Title 15 — Commerce and Trade — § 53. False advertisements; injunctions and restraining orders
Summary
These pages of Title 15, Commerce and Trade, print § 53, which lets the Federal Trade Commission bring suit in a district court to enjoin a false advertisement for food, drugs, devices, services, or cosmetics that violates § 52, and to seek a temporary restraining order or preliminary injunction against a violation of any law it enforces. Such an order is dissolved if a complaint is not filed within the period, not exceeding 20 days, specified by the court. The pages also print § 52, which makes such advertising an unfair or deceptive act or practice, and § 54, which makes some violations a misdemeanor punishable by a fine of not more than $5,000, imprisonment for not more than six months, or both. A note prints Pub. L. 116–287 of Jan. 5, 2021, directing the Commission to publish information about scams related to COVID–19 and to build a national database that tracks them.
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Full text
§ 52 TITLE 15—COMMERCE AND TRADE Page 74
(Sept. 26, 1914, ch. 311, § 11, 38 Stat. 724.)
§ 52. Dissemination of false advertisements
(a) Unlawfulness
It shall be unlawful for any person, partner-
ship, or corporation to disseminate, or cause to
be disseminated, any false advertisement—
(1) By United States mails, or in or having
an effect upon commerce, by any means, for
the purpose of inducing, or which is likely to
induce, directly or indirectly the purchase of
food, drugs, devices, services, or cosmetics; or
(2) By any means, for the purpose of induc-
ing, or which is likely to induce, directly or
indirectly, the purchase in or having an effect
upon commerce, of food, drugs, devices, serv-
ices, or cosmetics.
(b) Unfair or deceptive act or practice
The dissemination or the causing to be dis-
seminated of any false advertisement within the
provisions of subsection (a) of this section shall
be an unfair or deceptive act or practice in or af-
fecting commerce within the meaning of section
45 of this title.
(Sept. 26, 1914, ch. 311, § 12, as added Mar. 21, 1938,
ch. 49, § 4, 52 Stat. 114; amended Pub. L. 93–637,
title II, § 201(c), Jan. 4, 1975, 88 Stat. 2193; Pub. L.
103–297, § 8, Aug. 16, 1994, 108 Stat. 1550.)
Editorial Notes
AMENDMENTS
1994—Subsec. (a). Pub. L. 103–297 inserted ‘‘services,’’
after ‘‘devices,’’ in pars. (1) and (2).
1975—Subsec. (a). Pub. L. 93–637 substituted ‘‘in or
having an effect upon commerce,’’ for ‘‘in commerce’’.
Subsec. (b). Pub. L. 93–637 substituted ‘‘in or affecting
commerce’’ for ‘‘in commerce’’.
Statutory Notes and Related Subsidiaries
INFORMATION ABOUT SCAMS RELATED TO COVID–19
Pub. L. 116–287, § 2, Jan. 5, 2021, 134 Stat. 4882, provided
that:
‘‘(a) DISSEMINATION OF INFORMATION.—
‘‘(1) IN GENERAL.—As expeditiously as possible after
the date of the enactment of this Act [Jan. 5, 2021],
the Commission, in consultation with the Attorney
General, the Secretary of Health and Human Serv-
ices, the Postmaster General, the Chief Postal Inspec-
tor, and the Internet Crime Complaint Center, shall
develop and disseminate information to the public
about scams related to the novel coronavirus
(COVID–19).
‘‘(2) REQUIREMENTS.—In carrying out paragraph (1),
the Commission shall—
‘‘(A) include—
‘‘(i) information regarding mail, telemarketing,
and internet fraud and illegal robocalls related to
COVID–19 that identifies the most common
scams; and
‘‘(ii) information regarding where and how to
report instances of scams related to COVID–19, in-
cluding instructions on how to file a complaint
with the appropriate law enforcement agency;
‘‘(B) disseminate information under such para-
graph in a manner that prioritizes, and that is eas-
ily accessible by and user-friendly to, senior citi-
zens and people with infirmities and disabilities;
‘‘(C) disseminate information under such para-
graph on an internet website of the Commission
that serves as a source of information for the public
about scams related to COVID–19; and
‘‘(D) regularly update the information developed
and disseminated under such paragraph to keep
pace with the changing nature of scams related to
COVID–19.
‘‘(b) DATABASE.—As expeditiously as possible after
the date of the enactment of this Act, the Commission
shall, in consultation with State law enforcement
agencies, the Director of the Bureau of Consumer Fi-
nancial Protection, the Attorney General, the Sec-
retary of Health and Human Services, and other rel-
evant Federal officials, establish a comprehensive na-
tional database, either within or separate from the
Consumer Sentinel Network, that tracks instances of
scams related to COVID–19.
‘‘(c) COMMISSION DEFINED.—In this section, the term
‘Commission’ means the Federal Trade Commission.’’
§ 53. False advertisements; injunctions and re-
straining orders
(a) Power of Commission; jurisdiction of courts
Whenever the Commission has reason to be-
lieve—
(1) that any person, partnership, or corpora-
tion is engaged in, or is about to engage in,
the dissemination or the causing of the dis-
semination 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 in-
terest of the public,
the Commission by any of its attorneys des-
ignated 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 dissemi-
nation 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 corpora-
tion 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 be-
lieve—
(1) that any person, partnership, or corpora-
tion 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 re-
view, or until the order of the Commission
Page 75 TITLE 15—COMMERCE AND TRADE § 54
made thereon has become final, would be in
the interest of the public—
the Commission by any of its attorneys des-
ignated 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 re-
straining order or a preliminary injunction may
be granted without bond: Provided, however,
That if a complaint is not filed within such pe-
riod (not exceeding 20 days) as may be specified
by the court after issuance of the temporary re-
straining order or preliminary injunction, the
order or injunction shall be dissolved by the
court and be of no further force and effect: Pro-
vided further, That in proper cases the Commis-
sion 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 corpora-
tion 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 sec-
tion may be served by any person duly author-
ized 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 direc-
tor 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 cor-
poration; or
(3) by mailing a copy of such process by reg-
istered 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, peri-
odical, 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 dis-
tribution of such publication is customarily
conducted by the publisher in accordance with
sound business practice, and not to any meth-
od 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 ad-
vertisement,
the court shall exclude such issue from the oper-
ation of the restraining order or injunction.
(Sept. 26, 1914, ch. 311, § 13, as added Mar. 21, 1938,
ch. 49, § 4, 52 Stat. 114; amended Pub. L. 93–153,
title IV, § 408(f), Nov. 16, 1973, 87 Stat. 592; Pub.
L. 103–312, § 10, Aug. 26, 1994, 108 Stat. 1695.)
Editorial Notes
AMENDMENTS
1994—Subsecs. (a), (b). Pub. L. 103–312, § 10(a), in con-
cluding 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 cor-
poration 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 Commis-
sion, 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.
§ 54. False advertisements; penalties
(a) Imposition of penalties
Any person, partnership, or corporation who
violates any provision of section 52(a) of this
title shall, if the use of the commodity adver-
tised may be injurious to health because of re-
sults from such use under the conditions pre-
scribed in the advertisement thereof, or under
such conditions as are customary or usual, or if
such violation is with intent to defraud or mis-
lead, be guilty of a misdemeanor, and upon con-
viction 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 im-
prisonment; 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 impris-
onment 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 [21 U.S.C. 601 et
seq.] shall be conclusively presumed not inju-
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