Appendix C. Federal Trade Commission Act

• Pages: 497-504

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APPENDIX C

FEDERAL TRADE COMMISSION ACT

Section 5

(a) (1) Unfair methods of competition in or affecting commerce, and

unfair or deceptive acts or practices in or affecting commerce, are hereby

declared unlawful.

(2) The Commission is hereby empowered and directed to prevent

persons, partnerships, or corporations, except banks, savings and loan

institutions described in section 57a(f)(3) of this title, Federal credit

unions described in section 57a(f)(4) of this title, common carriers

subject to the Acts to regulate commerce, air carriers and foreign air

carriers subject to part A of subtitle VII of title 49, and persons,

partnerships, or corporations insofar as they are subject to the Packers

and Stockyards Act, 1921, as amended [7 U.S.C. 181 et seq.], except as

provided in section 406(b) of said Act [7 U.S.C. 227(b)], from using

unfair methods of competition in or affecting commerce and unfair or

deceptive acts or practices in or affecting commerce.

(3) This subsection shall not apply to unfair methods of competition

involving commerce with foreign nations (other than import commerce)

unless—

(A) such methods of competition have a direct, substantial, and

reasonably foreseeable effect—

(i) on commerce which is not commerce with foreign nations, or

on import commerce with foreign nations; or

(ii) on export commerce with foreign nations, of a person

engaged in such commerce in the United States; and

(B) such effect gives rise to a claim under the provisions of this

subsection, other than this paragraph.

If this subsection applies to such methods of competition only because of

the operation of subparagraph (A)(ii), this subsection shall apply to such

conduct only for injury to export business in the United States.

(b) Whenever the Commission shall have reason to believe that any such

person, partnership, or corporation has been or is using any unfair