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(c) Division of Compliance. This Division supervises and directs compliance by respondents with orders to cease and desist and, in the event of noncompliance, prepares complaints and assists in the trial of civil penalty suits in the various United States district courts.

(d) Division of Export Trade. This Division administers the WebbPomerene Export Trade Act.

SEC. 7. Bureau of Investigation. The legal investigational work of the Commission is centered in this Bureau. Investigations conducted by the Commission's branch offices are under the jurisdiction of the Director. Project Attorneys under the supervision of the Chief Project Attorney have responsibility for investigations from initial screening, through field investigation, to final disposition. The Director of the Bureau has responsibility also for the administration of the following divi

sions:

(a) Division of Wool, Fur, and Flammable Fabrics. This Division administers the Wool, Fur, and Flammable Fabrics Acts.

This

(b) Division of Accounting. Division performs accounting services in connection with the investigation and trial of cases, as well as in connection with general economic investigations. It prepares cost and price studies, and its staff members act as expert witnesses in proceedings arising under the Clayton Act and the Federal Trade Commission Act.

(c) Division of Scientific Opinions. This Division furnishes advice, information and assistance to the Commission's staff with respect to the composition, nature, effectiveness and safety of food, drugs, devices, cosmetics, and related commodities and conducts liaison with other Federal agencies, private institutions, laboratories, and hospitals in matters concerning such commodities.

SEC. 8. Bureau of Litigation. (a) As the prosecuting arm of the Commission, the Bureau of Litigation is responsible for the preparation and trial of all formal cases alleging violations of laws which the Commission enforces. The staff of the Bureau reviews and forwards to the Commission, with appropriate recommendations for action, all investigional files in cases in which the Bu

reau of Investigation has recommended issuance of a formal complaint. It handles all stages of litigation, from the initial preparation of a complaint, through pretrial procedures, settlement negotiations and the conduct of hearings before hearing examiners, to the briefing and argument of cases before the Commission.

(b) The staff of the Bureau also represents the public interest in quantity limit proceedings under section 2 (a) of the Clayton Act; conducts proceedings instituted under the Export Trade Act; and represents the Commission in the prosecution or defense of actions in United States District Courts, including injunctive proceedings under the Federal Trade Commission Act and injunctive and condemnation proceedings under the Wool Products Labeling Act, the Fur Products Labeling Act and the Flammable Fabrics Act. In addition, the staff of the Bureau cooperates with the General Counsel's Office in the briefing and argument of cases on appeal in United States Courts of Appeals and the Supreme Court.

SEC. 9. Bureau of Economics. The work of the Commission in the field of economics is centered in this Bureau. The Bureau consists of the following divisions:

(a) Division of Economic Evidence and Reports. This Division furnishes the economic information and advice required in the Commission's antimonopoly program and conducts general economic surveys and investigations.

(b) Division of Financial Statistics. This Division collects, summarizes and analyzes the financial statements made to the Commission by corporations and prepares therefrom quarterly reports on the financial position and operating results of the nation's manufacturing industries and distributive trades.

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Trade Practice Conference program of the Commission.

(c) Division of Stipulations. This Division represents the Commission in the negotiation of informal agreements to cease and desist.

SEC. 11. Hearing Examiners. Hearing Examiners are officials to whom the Commission delegates the initial exercise of its adjudicative powers. They are appointed to office by the Commission by authority of and subject to the prior approval of the Civil Service Commission in accordance with the provisions of Section Eleven of the Administrative Procedure Act. In the performance of their duties as adjudicative officers, Hearing Examiners are exempt from all direction, supervision or control except for administrative purposes.

SEC. 12. Legal Aides to the Commissioners. To each Commissioner there is assigned an attorney who functions as a Special Legal Aide.

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Policy as to private controversies.

Subpart D-Investigations

Investigational policy.
By whom conducted.

Notification of purpose.
Investigational hearings.
Investigational subpoenas.
Depositions.

Notices to grant access.
Reports.

Noncompliance with investigational
processes.

Rights of witnesses.

Nonpublic proceedings.

Referrals after investigation.

Subpart E-Stipulations to Cease and Desist

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Proceedings

Injunctions pending Commission ac

tion.

Injunctions pending court review.

Injunction, Wool, Fur and Flammable Fabrics cases.

Condemnation proceedings.

Subpart L-Cooperation With Other Agencies 1.121 General policy.

Subpart M-Public and Confidential Information

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Requests

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Public information.

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Confidential information.

Release of confidential information.

SUBPART A-THE COMMISSION

The Fed

$ 1.1 Origin and purpose. eral Trade Commission was established by Congress in 1914 to protect business and the public against unfair methods of competition and to prevent practices which would lessen competition or tend to create monopoly. The Commission is. in short, charged with the basic duty of protecting our competitive free-enterprise economy.

$ 1.2 Laws administered. The Federal Trade Commission exercises responsibilities under the Federal Trade Commission Act of 1914 (15 U. S. C. 41), as amended by the Wheeler-Lea Act of 1938 and the Oleomargarine Act of 1950: the Clayton Act of 1914 (15 U. S. C. 12), as amended by the Robinson-Patman Act of 1936 and the Anti-merger Act of 1950;

the Webb-Pomerene Export Trade Act of 1918 15 U. S. C. 61; the Wool Products Labeling Act of 1939 (15 U. S. C. 68; Public Law 15 of 1945 relating to the regulation of the business of Insurance (15 U. S. C. 1011); the Lanham Trade Mark Act of 1946 15 U. S. C. 1051); the Fur Products Labeling Act of 1951 (15 U. S. C. 69); and the Flammable Fabrics Act of 1953 (15 U. S. C. 1191).

$1.3 Functions. The Commission has extensive advisory and regulatory functions. The advisory functions are exercised by reports to the Congress and to the President and by recommendations for legislation, usually after general investigations and economic studies. The regulatory functions are exercised in two ways, informally through procedures designed to encourage voluntary compliance with the law and formally by adversary proceedings initiated by complaint and culminating, in appropriate instances, in orders to cease and desist. The Commission's duties and responsibilities are stated in the laws which it administers, and in general they are as follows:

(a) To prevent the use of unfair methods of competition, and unfair or deceptive acts or practices in interstate commerce, such as acts or practices which are unfair or oppressive or tend to monopoly: combinations which unreasonably restrain competition; and representations, express or implied, which have the capacity of misleading or deceiving members of the public with respect to commodities being offered for sale. all as prohibited by section 5 of the Federal Trade Commission Act:

(b) To prevent the dissemination of false advertisements of foods, drugs, cosmetics, and devices, as provided in sections 12 through 15 of the Federal Trade Commission Act:

cumstances of which these things are prohibited respectively by sections 2, 3, 7. and 3 of the layton Act as amended;

(d) To prevent the misbranding of wool or wool products through failure to comply with the provisions of the Wool Products Labeling Act of 1939;

(e) To prevent misbranding, false advertising, or false invoicing of furs or fur products through failure to comply with the Fur Products Labeling Act:

e To prevent discriminations in price. services, or facilities, including quantity discounts which are unjustly discriminatory or promotive of monopoly. by the establishment, when necessary. of quantity limits; payment or receipt of brokerage, commissions. or discounts in lieu thereof; the use of tying or exclusive dealing leases, sales, or contracts: the acquisition by one corporation of stock or assets of another, and continuance of interlocking directorates among corporations, all under the cir

(f) To prevent the introduction or mcvement in interstate commerce of articles of wearing apparel and fabrics which are so highly flammable as to be dangerous when worn by individuals, in violation of the Flammable Fabrics Act;

(g) To prevent unfair methods of competition and unfair or deceptive acts or practices in the business of insurance to the extent that such business is not regulated by State law, under the Federal Trade Commission Act and Public Law 15 of 1945 relating to the regulation of the business of insurance.

(h) To administer the provisions of the Export Trade Act, providing for the registration and operation of associations of American exporters engaging solely in export trade;

(i) To proceed for the cancellation of registration of trade marks which have been illegally registered or which have been used for purposes contrary to the intent of the Trade Mark Act of 1946:

(j) To investigate the organization, business, conduct, practices, or management of corporations and to make public reports thereon as the Commission deems expedient in the public interest; to investigate, at the direction of the President or the Congress, and report upon alleged violations of the antitrust laws by corporations: to make various other investigations and reports, including recommendations to Congress for legislation, and reports to the Attorney General, to the extent and in the manner provided in section 6 of the Federal Trade Commission Act.

$ 1.4 Official address. The principal office of the Commission is at Washington, D. C. All communications to the Commission should be addressed to the Federal Trade Commission, Washington 25, D. C., unless otherwise specifically directed.

(a) Branch of

$1.5 Branch offices. fices are maintained at Washington,

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