john e valadezz

A. In General

The Commission may" prosecute any inquiry necessary to its duties in any part of the United States" (FTC Act Sec. 3, 15 U.S.C. Sec. 43) and may"gather and compile information concerning, and to investigate from time to time the organization, business, conduct, practices, and management of any person, partnership, or corporation engaged in or whose business affects commerce, excepting banks, savings and loan institutions * * * Federal credit unions * * * and common carriers * * *." (FTC Act Sec. 6(a), 15 U.S.C. Sec. 46(a)).⁽²⁾ Pre-complaint investigations are generally non-public and, thus, are not identified on this site. On occasion the existence of an investigation may be identified in a press release.⁽³⁾

B. Specific Investigative Powers

The Commission's specific investigative powers are defined in Sections 6, 9, and 20 of the FTC Act, 15 U.S.C. Secs. 46, 49, and 57b-1, which authorize investigations and various forms of compulsory process. In addition, the premerger notification provisions in Section 7A of the Clayton Act, 15 U.S.C. Sec. 18a, prohibit consummation of covered acquisitions until the requested information is provided, thus effectively enabling the Commission to obtain information regarding such acquisitions.

1. Sections 9 and 20 of the FTC Act

Section 9 of the FTC Act authorizes the Commission to "require by subpoena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation" (15 U.S.C. Sec. 49). Any member of the Commission may sign a subpoena, and both members and "examiners" (employees) of the agency may administer oaths, examine witnesses, and receive evidence (Id., 16 C.F.R. Sec. 2.5).

Under Commission Rule 2.7 (16 C.F.R. Sec. 2.7), a party may raise objections to a subpoena by filing a petition to limit or quash. Such petitions may be resolved by a designated Commissioner, and the designated Commissioner's ruling may thereafter be appealed to the full Commission.

If a party fails to comply with a subpoena (either without filing a petition to quash, or after a duly filed petition is denied), the Commission may seek enforcement of the subpoena in "[a]ny of the district courts of the United States within the jurisdiction of which such inquiry is carried on" (15 U.S.C. Sec. 49). After the Commission files its petition to enforce a subpoena, and following receipt of any response from the subpoena recipient, the court may enter an order requiring compliance. Refusal to comply with a court enforcement order is subject to penalties for contempt of court.

The subpoena provisions of Section 9 are used routinely by the Bureau of Competition to investigate alleged unfair methods of