[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR703.4]

[Page 537-538]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 703--INFORMAL DISPUTE SETTLEMENT PROCEDURES--Table of Contents
 
Sec. 703.4  Qualification of members.

    (a) No member deciding a dispute shall be:
    (1) A party to the dispute, or an employee or agent of a party other 
than for purposes of deciding disputes; or
    (2) A person who is or may become a party in any legal action, 
including but not limited to class actions, relating to the product or 
complaint in dispute, or an employee or agent of such person other than 
for purposes of deciding disputes. For purposes of this paragraph (a) a 
person shall not be considered a ``party'' solely because he or she 
acquires or owns an interest in a party solely for investment, and the 
acquisition or ownership of an interest which is offered to the general 
public shall be prima facie evidence of its acquisition or ownership 
solely for investment.
    (b) When one or two members are deciding a dispute, all shall be 
persons having no direct involvement in the manufacture, distribution, 
sale or service of any product. When three or more members are deciding 
a dispute, at least two-thirds shall be persons having no direct 
involvement in the manufacture, distribution, sale or service of any 
product. ``Direct involvement'' shall not include acquiring or owning an 
interest solely for investment, and the acquisition or ownership of an 
interest which is offered to the general

[[Page 538]]

public shall be prima facie evidence of its acquisition or ownership 
solely for investment. Nothing contained in this section shall prevent 
the members from consulting with any persons knowledgeable in the 
technical, commercial or other areas relating to the product which is 
the subject of the dispute.
    (c) Members shall be persons interested in the fair and expeditious 
settlement of consumer disputes.