Procedure and Practice; Miscellaneous

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BILLING CODE 4910-13-M FEDERAL TRADE COMMISSION 16 CFR Part 4 Procedure and Practice; Miscellaneous Rules AGENCY: Federal Trade Commission. ACTION: Final rule.

SUMMARY: The Commission amends § 4.10(g) of its Rules of Practice and Procedure. 16 CFR 4.10(g). This rule governs disclosure in administrative or judicial proceedings of material obtained by the Commission and it requires that notice be provided to the submitter prior to disclosure of such material. The Commission has determined that this notice requirement is broader than necessary to satisfy its statutory obligations and preserve the legitimate confidentiality interests of the submitter. The amended rule eliminates the notice requirement for material other than that specifically protected under sections 6(f) and 21 of the Federal Trade Commission Act, 15 U.S.C. 46(f), 57b-2. This amendment is intended to allow disclosure in administrative or judicial proceedings of publicly available or otherwise nonsensitive material that is not protected by statute without first notifying the submitter of such material. It will not affect the current parity of treatment accorded material submitted under compulsory process and material submitted voluntarily in lieu of compulsory process in response to informal access requests. Although this rule is effective immediately, the Commission invites comments. The Commission will review all comments received, and take whatever action, if any, it deems appropriate. DATES: Effective date: The rule is effective February 21,1989. Comment date: Comments will be received until March 23,1989. ADDRESS: Send comments to Federal Trade Commission, 6th Street and Pennsylvania Avenue, NW„ Room 159, Washington, DC 20850.

FOR FURTHER INFORMATION CONTACT: Marc Schneider, Office of the General Counsel, (202) 326-2062. SUPPLEMENTARY INFORMATION: The current rule provides that any material obtained by the Commission, including transcripts of oral testimony, may not be disclosed in Commission adjudicative or in court proceedings unless the submitter is first given an opportunity to obtain a protective or in camera order. This notice requirement is broader than necessary to comply with the statutory requirements of sections 6(f) and 21 of the Federal Trade Commission Act, 15 U.S.C. 46(f), 57b-2. The Act protects only certain types of information— specifically, material that is: (1) Obtained through compulsory process or voluntarily in lieu thereof (see sections 21 (b) and (f), 15 U.S.C. 57b-2 fb) and (f), and Rule 4.10(d)); (2) designated by the submitter as confidential (see section 21(c)(1), 15 U.S.C. 57b-2(c)(l), and Rule 4.10(e)); or (3) confidential commercial or financial information (see section 6(f), 15 U.S.C. 46(f), and Rule 4.10(a)(2)). The amendment limits the prior notice requirement of Rule 4.10(g) to material subject to the protections of sections 6(f) or 21. Under the amended rule, prior notice is no longer required when the material to be disclosed has not been designated as confidential, has not been submitted under compulsory process or voluntarily in lieu of compulsory process, and is not confidential commercial or financial information. The amended rule will prevent any unnecessary costs and delays caused by the prior notice requirement in the current rule.

List of Subjects in 16 CFR Part 4 Administrative practice and procedure, Nonpublic information. 16 CFR Part 4 is amended as follows: PART 4—MISCELLANEOUS RULES 1. The authority for Part 4 continues to read as follows:

Authority: Sec. 6, 38 Stat. 721 (15 U.S.C. 46). 2. Section 4.10(g) is revised to read as follows:

§ 4.10 Nonpublic information. ★ ★ * ★ 4t (g) Material (including transcripts of oral testimony) obtained by the Commission:

(1) Through compulsory process or voluntarily in lieu thereof, and protected by sections 21 (b) and (f) of the Federal Trade Commission Act, 15 U.S.C. 57b-2 (b), (f), and 4.10(d) of this part; or (2) That is designated by the submitter as confidential, and protected by section 21(c) of the Federal Trade Commission A ct 15 U.S.C. 57b-2(c), and § 4.10(e) of this part; or (3) That is confidential commercial or financial information protected by section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and § 4.10(a)(2) of this part, may be disclosed in Commission administrative or court proceedings subject to Commission or court protective or in camera orders as appropriate. See §§ 1.18(b) and 3.45.

Prior to disclosure of such material or transcripts in a proceeding, the submitter will be afforded an opportunity to seek an appropriate protective or in camera order. All other material obtained by the Commission may be disclosed in Commission administrative or court proceedings at

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Federal Register / Vol. 54, No. 33 / Tuesday, February 21, 1989 / Rules and Regulations the discretion of the Commission except where prohibited by law.

★ * * * * By direction of the Commission. Donald S. Clark, Secretary.

[FR Doc. 89-3768 Filed 2-17-69; 8:45 am]