PRIA, Government Policy, Made Personal

Summary

The Federal Trade Commission (FTC) can go to federal court to stop someone from running ads that break the law or to stop other unfair business acts. If the FTC thinks a person, partnership, or company is doing or planning to do this, its lawyers may ask a court for a temporary order to stop the ads or conduct right away. A court can grant a temporary order or restraining order without requiring a bond if the FTC shows it would protect the public. The FTC may seek a longer preliminary or even a permanent order in proper cases. If the court thinks someone else should be part of the case, it can add that person or company, even if the normal location rules would not allow it. Suits can be filed where the defendant lives or does business, or where venue is otherwise proper. The FTC can have its process papers delivered in person, left at a residence or main office, or sent by registered or certified mail, and the person who served the papers must file a verified return as proof. For temporary orders, the court may set a deadline (no more than 20 days) for the FTC to file a formal complaint; if the FTC does not file within that time the order ends. For newspapers, magazines, or other regularly published periodicals, the court can exclude a particular issue from the order if stopping that issue would delay its normal delivery and the delay is due to ordinary production and distribution, not to avoid the order.

Title 15, §53

Commerce and Trade, Source: USLM XML via OLRC

(a)Power of Commission; jurisdiction of courts

Whenever the Commission has reason to believe—

(1)that any person, partnership, or corporation is engaged in, or is about to engage in, the dissemination or the causing of the dissemination of any advertisement in violation of section 52 of this title, and

(2)that the enjoining thereof pending the issuance of a complaint by the Commission under section 45 of this title, and until such complaint is dismissed by the Commission or set aside by the court on review, or the order of the Commission to cease and desist made thereon has become final within the meaning of section 45 of this title, would be to the interest of the public,

the Commission by any of its attorneys designated by it for such purpose may bring suit in a district court of the United States or in the United States court of any Territory, to enjoin the dissemination or the causing of the dissemination of such advertisement. Upon proper showing a temporary injunction or restraining order shall be granted without bond. Any suit may be brought where such person, partnership, or corporation resides or transacts business, or wherever venue is proper under section 1391 of title 28. In addition, the court may, if the court determines that the interests of justice require that any other person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or corporation to be added as a party without regard to whether venue is otherwise proper in the district in which the suit is brought. In any suit under this section, process may be served on any person, partnership, or corporation wherever it may be found.

(b)Temporary restraining orders; preliminary injunctions

Whenever the Commission has reason to believe—

(1)that any person, partnership, or corporation is violating, or is about to violate, any provision of law enforced by the Federal Trade Commission, and

(2)that the enjoining thereof pending the issuance of a complaint by the Commission and until such complaint is dismissed by the Commission or set aside by the court on review, or until the order of the Commission made thereon has become final, would be in the interest of the public—

the Commission by any of its attorneys designated by it for such purpose may bring suit in a district court of the United States to enjoin any such act or practice. Upon a proper showing that, weighing the equities and considering the Commission’s likelihood of ultimate success, such action would be in the public interest, and after notice to the defendant, a temporary restraining order or a preliminary injunction may be granted without bond: Provided, however, That if a complaint is not filed within such period (not exceeding 20 days) as may be specified by the court after issuance of the temporary restraining order or preliminary injunction, the order or injunction shall be dissolved by the court and be of no further force and effect: Provided further, That in proper cases the Commission may seek, and after proper proof, the court may issue, a permanent injunction. Any suit may be brought where such person, partnership, or corporation resides or transacts business, or wherever venue is proper under section 1391 of title 28. In addition, the court may, if the court determines that the interests of justice require that any other person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or corporation to be added as a party without regard to whether venue is otherwise proper in the district in which the suit is brought. In any suit under this section, process may be served on any person, partnership, or corporation wherever it may be found.

(c)Service of process; proof of service

Any process of the Commission under this section may be served by any person duly authorized by the Commission—

(1)by delivering a copy of such process to the person to be served, to a member of the partnership to be served, or to the president, secretary, or other executive officer or a director of the corporation to be served;

(2)by leaving a copy of such process at the residence or the principal office or place of business of such person, partnership, or corporation; or

(3)by mailing a copy of such process by registered mail or certified mail addressed to such person, partnership, or corporation at his, or her, or its residence, principal office, or principal place or business.

The verified return by the person serving such process setting forth the manner of such service shall be proof of the same.

(d)Exception of periodical publications

Whenever it appears to the satisfaction of the court in the case of a newspaper, magazine, periodical, or other publication, published at regular intervals—

(1)that restraining the dissemination of a false advertisement in any particular issue of such publication would delay the delivery of such issue after the regular time therefor, and

(2)that such delay would be due to the method by which the manufacture and distribution of such publication is customarily conducted by the publisher in accordance with sound business practice, and not to any method or device adopted for the evasion of this section or to prevent or delay the issuance of an injunction or restraining order with respect to such false advertisement or any other advertisement,

the court shall exclude such issue from the operation of the restraining order or injunction.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1994—Subsecs. (a), (b). Pub. L. 103–312, § 10(a), in concluding provisions, substituted “Any suit may be brought where such person, partnership, or corporation resides or transacts business, or wherever venue is proper under section 1391 of title 28. In addition, the court may, if the court determines that the interests of justice require that any other person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or corporation to be added as a party without regard to whether venue is otherwise proper in the district in which the suit is brought. In any suit under this section, process may be served on any person, partnership, or corporation wherever it may be found.” for “Any such suit shall be brought in the district in which such person, partnership, or corporation resides or transacts business.” Subsecs. (c), (d). Pub. L. 103–312, § 10(b), added subsec. (c) and redesignated former subsec. (c) as (d). 1973—Subsecs. (b), (c). Pub. L. 93–153 added subsec. (b) and redesignated former subsec. (b) as (c).

Executive Documents

Transfer of Functions

For

Transfer of Functions

of Federal Trade Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 8 of 1950, § 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264, set out under section 41 of this title.

§53 False Advertisements; Injunctions and Restraining Orders

Summary

Title 15, §53

Notes & Related Subsidiaries

Editorial Notes

Amendments

Executive Documents

Transfer of Functions

Transfer of Functions

Citations & Metadata