

(3) Disciplinary action; or

(4) Disqualification for a particular assignment.

(c) Remedial action, whether disciplinary or otherwise, shall be effected in accordance with any applicable laws, Executive orders, and regulations.

§ 0.735-8 Publication of regulations.

Each employee and special Government employee shall be furnished a copy of the regulations in this part within 90 days after their approval by the Civil Service Commission. Each new employee and special Government employee shall be furnished a copy at the time of his entrance on duty. At least once each year, an appropriate notice shall be issued by the Executive Director to bring the provisions of the regulations in this part to the attention of each employee and special Government employee. Subpart B-Ethical and Other Conduct and Responsibilities of Employees

(a) Except as provided in paragraphs (b) and (e) of this section, an employee shall not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

(1) Has, or is seeking to obtain, contractural or other business or financial relations with the Commission.

(2) Conducts operations or activities that are regulated by or are otherwise subject to the jurisdiction of the Commission.

(3) Has interests that may be substantially affected by the performance or nonperformance of his official duty.

(b) As exceptions to paragraph (a) of this section, an employee shall be permitted to:

(1) Accept gifts, gratuities, favors, entertainment, loans, or other things of monetary value from members of his immediate family (i.e., parents, children, or spouse) when the circumstances make it clear that it is the family relationship rather than the business of the persons concerned which is the motivating factor;

(2) Accept food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on an inspection tour where the employee may properly be in attendance;

(3) Accept loans from banks or other financial institutions on customary terms to finance proper and usual activities of an employee, such as home mortgage loans; and

(4) Accept unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(d) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in 5 U.S.C. 7342.

(e) Neither this section nor § 0.735-12 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbused, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Commission orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.

§ 0.735-12 Outside employment and other activity.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest;

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner; or

(3) Outside employment or other outside activity which may tend to bring discredit upon the Government or the Commission.

(b) An employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209).

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law, the Executive order, or this part. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing that is dependent on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the Chairman gives written authorization for the

use of nonpublic information on the basis that the use is in the public interest. In addition, an officer or employee who is a Presidential appointee covered by section 401(a) of the Executive order shall not receive compensation or anything of monetary value for any consultation, lecture, discussion, writing, or appearance the subject matter of which is devoted substantially to the responsibilities, programs, or operations of the Commission, or which draws substantially on official data or ideas which have not become part of the body of public information.

(d) An employee shall not engage in outside employment under a State or local government, except in accordance with Part 734 of Civil Service regulations (5 CFR Part 734).

(e) This section does not preclude an employee from:

(1) Participation in the activities of national or State political parties not proscribed by law.

(2) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization.

(f) Before engaging in outside employment, an employee, other than a Commissioner, must obtain the written permission of the Executive Director. Request for approval shall be sent through normal supervisory channels and shall include the following information:

(1) Name of the person, group, or organization for whom the work is to be performed.

(2) Nature of the services to be rendered.

(3) Proposed hours of work (if regularly scheduled) or approximate dates of employment.

(4) Employee's certification as to whether the outside employment (including teaching, writing, or lecturing) will depend in any way on information obtained as a result of the employee's official Government position.

§ 0.735-13 Financial interests.

(a) An employee shall not:

(1) Have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities;

or

(2) Engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, the Executive order, or the regulations in this part.

§ 0.735-14 Use of Government prop

erty.

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. § 0.735-15 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 0.735–12(c), directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation” means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which does not, under the circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require the Commission to determine the validity or amount of the disputed debt.

Each employee shall acquaint himself with each statute that relates to his ethical and other conduct as an employee of the Commission and of the Government. The attention of employees is directed to the following statutory provisions:

(a) House Concurrent Resolution 175, 85th Congress, 2d session, 72 Stat. B12, the "Code of Ethics for Government Service".

(b) Chapter 11 of title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

(c) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(d) The prohibitions against disloyalty and striking (5 U.S.C. 7311, 18 U.S.C. 1918).

(e) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(f) The prohibitions against (1) the disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); and (2) the disclosure of confidential information (18 U.S.C. 1905).

(g) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(h) The prohibition against the misuse of a Government vehicle (31 U.S.C. 638a (c)).

(i) The prohibition against the misuse of the franking privilege (18 U.S.C. 1719).

(j) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).