
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC41]

 
                      TITLE 15--COMMERCE AND TRADE
 
   CHAPTER 2--FEDERAL TRADE COMMISSION; PROMOTION OF EXPORT TRADE AND 
               PREVENTION OF UNFAIR METHODS OF COMPETITION
 
                 SUBCHAPTER I--FEDERAL TRADE COMMISSION
 
Sec. 41. Federal Trade Commission established; membership; 
        vacancies; seal
        
    A commission is created and established, to be known as the Federal 
Trade Commission (hereinafter referred to as the Commission), which 
shall be composed of five Commissioners, who shall be appointed by the 
President, by and with the advice and consent of the Senate. Not more 
than three of the Commissioners shall be members of the same political 
party. The first Commissioners appointed shall continue in office for 
terms of three, four, five, six, and seven years, respectively, from 
September 26, 1914, the term of each to be designated by the President, 
but their successors shall be appointed for terms of seven years, except 
that any person chosen to fill a vacancy shall be appointed only for the 
unexpired term of the Commissioner whom he shall succeed: Provided, 
however, That upon the expiration of his term of office a Commissioner 
shall continue to serve until his successor shall have been appointed 
and shall have qualified. The President shall choose a chairman from the 
Commission's membership. No Commissioner shall engage in any other 
business, vocation, or employment. Any Commissioner may be removed by 
the President for inefficiency, neglect of duty, or malfeasance in 
office. A vacancy in the Commission shall not impair the right of the 
remaining Commissioners to exercise all the powers of the Commission.
    The Commission shall have an official seal, which shall be 
judicially noticed.

(Sept. 26, 1914, ch. 311, Sec. 1, 38 Stat. 717; Mar. 21, 1938, ch. 49, 
Sec. 1, 52 Stat. 111; 1950 Reorg. Plan No. 8, Sec. 3, eff. May 24, 1950, 
15 F.R. 3175, 64 Stat. 1265.)


                               Amendments

    1938--Act Mar. 21, 1938, inserted proviso clause to third sentence.

                          Transfer of Functions

    Executive and administrative functions of Federal Trade Commission, 
with certain reservations, transferred to Chairman of such Commission by 
Reorg. Plan No. 8 of 1950, set out below.
    Functions of Federal Trade Commission (1) under Flammable Fabrics 
Act [section 1191 et seq. of this title] and under this subchapter to 
extent that such functions relate to administration of Flammable Fabrics 
Act, and (2) under Act of August 2, 1956, [section 1211 et seq. of this 
title], transferred to Consumer Product Safety Commission by section 30 
of Act Oct. 27, 1972, Pub. L. 92-573 [section 2079 of this title].
    By section 3 of act Sept. 26, 1914, Bureau of Corporations abolished 
and all employees and functions of said Bureau transferred to Federal 
Trade Commission.


         Clarification of Status of Subsidiaries and Affiliates

    Pub. L. 106-102, title I, Sec. 133(a), (b), Nov. 12, 1999, 113 Stat. 
1383, provided that:
    ``(a) Clarification of Federal Trade Commission Jurisdiction.--Any 
person that directly or indirectly controls, is controlled directly or 
indirectly by, or is directly or indirectly under common control with, 
any bank or savings association (as such terms are defined in section 3 
of the Federal Deposit Insurance Act [12 U.S.C. 1813]) and is not itself 
a bank or savings association shall not be deemed to be a bank or 
savings association for purposes of any provisions applied by the 
Federal Trade Commission under the Federal Trade Commission Act [15 
U.S.C. 41 et seq.].
    ``(b) Savings Provision.--No provision of this section [amending 
section 18a of this title] shall be construed as restricting the 
authority of any Federal banking agency (as defined in section 3 of the 
Federal Deposit Insurance Act [12 U.S.C. 1813]) under any Federal 
banking law, including section 8 of the Federal Deposit Insurance Act 
[12 U.S.C. 1818].''

                REORGANIZATION PLAN NO. 8 OF 1950

         Eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264

Prepared by the President and transmitted to the Senate and the House of 
    Representatives in Congress assembled, March 13, 1950, pursuant to 
    the provisions of the Reorganization Act of 1949, approved June 20, 
    1949 [see 5 U.S.C. 901 et seq.].

                    FEDERAL TRADE COMMISSION


            Section 1. Transfer of Functions to the Chairman

    (a) Subject to the provisions of subsection (b) of this section, 
there are hereby transferred from the Federal Trade Commission, 
hereinafter referred to as the Commission, to the Chairman of the 
Commission, hereinafter referred to as the Chairman, the executive and 
administrative functions of the Commission, including functions of the 
Commission with respect to (1) the appointment and supervision of 
personnel employed under the Commission, (2) the distribution of 
business among such personnel and among administrative units of the 
Commission, and (3) the use and expenditure of funds.
    (b)(1) In carrying out any of his functions under the provisions of 
this section the Chairman shall be governed by general policies of the 
Commission and by such regulatory decisions, findings, and 
determinations as the Commission may by law be authorized to make.
    (2) The appointment by the Chairman of the heads of major 
administrative units under the Commission shall be subject to the 
approval of the Commission.
    (3) Personnel employed regularly and full time in the immediate 
offices of members of the Commission other than the Chairman shall not 
be affected by the provisions of this reorganization plan.
    (4) There are hereby reserved to the Commission its functions with 
respect to revising budget estimates and with respect to determining 
upon the distribution of appropriated funds according to major programs 
and purposes.


              Sec. 2. Performance of Transferred Functions

    The Chairman may from time to time make such provisions as he shall 
deem appropriate authorizing the performance by any officer, employee, 
or administrative unit under his jurisdiction of any function 
transferred to the Chairman by the provisions of this reorganization 
plan.


                     Sec. 3. Designation of Chairman

    The functions of the Commission with respect to choosing a Chairman 
from among the membership of the Commission are hereby transferred to 
the President.


                        Message of the President

To the Congress of the United States:
    I transmit herewith Reorganization Plan No. 8 of 1950, prepared in 
accordance with the Reorganization Act of 1949 and providing for 
reorganizations in the Federal Trade Commission. My reasons for 
transmitting this plan are stated in any accompanying general message.
    After investigation I have found and hereby declare that each 
reorganization included in Reorganization Plan No. 8 of 1950 is 
necessary to accomplish one or more of the purposes set forth in section 
2(a) of the Reorganization Act of 1949.
    The taking effect of the reorganizations included in this plan may 
not in itself result in substantial immediate savings. However, many 
benefits in improved operations are probable during the next years which 
will result in a reduction in expenditures as compared with those that 
would be otherwise necessary. An itemization of these reductions in 
advance of actual experience under this plan is not practicable.
                                                        Harry S. Truman.

                REORGANIZATION PLAN NO. 4 OF 1961

          Eff. July 9, 1961, 26 F.R. 6191, 75 Stat. 837

Prepared by the President and transmitted to the Senate and the House of 
    Representatives in Congress assembled, May 9, 1961, pursuant to the 
    provisions of the Reorganization Act of 1949, 63 Stat. 203, as 
    amended [see 5 U.S.C. 901 et seq.].

                    FEDERAL TRADE COMMISSION


                    Section 1. Authority To Delegate

    (a) In addition to its existing authority, the Federal Trade 
Commission, hereinafter referred to as the ``Commission'', shall have 
the authority to delegate, by published order or rule, any of its 
functions to a division of the Commission, an individual Commissioner, a 
hearing examiner, or an employee or employee board, including functions 
with respect to hearing, determining, ordering, certifying, reporting or 
otherwise acting as to any work, business, or matter; Provided, however, 
That nothing herein contained shall be deemed to supersede the 
provisions of section 7(a) of the Administrative Procedure Act (60 Stat. 
241), as amended [see 5 U.S.C. 556].
    (b) With respect to the delegation of any of its functions, as 
provided in subsection (a) of this section, the Commission shall retain 
a discretionary right to review the action of any such division of the 
Commission, individual Commissioner, hearing examiner, employee or 
employee board, upon its own initiative or upon petition of a party to 
or an intervenor in such action, within such time and in such manner as 
the Commission shall by rule prescribe: Provided, however, That the vote 
of a majority of the Commission less one member thereof shall be 
sufficient to bring any such action before the Commission for review.
    (c) Should the right to exercise such discretionary review be 
declined, or should no such review be sought within the time stated in 
the rules promulgated by the Commission, then the action of any such 
division of the Commission, individual Commissioner, hearing examiner, 
employee or employee board, shall, for all purposes, including appeal or 
review thereof, be deemed to be the action of the Commission.


              Sec. 2. Transfer of Functions to the Chairman

    In addition to the functions transferred by the provisions of 
Reorganization Plan No. 8 of 1950 (64 Stat. 1264) [set out as a note 
under this section], there are hereby transferred from the Commission to 
the Chairman of the Commission the functions of the Commission with 
respect to the assignment of Commission personnel, including 
Commissioners, to perform such functions as may have been delegated by 
the Commission to Commission personnel, including Commissioners, 
pursuant to section 1 of this reorganization plan.


                        Message of the President

To the Congress of the United States:
    I transmit herewith Reorganization Plan No. 4 of 1961, prepared in 
accordance with the Reorganization Act of 1949, as amended, and 
providing for reorganization in the Federal Trade Commission.
    This Reorganization Plan No. 4 of 1961 follows upon my message of 
April 13, 1961, to the Congress of the United States. It is believed 
that the taking effect of the reorganizations included in this plan will 
provide for greater efficiency in the dispatch of the business of the 
Federal Trade Commission.
    The plan provides for greater flexibility in the handling of the 
business before the Commission, permitting its disposition at different 
levels so as better to promote its efficient dispatch. Thus matters both 
of an adjudicatory and regulatory nature may, depending upon their 
importance and their complexity, be finally consummated by divisions of 
the Commission, individual Commissioners, hearing examiners, and, 
subject to the provisions of section 7(a) of the Administrative 
Procedure Act (60 Stat. 241), by other employees. This will relieve the 
Commissioners from the necessity of dealing with many matters of lesser 
importance and thus conserve their time for the consideration of major 
matters of policy and planning. There is, however, reserved to the 
Commission as a whole the right to review any such decision, report or 
certification either upon its own initiative or upon the petition of a 
party or intervenor demonstrating to the satisfaction of the Commission 
the desirability of having the matter reviewed at the top level.
    Provision is also made, in order to maintain the fundamental 
bipartisan concept explicit in the basic statute creating the 
Commission, for mandatory review of any such decision, report or 
certification upon the vote of a majority of the Commission less one 
member.
    Inasmuch as the assignment of delegated functions in particular 
cases and with reference to particular problems to divisions of the 
Commission, to Commissioners, to hearing examiners, to employees and 
boards of employees must require continuous and flexible handling, 
depending both upon the amount and nature of the business, that function 
is placed in the Chairman by section 2 of the plan.
    By providing sound organizational arrangements, the taking effect of 
the reorganizations included in the accompanying reorganization plan 
will make possible more economical and expeditious administration of the 
affected functions. It is, however, impracticable to itemize at this 
time the reductions of expenditures which it is probable will be brought 
about by such taking effect.
    After investigation, I have found and hereby declare that each 
reorganization included in the reorganization plan transmitted herewith 
is necessary to accomplish one or more of the purposes set forth in 
section 2(a) of the Reorganization Act of 1949, as amended.
    I recommend that the Congress allow the reorganization plan to 
become effective.
                                                        John F. Kennedy.
