1939: Federal Trade Commission

The Federal Trade Commission, organized March 16, 1915, under the Federal Trade Commission Act (approved Sept. 26, 1914, and amended March 21, 1938), is an administrative agency with quasi-judicial functions.

Under the Act, as amended, the duties of the Commission are chiefly to prevent unfair methods of competition and unfair or deceptive acts or practices in interstate and foreign commerce, and to make investigations into the organization and operation of industrial corporations at the direction of Congress, the President, the Attorney General, or upon its own initiative. Under the Clayton Act (approved Oct. 15, 1914, and amended by the Robinson-Patman Act, June 19, 1936), the Commission's duties are to prevent price discriminations and other unfair practices prohibited by said Act. It is also the duty of the Commission to administer the Export Trade Act (approved April 10, 1918), designed to promote foreign trade through organization of associations which may engage only in export trade.

During the year 1939 the Commission issued 300 complaints, under the Acts which it administers, and served 336 orders to cease and desist, besides closing by stipulation or for other reasons 41 other cases in which complaints had been issued. In addition, a much larger number of preliminary investigations of alleged violations were made. Many of these resulted in stipulations to cease and desist from unfair methods of competition or unfair or deceptive acts or practices, without issue of formal complaints. There was a total of 480 stipulations so executed.

The number of complaints under the Robinson-Patman Anti-discrimination Act has steadily increased. In 1939 the Commission issued 39 complaints and 15 cease and desist orders. In two cases involving the brokerage paragraph (20) of the Act, decisions were rendered during the year by two of the United States Circuit Courts of Appeals upholding the constitutionality of the paragraph, affirming the orders of the Commission and determining important questions in the interpretation and application of the paragraph.

The Commission, acting in the public interest, may hold a trade practice conference for an industry, for the purpose of establishing, subject to the Commission's approval, rules to end trade abuses and illegal practices. Participation in the conference is wholly voluntary for members of an industry. There were eight industries for which rules were promulgated by the Commission during the year.

Forty-five export trade associations, organized under the Export Trade Act, had papers on file with the Commission at the close of the year. Three of these were formed in 1939.

The Commission reported to Congress in June on its inquiry into the motor vehicle industry. Among the matters investigated and included in its report were the investment and profits of manufacturers, the selling and distributing policies of both manufacturers and dealers, and the operations and charges of finance companies.

At the request of the President the Commission investigated methods of distribution in the millinery industry, making public its report in November.

At close of 1939 an inquiry was in progress into the effects of resale price maintenance as practiced under state laws and the Federal Miller-Tydings Act.

The Commission is one of six executive agencies of the Government which, under the Act (approved June 16, 1938) creating the Temporary National Economic Committee, participate in the inquiry which the Committee is authorized to make. The Commission continued through the year with its part of the Committee's program, which, in particular, was to inquire into monopolistic practices of trade and industry. Reports were made to the Committee on such practices in the steel, dairy products, retail petroleum, sulphur and liquor industries among others, and on the ineffectiveness of Section 7 of the Clayton Act forbidding mergers and combinations of competing companies.