
[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 13-22]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 1--GENERAL PROCEDURES--Table of Contents
 
Subpart B--Rules and Rulemaking Under Section 18(a)(1)(B) of the FTC Act

    Authority: 15 U.S.C. 46; 15 U.S.C. 57a; 5 U.S.C. 552; sec. 212(a), 
Pub. L. 104-121, 110 Stat. 857 (5 U.S.C. 601 note).

Sec. 1.7  Scope of rules in this subpart.

    The rules in this subpart apply to and govern proceedings for the 
promulgation of rules as provided in section

[[Page 14]]

18(a)(1)(B) of the Federal Trade Commission Act. Such rules shall be 
known as trade regulation rules. All other rulemaking proceedings shall 
be governed by the rules in subpart C, except as otherwise required by 
law or as otherwise specified in this chapter.

[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]

Sec. 1.8  Nature, authority and use of trade regulation rules.

    (a) For the purpose of carrying out the provisions of the Federal 
Trade Commission Act, the Commission is empowered to promulgate trade 
regulation rules which define with specificity acts or practices which 
are unfair or deceptive acts or practices in or affecting commerce. Such 
rules may include requirements prescribed for the purpose of preventing 
such acts or practices. A violation of a rule shall constitute an unfair 
or deceptive act or practice in violation of section 5(a)(1) of that 
Act, unless the Commission otherwise expressly provides in its rule. 
However, the respondent in an adjudicative proceeding may show that his 
conduct does not violate the rule or assert any other defense to which 
he is legally entitled.
    (b) The Commission at any time may conduct such investigations, make 
such studies and hold such conferences as it may deem necessary. All or 
any part of any such investigation may be conducted under the provisions 
of subpart A of part 2 of this chapter.

[46 FR 26288, May 12, 1981]

Sec. 1.9  Petitions to commence trade regulation rule proceedings.

    Trade regulation rule proceedings may be commenced by the Commission 
upon its own initiative or pursuant to written petition filed with the 
Secretary by any interested person stating reasonable grounds therefor. 
If the Commission determines to commence a trade regulation rule 
proceeding pursuant to the petition, the petitioner shall be mailed a 
copy of the public notices issued under Secs. 1.10, 1.11 and 1.12. Any 
person whose petition is not deemed by the Commission sufficient to 
warrant commencement of a rulemaking proceeding shall be notified of 
that determination and may be given an opportunity to submit additional 
data.

[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]

Sec. 1.10  Advance notice of proposed rulemaking.

    (a) Prior to the commencement of any trade regulation rule 
proceeding, the Commission shall publish in the Federal Register an 
advance notice of such proposed proceeding.
    (b) The advance notice shall:
    (1) Contain a brief description of the area of inquiry under 
consideration, the objectives which the Commission seeks to achieve, and 
possible regulatory alternatives under consideration by the Commission; 
and
    (2) Invite the response of interested persons with respect to such 
proposed rulemaking, including any suggestions or alternative methods 
for achieving such objectives.
    (c) The advance notice shall be submitted to the Committee on 
Commerce, Science, and Transportation of the Senate and to the Committee 
on Interstate and Foreign Commerce of the House of Representatives.
    (d) The Commission may, in addition to publication of the advance 
notice, use such additional mechanisms as it considers useful to obtain 
suggestions regarding the content of the area of inquiry before 
publication of an initial notice of proposed rulemaking pursuant to 
Sec. 1.11.

[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985]

Sec. 1.11  Commencement of a rulemaking proceeding.

    (a) Initial notice. A trade regulation rule proceeding shall 
commence with an initial notice of proposed rulemaking. Such notice 
shall be published in the Federal Register not sooner than 30 days after 
it has been submitted to the Committee on Commerce, Science, and 
Transportation of the Senate and to the Committee on Interstate and 
Foreign Commerce of the House of Representatives. The initial notice 
shall include:
    (1) The text of the proposed rule including any alternatives which 
the Commission proposes to promulgate;

[[Page 15]]

    (2) Reference to the legal authority under which the rule is 
proposed;
    (3) A statement describing with particularity the reason for the 
proposed rule;
    (4) An invitation to all interested persons to propose issues which 
meet the criteria of Sec. 1.13(d)(1)(i) for consideration in accordance 
with Sec. 1.13 (d)(5) and (d)(6);
    (5) An invitation to all interested persons to comment on the 
proposed rule; and
    (6) A statement of the manner in which the public may obtain copies 
of the preliminary regulatory analysis.
    (b) Preliminary regulatory analysis. Except as otherwise provided by 
statute, the Commission shall, when commencing a rulemaking proceeding, 
issue a preliminary regulatory analysis which shall contain:
    (1) A concise statement of the need for, and the objectives of, the 
proposed rule;
    (2) A description of any reasonable alternatives to the proposed 
rule which may accomplish the stated objective of the rule in a manner 
consistent with applicable law;
    (3) For the proposed rule, and for each of the alternatives 
described in the analysis, a preliminary analysis of the projected 
benefits and any adverse economic effects and any other effects, and of 
the effectiveness of the proposed rule and each alternative in meeting 
the stated objectives of the proposed rule; and
    (4) The information required by the Regulatory Flexibility Act, 5 
U.S.C. 601-612, and the Paperwork Reduction Act, 44 U.S.C. 3501-3520, if 
applicable.

[46 FR 26288, May, 12, 1981, as amended at 50 FR 53303, Dec. 31, 1985; 
63 FR 36340, July 6, 1998]

Sec. 1.12  Final notice.

    A final notice of proposed rulemaking shall be published in the 
Federal Register and, to the extent practicable, otherwise made 
available to interested persons. The final notice shall include:
    (a) Designated issues, unless there are none, which are to be 
considered in accordance with Sec. 1.13 (d)(5) and (d)(6);
    (b) The time and place of an informal hearing;
    (c) Instructions to interested persons seeking to make oral 
presentations;
    (d) A requirement that interested persons who desire to avail 
themselves of the procedures of Sec. 1.13 (d)(5) and (d)(6) with respect 
to any issue designated in paragraph (a) of this section must identify 
their interests with respect to those issues in such manner as may be 
established by the presiding officer; and
    (e) an incorporation by reference of the contents of the initial 
notice.

[40 FR 33966, Aug. 13, 1975, as amended at 50 FR 53303, Dec. 31, 1985]

Sec. 1.13  Rulemaking proceeding.

    (a) Written comments. After commencement of a trade regulation rule 
proceeding, the Commission shall accept written submissions of data, 
views, and arguments on all issues of fact, law, and policy. The initial 
notice shall specify the deadline for filing written comments under this 
subsection.
    (b) Comments proposing issues subject to the procedures of Sec. 1.13 
(d)(5) and (d)(6). Interested persons may propose issues for 
consideration in accordance with Sec. 1.13 (d)(5) and (d)(6) until 
thirty (30) days after the close of the written comment period or such 
other period as the Commission may establish in the initial notice.
    (c) Presiding officer--(1) Assignment. Upon commencement of a 
proposed trade regulation rule proceeding, a presiding officer shall be 
appointed by the Chief Presiding Officer or, when the Commission or one 
or more of its members serves as presiding officer, by the Commission.
    (2) Powers of the presiding officer. The presiding officer shall be 
responsible for the orderly conduct of the rulemaking proceeding and the 
maintenance of the rulemaking and public records until the close of the 
postrecord comment period. He shall have all powers necessary to that 
end including the following:
    (i) To publish a final notice in accordance with Sec. 1.12 or issue 
any other public notice that may be necessary for the orderly conduct of 
the rulemaking proceeding;

[[Page 16]]

    (ii) To designate or modify, issues for consideration in accordance 
with Sec. 1.13 (d)(5) and (d)(6);
    (iii) To set the time and place of the informal hearing and to 
change any time periods prescribed in this subpart;
    (iv) To prescribe rules or issue rulings to avoid unnecessary costs 
or delay. Such rules or rulings may include, but are not limited to, the 
imposition of reasonable time limits on each person's oral presentation; 
and requirements that any examination; including cross-examination, 
which a person may be entitled to conduct or have conducted be conducted 
by the presiding officer on behalf of that person in such a manner as 
the presiding officer determines to be appropriate and to be required 
for a full and true disclosure with respect to any issue designated for 
consideration in accordance with Sec. 1.13 (d)(5) and (d)(6);
    (v) To make rules and rulings limiting the representation of 
interested persons for the purpose of examination, including cross-
examination, and governing the manner in which such examination is 
limited, including the selection of a representative from among a group 
of persons with the same or similar interests;
    (vi) To require that oral presentations at the informal hearing or 
responses to written questions be under oath;
    (vii) To require that oral presentations at the informal hearing be 
submitted in writing in advance of presentation;
    (viii) To certify questions to the Commission for its determination; 
and
    (ix) To rule upon all motions or petitions of interested persons, 
which motions or petitions must be filed with the presiding officer 
until the close of the postrecord comment period.
    (3) Review of rulings by the presiding officer--(i) Review after 
certification by the presiding officer. Except as otherwise provided in 
paragraph (c)(3)(ii) of this section, applications for review of a 
ruling will not be entertained by the Commission prior to its review of 
the record pursuant to Sec. 1.14, unless the presiding officer certifies 
in writing to the Commission that a ruling involves a controlling 
question of law or policy as to which there is substantial ground for 
difference of opinion and that an immediate review of the ruling may 
materially advance the ultimate termination of the proceeding or 
subsequent review will be an inadequate remedy. Within five (5) days 
after a ruling by the presiding officer, any interested person may 
petition the presiding officer for certification of that ruling to the 
Commission. Certification of a ruling shall not stay the rulemaking 
proceeding unless the presiding officer or the Commission shall so 
order. Submissions to the Commission not to exceed fifteen (15) pages 
may be made within ten (10) days of the presiding officer's 
certification. All such filings shall be a part of the rulemaking 
record. The Commission may thereupon, in its discretion, permit the 
appeal. Commission review, if permitted, will be based on the 
application for review and any additional submissions, without oral 
argument or further briefs, unless otherwise ordered by the Commission.
    (ii) Review without certification by the presiding officer. Within 
ten (10) days after publication of the final notice, any interested 
person may petition the Commission for addition, modification or 
deletion of a designated issue, accompanied by a filing not to exceed 
fifteen (15) pages. Additional submissions on the issue by other 
interested persons, not to exceed fifteen (15) pages, may be made within 
twenty (20) days of the publication of the final notice. The Commission 
may thereupon, in its discretion, permit the appeal. Commission review, 
if permitted, will be based on the petition and any additional 
submissions, without oral argument or further briefs, unless otherwise 
ordered by the Commission. A petition hereunder shall not stay the 
rulemaking proceeding unless the presiding officer or the Commission 
shall so order. All petitions filed under this paragraph shall be a part 
of the rulemaking record. Notice of the filing of any such petition may 
be obtained from the Office of the Secretary of the Commission. In the 
event any designated issue is added or substantially modified by the 
Commission, interested persons shall be given a further opportunity to 
identify their interests with respect to those issues.
    (4) Substitution of presiding officer. In the event of the 
substitution of a new

[[Page 17]]

presiding officer for the one originally appointed, any motion 
predicated upon such substitution shall be made within five (5) days 
thereafter.
    (5) Organization. In the performance of their rulemaking functions, 
presiding officers shall be responsible to the chief presiding officer 
who shall not be responsible to any other officer or employee of the 
Commission.
    (6) Ex parte communications. Except as required for the disposition 
of ex parte matters as authorized by law, no presiding officer shall 
consult any person or party with respect to any fact in issue unless 
such officer gives notice and opportunity for all parties to 
participate.
    (d) Informal hearings. An informal hearing with the opportunity for 
oral presentations on all issues shall be conducted by the presiding 
officer. In addition, if an issue is designated pursuant to these rules 
for consideration in accordance with Sec. 1.13(d) (5) and (6), the 
informal hearing on such issues shall be conducted in accordance with 
those paragraphs. For all other issues the presiding officer may in his 
discretion employ, in whole or in part, the procedures of those 
paragraphs.
    (1) Nature of issues for consideration in accordance with Sec. 1.13 
(d)(5) and (d)(6)--(i) Issues that must be considered in accordance with 
Sec. 1.13(d)(5) and (d)(6). The only issues that must be designated for 
consideration in accordance with paragraphs (d)(5) and (d)(6) of this 
section are disputed issues of fact that are determined by the 
Commission or the presiding officer to be material and necessary to 
resolve.
    (ii) Issues that may be considered in accordance with 
Sec. 1.13(d)(5) and (d)((6). The Commission and the presiding officer 
retain the power to designate any other issues for consideration in 
accordance with paragraphs (d)(5) and (d)(6) of this section.
    (2) Addition or modification of issues for consideration in 
accordance with Sec. 1.13(d)(5) and (d)(6). The presiding officer may at 
any time on his own motion or pursuant to a written petition by 
interested persons, add or modify any issues designated pursuant to 
Sec. 1.12(a). No such petition shall be considered unless good cause is 
shown why any such proposed issue was not proposed pursuant to 
Sec. 1.13(b).
    (3) Identification of interests. Not later than twenty (20) days 
after publication of the final notice each interested person who desires 
to avail himself of the procedures of paragraphs (d)(5) and (d)(6) of 
this section shall notify the presiding officer in writing of his 
particular interest with respect to each issue designated for 
consideration in accordance with those subsections. In the event that 
new issues are designated, each interested person shall promptly notify 
the presiding officer of his particular interest with respect to each 
such issue.
    (4) Examination and cross-examination by the presiding officer. The 
presiding officer may conduct any examination, including cross-
examination, to which a person may be entitled. For that purpose he may 
require submission of written requests for presentation of questions to 
any person making oral presentations and shall determine whether to ask 
such questions or any other questions. All requests for presentation of 
questions shall be placed in the rulemaking record.
    (5) Examination, cross-examination, and the presentation of rebuttal 
submissions by interested persons--(i) In general. The presiding officer 
shall conduct or allow to be conducted examination, including cross-
examination of oral presentations and the presentation of rebuttal 
submissions relevant to the issues designated for consideration in 
accordance with paragraphs (d)(5) and (d)(6) of this section. 
Examination, including, cross-examination, and the presentation of 
rebuttal submissions, shall be allowed to the extent to which it is 
appropriate and is required for a full and true disclosure with respect 
to those issues. Requests for an opportunity to examine, including 
cross-examine, or to present rebuttal submissions, shall be accompanied 
by a specific justification therefor. In determining whether or not to 
grant such requests, the presence of the following circumstances 
indicate that such requests should be granted:
    (A) An issue for examination including cross-examination, or the 
presentation of rebuttal submissions, is an

[[Page 18]]

issue of specific in contrast to legislative fact.
    (B) A full and true disclosure with respect to the issue can only be 
achieved through examination including cross-examination rather than 
through rebuttal submissions or the presentation of additional oral 
submissions.
    (C) Circumstantial guarantees of the trustworthiness of a 
presentation do not exist.
    (D) The particular presentation is required for the resolution of a 
designated issue.
    (ii) Selection of representatives for cross-examination. After 
consideration of the information supplied in response to the final 
notice, the presiding officer shall identify groups of persons with the 
same or similar interests in the proceeding. Any such group may be 
required to select a single representative for the purpose of 
examination, including cross-examination. If a group is unable to select 
a representative then the presiding officer may select a representative 
of each such group.
    (iii) Inability to select representative for examination, including 
cross-examination. No person shall be denied the opportunity to conduct 
or have conducted, examination, including cross-examination, under 
paragraph (d)(5)(i) of this section if he is a member of a group as 
described in paragraph (d)(5)(ii) of this section and is unable to agree 
upon group representation with other group members after a good faith 
effort to do so and seeks to present substantial and relevant issues 
which will not be adequately presented by the group representative. In 
that event he shall be allowed to conduct or have conducted any 
examination, including cross-examination, to which he is entitled on 
issues designated for consideration in accordance with paragraphs (d)(5) 
and (d)(6) of this section and which affect his particular interest.
    (6) Requests to compel the attendance of persons or the production 
of documents or to obtain responses to written questions. During the 
course of the rulemaking proceeding, the presiding officer shall 
entertain requests from the Commission's staff or any interested person 
to compel the attendance of persons or the production of documents or to 
obtain responses to written questions. Requests to compel the attendance 
of persons or the production of documents or to obtain responses to 
written questions shall contain a statement showing the general 
relevancy of the material, information or presentation, and the 
reasonableness of the scope of the request, together with a showing that 
such material, information or presentation is not available by voluntary 
methods and cannot be obtained through examination, including cross-
examination, of oral presentations or the presentation of rebuttal 
submissions, and is appropriate and required for a full and true 
disclosure with respect to the issues designated for consideration in 
accordance with paragraphs (d)(5) and (d)(6) of this section. If the 
presiding officer determines that a request should be granted, he shall 
transmit his determination to the Commission which shall determine 
whether to issue a civil investigative demand under Sec. 2.7(b). 
Information received in response to such a demand may be disclosed in 
the rulemaking proceeding subject to an in camera order under 
Sec. 1.18(b).
    (e) Written transcript. A verbatim transcript shall be made of the 
informal hearing which transcript shall be placed in the rulemaking 
record.
    (f) Staff recommendations. The staff shall make recommendations to 
the Commission in a report on the rulemaking record. Such report shall 
contain its analysis of the record and its recommendations as to the 
form of the final rule.
    (g) Recommended decision. After publication of the staff report, the 
presiding officer shall make a recommended decision based upon his or 
her findings and conclusions as to all relevant and material evidence, 
and taking into account the staff report. The recommended decision shall 
be made by the presiding officer who presided over the rulemaking 
proceeding except that such recommended decision may be made by another 
officer if the officer who presided over the proceeding is no longer 
available to the Commission.
    (h) Postrecord comment. The staff report and the presiding officer's 
recommended decision shall be the subject of public comment for a period 
to be prescribed by the presiding officer at

[[Page 19]]

the time the recommended decision is placed in the rulemaking record. 
The comment period shall be no less than sixty (60) days. The comments 
shall be confined to information already in the record and may include 
requests for review by the Commission of determinations made by the 
presiding officer.
    (i) Commission review of the rulemaking record. The Commission shall 
review the rulemaking record to determine what form of rule, if any, it 
should promulgate. During this review process, the Commission may allow 
persons who have previously participated in the proceeding to make oral 
presentations to the Commission, unless it determines with respect to 
that proceeding that such presentations would not significantly assist 
it in its deliberations. Presentations shall be confined to information 
already in the rulemaking record. Requests to participate in an oral 
presentation must be received by the Commission no later than the close 
of the comment period under Sec. 1.13(h). The identity of the 
participants and the format of such presentations will be announced in 
advance by the Office of Public Information in the Commisison's Weekly 
Calendar and Notice of ``Sunshine'' Meetings and in accordance with the 
applicable provisions of 5 U.S.C. 552(b) and Sec. 4.15 of the 
Commission's Rules of Practice. Such presentations will be transcribed 
verbatim or summarized at the discretion of the Commission and a copy of 
the transcript or summary and copies of any written communications and 
summaries of any oral communications relating to such presentations 
shall be placed on the rulemaking record.

[40 FR 33966, Aug. 13, 1975, as amended at 43 FR 39084, Sept. 1, 1978; 
45 36341, May 29, 1980; 45 FR 78628, Nov. 26, 1980; 46 FR 14888, Mar. 3, 
1981; 46 FR 26288, May 12, 1981; 50 FR 53303, Dec. 31, 1985; 54 FR 
19886, May 9, 1989]

Sec. 1.14  Promulgation.

    (a) The Commission, after review of the rulemaking record, may 
issue, modify, or decline to issue any rule. Where it believes that it 
should have further information or additional views of interested 
persons, it may withhold final action pending the receipt of such 
additional information or views. If it determines not to issue a rule, 
it may adopt and publish an explanation for not doing so.
    (1) Statement of Basis and Purpose. If the Commission determines to 
promulgate a rule, it shall adopt a Statement of Basis and Purpose to 
accompany the rule which shall include:
    (i) A statement as to the prevalence of the acts or practices 
treated by the rule;
    (ii) A statement as to the manner and context in which such acts or 
practices are unfair or deceptive;
    (iii) A statement as to the economic effect of the rule, taking into 
account the effect on small businesses and consumers;
    (iv) a statement as to the effect of the rule on state and local 
laws; and
    (v) A statement of the manner in which the public may obtain copies 
of the final regulatory analysis.
    (2) Final regulatory analysis. Except as otherwise provided by 
statute, if the Commission determines to promulgate a final rule, it 
shall issue a final regulatory analysis relating to the final rule. Each 
final regulatory analysis shall contain:
    (i) A concise statement of the need for, and the objectives of, the 
final rule;
    (ii) A description of any alternatives to the final rule which were 
considered by the Commission;
    (iii) An analysis of the projected benefits and any adverse economic 
effects and any other effects of the final rule;
    (iv) An explanation of the reasons for the determination of the 
Commission that the final rule will attain its objectives in a manner 
consistent with applicable law and the reasons the particular 
alternative was chosen;
    (v) A summary of any significant issues raised by the comments 
submitted during the public comment period in response to the 
preliminary regulatory analysis, and a summary of the assessment by the 
Commission of such issues; and
    (vi) The information required by the Regulatory Flexibility Act, 5 
U.S.C. 601-612, and the Paperwork Reduction Act, 44 U.S.C. 3501-3520, if 
applicable.
    (3) Small entity compliance guide. For each rule for which the 
Commission must prepare a final regulatory flexibility analysis, the 
Commission will

[[Page 20]]

publish one or more guides to assist small entities in complying with 
the rule. Such guides will be designated as ``small entity compliance 
guides.''
    (b) In the event the Commission determines, upon its review of the 
rulemaking record, to propose a revised rule for further proceedings in 
accordance with this subpart, such proceedings, including the 
opportunity of interested persons to avail themselves of the procedures 
of Sec. 1.13 (d)(5) and (d)(6), shall be limited to those portions of 
the revised rule, the subjects and issues of which were not 
substantially the subject of comment in response to a previous notice of 
proposed rulemaking.
    (c) The final rule and Statement of Basis and Purpose shall be 
published in the Federal Register. A rule issued under this subpart 
shall be deemed promulgated at 3 p.m. Eastern Standard Time on the 
fourth day after the date on which the final rule and Statement of Basis 
and Purpose are published in the Federal Register. In the event such day 
is a Saturday, Sunday or national holiday, then the rule is deemed 
promulgated at 3 p.m. Eastern Standard Time on the following business 
day.

[40 FR 33966, Aug. 13, 1975, as amended at 46 FR 26289, May 12, 1981; 50 
FR 53304, Dec. 31, 1985; 63 FR 36340, July 6, 1998]

Sec. 1.15  Amendment or repeal of a rule.

    (a) Substantive amendment or repeal of a rule. The procedures for 
substantive amendment to or repeal of a rule are the same as for the 
issuance thereof.
    (b) Nonsubstantive amendment of a rule. The Commission may make a 
nonsubstantive amendment to a rule by announcing the amendment in the 
Federal Register.

[46 FR 26289, May 12, 1981]

Sec. 1.16  Petition for exemption from trade regulation rule.

    Any person to whom a rule would otherwise apply may petition the 
Commission for an exemption from such rule. The procedures for 
determining such a petition shall be those of subpart C of these rules.

[40 FR 33966, Aug. 13, 1975]

Sec. 1.17  [Reserved]

Sec. 1.18  Rulemaking record.

    (a) Definition. For purposes of these rules the term rulemaking 
record includes the rule, its Statement of Basis and Purpose, the 
verbatim transcripts of the informal hearing, written submissions, the 
recommended decision of the presiding officer, and the staff 
recommendations as well as any public comment thereon, verbatim 
transcripts or summaries of oral presentations to the Commission any 
communications placed on the rulemaking record pursuant to Sec. 1.18c 
and any other information which the Commission considers relevant to the 
rule.
    (b) Public availability. The rulemaking record shall be publicly 
available except when the presiding officer, for good cause shown, 
determines that it is in the public interest to allow any submission to 
be received in camera subject to the provisions of Sec. 4.11 of this 
chapter.
    (c) Communications to Commissioners and Commissioners' personal 
staffs--(1) Communications by outside parties. Except as otherwise 
provided in this subpart or by the Commission, after the Commission 
votes to issue an initial notice of proposed rulemaking, comment on the 
proposed rule should be directed to the presiding officer pursuant to 
Sec. 1.13. Communications with respect to the merits of that proceeding 
from any outside party to any Commissioner or Commissioner advisor shall 
be subject to the following treatment:
    (i) Written communications. Written communications, including 
written communications from members of Congress, received within the 
period for acceptance of initial written comments shall be forwarded 
promptly to the presiding officer for placement on the rulemaking 
record. Written communications received after the time period for 
acceptance of initial written comments but prior to any other deadline 
for the acceptance of written submissions will be forwarded promptly to 
the presiding officer, who will determine whether such communications 
comply with the applicable requirements for written submissions at that

[[Page 21]]

stage of the proceeding. Communications that comply with such 
requirements will be promptly placed on the rulemaking record. 
Noncomplying communications and all communications received after the 
time periods for acceptance of written submissions will be placed 
promptly on the public record.
    (ii) Oral communications. Oral communications are permitted only 
when advance notice of such oral communications is published by the 
Commission's Office of Public Information in its Weekly Calendar and 
Notice of ``Sunshine'' Meetings and when such oral communications are 
transcribed verbatim or summarized at the discretion of the Commissioner 
or Commissioner advisor to whom such oral communications are made and 
are promptly placed on the rulemaking record together with any written 
communications and summaries of any oral communications relating to such 
oral communications. Transcripts or summaries of oral communications 
which occur after the time period for acceptance of initial written 
comments but prior to any other deadline for the acceptance of written 
submissions will be forwarded promptly to the presiding officer together 
with any written communications and summaries of any oral communications 
relating to such oral communications. The presiding officer will 
determine whether such oral communications comply with the applicable 
requirements for written submissions at that stage of the proceeding. 
Transcripts or summaries of oral communications that comply with such 
requirements will be promptly placed on the rulemaking record together 
with any written communications and summaries of any oral communications 
relating to such oral communications. Transcripts or summaries of 
noncomplying oral communications will be promptly placed on the public 
record together with any written communications and summaries of any 
oral communications relating to such oral communications. No oral 
communications are permitted subsequent to the close of the postrecord 
comment period, except as provided in Sec. 1.13(i). If an oral 
communication does otherwise occur, the Commissioner or Commissioner 
advisor will promptly place on the public record either a transcript of 
the communication or a memorandum setting forth the contents of the 
communication and the circumstances thereof; such transcript or 
memorandum will not be part of the rulemaking record.
    (iii) Congressional communications. The provisions of paragraph 
(c)(1)(ii) of this section do not apply to communications from members 
of Congress. Memoranda prepared by the Commissioner or Commissioner 
advisor setting forth the contents of any oral congressional 
communications will be placed on the public record. If the communication 
occurs within the initial comment period and is transcribed verbatim or 
summarized, the transcript or summary will be promptly placed on the 
rulemaking record. A transcript or summary of any oral communication 
which occurs after the time period for acceptance of initial written 
comments but prior to any other deadline for the acceptance of written 
submissions will be forwarded promptly to the presiding officer, who 
will determine whether such oral communication complies with the 
applicable requirements for written submissions at that stage of the 
proceeding. Transcripts or summaries of oral communications that comply 
with such requirements will be promptly placed on the rulemaking record. 
Transcripts or summaries of noncomplying oral communications will be 
placed promptly on the public record.
    (2) Communications by certain officers, employees, and agents of the 
Commission. Any officer, employee, or agent of the Commission with 
investigative or other responsibility relating to any rulemaking 
proceeding within any operating bureau of the Commission is prohibited 
from communicating or causing to be communicated to any Commissioner or 
to the personal staff of any Commissioner any fact which is relevant to 
the merits of such proceeding and which is not on the rulemaking record 
of such proceeding, unless such communication is made available to the 
public and is included in the rulemaking record. The provisions of this 
subsection shall not apply to any communication to the extent such 
communication is required for the

[[Page 22]]

disposition of ex parte matters as authorized by law.

(Sec. 6(g), 38 Stat. 721 (15 U.S.C. 46), 80 Stat. 383, as amended (5 
U.S.C. 552))

[42 FR 43974, Sept. 1, 1977, as amended at 42 FR 60563, Nov. 28, 1977; 
44 FR 16368, Mar. 19, 1979; 44 FR 21005, Apr. 9, 1979; 45 FR 78628, Nov. 
26, 1980; 50 FR 53304, Dec. 31, 1985]

Sec. 1.19  Modification of a rule by the Commission at the time of 
          judicial review.

    In the event that a reviewing court determines under section 
18(e)(2) of the Federal Trade Commission Act, to allow further 
submissions and presentations on the rule, the Commission may modify or 
set aside its rule or make a new rule by reason of the additional 
submissions and presentations. Such modified or new rule shall then be 
filed with the court together with an appropriate Statement of Basis and 
Purpose and the return of such submissions and presentations.

[40 FR 33966, Aug. 13, 1975, as amended at 50 FR 53304, Dec. 31, 1985]

Sec. 1.20  Alternative procedures.

    If the Commission determines at the commencement of a rulemaking 
proceeding to employ procedures other than those established in the 
remainder of this subpart, it may do so by announcing those procedures 
in the Federal Register notice commencing the rulemaking proceeding.

[43 FR 35683, Aug. 11, 1978]
