
[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 43-45]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 2--NONADJUDICATIVE PROCEDURES--Table of Contents
 
Subpart D--Reports of Compliance

Sec. 2.41  Reports of compliance.

    (a) In every proceeding in which the Commission has issued an order 
pursuant to the provisions of section 5 of the Federal Trade Commission 
Act or section 11 of the Clayton Act, as amended, and except as 
otherwise specifically provided in any such order, each respondent named 
in such order shall file with the Commission, within sixty (60) days 
after service thereof, or within such other time as may be provided by 
the order or the rules in this chapter, a report in writing, signed by 
the respondent, setting forth in detail the manner and form of his 
compliance with the order, and shall thereafter file with the Commission 
such further signed, written reports of compliance as it may require. An 
original and one copy of each such report shall be filed with the 
Secretary of the Commission, and one copy of each such report shall be 
filed with the Associate Director for Enforcement in the Bureau of 
Consumer Protection (for consumer protection orders) or with the 
Assistant Director for Compliance in the Bureau of Competition (for 
competition orders). Reports of compliance shall be under oath if so 
requested. Where the order prohibits the use of a false advertisement of 
a food, drug, device, or cosmetic which may be injurious to health 
because of results from its use under the conditions prescribed in the 
advertisement, or under such conditions as are customary or usual, or if 
the use of such advertisement is with intent to defraud or mislead, or 
in any other case where the circumstances so warrant, the order may 
provide for an interim report stating whether and how respondents intend 
to comply to be filed within ten (10) days after service of the order. 
Neither the filing of an application for stay pursuant to Sec. 3.56, nor 
the filing of a petition for judicial review, shall operate to postpone 
the time for filing a compliance report under the order or this section. 
If the Commission, or a court, determines to grant a stay of an order, 
or portion thereof, pending judicial review, or if any order provision 
is automatically stayed by statute, no compliance report shall be due as 
to those portions of the order that are stayed unless ordered by the 
court. Thereafter, as to orders, or portions thereof, that are stayed, 
the time for filing a report of compliance shall begin to run de novo 
from the final judicial determination, except that if no petition for 
certiorari has been filed following affirmance of the order of the 
Commission by a court of appeals, the compliance report shall be due the 
day following the date on which the time expires for the filing of such 
petition. Staff of the Bureaus of Competition and Consumer Protection 
will review such reports of compliance and may advise each respondent 
whether the staff intends to recommend that the Commission take any 
enforcement action. The Commission may, however, institute proceedings, 
including certification of facts to the Attorney General pursuant to the 
provisions of section 5(l) of the Federal Trade Commission Act (15 
U.S.C. 45(l)) and section 11(1) of the Clayton Act, as amended (15 
U.S.C. 21(1)), to enforce compliance with an order, without advising a 
respondent

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whether the actions set forth in a report of compliance evidence 
compliance with the Commission's order or without prior notice of any 
kind to a respondent.
    (b) The Commission has delegated to the Director, the Deputy 
Directors, and the Assistant Director for Compliance of the Bureau of 
Competition, and to the Director, the Deputy Directors, and the 
Associate Director for Enforcement of the Bureau of Consumer Protection 
the authority to monitor compliance reports and to open and close 
compliance investigations. With respect to any compliance matter which 
has received previous Commission consideration as to compliance or in 
which the Commission or any Commissioner has expressed an interest, any 
matter proposed to be closed by reason of expense of investigation or 
testing, or any matter involving substantial questions as to the public 
interest, Commission policy or statutory construction, the Bureaus shall 
submit an analysis to the Commission regarding their intended actions.
    (c) The Commission has delegated to the Director, Deputy Directors, 
and Assistant Directors of the Bureau of Competition and to the 
Director, Deputy Directors, and Associate Directors of the Bureau of 
Consumer Protection, and to the Regional Directors, the authority, for 
good cause shown, to extend the time within which reports of compliance 
with orders to cease and desist may be filed. It is to be noted, 
however, that an extension of time within which a report of compliance 
may be filed, or the filing of a report which does not evidence full 
compliance with the order, does not in any circumstances suspend or 
relieve a respondent from his obligation under the law with respect to 
compliance with such order. An order of the Commission to cease and 
desist becomes final on the date and under the conditions provided in 
the Federal Trade Commission Act and the Clayton Act. Any person, 
partnership or corporation against which an order to cease and desist 
has been issued who is not in full compliance with such order on and 
after the date provided in these statutes for the order to become final 
is in violation of such order and is subject to an immediate action for 
civil penalties. The authority under this paragraph may not be 
redelegated, except that the Associate Director for Enforcement in the 
Bureau of Consumer Protection and the Assistant Director for Compliance 
in the Bureau of Competition may each name a designee under this 
paragraph.
    (d) Any respondent subject to a Commission order may request advice 
from the Commission as to whether a proposed course of action, if 
pursued by it, will constitute compliance with such order. The request 
for advice should be submitted in writing to the Secretary of the 
Commission and should include full and complete information regarding 
the proposed course of action. On the basis of the facts submitted, as 
well as other information available to the Commission, the Commission 
will inform the respondent whether or not the proposed course of action, 
if pursued, would constitute compliance with its order. A request 
ordinarily will be considered inappropriate for such advice:
    (1) Where the course of action is already being followed by the 
requesting party;
    (2) Where the same or substantially the same course of action is 
under investigation or is or has been the subject of a current 
proceeding, order, or decree initiated or obtained by the Commission or 
another governmental agency; or
    (3) Where the proposed course of action or its effects may be such 
that an informed decision thereon cannot be made or could be made only 
after extensive investigation, clinical study, testing or collateral 
inquiry.

Furthermore, the filing of a request for advice under this paragraph 
does not in any circumstances suspend or relieve a respondent from his 
obligation under the law with respect to his compliance with the order. 
He must in any event be in full compliance on and after the date the 
order becomes final as prescribed by statute referred to in paragraph 
(b) of this section. Advice to respondents under this paragraph will be 
published by the Commission in the same manner and subject to the same 
restrictions and considerations as advisory opinions under Sec. 1.4 of 
this chapter.

[[Page 45]]

    (e) The Commission may at any time reconsider any advice given under 
this section and, where the public interest requires, rescind or revoke 
its prior advice. In such event the respondent will be given notice of 
the Commission's intent to revoke or rescind and will be given an 
opportunity to submit its views to the Commission. The Commission will 
not proceed against a respondent for violation of an order with respect 
to any action which was taken in good faith reliance upon the 
Commission's advice under this section, where all 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 advice.
    (f)(1) All applications for approval of proposed divestitures, 
acquisitions, or similar transactions subject to Commission review under 
outstanding orders shall fully describe the terms of the transaction and 
shall set forth why the transaction merits Commission approval. Such 
applications will be placed on the public record, together with any 
additional applicant submissions that the Commission directs be placed 
on the public record. The Director of the Bureau of Competition is 
delegated the authority to direct such placement.
    (2) The Commission will receive public comment on a prior approval 
application for 30 days. During the comment period, any person may file 
formal written objections or comments with the Secretary of the 
Commission, and such objections or comments shall be placed on the 
public record. In appropriate cases, the Commission may shorten, 
eliminate, extend, or reopen a comment period.
    (3) Responses to applications under this section, together with a 
statement of supporting reasons, will be published when made, together 
with responses to any public comments filed under this section.
    (4) Persons submitting information that is subject to public record 
disclosure under this section may request confidential treatment for 
that information or portions thereof in accordance with Sec. 4.9(c) and 
the General Counsel or the General Counsel's designee will dispose of 
such requests in accordance with that section. Nothing in this section 
requires that confidentiality requests be resolved prior to, or 
contemporaneously with, the disposition of the application.

[32 FR 8449, June 13, 1967]

    Editorial Note: For Federal Register citations affecting Sec. 2.41, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and on GPO Access.
