Federal Trade Commission Act of 1979

(Measure indefinitely postponed in Senate, H. R. 2313 passed in lieu)

Federal Trade Commission Act of 1979 - Requires the Federal Trade Commission to reopen any cease and desist order if the person, partnership, or corporation subject to that order files a request with the Commission stating with particularity the changed conditions that require the order to be modified or set aside.

Prohibits the Commission from disclosing, except for certain law enforcement purposes: (1) any confidential commercial or financial information obtained by the Commission; or (2) any information which can be used to identify the line-of-business data furnished by a particular organization. Prohibits examination of such line-of-business data by anyone other than an officer designated by the Commission. States that such data shall be used only for statistical purposes.

Requires the Commission: (1) by October 31, 1981, to reduce by 25 percent the number of small businesses in the categories of manufacturing, mining, and retail and wholesale operations which are required to participate in the Quarterly Financial Report Program; and (2) in consultation with small businesses, to establish a simplified filing form for use in the Program.

Exempts the business of insurance from investigative and reporting power of the Commission except those powers relating specifically to investigations of antitrust violations. Allows the Commission to participate with the Department of Health, Education, and Welfare in a comprehensive study of the effectiveness of various State approaches to the regulation of health insurance policies sold to persons who are eligible for Medicare.

Eliminates criminal sanctions under current Federal law for persons failing to comply with a subpoena or lawful requirement of the Commission. Makes such sanctions applicable to persons not complying with a judicial order enforcing such subpoena or requirement.

Eliminates the Commission's authority to prescribe industry-wide rules defining unfair acts or practices with respect to commercial advertising. Authorizes the Commission to promulgate rules which define false or deceptive commercial advertising in or affecting commerce.

Prohibits the Commission from developing or promulgating any trade rule or regulation governing the development and utilization of standards and certification activities.

Requires the Commission: (1) to issue a notice of proposed rulemaking only when the proposed rule concerns unfair or deceptive acts or practices or false and deceptive advertising acts which the agency determines to be "prevalent" according to specified guidelines; (2) to submit such notice to specified committees of Congress 30 days before its publication; and (3) to publish an advance notice of proposed rulemaking, prior to the notice of proposed rulemaking currently required, to describe regulatory objects and solicit public comment.

Declares that the officer presiding over an informal rulemaking proceeding of the Commission; (1) shall be responsible to a chief presiding officer who shall not be responsible to any other staff member; and (2) shall not make ex parte communications without providing notice and an opportunity for the participation of all parties.

Revises the limits on the amount of compensation an individual or individuals may be paid by the Commission for the costs of participating in rulemaking proceedings. Requires that 25 percent of the total amount available for such compensation in a fiscal year be set aside for compensation to individuals who would be regulated by the proposed rule. Directs the Commission to establish a small business outreach program to solicit statements from small outreach program to solicit statements from small businesses which would not be represented at such a proceeding, and to disseminate information on the procedures for applying for such participation compensation.

Directs the Commission to prescribe rules: (1) authorizing the Commission or any Commissioner to meet with an outside party concerning any rulemaking proceeding or any preliminary investigation to such a proceeding; and (2) prohibiting Commission employees with investigative or other responsibility for such a proceeding from communicating to a Commissioner or a Commissioner's personal staff any fact which is not on the rulemaking record, unless the communication is made available to the public and included in the rulemaking record.

Establishes standards governing the Commission's subpoena power and power to require information by general or special order in regard to investigations concerning unfair or deceptive acts or practices or false and deceptive advertising acts or practices. Authorizes the Commission to issue a civil investigative demand to require a person who the Commission believes has information relevant to such an investigation to produce or make available such information or to answer questions concerning such information orally or in writing. Requires that such demand: (1) identify the conduct constituting the alleged violation and the provision of law violated; (2) identify the specific material or information requested or, with respect to demand for oral testimony, the investigator conducting the investigation (3) prescribe the dates for submission of the information or testimony; and (4) identify the custodian for such information.

Sets forth provisions governing service of such a demand. Requires any information supplied pursuant to such a demand to be supplied under oath. Specifies the procedure governing the receipt of oral testimony and the rights of any person compelled to testify pursuant to such a demand. Authorizes the Commission to file a petition for a court order to enforce a demand with the U.S. district court of appropriate jurisdiction. Authorizes a person receiving such a demand to petition the Commission for an order modifying or setting aside the demand.

Stipulates that a subpoena or civil investigative demand has no authority unless signed by a Commissioner acting pursuant to a Commission resolution.

Directs the Commission to designate an agent to serve as custodian of all information received pursuant to a demand or subpoena. Sets forth provisions concerning the management of such information and other confidential information obtained by or supplied to the Commission.

Exempts from disclosure under the Freedom of Information Act material provided pursuant to a special or general order of the Commission.

Directs the Commission to publish, at least semiannually, and to submit to specified committees of Congress a regulatory agenda containing a list of rules the Commission intends to propose or promulgate and the dates of any regulatory actions planned for the next year.

Requires the Commission, for each proposed rule as defined in this Act, to publish a preliminary regulatory analysis which describes the need for the rule, the reasonable alternative approaches for accomplishing the regulatory objective, and the projected benefits and adverse economic effects of the proposed rule and alternatives. Requires the Commission to publish for each final rule a final regulatory analysis which includes (1) a justification of the selection of the final rule, and (2) a summary of the agency's assessment of the significant issues raised by the public comments received on the preliminary analysis. Directs each agency to include in the notice of each proposed and final rule, instructions on how the public may obtain copies of such analyses. Declares that such analyses shall be available for judicial review only as part of the whole record in connection with a court's review of a rule as provided under the Federal Trade Commission Act.

Directs the Commission to transmit a copy of each proposed and final rule to specified committees of Congress simultaneously upon forwarding the rule to the Federal Register for publication. Prohibits a rule from becoming effective: (1) before the expiration of 20 days of continuous session of Congress after the rule is published; and (2) before the expiration of 60 such days after such a committee has reported or has been discharged from further consideration of a joint resolution disapproving the rule, unless (A) either House rejects such a resolution prior to the expiration of such time periods, or (B) 30 days have expired since the rule was published and Congress has adjourned sine die at the end of the second session of Congress. Permits a rule to be exempted from such requirements if the Commission notifies such committees of its determination that the rule is being promulgated in response to circumstances requiring immediate action.

Entitles a prevailing party of limited net worth to be awarded fees and expenses incurred by such party in: (1) an administrative adjudication conducted by the Commission; or (2) any civil action brought by or against the Commission, unless the Commission, or the court having jurisdiction of action, finds that the position of the Commission is substantially justified or that special circumstances make an award unjust. Allows the agency or the court to reduce any such award to the extend that the prevailing party unduly and unreasonably protracted the final resolution of the matter in controversy. Authorizes a party dissatisfied with such award in an administrative adjudication to petition for leave to appeal the decision in an appropriate Federal court.

Authorizes appropriations for the Commission for fiscal years 1980 and 1981.

Requires the Consumer Subcommittee of the Senate Committee on Commerce, Science, and Transportation to hold oversight hearings on the Commission at least once every six months through fiscal year 1981.

Prohibits the Commission from prescribing a rule which requires a mandatory warranty in connection with the sale of a used motor vehicle.

Prohibits the Commission from taking any enforcement action against any party who allegedly violates a law while acting in good faith in compliance with a rule, regulation, interpretation, or approval of an agency which has rulemaking authority under such law. Requires any such agency to respond as soon as practicable to any request for an official interpretation on a practice of a party.