1922 Encyclopædia Britannica/Federal Trade Commission
FEDERAL TRADE COMMISSION. This American Commissionwas created by Act of the U.S. Congress, approved Sept. 261914, for the prevention of unfair methods of competition incommerce. It is composed of five members appointed by thePresident, and confirmed by the Senate: not more than threemembers may be of the same political party. The Commissionelects its own chairman. It entered upon its official duties March16 1915. With it was merged the Bureau of Corporations,previously under the jurisdiction of the Department of Commerce.
If the Commission has reasons to believe that a “person,partnership or corporation” practises any unfair method to the prejudiceof the public interest, it shall serve a notice upon such party, submita statement of the charges, and set a date for a hearing. The partycomplained of has the right to appear and show cause why theCommission should not require the cessation of practices alleged to be inviolation of the law. If the party refuses to obey the orders of theCommission, the Commission may apply to the U.S. Circuit Courtof Appeals. Banks and common carriers are excepted, they beingunder other Federal supervision. The Commission is empowered toinvestigate from time to time “the organization, business, conduct,practices, and management” of any commercial corporation and itsrelation to any other corporation, and to make recommendations for areadjustment of its business alleged to be violating the anti-trustlaws, including those relating to price discriminations, intercorporatestock-holdings, and interlocking directorates. The purposeof the Commission is to advise and regulate rather than to punish.It is also empowered to investigate trade conditions of foreigncountries as affecting the foreign commerce of the United States, and toreport to Congress with recommendations. The Commissioncomprises three departments: administrative; economic, in charge ofinvestigations; and legal, for enforcing its findings.