
[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 41-43]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 2--NONADJUDICATIVE PROCEDURES--Table of Contents
 
Subpart C--Consent Order Procedure

Sec. 2.31  Opportunity to submit a proposed consent order.

    (a) Where time, the nature of the proceeding, and the public 
interest permit, any individual, partnership, or corporation being 
investigated shall be afforded the opportunity to submit through the 
operating Bureau or Regional Office having responsibility in the matter 
a proposal for disposition of the matter in the form of a consent order 
agreement executed by the party being investigated and complying with 
the requirements of Sec. 2.32, for consideration by the Commission in 
connection with a proposed complaint submitted by the Commission's 
staff.
    (b) After a complaint has been issued, the consent order procedure 
described in this part will not be available except as provided in 
Sec. 3.25(b).

[40 FR 15235, Apr. 4, 1975]

Sec. 2.32  Agreement.

    Every agreement in settlement of a Commission complaint shall 
contain, in addition to an appropriate proposed order, either an 
admission of the proposed findings of fact and conclusions of law 
submitted simultaneously by the Commission's staff or an admission of 
all jurisdictional facts and an express waiver of the requirement that 
the Commission's decision contain a statement of findings of fact and 
conclusions of law. Every agreement also shall waive further procedural 
steps and all rights to seek judicial review or otherwise to challenge 
or contest the validity of the order. In addition, where appropriate, 
every agreement in settlement of a Commission complaint

[[Page 42]]

challenging the lawfulness of a proposed merger or acquisition shall 
also contain a hold-separate or asset-maintenance order. The agreement 
may state that the signing thereof is for settlement purposes only and 
does not constitute an admission by any party that the law has been 
violated as alleged in the complaint. Every agreement shall provide 
that:
    (a) The complaint may be used in construing the terms of the order;
    (b) No agreement, understanding, representation, or interpretation 
not contained in the order or the aforementioned agreement may be used 
to vary or to contradict the terms of the order;
    (c) The order will have the same force and effect and may be 
altered, modified or set aside in the same manner provided by statute 
for Commission orders issued on a litigated or stipulated record;
    (d) Except as provided by order of the Commission, any order issued 
pursuant to the agreement will become final upon service;
    (e) The agreement will not become a part of the public record unless 
and until it is accepted by the Commission; and
    (f) If the Commission accepts the agreement, further proceedings 
will be governed by Sec. 2.34.

[64 FR 46268, Aug. 25, 1999]

Sec. 2.33  Compliance procedure.

    The Commission may in its discretion require that a proposed 
agreement containing an order to cease and desist be accompanied by an 
initial report signed by the respondent setting forth in precise detail 
the manner in which the respondent will comply with the order when and 
if entered. Such report will not become part of the public record unless 
and until the accompanying agreement and order are accepted by the 
Commission. At the time any such report is submitted a respondent may 
request confidentiality for any portion thereof with a precise showing 
of justification therefor as set out in Sec. 4.9(c) and the General 
Counsel or the General Counsel's designee will dispose of such requests 
in accordance with that section.

[63 FR 32977, June 17, 1998]

Sec. 2.34  Disposition.

    (a) Acceptance of proposed consent agreement. The Commission may 
accept or refuse to accept a proposed consent agreement. Except as 
otherwise provided in paragraph (c) of this section, acceptance does not 
constitute final approval, but it serves as the basis for further 
actions leading to final disposition of the matter.
    (b) Effectiveness of hold-separate or asset-maintenance order. 
Following acceptance of a consent agreement, the Commission will, if it 
deems a hold-separate or asset-maintenance order appropriate, issue a 
complaint and such an order as agreed to by the parties. Such order will 
be final upon service. The issuance of a complaint under this paragraph 
will neither commence an adjudicatory proceeding subject to part 3 of 
this chapter nor subject the consent agreement proceeding to the 
prohibitions specified in Sec. 4.7 of this chapter.
    (c) Public comment. Promptly after its acceptance of the consent 
agreement, the Commission will place the order contained in the consent 
agreement, the complaint, and the consent agreement on the public record 
for a period of 30 days, or such other period as the Commission may 
specify, for the receipt of comments or views from any interested 
person. At the same time, the Commission will place on the public record 
an explanation of the provisions of the order and the relief to be 
obtained thereby and any other information that it believes may help 
interested persons understand the order. The Commission also will 
publish the explanation in the Federal Register. The Commission retains 
the discretion to issue a complaint and a Final Decision and Order, 
incorporating the order contained in a consent agreement, in appropriate 
cases before seeking public comment. Unless directed otherwise by the 
Commission, such Decision and Order will be final upon service.
    (d) Comment on initial compliance report. If respondents have filed 
an initial report of compliance pursuant to Sec. 2.33, the Commission 
will place that report on the public record, except for portions, if 
any, granted confidential treatment pursuant to Sec. 4.9(c) of this

[[Page 43]]

chapter, with the complaint, the order, and the consent agreement.
    (e) Action following comment period. (1) Following the comment 
period, on the basis of comments received or otherwise, the Commission 
may either withdraw its acceptance of the agreement and so notify 
respondents, in which event it will take such other action as it may 
consider appropriate, or issue and serve its complaint in such form as 
the circumstances may require and its decision in disposition of the 
proceeding.
    (2) The Commission, following the comment period, may determine, on 
the basis of the comments or otherwise, that a Final Decision and Order 
that was issued in advance of the comment period should be modified. 
Absent agreement by respondents to the modifications, the Commission may 
initiate a proceeding to reopen and modify the decision and order in 
accordance with Sec. 3.72(b) of this chapter or commence a new 
administrative proceeding by issuing a complaint in accordance with 
Sec. 3.11 of this chapter.

[64 FR 46269, Aug. 25, 1999]
