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of appeals, and if (1) the time allowed for filing a petition for certiorari has expired and no such petition has been dūly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the court has been affirmed by the Supreme Court, then the order of the Commission rendered in accordance with the mandate of the circuit court of appeals shall become final on the expiration of thirty days from the time such order of the Commission was rendered, unless within such thirty days either party has instituted proceedings to have such order corrected so that it will accord with the mandate, in which event the order of the Commission shall become final when So corrected.
Finality of orders following rehearing. (j) If the Supreme Court orders a rehearing; or if the case is remanded by the circuit court of appeals to the Commission for a rehearing, and if (1) the time allowed for filing a petition for certiorari has expired, and no such petition has been duly filed, or (2) the petition for certiorari has been denied, or (3) the decision of the court has been affirmed by the Supreme Court, then the order of the Commission rendered upon such rehearing shall become final in the same manner as though no prior order of the Commission had been rendered.
Definition of "mandate". (k) As used in this section the term mandate, in case a mandate has been recalled prior to the expiration of thirty days from the date of issuance thereof, means the final mandate.
Penalty for violating final order. (1) Any person, partnership, or corporation who violates an order of the Commission to cease and desist after it has become final, and while such order is in effect, shall forfeit and pay to the United States a civil penalty of not more than $5,000 for each violation, which shall accrue to the United States and may be recovered in a civil action brought by the United States. (Sept. 26, 1914, sec. 5, 38 Stat. 719; Feb. 13, 1925, sec. 2, 43 Stat. 939; Mar. 21, 1938, sec. 3, 52 Stat. 111, as amended June 23, 1938, sec. 1107 (f), 52 Stat. 1028; 15 U. S. C., sec. 45 (a) to (1).)
651-1. Dissemination of false advertisement forbidden
Unlawfulness. (a) It shall be unlawful for any person, partnership, or corporation to disseminate, or cause to be disseminated, any false advertisement
(1) By United States mails, or in commerce by any means, for the purpose of inducing, or which is likely to induce, directly or indirectly the purchase of food, drugs, devices, or cosmetics; or
(2) By any means, for the purpose of inducing, or which is likely to induce, directly or indirectly, the purchase in commerce
of food, drugs, devices, or cosmetics. Unfair or deceptive act or practice. (b) The dissemination or the causing to be disseminated of any false advertisement within the provisions of subsection (a) of this section shall be an unfair or deceptive act or practice in commerce within the meaning of section 5. (Sept. 26, 1914, sec. 12, as added March 21, 1938, sec. 4, 52 Stat. 114; 15 U. S. C., sec. 52 (a), (b).)
651-2. Dissemination of false advertisements
Temporary injunction. Power of Commission; jurisdiction of courts. (a) 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 12, and
(2) that the enjoining thereof pending the issuance of a complaint by the Commission under section 5, 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 5, 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 such suit shall be brought in the district in which such person, partnership, or corporation resides or transacts business.
Injunctions relating to regular publications; tolerance. (b) 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 advertise
ment or any other advertisement, the court shall exclude such issue from the operation of the restraining order or injunction. (Sept. 26, 1914, sec. 13, as added Mar. 21, 1938, sec. 4, 52 Stat. 114; 15 Ù. S. C., sec. 53 (a), (b).)
651-3. Dissemination of false advertisements; penalties
Imposition of penalties. (a) Any person, partnership, or corporation who violates any provision of section 12 (a) shall, if the use of the commodity advertised may be injurious to health because of results from such use under the conditions prescribed in the advertisement thereof, or under such conditions as are customary or usual, or if such violation is with intent to defraud or mislead, be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $5,000 or by imprisonment for not more than six months, or by both such fine and imprisonment; except that if the conviction is for a violation committed after a first conviction of such person, partnership, or corporation, for any violation of such section, punishment shall be by a fine of not more than $10,000 or by imprisonment for not more than one year, or by both such fine and imprisonment: Provided, That for the purposes of this section meats and meat food products duly inspected, marked, and labeled in accordance with rules and regulations issued under the Meat Inspection Act approved March 4, 1907, as amended, shall be conclusively presumed not injurious to health at the time the same leave official "establishments."
Exception of advertising medium or agency. (b) No publisher, radiobroadcast licensee, or agency or medium for the dissemination of advertising, except the manufacturer, packer, distributor, or seller of the commodity to which the false advertisement relates, shall be liable under this section by reason of the dissemination by him of any false advertisement, unless he has refused, on the request of the Commission, to furnish the Commission the name and post-office address of the manufacturer, packer, distributor, seller, or advertising agency, residing in the United States, who caused him to disseminate such advertisement. No advertising agency shall be liable under this section by reason of the causing by it of the dissemination of any false advertisement, unless it has refused, on the request of the Commission, to furnish the Commission the name and post-office address of the manufacturer, packer, distributor, or seller, residing in the United States, who caused it to cause the dissemination of such advertisement. (Sept. 26, 1914, sec. 14, as added Mar. 21, 1938, sec. 4, 52 Stat. 114; 15 U. Š. C., sec. 54 (a), (b).)
651-4. Additional definitions For the purposes of sections 12, 13, and 14 False advertisement. (a) The term “false advertisement” means an advertisement, other than labeling, which is misleading in a material respect; and in determining whether any advertisement is misleading, there shall be taken into account (among other things) not only representations made or suggested by statement, word, design, device, sound, or any combination thereof, but also the extent to which the advertisement fails to reveal facts material in the light of such representations or material with respect to consequences which may result from the use of the commodity to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual. No advertisement of a drug shall be deemed to be false if it is disseminated only to members of the medical profession, contains no false representation of a material fact, and includes, or is accompanied in each instance by truthful disclosure of, the formula showing quantitatively each ingredient of such drug.
Food. (b) The term "food” means (1) articles used for food or drink for man or other animals, (2) chewing gum, and (3) articles used for components of any such article.
Drug. (c) The term “drug” means (1) articles recognized in the official United StatesPharmacopoeia, official Homoeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplenient to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) articles (other than food) intended to affect the structure or any function of the body of man or other animals; and (4) articles intended for use as a component of any article specified in clause (1), (2), or (3); but does not include devices or their components, parts, or accessories.
Device. (d) The term "device" (except when used in subsection (a) of this section) means instruments, apparatus, and contrivances, including their parts and accessories, intended (1) for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; or (2) to affect the structure or any function of the body of man or other animals.
Cosmetic. (e) The term "cosmetic” means (1) articles to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof intended for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) articles intended for use as a component of any such article; except that such term shall not include soap. (Sept. 26, 1914, sec. 15, as added Mar. 21, 1938, sec. 4, 52 Stat. 114; 15 U. S. C., sec. 55 (a) to (e).)
651-5. Certification of facts to Attorney General for appropriate proceedings to enforce penalty. Whenever the Federal Trade Commission has reason to believe that any person, partnership, or corporation is liable to a penalty under section 14 or under subsection (1) of section 5, it shall certify the facts to the Attorney General, whose duty it shall be to cause appropriate proceedings to be brought for the enforcement of the provisions of such section or subsection. (Sept. 26, 1914, sec. 16, as added Mar. 21, 1938, sec. 4, 52 Stat. 114; 15 U. s. C., sec. 56.)
651-6. Separability.—If any provision of this Act, or the application thereof to any person, partnership, corporation, or circumstance, is held invalid, the remainder of the Act and the application of such provision to any other person, partnership, corporation, or circumstance, shall not be affected thereby. (Sept. 26, 1914, sec. 17, as added, Mar. 21, 1938, sec. 4, 52 Stat, 114; 15 U.S.C., sec. 57.)
651-7. Title.—This Act may be cited as the “Federal Trade Commission Act.” (Sept. 26, 1914, sec. 18, as added Mar. 21, 1938, sec. 4, 52 Stat. 114; 15 Ù. S. C., sec. 58.)
651–8. Effective dates.—(a) In case of an order by the Federal Trade Commission to cease and desist, served on or before the date of the enactment of this Act, the sixty-day period referred to in section 5(c) of the Federal Trade Commission Act, as amended by this Act, shall begin on the date of the enactment of this Act.
(b) Section 14 of the Federal Trade Commission Act, added to such Act by section 4 of this Act, shall take effect on the expiration of sixty days after the date of the enactment of this Act. (Mar. 21, 1938, sec. 5(a), (b), 52 Stat. 117; 15 U.S. C., secs. 45 note, 54 note.)
699–1. Federal Surplus Commodity Corporation and Commodity Credit Corporation, administrative expense limitation.-(a) Notwithstanding any other provision of law, none of the establishments or agencies named in subsection (b) of this section shall, after June 30, 1937, incur any obligations for administrative expenses, except pursuant to an annual appropriation specifically therefor, nor shall any such establishment or agency continue to function after said date unless established by or pursuant to law: Provided, That nothing contained herein shall be construed to extend the period during which any such establishment or agency heretofore has been authorized by law to function.
(b) * * * 5. Federal Surplus Commodities Corporation; *** 10. Commodity Credit Corporation;
(June 22, 1936, sec. 7, 49 Stat. 1647; 15 U. S. C., sec. 712a.)
699-2. Commodity Credit Corporation; continuance of existence; functions, and ownership of stock by United States.-Notwithstanding any other provision of law, Commodity Credit Corporation, a corporation organized under the laws of the State of Delaware as an agency of the United States pursuant to the Executive order of the President of
October 16, 1933, shall continue, until the close of business on June 30, 1941, or such earlier date as may be fixed by the President by Executive order, to be an agency of the United States. During the continuance of such agency, the Secretary of Agriculture and the Governor of the Farm Credit Administration are authorized and directed to continue, for the use and benefit of the United States, the present investment in the capital stock of Commodity Credit Corporation, and the corporation is hereby authorized to use all its assets, including capital and net earnings therefrom, and all moneys which have been or may hereafter be allocated to or borrowed by it, in the exercise of its functions as such agency, including the making of loans on agricultural commodities. (Jan. 31, 1935, sec. 7, 49 Stat. 4, as amended Jan. 26, 1937, sec. 2 (a), 50 Stat. 5; Mar. 4, 1939, 53 Stat. 510; 15 U. S. C., sec. 713.)
699-3. Same; increase of capital stock.---That the Secretary of Agriculture and the Governor of the Farm Credit Administration are hereby authorized and directed to take all necessary steps to increase the capital stock of the Commodity Credit Corporation by $97,000,000; and that the Reconstruction Finance Corporation is hereby authorized and directed to acquire $97,000,000 of the nonassessable capital stock of the Commodity Credit Corporation: Provided, That nothing herein shall be construed to increase the amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered under existing law to issue and to have outstanding at any one time. (Apr. 10, 1936, 49 Stat. 1191; 15 U. S. C., sec. 713a.)
699-4. Same; annual appraisal of assets; restoration of capital impairment.—That as of the 31st of March in each year and as soon as possible thereafter, beginning with March 31, 1938, an appraisal of all the assets and liabilities of the Commodity Credit Corporation for the purpose of determining the net worth of the Commodity Credit Corporation shall be made by the Secretary of the Treasury. The value of assets shall, insofar as possible, be determined on the basis of market prices at the time of appraisal and a report of any such appraisal shall be submitted to the President as soon as possible after it has been made. In the event that any such appraisal shall establish that the net worth of the Commodity Credit Corporation is less than $100,000,000, the Secretary of the Treasury, on behalf of the United States, shall restore the amount of such capital impairment by a contribution to the Commodity Credit Corporation in the amount of such impairment. To enable the Secretary of the Treasury to make such payment to the Commodity Credit Corporation, there is hereby authorized to be appropriated annually, commencing with the fiscal year : 1938, out of any money in the Treasury not otherwise appropriated, an amount equal to any capital impairment found to exist by virtue of any appraisal as provided herein. (Mar. 8, 1938, sec, 1, 52 Stat. 107; 15 U. S. C., sec. 713a-1.)
699–5. Same; capital 'excess; deposit in Treasury for retirement of Public debt. In the event that any appraisal pursuant to section 1 of this Act shall establish that the net worth of the Commodity Credit Corporation is in excess of $100,000,000, such excess shall, as soon as practicable after such appraisal, be deposited in the Treasury by the Commodity Credit Corporation and shall be credited to miscellaneous receipts. The Secretary of the Treasury is directed, as soon as prac