
[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR1]

[Page 12-13]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 1--GENERAL PROCEDURES--Table of Contents
 
Subpart A--Industry Guidance

                            Advisory Opinions

Sec. 1.1  Policy.

    (a) 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. The Commission will consider such requests for 
advice and inform the requesting party of the Commission's views, where 
practicable, under the following circumstances.
    (1) The matter involves a substantial or novel question of fact or 
law and there is no clear Commission or court precedent; or
    (2) The subject matter of the request and consequent publication of 
Commission advice is of significant public interest.
    (b) The Commission has authorized its staff to consider all requests 
for advice and to render advice, where practicable, in those 
circumstances in which a Commission opinion would not be warranted. 
Hypothetical questions will not be answered, and a request for advice 
will ordinarily be considered inappropriate where:
    (1) The same or substantially the same course of action is under 
investigation or is or has been the subject of a current proceeding 
involving the Commission or another governmental agency, or
    (2) An informed opinion cannot be made or could be made only after 
extensive investigation, clinical study, testing, or collateral inquiry.

[44 FR 21624, Apr. 11, 1979; 44 FR 23515, Apr. 20, 1979, as amended at 
54 FR 14072, Apr. 7, 1989]

Sec. 1.2  Procedure.

    (a) Application. The request for advice or interpretation should be 
submitted in writing (one original and two copies) to the Secretary of 
the Commission and should: (1) State clearly the question(s) that the 
applicant wishes resolved; (2) cite the provision of law under which the 
question arises; and (3) state all facts which the applicant believes to 
be material. In addition, the identity of the companies and other 
persons involved should be disclosed. Letters relating to unnamed 
companies or persons may not be answered. Submittal of additional facts 
may be requested prior to the rendering of any advice.
    (b) Compliance matters. If the request is for advice as to whether 
the proposed course of action may violate

[[Page 13]]

an outstanding order to cease and desist issued by the Commission, such 
request will be considered as provided for in Sec. 2.41 of this chapter.

[44 FR 21624, Apr. 11, 1979, as amended at 44 FR 40638, July 12, 1979]

Sec. 1.3  Advice.

    (a) On the basis of the materials submitted, as well as any other 
information available, and if practicable, the Commission or its staff 
will inform the requesting party of its views.
    (b) Any advice given by the Commission 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 action. 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 the 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.
    (c) Advice rendered by the staff is without prejudice to the right 
of the Commission later to rescind the advice and, where appropriate, to 
commence an enforcement proceeding.

[44 FR 21624, Apr. 11, 1979]

Sec. 1.4  Public disclosure.

    Written advice rendered pursuant to this section and requests 
therefor, including names and details, will be placed in the 
Commission's public record immediately after the requesting party has 
received the advice, subject to any limitations on public disclosure 
arising from statutory restrictions, the Commission's rules, and the 
public interest. A request for confidential treatment of information 
submitted in connection with the questions should be made separately.

[44 FR 21624, Apr. 11, 1979]

                             Industry Guides

Sec. 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.

Sec. 1.6  How promulgated.

    Industry guides \1\ 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.
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    \1\ In the past, certain of these have been promulgated and referred 
to as trade practice rules.
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