[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR1.14]

[Page 19-20]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 1_GENERAL PROCEDURES--Table of Contents
 
 Subpart B_Rules and Rulemaking Under Section 18(a)(1)(B) of the FTC Act
 
Sec. 1.14  Promulgation.

    (a) The Commission, after review of the rulemaking record, may 
issue, modify, or decline to issue any rule. Where it believes that it 
should have further information or additional views of interested 
persons, it may withhold final action pending the receipt of such 
additional information or views. If it determines not to issue a rule, 
it may adopt and publish an explanation for not doing so.
    (1) Statement of Basis and Purpose. If the Commission determines to 
promulgate a rule, it shall adopt a Statement of Basis and Purpose to 
accompany the rule which shall include:
    (i) A statement as to the prevalence of the acts or practices 
treated by the rule;
    (ii) A statement as to the manner and context in which such acts or 
practices are unfair or deceptive;
    (iii) A statement as to the economic effect of the rule, taking into 
account the effect on small businesses and consumers;
    (iv) a statement as to the effect of the rule on state and local 
laws; and
    (v) A statement of the manner in which the public may obtain copies 
of the final regulatory analysis.
    (2) Final regulatory analysis. Except as otherwise provided by 
statute, if the Commission determines to promulgate a final rule, it 
shall issue a final regulatory analysis relating to the final rule. Each 
final regulatory analysis shall contain:
    (i) A concise statement of the need for, and the objectives of, the 
final rule;
    (ii) A description of any alternatives to the final rule which were 
considered by the Commission;
    (iii) An analysis of the projected benefits and any adverse economic 
effects and any other effects of the final rule;
    (iv) An explanation of the reasons for the determination of the 
Commission that the final rule will attain its objectives in a manner 
consistent with applicable law and the reasons the particular 
alternative was chosen;
    (v) A summary of any significant issues raised by the comments 
submitted during the public comment period in response to the 
preliminary regulatory analysis, and a summary of the assessment by the 
Commission of such issues; and
    (vi) The information required by the Regulatory Flexibility Act, 5 
U.S.C. 601-612, and the Paperwork Reduction Act, 44 U.S.C. 3501-3520, if 
applicable.
    (3) Small entity compliance guide. For each rule for which the 
Commission must prepare a final regulatory flexibility analysis, the 
Commission will publish one or more guides to assist small entities in 
complying with the rule. Such guides will be designated as ``small 
entity compliance guides.''

[[Page 20]]

    (b) In the event the Commission determines, upon its review of the 
rulemaking record, to propose a revised rule for further proceedings in 
accordance with this subpart, such proceedings, including the 
opportunity of interested persons to avail themselves of the procedures 
of Sec. 1.13 (d)(5) and (d)(6), shall be limited to those portions of 
the revised rule, the subjects and issues of which were not 
substantially the subject of comment in response to a previous notice of 
proposed rulemaking.
    (c) The final rule and Statement of Basis and Purpose shall be 
published in the Federal Register. A rule issued under this subpart 
shall be deemed promulgated at 3 p.m. Eastern Standard Time on the 
fourth day after the date on which the final rule and Statement of Basis 
and Purpose are published in the Federal Register. In the event such day 
is a Saturday, Sunday or national holiday, then the rule is deemed 
promulgated at 3 p.m. Eastern Standard Time on the following business 
day.

[40 FR 33966, Aug. 13, 1975, as amended at 46 FR 26289, May 12, 1981; 50 
FR 53304, Dec. 31, 1985; 63 FR 36340, July 6, 1998]