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DOCUMNENT RES 1NE
07045 - [B24274771
(The Federal Trade Commission's Injunctive Authority].
HRD-78-161; B-180229. August 24, 1978. 8 pp.
Report to Michael Pertschuke Chairman, Federal Trade Commission;
by Philip A. Bernstein (for Gregory J. Ahart, Director, Human
Resources Div.).
Issue Area: Consumer and Worker Protection: Consomers Protection
frem Unfair or Deceptive Trade Practices, Advrtising, and
Warranties (913).
Contact: Human Resources Div.
Budget Functi, : Commerce and Transportation: Other Advancement
and Begulacion of Commerce (403).
Congressional Relevance: House Committee on Interstate and
Foreign Commerce; Senate Committee on Cconerce, Science, and
Transportation.
Aut ority: Federal Trade C(aission Act (15 U.S.C. 53).
Trans-Alaska Pipeline authorization Act $R.L. 93-153).
Rokinson-Patman Act (15 U.S.C. 13). Clayten Act (15 g.S.C.
19).
The Congress granted the Federal Trade Cormissioa (FTC)
injunctive authority to enable it to quickly stop violation if
the laws it administers. The FTC adopted no formal policies for
use of its injunctive authority under secticn 13(a) of the
Federal Trade Commission Act, but in 1974 it adopted the
following policies for use of sectior 13(b) of the act: (1)
challenged practices should be inseelately and clearly harmful;
and (2) application should not raiae novel issues of law or
remedy. The FTC also adopted the following guidelines: the
clearer the violation, the less the need to demonstratq the
public injury, and vice versa; avoid cases where private actions
will be taken; and avoid cases where issuance cf a complaint has
historically stopped the practice. From November 16, 1973, to
June 30, 1978, the FTC issued complaints in 171 cases and filed
for injunctioas 21 times--3 times pursuant to section 11(a), 17
tines pursuant to section 13(b), and onco, pursuant to both
secticns. Interviews with staff members revealed that they did
not generally know what the policy was for using the injunctive
authority, what the guidelines were for selecting injunction
cases, or what legal standards were applicable under the
ivjunctive authority. Although injunctions are not appropriate
for every case, there have been cases where use cf the authority
say have better protected consumers or maintained competition.
The FTC should clarify and restate its policy on seeking
injunctions and direct that every staff memorandum recommending
that a copleint be issued contain a discussion cn whether an
injunction should be sought. (BBS)](ViewImageLocal?handle=hein.gao/gaobaaxwi0001&div=1&collection=&method=preview&ext=.png&size=3)