[Federal Register Volume 63, Number 219 (Friday, November 13, 1998)]
[Notices]
[Pages 63477-63478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30372]
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FEDERAL TRADE COMMISSION
Policy Concerning Disclosures of Nonmerger Competition and
Consumer Protection Investigations
AGENCY: Federal Trade Commission.
ACTION: Notice of revised policy.
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SUMMARY: The Federal Trade Commission is revising its policy concerning
disclosure of investigations. The Commission's policy, subject to
specified exceptions, is to conduct its investigations on a nonpublic
basis. The revised policy permits limited disclosures about nonmerger
investigations where: A target has publicly disclosed the relevant
information in either a press release or a filing with a government
agency; or the investigation or the practice has received substantial
publicity and the disclosure does not identify a target that has not
already disclosed its own identity. Inquiries seeking disclosure under
this authority should be addressed to the Commission's Office of Public
Affairs.
EFFECTIVE DATE: The policy is effective on November 13, 1998. The
Commission will, however, accept comments on the policy that are
received on or before December 14, 1998 and may re-evaluate the policy
in light of those comments.
FOR FURTHER INFORMATION CONTACT: Victoria A. Streitfeld, Office of
Public Affairs, 202-326-2718, or Debra A. Valentine, General Counsel,
202-326-2481.
SUPPLEMENTARY INFORMATION: Commission policy is to hold confidential
the existence and targets of law enforcement investigations until the
Commission issues an administrative complaint, authorizes or files a
judicial complaint, announces a proposed settlement, or closes a
matter. See 42 FR 64135 (1977). The Commission believes generally that
public disclosure of pending investigations and identification of
targets before the Commission has had an opportunity to weigh the
evidence may unjustifiably harm the companies investigated and
interfere with the conduct and successful resolution of such matters.
However, the Commission's policy has long included exceptions for
disclosure of industrywide investigations and of investigations that
involve significant risk of economic harm or risk to public health or
safety. Id. More recently, the Commission announced a further exception
that permits its Office of Public Affairs (``OPA'') to disclose that
the agency is investigating a merger or similar transaction where a
party to the underlying transaction had announced it in a press release
or a public filing with a governmental body. 62 FR 18630 (1977).\1\
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\1\ An investigation may also be disclosed because of a petition
to limit or quash compulsory process. See 16 CFR 4.9(b)(4).
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The first aspect of the modified policy applies if a target has
publicly disclosed, in either a press release or a filing with a
government agency, that it is the subject of a nonmerger investigation.
In such cases, OPA could: (1) Confirm information that the target has
already disclosed, to the extent that such information bears on the
investigation of that target, and (2) with the approval of a Director
or Deputy Director of the Bureau of Competition or Consumer Protection,
disclose limited additional information about the general nature and
scope of the investigation. These limited additional disclosures, which
might be needed to correct misimpressions, could not identify
additional targets that have not already identified themselves. This
aspect of the policy contemplates, for example, disclosures that the
Commission is investigating competitive practices in a particular
industrial sector or that it is investigating a type of claim for a
particular category of product. It also permits disclosure, in
appropriate cases, of whether an investigation is wide-ranging or
narrow in scope.
The second aspect of the modified policy permits OPA to make
limited disclosures about the general nature and scope of a nonmerger
investigation in unusual cases where there has been substantial
publicity about the investigation or the underlying practice. See Also
United States Attorneys' Manual (1997) Ch. 1-7.530 (allowing comments
about an investigation in ``unusual circumstances'' where a matter has
received substantial publicity). These limited disclosures of the
general nature and scope of an investigation, like the disclosures
contemplated above, are permitted only if approved by the relevant
Bureau Director or Deputy Director. As a general rule, ``substantial
publicity'' consists of, among other things, significant factual
material concerning the investigation or the underlying practice that
has appeared in the print or electronic media. By contrast,
``substantial publicity'' does not include mere rumors or statements,
for which journalists seek confirmation by the Commission, that have
not already been independently corroborated by significant coverage in
the print or electronic media.
In addition, where an investigation can be disclosed under the
conditions
[[Page 63478]]
set forth above and the recipient of compulsory process announces that
the Commission has issued such process, the policy permits confirmation
of such process.
Nothing in this notice shall be construed as modifying the
authority of the Commission (as opposed to the Commission's staff) to
make appropriate disclosures concerning nonpublic investigations
whenever it determines that doing so would be in the public interest.
The Commission will continue to keep confidential, as appropriate under
its existing laws and policies, nonpublic information submitted to the
agency.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-30372 Filed 11-12-98; 8:45 am]
BILLING CODE 6750-01-M