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Manual of Federal Trade Commission Practice (No. 21-4th)

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Corporate Practice Series Portfolio No. 21-4th, Manual of Federal Trade Commission Practice, examines in detail the practices and procedures employed by the Federal Trade Commission in administering the Federal Trade Commission Act. The analysis outlines the missions and structure of the Commission and describes its functions. The description of Commission functions includes a discussion of the issuance of advisory opinions, industry guides, and statements of enforcement policy. It goes on to describe the rulemaking process for trade regulation rules. It next describes the process of enjoining conduct that may be deceptive or that may constitute unfair competition, including the premerger Hart-Scott-Rodino process, the decision to start an investigation, the means used to conduct an investigation, cooperation with other agencies and state and foreign governments, the decision whether to issue a complaint, injunctive proceedings, consent orders, cease-and-desist orders, and appeals to the Commission. The Commission's remedial and compliance functions are also examined.

 

Portfolio 21-4th: Manual of Federal Trade Commission Practice

Portfolio 21-5th: Manual of Federal Trade Commission Practice


I. Missions and Structure of the Federal Trade Commission 
    A. Vision and Missions 
    B. Structure of the Commission 
        1. The commissioners 
        2. The staff 
            a. Enforcement bureaus 
                (1). Bureau of Competition 
                (2). Bureau of Consumer Protection 
            b. Regional offices 
            c. Support bureaus 
            d. Staff contacts with non-involved persons 
        C. Laws Administered by the Commission

I. Missions and Structure of the Federal Trade Commission
   A. Vision and Missions
   B. Structure of the Commission
       1. The commissioners
       2. The staff
           a. Enforcement bureaus
              (1). Bureau of Competition
              (2). Bureau of Consumer Protection
           b. Supporting bureaus and offices
           c. Regional offices
           d. Staff contacts with non-involved persons
   C. Laws Administered by the Commission

II. Functions of the Commission 
    . Introductory Material 
    A. Enforcement 
        1. Merger enforcement—Bureau of Competition 
            a. Hart-Scott-Rodino Act 
                (1). ‘Second requests' 
                (2). Penalties 
                (3). Failure to file for reportable transactions 
                (4). Confidentiality 
            b. Horizontal Merger Guidelines 
                (1). Market definition and concentration 
                    (a). Market definition 
                    (b). Market concentration 
                (2). Potential adverse effects 
                (3). Entry 
                (4). Efficiencies 
                (5). Failure and exiting assets 
        2. Non-merger antitrust enforcement—Bureau of Competition 
            a. Statements of antitrust enforcement policy in health care 
            b. Antitrust Enforcement Guidelines for International Operations 
            c. Antitrust Guidelines for the Licensing of Intellectual Property 
                (1). Innovation or technology markets 
                    (a). Technology markets 
                    (b). Innovation markets 
                (2). Safety zone 
            d. Antitrust Guidelines for Collaborations among Competitors 
        3. Consumer protection enforcement—Bureau of Consumer Protection 
        4. Investigations 
            a. The decision to start an investigation 
                (1). Initial phase investigation 
                (2). Full investigations 
            b. How an investigation is conducted 
                (1). Informal investigations 
                (2). Formal investigations 
                    (a). Tools of discovery 
                        (i). Civil investigative demand 
                        (ii). Subpoena 
                        (iii). Investigational hearing 
                        (iv). 6(b) order 
                        (v). Order requiring access 
                        (vi). Judicial review of discovery 
                (3). Cooperation with other agencies, the states and foreign governments 
                    (a). International Antitrust Enforcement Assistance Act of 1994 
                    (b). US Safe Web Act 
                    (c). Protocol with NAAG 
        5. Consent decrees 
            a. Deciding whether to consent 
            b. Negotiating a consent order 
            c. Acceptance of a consent order 
        6. Preliminary injunction proceedings 
        7. Administrative complaint proceedings 
            a. Pre-trial proceedings 
            b. Trial of the complaint 
            c. Initial decision 
            d. Appeal to the Commission 
            e. Scope of the order 
            f. Finalization, enforcement, and reopening of orders 
        8. Compliance 
            a. Compliance by respondent 
            b. Compliance by non-respondents with trade regulation rules and cease and desist orders against others 
    B. Policy, Research, and Educational Function 
        1. Advisory opinions 
        2. Industry guides 
        3. Advocacy filings 
        4. Research, reports, workshops and conferences 
        5. Speeches, testimony and press reports 
        6. Consumer Web sites 
    C. Rulemaking 
        1. Rulemaking authority 
        2. Rulemaking procedures 
            a. Proposed rule 
            b. Issuance/non-issuance of rule 
        3. Commission review of rules 
        4. Judicial review

II. Functions of the Commission
    . Introductory Material
    A. Enforcement
        1. Merger enforcement—Bureau of Competition
            a. Hart-Scott-Rodino Act
               (1). Second requests
               (2). Penalties
               (3). Failure to file for reportable transactions
               (4). Confidentiality
            b. Horizontal Merger Guidelines
               (1). Evidence of adverse competitive effects
               (2). Targeted customers and price discrimination
               (3). Market definition and concentration
                     (a). Market definition
                     (b). Market participants, market shares, and market concentration
               (4). Potential adverse effects
               (5). Powerful buyers
               (6). Entry
               (7). Efficiencies
               (8). Failure and exiting assets
               (9). Mergers of competing buyers
             (10). Partial acquisitions
        2. Non-merger antitrust enforcement—Bureau of Competition
            a. Statements of antitrust enforcement policy in health care
            b. Antitrust Enforcement Guidelines for International Operations
            c. Antitrust Guidelines for the Licensing of Intellectual Property
              (1). Technology or innovation markets
                    (a). Technology markets
                    (b). Innovation markets
              (2). Safety zone
            d. Antitrust Guidelines for Collaborations Among Competitors
        3. Consumer protection enforcement—Bureau of Consumer Protection
        4. Investigations
            a. The decision to start an investigation
              (1). Initial phase investigation
              (2). Full investigations
            b. How an investigation is conducted
              (1). Informal investigations
              (2). Formal investigations
                    (a). Tools of discovery
                          (i). Civil investigative demand
                          (ii). Subpoena
                          (iii). Investigational hearing
                          (iv). 6(b) order
                          (v). Order requiring access
                          (vi). Judicial review of discovery
              (3). Cooperation with other agencies, the states, and foreign governments
                   (a). International Antitrust Enforcement Assistance Act of 1994
                   (b). US Safe Web Act
                   (c). Protocol with NAAG
        5. Consent decrees
            a. Deciding whether to consent
            b. Negotiating a consent order
            c. Acceptance of a consent order
        6. Preliminary injunction proceedings
        7. Administrative complaint proceedings
            a. Pre-trial proceedings
            b. Trial of the complaint
            c. Initial decision
            d. Appeal to the Commission
            e. Scope of the order
            f. Finalization, enforcement, and reopening of orders
        8. Compliance
            a. Compliance by respondent
            b. Compliance by non-respondents with trade regulation rules and cease and desist orders against others
    B. Policy, Research, and Educational Function
        1. Advisory opinions
        2. Industry guides
        3. Advocacy filings
        4. Research, reports, workshops, and conferences
        5. Speeches, testimony, and press reports
        6. Consumer websites
    C. Rulemaking
        1. Rulemaking authority
        2. Rulemaking procedures
            a. Proposed rule
            b. Issuance/non-issuance of rule
        3. Commission review of rules
        4. Judicial review

Portfolio 21-4th: Manual of Federal Trade Commission Practice

 
Wks. 1 Federal Trade Commission Act, 15 U.S.C. §§41–58

Wks. 2 Procedures and Rules of Practice of the Federal Trade Commission, 16 C.F.R. §§1.1–1.99

Wks. 3 International Antitrust Enforcement Assistance Act of 1994, 15 U.S.C. §§6201–6212

Wks. 4 Guides for Advertising Allowances and Other Merchandising, Payments, and Services, 16 C.F.R. §§240.1–240.15

Wks. 5 Guide I: What is the Premerger Notification Program? (Jan. 2002)

Wks. 6 Guide II: To File or Not to File—When You Must File a Premerger Notification Report Form (Oct. 2005)

Wks. 7 Guide III: Model Request for Additional Information and Documentary Material (Second Request) (Jan. 2002)

Wks. 8 Guide IV: The Most Frequently Asked H-S-R Questions *

Wks. 9 Overview of the Advisory Opinion Process at the Federal Trade Commission

Wks. 10 Procedures For Submitting Post-Consummation Filings

Wks. 11 FTC Protocol for Coordination in Merger Investigations Between the Federal Enforcement Agencies and State Attorneys General

Wks. 12 Model Second Requests for Additional Information and Documentary Material

Wks. 13 Statement of the Federal Trade Commission's Bureau of Competition on Negotiating Merger Remedies

Wks. 14 U.S. Department of Justice & Federal Trade Commission, Antitrust Guidelines for Collaborations Among Competitors (2000)

Wks. 15 U.S. Department of Justice & Federal Trade Commission, Horizontal Merger Guidelines (1992) (as amended Apr. 8, 1997)

Wks. 16 U.S. Department of Justice & Federal Trade Commission, Statements of Antitrust Enforcement Policy in Health Care (1996)

Wks. 17 U.S. Department of Justice & Federal Trade Commission, Antitrust Guidelines for the Licensing of Intellectual Property (1995)

Wks. 18 U.S. Department of Justice & Federal Trade Commission, Antitrust Enforcement Guidelines for International Operations (1995)

Wks. 19 Subpoena

Wks. 20 Motion to Quash a Subpoena

Wks. 21 Order Requiring the Filing of a Special Report

Wks. 22 Motion to Quash an Order Requiring the Filing of a Special Report

Wks. 23 Complaint

Wks. 24 Request for Opportunities for Oral Cross-Examination

Wks. 25 Initial Decision and Cease-and-Desist Order

Wks. 26 Final Order

Wks. 27 Checklist for Participation in a Rulemaking Proceeding

Peter K. Huston
Latham & Watkins LLP
San Francisco, California