NCJ Number
54184
Date Published
1977
Length
111 pages
Annotation
THE RESULTS OF A CONGRESSIONAL INVESTIGATION INTO ASPECTS OF FEDERAL TRADE COMMISSION (FTC) RULEMAKING AND REGULATORY ACTIVITIES ARE REPORTED.
Abstract
THE SUBCOMMITTEE ON COMMERCE, CONSUMER, AND MONETARY AFFAIRS OF THE U.S. HOUSE OF REPRESENTATIVES COMMITTEE ON GOVERNMENT OPERATIONS, WHICH HAS JURISDICTION OVER THE FTC, EXAMINED THE RULEMAKING PROCESS OF THE COMMISSION'S BUREAU OF CONSUMER PROTECTION, THE ADVERTISING REGULATORY ACTIVITIES OF THE BUREAU'S DIVISION OF NATIONAL ADVERTISING, AND CITIZEN ACCESS TO THE REGULATORY PROCESS. THE SUBCOMMITTEE'S REPORT FOCUSES ON DELAYS IN THE RULEMAKING PROCESS AND ON SHORTCOMINGS OF FTC ADVERTISING PROGRAMS AND CITIZEN PETITION PROCEDURES. THE SUBCOMMITTEE FOUND THAT, ALTHOUGH RULEMAKING IS POTENTIALLY THE FTC'S MOST VALUABLE TOOL IN DEALING WITH UNFAIR AND DECEPTIVE BUSINESS PRACTICES, THE RULEMAKING PROCESS IS CHARACTERIZED BY DELAY, POSTPONEMENT, AND EXTENSION AT EVERY STAGE. THE FTC ANNOUNCES MANY INVESTIGATIONS, PROPOSES RULES, AND HEARINGS ON RULES, BUT PRODUCES VERY FEW FINAL RULES. SOME OF THE DELAYS ARE CAUSED DELIBERATELY BY COMPANIES UNDER INVESTIGATION. OTHERS RESULT FROM INEFFICIENCIES WITHIN THE COMMISSION. THE SUBCOMMITTEE ALSO CONCLUDED THAT INSUFFICIENT RESOURCES AND PROGRAMMING ARE BEING DEVOTED TO ELIMINATING ADVERTISING ABUSES THROUGH AD SUBSTANTIATION, CORRECTIVE ADVERTISING, AND PRODUCT INFORMATION DISCLOSURE REQUIREMENTS, NATIONAL ADVERTISING LITIGATION, AND ADVERTISING REVIEW BOARD ACTIVITIES. THE INVESTIGATION ALSO POINTED TO INADEQUACIES IN THE FTC'S PROCEDURES FOR RESPONDING TO PETITIONS FILED BY CONSUMER GROUPS, PUBLIC INTEREST ADVOCATES, AND OTHERS CONCERNED WITH FTC RULEMAKING AND ADVERTISING REGULATORY ACTIVITIES. RECOMMENDATIONS FOR RESOLVING THE PROBLEMS IDENTIFIED IN THE INVESTIGATION ARE PRESENTED. SUPPORTING DOCUMENTATION IS APPENDED.