§1195 — Title 15 Commerce and Trade | U.S. Code

Summary

The Federal Trade Commission (the Commission) can go to a U.S. district court where a person lives or does business (or to the District Court of Guam or the Virgin Islands if the person is there) to stop someone from breaking the rules in section 1192 or rules made under section 1194(c). If the Commission shows a good reason, the court can issue a temporary injunction or restraining order without requiring a bond while the Commission’s complaint is handled or until a Commission cease-and-desist order becomes final or is overturned by a court. The Commission can also file a seizure case in any district where the illegal products, fabrics, or related materials are found to have them taken and kept. Those cases follow procedures like property-seizure (admiralty) cases, but either side can ask for a jury trial on factual issues. Courts can combine cases about the same items in different districts and must notify the other courts and send records to the court picked for trial. Before trial, a party or their lawyer can get a representative sample of seized items if they ask in time. If the court condemns the items, it may order them destroyed, returned to the owner if the owner pays court costs, fees, storage and other expenses and gives a bond promising the items will not be disposed of until properly treated or processed so they can legally be sold, or sold under a similar bond. Sale proceeds, after costs and charges, go to the U.S. Treasury.

Title 15, §1195

Commerce and Trade — Source: USLM XML via OLRC

(a)Whenever the Commission has reason to believe that any person is violating or is about to violate section 1192 of this title, or a rule or regulation prescribed under section 1194(c) of this title, and that it would be in the public interest to enjoin such violation until complaint under the Federal Trade Commission Act [15 U.S.C. 41 et seq.] is issued and dismissed by the Commission or until order to cease and desist made thereon by the Commission has become final within the meaning of the Federal Trade Commission Act or is set aside by the court on review, the Commission may bring suit in the district court of the United States for the district in which such person resides or transacts business, or, if such person resides or transacts business in Guam or the Virgin Islands, then in the District Court of Guam or in the District Court of the Virgin Islands (as the case may be), to enjoin such violation and upon proper showing a temporary injunction or restraining order shall be granted without bond.

(b)Whenever the Commission has reason to believe that any product has been manufactured or introduced into commerce or any fabric or related material has been introduced in commerce in violation of section 1192 of this title, it may institute proceedings by process of libel for the seizure and confiscation of such product, fabric, or related material in any district court of the United States within the jurisdiction of which such product, fabric, or related material is found. Proceedings in cases instituted under the authority of this section shall conform as nearly as may be to proceedings in rem in admiralty, except that on demand of either party and in the discretion of the court, any issue of fact shall be tried by jury. Whenever such proceedings involving identical products, fabrics, or related materials are pending in two or more jurisdictions, they may be consolidated for trial by order of any such court upon application seasonably made by any party in interest upon notice to all other parties in interest. Any court granting an order of consolidation shall cause prompt notification thereof to be given to other courts having jurisdiction in the cases covered thereby and the clerks of such other courts shall transmit all pertinent records and papers to the court designated for the trial of such consolidated proceedings.

(c)In any such action the court, upon application seasonably made before trial, shall by order allow any party in interest, his attorney or agent, to obtain a representative sample of the product, fabric, or related material seized.

(d)If such products, fabrics, or related materials are condemned by the court they shall be disposed of by destruction, by delivery to the owner or claimant thereof upon payment of court costs and fees and storage and other proper expenses and upon execution of good and sufficient bond to the effect that such products, fabrics, or related materials will not be disposed of until properly and adequately treated or processed so as to render them lawful for introduction into commerce, or by sale upon execution of good and sufficient bond to the effect that such products, fabrics, or related materials will not be disposed of until properly and adequately treated or processed so as to render them lawful for introduction into commerce. If such products, fabrics, or related materials are disposed of by sale the proceeds, less costs and charges, shall be paid into the Treasury of the United States.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Trade Commission Act, referred to in subsec. (a), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title and Tables.

Amendments

1967—Subsec. (a). Pub. L. 90–189, § 5(a), inserted “, or a rule or regulation prescribed under section 1194 (c) of this title,” after “section 1192 of this title” and substituted “for the district in which such person resides or transacts business, or, if such person resides or transacts business in Guam or the Virgin Islands, then in the District Court of Guam or in the District Court of the Virgin Islands (as the case may be)” for “or in the United States court of any Territory for the district or Territory in which such person resides or transacts business”. Subsec. (b). Pub. L. 90–189, § 5(b), substituted “product” for “article of wearing apparel”, “product, fabric, or related material” for “article of wearing apparel or fabric” in two places and “products, fabrics, or related materials” for “articles of wearing apparel or fabrics”, and inserted “or related material” before “has been introduced in commerce”. Subsec. (c). Pub. L. 90–189, § 5(b), substituted “product, fabric, or related material” for “article of wearing apparel or fabric”. Subsec. (d). Pub. L. 90–189, § 5(b), substituted “products, fabrics, or related materials” for “articles of wearing apparel or fabrics” wherever appearing and struck out “for wearing apparel purposes” before “until properly and adequately treated or processed” in two places.

Statutory Notes and Related Subsidiaries

Transfer of Functions

Functions of Secretary of Health, Education, and Welfare, Secretary of Commerce, and Federal Trade Commission under this chapter transferred to Consumer Product Safety Commission, along with functions of Federal Trade Commission under Federal Trade Commission Act, to extent such functions relate to administration and

Enforcement

of this chapter, see section 2079 of this title.

§1195 Injunction and Condemnation Proceedings