
[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: 16CFR2]

[Page 32-40]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 2--NONADJUDICATIVE PROCEDURES--Table of Contents
 
Subpart A--Inquiries; Investigations; Compulsory Processes

Sec. 2.1  How initiated.

    Commission investigations and inquiries may be originated upon the 
request of the President, Congress, governmental agencies, or the 
Attorney General; upon referrals by the courts; upon complaint by 
members of the public; or by the Commission upon its own initiative. The 
Commission has delegated to the Director, Deputy Directors, and 
Assistant Directors of the Bureau of Competition, the Director, Deputy 
Directors, and Associate Directors of the Bureau of Consumer Protection 
and, the Regional Directors and Assistant Regional Directors of the 
Commission's regional offices, without power of redelegation, limited 
authority to initiate investigations. The Director of the Bureau of 
Competition has also been delegated, without power of redelegation, 
authority to open investigations in response to requests pursuant to an 
agreement under the International Antitrust Enforcement Assistance Act, 
15 U.S.C. 6201 et seq., if the requests do not ask the Commission to use 
process. Before responding to such a request, the Bureau Director shall 
transmit the proposed response to the

[[Page 33]]

Secretary and the Secretary shall notify the Commission of the proposed 
response. If no Commissioner objects within three days following the 
Commission's receipt of such notification, the Secretary shall inform 
the Bureau Director that he or she may proceed.

[48 FR 41374, Sept. 15, 1983, as amended at 50 FR 53304, Dec. 31, 1985; 
65 FR 67259, Nov. 9, 2000]

Sec. 2.2  Request for Commission action.

    (a) Any individual, partnership, corporation, association, or 
organization may request the Commission to institute an investigation in 
respect to any matter over which the Commission has jurisdiction.
    (b) Such request should be in the form of a signed statement setting 
forth the alleged violation of law with such supporting information as 
is available, and the name and address of the person or persons 
complained of. No forms or formal procedures are required.
    (c) The person making the request is not regarded as a party to any 
proceeding which might result from the investigation.
    (d) It is the general Commission policy not to publish or divulge 
the name of an applicant or complaining party except as required by law 
or by the Commission's rules. Where a complaint is by a consumer or 
consumer representative concerning a specific consumer product or 
service, the Commission, in the course of a referral of the complaint or 
of an investigation, may disclose the identity of the complainant or 
complainants. In referring any such consumer complaint, the Commission 
specifically retains its right to take such action as it deems 
appropriate in the public interest and under any of the statutes which 
it administers.

[32 FR 8446, June 13, 1967, as amended at 35 FR 10146, June 20, 1970]

Sec. 2.3  Policy as to private controversies.

    The Commission acts only in the public interest and does not 
initiate an investigation or take other action when the alleged 
violation of law is merely a matter of private controversy and does not 
tend adversely to affect the public.

[32 FR 8446, June 13, 1967]

Sec. 2.4  Investigational policy.

    The Commission encourages voluntary cooperation in its 
investigations. Where the public interest requires, however, the 
Commission may, in any matter under investigation adopt a resolution 
authorizing the use of any or all of the compulsory processes provided 
for by law.

[45 FR 36341, May 29, 1980]

Sec. 2.5  By whom conducted.

    Inquiries and investigations are conducted under the various 
statutes administered by the Commission by Commission representatives 
designated and duly authorized for the purpose. Such representatives are 
``examiners'' or ``Commission investigators'' within the meaning of the 
Federal Trade Commission Act and are authorized to exercise and perform 
the duties of their office in accordance with the laws of the United 
States and the regulations of the Commission. Included among such duties 
is the administration of oaths and affirmations in any matter under 
investigation by the Commission.

[45 FR 36341, May 29, 1980]

Sec. 2.6  Notification of purpose.

    Any person under investigation compelled or requested to furnish 
information or documentary evidence shall be advised of the purpose and 
scope of the investigation and of the nature of the conduct constituting 
the alleged violation which is under investigation and the provisions of 
law applicable to such violation.

[46 FR 26290, May 12, 1981; 46 FR 27634, May 21, 1981]

Sec. 2.7  Compulsory process in investigations.

    (a) In general. The Commission or any member thereof may, pursuant 
to a Commission resolution, issue a subpoena or a civil investigative 
demand directing the person named therein to appear before a designated 
representative at a designated time and place to

[[Page 34]]

testify or to produce documentary evidence, or both, or, in the case of 
a civil investigative demand, to provide a written report or answers to 
questions relating to any matter under investigation by the Commission. 
Material for which a civil investigative demand has been issued shall be 
made available for inspection and copying at the principal place of 
business of the person or at such other place or in such other manner as 
the person and the custodian designated pursuant to Sec. 2.16 agree.
    (b) Civil investigative demands. Civil investigative demands shall 
be the only form of compulsory process issued in investigations with 
respect to unfair or deceptive acts or practices within the meaning of 
FTC Act section 5(a)(1).
    (1) Civil investigative demands for the production of documentary 
material shall describe each class of material to be produced with such 
definiteness and certainty as to permit such material to be fairly 
identified, prescribe a return date or dates which will provide a 
reasonable period of time within which the material so demanded may be 
assembled and made available for inspection and copying or reproduction, 
and identify the custodian to whom such material shall be made 
available. Production of documentary material in response to a civil 
investigative demand shall be made in accordance with the procedures 
prescribed by section 20(c)(11) of the Federal Trade Commission Act.
    (2) Civil investigative demands for tangible things will describe 
each class of tangible things to be produced with such definiteness and 
certainty as to permit such things to be fairly identified, prescribe a 
return date or dates which will provide a reasonable period of time 
within which the things so demanded may be assembled and submitted, and 
identify the custodian to whom such things shall be submitted. 
Submission of tangible things in response to a civil investigative 
demand shall be made in accordance with the procedures prescribed by 
section 20(c)(12) of the Federal Trade Commission Act.
    (3) Civil investigative demands for written reports or answers to 
questions shall propound with definiteness and certainty the reports to 
be produced or the questions to be answered, prescribe a date or dates 
at which time written reports or answers to questions shall be 
submitted, and identify the custodian to whom such reports or answers 
shall be submitted. Response to a civil investigative demand for a 
written report or answers to questions shall be made in accordance with 
the procedures prescribed by section 20(c)(13) of the Federal Trade 
Commission Act.
    (4) Civil investigative demands for the giving of oral testimony 
shall prescribe a date, time, and place at which oral testimony shall be 
commenced, and identify a Commission investigator who shall conduct the 
investigation and the custodian to whom the transcript of such 
investigation shall be submitted. Oral testimony in response to a civil 
investigative demand shall be taken in accordance with the procedures 
prescribed by section 20(c)(14) of the Federal Trade Commission Act.
    (c) The Bureau Director, Deputy Directors and Assistant Directors of 
the Bureaus of Competition and Economics, the Director, Deputy Directors 
and Associate Directors of the Bureau of Consumer Protection, Regional 
Directors, and Assistant Regional Directors, are authorized to negotiate 
and approve the terms of satisfactory compliance with subpoenas and 
civil investigative demands and, for good cause shown, may extend the 
time prescribed for compliance. Specifically, the subpoena power 
conferred by Section 329 of the Energy Policy and Conservation Act (42 
U.S.C. 6299) is included within this delegation.
    (d) Petitions to limit or quash--(1) General. Any petition to limit 
or quash any investigational subpoena or civil investigative demand 
shall be filed with the Secretary of the Commission within twenty (20) 
days after service of the subpoena or civil investigative demand, or, if 
the return date is less than twenty (20) days after service, prior to 
the return date. Such petition shall set forth all assertions of 
privilege or other factual and legal objections to the subpoena or civil 
investigative demand, including all appropriate arguments, affidavits 
and other supporting documentation.
    (2) Statement. Each petition shall be accompanied by a signed 
statement

[[Page 35]]

representing that counsel for the petitioner has conferred with counsel 
for the Commission in an effort in good faith to resolve by agreement 
the issues raised by the petition and has been unable to reach such an 
agreement. If some of the matters in controversy have been resolved by 
agreement, the statement shall specify the matters so resolved and the 
matters remaining unresolved. The statement shall recite the date, time, 
and place of each such conference between counsel, and the names of all 
parties participating in each such conference.
    (3) Extensions of time. Bureau Directors, Deputy Directors, and 
Assistant Directors in the Bureaus of Competition and Economics, the 
Bureau Director, Deputy Directors and Associate Directors in the Bureau 
of Consumer Protection, Regional Directors and Assistant Regional 
Directors are delegated, without power of redelegation, the authority to 
rule upon requests for extensions of time within which to file such 
petitions.
    (4) Disposition. A Commissioner, to be designated by the Chairman, 
is delegated, without power of redelegation, the authority to rule upon 
petitions to limit or quash an investigational subpoena or civil 
investigative demand, but the designated Commissioner may, in his or her 
sole discretion, refer a petition to the full Commission for 
determination.
    (e) Stay of compliance period. The timely filing of a petition to 
limit or quash any investigational subpoena or civil investigative 
demand shall stay the time permitted for compliance with the portion 
challenged. If the petition is denied in whole or in part, the ruling 
will specify a new return date.
    (f) Review. Any petitioner, within three days after service of a 
ruling by the designated Commissioner denying all or a portion of the 
relief requested in its petition, may file with the Secretary of the 
Commission a request that the full Commission review the ruling. The 
timely filing of such a request shall not stay the return date specified 
in the ruling, unless otherwise specified by the Commission.
    (g) Public disclosure. All petitions to limit or quash 
investigational subpoenas or civil investigative demands and the 
responses thereto are part of the public records of the Commission, 
except for information exempt from disclosure under Sec. 4.10(a) of this 
chapter.

[45 FR 36342, May 29, 1980, as amended at 46 FR 26290, May 12, 1981; 48 
FR 41375, Sept. 15, 1983; 49 FR 6089, Feb. 17, 1984; 50 FR 42672, Oct. 
22, 1985; 60 FR 37747, July 21, 1995]

Sec. 2.8  Investigational hearings.

    (a) Investigational hearings, as distinguished from hearings in 
adjudicative proceedings, may be conducted in the course of any 
investigation undertaken by the Commission, including rulemaking 
proceedings under subpart B of part 1 of this chapter, inquiries 
initiated for the purpose of determining whether or not a respondent is 
complying with an order of the Commission or the manner in which decrees 
in suits brought by the United States under the antitrust laws are being 
carried out, the development of facts in cases referred by the courts to 
the Commission as a master in chancery, and investigations made under 
section 5 of the Export Trade Act.
    (b) Investigational hearings shall be conducted by any Commission 
member, examiner, attorney, investigator, or other person duly 
designated under the FTC Act, for the purpose of hearing the testimony 
of witnesses and receiving documents and other data relating to any 
subject under investigation. Such hearings shall be stenographically 
reported and a transcript thereof shall be made a part of the record of 
the investigation.
    (c) Unless otherwise ordered by the Commission, investigational 
hearings shall not be public. In investigational hearings conducted 
pursuant to a civil investigative demand for the giving of oral 
testimony, the Commission investigators shall exclude from the hearing 
room all other persons except the person being examined, his counsel, 
the officer before whom the testimony is to be taken, and the 
stenographer recording such testimony. A copy of the transcript shall 
promptly be forwarded by the Commission investigator to the custodian 
designated in Sec. 2.16.

[32 FR 8446, June 13, 1967, as amended at 45 FR 36342, May 29, 1980; 61 
FR 50645, Sept. 26, 1996]

[[Page 36]]

Sec. 2.8A  Withholding requested material.

    (a) Any person withholding material responsive to an investigational 
subpoena or civil investigative demand issued pursuant to Sec. 2.7, an 
access order issued pursuant to Sec. 2.11, an order to file a report 
issued pursuant to Sec. 2.12, or any other request for production of 
material issued under this part, shall assert a claim of privilege or 
any similar claim not later than the date set for the production of 
material. Such person shall, if so directed in the subpoena, civil 
investigative demand or other request for production, submit, together 
with such claim, a schedule of the items withheld which states 
individually as to each such item the type, specific subject matter, and 
date of the item; the names, addresses, positions, and organizations of 
all authors and recipients of the item; and the specific grounds for 
claiming that the item is privileged.
    (b) A person withholding material solely for reasons described in 
Sec. 2.8A(a) shall comply with the requirements of that subsection in 
lieu of filing a motion to limit or quash compulsory process.

(Sec. 5, 38 Stat. 719 as amended (15 U.S.C. 45))

[44 FR 54042, Sept. 18, 1979, as amended at 45 FR 36342, May 29, 1980]

Sec. 2.9  Rights of witnesses in investigations.

    (a) Any person compelled to submit data to the Commission or to 
testify in an investigational hearing shall be entitled to retain a copy 
or, on payment of lawfully prescribed costs, procure a copy of any 
document submitted by him and of his own testimony as stenographically 
reported, except that in a nonpublic hearing the witness may for good 
cause be limited to inspection of the official transcript of his 
testimony. Where the investigational hearing has been conducted pursuant 
to a civil investigative demand issued under section 20 of the Federal 
Trade Commission Act, upon completion of transcription of the testimony 
of the witness, the witness shall be offered an opportunity to read the 
transcript of his testimony. Any changes in form or substance which the 
witness desires to make shall be entered and identified upon the 
transcript by the Commission investigator with a statement of the 
reasons given by the witness for making such changes. The transcript 
shall then be signed by the witness unless the witnesss cannot be found, 
is ill, waives in writing his right to signature or refuses to sign. If 
the transcript is not signed by the witness within thirty days of his 
being afforded a reasonable opportunity to review it, the Commission 
investigator shall take the actions prescribed by section 
20(c)(12)(E)(ii) of the Federal Trade Commission Act.
    (b) Any witness compelled to appear in person in an investigational 
hearing may be accompanied, represented, and advised by counsel as 
follows:
    (1) Counsel for a witness may advise the witness, in confidence and 
upon the initiative of either counsel or the witness, with respect to 
any question asked of the witness. If the witness refuses to answer a 
question, then counsel may briefly state on the record if he has advised 
the witness not to answer the question and the legal grounds for such 
refusal.
    (2) Where it is claimed that the testimony or other evidence sought 
from a witness is outside the scope of the investigation, or that the 
witness is privileged to refuse to answer a question or to produce other 
evidence, the witness or counsel for the witness may object on the 
record to the question or requirement and may state briefly and 
precisely the ground therefor. The witness and his counsel shall not 
otherwise object to or refuse to answer any question, and they shall not 
otherwise interrupt the oral examination.
    (3) Any objections made under the rules in this part will be treated 
as continuing objections and preserved throughout the further course of 
the hearing without the necessity for repeating them as to any similar 
line of inquiry. Cumulative objections are unnecessary. Repetition of 
the grounds for any objection will not be allowed.
    (4) Counsel for a witness may not, for any purpose or to any extent 
not allowed by paragraphs (b) (1) and (2) of this section, interrupt the 
examination of the witness by making any objections or statements on the 
record. Petitions challenging the Commission's authority to conduct the 
investigation

[[Page 37]]

or the sufficiency or legality of the subpoena or civil investigative 
demand must have been addressed to the Commission in advance of the 
hearing. Copies of such petitions may be filed as part of the record of 
the investigation with the person conducting the investigational 
hearing, but no arguments in support thereof will be allowed at the 
hearing.
    (5) Following completion of the examination of a witness, counsel 
for the witness may on the record request the person conducting the 
investigational hearing to permit the witness of clarify any of his or 
her answers. The grant or denial of such request shall be within the 
sole discretion of the person conducting the hearing.
    (6) The person conducting the hearing shall take all necessary 
action to regulate the course of the hearing to avoid delay and to 
prevent or restrain disorderly, dilatory, obstructionist, or 
contumacious conduct, or contemptuous language. Such person shall, for 
reasons stated on the record, immediately report to the Commission any 
instances where an attorney has allegedly refused to comply with his or 
her directions, or has allegedly engaged in disorderly, dilatory, 
obstructionist, or contumacious conduct, or contemptuous language in the 
course of the hearing. The Commission, acting pursuant to Sec. 4.1(e) of 
this chapter, will thereupon take such further action, if any, as the 
circumstances warrant, including suspension or disbarment of the 
attorney from further practice before the Commission or exclusion from 
further participation in the particular investigation.

(18 U.S.C. 6002, 6004)

[32 FR 8446, June 13, 1967, as amended at 45 FR 36343, May 29, 1980; 45 
FR 39244, June 10, 1980; 46 FR 26290, May 12, 1981; 50 FR 53304, Dec. 
31, 1985; 61 FR 50645, Sept. 26, 1996]

Sec. 2.10  Depositions.

    In investigations other than those conducted under section 20 of the 
Federal Trade Commission Act, the Commission may order testimony to be 
taken by deposition at any stage of such investigation. Such depositions 
may be taken before any person having power to administer oaths who may 
be designated by the Commission. The testimony shall be reduced to 
writing by the person taking the deposition, or under his direction, and 
shall then be subscribed to by the deponent. Any person may be compelled 
to appear and be deposed and to produce documentary evidence in the same 
manner as witnesses may be compelled to appear and testify and produce 
documentary evidence as provided in Secs. 2.7 through 2.9.

[45 FR 36343, May 29, 1980, as amended at 50 FR 53304, Dec. 31, 1985]

Sec. 2.11  Orders requiring access.

    (a) In investigations other than those conducted under section 20 of 
the Federal Trade Commission Act, the Commission may issue an order 
requiring any person, partnership or corporation being investigated to 
grant access to files for the purpose of examination and the right to 
copy any documentary evidence. The Directors, Deputy Directors and 
Assistant Directors of the Bureaus of Competition and Economics, the 
Director, Deputy Directors and Associate Directors of the Bureau of 
Consumer Protection, the Regional Directors, and Assistant Regional 
Directors of the Commission's regional offices, pursuant to delegation 
of authority by the Commission, without power of redelegation, are 
authorized, for good cause shown, to extend the time prescribed for 
compliance with orders requiring access issued during the investigation 
of any matter.
    (b) Any petition to limit or quash an order requiring access shall 
be filed with the Secretary of the Commission within twenty (20) days 
after service of the order, or, if the date for compliance is less than 
twenty (20) days after service of the order, then before the return 
date. Such petition shall set forth all assertions of privilege or other 
factual and legal objections to the order requiring access, including 
all appropriate arguments, affidavits and other supporting 
documentation. All petitions to limit or quash orders requiring access 
shall be ruled upon by the Commission itself, but the above-designated 
Directors, Deputy Directors, Assistant Directors, Associate Directors, 
Regional Directors and Assistant

[[Page 38]]

Regional Directors are delegated, without power of redelegation, the 
authority to rule upon motions for extensions of time within which to 
file petitions to limit or quash orders requiring access.
    (c) The timely filing of any petition to limit or quash such an 
order shall stay the requirement of compliance if the Commission has not 
ruled upon the motion by the date of compliance. If it rules on or 
subsequent to the date required for compliance and its ruling denies the 
petition in whole or in part, the Commission shall specify a new date of 
compliance.
    (d) All petitions to limit or quash orders requiring access, and the 
Commission's responses thereto, are part of the public records of the 
Commission, except for information exempt from disclosure under 
Sec. 4.10(a) of this chapter.

[46 FR 26290, May 12, 1981, as amended at 48 FR 41375, Sept. 15, 1983]

Sec. 2.12  Reports.

    (a) In investigations other than those covered by section 20 of the 
Federal Trade Commission Act the Commission may issue an order requiring 
a person, partnership, or corporation to file a report or answers in 
writing to specific questions relating to any matter under 
investigation, study or survey, or under any of the Commission's 
reporting programs.
    (b) The Directors, Deputy Directors and Assistant Directors of the 
Bureaus of Competition and Economics, the Director, Deputy Directors and 
Associate Directors of the Bureau of Consumer Protection, and the 
Regional Directors and Assistant Regional Directors of the Commission's 
regional offices, pursuant to delegation of authority by the Commission, 
without power of redelegation, are authorized, for good cause shown, to 
extend the time prescribed for compliance with orders requiring reports 
or answers to questions issued during the investigation, study or survey 
of any matter or in connection with any of the Commission's reporting 
programs.
    (c) Any petition to limit or quash an order requiring a report or 
answer to specific questions shall be filed with the Secretary of the 
Commission within twenty (20) days after service of the order, or, if 
the date for compliance is less than twenty (20) days after service of 
the order, then before the return date. Such petition shall set forth 
all assertions of privilege or other factual and legal objections to the 
order requiring a report or answer to specific questions, including all 
appropriate arguments, affidavits and other supporting documentation. 
All petitions to limit or quash orders requiring reports or answers to 
questions shall be ruled upon by the Commission itself, but the above-
designated Directors, Deputy Directors, Assistant Directors, Associate 
Directors, Regional Directors and Assistant Regional Directors are 
delegated, without power of redelegation, the authority to rule upon 
motions for extensions of time within which to file petitions to limit 
or quash orders requiring reports or answers to questions.
    (d) Except as otherwise provided by the Commission, the timely 
filing of any petition to limit or quash such an order shall stay the 
requirement of return on the portion challenged if the Commission has 
not ruled upon the petition by the return date. If it rules on or 
subsequent to the return date and its ruling denies the petition in 
whole or in part, the Commission shall specify a new return date.
    (e) All petitions to limit or quash orders requiring a report or 
answers to specific questions, and the Commission's responses thereto, 
are part of the public records of the Commission, except for information 
exempt from disclosure under Sec. 4.10(a) of this chapter.

[41 FR 54485, Dec. 14, 1976, as amended at 45 FR 36343, May 29, 1980; 46 
FR 26290, May 12, 1981; 48 FR 41375, Sept. 15, 1983; 50 FR 53304, Dec. 
31, 1985]

Sec. 2.13  Noncompliance with compulsory processes.

    (a) In cases of failure to comply with Commission compulsory 
processes, appropriate action may be initiated by the Commission or the 
Attorney General, including actions for enforcement, forfeiture, or 
penalties or criminal actions.
    (b) The General Counsel, pursuant to delegation of authority by the 
Commission, without power of redelegation, is authorized:

[[Page 39]]

    (1) To institute, on behalf of the Commission, an enforcement 
proceeding in connection with the failure or refusal of a person, 
partnership, or corporation to comply with, or to obey, a subpoena, or 
civil investigative demand if the return date or any extension thereof 
has passed;
    (2) To approve and have prepared and issued, in the name of the 
Commission when deemed appropriate by the General Counsel, a notice of 
default in connection with the failure of a person, partnership, or 
corporation to timely file a report pursuant to section 6(b) of the 
Federal Trade Commission Act, if the return date or any extension 
thereof has passed;
    (3) To institute, on behalf of the Commission, an enforcement 
proceeding and to request, on behalf of the Commission, the institution, 
when deemed appropriate by the General Counsel, of a civil action in 
connection with the failure of a person, partnership, or corporation to 
timely file a report pursuant to an order under section 6(b) of the 
Federal Trade Commission Act, if the return date or any extension 
thereof has passed; and
    (4) To seek civil contempt in cases where a court order enforcing 
compulsory process has been violated.

[41 FR 54485, Dec. 14, 1976, as amended at 45 FR 39244, June 10, 1980; 
50 FR 53304, Dec. 31, 1985]

Sec. 2.14  Disposition.

    (a) When the facts disclosed by an investigation indicate that 
corrective action is warranted, and the matter is not subject to a 
consent settlement pursuant to subpart C of this part, further 
proceedings may be instituted pursuant to the provisions of part 3 of 
this chapter.
    (b) When the facts disclosed by an investigation indicate that 
corrective action is not necessary or warranted in the public interest, 
the investigational file will be closed. The matter may be further 
investigated at any time if circumstances so warrant.
    (c) The Commission has delegated to the Director, Deputy Directors, 
and Assistant Directors of the Bureau of Competition, the Director, 
Deputy Directors and Associate Directors of the Bureau of Consumer 
Protection, and Regional Directors, without power of redelegation, 
limited authority to close investigations.

[32 FR 8446, June 13, 1967, as amended at 42 FR 42195, Aug. 22, 1977; 48 
FR 41375, Sept. 15, 1983; 50 FR 53304, Dec. 31, 1985]

Sec. 2.15  Orders requiring witnesses to testify or provide other 
          information and granting immunity.

    (a) The Bureau Director, Deputy Directors, and Assistant Directors 
in the Bureaus of Competition and Economics, the Bureau Director, Deputy 
Directors and Associate Directors of the Bureau of Consumer Protection, 
Regional Directors and Assistant Regional Directors are hereby 
authorized to request, through the Commission's liaison officer, 
approval from the Attorney General for the issuance of an order 
requiring a witness to testify or provide other information granting 
immunity under title 18, section 6002, of the United States Code.
    (b) The Commission retains the right to review the exercise of any 
of the functions delegated under paragraph (a) of this section. Appeals 
to the Commission from an order requiring a witness to testify or 
provide other information will be entertained by the Commission only 
upon a showing that a substantial question is involved, the 
determination of which is essential to serve the interests of justice. 
Such appeals shall be made on the record and shall be in the form of a 
brief not to exceed fifteen (15) pages in length and shall be filed 
within five (5) days after notice of the complained of action. The 
appeal shall not operate to suspend the hearing unless otherwise 
determined by the person conducting the hearing or ordered by the 
Commission.

(18 U.S.C. 6002, 6004)

[37 FR 5016, Mar. 9, 1972, as amended at 48 FR 41375, Sept. 15, 1983; 61 
FR 50645, Sept. 26, 1996]

Sec. 2.16  Custodians.

    (a) Designation. The Commission shall designate a custodian and one 
or more deputy custodians for material to be delivered pursuant to 
compulsory process in a investigation, a purpose of which is to 
determine whether any person may have violated any provision of

[[Page 40]]

the laws administered by the Commission. The custodian shall have the 
powers and duties prescribed by section 21 of the FTC Act. Deputy 
custodians may perform all of the duties assigned to custodians. The 
appropriate Bureau Directors, Deputy Directors, Associate Directors in 
the Bureau of Consumer Protection, Assistant Directors in the Bureau of 
Competition, Regional Directors or Assistant Regional Directors shall 
take the action required by section 21(b)(7) of the FTC Act if it is 
necessary to replace a custodian or deputy custodian.
    (b) Copying of custodial documents. The custodian designated 
pursuant to section 21 of the Federal Trade Commission Act (subject to 
the general supervision of the Executive Director) may, from among the 
material submitted, select the material the copying of which is 
necessary or appropriate for the official use of the Commission, and 
shall determine, the number of copies of any such material that are to 
be reproduced. Copies of material in the physical possession of the 
custodian may be reproduced by or under the authority of an employee of 
the Commission designated by the custodian.
    (c) Material produced pursuant to the Federal Trade Commission Act, 
while in the custody of the custodian, shall be for the official use of 
the Commission in accordance with the Act; but such material shall upon 
reasonable notice to the custodian be made available for examination by 
the person who produced such material, or his duly authorized 
representative, during regular office hours established for the 
Commission.

[45 FR 36343, May 29, 1980, as amended at 46 FR 26291, May 12, 1981; 48 
FR 41376, Sept. 15, 1983; 50 FR 53305, Dec. 31, 1985]
