General Procedures, Miscellaneous Amendments

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15232 RULES AND REGULATIONS Title 16— Commercial Practices CHAPTER I— FEDERAL TRADE COMMISSION SUBCHAPTER A— PROCEDURES AND RULES OF PRACTICE PART 1— GENERAL PROCEDURES Miscellaneous Amendments The Commission announces the fol­ lowing rules, which are effective April 4, 1975, to implement the initial stages of trade regulation rule proceedings pur­ suant to the authority of Pub. L. 93-637. Under separate announcement these rules are supplemented by proposed rules further implementing that authority. Subpart B is redesignated as Subpart C and a new Subpart B is added. The amendments to redesignated Subpart Cf Rules and Rulemaking, are made to eliminate references to the Flammable - Fabrics Act and to reflect the promulga­ tion of the new Subpart B for trade reg­ ulation rules.

Part 1 of Title 16 is amended as set forth below.

1. Subpart B is redesignated as Sub­ part C and a new Subpart B is added to read as follows:

Subpart B— Rules and Rulemaking Under Section 18(a)(1)(B) of the FTC Act As Amended by Public Law' 93—637 Sec.

1.7 Scope o f rules in this subpart. 1.8 Nature, authority and use o f trade reg­ u lation rules.

1.9 Initiation o f a trade regulation rule proceeding.

1.10 Investigations and conferences. 1.11 Initial notice.

1.13 R ulem aking proceeding.

1.15 Petition for am endm ent to or repeal o f a rule.

1.16 Petition for exem ption from trade reg­ u lation rule.

Au th o r ity: Pub. L. 93-637. § 1.7 Scope of rules in this subpart. The rules in this subpart apply to and govern proceedings for the promulga­ tion of rules as provided in section 18(a) (1) (B) of the Federal Trade Commis­ sion Act as amended by Pub. L. 93-637 only. Such rules shall be known as trade regulation rules. All other rulemaking proceedings shall be governed by the rules in the remainder of this part. § 1.8 Nature, authority and use of trade regulation rules.

For the purpose of carrying out the provisions of the Federal Trade Com­ mission Act, the Commission is empow­ ered to promulgate trade regulation rules which define with specificity acts or prac­ tices which are unfair or deceptive acts or practices in or affecting commerce. Such rules may include requirements prescribed for the purpose of preventing such acts or practices. A violation of a ’ rule shall constitute an unfair or decep­ tive act or practice in violation of sec­ tion 5(a) (1) of that Act, unless the Com­ mission otherwise expressly provides in its rule. However, the respondent in an adjudicative proceeding may show that his conduct does not violate the rule, or assert any other defense to which he is legally entitled.

§ 1.9 Initiation of a trade regulation rule proceeding.

Trade regulation rule proceedings may be commenced by the Commission upon its own initiative or pursuant to written petition filed with the Secretary by any interested person stating reason­ able grounds therefor. If the Commission determines to commence a trade regu­ lation rule proceeding pursuant to the petition, the petitioner shall be mailed a copy of the public notices issued under §§ 1.11 and 1.12. Any person whose peti­ tion is not deemed by the Commission sufficient to warrant commencement of a rulemaking proceeding shall be notified of that determination and may be given an opportunity to submit additional data. § 1.10 Investigations and conferences. The Commission at any time may con­ duct such investigations, make such studies and hold such conferences as it may deem necessary. All or any part of any such investigation may be conducted under the provisions of Subpart A of Part 2 of this Chapter.

¿ y § 1 .1 1 Initial notice.

/ A trade regulation rule proceeding shall commence with an initial notice of T ’ * ‘ “ proposed rulemaking. Such notice sSajl regfrasiouows. amendments to or repeal of a rule shall be the same as for the issuance thereof. (b) Petition for nonsubstantive amend­ ment of a rule. When the Commission, for good cause, finds that notice and pub­ lic procedure relating to a petition for nonsubstantive amendment of a rule or such an amendment proposed by the Commission itself are impractical, un­ necessary, or contrary to the public in­ terest, it may dispense with the proce­ dures of this subpart and publish the nonsubstantive amendment of the rule along with the above finding and a brief statement of the reasons therefor. § 1.16 Petition for exemption from trade regulation rule.

Any person to whom a rule would otherwise apply may petition the Com­ mission for an exemption from such rule. The procedures for determining such a petitionjhafi-be^those of Subpart C of these^riiles.

. Subpart C— Rulesjand Rulemaking 7 2. Subpart C is ^designated as Sub­ part I, and a new-jStibpart C is redesignat­ ed from Subpgrt B; §§ 1.11 through 1.16 are redesigjaerted as §§ 1.21 through 1.26, and §§ >r2l, 1.22 and 1.24 are revised to be published in the Federal Register and, to the extent practicable, otherwise made available to interested persons. The ini­ tial notice shall include: (a) the terms or substance of the proposed rule or a description of the subjects and issues involved; (b) reference to the legal au­ thority under which the rule is proposed; (c) a statement describing with particu­ larity the reason for the rule; (d) an in­ vitation to all interested persons to pro­ pose disputed issues of specific fact, in contrast to legislative fact, that are ma­ terial and necessary to resolve; and (e) an invitation to all interested persons to comment on the proposed rule. § 1.13 Rulemaking proceeding.

(a) Written comments. After com­ mencement of a trade regulation rule proceeding, the Commission shall accept written submissions of data, views, and arguments on all issues of fact, law, and policy. Written comments other than under subsection (b) of this section shall be accepted until ten (10) days be­ fore commencement of the informal hearing.

(b) Comments proposing disputed is­ sues of specific fact, in contrast to legis­ lative fact, that are material and neces­ sary to resolve. Written comments which propose disputed issues of ‘specific fact, in contrast to legislative fact, that are material and necessary to resolve shall be accepted for a period of sixty (60) days after publication of the initial notice.

§ 1.15 Petition for amendment to or re­ peal of a rule.

(a) Petition for substantive amend­ ment to or repeal of a rule. The proce­ dures for petitions for substantive 1.21 Scope of the rules in this subpart. The rules in this subpart apply to and govern procedures for the promulgation of rules, including quantity limit rules, rules authorized under the Wool Prod­ ucts Labeling Act of 1939, the Fur Prod­ ucts Labeling Act, and the Textile Fiber, Products Identification Act, and rules under the Fair Packaging and Labeling Act except to the extent that objections to orders relating to the issuance, amend­ ment, or repeal of rules under the latter Act are required by statute to be deter­ mined on. the record after opportunity for an agency hearing. The rules in this subpart do not apply to the promulga­ tion of industry guides, general state­ ments of policy, or rules of agency orga­ nization, procedure, or practice, or rules governed by the procedures of Subpart B of this part., § 1.22 Rulemaking.

(a) Nature and authority.—For the purpose of carrying out the provisions of the statutes administered by it, the Com­ mission is empowered to promulgate rules and regulations applicable to unlawful trade practices. Such rules and regula­ tions express the experience and judg­ ment of the Commission, based on facts of which it has knowledge derived from studies, reports, investigations, hearings, and other proceedings, or within official notice, concerning the substantive re­ quirements of the statute^ which it ad­ ministers.

(b) Scope.—Rules may cover all ap­ plications of a particular statutory pro­ vision and may be nationwide in effect, or they may be limited to particular areas or industries or to particular product or geographic markets, as may be appropri­ ate.

(c) Use of rules in adjudicative pro­ ceedings.-—Where a rule is relevant to FEDERAL REGISTER, VOL. 40, NO. 66— FRIDAY, APRIL 4, 1975

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any issue involved in an adjudicative proceeding thereafter instituted, the Commission may rely upon the rule to resolve such issue, provided that the respondent shall have been given a fair hearing on the applicability of the rule to the particular case.

§ 1.24 Rules applicable to wool, fur, and textile fiber products and rules promulgated under the Fair Packag­ ing and Labeling Act.

Rules having the force and effect of law are authorized under section 6 of the Wool Products Labeling Act of 1939, sec­ tion 8 of the Pur Products Labeling Act, section 7 of the Textile Fiber Products IdentificationAetTandsfe^tions 4, 5, and 6 of the Pair Packaging] and Labeling Act.

y / J / Subpart J— Economic Surveys, / Investigations and Reports / Z f 3. Subpart J i&jredesignated from Sub­ part CJ^and § L21 is redesignated as § 1.91 of this subpairt.

(Sec. 6^S8 Stat. 721 (15 U.S.C. 46), Pub. L. No^ag-637, Sec. 202 (Jan. 4, 1975).) By direction of the Commission, dated March 11,1975.

[ seal] V irginia M . H arding, Acting Secretary.

[FR Doc.75-8489 Filed 4-2-75;8:45 am ]