[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR3.25]

[Page 55-56]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 3_RULES OF PRACTICE FOR ADJUDICATIVE PROCEEDINGS--Table of Contents
 
Subpart C_Prehearing Procedures; Motions; Interlocutory Appeals; Summary 
                                Decisions
 
Sec. 3.25  Consent agreement settlements.

    (a) The Administrative Law Judge may, in his discretion and without 
suspension of prehearing procedures, hold conferences for the purpose of 
supervising negotiations for the settlement of the case, in whole or in 
part, by way of consent agreement.
    (b) A proposal to settle a matter in adjudication by consent 
agreement shall be submitted by way of a motion to withdraw the matter 
from adjudication for the purpose of considering the proposed consent 
agreement. Such motion shall be filed with the Secretary of the 
Commission, as provided in Sec. 4.2. Any such motion shall be 
accompanied by a proposed consent agreement containing a proposed order 
executed by one or more respondents and conforming to the requirements 
of Sec. 2.32; the proposed consent agreement itself, however, shall not 
be placed on the public record unless and until it is accepted by the 
Commission as provided herein. If the proposed consent agreement affects 
only some of the respondents or resolves only some of the charges in 
adjudication, the motion required by this subsection shall so state and 
shall specify the portions of the matter that the proposal would 
resolve.
    (c) If the proposed consent agreement accompanying the motion has 
also

[[Page 56]]

been executed by complaint counsel and approved by the appropriate 
Bureau Director, the Secretary shall issue an order withdrawing from 
adjudication those portions of the matter that the proposal would 
resolve and all proceedings before the Administrative Law Judge shall be 
stayed with respect to such portions, pending a determination by the 
Commission pursuant to paragraph (f) of this section.
    (d) If the proposed consent agreement accompanying the motion has 
not been executed by complaint counsel, the Administrative Law Judge may 
certify the motion and agreement to the Commission together with his 
recommendation if he determines, in writing, that there is a likelihood 
of settlement. The filing of a motion under this subsection and 
certification thereof to the Commission shall not stay proceedings 
before the Administrative Law Judge unless the Administrative Law Judge 
or the Commission shall so order. Upon certification of a motion 
pursuant to this subsection, the Commission may, if it is satisfied that 
there is a likelihood of settlement, issue an order withdrawing from 
adjudication those portions of the matter that the proposal would 
resolve, for the purpose of considering the proposed consent agreement.
    (e) The Commission will treat those portions of a matter withdrawn 
from adjudication pursuant to paragraph (c) or (d) of this section as 
being in a nonadjudicative status. Portions not so withdrawn shall 
remain in an adjudicative status.
    (f) After some or all of allegations in a matter have been withdrawn 
from adjudication, the Commission may accept the proposed consent 
agreement, reject it and return the matter or affected portions thereof 
to adjudication for further proceedings or take such other action as it 
may deem appropriate. If the agreement is accepted, it will be disposed 
of as provided in Sec. 2.34 of this chapter, except that if, following 
the public comment period provided for in Sec. 2.34, the Commission 
decides, based on comments received or otherwise, to withdraw its 
acceptance of such an agreement, it will so notify the parties and will 
return to adjudication any portions of the matter previously withdrawn 
from adjudication for further proceedings or take such other action it 
considers appropriate.
    (g) This rule will not preclude the settlement of the case by 
regular adjudicatory process through the filing of an admission answer 
or submission of the case to the Administrative Law Judge on a 
stipulation of facts and an agreed order.

[40 FR 15236, Apr. 4, 1975, as amended at 42 FR 39659, Aug. 5, 1977; 43 
FR 51758, Nov. 7, 1978; 50 FR 53305, Dec. 31, 1985; 54 FR 18885, May 3, 
1989; 61 FR 50431, Sept. 26, 1996; 61 FR 50647, Sept. 26, 1996; 64 FR 
46269, Aug. 25, 1999; 66 FR 64143, Dec. 12, 2001]