
[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 22-24]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 1--GENERAL PROCEDURES--Table of Contents
 
Subpart C--Rules Promulgated Under Authority Other Than Section 18(a)(1)(B) of 
the FTC Act

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

Sec. 1.21  Scope of the rules in this subpart.

    This subpart sets forth procedures for the promulgation of rules 
under authority other than section 18(a)(1)(B) of the FTC Act except as 
otherwise required by law or otherwise specified in the rules of this 
chapter. This subpart does not apply to the promulgation of industry 
guides, general statements of policy, rules of agency organization, 
procedure, or practice, or rules governed by subpart B of this part.

[50 FR 53304, Dec. 31, 1985]

Sec. 1.22  Rulemaking.

    (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 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. 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. When a rule is 
relevant to any issue involved in an ajudicative 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.

[40 FR 15232, Apr. 4, 1975]

Sec. 1.23  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.

[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975]

Sec. 1.24  Rules applicable to wool, fur, 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, section 8 of the 
Fur Products Labeling Act, section 7 of the Textile Fiber

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Products Identification Act, and sections 4, 5, and 6 of the Fair 
Packaging and Labeling Act.

[40 FR 15233, Apr. 4, 1975]

Sec. 1.25  Initiation of proceedings--petitions.

    Proceedings for the issuance of rules or regulations, including 
proceedings for exemption of products or classes of products from 
statutory requirements, may be commenced by the Commission upon its own 
initiative or pursuant to petition filed with the Secretary by any 
interested person or group stating reasonable grounds therefor. Anyone 
whose petition is not deemed by the Commission sufficient to warrant the 
holding of a rulemaking proceeding will be promptly notified of that 
determination and given an opportunity to submit additional data. 
Procedures for the amendment or repeal of a rule or regulation are the 
same as for the issuance thereof.

[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975]

Sec. 1.26  Procedure.

    (a) Investigations and conferences. In connection with any 
rulemaking proceeding, 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.
    (b) Notice. General notice of proposed rulemaking will be published 
in the Federal Register and, to the extent practicable, otherwise made 
available to interested persons except when the Commission for good 
cause finds that notice and public procedure relating to the rule are 
impractical, unnecessary or contrary to the public interest and 
incorporates such finding and a brief statement of the reasons therefor 
in the rule. If the rulemaking proceeding was instituted pursuant to 
petition, a copy of the notice will be served on the petitioner. Such 
notice will include:
    (1) A statement of the time, place, and nature of the public 
proceedings;
    (2) Reference to the authority under which the rule is proposed;
    (3) Either the terms or substance of the proposed rule or 
description of the subjects and issues involved;
    (4) An opportunity for interested persons to participate in the 
proceeding through the submission of written data, views, or arguments; 
and(5) A statement setting forth such procedures for treatment of 
communications from persons not employed by the Commission to 
Commissioners or Commissioner Advisors with respect to the merits of the 
proceeding as will incorporate the requirements of Sec. 1.18(c), 
including the transcription of oral communications required by 
Sec. 1.18(c)(2), adapted in such form as may be appropriate to the 
circumstances of the particular proceeding.
    (c) Oral hearings. Oral hearing on a proposed rule may be held 
within the discretion of the Commission, unless otherwise expressly 
required by law. Any such hearing will be conducted by the Commission, a 
member thereof, or a member of the Commission's staff. At the hearing 
interested persons may appear and express their views as to the proposed 
rule and may suggest such amendments, revisions, and additions thereto 
as they may consider desirable and appropriate. The presiding officer 
may impose reasonable limitations upon the length of time allotted to 
any person. If by reason of the limitations imposed the person cannot 
complete the presentation of his suggestions, he may within twenty-four 
(24) hours file a written statement covering those relevant matters 
which he did not orally present.
    (d) Promulgation of rules or orders. The Commission, after 
consideration of all relevant matters of fact, law, policy, and 
discretion, including all relevant matters presented by interested 
persons in the proceeding, will adopt and publish in the Federal 
Register an appropriate rule or order, together with a concise general 
statement of its basis and purpose and any necessary findings, or will 
give other appropriate public notice of disposition of the proceeding. 
The Federal Register publication will contain the information required 
by the Paperwork Reduction Act, 44 U.S.C. 3501-3520, and the Regulatory 
Flexibility Act, 5 U.S.C. 601-612, if applicable. For each rule for 
which

[[Page 24]]

the Commission must prepare a final regulatory flexibility analysis, the 
Commission will publish one or more guides to assist small entities in 
complying with the rule. Such guides will be designated as ``small 
entity compliance guides.''
    (e) Effective date of rules. Except as provided in paragraphs (f) 
and (g) of this section, the effective date of any rule, or of the 
amendment, suspension, or repeal of any rule will be as specified in a 
notice published in the Federal Register, which date will be not less 
than thirty (30) days after the date of such publication unless an 
earlier effective date is specified by the Commission upon good cause 
found and published with the rule.
    (f) Effective date of rules and orders under Fair Packaging and 
Labeling Act. The effective date of any rule or order under the Fair 
Packaging and Labeling Act will be as specified by order published in 
the Federal Register, but shall not be prior to the day following the 
last day on which objections may be filed under paragraph (g) of this 
section.
    (g) Objections and request for hearing under Fair Packaging and 
Labeling Act. On or before the thirtieth (30th) day after the date of 
publication of an order in the Federal Register pursuant to paragraph 
(f) of this section, any person who will be adversely affected by the 
order if placed in effect may file objections thereto with the Secretary 
of the Commission, specifying with particularity the provisions of the 
order deemed objectionable, stating the grounds therefor, and requesting 
a public hearing upon such objections. Objections will be deemed 
sufficient to warrant the holding of a public hearing only:
    (1) If they establish that the objector will be adversely affected 
by the order;
    (2) If they specify with particularity the provisions of the order 
to which objection is taken; and
    (3) If they are supported by reasonable grounds which, if valid and 
factually supported, may be adequate to justify the relief sought.

Anyone who files objections which are not deemed by the Commission 
sufficient to warrant the holding of a public hearing will be promptly 
notified of that determination. As soon as practicable after the time 
for filing objections has expired, the Commission will publish a notice 
in the Federal Register specifying those parts of the order which have 
been stayed by the filing of objections or, if no objections sufficient 
to warrant the holding of a hearing have been filed, stating that fact.

[32 FR 8444, June 13, 1967. Redesignated at 40 FR 15232, Apr. 4, 1975, 
and amended at 44 FR 16368, Mar. 19, 1979; 50 FR 53304, Dec. 31, 1985; 
63 FR 36340, July 6, 1998]

Subpart D [Reserved]
