[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: 16CFR4.1]

[Page 85-89]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 4_MISCELLANEOUS RULES--Table of Contents
 
Sec. 4.1  Appearances.




Sec.
4.1 Appearances.
4.2 Requirements as to form, and filing of documents other than 
          correspondence.
4.3 Time.
4.4 Service.
4.5 Fees.
4.6 Cooperation with other agencies.
4.7 Ex parte communications.
4.8 Costs for obtaining Commission records.
4.9 The public record.
4.10 Nonpublic material.
4.11 Disclosure requests.
4.12 Disposition of documents submitted to the Commission.
4.13 Privacy Act rules.
4.14 Conduct of business.
4.15 Commission meetings.
4.16 Privilege against self-incrimination.
4.17 Disqualification of Commissioners.

    Authority: 15 U.S.C. 46, unless otherwise noted.


    (a) Qualifications--(1) Attorneys. (i) U.S.-admitted. Members of the 
bar of a Federal court or of the highest court of any State or Territory 
of the United States are eligible to practice before the Commission.
    (ii) European Community (EC)-qualified. Persons who are qualified to 
practice law in a Member State of the European Community and authorized 
to practice before The Commission of the European Communities in 
accordance with Regulation No. 99/63/EEC are eligible to practice before 
the Commission.
    (iii) Any attorney desiring to appear before the Commission or an 
Administrative Law Judge may be required to show to the satisfaction of 
the Commission or the Administrative Law Judge his or her acceptability 
to act in that capacity.
    (2) Others. (i) Any individual or member of a partnership involved 
in any proceeding or investigation may appear on behalf or himself or of 
such partnership upon adequate identification. A corporation or 
association may be represented by a bona fide officer thereof upon a 
showing of adequate authorization.
    (ii) At the request of counsel representing any party in an 
adjudicative proceeding, the Administrative Law Judge may permit an 
expert in the same discipline as an expert witness to conduct all or a 
portion of the cross-examination of such witness.
    (b) Restrictions as to former members and employees--(1) General 
Prohibition. Except as provided in this section, or otherwise 
specifically authorized by the Commission, no former member or employee 
(``former employee'' or ``employee'') of the Commission may communicate 
to or appear before the Commission, as attorney or counsel, or otherwise 
assist or advise behind-the-scenes, regarding a formal or informal 
proceeding or investigation \1\ (except that a former employee who is 
disqualified solely under paragraph (b)(1)(ii) or paragraph (b)(1)(iv) 
of this section, is not prohibited from assisting or advising behind-
the-scenes) if:
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    \1\ It is important to note that a new ``proceeding or 
investigation'' may be considered the same matter as a seemingly 
separate ``proceeding or investigation'' that was pending during the 
former employee's tenure. This is because a ``proceeding or 
investigation'' may continue in another form or in part. In determining 
whether two matters are actually the same, the Commission will consider: 
the extent to which the matters involve the same or related facts, 
issues, confidential information and parties; the time elapsed; and the 
continuing existence of an important Federal interest. See 5 CFR 
2637.201(c)(4). For example, where a former employee intends to 
participate in an investigation of compliance with a Commission order, 
submission of a request to reopen an order, or a proceeding with respect 
to reopening an order, the matter will be considered the same as the 
adjudicative proceeding or investigation that resulted in the order. A 
former employee who is uncertain whether the matter in which he seeks 
clearance to participate is wholly separate from any matter that was 
pending during his tenure should seek advice from the General Counsel or 
the General Counsel's designee before participating.
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    (i) The former employee participated personally and substantially on 
behalf of the Commission in the same proceeding or investigation in 
which the employee now intends to participate;
    (ii) The participation would begin within two years after the 
termination of the former employee's service and, within a period of one 
year prior to the

[[Page 86]]

employee's termination, the proceeding or investigation was pending 
under the employee's official responsibility;
    (iii) Nonpublic documents or information pertaining to the 
proceeding or investigation in question, and of the kind delineated in 
Sec. 4.10(a), came to, or would be likely to have come to, the former 
employee's attention in the course of the employee's duties, (unless 
Commission staff determines that the nature of the documents or 
information is such that no present advantage could thereby be derived); 
or
    (iv) The former employee's participation would begin within one year 
after the employee's termination and, at the time of termination, the 
employee was a member of the Commission or a ``senior employee'' as 
defined in 18 U.S.C. 207(c).
    (2) Clearance Request Required. Any former employee, before 
participating in a Commission proceeding or investigation (see footnote 
1), whether through an appearance before a Commission official or 
behind-the-scenes assistance, shall file with the Secretary a request 
for clearance to participate, containing the information listed in Sec. 
4.1(b)(4) if:
    (i) The proceeding or investigation was pending in the Commission 
while the former employee served;
    (ii) A proceeding or investigation from which such proceeding or 
investigation directly resulted was pending during the former employee's 
service; or
    (iii) Nonpublic documents or information pertaining to the 
proceeding or investigation in question, and of the kind delineated in 
Sec. 4.10(a), came to or would likely have come to the former 
employee's attention in the course of the employee's duties, and the 
employee left the Commission within the previous three years.

    Note: This requirement applies even to a proceeding or investigation 
that had not yet been initiated formally when the former employee 
terminated employment, if the employee had learned nonpublic information 
relating to the subsequently initiated proceeding or investigation.

    (3) Exceptions. (i) Paragraphs (b) (1) and (2) of this section do 
not apply to:
    (A) Making a pro se filing of any kind;
    (B) Submitting a request or appeal under the Freedom of Information 
Act, the Privacy Act, or the Government in the Sunshine Act;
    (C) Testifying under oath (except that a former employee who is 
subject to the restrictions contained in paragraph (b)(1)(i) of this 
section with respect to a particular matter may not, except pursuant to 
court order, serve as an expert witness for any person other than the 
United States in that same matter);
    (D) Submitting a statement required to be made under penalty of 
perjury; or
    (E) Appearing on behalf of the United States.
    (ii) With the exception of subparagraph (b)(1)(iv), paragraphs (b) 
(1) and (2) of this section do not apply to participating in a 
Commission rulemaking proceeding, including submitting comments on a 
matter on which the Commission has invited public comment.
    (iii) Paragraph (b)(1)(iv) of this section does not apply to 
submitting a statement based on the former employee's own special 
knowledge in the particular area that is the subject of the statement, 
provided that no compensation is thereby received, other than that 
regularly provided by law or by Sec. 4.5 for witnesses.
    (iv) Paragraph (b)(2) of this section does not apply to filing a 
premerger notification form or participating in subsequent events 
concerning compliance or noncompliance with Section 7A of the Clayton 
Act, 15 U.S.C. 18a, or any regulation issued under that section.
    (4) Request Contents. Clearance requests filed pursuant to Sec. 
4.1(b)(2) shall contain:
    (i) The name and matter number (if known) of the proceeding or 
investigation in question;
    (ii) A description of the contemplated participation;
    (iii) The name of the Commission office(s) or division(s) in which 
the former employee was employed and the position(s) the employee 
occupied;
    (iv) A statement whether, while employed by the Commission, the 
former employee participated in any proceeding or investigation 
concerning

[[Page 87]]

the same company, individual, or industry currently involved in the 
matter in question;
    (v) A certification that while employed by the Commission, the 
employee never participated personally and substantially in the same 
matter or proceeding;
    (vi) If the employee's Commission employment terminated within the 
past two years, a certification that the matter was not pending under 
the employee's official responsibility during any part of the one year 
before the employee's termination;
    (vii) If the employee's Commission employment terminated within the 
past three years, either a declaration that nonpublic documents or 
information pertaining to the proceeding or investigation in question, 
and of the kind delineated in Sec. 4.10(a), never came to the 
employee's attention, or a description of why the employee believes that 
such nonpublic documents or information could not confer a present 
advantage to the employee or to the employee's client in the proceeding 
or investigation in question; and
    (viii) A certification that the employee has read, and understands, 
both the criminal conflict of interest law on post-employment activities 
(18 U.S.C. 207) and this Rule in their entirety.
    (5) Definitions. The following definitions apply for purposes of 
this section:
    (i) Behind-the-scenes participation includes any form of 
professional consultation, assistance, or advice to anyone about the 
proceeding or investigation in question, whether formal or informal, 
oral or written, direct or indirect.
    (ii) Communicate to or appear before means making any oral or 
written communication to, or any formal or informal appearance before, 
the Commission or any of its members or employees on behalf of any 
person (except the United States) with the intent to influence.
    (iii) Directly resulted from means that the proceeding or 
investigation in question emanated from an earlier phase of the same 
proceeding or investigation or from a directly linked, antecedent 
investigation. The existence of some attenuated connection between a 
proceeding or investigation that was pending during the requester's 
tenure and the proceeding or investigation in question does not 
constitute a direct result.
    (iv) Pending under the employee's official responsibility means that 
the former employee had the direct administrative or operating authority 
to approve, disapprove, or otherwise direct official actions in the 
proceeding or investigation, irrespective of whether the employee's 
authority was intermediate or final, and whether it was exercisable 
alone or only in conjunction with others.
    (v) Personal and substantial participation. A former employee 
participated in the proceeding or investigation personally if the 
employee either participated directly or directed a subordinate in doing 
so. The employee participated substantially if the involvement was 
significant to the matter or reasonably appeared to be significant. A 
series of peripheral involvements may be considered insubstantial, while 
a single act of approving or participating in a critical step may be 
considered substantial.
    (vi) Present advantage. Whether exposure to nonpublic information 
about the proceeding or investigation could confer a present advantage 
to a former employee will be analyzed and determined on a case-by-case 
basis. Relevant factors include, inter alia, the nature and age of the 
information, its relation and current importance to the proceeding or 
investigation in question, and the amount of time that has passed since 
the employee left the Commission.
    (vii) Proceeding or investigation shall be interpreted broadly and 
includes an adjudicative or other proceeding; the consideration of an 
application; a request for a ruling or other determination; a contract; 
a claim; a controversy; an investigation; or an interpretive ruling.
    (6) Advice as to Whether Clearance Request is Required. A former 
employee may ask the General Counsel, either orally or in writing, 
whether the employee is required to file a request for clearance to 
participate in a Commission matter pursuant to paragraph (b)(2) of this 
section. The General

[[Page 88]]

Counsel, or the General Counsel's designee, will make any such 
determination within three business days.
    (7) Deadline for Determining Clearance Requests. By the close of the 
tenth business day after the date on which the clearance request is 
filed, the General Counsel, or the General Counsel's designee, will 
notify the requester either that:
    (i) the request for clearance has been granted;
    (ii) the General Counsel or the General Counsel's designee has 
decided to recommend that the Commission prohibit the requester's 
participation; or
    (iii) the General Counsel or the General Counsel's designee is, for 
good cause, extending the period for reaching a determination on the 
request by up to an additional ten business days.
    (8) Participation of Partners or Associates of Former Employees. (i) 
If a former employee is prohibited from participating in a proceeding or 
investigation by virtue of having worked on the matter personally and 
substantially while a Commission employee, no partner or legal or 
business associate of that individual may participate except after 
filing with the Secretary of the Commission an affidavit attesting that:
    (A) The former employee will not participate in the proceeding or 
investigation in any way, directly or indirectly (and describing how the 
former employee will be screened from participating);
    (B) The former employee will not share in any fees resulting from 
the participation;
    (C) Everyone who intends to participate is aware of the requirement 
that the former employee be screened;
    (D) The client(s) have been informed; and
    (E) The matter was not brought to the participant(s) through the 
active solicitation of the former employee.
    (ii) If the Commission finds that the screening measures being taken 
are unsatisfactory or that the matter was brought to the participant(s) 
through the active solicitation of the former employee, the Commission 
will notify the participant(s) to cease the representation immediately.
    (9) Effect on Other Standards. The restrictions and procedures in 
this section are intended to apply in lieu of restrictions and 
procedures that may be adopted by any state or jurisdiction, insofar as 
such restrictions and procedures apply to appearances or participation 
in Commission proceedings or investigations. Nothing in this section 
supersedes other standards of conduct applicable under paragraph (e) of 
this section. Requests for advice about this section, or about any 
matter related to other applicable rules and standards of ethical 
conduct, shall be directed to the Office of the General Counsel.
    (c) Public Disclosure. Any request for clearance filed by a former 
member or employee pursuant to this section, as well as any written 
response, are part of the public records of the Commission, except for 
information exempt from disclosure under Sec. 4.10(a) of this chapter. 
Information identifying the subject of a nonpublic Commission 
investigation will be redacted from any request for clearance or other 
document before it is placed on the public record.
    (d) Notice of appearance. Any attorney desiring to appear before the 
Commission or an Administrative Law Judge on behalf of a person or party 
shall file with the Secretary of the Commission a written notice of 
appearance, stating the basis for eligibility under this section and 
including the attorney's jurisdiction of admission/qualification, 
attorney identification number, if applicable, and a statement by the 
appearing attorney attesting to his/her good standing within the legal 
profession. No other application shall be required for admission to 
practice, and no register of attorneys will be maintained.
    (e) Standards of conduct; disbarment. (1) All attorneys practicing 
before the Commission shall conform to the standards of ethical conduct 
required by the bars of which the attorneys are members.
    (2) If for good cause shown, the Commission shall be of the opinion 
that any attorney is not conforming to such standards, or that he has 
been otherwise guilty of conduct warranting disciplinary action, the 
Commission may issue an order requiring such attorney to show cause why 
he should not be suspended or disbarred from practice

[[Page 89]]

before the Commission. The alleged offender shall be granted due 
opportunity to be heard in his own defense and may be represented by 
counsel. Thereafter, if warranted by the facts, the Commission may issue 
against the attorney an order of reprimand, suspension, or disbarment.

[32 FR 8456, June 13, 1967, as amended at 40 FR 15235, Apr. 4, 1975; 41 
FR 16453, Apr. 19, 1976; 46 FR 26295, May 12, 1981; 48 FR 44767, Sept. 
30, 1983; 50 FR 50781, Dec. 12, 1985; 50 FR 53306, Dec. 31, 1985; 56 FR 
44139, Sept. 27, 1991; 58 FR 40737, July 30, 1993; 63 FR 15758, Apr. 1, 
1998; 64 FR 14830, Mar. 29, 1999; 66 FR 13645, Mar. 7, 2001; 66 FR 
64143, Dec. 12, 2001]