Federal Trade Commission
Congressional Budget Justication
Fiscal Year 2022
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May 28, 2021
The Honorable Shalanda Young
Acting Director, Office of Management and Budget
Executive Office of the President
Washington, DC 20503
Dear Director Young:
This letter transmits the Federal Trade Commission’s Budget Request for Fiscal Year 2022,
prepared in accordance with OMB Circular A-11.
The FTC is a highly effective independent agency with a unique dual mission to protect
consumers and promote competition. For more than one hundred years, the FTC has championed
the interests of American consumers. The FTC is dedicated to advancing consumer interests
while encouraging innovation and competition in our dynamic economy. To maintain its high
level of performance in FY 2022, the FTC is requesting $389,800,000 and 1,250 FTEs, which is
an overall increase of $38,800,000 and 110 FTEs compared to the FTC’s FY 2021 enacted
appropriation.
This submission assumes $13 million in offsetting collections from Do Not Call fees and $136
million from Hart Scott Rodino (HSR) filing fees under the current fee structure.
As required by Section 1108(c) of Title 31, United States Code, all statements of obligations
furnished to the Office of Management and Budget in connection with the Commission’s
appropriation request for Fiscal Year 2022 consist of valid obligations as defined in Section
1501(a) of that title. I welcome the opportunity for continued dialogue concerning our budget
submission.
By direction of the Commission.
Sincerely,
Rebecca Kelly Slaughter
Acting Chairwoman
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
REBECCA KELLY SLAUGHTER
ACTING CHAIRWOMAN
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Budget Request Summary
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Needed Resources for Fiscal Year 2022
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Fiscal Year 2022 Overview Statement
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Budgeted Resources by Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
FTE by Objective
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
About This Report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
Annual Performance Goals: Fiscal Years 2016 to 2022. . . . . . . . . . . . . . . . . . . . .54
Strategic Goal 1: Protect Consumers From Unfair and Deceptive Practices in the
Marketplace. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
Strategic Goal 2: Maintain Competition to Promote a Marketplace Free From
Anticompetitive Mergers, Business Practices, or Public Policy Outcomes.
. . . . . . . .89
Strategic Goal 3: Advance the FTC’s Performance Through Excellence in Managing
Resources, Human Capital, and Information Technology.
. . . . . . . . . . . . . . . . . . 115
Protecting Consumers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Promoting Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Support
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Proposed Appropriations Language . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
Program and Financing
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Personnel Summary
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Inspector General’s Request
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
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Budget Request
Fiscal Year 2022 Congressional Budget Justication - Overview2
Budget Request Summary
($ in thousands)
Protecting Consumers
612 $196,590 653 $208,605 41 $12,015
Promoting Competition
528 154,410 597 181,195 69 26,785
Offsetting Collections
HSR Filing Fees
$150,000 $136,000 -$14,000
Do Not Call Fees
19,000 13,000 -6,000
General Fund
182,000 240,800 58,800
Fiscal Year 2022 Congressional Budget Justication - Overview 3
Needed Resources for Fiscal Year 2022
The FTC is an independent agency with a unique dual mission to protect consumers and
promote competition.1 For more than one hundred years, the FTC has championed the
interests of Americans. The FTC is dedicated to protecting competition and consumers,
particularly as our country recovers from the pandemic. To maintain its high level
of performance in FY 2022, the FTC is requesting $389,800,000 and 1,250 FTE. This
is an overall increase of $38,800,000 and 110 FTE above the FTC’s FY 2021 enacted
appropriation, and consists of the following:
• Increase of $18,521,000 for 110 additional FTE:
» Thirteen FTE in BCP to support increasing needs in enforcement, privacy, and
emerging technologies:
(1) Two FTE to address increasingly complex privacy and data security issues;
(2) three FTE to ensure effective compliance monitoring and enforcement
investigations; (3) two FTE to address emerging technology in the area of
marketing practices; and (4) six FTE to enhance BCP’s ability to understand
quickly evolving technological issues implicated by its casework and keep pace
with litigation demands.
» Thirty-six FTE in BC to support identifying and challenging anticompetitive
mergers and conduct in complex and increasingly pervasive technology markets:
(1) Thirty FTE to support the BC litigation divisions with the high level of merger
activity and litigation
to assist in investigations, litigation, and policy projects; and (3) one FTE in the
» Eight FTE in the Bureau of Economics (BE) to increase the amount of economic
analysis that guides the Commission’s consumer protection and competition
policies and enforcement.
»
consumer protection and competition matters.
»
and quantitative analysis of antitrust issues on an ongoing basis.
1 The Supreme Court’s recent ruling in AMG Capital Mgmt. v. FTC, 141 S. Ct. 1341
(2020), took away our ability to obtain monetary relief in federal court under Section 13(b) of the
FTC Act. In doing so, the ruling deprived the agency of its best and most ecient tool for return-
ing money to consumers who suered losses as a result of deceptive, unfair, or anticompetitive
conduct, and we urge Congress to take prompt action to restore this authority.
Fiscal Year 2022 Congressional Budget Justication - Overview4
1,201
944
1,019
1,005
1,059
1,093
1,106
1,133
1,155
1,131
1,143
1,145
1,144
1,165
1,134
1,102
1,101
1,128
1,140
1,250
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
1,700
1,800
1,900
2,000
85 95 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
Est.
22
CBJ
FTE
Federal Trade Commission
Full Time Equivalent History
Fiscal Years 1985 - 2022
»
administrative procedure, etc.
»
increased litigation via administrative complaint proceedings.
»
»
functions, such as improving data governance, supporting migration of IT services
to the cloud, supporting personnel security, program management, acquisitions
and purchase card program support, improving risk management, HR operations
and information systems, and evaluating and improving the agency’s training
programs.
Fiscal Year 2022 Congressional Budget Justication - Overview 5
» Twenty-three FTE to enhance the FTC’s paid internship program. Allocating
(additional) FTE to paid internships will enable the FTC to attract a more diverse
applicant pool and create a more diverse pipeline for future positions at the
agency.
»
enhance the agency’s capabilities in this area.
»
agency’s continuous privacy monitoring program and privacy threshold analysis
for new projects.
»
investigative activity under the Inspector General’s jurisdiction.
• Increase of $8,841,700 for mandatory expenses needed to support the agency’s FTE
level at FY 2022 costs. Examples of such mandatory expenses include costs to support
pay adjustments.
• Increase of $11,437,300 for agency critical non-compensation related investments:
: An additional $10,200,000 was allocated in FY 2021 for competition related
expert witness needs due to increased numbers of complex investigations and
litigations.
» $1,650,000 needed in BCP, BC and OGC for legal support services that accompany
the litigation services cloud platform (Relativity). Services include desktop
support, analytics, supplemental labor support, and training.
» $9,787,300 for OED to pay for the overhead costs associated with on-boarding
the additional 110 FTEs (e.g. space, IT hardware, software licenses, background
investigations, etc.); ongoing costs for hosting and storage of the agency’s new
litigation services cloud platform (Relativity); the third phase of migrating
agency legacy applications to the cloud; ongoing costs to support the agency’s
processes; increased costs for the lease at Constitution Center; and funding to
various training initiatives.
The Federal Deposit
Insurance Corporation Improvement Act of 1991 (FDICIA) amended the Federal Deposit
Insurance Act. As originally enacted, the FDICIA imposed various statutory responsibilities
on the FTC that the agency did not have the resources or expertise to perform effectively.
Accordingly, since 1992, Congress, with Administration support, has prohibited the FTC
from spending funds on some or all of the responsibilities assigned to it under section 151
of the Act.
Fiscal Year 2022 Congressional Budget Justication - Overview6
The requested appropriations language for FY 2022 continues the spending restriction,
role for the FTC under section 151. This role enables the FTC to continue to enforce the
provisions requiring non- federally-insured depository institutions to disclose that they
do not have federal insurance and that the federal government does not guarantee the
depositor will get back his or her money, and retains the implementation ban with respect
to “look-alike” provisions.
The requested appropriations language continues in effect provisions
in prior- year appropriation acts that: (1) allow for the purchase of uniforms and hire of
the amount available for contracts for collection services in accordance with 31 U.S.C. 3718;
the collection of offsetting fees; (6) allow for the gross sum appropriated to be reduced as
offsetting fees are collected; and (7) allow all funding to be available until expended.
will provide the FTC with $149,000,000 in FY 2022. The FTC assumes the $240,800,000
difference between offsetting collections and the $389,800,000 request will be funded
through a direct appropriation.
This submission assumes offsetting HSR fee collections will
101-162, as amended effective February 1, 2001, in the FY 2001 Commerce-Justice-State
Appropriations Act (Section 630, Public Law 106-553). The HSR Act requires that fees be
split 50-50 between the FTC and the Antitrust Division of the U.S. Department of Justice.
This submission assumes offsetting collections of $13,000,000 from
national database of telephone numbers of consumers who choose not to receive telephone
solicitations from telemarketers and to carry out other Telemarketing Sales Rule activities.
Fiscal Year 2022 Congressional Budget Justication - Overview 7
Fiscal Year 2022 Overview Statement
in advertising and marketing; privacy and data security risks; protecting consumers in
its resources to investigate and respond to issues arising from the ongoing COVID-19
deceptive practices, including illegal robocalls. The FTC also enforced its orders against
repeat offenders, referring cases to criminal authorities as appropriate.
injunctions and orders requiring defendants to pay more than $796.9 million in consumer
redress or disgorgement of ill-gotten gains. In addition, cases referred to the Department of
Justice (DOJ) resulted in eight court judgments imposing over $5 billion in civil penalties.
administrative orders.
In FY 2020, the Commission also issued 23 reports on consumer protection and released 13
new consumer and business education publications.
Beginning in March 2020, the FTC sent letters to hundreds
of companies and individuals warning them to stop making unsubstantiated claims
that their products and therapies can treat or prevent COVID-19. Overwhelmingly,
companies that received FTC warning letters took quick steps to correct their
problematic claims. The FTC sent warning letters to sellers of vitamins, herbs,
coronavirus treatments or preventatives, intravenous (IV) “therapies” with high
sent warning letters to marketers of other “treatments,” including Chinese herbal
medications, music therapy, homeopathic treatments, and even shields claimed to
prevent or cure COVID-19.
The FTC sent warning letters to a number of multi-level marketing companies to
remove and address unsubstantiated claims that they or their participants made
Fiscal Year 2022 Congressional Budget Justication - Overview8
about their products’ ability to treat or prevent COVID-19 or about the earnings
consumers who have recently lost income can make, or both.
The FTC also worked with other federal agencies and foreign counterparts to stop
scammers and other unfair and deceptive business practices during the COVID-19
crisis. The FTC and Food and Drug Administration (FDA) sent warning letters to a
number of companies allegedly selling unapproved products that may violate federal
treat or prevent COVID-19.
The FTC and Federal Communications Commission sent joint letters to companies
providing Voice over Internet Protocol (VoIP) services, warning them that routing
and transmitting illegal robocalls, including coronavirus-related scam calls, is illegal
and may lead to federal law enforcement against them. Separately, the FTC also sent
letters to VoIP service providers and other companies warning them that “assisting
and facilitating” illegal telemarketing or robocalls related to COVID-19 is against the
law. Many of these calls prey upon consumers’ fear of the virus to perpetrate scams or
sow disinformation.
The FTC and Small Business Administration (SBA) sent warning letters to companies
that may have misled small businesses seeking SBA loans as a result of COVID-19.
The letters highlight claims by the companies that could lead consumers to believe
companies’ websites for loans through the Paycheck Protection Program (PPP) or
(CARES) Act.
The FTC developed a multi-media campaign, complete with a dedicated website
(ftc.gov/coronavirus; ftc.gov/coronavirus/es). The site contains a library of more
than 80 consumer and business blog posts and scam alerts on topics ranging from
relief checks and treatment claims to charity fraud, government imposter scams,
and misinformation and rumors. The site also houses robocall recordings, videos on
avoiding COVID-19 and Economic Impact Payment scams, social media shareables,
infographics, and materials in other languages.
A Rhode Island company, Ponte Investments LLC, and its
with the SBA as part of a settlement resolving FTC charges they misled consumers in
the early days of the coronavirus pandemic. The FTC alleged they falsely claimed an
Marc Ching, a California-based marketer of the Thrive supplement consisting of
mainly Vitamin C and herbal extracts, agreed to a preliminary order barring him from
claiming that it is effective at treating, preventing, or reducing the risk of COVID-19.
The proposed preliminary order also bars Mr. Ching, doing business as Whole Leaf
Organics, from claiming that three CBD-based products he sells are effective cancer
Fiscal Year 2022 Congressional Budget Justication - Overview 9
treatments. In a separate action, an administrative settlement with the FTC bars
Marc Ching from continuing to make baseless claims that the supplement Thrive can
treat, prevent, or reduce the risk of COVID-19. In addition to barring Ching’s false and
unsubstantiated health claims, the order also requires Ching to send written notices
to customers and retailers of Thrive, clearly explaining that it will not treat, prevent,
or reduce the risk of COVID-19. Ching also must tell customers and retailers that
CBD-EX, CBD-RX, and CBD-Max will not treat cancer. Finally, the letters must inform
customers and retailers of Ching’s settlement with the Commission.
The FTC charged Golden Sunrise Nutraceutical, Inc. with deceptively advertising a
caused by coronavirus. The FTC sent Golden Sunrise a warning letter in April 2020,
warning that it should immediately remove all advertising claims that the products
could prevent, treat, or cure COVID-19. The FTC alleges Golden Sunrise continued
to market the plan as a COVID-19 treatment. The defendants also have promoted
and sold a range of dietary supplements as treatments for cancer and Parkinson’s
disease, as well as many other different serious health conditions and diseases. Some
of the defendants’ treatments cost as much as $170,000 to $200,000. The FTC alleges
they are comprised mainly of various herbs and spices and the health claims are
unsubstantiated.
its owner, David J. Jeansonne II, alleging they deceived consumers with mailers
instead lured them to a used car sale. The complaint also alleges the respondents
court complaint, which the Commission voluntarily dismissed to pursue a broader
administrative proceeding.
The FTC charged online marketer SuperGoodDeals.com, Inc. and its owner, Kevin J.
personal protective equipment (PPE) to deal with the coronavirus pandemic. The
consumers worried about being exposed to the coronavirus. Beginning in March,
SuperGoodDeals’ website said PPE was “in stock,” and touted “Pay Today, Ships
Tomorrow.” The FTC alleges it frequently it took weeks for SuperGoodDeals to ship
the PPE merchandise customers ordered.
other PPE related to the coronavirus pandemic. In its case against the operators
of the online store Glowwy, the FTC alleges that the company began advertising
were in stock and would ship the same day they were ordered. The FTC alleges that,
through March, April, and May, the company continued to make explicit promises
about shipping dates and times, but consumer complaints show they repeatedly
Fiscal Year 2022 Congressional Budget Justication - Overview10
failed to make good on those promises. Similarly, in its case against the operators
of wrist-band.com and other online store fronts, the FTC alleges that the company
made numerous promises that face masks, face shields, thermometers, and gloves
were “in stock” and “GUARANTEED TO SHIP TODAY” as early as March. However,
the defendants allegedly regularly waited weeks to ship products and failed to
inform consumers of the delays, in violation of the Mail Order Rule. Finally, the FTC’s
complaint against American Screening, LLC alleges that the company, which markets
PPE in bulk to local governments, hospitals, and nursing homes, failed to deliver on
its promises that items would be shipped “within 24-48 hours” and that products
were “in stock” and available to ship. The complaint also alleges the company failed to
follow the requirements laid out in the Mail Order Rule for delayed shipments.
The University of Phoenix (UOP) and its parent
company, Apollo Education Group, agreed to settle for a record $191 million to
resolve FTC charges that they used deceptive advertisements that falsely touted their
relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft,
Twitter, and The American Red Cross. Under the settlement, UOP agreed to pay $50
million in cash as well as cancel $141 million in debts owed to the school by students
who were harmed by the deceptive ads. This is the largest settlement the Commission
LendEDU
for a fee and posted fake positive reviews of its website. The order requires
LendEDU to pay $350,000 and prohibits LendEDU and its operators from making
misrepresentations similar to those alleged in the complaint.
Multi-level marketer AdvoCare International, L.P. and its former
the multi-level marketing business to resolve FTC charges that the company operated
an illegal pyramid scheme that deceived consumers into believing they could earn
promoters, Carlton and Lisa Hardman, also settled charges that they promoted
the illegal pyramid scheme and misled consumers about their income potential,
agreeing to a multi-level marketing ban and a judgment of $4 million that will be
suspended when they surrender substantial assets. The FTC sued the multi-level
marketer Neora, LLC, formerly known as Nerium International, LLC, and its chief
joined the scheme. The FTC also alleges that defendants deceptively promoted “EHT”
supplements as an antidote to concussions and chronic traumatic encephalopathy
disease. The defendants allegedly deceived consumers for more than four years,
sales of more than $120 million. Additionally, the FTC reached a settlement with
two related companies, Signum Biosciences and Signum Nutralogix, that supplied
Fiscal Year 2022 Congressional Budget Justication - Overview 11
EHT supplements to Nerium and allegedly helped to deceptively promote Nerium’s
products. The settlement bars the Signum companies from making baseless claims
about EHT or other supplements.
In another case, a federal court granted the FTC’s request to temporarily shut down
of the company and its executives. The FTC alleges that Success By Health and its
executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris, and Thomas
G. Sacca are operating a pyramid scheme that uses false promises of wealth and
income to entice thousands of consumers to join. The FTC alleges that the defendants
have taken more than $7 million from consumers and pocketed over $1.3 million
for themselves. The FTC also alleges that Jay Noland is violating a 2002 court order
stemming from a previous case related to another failed pyramid scheme known as
Netforce Seminars.
a total of $1.9 million to settle FTC and State of Ohio charges that they facilitated
a scheme that peddled bogus credit card interest rate relief, illegally charging
consumer protection case against a VoIP service provider. The FTC and Ohio alleged
that Globex provided a company called Educare Centre Services with the means to
make calls to U.S. consumers, including illegal robocalls, to market Educare’s phony
credit card interest rate reduction services that bilked consumers out of millions of
dollars.
court temporary halted GDP Network, LLC, an Orlando-based operation, for allegedly
blasting consumers with telemarketing cold calls promising to permanently and
substantially reduce their credit card interest rates. After duping consumers into
or well-known credit card networks such as MasterCard or Visa, the defendants
allegedly promised to save them thousands of dollars in credit card interest and
allege the defendants charged upfront fees of as much as $3,995 for their bogus
services.
robocalls claiming they could save them money by reducing the interest rates on their
credit cards, agreed to settle FTC charges that their conduct was both deceptive and
illegal. The order bans the defendants from selling debt relief services and from all
telemarketing, along with imposing a more than $13.8 million judgment, which will
be partially suspended based on their inability to pay.
The FTC sent letters to nineteen VoIP service providers warning them that “assisting
and facilitating” illegal telemarketing or robocalling is against the law. The letters
warn the VoIP service providers that the FTC may take legal action if they assist a
Fiscal Year 2022 Congressional Budget Justication - Overview12
seller or telemarketer who they know, or consciously avoid knowing, is violating the
agency’s TSR.
AT&T Mobility, LLC, agreed to pay $60 million to settle litigation
with the FTC over allegations that the wireless provider misled millions of its
smartphone customers by charging them for “unlimited” data plans while reducing
their data speeds. The FTC alleged that, despite AT&T’s unequivocal promises of
unlimited data, it began throttling data speeds in 2011 for its unlimited data plan
customers after they used as little as 2 gigabytes of data in a billing period. AT&T’s
alleged practices affected more than 3.5 million customers as of October 2014. The
settlement prohibits AT&T from making any representation about the speed or
amount of its mobile data, including that it is “unlimited,” without disclosing any
material restrictions on the speed or amount of data. The disclosures need to be
The marketers of an electrical nerve stimulation device
called Quell agreed to pay $4 million and to stop making deceptive claims that the
device treats pain throughout the body when placed below the knee and is clinically
proven and cleared by the FDA to do so. The order bars the marketers of Quell from
making such pain-relief claims unless they are true, not misleading, and supported
about clinical proof or the scope of FDA clearance for any device. The order also
requires them to turn over up to an additional $4.5 million in future foreign licensing
payments.
The marketers of three supplements called Neurocet, Regenify, and Resetigen-D
settled an FTC complaint alleging they deceptively promoted their products to older
Americans using false claims that these products could stop pain and treat age-
related ailments. The order bars the defendants from making any claims about the
evidence. The order also imposes a judgment of more than $38.1 million, which is
partially suspended after the defendants pay $1.3 million.
A.S. Research, LLC and its two owners, Stephen J. Young and Michael K. Ledeboer,
agreed to settle FTC charges by halting the deceptive tactics they allegedly used to
mislead consumers into thinking Synovia, a dietary supplement, could treat arthritis
and alleviate joint pain. The settlement order imposes a judgment of more than $4.1
million against the defendants, which will be partially suspended after they pay
$821,000.
NatureCity, LLC, the Boca Raton, Florida-based marketers and sellers of two Aloe
vera-based supplements, agreed to settle FTC charges that they deceived consumers
with false and unsupported claims that TrueAloe and AloeCran were effective
treatments for a range of conditions affecting older Americans, including chronic
to pay $537,500, bars them from making false and unsubstantiated health claims,
and requires them to disclose any material connection they have with compensated
reviewers.
Fiscal Year 2022 Congressional Budget Justication - Overview 13
The sellers of a pill called ReJuvenation agreed to pay $660,000 to settle FTC charges
that they deceptively claimed that their product is a virtual cure-all for age-related
ailments including cell damage, heart attack damage, brain damage, blindness,
deafness, and even aging itself. The orders also prohibit the defendants from making
Renaissance Health Publishing, a Florida-based company that promoted its Isoprex
agreed to a settlement with the FTC that bars the company from continuing to make
its unproven claims. The order prohibits Renaissance Health Publishing, LLC and its
owner James DiGeorgia from making such claims unless they are true and supported
by reliable tests or studies and imposes a judgment of $3.93 million, which will be
partially suspended once the defendants pay $100,000.
The FTC sued ZyCal Bioceuticals and Excellent Marking Results, Inc. (EMR) to stop
them from continuing to deceive consumers with false claims that their pills are
and its president, Michael McGahee, agreed to a $3.6 million judgment that will be
partially suspended upon payment of $145,000, and the FTC is proceeding with
The FTC sued the publisher Agora Financial, LLC, for allegedly tricking seniors into
buying books, newsletters, and other publications that falsely promise a cure for type
check program.
Under a settlement with the FTC,
the marketers of a low-level light therapy device called Willow Curve agreed to stop
making allegedly deceptive claims that the device treats chronic, severe pain and
for a low-level light therapy device. The order imposes a $22 million judgment against
the defendants, which will be partially suspended after company owners Dr. Ronald
Shapiro and David Sutton each pay $200,000.
Devumi, LLC and its owner and CEO, German
and individual use in making hiring, investing, purchasing, licensing, and viewing
decisions. The FTC alleged Devumi sold fake followers, phony subscribers, and bogus
including Twitter, YouTube, and LinkedIn. The order includes a monetary judgment
of $2.5 million against Calas, which will be suspended upon payment of $250,000.
The order bans the Devumi defendants from selling or assisting others in selling
prohibits the defendants from making misrepresentations, or assisting others in
endorsement of any person, entity, product, or service.
Fiscal Year 2022 Congressional Budget Justication - Overview14
Teami, LLC, a marketer of teas and skincare products, agreed to settle FTC charges
that it promoted its products using deceptive health claims and endorsements by
being paid to promote its products. The FTC alleged that Teami claimed without
defendants to have adequate substantiation for weight-loss and other health-related
claims, requires that their endorsers tell consumers, clearly and conspicuously, when
they have been paid, requires monitoring of endorsers, and includes a $15.2 million
case to challenge claims made in social media endorsements about the effectiveness
of health-related products.
offers examples of both effective and ineffective disclosures.
In 2018, the FTC investigated Williams-Sonoma for making
deceptive claims that some of its mattress pads were “Crafted in America from local
and imported materials,” when they were really made in China. Williams-Sonoma
quickly corrected the country-of-origin information for the mattress pads, and
agreed to comply with the FTC’s requirement that it undertake a larger review of
the investigation. In May 2019, the FTC received a report that the company was
continuing to disseminate ads and promotional materials, including on its website
and in social media, which deceptively claimed certain categories of Williams-Sonoma
products were all, or virtually all, made in the United States. Williams-Sonoma Inc.
agreed to pay $1 million and to stop making false, misleading, or unsubstantiated
claims that all of its Goldtouch Bakeware products, its Rejuvenation-branded
products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered
furniture products are all, or virtually all, made in the United States.
The FTC issued a notice of proposed rulemaking for a Made in USA Labeling Rule. The
United States; and 3) all or virtually all ingredients or components of the product are
made and sourced in the United States.
AH Media Group, the operators of an online
subscription scheme, agreed to settle an FTC complaint alleging that the defendants
duped consumers out of more than $74.5 million by luring them with supposedly
“free trial” offers for cosmetics and dietary supplements, then enrolling them in
subscriptions and billing them without their consent. The court orders settling the
Fiscal Year 2022 Congressional Budget Justication - Overview 15
FTC’s complaint ban the defendants from negative option marketing, in which the
or services. The order against Alan Schill and Zanelo, LLC imposes a $74.5 million
judgment, and the order against AH Media and Henry Block imposes a $67 million
judgment. Both orders are partially suspended, and the defendants are required to
turn over approximately $4.3 million.
Online children’s education company Age of Learning, Inc., which operates
ABCmouse, agreed to pay $10 million and change its negative option marketing
and billing practices to settle FTC charges that it made misrepresentations about
cancellations and failed to disclose important information to consumers, leading
tens of thousands of people to be renewed and charged for memberships without
proper consent. The complaint also alleged the company unfairly billed ABCmouse
memberships, preventing consumers from avoiding additional charges.
At the request of the FTC, a federal court ordered the
operators of several online rental listings websites to pay more than $6 million. The
order also permanently bans the defendants from offering rental listing services. The
FTC alleged Steven and Kevin (Kaveh) Shayan made false and unfounded claims on
their WeTakeSection8.com website targeting low-income, disabled, and older adults,
including that the site had accurate, up-to-date listings that were approved for Section
8 housing vouchers. In reality, most of the listed properties were either unavailable or
did not accept Section 8 housing vouchers.
which the FTC and Utah Division of Consumer Protection (DCP) allege have used
thousands of dollars. Its advertisements routinely featured endorsements from
celebrities and enticed consumers to free events that Zurixx claimed would teach
FTC and DCP allege that Zurixx’s free event was in fact a sales presentation for its
three-day workshops that cost $1,997. Zurixx presenters told free event attendees
that the three-day workshop would teach them everything they need to know to
make substantial income from real estate. Presenters at the three-day workshop,
however, often described it as merely a “beginner” course, while upselling consumers
additional products and services that can cost as much as $41,297.
buy real estate training packages that cost thousands of dollars. Nudge encouraged
consumers to attend one of its Preview Events through mailings and infomercials
featuring TV personalities from shows like “Flipping Vegas,” “Flip Men,” “Renovate to
Rent,” and “Million Dollar Listing Los Angeles.” However, these events were mainly
sales pitches to get consumers to buy workshops costing more than $1,000. In its
complaint, the FTC alleges that Nudge’s revenues from late 2014 to late 2017 alone
were more than $400 million. According to a survey included in the FTC’s court
Fiscal Year 2022 Congressional Budget Justication - Overview16
more to Nudge than they netted in subsequent real estate transactions.
EffenAds, LLC, the operators of a work-from-home
$1.5 million to settle FTC allegations that they used misleading spam emails to lure
consumers into buying work-from-home services. The FTC alleged the defendants
tricked more than 50,000 consumers into paying for fake work-at-home opportunities
by running ads with made-up news stores and fake celebrity endorsements. The
ads promised consumers they could make easy money by posting advertising links
lost tens of thousands of dollars after Effen Ads allegedly sold their information to
telemarketing companies, which then convinced consumers to buy bogus business
coaching and other services.
Outreach Calling, Inc., a sprawling fundraising operation that
allegedly scammed consumers out of millions of dollars agreed to be permanently
banned from charitable fundraising along with its owner and others involved in its
operation as a result of a lawsuit brought by the FTC and Attorneys General of New
York, Virginia, Minnesota, and New Jersey. The complaint alleged that the defendants
served as the primary fundraisers for a number of sham charities that were the
subject of numerous law enforcement actions. The complaint also alleged that the
sham charities claimed to use consumers’ donations to help homeless veterans,
activities. The defendants in the case, who have worked with each other for as long
as 30 years, have been subject to numerous law enforcement actions dating back
as far as 1996. Under the proposed settlements, the defendants will be required to
surrender close to $900,000.
Online fashion retailer Fashion Nova agreed to pay
$9.3 million to settle FTC charges that it did not properly notify consumers and give
them the chance to cancel their orders when it failed to ship merchandise in a timely
manner, and that it illegally used gift cards to compensate consumers for unshipped
merchandise instead of providing refunds. By law, sellers have to notify customers
about shipping delays and offer them the right to cancel with a full refund. Sellers also
must give refunds when they do not ship merchandise, not just a gift card or store
credit.
HyperBeard, Inc., a developer of popular
children’s apps, agreed to pay $150,000 and to delete personal information it illegally
collected from children under 13. The FTC alleged that HyperBeard violated the
Children’s Online Privacy Protection Act Rule (COPPA Rule) by allowing third-party ad
users of the company’s child-directed apps, without notifying parents or obtaining
Fiscal Year 2022 Congressional Budget Justication - Overview 17
using HyperBeard’s apps.
The FTC held a workshop examining the COPPA Rule in light of evolving business
practices and new technology in the marketplace. The FTC held the workshop as
part of its review of, and request for public comments regarding, the continued
effectiveness of the COPPA Rule, including the 2013 amendments the agency made
to the rule. The workshop explored issues including the increased use of Internet of
Things devices, social media, educational technology, and general audience platforms
hosting third-party child-directed content.
The FTC barred Retina-X Studios, LLC, the developers of three
“stalking” apps, from selling apps that monitor consumers’ mobile devices unless
they take certain steps to ensure the apps will only be used for legitimate purposes.
that Retina-X and its owner, James N. Johns, Jr., developed three mobile device apps
that allowed purchasers to monitor the mobile devices on which they were installed,
without the knowledge or permission of the device’s user. Retina-X sold more than
15,000 subscriptions to all three stalking apps before the company stopped selling
them in 2018. The settlement resolves allegations that these apps compromised the
privacy and security of the consumer devices on which they were installed.
In April 2020, federal court approved the record-breaking $5
billion penalty Facebook Inc. agreed to in 2019 to settle charges that the company
violated a 2012 FTC order by deceiving users about their ability to control the privacy
of their personal information. The FTC also formally approved the amendments to
its 2012 privacy order with Facebook to include the provisions incorporated in the
settlement the Commission announced with the social network platform in July 2019.
Separately, the FTC issued an Opinion and Order against Cambridge Analytica for
deceiving consumers about the collection of Facebook data and compliance with the
2019 to a settlement with former Cambridge Analytica CEO Alexander Nix and app
developer Aleksandr Kogan, who also worked with Cambridge Analytica, restricting
how they conduct any business in the future and requiring them to delete or destroy
any personal information they collected from Facebook users.
highlighting the latest research and trends in consumer privacy and data security.
PrivacyCon 2020 focused in particular on the privacy of health data collected, stored,
records, devices such as blood pressure or heart rate monitors, and information
provided by consumers themselves. The data practices of some apps, however, may
also pose risks to the privacy and security of consumers’ health data.
Kohl’s Department Stores, Inc. agreed to pay a civil penalty of
$220,000 to settle FTC allegations that the Wisconsin-based retailer violated the Fair
Credit Reporting Act (FCRA) by refusing to provide complete records of transactions
Fiscal Year 2022 Congressional Budget Justication - Overview18
to consumers whose personal information was used by identity thieves. This is the
which requires companies to provide victims of identity theft with application and
business transaction records about fraudulent transactions made in their names
within 30 days.
The FTC maintains the federal government’s central repository for identity theft
a toll-free number (1-877-ID-THEFT). Trained counselors advise identity theft victims
about their rights and the remedies available to them under federal law. Identity
theft victims can go online to the FTC’s IdentityTheft.gov website and get a free,
FTC’s consumer complaint system, allowing consumers who are victims of identity
recovery that helps streamline many of the steps involved. Victims can create user
accounts, get detailed, custom recovery plans based on their unique experiences, and
create the documents they need to alert police, the nationwide consumer reporting
agencies, and the Internal Revenue Service (IRS).
Consumers can report identity theft to the IRS electronically through the FTC’s
IdentityTheft.gov website. Tax-related identity theft happens when someone uses a
IRS Identity Theft Affidavit, also known as IRS
Form 14039, before the IRS can begin to resolve the problem.
Starting in October 2019, many members of the military received access to free
electronic credit monitoring, which can help them spot identity theft. In response to
a new FTC Rule implementing a 2018 law, the nationwide credit reporting agencies—
Equifax, Experian, and TransUnion—are providing free electronic credit monitoring
services to active duty service members and National Guard members. Credit
monitoring services can alert consumers to mistakes or problems with their credit
obtain credit.
The Department of Justice on behalf of the FTC sued
MyLife.com, Inc., a California-based purveyor of background reports, alleging that the
company has deceived consumers with “teaser background reports” that often falsely
claimed to include information about arrest, criminal, and sex offender records, and
also engaged in misleading billing and marketing practices. The complaint alleges that
MyLife has violated the FCRA by, among other things, failing to maintain reasonable
procedures to verify how its reports would be used, to ensure the information was
accurate, and to make sure that the information it sold would be used only for legally
permissible purposes.
The FTC held a public workshop to examine
voice cloning technologies, which enable users to make near-perfect reproductions
of a real person’s voice. “You Don’t Say: An FTC Workshop on Voice Cloning
Fiscal Year 2022 Congressional Budget Justication - Overview 19
technologies. For example, voice cloning could be used to enable people who have lost
the ability to speak to communicate using technology that simulates a cloned version
of their own voice. These same technologies, however, could be misused by scammers
to impersonate others.
The FTC held a virtual workshop seeking input on
proposed changes to the Gramm-Leach-Bliley Act’s Safeguards Rule, which requires
information security program.
The FTC held a virtual workshop examining the
portability. Data portability gives consumers more control over their data, allowing
health information, favorites, friends, or content posted on social media from one
service to another or to themselves.
Arete Financial Group, the operators of a student loan
debt relief scheme, will pay at least $835,000 to settle FTC allegationsthat they
charged illegal upfront fees and made false promises to consumers struggling
with student loan debt. In its complaint, the FTC alleged that Arete and the other
deceptively promised loan forgiveness, consolidation, and repayment programs to
reduce or eliminate monthly payments and principal balances. Litigation continues
against other defendants in the case.
Three defendants in the student loan debt relief scheme, Impetus Enterprise, Inc.
agreed to be banned from telemarketing and selling debt relief. A federal court found
that Brian Colombana, Impetus Enterprise, Inc., and Fig Tree & Co., LLC deceptively
marketed student loan debt relief services to consumers and tricked them into paying
illegal upfront fees by promising to reduce or eliminate their student loan debt, and
then failed to deliver the promised debt relief. The court entered judgments against
the defendants totaling over $10.7 million.
California-based student loan debt relief companies SLAC, Navloan, and Student Loan
Assistance Center and their owner, Adam Owens, agreed to be permanently banned
from the debt relief business to settle FTC charges that they falsely promised to lower
or eliminate consumers’ student loans in return for an illegal upfront fee. The FTC
also alleged the defendants failed to disclose that they paid consumers for positive
Better Business Bureau reviews. The settlement includes a judgment of $23.9 million,
which is partially suspended after the defendants turn over more than $470,000 in
assets.
A federal court ruled in favor of the FTC in a case against Elegant Solutions, Inc., the
operators of student loan debt relief scheme. The court found the operators falsely
claimed that consumers’ loans would be forgiven or their payments reduced to a
Fiscal Year 2022 Congressional Budget Justication - Overview20
and apply most or all of consumers’ monthly payments to pay down their student
loans. The defendants then charged consumers hundreds to thousands of dollars in
illegal upfront fees. The defendants also obtained consumers’ student loan credentials
to log in and change consumers’ contact information, effectively hindering or entirely
preventing consumers’ loan servicers from communicating with consumers. The
businesses and imposes a $27.6 million judgment.
Global Asset Financial Services Group, LLC,
the operators of a scheme that conned consumers into paying non-existent debts,
agreed to be permanently banned from the debt collection business and from
misleading consumers about debt. The settlements also include monetary judgments
totaling approximately $25.5 million. Most of the judgments are suspended due to
the defendants’ inability to pay, except for a $3.1 million judgment against one of the
defendants’ companies, Regional Asset Maintenance, LLC.
A federal court ruled in favor of the FTC in
the case against Consumer Defense, LLC and imposed an $18.5 million judgment
against the defendants. The order also includes a permanent ban from the debt relief
services they may offer, as well as from making misleading claims in advertisements.
by falsely promising to make their mortgages more affordable. The defendants also
charged consumers illegal advance fees and unlawfully told consumers not to pay
their mortgages to or communicate with their lenders.
The FTC charged a payday lending enterprise with deceptively
overcharging consumers millions of dollars and withdrawing money repeatedly from
consumers’ bank accounts without their permission. According to the FTC, the eleven
defendants, through Internet websites and telemarketing, and operating under the
used deceptive marketing tactics to convince consumers that their loans would be
consumers found that long after the promised number of payments had been made,
First Data Merchant Services, LLC (First Data), one of the
biggest payment processing companies, and its former executive agreed to pay more
than $40.2 million to settle FTC charges they knowingly processed payments and
laundered, or assisted laundering of, credit card transactions for scams that targeted
hundreds of thousands of consumers. The FTC alleged First Data ignored repeated
warnings from employees, banks, and others that Chi “Vincent” Ko, through his
company that served as an independent sales agent for First Data, was laundering
(with First Data assisting and facilitating) payments for companies that were
breaking the law over a number of years.
Fiscal Year 2022 Congressional Budget Justication - Overview 21
Qualpay, Inc., a payment processor that allegedly ignored clear warning signs its
client was operating an unlawful business coaching and investment scheme, agreed
to a settlement banning it from processing payments in the business coaching
Qualpay processed payments for MOBE, a scheme the FTC alleged charged consumers
hundreds of millions of dollars for worthless business coaching products, and ignored
numerous signs that MOBE was a fraudulent business.
Madera Merchant Services, LLC, a rogue payment processor, agreed to a permanent
ban from payment processing to settle charges by the FTC and State of Ohio that it
unlawfully processed payments for multiple scam operations. The settlement also
includes a monetary judgment of more than $8.6 million, which is mostly suspended
upon the surrender of the contents of a number of bank accounts, along with
defendants’ personal property.
A Canadian company, RevenueWire, and its CEO, Roberta
Leach, agreed to pay $6.75 million to settle FTC charges they laundered credit card
payments for, and assisted and facilitated, two tech support scams previously sued
by the FTC. According to the FTC, RevenueWire entered into contracts with payment
processors to obtain merchant accounts to process credit card charges for its own
sales of eBooks and software. The contracts prohibited RevenueWire from submitting
third-party sales through its merchant accounts. In reality, RevenueWire used its
accounts to process credit card charges and collect payments from consumers on
behalf of ICE and Vast, two companies that allegedly used tech support scams to bilk
consumers out of millions of dollars.
Grand Teton Professionals, the operators of a bogus
credit repair scheme, agreed to be banned from the credit repair business and subject
to a wide array of other requirements under settlement terms with the FTC. The
FTC alleged the defendants charged illegal upfront fees and falsely claimed to repair
consumers’ credit. The three settlement orders entered in the case also impose
judgments of approximately $13.8 million that will be partially suspended upon
payment of bank, investment, merchant, and cryptocurrency accounts.
Progressive Leasing, a company that markets rent-to-own
payment plans in tens of thousands of retail stores nationwide, agreed to pay $175
million to settle FTC charges it misled consumers about the true price of items
purchased through its plans. The FTC alleged advertisements and salespeople
promoted 90-day “same as cash” prices to entice consumers to buy from stores
using Progressive Leasing as the form of payment. However, according to the FTC,
consumers usually wound up paying much more than the ads and salespeople told
them they would.
New Mexico, must cease business operations as part of a court-approved settlement
Chapter 7 bankruptcy proceedings and are under the control of a bankruptcy trustee.
Fiscal Year 2022 Congressional Budget Justication - Overview22
The settlement includes a monetary judgment of $7.2 million against the defendants
and makes the Commission an unsecured claimant in the bankruptcy proceedings.
fuel card services to businesses, and its CEO Ronald Clarke, for allegedly charging
customers at least hundreds of millions of dollars in hidden fees after making false
promises about helping customers save on fuel costs. The complaint outlines a broad
array of fees that the defendants have charged customers in ways that customers did
not detect. The fees, despite the defendants’ promises, often have been charged on a
per-transaction basis or have been required for membership in FleetCor’s programs.
The FTC and Consumer Financial
Protection Bureau hosted a public workshop to discuss issues affecting the
accuracy of both traditional credit reports and employment and tenant background
screening reports. The workshop brought together stakeholders, including industry
representatives, consumer advocates, and regulators, for a wide-ranging public
discussion on the many issues impacting the accuracy of consumer reports.
New York City
car dealer Bronx Honda and its general manager, Carlo Fittanto, agreed to pay
$1.5 million to settle FTC charges they discriminated against African-American
and Hispanic car buyers and engaged in numerous other illegal business practices.
According to the FTC’s complaint, the defendants told salespeople to charge
The defendants told employees that these groups should be targeted due to their
limited education, and not to attempt the same practices with non-Hispanic white
consumers. The complaint alleged that African-American consumers were charged
about $163 more in interest than similarly situated non-Hispanic white consumers,
while Hispanic consumers were charged about $211 more in interest.
Scams Targeting Older Americans: The FTC released the report, “Protecting Older
Consumers 2018-2019: A Report of the Federal Trade Commission,” outlining the FTC’s
research, law enforcement, and education efforts aimed at protecting older consumers. The
report shows that adults aged 60 and older are less likely to report losing money to fraud
than younger adults, but the amount of money they report losing is on the rise. Protecting
older consumers in the marketplace is one of the FTC’s top priorities. In conjunction with
the report, the FTC released a new interactive infographic that allows the public to look at
the FTC’s data about how fraud affects consumers of various age groups. This new graphic
shows differences in reports and losses, as well as the top categories of frauds reported by
various age groups.
Online Trading Academy will be required to offer debt
forgiveness to thousands of consumers who purchased its “training programs,” while
the company’s founder and other individuals will together pay between $5 and $9.1
Fiscal Year 2022 Congressional Budget Justication - Overview 23
million and turn over assets under the terms of a settlement with the FTC that is
sued California-based investment training scheme Online Trading Academy (OTA)
for allegedly using false or unfounded earnings claims to sell “training programs”
costing as much as $50,000. OTA collected more than $370 million from consumers
nationwide within the last six years. According to the FTC, OTA misrepresented that
it had a patented “strategy” that anyone can use to generate substantial income from
customers, and the FTC alleged that OTA’s own surveys indicate that its customers
were not making the type of income OTA advertised. Trading data from a platform
used by OTA customers also suggested that the vast majority of OTA’s customers did
not make any money, and many lost money on top of the money they paid OTA.
Corporate Compliance Services, the operators of
a scheme that targeted new businesses across the country with bogus threats of
direct mail under a settlement with the FTC and the State of Florida. The FTC
and the State of Florida alleged that Thomas Henry Fred, Jr., and three companies
that he owns, sent thousands of businesses mailers designed to look like invoices
from a government agency for labor law posters. The defendants’ mailers directed
businesses to pay $84 for labor law posters and threatened that, “Failure to comply
for free from government agencies. Separately, at the request of the FTC, a federal
court halted On Point Global LLC, a scheme in which the defendants operated
hundreds of websites that promised a quick and easy government services, such as
an evidentiary hearing, the court held that the FTC was likely to prevail in proving
that “the websites were patently misleading.”
The key perpetrators of a massive international
business coaching scheme known as My Online Business Education (MOBE) agreed
to surrender millions of dollars in assets as part of settlements with the FTC. The
FTC alleged that MOBE, a Malaysian company, lured consumers to join its online
coaching program by promising a pathway to online entrepreneurship and vast riches
on the Internet, but then charged these consumers tens of thousands of dollars for
worthless program membership upgrades. The order against MOBE founder Matthew
Lloyd McPhee includes a permanent ban from selling business coaching programs
and investment opportunities, along with a requirement to surrender more than
$16 million from his personal and company accounts, along with his foreign real
estate interests. In another order, the estate of deceased defendant Russell Whitney
surrendered more than $1.3 million held in Whitney’s various accounts to the FTC.
MOBE scheme agreed to surrender more than $4 million to settle FTC charges.
enticing thousands of consumers to pay as much as $60,000 for MOBE “mentoring”
Fiscal Year 2022 Congressional Budget Justication - Overview24
services, using false claims and misleading testimonials about how much money they
could make. The defendants advertised on social media, YouTube, online news sites,
In another case, Position Gurus, LLC and Top Shelf Ecommerce, the operators of a
business coaching scheme, agreed to settle FTC charges that they targeted consumers
who were trying to start new businesses online and used deception to sell them
bogus marketing products and services. The settlement orders impose judgments
ranging from $11.1 million to $16.3 million and are partially suspended upon
payment of approximately $1.2 million.
Production Media Company, the Ferraro Group
Corp., and their owner agreed to settle FTC charges that they deceptively pitched
“exclusive” advertising placements to small businesses and misled them about when
the ads would be printed and distributed. The settlement order bans the defendants
from the deceptive conduct and imposes a $22.2 million judgment that will be
partially suspended upon payment of $100,000.
as Richmond Capital Group, LLC, and also doing business as Viceroy Capital Funding
misrepresenting the terms of merchant cash advances they provided, and then
used unfair collection practices, including sometimes threatening physical violence,
to compel consumers to pay. The FTC also alleges that the defendants have made
of merchant cash advances, for allegedly using deception to lure small business
customers, then regularly withdrew money from their accounts without consent even
after the customers had repaid the money they owed. Merchant cash advances are
front in exchange for a larger amount repaid through daily automatic payments. The
FTC alleged that Yellowstone regularly withdrew hundreds or thousands of dollars
from businesses’ accounts for days after customers had repaid the full amounts owed
in their contracts. In some cases, Yellowstone would only refund this money when
businesses complained, and even then, the refunds could take weeks or months,
leaving small businesses without needed cash on hand. In April of 2021, Yellowstone
Capital agreed to pay more than $9.8 million to settle these allegations
Transact Pro, a Latvian payment processor, and its former
CEO, agreed to a $3.5 million judgment to settle FTC charges that they engaged
in unlawful conduct that enabled a deceptive “free trial” offer scheme by the U.S.-
based Apex Capital defendants. Last year, the Apex Capital defendants agreed to a
settlement that included surrendering assets valued at between $3 million and $6
million. Separately, the FTC sued the operators of a Pennsylvania-based telemarketing
Fiscal Year 2022 Congressional Budget Justication - Overview 25
newsletter subscriptions they never ordered. The FTC’s complaint also names the
defendants behind a New York-based debt collection operation, International Credit
pay for the unordered merchandise.
agency’s Contact Lens Rule, which facilitates shopping for contact lenses by requiring
prescribers to automatically provide a copy of a patient’s prescription to the patient
provided.
The FTC continues to place a priority on aggressively enforcing its orders against repeat
offenders and refers matters to criminal authorities as appropriate.
The FTC won a $120.2 million judgment against the primary
FTC history. The defendants, including Andres Pukke (the primary defendant in the
Ameridebt case), sold lots in a purported luxury development in remote southern
if any, amenities. After a four-week trial, the court held all of the trial defendants
liable on all counts in the de novo action; found judgment in the amount of $120.2
million; found Pukke and his business partner in contempt for violations of the
Ameridebt order; and stated that Pukke will receive a complete real estate ban and
a telemarketing ban, while the other defendants will receive telemarketing bans and
partial real estate bans.
Laboratories, LLC, Whole Body Supplements, LLC, and their owner Kramer Duhon
for allegedly continuing to promote dietary supplements using unproven claims
that they can treat and cure diseases, in violation of a 2018 FTC settlement order.
The contempt motion states the defendants violated the order by claiming, without
Garlic Botanicals supplements could treat, cure, or mitigate cardiovascular disease,
atherosclerosis, and hypertension.
Alliance Security Inc. (Alliance), which the agency charged with causing more
than one million calls to numbers on the National Do Not Call (DNC) Registry.
The complaint also alleged that Alliance performed illegal credit inquiries on
unsuspecting potential customers. The order bans Gotra from nearly all outbound
telemarketing, prohibits him from violating the FCRA, and bars him from
Fiscal Year 2022 Congressional Budget Justication - Overview26
a $9.85 million civil penalty, of which Gotra will pay $88,000, based on his limited
and settled similar FTC allegations in a 2014 court order when they were known as
Versatile Marketing Solutions, Inc.
million and be banned from negative option marketing in order to settle FTC
allegations that the company’s deceptive sales and billing practices violated federal
law and a 2016 federal court order from a prior FTC case. According to the FTC’s
complaintand proposed contempt order, NutraClick and the other defendants
Rule, and the previous court order, by failing to clearly and conspicuously disclose
all material terms of their negative option sales offers, despite agreeing to do so in
the 2016 order. The $1.04 million that the defendants will pay under the settlement
represents 100 percent of the consumer harm they caused, as well as the total
revenue made through their allegedly deceptive conduct.
The FTC continues to refer egregious violators to criminal law
enforcement agencies for prosecution. In FY 2020, FTC staff actively worked on 163
new formal requests for cooperation from our criminal law enforcement partners,
including 84 federal, 67 state, and 12 local requests. Prosecutors relied on FTC
information and support to charge 39 new defendants and obtained 24 new pleas
or convictions. Fifteen defendants received sentences totaling 495 months. Two of
these defendants, Canadian nationals Mark El Bernachawy and Clifford Kirstein,
were sentenced after extradition to the United States for conning older Americans
help. Two other defendants, Aminullah Sarpas and Samuel Bain, were prosecuted for
of 12 years and 5 years, respectively.
In addition to conducting analysis on the economic effects of consumer protection
enforcement actions, the FTC conducts research and outreach on the economics of
consumer protection more generally. In October 2019, the Bureau of Economics published
the results of its most recent comprehensive survey examining the prevalence of mass-
market consumer fraud, how it is perpetrated, and what factors are associated with
a greater likelihood that a consumer may fall victim to fraud. In November 2019, the
Commission hosted its Twelfth Annual Microeconomics Conference, convening researchers,
regulators, and others to discuss antitrust and consumer protection policy issues that FTC
economists encounter in their work.
Strong cross-border cooperation is critical to effective law enforcement. Despite challenges
with numerous consumer protection investigations, litigations, and enforcement-related
projects. OIA also continued to develop strong bilateral relationships with foreign
Fiscal Year 2022 Congressional Budget Justication - Overview 27
consumer, privacy, and law enforcement authorities around the globe and represented the
global consumer policy and enforcement issues, online frauds, digital advertising, and
privacy and data security.
• The FTC cooperated with a wide range of foreign agencies and multilateral
actions involving large-scale international frauds. These include the FTC’s litigation
against a sprawling international scheme, On Point Global LLC, which operated
hundreds of websites that promised consumers a quick and easy government service,
Revenue Wire and its CEO, which paid $6.75 million to settle charges they laundered
credit card payments for, and assisted and facilitated, two tech support scams
Educare Centre Services, Inc., that sold sham credit card interest rate reduction
services to U.S. consumers through Dominican Republic-based telemarketers and also
used a Canada-based VoIP provider. In these and many other matters, the FTC used its
authority under the U.S. SAFE WEB Act (SAFE WEB) to share information or provide
investigative assistance to foreign authorities.
• The FTC also expanded its online tools for sharing data about international scams,
launching two new, interactive dashboards providing details about international
complaints submitted to Consumer Sentinel as well as econsumer.gov, a site created
by members of the International Consumer Protection and Enforcement Network
(ICPEN) to gather and share consumer complaints about international scams. These
complaints help inform the FTC’s enforcement efforts. For example, the agency
received hundreds of complaints from consumers located in Canada and more than
retailer Fashion Nova for its ecommerce practices. The company paid $9.3 million to
settle the FTC’s allegations that it failed to notify customers about shipping delays
and offer them the right to cancel with a full refund—not just a gift card or a store
credit.
• The agency also worked closely with our foreign counterparts on COVID-19 matters,
including by sharing information and consumer education on COVID-19 scams with
international consumer networks such as ICPEN, the International Mass Marketing
Fraud Working Group, the Unsolicited Communications Enforcement Network, and
the Global Privacy Enforcement Network. For example, the FTC assisted ICPEN’s fraud
prevention efforts by raising awareness of COVID-19 scams through Twitter, data
analysis, and consumer information on econsumer.gov. Consumer agencies around
the world—from Costa Rica to Korea to Turkey to Zambia—shared this information
on social media networks. The FTC also contributed to a policy note by the
protecting
online consumers during the COVID-19 crisis, which is part of the OECD’s response to
Fiscal Year 2022 Congressional Budget Justication - Overview28
tackling the effects of the coronavirus on the economy. Apart from COVID-19-related
of participating authorities and strengthen the use of data (including consumer
complaint data) and technology to support the networks’ cross-border enforcement
cooperation activities.
• On the enforcement front, the FTC referred to foreign counterparts its warning letters
to foreign companies that made unsubstantiated claims that their products and
therapies can treat or prevent COVID-19. In response, some foreign agencies issued
their own cease-and-desist letters or took other actions. Most of the foreign entities
that received warning letters have complied with the FTC’s request that they cease
making all such claims for products that they advertise, market, sell, or otherwise
promote or make available in the United States. We also obtained enforcement
cooperation from some foreign regulators with respect to foreign VoIP providers that
facilitated illegal coronavirus robocalls.
• In the policy arena, the FTC has continued to work to develop market-oriented
work. Bilaterally, the FTC provided informal input to agencies developing legislation
on digital and privacy issues, and participated in negotiating consumer protection
provisions in free trade agreements with the U.K. and Kenya. Multilaterally, the
FTC provided comments on a range of policy issues and played a key role in the
development of new policy reports and instruments. For example, the FTC took a
leading role in the privacy and consumer protection work of the OECD, including
championing empirical work on measuring the benefits of consumer protection and
providing its experience with children’s privacy issues in connection with the OECD’s
ongoing review of its guidelines on protecting children online. FTC staff has also
actively engaged in consumer protection issues related to the Internet Corporation
domain names, including issues relating to Whois data and privacy laws.
• The FTC continued its work to protect consumer privacy in cross-border data
in the third annual review of the EU-U.S. Privacy Shield Framework and brought
eight enforcement actions against U.S. companies for making false claims about
their participation in the program and for otherwise violating the Privacy Shield’s
substantive requirements. On July 16, 2020, the European Court of Justice issued a
judgment declaring invalid the European Commission’s Decision 2016/1250/EC of
July 12, 2016 on the adequacy of the Framework. This decision does not change the
fundamental principles of privacy and data security under Section 5 and the other
statues and rules the FTC enforces or companies’ obligation to comply with their
privacy commitments, including commitments made for data transfers under Privacy
Shield. The agency continues to expect companies to comply with their ongoing
obligations with respect to transfers made under the Privacy Shield Framework.
Fiscal Year 2022 Congressional Budget Justication - Overview 29
• During FY 2020, the FTC conducted several technical assistance missions and
capacity-building training sessions for developing consumer protection and privacy
agencies, supported by a mix of funding sources, including in-kind donations from
the recipient agencies. The FTC’s technical assistance programming included in-
person training sessions in Argentina, Chile, India, Paraguay, and Uruguay. Due
capacity-building programs with agencies in Bahrain, the Bahamas, and Singapore.
These sessions provided foreign regulators and law enforcers with information on the
FTC’s approach to emerging digital consumer protection issues, as well as practical
investigational skills and tools for cross-border cooperation.
•
International Fellows from Canada and Zambia, who worked directly with agency
staff on consumer protection matters.
In FY 2020, the CRC handled more than 48,000
inquiries and complaints from consumers and businesses each week, for a total of 2.5
million complaints and inquiries.
In FY 2020, more than 8.3 million fraud,
Over 3,000 law enforcement users worldwide have access to CSN.
The Registry has continued to protect consumers from
receiving unwanted commercial telemarketing calls. In FY 2020, the number of
telephone numbers on the Registry exceeded 241 million.
that promote the interests of consumers and highlighting the role consumer and empirical
research might play in their decision-making. For example, the FTC staff provided a
comment to the National Institute of Standards and Technology’s (NIST) “Preliminary
Draft for Privacy Framework: A Tool for Improving Privacy through Enterprise Risk
Management.” The comment commends NIST for proposing a voluntary tool aimed
Fiscal Year 2022 Congressional Budget Justication - Overview30
The FTC vigorously enforces the antitrust laws in a range of sectors of critical importance
to American consumers, including technology, healthcare, energy, consumer goods and
services, and manufacturing. In FY 2020, despite a global pandemic, the agency continued
its vigorous enforcement, bringing thirty competition law enforcement actions, consisting
of twenty-eight merger actions and two conduct actions. Of the agency’s twenty-eight
merger enforcement actions, eleven proposed acquisitions were abandoned or restructured
to address Commission concerns that the original transaction likely would have harmed
competition; these results preserved competition in the markets affected, without resorting
to litigation. In ten merger matters, the Commission issued a consent order requiring
the companies to divest assets to prevent the merger from leading to competitive harm.
The FTC also initiated administrative adjudication against seven mergers that were likely
against the merger in federal court.
In addition to its merger enforcement, the Commission also initiated a federal court action
in one conduct matter, alleging an illegal scheme by a pharmaceutical company to maintain
its monopoly for a life-saving drug. The Commission issued a consent order in a second
conduct matter.
The FTC also advanced its competition mission through its policy program, hosting three
important workshops on competition topics, publishing three competition-focused reports,
and pursuing advocacy opportunities to promote competition and educate stakeholders
Division jointly issued Vertical Merger Guidelines. These newly issued guidelines are a
important source of guidance to the business community and other stakeholders.
The FTC continued to monitor and enforce compliance with consent orders, as well as with
merger and acquisition reporting obligations under the Hart-Scott-Rodino (HSR) Act. The
agency brought one civil penalty action against Alimentation Couche-Tard Inc. (ACT) and a
penalties to settle charges that they violated a 2018 consent order requiring the divestiture
of 10 retail fuel stations in Minnesota and Wisconsin prior to consummating its acquisition
of 380 such stations in 10 states from Holiday Companies. According to the complaint,
ACT and CAPL failed to divest stations in 9 of the 10 markets subject to the order, failed to
inaccurate and incomplete compliance reports.
In FY 2020, prior to the pandemic, the FTC was on pace for another year with a high volume
Fiscal Year 2022 Congressional Budget Justication - Overview 31
review despite building closures and pandemic-driven challenges. The number of incoming
pre-pandemic levels; as a result, staff resources remain extremely stretched.
The healthcare and pharmaceutical sectors were again a priority area for competition
enforcement. In general, the FTC works to promote competition in healthcare by
eliminating impediments to entry by generic drug producers, stopping illegal conduct by
providers of healthcare products and services, preventing anticompetitive mergers in the
industry, and using its policy tools to advocate for sound competition policy within the
United States and globally where appropriate.
During FY 2020, the FTC reviewed
numerous proposed and consummated acquisitions in the pharmaceutical and
medical device industries and took action to preserve competition that otherwise
would have been lost due to these transactions. For example, in December 2019, the
Commission issued an administrative complaint alleging that Illumina Inc. sought
to unlawfully maintain its monopoly in the U.S. market for next-generation DNA
a nascent competitor. According to the complaint, Illumina, the leading provider
of NGS products using predominant short-read sequencing technology, sought to
eliminate current and future competition from PacBio’s long-read sequencing-based
through which Illumina stands to lose increasing sequencing volumes in the future.
court to enjoin the transaction pending an administrative proceeding. In the face of
the Commission’s challenge, the parties abandoned their proposed transaction in
January 2020.
In a second medical device matter, the Commission issued a consent order to resolve
concerns that Ossur HF’s proposed acquisition of College Park Industries would have
harmed U.S. customers for myoelectric elbows. According to the complaint, the HSR
non-reportable transaction threatened to reduce competition in an already highly
concentrated market for the prosthetic devices, which use electromyographic signals
and battery-powered motors to provide patients with easier and more natural control
over their limbs. The order required College Park to divest its myoelectric elbow
2020.
In a pharmaceutical matter, the Commission issued a consent order requiring a
record $13.4 billion divestiture to remedy competitive concerns raised by Bristol-
Myers Squibb Company’s (BMS) proposed acquisition of Celgene Corporation.
According to the complaint, the acquisition would have harmed consumers in the
Fiscal Year 2022 Congressional Budget Justication - Overview32
U.S. market for oral treatments for moderate-to-severe psoriasis in which BMS has a
Psoriasis is a chronic disease caused by an overactive immune system, resulting in
business and all related regulatory approvals, intellectual property, contracts, and
inventory to Amgen, Inc.
In May 2020, the Commission issued a consent order settling charges that AbbVie
Inc.’s proposed $63 billion acquisition of Allergan would harm competition in
violation of federal antitrust laws. According to the complaint, the FTC alleged
that the deal would likely have resulted in substantial harm to competition in the
the four manufacturers of EPI treatments and together held a 95 percent market
share prior to the proposed acquisition. The complaint further alleged that the
acquisitions would eliminate future competition between the parties for a class of
pharmaceuticals used in the treatment of moderate-to-severe Crohn’s disease and
ulcerative colitis. The Commission order requires AbbVie and Allergan to divest to
Nestle, S.A., all assets related to Allergan’s EPI drugs Zenpep and Viokace. The order
also requires Allergan to transfer to AstraZeneca plc. all of its rights and assets related
competition in these important markets.
In another matter, Danaher Corporation agreed to divest assets to settle FTC charges
that its proposed acquisition of General Electric’s biopharmaceutical business, GE
Biopharma, would substantially lessen competition in ten highly concentrated U.S.
biopharmaceutical markets in violation of federal antitrust laws. The Commission’s
order to preserve competition required Danaher to divest to Sartorius AG all
rights and assets related to the following products: 1) microcarrier beads used in
cell culture bioprocessing, 2) conventional low-pressure liquid chromatography
columns and skids, 3) single-use low pressure liquid chromatography skids,
4) chromatography resins, 5) low-pressure liquid continuous chromatography
The FTC continued vigorous enforcement against
anticompetitive mergers and acquisitions of healthcare providers. This year, the
FTC issued an administrative complaint challenging a proposed merger between
Jefferson Health and Albert Einstein Healthcare Network, two leading providers of
inpatient general acute care hospital and rehabilitation services in the Philadelphia,
PA area. According to the complaint, the merger would eliminate the head-to-head
competition that drives improvements in quality and service, upgraded facilities, and
investment in technology and innovation in Philadelphia and Montgomery counties,
resulting in the parties controlling 60 and 40 percent of general acute care services
preliminary injunction to enjoin the transaction pending a full administrative hearing.
Fiscal Year 2022 Congressional Budget Justication - Overview 33
The district court denied the Commission’s request for a preliminary injunction in
December 2020. In a second matter, the Commission closed its in-depth investigation
into Aveanna Healthcare’s proposed acquisition of Maxim Healthcare after the parties
abandoned their transaction in the face of Commission allegations that the deal
would have diminished competition in the both the labor markets and downstream
markets for private duty nursing services, increasing the likelihood of coordination in
numerous local and regional areas throughout the United States.
In February 2020, the Commission issued a consent order
under which veterinary service providers Compassion First and National Veterinary
Associates agree to divest to MedVet Associates three facilities in 1) Asheville, NC/
Greenville, SC, 2) Norwalk, CT/Yonkers, NY, and 3) Fairfax/Manassas, VA. This order
settles FTC charges that the proposed acquisition would have harmed competition in
emergency and other specialty veterinary services in these three regions.
In July 2020, the FTC required global suppliers of animal
products, Elanco Animal Health, Inc. and Bayer Animal Health GmbH, to divest
all assets related to three animal health products to settle charges that Elanco’s
proposed $7.6 billion acquisition of Bayer would likely be anticompetitive. According
to the complaint, the acquisition would have harmed competition in the U.S. markets
The FTC continued to engage in
vigorous antitrust enforcement to combat anticompetitive reverse payment patent
settlements, also known as “pay-for-delay” tactics, in which a brand name drug
company pays a potential generic competitor to delay its entry into the market.
The Commission continues to develop the law on reverse payment settlements
following a series of broad settlements in FY 2019, pursuant to the Supreme Court’s
scrutiny. In March 2019, the Commission ruled in an administrative proceeding that
Impax Laboratories entered an illegal agreement to delay its generic version of brand
name pain medication Opana ER in exchange for the brand’s commitment not to
decision, the Commission explained that under Actavis, eliminating the risk of
competition through a reverse payment settlement itself constitutes anticompetitive
agreement related to the restraint at issue rather than the settlement as a whole. In
May 2019, Impax petitioned for review of the Commission’s order in the Fifth Circuit.
decision on April 13, 2021.
in a sham litigation matter. In FY 2018, the U.S. District Court for the Eastern District
of Pennsylvania granted the Commission’s request for a permanent injunction in
FTC v. AbbVie, and awarded $448 million in equitable monetary relief to consumers
harmed by AbbVie’s use of baseless “sham” patent infringement lawsuits. AbbVie
Fiscal Year 2022 Congressional Budget Justication - Overview34
appealed the court’s judgment, and the FTC appealed the court’s pre-trial dismissal
of allegations that AbbVie also entered into a reverse payment settlement to delay
generic competitors from introducing lower-priced versions of the testosterone
replacement drug AndroGel. Oral argument in the Third Circuit took place in January
2020. In September 2020, the Third Circuit reinstated the FTC’s reverse payment
the district court’s monetary judgment and upheld the court’s denial of an injunction.
In December 2020, the Third Circuit remanded the case back to the district court.
seek a permanent injunction and equitable monetary relief to halt an elaborate
anticompetitive scheme to preserve a monopoly for a life-saving drug. The FTC’s
complaint alleges that after acquiring the rights to Daraprim, the gold standard
treatment for toxoplasmosis, Vyera Pharmaceuticals, LLC immediately raised the
price 4,100 percent and engaged in a series of unlawful tactics to prevent competitive
entry, including distributional restraints and interference with FDA-mandated
bioequivalence testing. The complaint further charges that Vyera signed data blocking
whether development of an alternative treatment is worth pursuing. Toxoplasmosis
is a potentially fatal parasitic infection that is particularly threatening for individuals
with compromised immune systems, such as HIV/AIDS and cancer patients and
recipients of organ transplants. This matter is currently pending in federal court.
The Commission continued to take action to preserve competition in the consumer goods
and services sector.
complaint challenging Post Holding, Inc.’s proposed acquisition of TreeHouse Foods,
Inc.’s private label ready-to-eat cereal business. According to the complaint, the deal
would have given Post more than a 60 percent share of the already concentrated
U.S. market for these products, removing the competitive pressures that lead to
high quality and lower priced cereals for American families. The Commission also
prevent consummation pending the conclusion of an administrative proceeding. In
the face of the FTC’s challenge, the parties abandoned their proposed acquisition and
the Commission dismissed its complaint.
In February 2020, the Commission issued an administrative complaint and
of Harry’s Inc. by competitor Edgewell Personal Care Company, manufacturer of
disruptive and innovative rival that has driven down prices and spurred innovation
in the otherwise duopolistic U.S. market for the manufacture and sale of men’s and
wet shave brand, and in 2016, entered into brick-and-mortar retail stores. The parties
Fiscal Year 2022 Congressional Budget Justication - Overview 35
abandoned their acquisition in the face of the FTC’s challenge and the Commission
subsequently dismissed its complaint.
Altria Group, Inc. and JUUL Labs, Inc. entered into a series of agreements, including
Altria’s acquisition of a 35 percent stake in JUUL, that eliminated competition
in violation of federal antitrust laws. According to the complaint, this series of
agreements involved Altria ceasing to compete in the U.S. market for closed-system
electronic cigarettes in return for a substantial ownership interest in JUUL, by far the
dominant player in that market. This matter is currently pending in administrative
adjudication.
In January 2020, the FTC issued an administrative complaint
challenging Axon Enterprise, Inc.’s consummated acquisition of its body-worn camera
systems competitor VieVu, LLC. Before the acquisition, the two companies competed
to provide body-worn camera systems to large, metropolitan police departments
across the United States. According to the complaint, Axon’s May 2018 acquisition
reduced competition in an already concentrated market. In April 2020, the
Commission entered a consent agreement with VieVu’s parent company, Safariland,
pending in administrative adjudication.
In July 2020, Casino operator Eldorado Resorts, Inc. agreed to divest
assets to settle charges that its $17.3 billion acquisition of Caesars Entertainment
Corporation likely would be anticompetitive in the South Lake Tahoe area of Nevada,
the Bossier City-Shreveport area of Louisiana, and the Kansas City area of Kansas
and Missouri. According to the complaint, the proposed acquisition would harm
competition for casino services in these three local markets, increasing the likelihood
that Eldorado would unilaterally exercise market power, which in turn would lead to
higher prices for consumers, and reduced quality.
In May 2020, rent-to-own retail store operators Aaron’s Inc.,
Buddy’s Newco, LLC, and Rent-A-Center, Inc. agreed to settle FTC charges that they
negotiated and executed reciprocal purchase agreements in violation of federal
antitrust law. The complaints allege that from June 2015 to May 2018, Aaron’s,
Buddy’s, and Rent-A-Center each entered into these anticompetitive agreements with
each other and other competitors. The orders prohibit the rent-to-own companies
and their franchisees from entering into any reciprocal purchase agreement or
inviting others to do so, and from enforcing the non-compete clauses still in effect
from the past reciprocal purchase agreements.
chemicals and industrial goods.
In FY 2020, polyurethane foam producers FXI Holdings, Inc.
and Innocor, Inc. agreed to divest assets in three markets to settle FTC charges
Fiscal Year 2022 Congressional Budget Justication - Overview36
that FXI’s proposed acquisition of Innocor would substantially lessen competition
in violation of federal antitrust laws. According to the complaint, the deal would
Midwest (Indiana, Michigan, and Ohio), and Mississippi. Low-density foam is bulky
and expensive to ship, making regional supply availability an important market
dynamic. To remedy the transaction’s anticompetitive effects, the Commission’s
Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future
Foam.
markets, which are critically important to American consumers. The FTC continues to
review proposed acquisitions involving energy products.
complaint challenging a proposed joint venture between Peabody Energy Corporation
coal mining operations in the Southern Powder River Basin (SPRB) region of
northeastern Wyoming, eliminating competition between the two major competitors
in the market for thermal coal in the area. SPRB coal is attractive to electric power
producers in the central United States and upper Midwest because the deposits are
relatively inexpensive to extract and contain lesser amounts of sulfur and sodium.
with alternative energy sources such as natural gas, wind, solar, or nuclear fuels. The
transaction pending a full administrative hearing on the merits. The federal court trial
in this matter was held in July 2020, and in September 2020, the court granted the
preliminary injunction and the parties abandoned their transaction.
In June 2020, Tri Star Energy, LLC, Hollingsworth
Oil Company, Inc., C & H Properties, and Ronald L. Hollingsworth, which operate fuel
outlets and convenience stores, agreed to settle FTC charges that Tri Star’s acquisition
of retail outlets and related interests of Hollingsworth would violate antitrust
law. According to the complaint, the proposed acquisition would have harmed
competition for both retail gasoline sales and retail diesel fuel sales in the two local
markets of Whites Creek, Tennessee and Greenbrier, Tennessee. The Commission’s
order required Tri Star to divest to Cox Oil Company, Inc. retail fuel assets in Whites
Creek and Greenbrier within 10 days after Tri Star completed the acquisition.
In another retail fuel matter, Arko Holdings Ltd. and Empire Petroleum Partners, LLC
agreed to divest retail fuel assets in local gasoline and diesel fuel markets across four
states to settle Federal Trade Commission charges that Arko’s proposed acquisition
of Empire would violate federal antitrust law. According to the complaint, retail fuel
Fiscal Year 2022 Congressional Budget Justication - Overview 37
would have disrupted competition in seven local markets in four states, including
Indiana, Michigan, Maryland, and Texas.
In November 2019, as required by the
Energy Policy Act of 2005, the Commission issued its 15th annual “Report on Ethanol
Market Concentration,” addressing the state of ethanol production in the United
States.
Government-imposed impediments can be among the most durable restraints on
competition. Therefore, in response to requests, the FTC advises local, state, and federal
entities on the potential competitive implications of pending governmental actions that
may have a major impact on consumers.
competition advocacy comments, and two advocacy comments that addressed both
competition and consumer protection issues (three to federal government agencies
and seven to state legislators and regulators).
» FTC staff submitted a comment to the Centers for Medicare and Medicaid Services
(“CMS”) on its Interim Final Rule with Comment Period (IFC). The IFC sets
forth policy and regulatory revisions made in response to the COVID-19 public
health emergency. The comment supports the IFC’s provisions that reduce or
eliminate restrictive Medicare payment requirements for telehealth and other
communication technology-based services during the public health emergency.
»
Health Information Technology to comment on the 21st Century Cures Act:
Program Proposed Rule.
» FTC staff continued with its competition advocacy recommending states allow
podiatrists be allowed to work within the scope of their practice. The advocacies
were sent to Ohio, Kansas, Texas, and Massachusetts.
» FTC staff submitted a comment to North Carolina State Board of Dental Examiners
relating to proposed changes that could enhance competition in the provision of
preventive dental care services and provide access to care for those who would
otherwise be unserved.
» FTC staff, together with the staff of the Antitrust Division of the DOJ, submitted
a comment to California raising concerns that California Assembly Bill 1541
would harm competition along the chain of beer distribution in California, to the
detriment of California’s consumers.
Fiscal Year 2022 Congressional Budget Justication - Overview38
» Finally, FTC staff submitted an amicus brief in Staley v. Gilead Sciences, Inc.
During FY 2020, the FTC published reports and issued
working papers addressing competition issues. The FTC and the DOJ Antitrust
Division issued new Vertical Merger Guidelines that outline how the federal antitrust
agencies evaluate the likely competitive impact of vertical mergers and whether
those mergers comply with U.S. antitrust law. These new Vertical Merger Guidelines
mergers. The FTC and the DOJ Antitrust Division also issued a joint statement
detailing an expedited antitrust procedure and providing guidance for collaborations
of businesses working to protect the health and safety of Americans during the
COVID-19 pandemic, as well as guidance regarding labor competition to protect
workers.
In FY2020, the Bureau of Economics hosted its Twelfth Annual
Microeconomics Conference. The two-day workshop brought together scholars
working in areas related to the FTC’s antitrust, consumer protection, and public
policy missions. The agency also hosted a workshop on non-compete agreements in
the workplace which examined antitrust and consumer protection issues. The FTC
held a joint workshop with the FDA on the competitive marketplace for biosimilars.
Vertical Merger Guidelines. The second session was cancelled due to the pandemic,
but people could submit written comments.
In FY 2020, the FTC continued to develop cooperative relationships with foreign antitrust
agencies to ensure close collaboration on cross-border cases and convergence toward
sound competition policies. For example, the FTC engaged on policy issues of common
interest and shared merger enforcement techniques and experience with staff from
Costa Rica, the European Union, France, Germany, Greece, Hong Kong, India, Indonesia,
Israel, Japan, South Korea, Kuwait, Mexico, Morocco, New Zealand, Nigeria, Panama, Peru,
Singapore, South Africa, Taiwan, Ukraine, and the United Kingdom. The FTC continued
to develop tools, facilitate case cooperation, and engage more frequently in deeper
cooperation and coordination on individual matters with foreign counterparts. Notably,
the FTC, with the DOJ, entered into the Multilateral Mutual Assistance and Cooperation
Framework (MMAC) with the competition agencies of Australia, Canada, New Zealand,
and the United Kingdom, representing a new benchmark in cross-border enforcement
cooperation. The Commission also demonstrated its continued leadership in international
fora, hosting an innovative virtual annual International Competition Network (ICN)
conference once an in-person event became infeasible, and serving on an ICN Special
international enforcement cooperation.
Fiscal Year 2022 Congressional Budget Justication - Overview 39
• The FTC continued its robust international enforcement cooperation on cases
anticompetitive conduct cases of mutual concern with counterpart agencies from
13 jurisdictions. Many of these matters involved cooperation with several agencies
to achieve effective, sound, and consistent outcomes. To further its in-depth case
MMAC. The MMAC consists of two parts: a Memorandum of Understanding focused
on improving coordination and collaboration among the agencies, and a Model
Agreement that will serve as a template for a contemplated series of agreements
• The FTC played important leadership roles in the ICN and the competition bodies
of the OECD, UNCTAD, and APEC. The FTC’s engagement promotes convergence
toward best practices on substantive analysis and on principles of due process, shares
and practices regarding consumer welfare-based enforcement, intellectual property
rights, the territorial scope of remedies, and procedural fairness.
• The FTC is a leader in the ICN, a preeminent venue for the coordination of
international antitrust policy. In FY 2020, the FTC continued to serve on its Steering
Group, as well as co-chairing the implementation group, which promotes use by
member agencies of ICN best practice recommendations and work product, and
the ICN’s team of working group leaders who coordinate the network’s substantive
work. The FTC also oversees the ICN’s online training program to promote sound
analytical and procedural practices across all aspects of antitrust enforcement. Over
and dominance in digital markets and on the competition assessment of laws
and regulations. The FTC also led the drafting of the ICN’s advice to competition
agencies on dealing with the challenges of the COVID-19 pandemic and its economic
economies in crises and the importance of vigilant enforcement. In light of emerging
digital economy issues that competition agencies are facing, the FTC proposed and
helped initiate important new work to explore the interface between competition,
consumer protection, and data privacy enforcement and policy.
• In the OECD, the FTC played a lead role in developing the Competition Committee’s
long-term projects on competition in the digital economy, and is collaborating with
the OECD’s Secretariat to develop among other topics, the application of competition
laws to intellectual property rights, and international enforcement cooperation.
In FY 2020, the FTC also served as a lead contributor to the preparation of OECD
Recommendations on procedural fairness in competition investigations and
enforcement, and on “competitive neutrality.”
• The FTC, along with DOJ’s Antitrust Division, continued to conduct high-level and
staff dialogues with key counterparts. We continued engagement with counterparts
Fiscal Year 2022 Congressional Budget Justication - Overview40
Kingdom to discuss procedural fairness, the application of antitrust laws to digital
platforms, and other critical antitrust enforcement and policy topics. We also held
high-level meetings with colleagues from foreign competition authorities, including
United Kingdom covering these and other timely issues.
• The FTC has continued to work with other U.S. government agencies when called
upon to address competition issues that implicate broader U.S. policy interests in
a coordinated and effective manner, such as the protection of intellectual property
and non-discriminatory treatment of U.S. companies. In FY 2020, for example, the
FTC was an active member of the U.S. delegations that negotiated the competition
chapters in proposed free trade agreements with the United Kingdom and Kenya. The
FTC also worked with other agencies to support recognition of the attorney-client
privilege by the Japan Fair Trade Commission.
• The FTC’s technical assistance program targets competition capacity building to
developing and transitioning regimes, providing assistance with analytical and
investigative techniques ranging from core concepts to advanced competition
practice. With the rapid growth in the number of jurisdictions with competition laws
over the past decades, the FTC has expanded its program of technical assistance
to help other agencies apply their laws in ways that support competitive markets
and compatible analysis and outcomes in cross-border matters. In FY 2020, the
FTC continued its technical assistance program in Ukraine by placing seasoned
FTC lawyers in its competition agency, as resident advisors, to share approaches
to enforcement and investigation and to assist in drafting amendments to the law.
The FTC also assisted the Philippine and Vietnamese authorities in their efforts to
introduce competition concepts to the judiciary, regulatory bodies, law schools,
and the private sector. Until international travel was restricted, the FTC conducted
13 competition technical assistance programs on site in 12 jurisdictions, including
participating in two regional programs for ASEAN member states. The FTC continued
its program throughout the pandemic through virtual training for staff in Mexico,
Peru, the Philippines, Ukraine, and regional programs for agencies of CARICOM
(Caribbean Community) and in Eastern Europe.
• The FTC International Fellows and Interns program enables staff from counterpart
agencies to work directly with FTC staff on antitrust investigations and cases,
Fiscal Year 2022 Congressional Budget Justication - Overview 41
2007 through the end of FY 2020, the FTC has hosted 92 international competition
India, Japan, Mexico, and Ukraine.
The FTC protects consumers from unfair and deceptive practices in the marketplace. The
FTC conducts investigations, sues companies and people that violate the law, develops
rules to protect consumers, and educates consumers and businesses about their rights
and responsibilities. The agency also collects complaints about a host of consumer issues,
complaints available to law enforcement agencies worldwide.
The FTC will continue to focus on identifying consumer protection issues associated with
practices and the importance of fostering innovation. The FTC also will take enforcement
action against deceptive advertisements that appear in new formats and new media (e.g.,
apps, games, videos, and social networks). In addition, the agency will continue to evaluate
consumer protection issues in the mobile marketplace through surveys and workshops. The
FTC also will continue its efforts to root out entities responsible for illegal robocalls, enforce
its DNC rules, and work with other stakeholders and industry to help develop technology-
based solutions. The FTC will continue to conduct research on emerging technologies to
assist with enforcement actions, educate consumers, and inform policy.
The FTC will continue to take a leading role in efforts to protect consumers from unfair or
deceptive practices related to the privacy and security of their personal information, while
and deceptive consumer privacy and data security practices through law enforcement
focused on matters that cause or are likely to cause substantial injury to consumers. It will
promote strong and balanced privacy protections through policy initiatives on a range of
topics.
The FTC also will participate in interagency groups, promote self-regulatory efforts, provide
technical assistance to Congress on draft legislation, and participate in international privacy
initiatives.
Fiscal Year 2022 Congressional Budget Justication - Overview42
In addition, the FTC will continue to be the repository for identity theft complaints and to
make them available to federal criminal law enforcement agencies. Our trained counselors
will continue to advise identity theft victims about the rights and remedies available to
them under federal law, and to educate all consumers about how to avoid becoming victims.
The FTC will continue to make enhancements to IdentityTheft.gov, the federal government’s
one-stop resource to help consumers report and recovery from identity theft.
Fraud affects all consumers, and the FTC will place an increased emphasis on law
enforcement efforts to stop scams, focusing on those schemes that cause the most
imposter scams in which the perpetrators pose as government agents, legitimate technical
support companies, family members, or others.
non-English speaking consumers, communities of color, and small businesses. Con artists
enforcement actions to stop deceptive or other unlawful conduct in mortgage assistance
relief and other debt relief services, payday lending, and debt collection. This deceptive or
other unlawful conduct can have severe consequences for consumers who can least afford
it.
The FTC is committed to protecting military consumers from scams. The FTC’s website
Military.Consumer.gov provides tools to help service members and their families avoid
military families regularly need to rent or buy a new place to live, manage money while
on the move, and be vigilant about dealing with businesses in new locales. The FTC will
continue to devote resources to conduct outreach to military consumers.
The FTC will continue to offer materials to help businesses avoid becoming victims of fraud;
these materials are available via the FTC’s Business Center at business.ftc.gov and the
agency’s small business website at ftc.gov/SmallBusiness.
The FTC will continue to challenge false and unsubstantiated advertising claims. These
actions will target various health-related claims, including disease prevention and
treatment claims; claims aimed at older adults, military members, and rural consumers;
and claims exploiting emerging health threats, such as COVID-19. The FTC also will
challenge false and unsubstantiated environmental marketing claims. Additionally, the FTC
will be seeking data from marketers of e-cigarettes about their advertising expenditures,
similar to data the Commission seeks periodically from Cigarette and Smokeless Tobacco
companies.
Fiscal Year 2022 Congressional Budget Justication - Overview 43
mission. The agency will continue to place a high priority on enforcing orders against
repeat offenders, as well as those who act with them.
The FTC will continue its enforcement against cross-border fraud and policy development
efforts in the international arena. Using the tools of the U.S. SAFE WEB Act and other
mechanisms for cross-border cooperation, including technology-based systems, the FTC
will continue to create and sustain international partnerships and networks to pursue
matters involving foreign defendants, evidence, and assets and to develop new initiatives
of the U.S. SAFE WEB Act. The FTC will continue to explore new ways of using complaint
data, including information from econsumer.gov
international efforts and to promote reciprocal enforcement by its foreign partners.
The FTC will continue to promote international development of market-oriented consumer
such as the OECD.
The FTC will participate actively in enforcement networks such as ICPEN, IMMFWG, GPEN,
and UCENet and encourage coordinated enforcement actions and activities that protect U.S.
consumers. The FTC will continue to engage in technical assistance and capacity-building
activities in jurisdictions such as India with a focus on preventing fraud aimed at American
consumers and enhancing enforcement cooperation to combat deceptive schemes.
The FTC’s competition work is critical to protect and strengthen free and open markets.
Robust competition promotes lower prices, higher quality products and services, and
and competitive marketplace provides the incentive and opportunity for new ideas and
innovative products and services. The FTC will continue to use all of the tools at its disposal
to promote competition and protect consumers from anticompetitive mergers and business
practices.
Identifying anticompetitive mergers remains a top priority of the agency’s competition
with an effective starting point for identifying anticompetitive mergers before they are
consummated, thereby preventing competitive harm. The FTC also devotes attention
to identifying unreported, often consummated, mergers that could harm consumers.
Reviewing and challenging anticompetitive mergers will continue to require substantial
agency resources. Nonetheless, the FTC will continue its vigorous antitrust enforcement to
Fiscal Year 2022 Congressional Budget Justication - Overview44
maintain competition in a broad array of economic sectors of great importance to American
consumers, including healthcare, technology, manufacturing, and consumer goods and
services.
The rapid rise in healthcare costs remains a matter of concern for consumers, employers,
insurers, and the nation as a whole. Health-related products and services account for a
rise. The FTC will continue to take action against the anticompetitive conduct and mergers
companies, and physician groups, and other healthcare providers) that contribute to the
rising cost of healthcare. The agency also will continue its vigorous advocacy to promote
healthcare competition by advising local, state, and federal entities, upon request, on the
competitive implications of pending government actions.
The FTC continues to promote competition in complex and innovative high-tech markets
through its ongoing enforcement, research, and advocacy efforts. Competition in technology
sectors can be especially important to ensure that technological advances continue to
processes into the marketplace, increasing quality, and decreasing prices. Antitrust matters
how best to integrate these two bodies of law to further the common goal of promoting
innovation.
This focus on technology markets places increasing demands on the FTC’s antitrust
enforcement mission in both the merger and nonmerger areas. The FTC remains vigilant
to raise prices, reduce the quality or choice of goods and services, or inhibit innovation;
The Bureau of Competition continues to strengthen its Technology Enforcement Division
dedicated to monitoring competition in U.S. technology markets, investigating any potential
anticompetitive conduct in those markets, and taking enforcement actions when warranted.
The FTC continues to focus closely on gasoline markets, investigating industry practices
and pricing, and will move quickly to address any anticompetitive mergers and other
The FTC will continue its efforts to educate businesses and consumers on compliance
with the antitrust laws and the important role of competition in ensuring the mix of price,
choice, and innovation valued by consumers. The FTC will look for opportunities to expand
the reach of the “Competition Matters” blog by addressing frequently asked questions
Fiscal Year 2022 Congressional Budget Justication - Overview 45
and issues of importance to consumers and businesses, and the agency will participate in
business outreach through the Commission’s “Green Lights & Red Flags” events. Finally, the
about these regulations and ensure that its interpretations comport with congressional
intent and sound public policy. FTC staff will also continue to provide advisory opinions to
businesses that request review of proposed conduct.
The FTC will continue to develop its cooperative relationships with key international
counterpart agencies and will update and develop additional cooperation tools to ensure
sound and consistent enforcement. The FTC will continue to work with competition
differences. The FTC plays a lead role in urging convergence toward best practices through
its active participation in international bodies, such as the ICN and OECD, and continues
to advocate for, develop, and promote the implementation of international best practices
in core substantive and procedural areas, including due process. The FTC will continue its
outreach in order to strengthen cooperative relationships with our counterpart agencies
through its International Fellows and Interns and technical assistance programs. The
Commission will continue to work with other U.S. agencies as appropriate to address global
issues of mutual concern, including through competition provisions of trade agreements.
The FTC works to promote a competitive marketplace by responding to policymakers’
inquiries about how to apply sound competition principles as they make decisions affecting
consumers. The FTC and its staff also will continue to provide guidance on important
important competition issues, and providing input on proposed government action that
The FTC will continue its compliance program to ensure that consumers receive the full
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Annual Performance Report
for Fiscal Year 2020
and Annual Performance Plan
for Fiscal Years 2021 and 2022
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202248
Budgeted Resources by Objective
($ in thousands)
Objective 1.1: Identify and take actions to address
deceptive or unfair practices that harm consumers. 512 $164,143 552 $175,494
Objective 1.2: Provide the public with knowledge and tools
to prevent harm to consumers. 73 24,213 73 24,452
Objective 1.3: Collaborate with domestic and international
partners to enhance consumer protection. 27 8,234 28 8,659
Objective 2.1: Identify and take actions to address
anticompetitive mergers and practices that cause harm to
consumers. 453 $132,027 518 $157,163
Objective 2.2: Engage in effective research and
stakeholder outreach to promote competition, advance
consumers. 53 15,447 56 16,740
Objective 2.3: Collaborate with domestic and international
partners to preserve and promote competition. 22 6,936 23 7,292
597
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 49
FTE by Objective
($ in thousands)
3 3
Privacy and Identity Protection 50 8 3 61 52 8 3 63
Financial Practices 61 6 4 71 63 6 4 73
Marketing Practices 108 5 9 122 114 5 9 128
Advertising Practices 51 5 3 59 52 5 3 60
Enforcement 52 1 1 54 55 1 1 57
Consumer Response and Operations 24 1 --- 25 25 1 --- 26
Litigation Technology and Analysis 36 1 --- 37 40 1 --- 41
Consumer and Business Education --- 21 --- 21 --- 22 --- 22
Economic and Consumer Policy Analysis 2 5 1 8 7 3 1 11
Management 9 3 --- 12 9 3 --- 12
Support 119 17 6 142 135 18 7 160
3 3
15 3 --- 18 16 3 --- 19
Merger and Joint Venture Enforcement 187 10 5 202 209 10 5 224
Merger and Joint Venture Compliance 9 2 --- 11 9 2 --- 11
Nonmerger Enforcement 116 6 5 127 132 6 5 143
Nonmerger Compliance 1 --- --- 1 1 --- --- 1
Antitrust Policy Analysis 3 16 7 26 8 17 7 32
Other Direct 16 4 --- 20 16 4 --- 20
Support 106 12 5 123 127 14 6 147
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Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 51
About This Report
Annual Performance Plan for FY 2021 and 2022 for the Federal Trade Commission (“FTC”
or “Commission”). The performance report is structured around three strategic goals and
their supporting objectives as established in the FTC Strategic Plan for FY 2018-2022. The
FTC’s strategic goals, objectives, and performance measures articulate what the agency
intends to accomplish to meet its mandated mission (Goals 1 and 2), support and improve
the management functions vital to core mission success (Goal 3), and demonstrate the
highest standards of stewardship.
Protect consumers from unfair and deceptive practices in the
marketplace
Maintain competition to promote a marketplace free from
anticompetitive mergers, business practices, or public policy outcomes
Advance the FTC’s performance through excellence in managing
resources, human capital, and information technology
To see more of the FTC’s performance and budget documents, please visit the agency’s
website.
The FTC works to protect and strengthen free and open markets and to promote informed
consumer choice, both in the United States and around the world. While the FTC is
its mission, including rulemaking, research, studies on marketplace trends and legal
developments, and consumer and business education.
Protecting consumers and competition by preventing anticompetitive, deceptive, and unfair
business practices through law enforcement, advocacy, and education without unduly
burdening legitimate business activity.
information.
The FTC is an independent agency that reports to the President and to Congress on its
mission to protect consumers and promote competition. This work includes pursuing
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202252
vigorous and effective law enforcement; advancing consumers’ interests by sharing its
expertise with Congress, state legislatures, and U.S. and international agencies; developing
policy and research tools through hearings, workshops, and conferences; and creating
practical and plain-language educational programs and materials for consumers and
businesses in a global marketplace with constantly changing technologies.
The FTC has a long tradition of maintaining a competitive marketplace for both consumers
and businesses. In 1914, President Woodrow Wilson signed the Federal Trade Commission
Act into law, creating the FTC, which then absorbed its predecessor, the Bureau of
Corporations, in 1915. When the FTC was created in 1914, its purpose was to prevent
unfair methods of competition in commerce as part of the battle to “bust the trusts.”
Over the years, Congress passed additional laws giving the agency greater authority over
anticompetitive practices.
and cause harm to consumers, in 1938 Congress amended the FTC Act and granted the
FTC authority to stop “unfair or deceptive acts or practices in or affecting commerce.” Since
then, the FTC also has been directed to enforce a wide variety of other consumer protection
laws and regulations. In total, the Commission has enforcement or administrative
responsibilities under more than 70 laws. In addition, the agency maintains a website at
www.ftc.gov that provides information for consumers and businesses, as well as online
chooses one commissioner to act as Chair. No more than three commissioners may be from
the same political party. The FTC accomplishes its mission through three bureaus: the
Bureau of Consumer Protection (BCP), the Bureau of Competition (BC), and the Bureau of
about the agency’s components, visit its .
the United States. The agency had 1160 staff on board at the end of FY 2020. The total new
budget authority for FY 2020 was $331.0 million.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 53
(PMRO), who act as data stewards for each of the agency’s publicly-reported performance
quarterly or annual basis via an internal data reporting tool. The Financial Management
execution reviews. Quarterly reports are sent to senior managers throughout the agency,
allowing for adjustments to agency strategies based on the interim results.
The following outlines how the agency ensures the performance information it reports is
complete, reliable, and accurate:
• The FTC has adopted a central internal repository for performance data entry,
reporting, and review. The electronic data tool reduces human error, increases
transparency, and facilitates review of the agency’s performance information.
• Each PMRO is responsible for updating the data quality appendix (DQA) at least
once per year. The DQA serves as a process document, laying out data sources,
and collection methods for performance information, as well as how metrics are
calculated.
• PMROs must provide all supporting documentation for their performance results at
“dig beneath the surface” and see the data underlying the metrics.
• After reviewing the underlying data, several measures are selected each year to
investigate more thoroughly, including interviewing the staff responsible for data
collection, asking about alternative methods, and comparing data collection and
calculations to those reported in the DQA.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202254
Annual Performance Goals: Fiscal Years 2016 to 2022
Performance results avalable at http://www.ftc.gov/about-ftc/performance.
Percentage of the FTC’s consumer
protection law enforcement
actions that targeted the subject of
consumer complaints to the FTC.
91.2% 94.4% 89.6% 87.8% 90.5% 80.0% 80.0%
Rate of
customer satisfaction with the FTC’s
Consumer Response Center.
(A) Website
(B) Call Center
(A) 81
(B) 83
(A) 80
(B) 84
(A) 80.3
(B) 85
(A) 81.2
(B) 84
(A) 82.5
(B) 84
(A) 75
(B) 64
average satisfaction
rate for websites/
call centers
³
Total consumer savings compared
to the amount of FTC resources
allocated to consumer protection
law enforcement. (New 3 yr. rolling
average)
$8.80 in
consumer
savings per
$1 spent
$35.20 in
consumer
savings per
$1 spent
$39.00 in
consumer
savings per
$1 spent
$38.60 in
consumer
savings per
$1 spent
$14.40 in
consumer
savings
per $1
spent
$7.00 in
consumer
savings
per $1
spent
$7.00 in consumer
savings per $1 spent
³
Amount of money returned
to consumers or forwarded to the
U.S. Treasury resulting from FTC
enforcement action.
$95.2
million
$2.69
billion
$3.25
billion
$3.52
billion
$2.79
billion
$65
million
$65 million
³
Rate of consumer satisfaction with
FTC consumer education websites.
76.0 77.0
77.0
77.7 76.2 75.5
average satisfaction
rate for websites
Number of
workshops and conferences the FTC
convened that address consumer
protection issues.
12 19 11 12
13 10 10
Number
of consumer protection reports the
FTC released.
8 10 18 11 23 10 10
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 55
Number
of investigations or cases in which
the FTC and other U.S. federal, state,
and local government agencies
shared evidence or information that
contributed to FTC law enforcement
actions or enhanced consumer
protection..
387 359 369 453 551 375 375
Number
of investigations or cases in which
the FTC obtained foreign-based
evidence or information or engaged
in other mutual assistance that
contributed to FTC law enforcement
actions, or in which the FTC
cooperated with foreign agencies
on enforcement matters.
53 50 43 48 42 40 32 35
Number
of instances of policy advice or
technical assistance provided to
foreign consumer protection and
privacy agencies, directly and
66 66 64 71 60 60 60
Percentage of consumer protection
entities including federal and state
legislatures, agencies, or courts that
were successful, in whole or in part.
85.7% 85.7% * * * 60.0% 60.0%
³
Percentage of full merger and
nonmerger investigations in which
the FTC takes action to maintain
competition.
54.6% 49.1% 67.9% 62.9% 77.1%
Between
40.0%
and
70.0%
Between 50.0%
and 80.0%
Consumer
savings through merger actions
taken to maintain competition.
$2.59
billion
$2.59
billion
$2.66
billion
$3.09
billion
$1.78
billion
$2.10
billion
$1.5 billion
* Results not available at time of publication.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202256
³
Total consumer savings compared
to the amount of FTC resources
allocated to the merger program.
$46.40 in
consumer
savings
per $1
spent
$55.60 in
consumer
savings per
$1 spent
$50.30 in
consumer
savings per
$1 spent
$65.90 in
consumer
savings per
$1 spent
$25.70 in
consumer
savings
per $1
spent
$42.00 in
consumer
savings
per $1
spent
$35.00 in consumer
savings per $1 spent
Consumer
savings through nonmerger actions
taken to maintain competition.
$1.02
billion
$1.12
billion
$1.10
billion
$1.77
billion
$901
million
$900
million
$900 million
³
Total consumer savings compared
to the amount of FTC resources
allocated to the nonmerger
program.
$52.30 in
consumer
savings
per $1
spent
$39.60 in
consumer
savings per
$1 spent
$40.10 in
consumer
savings
per $1
spent
$75.80 in
consumer
savings
per $1
spent
$45.95 in
consumer
savings
per $1
spent
$40.00 in
consumer
savings
per $1
spent
$35.00 in consumer
savings per $1 spent
Number of
workshops, seminars, conferences,
and hearings convened or co-
competition-related issues.
3 3 7 11 4 3 3
Number of
reports and studies the FTC issued
on key competition-related topics.
9 11 9 4 7 8 8
Percentage of competition advocacy
with entities including federal
and state legislatures, agencies,
or courts that were successful, in
whole or in part.
64.7% 58.6% * * * 60.0% 60.0%
³
Percentage of FTC cases involving
at least one substantive contact
with a foreign antitrust authority
in which the agencies followed
consistent analytical approaches
and reached compatible outcomes.
100% 96% 98% 100% 100% 95% 95%
Number of
instances in which the FTC provided
policy advice or technical assistance
to foreign competition agencies or
government.
171 160 151 165 155 130 130
* Results not available at time of publication.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 57
The
extent to which the FTC is prepared
to protect people and property
and to continue mission essential
operations during emergencies.
(A)Achieve a favorable COOP
rating
(B)The number of products and
activities related to Physical
Security that inform staff and
provide opportunities to practice
emergency procedures.
(A) 90%
(B) N/A
(A) 95%
(B) N/A
(A) 95%
(B) 39
(A) 95%
(B)70
(A) COOP
Exercise
cancelled
(B) 115
(A) 80%
(B) 42
(A) 85%
(B) 60
Percentage of survey respondents
timeliness of administrative
operations.
N/A 81% 82% 87% 78% 75% 75%
Achieve
opinion from the agency’s
auditors.
opinion
opinion
opinion
opinion
opinion
opinion
Percentage of new entrant, annual,
and termination Public Disclosure
required timeframe.
N/A N/A 98.3% 98.4% 95.1% 95.0% 95.0%
Percentage of contract actions
awarded within FTC’s established
Procurement Action Lead Time
(PALT).
78% 65% 57.4% 67% 89% 70% 75%
The extent
to which FTC employees consider
their agency a best place to work.
81% 83% 85% 84% 89%
Exceed
government-
wide average
by 10 points
(69+10=79%)
Exceed government-
wide average by 10
points
The
extent employees believe the FTC
encourages an environment that is
open, diverse, and inclusive.
75% 78% 78% 78%
Data not
available
Exceed
government-
wide average
by 10 points
Exceed government-
wide average by 10
points
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202258
³
The
extent to which employees believe
the FTC cultivates engagement
throughout the agency.
82% 83%
83%
84% 87%
Exceed
government-
wide average
by 10 points
(72+10=82%)
Exceed government-
wide average by 10
points
The extent
to which employees believe FTC
management promotes a results-
oriented performance culture.
70% 73% 74% 75%
Data not
available
Exceed
government-
wide average
by 10 points
Exceed government-
wide average by 10
points
Availability of information
technology systems.
99.75% 99.70% 99.71% 99.98% 99.97% 99.60% 99.60% 99.95%
Percentage of IT spend on
Provisioned IT Services.
N/A N/A 36.6% 37.0% 40.0% 40.0% 40.0%
Achieve a
favorable FTC Cybersecurity Index
score.
N/A N/A 3 of 8 6 of 8 7 of 8 6 of 8 6 of 8
Percentage of the FTC’s paper
records held at the Washington
National Records Center
(WNRC) that are processed
and appropriately either (a)
destroyed or (b) transferred to
the National Archives and Records
Administration.
N/A N/A N/A 16.9% 31.3%
of WNRC
holdings
processed
[on hold]*
Successfully transfer permanent
electronic records dated between
2004 and 2016 to NARA in a timely
manner.
N/A N/A N/A
2004-2006
records
transferred
No records
transferred
Transfer
permanent
electronic
records dated
2007-2009
[on hold]**
However, as is standard practice, these requests were halted mid-year at NARA’s request pending the FTC’s development
of new records’ schedules for mission and policy-related work; this is standard practice when new schedules are needed.
The agency is collaborating closely with NARA to develop new schedules and has already begun to submit them to NARA for
approval.
custody of NARA. However, these requests were halted mid-year at NARA’s request pending the FTC’s development of new
records’ schedules for mission and policy-related work; this is standard practice when new schedules are needed. The
agency is collaborating closely with NARA to develop new schedules and has already begun to submit them to NARA for
approval.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 59
Strategic Goal 1: Protect Consumers From Unfair and
Deceptive Practices in the Marketplace
The FTC protects consumers from unfair and deceptive acts and practices in the
marketplace by conducting investigations, suing companies and individuals that violate
the law, developing rules to protect consumers, and educating consumers and businesses
about their rights and responsibilities. The agency also collects complaints about a
Call violations. The FTC makes these complaints available to law enforcement agencies
worldwide.
Because the FTC has jurisdiction over a wide range of consumer protection issues, it must
effectively use its limited resources by targeting its law enforcement and education efforts
to achieve maximum impact and by working closely with federal, state, international, and
private sector partners in joint initiatives. In addition, the agency engages in dialogue
with a broad range of stakeholders to understand emerging issues. The FTC also conducts
research on a variety of consumer protection topics.
The FTC focuses on investigating and litigating cases that cause or are likely to cause
substantial injury to consumers. This includes not only monetary injury, but also, for
example, unwarranted health and safety risks. By focusing on practices that are actually
harming or likely to harm consumers, the FTC can best leverage its limited resources.
The FTC has established three objectives to guide work in this area:
Identify and take actions to address deceptive or unfair practices that
harm consumers.
Provide consumers and businesses with knowledge and tools that
provide guidance and prevent harm.
Collaborate with domestic and international partners to enhance
consumer protection.
components of the FTC’s FY 2020 Performance Report.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202260
Monitor and review Consumer
Sentinel Network (CSN) data base
and monitor marketplace practices
for complaint trends and data to
support existing claims
Measure 1.1.1
Measure 1.1.2
Indicator 1.1.IND.1
Indicator 1.1.IND.3
• Agency does not
control the number
and volume of
complaints received
from consumers.
• A drop in the number of complaints received could hinder the agency’s ability to
identify unlawful practices.
•
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 61
Take law enforcement action
that focuses on preventing fraud
and harm to consumers, protects
consumer privacy, and targets
those who violate federal court and
administrative orders obtained by
the FTC.
Measure 1.1.3
Measure 1.1.4
Indicator 1.1.IND.2
• New Congressional
legislation could
change existing laws.
• Changes to the agency
levels.
• Increasing costs
related to litigation,
including processing
and storing
increasingly large
amounts of electronic
investigation and case
data.
• Legal challenges, such
as the recent AMG
Capital Mgmt., LLC v.
FTC Supreme Court
case, can reinterpret
the FTC’s enforcement
authority.
• New legislation could affect the agency’s ability to take law enforcement action.
•
law enforcement action.
• Increased litigation costs could lead to fewer investigations and cases.
• Legal challenges to our statutory authority can disrupt our enforcement efforts, as seen
in the recent Supreme Court case, AMG Capital Mgmt., LLC v. FTC.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202262
The agency continued to focus its resources on areas that cause the greatest harm
to consumers. For example, the agency worked with other enforcement authorities
and stakeholders to stop scammers and others engaging in unfair and deceptive
business practices during the novel Coronavirus Disease 2019 (COVID-19) crisis.
The FTC sent letters to hundreds of companies and individuals warning them to stop
making unsubstantiated claims that their products and therapies can treat, prevent,
or cure COVID-19, the disease caused by the novel coronavirus. The FTC and Federal
Communication Commission sent joint letters to companies providing Voice over Internet
Protocol (VoIP) services, warning them that routing and transmitting illegal robocalls,
including COVID-19-related scam calls, is illegal and may lead to federal law enforcement
against them. Separately, the FTC also sent letters to VoIP service providers and other
companies warning them that “assisting and facilitating” illegal telemarketing or robocalls
related to the COVID-19 pandemic is against the law. Many of these calls prey upon
consumers’ fear of the virus to perpetrate scams or sow disinformation. The FTC and Small
Business Administration (SBA) sent warning letters to companies that may be misleading
small businesses seeking SBA loans as a result of the COVID-19 crisis. The letters highlight
with the SBA, or that consumers can apply on their websites for loans through the Paycheck
and Economic Security (CARES) Act. Additionally, the FTC sent warning letters to a number
of multi-level marketing companies to remove and address claims that they or their
participants are making about their products’ ability to treat or prevent COVID-19, about
the earnings people who have recently lost income can make, or both. The FTC also brought
enforcement actions against Ponte Investments, Marc Ching (doing business as Whole
Leaf Organics), Golden Sunrise Nutraceutical, SuperGoodDeals.com, QYK Brands (d/b/a
counts of deceptive conduct including making false claims related to COVID-19.
In the area of deceptive marketing, University of Phoenix (UOP) and its parent company,
Apollo Education Group, agreed to settle for a record $191 million to resolve FTC charges
that they used deceptive advertisements that falsely touted their relationships and job
opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The American
Red Cross. Under the settlement, UOP agreed to pay $50 million in cash as well as cancel
$141 million in debts owed to the school by students who were harmed by the deceptive
school.
to pay $150 million and be banned from the multi-level marketing business to resolve FTC
charges that the company operated an illegal pyramid scheme that deceived consumers
products. Two top promoters also settled charges that they promoted the illegal pyramid
scheme and misled consumers about their income potential, agreeing to a multi-level
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 63
marketing ban and a judgment of $4 million that will be suspended when they surrender
AdvoCare promoters with unlawfully promoting a pyramid scheme, making deceptive
earnings claims, and providing others with the means and instrumentalities to do the same.
remote monitoring of any devices on which the apps are installed. In a settlement with the
FTC, Retina-X Studios, the developers of three “stalking” apps, agreed to be barred from
selling apps that monitor consumers’ mobile devices unless they take certain steps to
ensure the apps will only be used for legitimate purposes. The FTC alleged that Retina-X
and its owner, James N. Johns, Jr., developed three mobile device apps that allowed
purchasers to monitor the mobile devices on which they were installed, without the
knowledge or permission of the device’s user. Retina-X and Johns marketed one of the apps,
called MobileSpy, to monitor employees and children. Retina-X promoted two other apps,
called PhoneSheriff and TeenShield, to monitor mobile devices used by children. The FTC
alleged that while Retina-X claimed in its legal policies that the apps were intended for
monitoring employees and children, Retina-X did not take any steps to ensure that its apps
were being used only for legitimate and lawful purposes. Retina-X sold more than 15,000
subscriptions to all three stalking apps before the company stopped selling them in 2018.
The settlement resolves allegations that these apps compromised the privacy and security
of the consumer devices on which they were installed.
As in past years, the FTC focused on its greatest asset in protecting consumers—its staff.
FTC staff has continued to work to identify, develop, and communicate best practices and
also continued to make law enforcement training a priority in FY 2020. BCP continued to
expand the content on BCP Lit, its widely used internal training and information platform.
BCP added new training materials, legal resources, and investigation and litigation advice
to BCP Lit, as well as revised and updated existing training content. BCP also conducted
a variety of seminars, brown bags, and lectures on topics such as collections issues and
remote depositions. BCP also sent a number of staff attorneys to deposition trainings
run by the District of Columbia Bar. BCP approved training for investigators to become
and Investigation worked to keep BCP’s staff current and tech-savvy, providing training and
seminars on topics such as advertising industry market dynamics, online manipulation,
creepware apps, misuse of payment data from web skimming, methods of detecting
deepfakes and authenticating original media, and using mobile phone data to inform
COVID-19 public health response. BCP also continued to offer its mentoring program to
staff.
BCP also continued to allocate resources to identifying opportunities to streamline its
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202264
91.2% 94.4% 89.6% 87.8% 90.5% 80% Exceeded 80%
Percentage of the FTC’s consumer protection law enforcement
actions that targeted the subject of consumer complaints to the FTC.
The FTC collects complaints about a host of consumer issues, including fraud, identity theft,
areas of greatest concern and injury to consumers. This measure gauges how well the FTC’s
consumer protection law enforcement actions target the subject of consumer complaints.
In FY 2020, 90.5 percent, or 57 of 63, of BCP’s law enforcement
actions targeted the subject of consumer complaints to the FTC. Because BCP augments
leads—such as monitoring compliance with FTC orders, ad monitoring, internet surfs,
mobile application surveys, and direct referrals from government and private-sector
partners—the results vary from year to year.
BCP faces resource challenges such as rising costs for expert witness contracts, travel
(before pandemic-related restrictions were instituted and after they are lifted), and
litigation support tools. Overcoming these challenges is critical as BCP litigates larger and
more complex cases involving traditional frauds, as well as cases in emerging technologies,
privacy and data security, and deceptive advertising in new media channels.
• Evaluate whether enforcement activities are tracking the areas of greatest concern
and whether new practices or technologies require additional law enforcement focus.
• Evaluate the effectiveness of the FTC’s enforcement efforts in those areas in which a
baseline measure can be determined.
•
policy documents.
• Evaluate and implement options for continuing to secure relief for consumers post-
AMG Capital Mgmt., LLC v. FTC.
•
policy documents.
• • Evaluate and implement options for continuing to secure relief for consumers post-
AMG Capital Mgmt., LLC v. FTC.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 65
Rate of customer satisfaction with the FTC’s Consumer Response
Center.
Center, which is responsible for collecting consumer complaints. Satisfaction is measured
complaints through the call center (b). The Consumer Response Center is often consumers’
protection issues and trends in the fast-changing, increasingly global marketplace.
(a) 81
(b) 83
(a) 80
(b) 84
(a) 80.3
(b) 85.0
(a) 81.2
(b) 84
(a)82.5
(b)84
(a) 75
(b) 64
(a) Exceeded
(b) Exceeded
(a) average satisfaction
rate from ACSI’s
E-Government
Satisfaction Index
(b) standard rate for
call centers from the
Interagency Committee
The FTC’s Consumer Response Center continues to perform above
the private and public industry benchmarks. The FTC Call Center maintained an overall
satisfaction score of 84, and online forms maintained an overall satisfaction score of 82.5.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202266
³
Total consumer savings compared to the amount of FTC
resources allocated to consumer protection law enforcement.
spending. We compare how much money the FTC saves consumers each year through law
enforcement to the amount the FTC spends on consumer protection law enforcement.
Consumer savings are comprised of: (a) the amount of money returned to consumers
and (b) an estimate of the amount of harm that would have occurred but for the FTC’s
conduct would have continued for one year but for the FTC’s action. The FTC also assumes
that the amount of harm that would have occurred in that year is the same as what
consumers lost in the past. Performance Goals 2.1.3 and 2.1.5 are similar measures that
track the impact of antitrust law enforcement. The amount reported is a three-year rolling
average (average of the current year and two prior year totals).
$8.80 in
consumer
savings
per $1
spent
$35.20 in
consumer
savings
per $1
spent
$39.00 in
consumer
savings
per $1
spent
$ 38.60 in
consumer
savings
per $1
spent
$14.40 in
consumer
savings
per $1
spent.
$7.00 in
consumer
savings
per $1
spent
Exceeded
$7.00 in consumer
savings per $1 spent
The agency saved consumers on average over 14 times the amount
of resources devoted to the consumer protection program in the past three years, or an
average of $1.4 billion per year. This is largely attributable to the Online Trading Academy,
Western Union, and RevenueWire cases. Although the results for FY 2020 are more than
double the target, the amount reported in FY 2020 decreased from prior years because the
$7.3 billion in consumer redress for the Volkswagen case, which was part of the FY 2017
result, is no longer included in the three-year average.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 67
³
The amount of money the FTC returned to consumers
or forwarded to the U.S. Treasury resulting from FTC enforcement action.
This goal tracks the FTC’s effectiveness in returning money to consumers who were
defrauded and forwarding money to the U.S. Treasury (e.g., if sending money to individuals
is impracticable, or if funds were paid as a civil penalty). The FTC targets law enforcement
efforts on violations that cause the greatest amount of consumer harm; the amount of
money returned to consumers or forwarded to the U.S. Treasury is a useful indicator that
the FTC is targeting the right defendants. The number reported is a three-year rolling
average (average of the current year and two prior year totals).
$95.2
million
$2.69
billion
$3.25
billion
$ 3.52
billion
$2.79
billion
$65
million
Exceeded
$65
million
1
$65
million
In the last three years, the annual average of the total amount
returned to consumers and forwarded to the U.S. Treasury is $2.79 billion. In FY 2020, the
FTC returned $131.8 million to consumers and forwarded $5.0 billion to the U.S. Treasury.
the U.S. Treasury included civil penalties obtained in settlements with Facebook, Kohl’s,
and HyperBeard. In addition, in FY 2020, some FTC orders required defendants to self-
administer refund programs worth more than $510.8 million in refunds to consumers,
including University of Phoenix, AT&T Mobility, and Western Union.
1
In April 2021, the United States Supreme Court ruled in AMG Capital Management v. FTC that the FTC is
unable seek monetary relief under Section 13(b) of its authority, which previously served as the primary
means by which the Commission returned money to consumers. See AMG Capital Mgmt., LLC v. FTC, No. 19-
508, 593 U.S. ___, slip op. (Apr. 22, 2021), https://www.supremecourt.gov/opinions/20pdf/19-508_l6gn.pdf.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202268
Number of complaints collected and entered into the Consumer
Sentinel Network (CSN) database.
The agency assimilates a large number of consumer complaints, including complaints
about Do Not Call violations. The agency receives these complaints from a variety of
sources, including direct consumer complaints to the FTC and complaints received by the
FTC’s partners. In this manner, the FTC will collect robust information to inform its law
enforcement efforts.
9.7 million 8.7 million 8.5 million 8.3 million
The percentage of redress cases in which money designated for
distribution is mailed to consumers within 6 months.
This indicator ensures that the FTC returns redress dollars to injured consumers as quickly
as possible. Money is considered “designated for distribution” when the FTC is in receipt
of all funds, legal issues are resolved, and a usable claimant list is ready. If there is a claims
process in which consumers must apply for a refund, then dollars are “designated for
95.5% 90.9% 91.7% 93.1%
N/A 42 43 44
Number of contributors to the Consumer Sentinel Network.
CSN allows members to access consumer complaints submitted directly to the FTC, as well
as complaints shared by the following data contributors, federal partners, multiple state
number of data contributors, the FTC will have better information with which to inform its
law enforcement efforts. This number counts current, active data contributors that collect
data from the general public and directly enter that data into Sentinel. This number does
not count entities that refer consumers to the FTC Complaint Assistant. Sentinel does not
include data from commercial data brokers or information resellers.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 69
Focus consumer and business
education where deception, unfair
practices, and information gaps
cause the greatest injury.
Indicator 1.2.IND.2
Indicator 1.2.IND.3
• Budget for printing
and distribution
• Budget for content
creation and web
services
• Budgetary limitations affect the FTC’s ability to increase dissemination of information.
•
services.
Creatively use new technologies
and private and public partnerships
to reach new and underserved
audiences.
Indicator 1.2.IND.1
Indicator 1.2.IND.3
• Budget for staff
•
FTC’s ability to increase outreach.
Educate consumers about how to
avoid identity theft and provide
information to victims.
Measure 1.2.1
Indicator 1.2.IND.1
Indicator 1.2.IND.2
Indicator 1.2.IND.3
• Budget for printing
and distribution
• Budget for content
creation and web
services
• Budget for staff
• Budgetary limitations affect the FTC’s ability to increase dissemination of information.
•
services.
•
FTC’s ability to increase outreach.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202270
Increase public awareness by
complaint and identity theft
websites and toll free numbers.
Indicator 1.2.IND.1
Indicator 1.2.IND.3
• Budget for staff
•
FTC’s ability to increase outreach.
Provide more educational resources
for small businesses.
Indicator 1.2.IND.2
Indicator 1.2.IND.3
• Budget for printing
and distribution
• Budgetary limitations affect the FTC’s ability to increase dissemination of information.
Continue to focus on underserved
communities and other population
segments including communities
of color, non-English speaking
consumers, older adults, lower-
income communities, children and
parents, and veterans and military
service members.
Indicator 1.2.IND.1
Indicator 1.2.IND.2
• Budget for printing
and distribution
Budget for staff
• Budgetary limitations affect the FTC’s ability to increase dissemination of information.
•
FTC’s ability to increase outreach to underserved communities and other population
segments.
The FTC developed a multi-media campaign, complete with a dedicated
website, Coronavirus Pandemic (COVID-19): The FTC in Action (ftc.gov/coronavirus;
ftc.gov/coronavirus/es). The site contains a library of more than 120 consumer
and business blog posts and scam alerts on topics ranging from relief checks and
treatment claims to charity fraud, government imposter scams, and misinformation
and rumors. The site also houses robocall recordings, videos on avoiding COVID-19
scams and Economic Impact Payment scams, social media shareables, infographics,
shift resulting from the pandemic, the FTC developed materials on the Financial
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 71
Impact of the Coronavirus, and will continue its work to inform and protect
consumers in this challenging environment.
The FTC creates tailored messages
and agencies to disseminate FTC information to their constituents in those target
communities. For example, the FTC’s Pass It On campaign (ftc.gov/PassItOn and
ftc.gov/Pasalo in Spanish), tailored to people age 65 and older, is a research-based
campaign to share information about fraud and encourage readers to share the
information with a friend. The agency continues to promote these resources through
webinars and presentations in collaboration with other federal agencies such as
Abuse Awareness Day Global Summit.
The FTC has reached military service
members through a continued, years-long collaboration with the Department
resources, found at MilitaryConsumer.gov, are shared by the agency and its partners
through social media outreach and media coverage, and culminate in national
outreach efforts each year during July’s Military Consumer Month.
The FTC developed and has been promoting,
presenting, and disseminating clear, easy-to-use resources that inform small
businesses about cyber threats and provide tips on how to deal with them. These
materials, which are co-branded with the National Institute of Standards and
Technology (NIST), the Department of Homeland Security (DHS), and the Small
Business Administration (SBA), enable business owners to better understand
cybersecurity and train their employees. The agency has also focused on expanding
the reach of its Spanish language campaign materials, in collaboration with Small
Business Development Corporations. Further, in collaboration with the SBA and the
Better Business Bureau, the FTC has been promoting and disseminating its “Scams
and Your Small Business” guide in English and Spanish, which describes common
scams and the steps businesses can take to avoid them.
The FTC continues to encounter challenges in meeting the demand for educational
materials available in print. The agency works to mitigate these issues through
judicious use of funding, publication revisions, streamlining the catalog of printed
• Measure the number of education messages disseminated each year and assess the
FTC on outreach.
• Review the focus of FTC education efforts; determine whether the agency needs to
reach new audiences in light of changes in demographics, emerging digital advertising
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202272
³
Rate of consumer satisfaction with FTC consumer
education websites.
This measure gauges the effectiveness, helpfulness, and usability of the FTC’s consumer
deceptive and unfair practices. Well-informed consumers are better able to protect
themselves from bad actors in the marketplace. This measure includes the customer
satisfaction scores for Consumer.ftc.gov and Bulkorder.ftc.gov. Starting in FY 2020, the FTC
is reporting the customer satisfaction score through the desktop survey on Consumer.ftc.
gov.
76 77 76.5 77.7 76.2 75.5 Exceeded
Average satisfaction
rate from ACSI’s
E-Government
Satisfaction Index
In FY 2020, the FTC used the desktop survey on Consumer.ftc.gov to
determine the rate of customer satisfaction with FTC consumer education websites. The
satisfaction score for participating federal government websites was 75.5.
Due to customer satisfaction survey changes during FY 2020, the FTC can no longer report
a combined score for Consumer.ftc.gov and Bulkorder.ftc.gov. The Consumer.ftc.gov desktop
survey receives the most responses, so the FTC will report this score starting in FY 2020.
issues and deceptive marketing practices, and emerging technologies; and identify
strategies or partnerships that will allow the FTC to reach those audiences.
• Develop resources for children to help them apply critical thinking skills to decisions
around consumer protection issues.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 73
Number of workshops and conferences the FTC convened that
address consumer protection issues.
The FTC convenes workshops and conferences through which experts and other
ways to address those issues. This indicator helps the FTC ensure that enforcement and
education efforts are augmented by encouraging discussions among all interested parties,
as well as empirical research on novel or challenging consumer protection problems.
12 19 11 12 13 10 Exceeded 10
Number of consumer protection reports the FTC released.
FTC staff prepare reports regarding current important topics in consumer protection,
and these reports are the basis for this measure. Consumer protection reports provide
information to policy makers, both internally and externally, to help them understand
important contemporary issues. This measure also ensures that the FTC releases a variety
of informative reports to the public that help promote the understanding and awareness of
consumer protection issues.
8 10 18 11 23 10 Exceeded 10
In FY 2020, the FTC convened or co-sponsored 13 workshops and
conferences that addressed consumer protection problems. These events brought together
over 9,500 participants.
In FY 2020, the FTC published 23 consumer protection-related
reports in areas including cigarettes, smokeless tobacco, privacy and data security,
protecting older consumers, mass-market consumer fraud, social media bots and
reports: the Do-Not-Call Registry Data Book and the Consumer Sentinel Network Data
Book.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202274
Number of federal, state, local and international, and private
This indicator helps determine the extent to which the FTC’s print education publications
departments, and banks, work as partners with the FTC by distributing these materials to
materials via an online order system: https://www.bulkorder.ftc.gov. For a measure of the
quantity of publications distributed, see Indicator 1.2.IND.2.
12,944 12,705 14,346 8,800*
Number of consumer protection messages accessed (a) in print and
(b) digitally.
These indicators gauge the reach of the agency’s education messages for consumers
and businesses in print and via the web. The print measure counts the total quantity of
publications ordered from Bulkorder.ftc.gov. The digital indicator counts the number of
page views of FTC consumer education articles, blog posts, and other materials on FTC
websites, as well as the page views of FTC business education plain-language guidance
articles and blog posts.
(a)14.5 million
(b)N/A
(a)13.2 million
(b) 45.2 million
(a)13.7 million
(b) 49.5 million
(a) 8.9 million*
(b) 47.5 million
Number of social media followers and email subscribers.
This indicator gauges the extent of consumer and business outreach via social networks
and email communications.
481,064 512,545 449,048 620,099
publications distributed in FY20.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 75
Work with domestic and
international partners, in
government and the private sector,
to share information.
Measure 1.3.1
• The FTC has limited
control over the extent
to which state, local,
and other federal
agencies, as well as
private entities, will
provide information
or cooperate with
the FTC on law
enforcement matters.
• Changes to the agency
levels.
• Budget limitations could lead to fewer investigations and cases, which could decrease
the amount of information sharing with domestic and international partners.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202276
Share information, engage in
investigative assistance, and
otherwise develop and strengthen
enforcement cooperation
on investigations, cases, and
enforcement-related projects
with agency and law enforcement
counterparts.
Measure 1.3.2
• The FTC has limited control
over the extent to which foreign
governments will provide
information or cooperate with
the FTC on law enforcement
matters. Data-protection rules in
Europe and other jurisdictions
may present information sharing
challenges. In addition, foreign
legal rules often prohibit or limit
or enforcing FTC judgments
and orders, including asset
preservation or collection orders.
• The impact of the COVID-19
pandemic on foreign consumer
protection agencies.
• The U.S. SAFE WEB Act lapsed
on September 30, 2020. The Act
was renewed and signed into law
for an additional seven years on
October 20, 2020. In the months
immediately leading up to the
2020 sunset date, OIA was unable
to move forward several matters
that required SAFE WEB authority
due to concerns that the statute
would lapse before the matter was
complete.
•
• Due to COVID-19, some foreign counterparts may not have the resources to
cooperate with the FTC during the pandemic.
• The FTC uses its U.S. SAFE WEB Act authority to expand its international
enforcement efforts and continues its outreach efforts to foreign governments to
the agency to enter new, long-term cooperation arrangements without having the
information sharing and investigative assistance authority provided by the Act as
part of its permanent authority.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 77
Actively participate in multinational
cooperative enforcement against
mass-marketing fraud, messaging
abuses, and privacy and data security
breaches.
Measure 1.3.2
• The FTC has limited control
over the extent to which foreign
governments will provide
information or cooperate with
the FTC on law enforcement
matters. Data-protection rules in
Europe and other jurisdictions
may present information sharing
challenges. In addition, foreign
legal rules often prohibit or limit
or enforcing FTC judgments
and orders, including asset
preservation or collection orders.
• The impact of the COVID-19
pandemic on multinational
• The U.S. SAFE WEB Act lapsed
on September 30, 2020. The Act
was renewed and signed into law
for an additional seven years on
October 20, 2020. In the months
immediately leading up to the
2020 sunset date, OIA was unable
to move forward several matters
that required SAFE WEB authority
due to concerns that the statute
would lapse before the matter was
complete.
•
• The FTC uses its U.S. SAFE WEB Act authority to expand its international
enforcement efforts and continues its outreach efforts to foreign governments to
the agency to enter new, long-term cooperation arrangements without having the
information sharing and investigative assistance authority provided by the Act as
part of its permanent authority.
•
networks may operate only virtually or with reduced goals.
• Due to the COVID-19 pandemic, the priorities of some of these multinational
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202278
Provide policy advice to foreign
consumer protection agencies.
Measure 1.3.3
• The FTC has limited
control over whether
foreign governments
or international
bodies will consider
or implement policy
proposals given
their own political
considerations,
domestic stakeholder
concerns, etc.
• The impact of the
COVID-19 pandemic
on foreign consumer
protection agencies.
• Availability of foreign
agency resources.
• Due to the COVID-19 pandemic, the priorities of some foreign consumer protection
agencies may not align fully with those of the FTC.
• Foreign agencies might not have the resources to devote to international engagement.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 79
Provide technical assistance to
countries establishing consumer
protection regimes, as well
as providing selected foreign
work alongside FTC attorneys,
investigators, and economists to
learn about the FTC’s approach to
consumer protection enforcement
and to promote further cooperation.
Measure 1.3.3
• Availability of external
resources.
• Support of U.S.
embassies abroad.
• Willingness of foreign
governments to
accept U.S. technical
assistance.
• The impact of the
COVID-19 pandemic
on foreign consumer
protection agencies.
• Providing international technical assistance would be hampered if external resources
are not available, U.S. embassies abroad are not supportive, or foreign governments are
not willing to accept U.S. assistance and advice.
• The International Fellows Program may be hampered if travel restrictions due to
COVID-19 continue.
Target advocacy activities to
encourage federal regulators
to ensure proper consumer
amicus briefs to assist in consistent
interpretation of statutes.
Measure 1.3.4
Indicator 1.3.IND.1
• Domestic advocacy
the decisions made
by federal regulators.
Those regulators often
receive pressure from
who may be making
recommendations
that are not consistent
with the FTC’s.
•
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202280
In the enforcement area, the FTC worked closely with its
federal, state, local, and international partners on numerous investigations, exceeding
the targets for collaboration with both domestic and international counterparts to
enhance consumer protection. The agency’s collaborative domestic efforts included
its case against Corporate Compliance Services, brought with the State of Florida, in
which the defendants allegedly tricked business owners into buying labor law posters
by sending mailers that mimic invoices from a government agency or authority. In
connection with this case, the FTC shared information with and received information
United States Postal Inspection Service, Department of Labor, Texas Secretary of
State, Florida Department of Revenue, and Florida Secretary of State. The FTC also
worked closely with its federal, state, and local partners on numerous investigations,
including the alleged real estate seminar schemes by Zurixx and Nudge, which the
FTC brought with the Utah Division of Consumer Protection, and its telemarketing
case against VoIP service provider Globex Telecom brought with the State of Ohio.
The FTC cooperated with a wide range of foreign
actions involving large-scale international frauds. These include: the FTC’s litigation
against a sprawling international scheme, On Point Global, which operated hundreds
of websites that promised consumers a quick and easy government service, such
Canadian-based company, and its CEO, which paid $6.75 million to settle charges
that they laundered credit card payments for, and assisted and facilitated, two tech
support scams that the FTC previously sued; and a lawsuit against a Canadian-
based operation, Educare Centre Services, which sold sham credit card interest
rate reduction services to U.S. consumers through Dominican Republic-based
telemarketers and also used a Canada-based VoIP provider, Globex Telecomm (and
related individuals), which ultimately settled the FTC’s charges for $2.1 million
authority under the U.S. SAFE WEB Act (SAFE WEB) to share information or provide
investigative assistance to foreign authorities.
The FTC also expanded its online tools for sharing data about international scams,
launching two new interactive dashboards that provide details about international
complaints submitted to Consumer Sentinel and econsumer.gov, a site created by
members of the International Consumer Protection and Enforcement Network
(ICPEN) to gather and share consumer complaints about international scams. With
de Industria y Comercio joining econsumer.gov this year, the econsumer.gov initiative
now includes agencies in 41 countries. Econsumer.gov complaints help inform
the FTC’s enforcement. For example, the agency received hundreds of complaints
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 81
to thousands from U.S. consumers, against online retailer Fashion Nova for its
ecommerce practices. The company agreed to pay $9.3 million to settle the FTC’s
allegations that it failed to notify customers about shipping delays and offer them the
right to cancel with a full refund.
The agency also worked closely with our foreign counterparts on COVID-19 matters,
including sharing information and consumer education materials on COVID-19
scams with international consumer networks such as ICPEN, the International
Mass Marketing Fraud Working Group (IMMFWG) (now GAEN – Global Anti-
Fraud Enforcement Network), the Unsolicited Communications Enforcement
Network, and the Global Privacy Enforcement Network (GPEN). For example, the
FTC assisted ICPEN’s fraud prevention efforts by raising awareness of COVID-19
scams through tweets, data analysis, and consumer information on econsumer.gov.
Consumer agencies around the world—from Costa Rica to South Korea to Turkey
to Zambia—shared this information on social media networks. We also provided
input to Latin American countries on a range of COVID-19 consumer issues ranging
from cancellations to phishing to health claims. The FTC also contributed to a policy
protecting online consumers during the COVID-19 crisis, which is part of the OECD’s
response to tackling the effects of the pandemic on the economy, and provided input
for the United Nations Conference on Trade and Development’s (UNCTAD) COVID-19
initiative on issues affecting consumer protection and competition issues.
On the enforcement front, the FTC referred to foreign counterparts its warning letters
to foreign companies that made unsubstantiated claims that their products and
therapies can treat, prevent, or cure COVID-19. In response, some foreign agencies
issued their own cease-and-desist letters or took other actions. Most of the foreign
entities that received warning letters have complied with the FTC’s request that
they cease making all such claims for products that they advertise, market, sell, or
otherwise promote or make available in the United States. The agency also obtained
enforcement cooperation from some foreign regulators with respect to foreign VoIP
providers that facilitated illegal COVID-19 robocalls.
The FTC continued its work to protect consumer privacy in cross-border data transfer
(APEC) Cross-Border Privacy Rules. The agency also continued to implement the
EU-U.S. Privacy Shield Framework as well as the Swiss-U.S. Privacy Shield, bringing
two enforcement cases in FY 2020. Following the European Court of Justice’s
invalidation of the Privacy Shield Framework in July 2020, the FTC has worked with
the Department of Commerce and other agencies on the continuation of transatlantic
In the policy arena, the FTC has continued to work to develop market-oriented
work. Bilaterally, the FTC provided informal input to agencies that are developing
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202282
legislation on digital and privacy issues and participated in negotiating consumer
protection provisions in free trade agreements. Multilaterally, the FTC provided
comments on a range of policy issues. For example, the FTC took a leading role in
the privacy and consumer protection work of the OECD and championed empirical
work on measuring the benefits of consumer protection. The FTC also provided
its experience with children’s privacy in connection with the OECD’s review of its
guidelines on protecting children online. The agency also provided comments to the
and its consumer protection peer review process. FTC staff have also actively engaged
in consumer protection issues related to the Internet Corporation for Assigned Names
issues relating to Whois data and privacy laws.
In addition to the jurisdictions indicated on this map, the FTC provided consumer protection and privacy
Asian Nations (ASEAN), as well as technical guidance on enforcement and policy issues to global and regional
agency networks such as ICPEN, GPEN, UCENET, FIAGC, RIPD, APPA, and the African Consumer Protection
Dialogue.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 83
During FY 2020, the FTC conducted several technical assistance missions and
capacity-building training sessions for developing consumer protection and privacy
agencies, supported by a mix of funding sources, including in-kind donations from
the recipient agencies. The FTC’s technical assistance programming included in-
person training sessions in Argentina, Chile, India, Paraguay, and Uruguay. Due
capacity-building programs with agencies in Bahrain, Bermuda, Peru, and Singapore.
These sessions provided foreign regulators and law enforcers with information on the
FTC’s approach to emerging digital consumer protection issues, as well as practical
investigational skills and tools for cross-border cooperation.
the COVID-19 pandemic limited travel. The Fellows worked directly with agency staff
on consumer protection matters.
Promoting international cooperation is a long-term endeavor that can be affected by
events beyond the agency’s control, such as foreign court proceedings and political
changes that result in changes in foreign counterpart agencies’ policies and staff, and
restrict best practices and information exchanges. Political turmoil in certain regions
pandemic presented numerous challenges, but the FTC was able to overcome many of
those challenges by using technology creatively to work with its counterparts around
the world.
In the consumer protection advocacy area, FTC staff submitted a comment
to the National Telecommunications and Information Administration in response
to its Request for Comment regarding the development of its approach to consumer
privacy.
In a combined consumer protection and competition advocacy letter, FTC staff
commented to the Department of Health and Human Services Concerning the 21st
with FTC’s comment. The FTC’s BCP staff also commented on the NIST proposal of
proposed framework.
• Continue to collaborate with federal, state, and local partners on investigations.
• Develop new initiatives with foreign counterparts on consumer fraud and other
COVID-19 considerations.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202284
• Continue to highlight the importance of strong enforcement as a key component of
consumer protection, including on privacy and data security, and messaging abuses
such as robocalls and spam, within the OECD, APEC (including the Digital Commerce
Steering Group), the Global Privacy Assembly (formerly the International Conference
of Data Protection and Privacy Commissioners), and other multilateral policy
• Continue to engage with other U.S. government agencies and with European
governments and privacy and data protection authorities to develop mechanisms for
• Work closely through GPEN and directly with foreign data protection authorities
to provide enforcement assistance, which, in appropriate cases, could include
information sharing and investigative assistance pursuant to the U.S. SAFE WEB Act.
• Engage in enforcement cooperation pursuant to the APEC Cross-Border Privacy Rules
(CBPR) and work to expand membership in the CBPR system.
• Work with international partners to strengthen cooperation among enforcement
UCENet, and the IMMFWG (now GAEN – Global Anti-Fraud Enforcement Network).
Enhanced cooperation may include new and expanded initiatives with foreign
criminal authorities and private sector partners, particularly in countries that are
increasingly the source of fraud directed at American consumers.
•
with critical tools for cross-border enforcement and cooperation. On October 20,
• Using the SAFE WEB tools and other mechanisms for cross-border cooperation,
including technology-based systems, continue to create and sustain international
partnerships and networks to pursue matters involving foreign defendants, evidence,
and assets. Continue to participate in the implementation and review of the OECD’s
2016 Guidelines on Consumer Protection in the Context of Electronic Commerce and
the revised United Nations (UN) Guidelines on Consumer Protection, including by
participating in high-level OECD conferences such as the June 2021 conference on the
consumer marketplace of the future, which will shape the OECD’s work in this area
going forward.
• Further develop empirical evidence internationally on effects of new technologies
and business models on consumer behavior, including work on measuring the effects
of consumer protection, such as measuring harm from consumer fraud and consumer
law violations.
• Engage with the Intergovernmental Group of Experts on Consumer Protection at
the UNCTAD to develop and implement best practices under the revised 2015 UN
Guidelines on Consumer Protection and develop new opportunities for capacity
building and technical cooperation with developing agencies.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 85
• Continue to work with other U.S. government agencies as appropriate to address
global issues of mutual concern, including by engaging with agencies that are
developing legislation on consumer and privacy issues, and by participating in the
negotiation of consumer protection provisions of trade agreements.
• Continue to participate actively in enforcement networks such as ICPEN, IMMFWG
(now GAEN – Global Anti-Fraud Enforcement Network), GPEN, and UCENet and
encourage coordinated enforcement actions that protect U.S. consumers. Continue to
engage in technical assistance and capacity-building activities in jurisdictions such as
India, with a focus on preventing fraud aimed at American consumers and enhancing
enforcement cooperation to combat deceptive schemes.
• Further develop the International Fellows and staff exchange programs.
• File comments or otherwise engage in advocacy with local, state, federal, and foreign
consumers and an awareness of the intersection of competition and consumer
protection concerns.
• File amicus briefs with federal courts, when appropriate, to address issues that affect
consumer protection.
•
that the FTC provides to local, state, and federal government entities on consumer
protection policies have been considered and adopted.
387 359 369 453 551 375 Exceeded 375
Number of investigations or cases in which the FTC and other
U.S. federal, state and local government agencies shared evidence or information that
contributed to FTC law enforcement actions or enhanced consumer protection.
This measure tracks the amount of information sharing by the FTC and other domestic
law enforcement agencies to further the goal of protecting consumers from fraud. The
geographic location and other demographics may affect the types of fraud that consumers
encounter, making it important for government agencies to share information and
resources to enhance consumer protection.
BCP continues to place an emphasis on leveraging resources with
domestic partners and encourages staff to work with other U.S. federal, state, and local
government agencies to further the goal of protecting consumers from fraud. In FY 2020,
BCP shared information with other U.S. federal, state, and local government agencies in 337
investigations or cases. In FY 2020, BCP received information from other U.S. federal, state,
and local government agencies in 214 investigations or cases.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202286
³
Number of investigations or cases in which the FTC
obtained foreign-based evidence or information or engaged in other mutual assistance that
contributed to FTC law enforcement actions or in which the FTC cooperated with foreign
OIA works to expand cooperation and coordination between the FTC and international
consumer protection partners through information sharing, investigative assistance, and
the development of investigative best practices and enforcement capacity. This measure
counts the number of investigations and cases in which the FTC and foreign consumer
protection agencies shared information or engaged in other enforcement cooperation.
53 50 43 48 42 40 Exceeded 32 35
In FY 2020, the FTC cooperated in 42 instances on consumer
protection and privacy matters to obtain or share evidence or engage in other enforcement
cooperation in investigations, cases, and enforcement-related projects. Foreign authorities
assisted the FTC in activities such as sharing consumer complaints, obtaining corporate
records, and providing other investigative information. The FTC also provided assistance
to numerous foreign authorities through various mechanisms using its authority under
the U.S. SAFE WEB Act and other cooperation tools to share information and provide
investigative assistance using compulsory process. On September 24, 2020, Congress
2020. The FTC also cooperated on enforcement matters with international enforcement
Global Anti-Fraud Enforcement Network).
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 87
Number of instances of policy advice or technical assistance
provided to foreign consumer protection and privacy agencies, directly and through
promote consumer protection and privacy and data security by assisting countries in
developing and implementing consumer protection laws, rules, and best practices. These
efforts include providing policy advice, direct technical assistance and capacity building to
developing agencies, and professional development opportunities through the International
Fellows program.
66 66 64 71 60 60 Met 60
In FY 2020, the FTC provided policy input to foreign consumer
protection and privacy agencies in 60 instances. This included policy advice and technical
input on a wide range of consumer and privacy policy issues delivered through in-person
and virtual seminars, substantive consultations, oral presentations, and written comments.
Of the inputs, ten represent either in-person or virtual technical assistance missions to new
and developing consumer protection and privacy agencies, and two represent International
Fellows from Canada and Zambia who worked alongside FTC staff in support of the
consumer protection mission before the COVID-19 pandemic restricted travel to and from
the United States.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202288
Percentage of consumer protection advocacy comments and
that were successful, in whole or in part.
The FTC’s consumer protection advocacy takes many forms—including advocacy
comments, amicus briefs, workshops, reports, and testimony. This measure evaluates the
success rate for resolved consumer protection advocacy comments and amicus briefs. While
the FTC is primarily a law enforcement agency, advocacy work is a cost-effective way to
further the FTC’s consumer protection mission by allowing the FTC to address consumer
protection issues that may be affected by the actions of public entities, including regulators
and legislators.
To determine whether an advocacy comment or amicus brief is successful, staff waits for
the relevant case, legislative process, or agency rulemaking to be fully resolved. Once the
matter is resolved, the outcome is compared to the policy recommendations within the
advocacy comment or the legal arguments set forth in the amicus brief. Advocacies are
achieved. The FTC does not attempt to quantify or measure how much effect the FTC’s
advocacy had on the decision. While most advocacies contain either consumer protection
recommendations or competition recommendations, a few advocacy comments may have
both, and thus, are counted in this performance goal as well as Performance Goal 2.2.3.
*Results for this measure are often delayed and are reported as available.
85.7% 85.7% * * * 60.0% N/A 60%
Number of advocacy comments and amicus briefs on consumer
courts.
Whereas Performance Goal 1.3.4 measures the success of the FTC’s consumer protection
advocacy comments and amicus briefs, this indicator reports the quantity of consumer
a law enforcement agency, advocacy work is a cost-effective way to further the FTC’s
consumer protection mission and allows the FTC to address situations where consumer
protection may be affected by the actions of public entities, including regulators and
legislators. While most advocacies contain either consumer protection recommendations
or competition recommendations, a few advocacy comments may have both, and thus, are
counted in this indicator as well as Indicator 2.2.IND.1.
7 4 3 2
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 89
Strategic Goal 2: Maintain Competition to Promote
a Marketplace Free From Anticompetitive Mergers,
Business Practices, or Public Policy Outcomes.
Vigorous competition results in lower prices, higher quality goods and services, and
competition focus primarily on preventing anticompetitive mergers and business practices.
The FTC also engages in policy research and development, advocacy, and education to deter
anticompetitive practices, reduce compliance costs, and encourage governmental actors
at the federal, state, and local levels to evaluate the effects of their policies on competition
and consumers. This work is critical to protect and strengthen free and open markets – the
cornerstone of a vibrant economy.
The FTC has established three objectives to guide work in this area:
Identify and take actions to address anticompetitive mergers and
practices.
Engage in effective research, advocacy, and stakeholder outreach to
promote competition and advance its understanding.
Collaborate with domestic and international partners to preserve and
promote competition.
Goal 2 and its Strategic Objectives comprise the second of two mission-focused components
of the FTC’s FY 2020 Performance Report.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202290
Investigate potentially
anticompetitive mergers and
business conduct, and take
enforcement action to maintain
competition where appropriate
legitimate business activity.
Measure 2.1.1
Measure 2.1.2
Measure 2.1.3
Measure 2.1.4
Measure 2.1.5
Indicator 2.1.IND.1
Indicator 2.1.IND.2
• Resource constraints
• State and federal
legislation
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
• The ever-evolving legislative landscape, with respect to both federal and state antitrust
enforcement authority, may directly impact the Commission’s ability to challenge
anticompetitive mergers and business conduct.
Use continuous learning to improve
negotiation and litigation skills;
tools.
Measure 2.1.1
Measure 2.2.1
• Resource constraints
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 91
precedential, and deterrent effects
through negotiated merger and
nonmerger consent orders and
winning litigated orders.
Measure 2.1.1
Measure 2.1.2
Measure 2.1.3
Measure 2.1.4
Measure 2.1.5
Indicator 2.1.IND.1
Indicator 2.1.IND.2
• Resource constraints
• State and federal
legislation
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
• The ever-evolving legislative landscape, with respect to both federal and state antitrust
enforcement authority, may directly impact the Commission’s ability to challenge
anticompetitive mergers and business conduct.
Improve compliance with consent
decrees and orders and with Hart-
Scott-Rodino (HSR) Act reporting
obligations.
Measure 2.1.1
• Resource constraints
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
Provide transparency in the
decision-making process through
analyses to aid public comment and
updating guidance, etc.
Measure 2.1.1
Measure 2.2.1
Measure 2.2.2
• Resource constraints
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202292
In FY 2020, the agency concluded 27 matters in which it took action to maintain
competition, including 11 consent orders and 11 abandoned transactions, focusing its
a continuation of the Commission’s ambitious antitrust litigation docket, with 11 active
litigations from the current or prior years.
merger investigations. The agency successfully concluded three of its seven merger
litigations in their initial stages when the parties involved abandoned their transactions
after the Commission issued its complaints.
For example, the Commission issued an administrative complaint alleging that Illumina
sought to maintain its monopoly unlawfully in the U.S. market for next-generation DNA
a nascent competitor. According to the complaint, Illumina, the leading provider of NGS
products using predominant short-read sequencing technology, sought to acquire PacBio,
which sold long-read sequencing-based NGS products that posed a current and future
staff to seek a preliminary injunction in federal court to enjoin the transaction pending
an administrative proceeding. In the face of the Commission’s challenge, the parties
abandoned their proposed transaction in January 2020.
Edgewell Personal Care Company’s proposed acquisition of competitor Harry’s. According
to the complaint, the deal would have eliminated a disruptive and innovative rival that
has driven down prices and spurred innovation in the otherwise duopolistic U.S. market
as an internet-only, direct-to-consumer wet shave brand, and in 2016, entered into brick-
Conduct market research to inform
future enforcement efforts.
Measure 2.1.1
Measure 2.1.2
Measure 2.1.3
Measure 2.1.4
Measure 2.1.5
Indicator 2.1.IND.1
Indicator 2.1.IND.2
• Resource constraints
• Evolving technologies, automation, and intellectual property issues continue to increase
the complexity of antitrust investigations and litigation. This complexity, coupled with
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 93
abandoned their acquisition in the face of the FTC’s challenge, and the Commission
subsequently dismissed its complaint.
The Commission remains vigilant in its ongoing commitment to maintaining competition
in markets for essential health care services. This year, the FTC issued an administrative
complaint challenging a proposed merger between Jefferson Health and Albert Einstein
Healthcare Network, two leading providers of inpatient general acute care hospital
and rehabilitation services in the Philadelphia, PA area. According to the complaint, the
merger would have eliminated the head-to-head competition that drives improvements
in quality and service, upgraded facilities, and investment in technology and innovation
in Philadelphia and Montgomery counties. Post-merger, the parties would control 60
percent of the general acute care services in Philadelphia County and at least 45 percent in
to enjoin the transaction pending a full administrative hearing. Following a weeklong
federal court hearing on the preliminary injunction action this matter is currently pending
in both federal court and administrative litigation.
The Commission continues to enforce the antitrust laws in important energy markets. In
February 2020, the Commission issued an administrative complaint to block a proposed
joint venture between Peabody Energy Corporation and Arch Coal. According to the
Powder River Basin (SPRB) region of northeastern Wyoming, eliminating competition
between the two major competitors in the market for thermal coal in the area. SPRB coal
is attractive to electric power producers in the central United States and upper Midwest
because the deposits are relatively inexpensive to extract and contain lesser amounts
SPRB coal with alternative energy sources such as natural gas, wind, solar, or nuclear fuels.
transaction pending a full administrative hearing on the merits. Following a two-week
federal court hearing on the preliminary injunction action, the federal district court granted
the Commission’s request to enjoin the transaction in September 2020, and the parties
subsequently abandoned their transaction.
In other pending litigation, the FTC issued an administrative complaint challenging Axon
Enterprise’s consummated acquisition of its body-worn camera systems competitor VieVu.
Before the acquisition, the two companies competed to provide body-worn camera systems
to large, metropolitan police departments across the United States. According to the
complaint, Axon’s May 2018 acquisition reduced competition in an already concentrated
market. In April 2020, the Commission entered a consent agreement with VieVu’s parent
currently pending in administrative adjudication.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202294
and JUUL Labs entered into a series of agreements, including Altria’s acquisition of a 35
percent stake in JUUL, that eliminated competition in violation of federal antitrust laws.
According to the complaint, this series of agreements involved Altria ceasing to compete in
the U.S. market for closed-system electronic cigarettes in return for a substantial ownership
interest in JUUL, by far the dominant player in that market. This matter is currently pending
in administrative adjudication.
permanent injunction and equitable monetary relief to halt an elaborate anticompetitive
scheme to preserve a monopoly for a life-saving drug. According to the complaint, the
FTC alleges that after acquiring the rights to Daraprim, the gold standard treatment for
toxoplasmosis, Vyera Pharmaceuticals immediately raised the price 4,100 percent and
engaged in a series of unlawful tactics, including distributional restraints and interference
with U.S. Food and Drug Administration (FDA)-mandated bioequivalence testing to prevent
generic entry into the market. The complaint further charges that Vyera signed data
assess whether development of an alternative treatment is worth pursuing. This matter is
currently pending in federal court.
As in past years, the FTC focused on its greatest asset in promoting competition: its staff.
The agency continued its emphasis on employee-led staff development through its Training
Council and mentoring programs. These programs, some of which were deferred due to
COVID-19, are cost-neutral, improve knowledge transfer on important antitrust issues,
and enhance information sharing between practitioners, thereby supporting the long-term
success of the competition mission. Despite the pandemic, however, the agency was able to
provide meaningful professional development opportunities to staff and those completing
internships within BC by leveraging digital platforms and other distance- learning tools.
of the technological tools necessary to improve processes and streamline operations
The FTC also faces a challenging landscape in attempting to maintain competition in
increasingly complex and pervasive technology markets that raise unique antitrust
advocacy tools at its disposal to promote competition.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 95
³
Percentage of full merger and nonmerger investigations
in which the FTC takes action to maintain competition.
This measure tracks FTC actions taken to maintain competition, including litigated
victories, consent orders, abandoned transactions, or restructured transactions (either
percentage of full merger and nonmerger investigations.
54.6% 49.1% 67.9% 62.9% 77.1%
Between
40.0%
and
70.0%
Not Met
Between
50.0% and 80.0%
The agency took action to maintain competition in 27 of 35 full
merger and nonmerger investigations that concluded during FY 2020. The FTC’s 27 actions
included 11 consent orders, two litigated victories (Benco, Peabody/Arch Coal), one
stipulated injunction (Indivior), one settlement with a party to an ongoing administrative
adjudication (Safariland), three matters in which the parties abandoned their transactions
or administrative proceedings (Illumina/PacBio, Edgewell/Harry’s, Post/TreeHouse),
• Leverage the recently established Technology Enforcement Division to ensure
thoughtful and effective antitrust enforcement to maintain competition in critical
technology markets.
• Work to secure additional resources necessary to enforce effectively the antitrust
from a competitive marketplace for their labor.
• Monitor the duration of investigations and the drivers of investigation length to
identify where and if the Commission can streamline or otherwise improve its
investigative processes.
•
provide targeted training programs to meet those needs, increasing the skills and
expertise of legal staff through continuous learning and retrospective analysis.
• Focus on enhancing the investigative process using improved technological tools and
investigations and litigation.
•
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202296
Consumer savings through merger actions taken to maintain
competition.
This measure reports the estimated amount of money that the Commission saved
consumers by taking action against potentially anticompetitive mergers. The number
totals).
$2.59
billion
$2.59
billion
$2.66
billion
$3.09
billion
$1.78
billion
$2.10
billion
Not Met $1.5 billion
The FTC saved consumers on average an estimated $1.78 billion
year, despite considerable consumer savings from merger actions in the healthcare,
pharmaceuticals, consumer goods and services, and manufacturing the agency fell short of
meeting its target for this performance goal. In large part, this is because unusually large
timeframe for the goal. Targets have been adjusted for FY 2021.
and nine abandoned transactions. This year’s results exceeded the target range for this
performance goal, primarily because more matters than anticipated led to enforcement
actions.
The agency’s 27 actions included 24 merger actions and 3 nonmerger actions in second
request or compulsory process investigations in a broad array of industries such as
healthcare, pharmaceuticals, consumer goods and services, energy, and manufacturing.
The agency concluded eight merger matters in which it did not take an enforcement action
during FY 2020.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 97
³
Total consumer savings compared to the amount of FTC
resources allocated to the merger program.
This measure reports the estimated amount of money that the Commission saved
consumers by taking action against potentially anticompetitive mergers compared to the
(average of the current year and four prior year totals).
$46.40 in
consumer
savings
per $1
spent
$55.60 in
consumer
savings
per $1
spent
$50.30 in
consumer
savings
per $1
spent
$65.90 in
consumer
savings
per $1
spent
$25.70 in
consumer
savings
per $1
spent
$42.00 in
consumer
savings
per $1
spent
Not Met
$35.00 in consumer
savings per $1 spent
In FY 2020, the FTC saved consumers approximately $25.74 for
every dollar devoted to its merger program. As mentioned in Performance Goal 2.1.2,
merger actions in the healthcare, pharmaceuticals, consumer goods and services, and
manufacturing resulted in considerable consumer savings in the period. These results
fell short of the target level for the period, due in large part to unusually large consumer
case-related spending during the period, primarily attributable to a growing antitrust
litigation docket, also resulted in a reduction in the ratio of estimated consumer savings to
program costs during the period.
Consumer savings through nonmerger actions taken to maintain
competition.
This measure reports the estimated amount of money that the Commission saved
consumers by taking action against potentially anticompetitive business conduct. The
year totals).
$1.02
billion
$1.12
billion
$1.10
billion
$1.77
billion
$901
million
$900
million
Met $900 million
From FY 2016 to FY 2020, the FTC saved consumers on average an
estimated $901 million per year through nonmerger actions taken to maintain competition.
This year, nonmerger actions in the healthcare, pharmaceutical, and consumer services
industries contributed to that total, allowing the agency to continue to meet the target for
this performance goal.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 202298
³
Total consumer savings compared to the amount of FTC
resources allocated to the nonmerger program.
This measure reports the estimated amount of money that the Commission saved
consumers by taking action against potentially anticompetitive business conduct compared
average” (average of the current year and four prior year totals).
$52.30 in
consumer
savings
per $1
spent
$39.60 in
consumer
savings
per $1
spent
$40.10 in
consumer
savings
per $1
spent
$75.80 in
consumer
savings
per $1
spent
$46.00 in
consumer
savings
per $1
spent
$40.00 in
consumer
savings
per $1
spent
Exceeded
$35.00 in consumer
savings per $1 spent
In FY 2020, the FTC saved consumers approximately $46 per dollar
devoted to its nonmerger enforcement program. As mentioned under 2.1.4, nonmerger
actions in the healthcare, pharmaceutical, and consumer services industries contributed
to that total, and when coupled with modest reductions in program spending, allowed the
agency to again meet the target for this performance goal.
years in the affected markets in which the Commission took merger enforcement action.
This indicator demonstrates that the Commission’s merger actions are guided in part by
use its resources in areas where the most positive change can be achieved. The number
totals).
$88.3 billion $103.4 billion $112.7 billion $69.4 billion
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 99
years in the affected markets in which the Commission took anticompetitive market
enforcement action.
This indicator demonstrates that the FTC’s nonmerger actions are guided, in part, by the
use its resources in areas where the most positive change can be achieved. The amount
totals).
$77.10 billion $75.5 billion $80.48 billion $11.9 billion
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022100
Improve the agency’s understanding
of various practices and
developments in the marketplace.
Measure 2.2.1
Measure 2.2.2
• Resource constraints
• Financial and personnel resource limitations, driven primarily by the costs of
litigation, may reduce resources available to provide reports, studies, workshops, and
conferences.
Increase transparency and improve
the public’s understanding of the
FTC’s enforcement policies and the
Measure 2.2.1
Measure 2.2.2
Measure 2.2.3
Indicator 2.2.IND.1
• Resource constraints
• Financial and personnel resource limitations, driven primarily by the costs of
litigation, may reduce resources available to provide reports, studies, workshops, and
conferences.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 101
Target advocacy activities to
encourage state and federal
government policymakers
to evaluate the competitive
implications of their existing and
proposed policies.
Measure 2.2.3
Indicator 2.2.IND.1
• Financial and
personnel resource
limitations, driven
primarily by the costs
of litigation, may
reduce resources
available for this
objective.
• Domestic advocacy
decisions made by
outside parties. Those
decision makers often
receive pressure from
who may be making
recommendations
that are not consistent
with the FTC’s.
• Advocacy efforts may be limited due to reduced resources.
•
Increase transparency and improve
the public’s understanding of the
FTC’s enforcement policies and the
Measure 2.2.3
Indicator 2.2.IND.1
• Financial and
personnel resource
limitations, driven
primarily by the costs
of litigation, may
reduce resources
available for this
objective.
• Advocacy efforts may be limited due to reduced resources.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022102
of economic developments and emerging business practices and inform antitrust policy
through consideration of diverse perspectives. In FY 2020, the Bureau of Economics hosted
its Twelfth Annual Microeconomics Conference. This two-day workshop brought together
scholars working in areas related to the FTC’s antitrust, consumer protection, and public
policy missions. The agency also hosted a workshop on non-compete agreements in the
workplace, which examined antitrust and consumer protection issues. The FTC held a joint
workshop with the FDA on the competitive marketplace for biosimilars. The FTC also held
Vertical Merger Guidelines. The second session was cancelled due to the pandemic, but
the FTC accepted written comments. Finally, in FY 2020, the Bureaus of Competition and
to consumers and competition raised by data portability.
The FTC continued to respond to requests for comment from local, state, and federal
implications of pending governmental actions that may have a major impact on consumers.
comments, and two advocacy comments that addressed both competition and consumer
protection issues. Two of the ten competition advocacy comments were submitted to
federal government agencies, and eight were sent to state legislators and regulators. These
advocacy comments address a variety of industries and competition issues, including
restrictions on telehealth, electronic health information, scope of practice limitations,
enforceability of reasonable and non-discriminatory (RAND) licensing commitments,
activities are conducted with sensitivity to state policy and law-making authority.
reported to the antitrust agencies under the Hart-Scott-Rodino (HSR) Act. The Commission
plans to use the information obtained in this study to examine trends in acquisitions and
have raised competitive concerns, and the nature and extent of other agreements that may
and two health systems to provide information that will allow the agency to study the
innovativeness of healthcare services. The COPA study will collect information over the next
several years that will help FTC staff to conduct retrospective analyses of existing COPAs.
The agency also furthered its efforts to advance public understanding of its competition
decisions through the publication of analyses to aid public comment, speaking
engagements, and the “Competition Matters” blog, which covers an array of competition
policy and practice issues. In addition, the agency issued several reports dealing with
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 103
deals since FTC v. Actavis, in which the U.S. Supreme Court held that a branded drug
manufacturer’s reverse payment to a generic competitor to settle patent litigation can
violate the antitrust laws. The FTC also prepared a Congressionally-mandated report on its
standalone authority under Section 5 of the FTC Act to address high pharmaceutical prices.
The FTC will continue to identify opportunities to advance the public’s and its own
understanding of competition issues in a dynamic and increasingly complex marketplace,
particularly with respect to health care, technology, and intellectual property. The agency
must continue to use its limited resources to expand its advocacy and outreach efforts,
but it must balance this activity with increased demands from its resource-intensive
enforcement efforts. The agency must also expand its use of technology and public
•
enhance the FTC’s understanding of various practices and developments relevant to
competition in the marketplace. For example, the Commission will work to digest the
abundant information collected through its 21st Century Hearings initiative to inform
its short- and long-term competition enforcement and policy priorities.
• Continue to make related materials, including transcripts, written submissions,
reports, and policy papers accessible to the public.
• Seek advocacy opportunities at local, state, and federal government levels to
entry.
• Review and pursue amicus opportunities in the federal courts in cases that may affect
competition and, ultimately, consumer welfare.
• Generate reports, policy papers, working papers, and other public documents
appropriate, make recommendations regarding actions or policies to promote
competition.
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Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022104
Number of workshops, seminars, conferences, and hearings
This measure demonstrates the Commission’s commitment to ensuring that consumers
competition-related issues.
3 3 7 11 4 3 Exceeded 3
Number of reports and studies the FTC issued on key
competition-related topics.
This measure reports competition policy-related activities such as Commission or staff
produced after substantive investigation, study, or analysis. These activities enhance the
public’s knowledge of competition issues and promote the adoption of policies based on
sound competitive principles to the extent possible. Also included as part of this measure
are reports to other federal agencies that report on the FTC’s activities.
9 11 9 4 7 8 Not Met 8
Percentage of competition advocacy comments and amicus briefs
successful, in whole or in part.
The FTC’s competition advocacy takes many forms—including advocacy comments, amicus
briefs, workshops, reports, and testimony. This measure evaluates the success rate for
resolved competition advocacy comments and amicus briefs. Although the FTC is primarily
a law enforcement agency, advocacy work is a cost-effective way to further the FTC’s
competition mission and allow the FTC to address situations where competition may be
affected by the actions of public entities, including regulators and legislators.
To determine whether an advocacy comment or amicus brief is successful, staff waits for
the relevant case, legislative process, or agency rulemaking to be fully resolved. Once the
matter is resolved, the outcome is compared to the policy recommendations within the
advocacy comment or the legal arguments set forth in the amicus brief. Advocacies are
achieved. The FTC does not attempt to quantify or measure how much effect our advocacy
had on the decision. Although most advocacies contain either consumer protection
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 105
On June 30, 2020, the FTC and the U.S. Department of Justice (DOJ)
Antitrust Division, issued new Vertical Merger Guidelines that outline how the federal
antitrust agencies evaluate the likely competitive impact of vertical mergers and whether
those mergers comply with U.S. antitrust law. These new Vertical Merger Guidelines mark
addition, as the COVID-19 pandemic affected individuals and businesses, the FTC and the
DOJ issued a joint statement detailing an expedited antitrust procedure and providing
guidance for collaborations of businesses working to protect the health and safety of
Americans during the pandemic.
64.7% 58.6% * * * 60.0% N/A 60.0%
Number of advocacy comments and amicus briefs on competition
Whereas Performance Goal 2.2.3 measures the success of our competition advocacy
comments and amicus briefs, this indicator reports the quantity of competition advocacy
but advocacy work is a cost-effective way to further the FTC’s competition mission and
allows the FTC to address situations where competition may be affected by the actions
of public entities, including regulators and legislators. Although most advocacies contain
either consumer protection recommendations or competition recommendations, a few
advocacy comments may have both, and are thus counted in this indicator as well as
Indicator 1.3.IND.1.
recommendations or competition recommendations, a few advocacy comments may have
both, and are thus counted in this performance goal as well as Performance Goal 1.3.4.
*Results for this measure are often delayed and are reported as available.
16 16 6 12
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Improve the effectiveness of
investigations and promote
consistent outcomes through
cooperation with foreign
competition agencies.
Measure 2.3.1
• The development of
competition policy
involves numerous
stakeholders, political
considerations, and
economic factors.
• Enforcement of
the more than 140
competition laws
often overlaps and
intersects and can
• The COVID-19
pandemic is impacting
the resources and
priorities of foreign
competition agencies.
• Promoting international cooperation and convergence toward sound policy is a
long-term endeavor that can be affected by events beyond the agency’s control, such
as foreign court proceedings, the COVID-19 pandemic, and political changes that
result in changes in foreign counterpart agencies’ policies and staff, and restrict best
practices and information exchanges. Political turmoil in certain regions can also
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Work with foreign competition
agencies to promote international
policy convergence toward sound
and effective antitrust enforcement.
Measure 2.3.2
• The development of
competition policy
involves numerous
stakeholders, political
considerations, and
economic factors.
• Enforcement of
the more than 140
competition laws
often overlaps and
intersects and can
• The impact of the
COVID-19 pandemic
on the resources and
priorities of foreign
competition agencies
and on the FTC’s
ability to participate
in in-person meetings
and trainings.
• Promoting international cooperation and convergence toward sound policy is a
long-term endeavor that can be affected by events beyond the agency’s control, such
as foreign court proceedings, the COVID-19 pandemic, and political changes that
result in changes in foreign counterpart agencies’ policies and staff, and restrict best
practices and information exchanges. Political turmoil in certain regions can also
Fiscal Year 2022 Congressional Budget Justication
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Work within the U.S. government
inter-agency process and with other
domestic government entities to
support efforts to promote market-
based competition and policy
convergence.
Indicator 2.3.IND.1
• None
• None
Provide technical assistance
to countries with emerging
competition regimes; provide
work alongside the FTC.
Measure 2.3.2
• Availability of external
resources.
• Support of U.S.
embassies abroad.
• Willingness of foreign
governments to
accept US technical
assistance.
• The impact of the
COVID-19 pandemic
on the resources and
priorities of foreign
competition agencies
and due to travel
restrictions imposed.
• International technical assistance would be hampered if external resources are not
available, U.S. embassies abroad are not supportive, or if foreign governments are
not willing to accept U.S. assistance and advice.
• The International Fellows Program and the breadth of our technical assistance
program would be impacted by continuing travel restrictions imposed because of
the COVID-19 pandemic.
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To promote and maintain free and vigorous competition, the FTC continues to build and
strengthen relationships with competition agencies internationally and to work through
multilateral forums and with domestic partners to promote convergence toward sound
competition enforcement and policy. Progress in FY 2020 included:
The FTC engaged on
policy issues of common interest and shared enforcement techniques and experience
with staff from 32 competition agencies. The agency held high-level meetings with
the European Union, India, Japan, South Korea, Mexico, New Zealand, and the United
Kingdom. The FTC continued to facilitate and engage more deeply in cooperation and
coordination on individual matters with foreign counterparts. Notably, the FTC, with
the DOJ, entered into the Multilateral Assistance and Cooperation Framework among
the U.S. antitrust agencies and the competition agencies of Australia, Canada, New
Zealand, and the United Kingdom, representing a new benchmark in cross-border
enforcement cooperation. In FY 2020, the FTC cooperated on 29 investigations of
mutual concern with counterpart agencies from 13 jurisdictions. This included
21 merger matters and 8 conduct investigations; this is the highest number of
conduct investigations on which we have engaged in substantial cooperation in
matters involved cooperation with several agencies to achieve effective, sound, and
consistent outcomes. For example, during its review of the AbbVie/Allergan merger,
Commission staff cooperated with antitrust agencies in Canada, the European Union,
Mexico, and South Africa, working closely with the staff of the European Commission
understanding of and experience with the practices and approaches that the FTC uses
in its enforcement, which they then bring back to their agencies. The FTC has hosted
through the end of FY 2020.
The FTC is a leader in the ICN, a
preeminent venue for the coordination of international antitrust policy. In FY
2020, the FTC continued to serve on its Steering Group, as well as co-chairing the
implementation group, which promotes use by member agencies of ICN best practice
recommendations and work product, and the ICN’s team of working group leaders
who coordinate the network’s substantive work. The FTC also oversees the ICN’s
online training program to promote sound analytical and procedural practices across
contributor to new ICN work on mergers and dominance in digital markets and on
the competition assessment of laws and regulations. The FTC also led the drafting
of the ICN’s advice to competition agencies on dealing with the challenges of the
the relevance of competition to economies in crises and the importance of vigilant
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022110
In addition to the jurisdictions indicated on this map, the FTC provided competition policy advice and training
to numerous members of regional and other multilateral bodies such as the ICN, OECD, ACF, APEC, ASEAN,
and CARICOM.
enforcement. In light of emerging digital economy issues faced by competition
agencies, the FTC proposed and helped initiate important new ICN work to
explore the interface between competition, consumer protection, and data privacy
enforcement and policies. The Commission also hosted an innovative virtual annual
ICN conference once an in-person event became infeasible. The conference attracted
over 2,500 viewers from around the world.
The agency continued its active participation and
leadership in the OECD, APEC, UNCTAD, and the Inter-American Competition Alliance
to promote cooperation and convergence. For example, the FTC played a key role in
developing the OECD Competition Committee’s long-term project on competition
in the digital economy, and is collaborating with the OECD’s Secretariat to work on,
among other topics, the application of competition laws to intellectual property
rights and international enforcement cooperation. For the latter project, the FTC
is serving on a special project group tasked with developing a joint OECD/ICN
report focused on assessing members’ experience with international enforcement
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cooperation. In FY 2020, the FTC also served as a lead contributor to the preparation
of OECD Recommendations on procedural fairness in competition investigations and
enforcement, and on competitive neutrality.
The FTC continued engagement through meetings
and exchanges with counterparts around the world. FY 2020 also marked the 10-
year anniversary of the InterAmerican Competition Alliance, which the FTC helped
found to foster enforcement cooperation in the Americas. With the rapid growth in
the number of jurisdictions with competition laws over the past decades, the FTC has
expanded its program of technical assistance to help other agencies apply their laws
in ways that support competitive markets and compatible analysis and outcomes in
cross-border matters. In FY 2020, the FTC continued its technical assistance program
in Ukraine by placing experienced FTC lawyers in its competition agency, as resident
advisors, to share approaches to enforcement and investigation and to assist in
drafting amendments to the law. The FTC also assisted the Philippine Competition
Commission’s efforts to introduce competition concepts to the judiciary, regulatory
bodies, law schools, and the private sector. Until international travel was restricted,
the FTC conducted 13 competition technical assistance programs on site in 12
jurisdictions, including participating in two regional programs for ASEAN member
states. The FTC continued its technical assistance program throughout the pandemic
by conducting virtual training for the staff of competition agencies in Mexico, Peru,
the Philippines, Ukraine, and regional programs for agencies in Africa (through the
African Competition Forum), the Caribbean (for CARICOM and its member agencies),
and Eastern Europe.
Throughout the year, the FTC worked
with U.S. government agencies to address, in a coordinated and effective manner,
competition issues that implicate broader U.S. policy interests; those include the
protection of intellectual property, non-discriminatory treatment of U.S. companies,
and due process in antitrust investigations and proceedings. We also played an active
role in the U.S. delegation negotiating the competition chapter of the U.S.-UK Trade
Agreement.
BC routinely works with state AGs in its enforcement
efforts. State AGs also routinely join as co-plaintiffs in the FTC’s federal court
litigations.
• Support BC’s enforcement by assisting with the international aspects of its
investigations and litigation.
• Work with state AGs on joint enforcement efforts where the harm may occur in
local or regional markets and support solo state AG enforcement that aligns with
Commission priorities.
• Continue the FTC’s leadership role in the ICN by: guiding the ICN’s strategic direction
through Steering Group participation; leading the network’s implementation work,
including promoting use of its procedural fairness standards, and online training
Fiscal Year 2022 Congressional Budget Justication
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project; helping develop work on unilateral conduct, agency effectiveness, digital
markets, cooperation mergers, and competition advocacy; supporting its new project
on the intersection of competition law and policy with consumer protection and data
privacy law and policy; and setting its long-term agenda by leading the network-wide
“Third Decade” self-assessment and strategic review.
• Enhance the FTC’s participation in other multilateral and regional fora, including
the OECD, UNCTAD, and APEC by, for example, helping to develop the OECD’s work
on procedural fairness in competition investigations and enforcement, and the
application of competition laws to intellectual property rights, and by contributing to
policy dialogue on competition and the digital economy.
• Pursue opportunities for improving international cooperation and convergence,
following the conclusion of the Multilateral Mutual Assistance and Cooperation
Framework and based on recommendations outlined in the joint OECD/ICN
cooperation report, including the development of additional cooperation tools and
policy initiatives.
•
China, the European Union, India, France, Germany, Israel, Japan, Mexico, Singapore,
South Africa, South Korea, Taiwan, and the United Kingdom, through dialogue on
policy initiatives, case cooperation, and, as appropriate, the provision of technical
assistance.
• Work with other U.S. agencies, including bilaterally and in interagency and
intergovernmental fora, to address appropriate competition-related issues, e.g. in
the G7 on Digital Markets and Competition, and to negotiate competition chapters in
trade agreements.
• Continue the FTC’s international competition technical assistance program; deepen
the FTC’s capacity building work with competition authorities, including agencies
in Ecuador, India, Kenya, Nigeria, Peru, the Philippines, and Ukraine; and assist
governments that are promoting an expanded scope for competition in new sectors of
their economies.
• Further develop the International Fellows and staff exchange programs, including
through an FTC detail to the UK Competition and Markets Authority.
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³
Percentage of FTC cases involving at least one substan-
tive contact with a foreign antitrust authority in which the agencies followed consistent
analytical approaches and reached compatible outcomes.
OIA strives to ensure appropriate cooperation on and coordination of investigations
under parallel review by the FTC and foreign competition agencies. This measure gauges
the effectiveness of the FTC’s enforcement cooperation with foreign antitrust authorities
pursuing parallel enforcement activities.
100% 96% 98% 100% 100% 95% Exceeded 95%
Number of instances in which the FTC provided policy advice or
technical assistance to foreign competition agencies or governments, directly and through
enhance their enforcement capacity, build sound regulatory frameworks, improve agency
effectiveness, and promote competition policies in their economy. These efforts include
providing policy advice and direct technical assistance, as well as professional development
opportunities for international partners through the International Fellows program.
171 160 151 165 155 130 Exceeded 130
In FY 2020, the FTC cooperated on 29 enforcement matters. FTC staff
engaged in substantive case cooperation with 13 agencies, including those of Australia,
Singapore, South Africa, and the United Kingdom. The FTC and its counterpart agencies
inconsistent outcomes, particularly as additional antitrust agencies assert their jurisdiction
and as more agencies prosecute cases based on unilateral conduct theories.
In FY 2020, the FTC provided policy advice through consultations,
written submissions, and comments on proposed laws and guidelines to foreign
competition agencies in 118 instances. The FTC’s policy advice remains highly regarded
and sought after by new and experienced competition agencies, and by participants in
assistance missions, which included a number of regional programs that engaged staff
International Fellows Program in support of the competition mission.
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Percentage of full investigations in which the FTC and other U.S.
federal, state, and local government agencies shared evidence or information that
contributed to FTC law enforcement.
Due to the wide geographic impact of merger and nonmerger actions, it is important that
the FTC share information and resources with other domestic federal, state, and local
government agencies in the investigation and enforcement of competition cases. This
indicator reports the number of full merger and nonmerger investigations concluded in
government agencies.
N/A 52.6% 31.8% 22.2%
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Strategic Goal 3: Advance the FTC’s Performance
Through Excellence in Managing Resources, Human
Capital, and Information Technology.
foundation for overall mission success. The agency’s work in furtherance of Strategic Goal 3
highlights ongoing efforts to provide quality and timely services to the agency and enhances
the agency’s ability to focus on protecting consumers and maintaining competition.
Goal 3 is inherently collaborative and encompasses all of the agency’s key management
areas: human capital; infrastructure and security; information technology resources; and
across the agency and establishes a culture of customer service and effective planning,
administration, and management. FTC employees at all levels are expected to show
leadership in their areas of responsibility by exhibiting a willingness to develop and coach
The FTC has established three objectives to guide work in this area:
Cultivate a high-performing, diverse, and engaged workforce.
FTC mission.
Goal 3 and its Strategic Objectives comprise the Stewardship-Focused component of the
FTC’s 2020 Performance Report.
Update the agency’s Continuity of
Operations Plan (COOP), which
actions to ensure the preservation
and performance of FTC mission-
essential functions.
Measure 3.1.1a
• None
• None
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Continue conducting Facility
Security Assessments (FSA)
and engage General Services
Administration in risk mitigation.
Measure 3.1.1a
• COVID-19 pandemic
• FSAs must take place in the FTC’s physical space. The pandemic may continue to delay
Update the Electronic Security
System (ESS) in D.C.
Measure 3.1.1a
• COVID-19 pandemic
• Limited facility access may result in project delays depending on conditions in the local
area.
Enhance training program for
emergency preparedness that will
include various training formats,
including an online component.
Measure 3.1.1b
• COVID-19 pandemic
• Because of the pandemic, limited facility access and social distancing requirements
mean in-person training opportunities may be delayed. This may reduce the
opportunities for staff to practice and prepare for possible emergencies in FTC facilities.
into federal workspace as current
leases expire.
Measure 3.1.1a
Measure 3.1.1b
• Real estate market
and space suitability.
• Lack of federal workspace that meets FTC’s needs would prevent the agency from
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Satisfaction Survey and implement
action plan addressing survey
results.
Measure 3.1.2
• COVID-19 pandemic
• With the FTC’s move to telework due to the pandemic in spring 2020, there are limited
opportunities to pilot improvements to on-premises services, which means customers
may feel their feedback was not acted upon timely.
Improve the effectiveness and
management operations, including
procurement-related work.
Measure 3.1.3
• Changes in
government
requirements,
management,
may cause a shift
in priorities or
change how the FTC
approaches its work.
•
Improve Procurement Action Lead
Time (PALT).
Measure 3.1.5
• Changes in
government
requirements,
management,
may cause a shift
in priorities or
change how the FTC
approaches its work.
• If contract processing slows down, needed equipment, supplies, and services, including
expert witnesses for litigation, may be delayed, slowing down mission critical work.
Fiscal Year 2022 Congressional Budget Justication
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•
the current COVID-19 pandemic, and hired a dedicated Emergency Specialist. In
addition, the FTC has developed new guidance for FTC staff to ensure their safety
while using its facilities as the FTC implements its COVID-19 Pandemic Return to
Work Plan.
• The FTC completed installation of new surveillance cameras at FTC headquarters
as part of the ESS update.
• In order to ensure the safety of FTC staff during the COVID-19 pandemic, the
FTC moved quickly to make many work processes completely virtual, including
subpoenas and requests.
• The FTC worked with GSA to identify federal workspace that meets FTC needs for
• The FTC is in the planning stages of the leasing process for Constitution Center,
the HQ Satellite building, which will provide a new workspace for FTC staff due to
the current lease expiration.
• The FTC, in consultation with GSA, replaced the cafeteria in the HQ building with
a micro-market. This service change offers a variety of food options in a more
amenity-rich and accessible space for staff.
•
procurement, and travel systems from the Interior Business Center to the
Department of the Treasury’s Shared Service Provider, Administrative Resource
Center, in October 2019.
• FMO developed and issued comprehensive standard procedures for FTC litigation
responsibilities and controls to ensure timely and comprehensive support for BC
and BCP litigation teams, coordinating FMO, OCIO, and OCASO support.
•
leadership determine where to apply resources to address the FTC’s highest
priorities and risks. FMO will continue to support efforts to monitor and update
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• As a result of the COVID-19 pandemic, the FMO Acquisitions Branch followed
new federal guidance to extend the Sentinel Network Services (SNS) contract and
ensure there are no SNS service interruptions. Acquisitions negotiated with the
call centers that needed to be disbanded while call handlers worked remotely.
a new contract into place to remedy issues in the old SNS contract that has just
ended. The new, long-term award was made and superseded the old one without
any service interruption.
•
automated reporting of acquisition activities through more comprehensive use of
• Review and update the FTC COOP Plan to ensure the plan supports the essential
• Expand capacity to respond to and recover from emergencies by developing and
delivering in-person and web-based emergency preparedness training.
• Conduct a FSA of FTC’s Headquarters building and, as able, continue the cycle of FSAs
of FTC regional facilities.
•
• Work collaboratively with GSA to ERM in accordance with agency policy.
The extent to which the FTC is prepared to protect people and
property and to continue mission essential operations during emergencies.
(a) Achieve a favorable COOP rating
(b) The number of products and activities related to Physical Security that inform staff and
provide opportunities to practice emergency procedures.
ensure the preservation and performance of the FTC’s essential functions. Continuity
emergencies or other situations that may disrupt or potentially disrupt normal operations.
the agency’s ability to perform essential supporting functions during an emergency.
components of their continuity plans, as well as the policies, procedures, systems and
facilities agencies use to respond to and recover from an emergency. This assessment also
serves to identify issues for subsequent improvement.
(b) The Physical Security Branch develops promotional and educational materials such as
posters, publications, classroom and web-based training courses, and exercises and drills
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(a) 90%
(b) N/A
(a) 95%
(b) N/A
(a) 95%
(b) 39
(a) 95%
(b) 70
(a) COOP
exercise
cancelled
(b) 115
(a) 80%
(b) 42
(a) N/A
(b) Exceeded
(a) 80%
(b) 42
The Federal Emergency Management Agency, due to the Pandemic,
score its COOP plan.
The COVID-19 Pandemic resulted in numerous products related to employee safety
were published throughout the year; FTC ensured key information was distributed to
the workforce and focused on emergency preparedness, insider threat awareness, and
COVID-19 pandemic safety practices.
OED conducts an annual online Customer Satisfaction Survey that is voluntary, anonymous,
and offered to all FTC employees. Respondents are asked to indicate their level of
responsiveness to phone and email requests (Question #34).
N/A 81% 82% 87% 78% 75% Exceeded 75%
variety of administrative service requests provided by the OCASO. Services included in the
survey include transportation, space, facilities, physical security, and records management,
among others.
designed to give employees the information they need to remain safe in the workplace. This
measure tracks the number of products (posters, publications, etc.) and activities (training
opportunities, drills, etc.) focused on workplace safety and security that are provided to
FTC employees.
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FTC management is responsible for the preparation and fair presentation of annual
notes present fairly, in all material respects, the assets, liabilities, and net position in
accordance with U.S. generally accepted accounting principles. The ideal outcome is an
a disclaimer from opinion.
Opinion
opinion
Opinion
Met
Percentage of new entrant, annual, and termination Public
interests outside the federal government. The reports allow for a systematic review of the
N/A N/A N/A 98.3% 95.1% 95.0% Met 95%
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Percentage of contract actions awarded within FTC’s established
Procurement Action Lead Time (PALT).
The agency’s Acquisitions Branch engages in the time-intensive process of awarding
work, this measure tracks the percentage of contract actions awarded within established
lead times. The lead time varies depending on the type of contract.
78% 65% 57% 67% 89% 70% Exceeded 75%
system, the agency is now able to generate its PALT percentage automatically from a system
report. Previously, PALT was calculated manually off a spreadsheet of all contract actions
kept by acquisitions staff. This should lead to more accurate reporting. Data from FY16 to
Fiscal Year 2022 Congressional Budget Justication
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Enable the agency to recruit,
develop, and retain a highly
Measure 3.2.1
Measure 3.2.2
Measure 3.2.3
Indicator 3.2.IND.1
Indicator 3.2.IND.2
Indicator 3.2.IND.3
Indicator 3.2.IND.4
• Strong job markets.
• Federal human
capital regulations
and requirements are
set by the President,
Congress, and other
agencies such as the
Management (OPM),
Management and
Budget (OMB).
• Impact of COVID-19
on job market.
• Availability of cost-
effective external
training resources.
• Strong job markets have led talented staff to seek more lucrative opportunities at
higher-paying agencies or in the private sector.
• Changes to federal human capital regulations, legal authorities, mandates, and
strategies related to recruitment, training, and retention.
• External talent may be hesitant to seek new employment opportunities due to the
impact of COVID-19 on work conditions (possible exposure, lack of information on
• Cost-effective external training resources may not be available to supplement and
expand the agency’s internal employee development and training opportunities.
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human capital management programs: the Personnel Security Case Tool and the Electronic
Telework Agreement System.
Built upon the ServiceNow HR Service Module, this new system improves
The new system receives electronic delivery of investigation results from the Defense
Counterintelligence and Security Agency in a secure manner. This system will become
Use integrated workforce planning
and future human capital needs,
including Human Capital (HC)
professionals.
Indicator 3.2.IND.3
Indicator 3.2.IND.4
• Strong job market
for federal HC
professionals in the
Washington, D.C. area.
• Limited availability of
personnel.
• Staff may seek more lucrative opportunities at higher-paying agencies or in the private
sector.
•
Enhance Senior Executive Service
(SES) performance by ensuring they
and other executive leaders receive
USAP Training at least three times
per year. The training will coincide
with the major performance plan/
appraisal stages (Initial plan
formulation, Mid-year review, and
End-of-year closeout).
Measure 3.2.4
• USA Performance
(USAP) is a software
system managed by
OPM.
• USAP has delayed the
rollout of Senior Level
(SL/ST) performance
plans, which are
projected for mid- to
late-FY21.
• Executives must ensure they are available to attend the OPM USAP training sessions.
Lack of training could hinder the executive’s ability to process performance plans and
appraisals timely and accurately.
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system.
Leveraging the SharePoint platform,
HCMO rolled out a new electronic Telework Agreement System to allow all FTC
employees to submit new and updated telework agreements electronically. This
system replaces the manual paper process, which required the agency to store hard
copies of signed telework agreements. The new electronic system builds a telework
their supervisors for approval and then to HCMO’s Telework Coordinator. The system
allows employees to submit all intermittent, regular, and full-time telework requests.
Additionally, the system allows HCMO to track and report employees’ telework status,
which was previously not available in the paper-based system.
The agency migrated all SES
FY 2020 performance plans into USAP, and expects to migrate SL/ST performance
plan templates into this system in FY 2021, after OPM upgrades USAP.
paper-based to electronic systems. The success of these projects requires the FTC to
recruit and retain staff with the requisite project and database management skills
to successfully implement and manage electronic databases and provide support
to internal customers. The FTC’s ability to recruit the HC workforce of the future is
impacted by a strong labor market for federal HC professionals in the Washington,
D.C. area, the availability of opportunities at higher-paying agencies and in the private
sector, and by staff turnover in HCMO. Another factor is the limited availability of
• Develop an agency-wide workforce plan and implement an integrated workforce
planning process that supports succession planning within HCMO and other FTC
• Develop and implement/deploy an electronic onboarding and off boarding system
• Train internal customers to use the agency’s Federal Personnel and Payroll System
in FPPS to address proper separation of duties for HCMO staff, and requiring
personnel actions entered by one member of HCMO be approved by a second member
such actions.
• Leverage the FTC’s Service Now platform by integrating an HR Service Center with
existing FTC Service Now offerings. This will enable FTC staff to initiate HC service
requests, research answers to frequently asked questions, improve the customer
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022126
experience by allowing staff to access a single platform to receive services from
•
dynamic reports to inform the agency’s workforce planning and decision-making
processes.
• Improve the integrity of human capital data through periodic reviews to provide
reliable, accurate, data-driven insights to the FTC’s leadership team.
• Continue to support a culture of change management and adoption.
• Continue to improve the candidate-selection recruitment timeline through business
process re-engineering.
• Support agency efforts to promote diversity and encourage inclusion, including the
recently formed Task Force on Equity.
• Partner with hiring managers to deploy recruitment and outreach strategies to attract
the representation rate of people with disabilities, and using Veteran’s Recruitment
Appointment and other hiring authorities to increase the representation of veterans
at the agency.
• Partner with the University of Maryland’s Federal & Global Fellows Program to recruit
and onboard interns each spring.
• Develop, update, or revise HC policies to ensure that the agency’s HC programs
function within a regulatory framework, and ensure responsiveness and compliance
with governing statutes and regulations.
•
such as telework, reasonable accommodation, and wellness programs that support
employee retention.
• Track the number of reasonable accommodation requests received and resolved by
quarter.
• Provide new managers with the training, skills, and resources to process reasonable
accommodation requests correctly and foster an inclusive environment.
• Assess agency training needs and programs annually and determine how these
programs contribute to mission accomplishment to meet both individual and
• Continue to provide proactive support to managers, supervisors, and employees
on human resources programs and issues through individual consultations,
classroom and virtual training, brown bag sessions, webinars, notices and guidance
to employees, the agency’s newsletter (i.e., FTC Daily), and the quarterly HCMO
newsletter.
Fiscal Year 2022 Congressional Budget Justication
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The extent to which FTC employees consider their agency to be a
best place to work.
Employee satisfaction is measured by averaging the results from three questions on the
Federal Employee Viewpoint Survey (FEVS). Measuring the overall job satisfaction of FTC
employees provides managers with important information regarding employees’ general
correlated with employee retention.
81% 83% 85% 84% 89%
Exceed the
government-
wide average
by 10 points
(69+10=79%)
Exceeded
Exceed the
government-wide
average by 10 points
The extent employees believe the FTC encourages an
environment that is open, diverse, and inclusive.
This measure is based on the FEVS New IQ Index, which gauges the extent to which
employees believe the agency has policies and programs that promote a work environment
and sustain an inclusive work environment. Workplace inclusion is a contributing factor to
75% 78% 78% 78%
Data not
available
Exceed the
government-
wide average
by 10 points
N/A
Exceed the
government-wide
average by 10 points
• Continue to provide performance management training to managers/supervisors and
employees via online tutorials and individual consultations.
•
consistency of HCMO’s operating processes and procedures.
Fiscal Year 2022 Congressional Budget Justication
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³
The extent to which employees believe the FTC culti-
vates engagement throughout the agency.
The Employee Engagement Index of the FEVS determines this measure. The Index gauges
the extent to which employees believe that management listens and provides meaningful
support and feedback in various areas that assist staff in supporting the overall mission
of the agency. The index is based on FEVS questions that assess three sub-factors: Leaders
Lead, Supervisors, and Intrinsic Work Experience.
Employees’ perceptions of leadership’s integrity as well as leadership
behaviors such as communication and workforce motivation.
Interpersonal relationship between worker and supervisor, including
trust, respect, and support.
Employees’ feelings of motivation and competency
relating to their role in the workplace.
82% 83% 83% 84% 87%
Exceed the
government-
wide average
by 10 points
(72+10=82%)
Exceeded
Exceed the
government-wide
average by 10 points
The extent to which employees believe FTC management
promotes a results-oriented performance culture.
The Results Oriented Performance score of the FEVS determines this measure. The score
70% 73% 74% 75%
Data not
available
Exceed the
government-
wide average
by 10 points
N/A
Exceed the
government-wide
average by 10 points
Percentage of eligible FTC employees who have telework agreements.
This indicator provides information on overall employee participation in the FTC telework
an employee to perform work –during any part of regular, paid hours—at an approved
alternative worksite (e.g., home, telework center). It is an important tool for achieving a
resilient and results-oriented workforce.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 129
Number of requests for reasonable accommodations resolved through
the FTC’s reasonable accommodations process.
This indicator tracks the resolution of requests for reasonable accommodation submitted to
the HCMO Disability Program Manager by FTC employees or job applicants with permanent
or temporary disabilities that affect the performance of their job duties. Tracking this
data helps ensure the agency complies with the policies and procedures outlined in the
Administrative Manual, Chapter 3: Section 300 - Disability Anti-Discrimination Policy and
Reasonable Accommodation Procedures.
N/A 46 84 32
a hiring manager.
This indicator tracks the average number of days it takes for HCMO HC specialists to issue a
has closed. Providing a list of eligible job candidates in a timely manner enables managers
quickly as possible.
N/A 13.5 days 19 days 15.3 days
Average number of days to make a hiring decision.
This indicator tracks the average number of days between the date hiring managers receive
for processing after they make a hiring decision. Making timely hiring decisions increases
N/A 29 days 32 days 31.6 days
N/A 85% 88% 99%
NOTE: In FY 2020, we are reporting a higher frequency of telework participation as the
agency is mandated to work remotely in response to continuity of operations planning for
the COVID-19 pandemic emergency. Prior data measured routine telework participation in
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022130
Maintain a resilient and highly
available IT infrastructure by
streamlining monitoring and
management of IT systems and
services, building redundancy and
security into system architectures,
and proactively replacing and
Measure 3.3.1
• Rate of change
in information
technology industry.
• Increased number of
staff teleworking.
• Downward pressure
on data center
and infrastructure
spending across the
federal space.
• If information technology providers release new products and features too quickly, the
FTC may lag in technology implementation, increasing the likelihood of using obsolete
or unsupported technologies.
• Increased number of staff teleworking could have an impact on the architectural design
and performance of FTC’s IT network.
• Further downward pressure on Federal IT spending for IT infrastructure and federal
data centers could reduce resources available to replace aging components.
applications and data by migrating
to secure, cost-effective cloud-based
environments with vendor-backed
service level agreements for system
availability.
Measure 3.3.2
• Security of cloud
service providers.
• Downward pressure
on federal spending.
• Stringent requirements for information security related to cloud systems may increase
costs.
• Downward pressure on federal spending could lead to limited funding available for
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 131
Focus on documentation, process
improvements, continuous
monitoring, and data collection and
analysis to advance the maturity
of the FTC’s information security
program.
Measure 3.3.3
• Emerging and
unforeseen
information security
threats and malicious
actors.
• Changes in federal
mandates and
guidance regarding
information security.
• Labor availability,
both contractor and
federal staff, with
necessary skill sets for
new technologies.
• New technologies may present unique information security challenges or require
creative solutions to securing the system without affecting user experience.
• Evolving information security threats affect the security of individual IT systems and
services and the FTC’s overall risk posture.
• New federal mandates and guidance on information security and IT management create
new and unexpected challenges.
• Resources with skills needed to support emerging information security challenges and
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022132
• During FY 2020, the FTC completed projects to implement several new technologies,
applications, and systems designed to improve performance and user experience,
include:
•
platform.
•
agency endpoints and a user behavior analytics tool to monitor anomalies.
• Implementing a cloud-access security broker to provide secure access to cloud-
based systems and trusted external sites.
• Adopting a cloud-based identity and access management tool to enhance user
authentication and establish a foundation for future improvements to user
account management.
• The FTC continues to upgrade, reengineer, and replace aging, end-of-support
infrastructure components and applications to increase user functionality and
decrease the risk of downtime, system failures, and security vulnerabilities. In
FY 2020, the FTC completed projects to upgrade local area network switches and
desktop and server operating systems.
• The FTC destroyed over 2,700 boxes of temporary records stored at NARA and WNRC.
As part of its review, NARA has asked the FTC to update its retention schedules for
Continue the transition to electronic
information resource management
and electronic record keeping;
comply with the Managing
Government Records Directive
M-19-21.
Measure 3.3.5
• NARA approval of FTC
records schedules.
• Potential delay in transition of electronic records could occur due to dependence on
approved records schedules that the FTC is in the process of updating.
Research technology solutions for
managing email records.
Measure 3.3.5
• FTC’s IT
infrastructure.
•
agency.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 133
all mission and policy-related records. The FTC will resume transferring permanent
records and destroying temporary records after NARA approves new records
schedules.
• The FTC designated Records and Information Liaisons as points of contact across
the agency to assist in the implementation of records management policies and
procedures. The agency has established quarterly training and developed a critical
element that can be used in employee performance evaluations.
• In September 2019, NARA assessed email records management within 14 small
agencies, including FTC. The FTC is exploring technological solutions to address
NARA’s recommendations.
• The FTC implemented a new integrated library catalog, replacing a 20-year-old
system that reduces the FTC’s reliance on in-house technology in favor of a modern
cloud solution to support agency staff better.
• The FTC developed a SharePoint-based site that permits staff to search agency
records easily.
• The FTC has begun to update the FTC’s electronic information system inventory with
key characteristics related to records management.
•
services, agency policies and procedures regarding records management, privacy,
information security, and risk management may not align with technology and best
level of effort, and customer dissatisfaction if expected functionality is not available.
• Any constraint on resources, including funding and personnel, needed for IT
replace aging infrastructure components.
• Traditional methods of contracting for IT services may hinder the FTC’s ability to
leverage agile development methods and promote creativity and innovation amongst
contractors.
• Submit mission and policy-related retention schedules to NARA for appraisal and
approval.
• Continue to develop an agency-wide information governance policy to support
• Implement marking of all relevant FTC-owned and operated systems in accordance
• Expand scope of integrated library system to include subscriptions and databases.
•
• Complete the update of FTC’s electronic information system inventory with key
characteristics related to records management.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022134
•
cloud-based, low-code application development platforms to increase customer
satisfaction and decrease FTC staff time spent on processing paper-based forms.
• Begin piloting new security monitoring and management tools, including an
upgraded security information and event management tool to support monitoring
logs and events across all FTC systems, regardless of location and technology
platform.
•
that will support FTC’s increased use of cloud services and mobility with less risk of
performance degradation.
• Replace aging and unsupported equipment throughout FTC’s local area network.
• Continue to mature information security and risk management processes and
efforts.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 135
Availability of information technology systems.
Information technology systems must be available and accessible to support the FTC
mission. Lack of availability and accessibility severely constrains employees’ and managers’
ability to serve the public and stakeholders. This measure tracks service outages and
monitors the uptime of 11 critical information technology services, as well as the agency’s
infrastructure backbone, including:
• Email
•
• Wireless services
• Internet
• Intranet
• Phone and Voicemail
• Wide Area Network
• The agency’s primary public website (www.ftc.gov)
• Litigation support applications and systems
• Economic support systems
• Remote employee access
99.75% 99.70% 99.71% 99.98% 99.97% 99.60% Exceeded 99.60% 99.95%
Major FTC systems, such as email, litigation support systems, and
public websites, maintained high availability in line with cloud provider service level
agreements and continuous improvements and upgrades in platform technologies.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022136
Achieve a favorable rating in the FTC Cybersecurity Index
This measure monitors the agency’s progress in achieving multiple critical cybersecurity
metrics, each of which measures the agency’s cybersecurity posture and strength in
cybersecurity metrics that populate this Index are the percentage of:
• Major systems with a valid Authority to Operate (ATO). Measures the number of major
IT systems with a valid ATO, documenting review of system security controls and review
and acceptance of system risks.
• Government Furnished Equipment (GFE) workstations that meet the “acceptable”
vulnerabilities threshold. Measures the number of GFE workstations with critical and
potentially exploitable vulnerabilities, indicating the agency’s risk level for cyberattacks.
This is a measurement of the most frequently compromised assets.
• GFE workstations scanned quarterly. Measures the number of GFE workstations
scanned to ensure vulnerabilities are addressed in a timely manner based on risk and
impact. Leading indicator on the repeatability and effectiveness of the vulnerability
assessment and remediation processes.
• GFE workstations patched within 30 days. Workstations are scanned monthly to make
sure they have the most recent patches. GFE workstations that have been patched
within the 30 days prior to the monthly scans have a reduced opportunity to exploit
vulnerabilities.
•
the IT environment is known and secured. Undocumented assets cannot be effectively
secured.
Percentage of IT spend on Provisioned IT Services.
This measure tracks the agency’s progress in moving IT services to the cloud. Transitioning
to cloud-based services is a key component of FTC’s Information Resource Management
ultimately, cost savings.
N/A N/A 36.6% 37.0% 40.0% 40.0% Met 40.0%
FTC continued its efforts to migrate from legacy on-premise
infrastructure to provisioned services, meeting targets for spending on provisioned
services. Projects directly contributing to provisioned service spending include legacy
custom application migration to cloud-based platforms and deployment of a cloud-based
identity and access management system.
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022 137
N/A N/A 3 of 8 6 of 8 7 of 8 6 of 8 Exceeded 6 of 8
•
workstations that deviate from that baseline without a documented risk acceptance.
• Unprivileged users using multi-factor authentication. Measures the number of
unprivileged users (i.e., general FTC staff) using multi-factor authentication to access
• Privileged users using multi-factor authentication. Measures the number of privileged
users (i.e., system administrators with elevated system rights) using multi-factor
authentication to access the FTC network, decreasing the risk of insider threat and
FTC continues to improve its documentation regarding policy
Percentage of the FTC’s paper records held at the Washington
National Records Center (WNRC) that are processed and appropriately either (a) destroyed
or (b) transferred to the National Archives and Records Administration.
This measure tracks the agency’s progress in dispositioning its paper records, in
compliance with federal records management regulations and requirements. The agency
maintains approximately 18,000 boxes of temporary and permanent records at WNRC
that are eligible for disposition. The agency will destroy temporary records and transfer
permanent records to the NARA in accordance with our records disposition schedule.
Disposing of the agency’s WNRC holdings will ensure the agency is compliant with NARA
and OMB directives and will reduce spending for offsite storage. Timely transfer of
deadline to stop accepting transfers of paper records after 2022.
N/A N/A N/A 16.9% 31.3%
of WNRC
holdings
processed
Not Met [on hold]
as is standard practice, these requests were halted mid-year at NARA’s request pending
the FTC’s development of new records schedules for mission and policy-related work; this
is standard practice when new schedules are needed. The agency is collaborating closely
Fiscal Year 2022 Congressional Budget Justication
Annual Performance Report for FY 2020 and Annual Performance Plan for FYs 2021 and 2022138
Successfully transfer permanent electronic records dated
between 2004 and 2016 to NARA in a timely manner.
This measure will track the agency’s progress in processing and transferring its electronic
records in order to comply with federal records management regulations and requirements.
The agency began maintaining its permanent records in an electronic format in 2004.
Pursuant to the agency’s records schedule and the “Managing Government Records
Directive,” OMB M-12-18, the FTC is obligated to identify and transfer Permanent Electronic
Records to the custody of NARA.
N/A N/A N/A
2004-2006
records
transferred
No records
transferred
Transfer
permanent
electronic
records
dated
2007-2009
Not Met [on hold]
permanent electronic records for 2007-2009 to the custody of NARA. However, these
requests were halted mid-year at NARA’s request pending the FTC’s development of new
records schedules for mission and policy-related work; this is standard practice when
new schedules are needed. The agency is collaborating closely with NARA to develop new
schedules and has already begun to submit them to NARA for approval.
with NARA to develop new schedules and has already begun to submit them to NARA for
approval.
Descriptions
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Protecting Consumers
Protecting Consumers: Budget by Activity
($ in thousands)
Privacy and Identity Protection 61 $12,932 63 $13,974
Financial Practices 71 15,077 73 16,162
Marketing Practices 122 26,142 128 28,438
Advertising Practices 59 12,543 60 13,330
Enforcement 54 11,399 57 12,596
Consumer Response and Operations 25 18,890 26 18,862
Litigation Technology and Analysis 37 7,829 41 9,107
Consumer and Business Education 21 7,330 22 7,913
Economic and Consumer Policy Analysis 8 1,630 11 2,310
Management 12 2,531 12 2,631
Support 142 $80,287 160 $83,282
(Privacy and Identity Protection, Financial Practices, Marketing Practices, Advertising
Technology and Analysis, Consumer Response and Operations, Consumer and Business
Education, Economic and Consumer Policy Analysis, and Management). The FTC’s eight
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions142
The goal of Privacy and Identity Protection is to protect consumers’ privacy, while
help consumers prevent, mitigate, and remediate the damage caused by identity theft. This
program uses a combination of law enforcement, consumer and business education, and
policy initiatives to accomplish this goal.
Privacy and Identity Protection leads
nationwide efforts to protect consumers from unfair, deceptive, or other illegal
practices involving the use and protection of consumers’ information. Law
enforcement under Section 5 of the FTC Act is a central part of this program, including
cases in which companies have misrepresented how they use and share personal
information they collect from consumers or failed to take reasonable steps to secure
consumers’ data. Another key priority is protecting the privacy of children under age
13 by enforcing the Children’s Online Privacy Protection Act, which requires online
(including mobile) sites and services that collect personal information from children
to provide parents with notice and get their consent prior to collection. In the area
of the Gramm-Leach-Bliley Act. The FTC also enforces its Safeguards Rule, which
physical safeguards to protect customer records and information. In addition to its
enforcement efforts, the FTC issues reports and hosts workshops on general privacy,
mobile privacy, Big Data, the Internet of Things, data brokers, and new technologies
such as drones, smart TVs, and ransomware.
Privacy and Identity Protection
works to ensure the accuracy and privacy of consumer information used to screen
Protection enforces the Fair Credit Reporting Act (FCRA), which holds credit
bureaus and furnishers of information responsible for the accuracy of credit report
information, gives consumers the right to check and correct their credit reports,
limits how such information may be used, and requires reasonable procedures to
ensure that such information is obtained only by entities with a permissible purpose
to use it.
victim assistance, and education services on avoiding and responding to identity
theft and is the leading source of this information for consumer assistance and law
enforcement training. Consumers can report incidents of identity theft online or by
phone, and the complaints are entered into the FTC’s Consumer Sentinel Network,
which is accessible to domestic and international law enforcement partners.
Additionally, the Commission also issues numerous education materials to help
consumers protect themselves from identity theft and to deal with its consequences
when it does occur. The FTC launched an improved version of IdentityTheft.gov
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 143
(robodeidentidad.gov in Spanish), a free, one-stop resource people can use to report
and recover from identity theft.
Financial services play an important role in the daily lives of virtually all Americans.
gain consumers’ consent to charges, and abide by other basic rules, so that consumers can
make better-informed decisions and that law-abiding companies operate on a level playing
examining these developments, reaching out to stakeholders, gathering information
companies using new technologies must follow the same basic laws as traditional
market participants, including by honoring promises to consumers and gaining
consumers’ consent to charges.
Financial Practices protects consumers
applying for short-term loans, by ensuring that lending companies do not gain an
unfair competitive advantage by promising false loan terms and also by taking action
against companies that sell consumers’ sensitive loan application information (leads)
to non-lenders, often without the consumers’ knowledge or consent, subjecting them
to potential fraud and misuse.
Small businesses are a critical part of the economy,
businesses and their owners from deceptive and unfair practices in the marketing,
both education and enforcement efforts.
For most consumers, the purchase
of housing. Financial Practices leads the FTC’s efforts to protect consumers from
The Fair Debt Collection Practices Act prohibits deceptive, unfair,
and abusive debt collection practices that can harm consumers who are unable to
enforcement and education to protect consumers from such harmful practices. It also
conducts public workshops and makes policy recommendations on developments in
the debt collection marketplace.
deceptive offers to assist consumers in reducing or renegotiating their debt, including
a mortgage, or repairing their credit. These claims mislead consumers already in
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Consumers invest substantial time and money in
education, often incurring steep debt. Financial Practices leads the FTC’s enforcement
efforts against deceptive and unfair practices in the education sector, including
by taking action against high school diploma mills that charge consumers for
their employment and earnings prospects, and education lead generators that lure
consumers into providing their personal information under false pretenses.
include scams with high-dollar losses and scams that target or disproportionately impact
particular segments of the population. Marketing Practices spearheads the FTC’s efforts to
address violations of the Do Not Call and Robocall Rules, and tackles online and high-tech
fraud. Marketing Practices also enforces the Commission’s rules that prohibit spam and
protect purchasers of franchises and business opportunities, funeral services, and certain
products with warranties. By leading the Every Community Initiative and Legal Services
targets or disproportionately affects particular segments of the population, such as older
consumers, lower-income communities, ethnic or racial minorities, veterans and service
members, small business owners, rural communities, and others.
One focus of the FTC’s fraud program is to stop scams harming
people who seek to work independently or generate additional income. Marketing
Practices targets fraudulent business opportunity and investment schemes, including
coaching and mentoring scams, fraudulent multi-level marketing operations, and
invention-promotion or similar scams. Marketing Practices also targets “imposter”
schemes, where scammers impersonate government agencies or well-known
companies to enhance the credibility of otherwise deceptive sales pitches. In addition,
scams, fake healthcare plans, and sham charitable fundraising. Marketing Practices
also coordinates the FTC’s work to reduce fraud through research and analysis into
how fraud affects different segments of the population and how the agency can best
Practices leads the coordination of the FTC’s elder justice work.
Marketing Practices enforces the
Telemarketing Sales Rule (TSR), including the TSR’s Do Not Call and Robocall Rules,
to halt abusive and deceptive telemarketing schemes. Working closely with state
Attorneys General, other federal, state and international law enforcers, as well as
private sector partners, Marketing Practices targets areas for law enforcement,
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 145
to combat telemarketing fraud and violations of the Do Not Call and Robocall Rules.
Marketing Practices also has spearheaded innovation to spur development of
technological tools that block unwanted calls and to advance the next generation of
Caller ID Authentication.
Marketing Practices leads the FTC’s law enforcement efforts
to prevent and halt online fraud. Staff focuses on initiatives to keep pace with
the latest high-tech Internet schemes, as well as undercover surveillance and
rapid law enforcement response when fraudulent schemes are detected. Recent
law enforcement initiatives have focused on “tech support” scammers, who tell
consumers that their computers are infected with malware or have performance
problems in order to sell them expensive online repair software to remedy the
supposed infection or problem when, in reality, there are no problems with the
consumers’ computers.
Marketing Practices targets law enforcement against entities
that facilitate fraud, such as Voice over Internet Protocol service providers, “voice
blasters,” and lead generators that assist illegal robocallers, as well as payment
processors that participate in fraudulent schemes by providing fraudsters with access
to the banking or credit card systems, while helping the fraudsters avoid anti-fraud
detection efforts.
In addition to enforcing the TSR, Marketing Practices enforces
the Commission’s Franchise and Business Opportunity Rules, which require
opportunity. Marketing Practices also enforces the CAN-SPAM Rule and the FTC’s
interpretations of the Magnuson-Moss Warranty Act, and coordinates the agency’s
enforcement of the Funeral Rule.
Advertising Practices enforces the nation’s “truth-in-advertising” laws and, through reports,
advocacy, and industry outreach, articulates the FTC’s policies on advertising regulation.
social media, these laws require companies to tell the truth and to back up their claims
with reliable, objective evidence. Advertising Practices uses a variety of tools to protect
consumers from misleading claims, including bringing law enforcement actions in federal
and administrative courts, issuing warning letters, providing guidance to industries,
advocating effective self-regulation by the advertising industry, and providing consumer
and business education. Working to protect consumers’ health, safety, and economic
interests, these efforts span a broad range of products and practices.
Advertising Practices devotes substantial
resources to ensuring the accuracy of health claims in advertising and takes action
against companies making deceptive representations. In addition to traditional law
enforcement actions, Advertising Practices works with other federal agencies and
partners to combat misleading health claims by sending warning letters targeting
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions146
not only perennial scams, but also scams “du jour” such as bogus products purported
to treat, cure, or prevent COVID-19. Advertising Practices monitors deceptive
advertising of addiction-related services, including enforcement of the Opioid
Addiction Recovery Fraud Prevention Act. The FTC also creates educational materials
to help companies understand claims substantiation requirements and to help
consumers, including the elderly and other vulnerable populations, spot deceptive
claims.
Advertising Practices enforces the basic principles, incorporated in the FTC’s
Endorsement Guides, that endorsements must be truthful and not misleading, and
that material connections between advertisers and endorsers should be disclosed
clearly. Based on the idea that consumers have a right to know when they are
receiving a sales pitch, this principle similarly applies to social media marketing
(including consumer-generated content), paid search results, and “native advertising”
(the practice of blending advertisements with news, entertainment, and other
editorial content in digital media). The FTC issued an Enforcement Policy Statement
on Deceptively Formatted Advertisements, as well as an educational Business Guide
on Native Advertising, addressing these issues. Advertising Practices also enforces
the Consumer Review Fairness Act, which prohibits provisions in form contracts
that restrict a consumer’s ability to post truthful reviews about a seller’s goods,
businesses, especially small businesses, about how to comply with the FTC Act when
Advertising Practices addresses deceptive
national advertising practices in a variety of media and marketplaces through law
enforcement, staff guidance, and policy work. This work includes cases and warning
letters against television and data service providers, online ticket sellers, and
online travel sites; guidance to advertisers on making effective disclosures online;
overseeing the agency’s approach to broadband claims; and workshops on the ticket
resale market and lootboxes in online games. Advertising Practices also works with
Advertising Practices leads
the FTC’s efforts to stop the deceptive or unfair marketing of tobacco, including
e-cigarettes, and alcohol, administers federal laws governing the rotation of health
warnings on ads and packaging for cigarettes, and publishes annual reports on
cigarette and smokeless tobacco advertising and marketing. The FTC has announced
its intention to publish similar reports on e-cigarette advertising and marketing.
The FTC coordinates with the Food and Drug Administration (FDA), as the FDA has
assumed many tobacco-related responsibilities pursuant to the Family Smoking
Prevention and Tobacco Control Act. For example, the FTC and FDA sent joint warning
that were sold in packages closely resembling candy, cookies, and juice popular with
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 147
very young children. Advertising Practices also monitors self-regulation of the alcohol
advertising industry, and encourages improved standards and compliance.
Advertising
Practices enforces the Contact Lens and Eyeglass Rules, which require that contact
lens and eyeglass prescribers (optometrists and ophthalmologists) automatically
provide patients with a copy of their prescriptions at the completion of a lens or
Practices has brought a number of cases enforcing the Contact Lens Rule, has sent
warning letters to numerous prescribers and sellers regarding possible Contact
Lens Rule or Eyeglass Rule violations, and engages in ongoing business education. In
2020, the agency issued amendments to the Contact Lens Rule, and it has initiated
regulatory review of the Eyeglass Rule.
Enforcement litigates civil contempt and civil penalty actions to enforce federal court
injunctions and administrative orders in consumer protection cases; coordinates actions
with criminal law enforcement agencies through its Criminal Liaison Unit; develops,
reviews, and enforces a variety of consumer protection rules and guides; administers the
Bureau’s green marketing program; coordinates the negative option initiative; and handles
bankruptcy and collection matters in consumer protection cases.
Enforcement is responsible for ensuring compliance with all
administrative and federal court orders entered in FTC consumer protection cases.
To carry out this mission, Enforcement actively monitors compliance with consumer
protection orders, conducts investigations of possible order violations, litigates civil
contempt actions in federal court to enforce injunctions, and initiates court actions to
obtain civil penalties for administrative order violations.
The Criminal Liaison Unit (CLU) encourages criminal
prosecution of those responsible for consumer fraud by identifying fraudulent
activities, bringing them to the attention of criminal law enforcement authorities,
and coordinating civil and criminal enforcement actions. CLU works closely with
prosecutors, criminal investigative agents, and FTC staff to ensure the smooth
fraudulent activity, CLU also educates criminal law enforcement authorities about the
FTC and its mission, and provides legal and practical advice to FTC staff.
Enforcement develops, reviews, and enforces a variety of
consumer protection rules and guides. For example, in the energy arena, Enforcement
is responsible for rules requiring the disclosure of operating costs of home appliances
(the Appliance Labeling Rule), octane ratings for gasoline (the Fuel Rating Rule),
has responsibility for rules and guides as diverse as the Mail or Telephone Order
Merchandise Rule, which requires companies to ship goods when promised; the
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content labeling of textile, wool, and fur products, and care instructions; and the
Jewelry Guides, which provide guidance on the marketing of precious metals,
gemstones, and pearls.
The FTC’s Green Marketing program focuses on advertising
administers the program by developing the Commission’s Environmental Marketing
Guides, litigating enforcement actions, and conducting consumer research and other
studies to better understand the marketplace.
Enforcement coordinates the Negative Option
Marketing initiative that addresses deceptive practices in the use of negative option
offers (i.e., any offer in which a seller interprets consumers’ silence, failure to take an
as acceptance of an offer). To accomplish this mission, Enforcement litigates civil
actions against marketers that deceive consumers; hosts workshops with industry
representatives, consumer groups, and members of the academic community; and
issues reports that discuss marketing trends and provide guidance to industry.
Enforcement’s bankruptcy/commercial law attorneys represent
the Commission in federal bankruptcy court and advise staff generally on a host
of bankruptcy and commercial law issues. The bankruptcy group preserves and
enforces the Commission’s claims for monetary relief, ensures that defendants do
not use bankruptcy as a haven from law enforcement actions, and counsels staff on a
wide variety of bankruptcy and commercial law issues related to monetary relief.
Enforcement conducts investigations, attaches assets, and litigates
contempt actions in order to collect outstanding monetary judgments obtained by
the Bureau of Consumer Protection. Additionally, Enforcement coordinates collection
activities with the Department of the Treasury.
Litigation Technology and Analysis plays a central role in BCP’s investigation and
litigation of consumer protection matters, including working with attorneys to assess
litigation support needs, managing the technological tools used to conduct investigations
and litigation, and evaluating and implementing emerging technologies. In an age of
increasingly complex technology, staff needs access to the best tools available in order to
investigate targets and marshal evidence. Litigation Technology and Analysis is responsible
for various efforts and activities, including:
The Digital Forensic Unit conducts forensic examinations
information for use in court.
manage, and produce electronically stored information.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 149
to consumer victims.
Honors paralegals provide a wide range of assistance to
BCP on investigations, litigation, and policy initiatives.
The Tech Lab provides BCP staff innovative tools to investigate targets,
detect unfair or deceptive activity, capture evidence, and conduct research. The
Lab’s stand-alone network is designed to allow BCP staff to replicate consumers’
experiences with desktop, mobile, and other devices.
associated with new technologies, and provides technical expertise and training to
BCP staff.
Consumer Response and Operations hears directly from consumers across the country
measures the impact of mission activities, and allocates resources.
The Consumer Response Center responds to consumer
complaints and inquiries received by the toll-free consumer complaint lines,
877-FTC-HELP and 877-ID-THEFT, the FTC’s Internet complaint forms at
www.ftc.gov/complaint, and postal mail. Information from complaints is entered
into the FTC’s Consumer Sentinel Network and used to target law enforcement and
consumer and business education activities.
The Consumer Sentinel Network is the FTC’s secure
website that provides approximately 3,000 federal, state, local, and international law
enforcement users with access to more than 18 million consumer fraud and identity
million Do Not Call Registry complaints. Every year the FTC publishes a report of the
top consumer complaints received, including a break out of complaint data on a state-
by-state basis.
The National Do Not Call Registry is the mechanism
through which consumers can elect to avoid receiving telephone solicitations from
telemarketers. Telemarketers are required to remove any telephone numbers
included in the registry from their calling lists. The registry currently has over 240
million active telephone number registrations.
The Data Analysis Team performs analytical research, provides
data to the public on interactive dashboards, and creates reports about trends in
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consumer protection complaints. . The Data Analysis Team also provides analytical
every year for distributing millions of dollars of refunds obtained as a result of
FTC lawsuits. For example, from January 2019 through December 2019, the FTC’s
law enforcement actions yielded more than $231.9 million in refunds to defrauded
consumers, including $136 million mailed directly by the FTC to 1.92 million people.
Operations oversees and supports budget and performance
measurements, including strategic planning for the Bureau; oversees and supports
procurement efforts on behalf of the Bureau; monitors and reports on human capital
divisions and regions to ensure administrative and resource needs are met.
Consumer and Business Education runs creative national campaigns to educate
consumers about their rights and businesses about their responsibilities. It applies skill in
communications, design, and building partnerships to solve consumer protection problems.
Consumer and Business Education creates
print and online consumer and business education material in partnership with
other divisions in the Bureau of Consumer Protection and participates in hundreds
of outreach events including webinars, trainings, and presentations. It publishes
hundreds of blog posts in English and Spanish and sends free email alerts to over
400,000 subscribers. Consumer and Business Education manages the FTC’s bulk
publication ordering website (ftc.gov/bulkorder), through which about 13,000
distributed 13.7 million pieces of consumer education through the bulkorder site.
Consumer and Business Education developed a multi-media campaign,
complete with a dedicated website, about scams associated with the COVID-19
pandemic (ftc.gov/coronavirus/scams-consumer-advice and ftc.gov/es/coronavirus/
las-estafas-relacionadas-con-el-coronavirus). The site contains a library of more
than 80 consumer and business blog posts and scam alerts on topics ranging from
relief checks and treatment claims to charity fraud, government imposter scams,
and misinformation and rumors. The site also houses robocall recordings, videos
on avoiding COVID-19 scams and avoiding Economic Impact Payment scams, social
once-in-a generation economic shift resulting from the pandemic, DCBE developed
materials on the financial impact of the coronavirus, and will continue its work to
inform and protect consumers in this challenging environment. DCBE conducts
national and local outreach with partners to reach a variety of audiences, including
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 151
webinars, tele-town halls, Twitter chats, Facebook Live events, as well as interviews
with local and national media.
The Divisions of Consumer and Business Education and
Consumer Response and Operations continue to operate IdentityTheft.gov
(robodeidentidad.gov), an innovative website where identity theft victims can report
identity theft and get personal recovery plans. The mobile- and tablet-accessible
site also produces Identity Theft Reports that that victims can use in place of
police reports in most cases to help restore their credit to its pre-crime status. The
site also lets consumers report tax-related identity theft report the crime to the
IRS. IdentityTheft.gov is integrated with the Consumer Sentinel Network so that
consumers’ identity theft reports become available to law enforcement agencies
nationwide. More than 2 million victims have used the site to report identity theft
since its inception in January 2016. In FY 2019, Consumer and Business Education
distributed over 3.46 million print publications relating to consumer education on
identity theft.
Consumer and Business Education
developed and manages the Military Consumer campaign with the U.S. Department of
Defense, the Consumer Financial Protection Bureau, and Military Saves. The campaign
addresses unique challenges of military life that often make military families targets
for scammers. Service members and their families can use the campaign website
(MilitaryConsumer.gov
Consumer and Business Education developed
the “Net Cetera” (ftc.gov/netcetera) campaign to teach kids and parents how to
stay safe online. The campaign is informed by ideas from internet safety, child
development, cyberbullying, and public health experts. Consumer and Business
Education has distributed more than 14.7 million free copies of the campaign’s
to schools, school districts, law enforcement, libraries and other community
The Pass It On campaign (ftc.gov/PassItOn and ftc.gov/Pasalo in Spanish),
tailored to people age 65+, is a research-based campaign to share information about
fraud and encourage readers to share the information with a friend. The campaign
includes engaging videos and a collection of print and online material in English and
Spanish about current frauds, including identity theft and imposter scams. Material
scams work and what people can do in response. Over 13 million pieces of Pass It On
educational material have been distributed.
The FTC continued its successful efforts to educate businesses and
consumers about privacy and data security, distributing over 400,000 copies of
educational materials to help them address ongoing threats. The popular “Start
with Security” business outreach campaign continues with its suite of publications
(including guides and videos) that help businesses protect personal information,
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learn steps to take if a data breach occurs, and help customers avoid identity theft.
These materials are available in English and Spanish.
Consumer and Business Education manages the FTC’s online
business education website (business.ftc.gov), and publishes hundreds of blog posts
annually for business people, attorneys, and other professionals. Consumer and
Consumer Review Fairness Act, data security and cybersecurity, and the Fair Credit
Reporting Act.
Consumer and Business Education continued to expand its
“Cybersecurity for Small Business” campaign. Found at FTC.gov/Cybersecurity,
the campaign includes fact sheets on 12 cybersecurity topics as well as videos and
(SBA), the Department of Homeland Security, and the National Institute of Standards
and Technology to create and promote the materials.
Consumer and Business Education
establishes partnerships with attorneys general, law enforcement, and consumer
protection advocates who share FTC information with their constituents and
communities. Consumer and Business Education also manages National Consumer
Protection Week, an annual collaboration with local, state, and national groups that
highlights consumer education and fraud prevention. Campaign partners include
groups nationwide.
Staff conducts economic and consumer policy analysis to provide the Commission and
other policy makers with information to assess and formulate consumer protection policy.
In addition to evaluating the likely economic effects of Commission law enforcement action,
this work includes economic research and advocacy activities that foster understanding of
consumer good markets and consumer protection policy choices. They also work to ensure
that consumer interests are represented before various governmental and self-regulatory
bodies dealing with consumer-related issues.
To advance the development of sound
policy, economic and consumer policy analysis supports data and research projects
Past studies examined the effects of different types of disclosures on consumer
understanding of “recycled content” and “organic” claims for non-food products and
the likely effects on consumer choice of “resort fee” pricing in the hotel industry.
Economic
and consumer policy analysis supports targeted economic studies of issues in
consumer goods markets that are important to improving our understanding of key
consumer protection issues. Recent examples include studies of credit reporting
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 153
The program also supports consumer surveys, such as those measuring consumer
susceptibility to fraud, and workshops with outside experts in relevant areas, such
sharing economy.
Bureau of Economics
staff also provides input for comments to other federal agencies on issues related
to consumer protection goals. In the past, they have supported the development
of comments to the FDA on food labels and direct-to-consumer prescription drug
advertising. More recently, comments included those sent to the FDA on homeopathy,
to the Federal Reserve Board on rules and regulations regarding subprime loans, and
to the Consumer Financial Protection Bureau and the Department of Housing and
Urban Development on various changes in mortgage disclosure documents.
Several other functions within the Consumer Protection Mission directly support our
primary law enforcement work, including:
Through its Employee Development and
Training Program, the FTC ensures that staff receives the training necessary to
perform their jobs. BCP provides training through ongoing seminars, “brown bags,”
and lectures on topics such as collections issues and remote depositions. BCP also
sponsors periodic seminars for investigators, and provides technical trainings
throughout the year. In addition, BCP offers a mentoring program to staff.Staff also
participates in the FTC Agency-Wide Diversity Council.
The Bureau of Consumer Protection, in coordination with the Human
several recruiting events to select summer legal interns. Some of these interns receive
offers of permanent employment as entry-level attorneys. In addition, the Bureau
recruits lateral attorneys and other staff as needs arise.
Bureau management to ensure all administrative needs are met, such as arranging
travel, tracking the Bureau’s accomplishments, scheduling internal and external
meetings, maintaining a log of current cases, and interacting with callers and visitors.
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Promoting Competition
Promoting Competition: Budget by Activity
($ in thousands)
18 $3,785 19 $4,736
Merger and Joint Venture Enforcement 202 42,232 224 53,814
Merger and Joint Venture Compliance 11 2,300 11 2,716
Nonmerger Enforcement 127 26,670 143 34,757
Nonmerger Compliance 1 210 1 251
Antitrust Policy Analysis 26 5,867 32 7,309
Other Direct 20 4,162 20 4,845
Support 123 $69,184 147 $72,767
597
Nonmerger Enforcement, and Nonmerger Compliance) supported by Antitrust Policy
Analysis and other direct functions.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions156
While many mergers and acquisitions are either procompetitive or competitively
neutral, those that substantially reduce competition can raise costs to consumers,
inhibit innovation, lead to diminished product quality, and restrict consumer choice. The
primary means of identifying potentially anticompetitive deals. Under the Act, entities
Justice and wait a prescribed period before consummating their transactions. This waiting
period provides the antitrust enforcement agencies an opportunity to prevent potentially
anticompetitive mergers before they occur. In addition, the FTC reviews news publications,
industry research, and customer complaints to identify potentially harmful mergers not
subject to the HSR reporting requirements. To distinguish between mergers that threaten
competitive markets and those likely to promote competition or be competitively neutral,
the FTC conducts thorough investigations that incorporate detailed economic analysis to
assess the likely effects on competition.
enforcement by:
The FTC’s Premerger
must supply under the HSR Act. In addition to written materials, the PNO answers
Mergers reported under the HSR Act vary
tremendously in their complexity and potential for anticompetitive effects. In the
majority of cases, the agency can make a reasonable judgment about whether
a merger is potentially anticompetitive within a few days based on information
PNO prepares a summary description and a preliminary antitrust analysis of reported
transactions. These summaries are then reviewed by the Bureau of Competition’s
litigation divisions, the Bureau of Economics, and the Merger Screening Committee,
which includes participants from both Bureaus and convenes regularly to consider
which matters require further action. For transactions that are unlikely to harm
competition, the PNO, in conjunction with DOJ, may grant early termination of the
The
PNO administers the HSR Program for the FTC and the Antitrust Division of the
Department of Justice (the Antitrust Division), which share authority to challenge
anticompetitive mergers. The PNO shares transaction information and works with
the Antitrust Division to ensure that the two agencies consistently and uniformly
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 157
that only one agency initiates an investigation and, if necessary, challenges any given
transaction. Assignment to one agency or the other takes place after preliminary
review of a transaction, based primarily on each agency’s relative expertise in the
markets relevant to the proposed transaction.
responsibilities of the FTC and the Antitrust Division. To that end, the FTC
periodically develops and recommends improvements to HSR rules and procedures
and develops and implements improvements where appropriate.
As noted above, anticompetitive mergers or joint ventures can harm consumers
consumer choice, or inhibiting innovation. The Merger and Joint Venture Enforcement
Program seeks to prevent these effects in any market in which the FTC has reason to
believe a merger is likely to substantially lessen competition, particularly in sectors of
the economy that are important to consumers such as technology, health care (including
pharmaceuticals), energy, and retail goods and services.
Effective merger enforcement requires the Commission to identify anticompetitive
transactions and obtain appropriate relief to maintain competition in the market. To
identify whether a merger is anticompetitive, staff must determine whether the merger
diminish innovation, or otherwise harm customers, or 2) increases barriers to entry or
expansion.
The FTC uses a three-tiered approach to merger enforcement:
As described above, a Merger
Screening Committee—a committee that includes participants from both the Bureaus
of Competition and Economics—convenes regularly to consider which matters
require further action.
protecting consumers from acquisitions that may substantially lessen competition is
to prevent the harm from occurring. Often, the FTC is able to preserve competition
through negotiated settlements resulting in a consent order, or through the parties’
voluntary restructuring or abandonment of a transaction. Where these methods
are inappropriate or unavailable, the FTC uses its authority under Section 13(b)
of the Federal Trade Commission Act to enjoin anticompetitive mergers pending
anticompetitive consummated mergers, it initiates an administrative proceeding to
adjudicate the violation of law and restore competition. Whether achieved by consent
or in an administrative proceeding, the most common remedy for a merger involving
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions158
FTC may also use behavioral remedies to prevent competitive harm.
To enhance the FTC’s
ability to deter future anticompetitive mergers and acquisitions, the agency strives
considers as it determines whether to take law enforcement action. To this end, the
Commission promotes transparency by releasing guidelines and policy statements,
and making public facts underlying enforcement actions to provide companies with
the information needed to evaluate the likelihood that similar transactions may also
including analyses to aid public comment, complaints, and closing statements, to
explain the disposition of the case.
The Merger and Joint Venture Compliance program is responsible for the design and
implementation of Commission merger consent orders and for monitoring compliance
requirements.
Merger compliance staff work with
enforcement staff, the merging parties, and buyers to monitor the faithful and timely
retain or restore competition in the relevant markets. When the divestiture of assets
is delayed, the competitive viability of the assets may decline. To avoid delay, the FTC
typically seeks to identify an “up-front” buyer or incorporates order provisions that
limit the time within which divestiture must be completed.
Merger compliance staff closely monitor compliance with
order provisions and, where necessary, recommend that fallback order provisions
be invoked, such as trustee-managed divestiture or the divestiture of larger asset
packages. Where violations of order provisions occur, staff may recommend civil
penalty actions. Civil penalty actions entail investigation and, where necessary,
federal court litigation. In addition to structural remedies, staff also monitor
compliance with behavioral order provisions such as bans on the dissemination of
competitively sensitive information or requirements to seek approval for, or give
From time to time, parties under order submit
due to new market dynamics or other changes in circumstances. The FTC’s merger
compliance staff reviews these petitions to assess their impact on competition and
makes recommendations for Commission action accordingly.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 159
Merger compliance staff also investigate and take action where
where a violation has occurred, staff may recommend civil penalty action, which must
Antitrust enforcement supports free and open markets by preventing business practices
that restrain competition or foreclose entry by new competitors. To this end, the
to enter the market or that enable existing competitors to collude.
The FTC challenges a wide variety of business practices that may harm consumers by
innovation, or consumer choice. These anticompetitive practices generally fall into three
Identifying and proving these types of violations requires legal and economic analysis and
thorough investigation to distinguish between conduct that may threaten the operation
of open and competitive markets and conduct that promotes competition or otherwise
enforcement looks at anticompetitive agreements between competitors. While
some agreements among competitors can be procompetitive, under certain market
by raising prices or by reducing the quantity and quality of goods and services offered
in a particular market. The mission of this program is to deter, detect, investigate, and
remedy anticompetitive collusion or its facilitation.
Restraints on the distribution of goods from
competitors, leading to higher prices, reduced quality, or fewer choices. Under
certain circumstances, potentially unlawful distributional restraints may include
agreements restricting prices or other terms of resale, or agreements restricting the
agreement.
anticompetitive tactics to exclude new competitors that could challenge its monopoly
nor the attempt to achieve it through vigorous or aggressive competition violate the
antitrust laws, obtaining, increasing, or maintaining market power by unreasonably
exclusionary means is unlawful. The Commission’s enforcement efforts challenging
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions160
gain or maintain appreciable market power through conduct that would injure long-
term consumer welfare. A principal challenge with this enforcement activity is to
distinguish improper conduct from vigorous and innovative competition. To that
end, the FTC’s Bureau of Competition announced the creation of the Technology
Enforcement Division, dedicated to monitoring competition in U.S. technology
markets, investigating any potential anticompetitive conduct in those markets, and
taking enforcement actions when warranted.
The FTC primarily uses its
law enforcement tools to deter anticompetitive conduct and encourage voluntary
compliance with the antitrust laws. However, the Commission also releases guidelines
and policy statements, and makes public facts underlying enforcement actions to
provide companies with the information needed to evaluate the likelihood that
issue public statements, including analyses to aid public comment, complaints, and
closing statements, to explain the disposition of the case. The agency also provides
comments to federal, state, and local government agencies, as well as amicus curiae
briefs, advisory opinions, and legal and economic analyses to help inform others
about emerging issues relating to anticompetitive conduct.
As in its Merger Enforcement Program, the Commission obtains orders in its Nonmerger
Enforcement Program to stop harmful conduct and prevent its recurrence. Crafting
appropriate orders and monitoring adherence to order terms requires close consultation
between enforcement and compliance staff. Unlike orders in merger enforcement
cases, orders in anticompetitive conduct cases seldom involve divestiture relief.
Instead, nonmerger order provisions are generally proscriptive, requiring a party to
quickly implement these behavioral remedies once an order is entered to enjoin the
When appropriate, the Commission may also obtain equitable monetary remedies in
federal court, such as disgorgement of ill-gotten gains, in order to deprive wrongdoers from
Nonmerger compliance staff
work with enforcement staff and the parties monitor the faithful and timely
anticompetitive conduct while permitting procompetitive conduct to continue.
To monitor compliance, staff review periodic compliance
reports required by the orders, conduct follow-up interviews with the reporting
parties, monitor relevant media, maintain contacts with the original complainants
and other industry participants, and conduct investigations of suspected order
violations as needed. Where violations of order provisions occur, staff may
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recommend civil penalty actions. Civil penalty actions entail investigation and, where
necessary, federal court litigation.
From time to time, parties under order submit
to new market dynamics or other changes in circumstances. The FTC’s nonmerger
compliance staff reviews these petitions to assess whether the original order
continues to serve the public interest and makes recommendations for Commission
action accordingly.
Staff conducts antitrust policy analysis to provide the Commission and other policymakers
with information to assess and formulate competition policy. Antitrust policy analysis
includes the design and completion of economic, industry, or other research that
improves the agency’s understanding of markets and enables the FTC to identify markets
and circumstances in which law enforcement actions would make the greatest impact.
The Antitrust Policy Analysis program also aims to ensure that consumer interests are
represented before various governmental and self-regulatory bodies addressing market
and competition issues. Among the types of activities supported are:
The FTC conducts
empirical studies, engages in research, and holds workshops and other public
different markets and contexts. These activities also enable the FTC to bring together
industry, economic, and legal experts to assess competition policy challenges in
The FTC issues reports and policy papers discussing
the application of antitrust principles to various markets of great importance to
consumers, such as technology, health care, energy, and retail goods and services.
To promote sound competition policy and share the
to invitations to comment on the competitive effect of proposed laws, rules, or
regulations before federal, state, or local governments, as well as self-regulatory
bodies. The Bureau of Economics staff provides input in the development of these
advocacy comments.
Several other functions within the Competition Mission directly support our primary law
enforcement and competition policy work, including:
The Bureau of Competition, in cooperation with the Human Capital
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions162
legal recruiting fairs each year to identify and select entry-level attorneys and legal
interns. The Bureau also recruits lateral attorneys and other staff members as needs
arise.
Through its Employee Development and
Training Program, the FTC ensures that attorneys and support personnel receive
the training necessary to do their jobs. Hallmarks of the training program are the
Bureau of Competition Training Council’s seminar series, the summer program for
law student interns, and the Bureau of Competition Mentoring Program. Staff also
participates in the FTC Agency-Wide Diversity Council.
Investigation and
Litigation Support staff are responsible for processing and loading all document
productions received during the course of investigations and litigation. This group
develops standards for documentary productions and data submissions and uses
appropriate technological solutions to ensure Commission staff have timely access to
this information.
The Bureau of Competition’s Information
Systems Management staff manages the records systems necessary to report on the
work of the Promoting Competition Mission. It also coordinates activities with the
resources for staff.
FTC staff and management coordinate antitrust
activities and enforcement with state Attorneys General, including training,
consultations, and joint investigations of potentially anticompetitive mergers and
business practices, to the extent allowed by applicable laws.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 163
Support
Support: Budget by Activity
($ in thousands)
Commissioners 37 $7,236 37 $7,523
50 10,216 51 10,956
10 1,876 10 1,954
5 961 9 1,807
133 122,227 166 125,813
6 1,107 6 1,153
11 2,828 11 2,914
7 1,807 8 2,064
3 643 5 1,070
3 570 4 795
Protecting Consumers 142 $80,287 160 $83,282
Promoting Competition 123 69,184 147 72,767
Support consists of management and support activities within the FTC to foster and help
achieve the agency’s goals of Protecting Consumers and Promoting Competition.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions164
FTC’s Congressionally mandated mission. They formulate Commission policy, which guides
resources. They also monitor the FTC’s progress in accomplishing stated goals.
and generates written comments and reports on a variety of competition and consumer
in a variety of industries, including issues at the intersection of competition and intellectual
property, in order to enrich the Commission’s expertise and inform enforcement decisions
involving novel or complex legal issues. OPP staff frequently work directly with case teams
on enforcement matters. OPP advocates for robust competition and consumer protection
of certain legislative, regulatory, and other policy approaches, making recommendations
on how certain policy choices may enhance or impede competition, gathering evidence
to identify competitive problems and evaluate how best to address emerging competitive
issues, and providing legal and economic analysis upon request. Where appropriate, OPP
staff coordinates the FTC’s advocacy role with other governmental entities.
OPP staff frequently obtains public input from businesses, consumer groups, academics,
and other outside sources through a variety of informal and formal means, including
discussions with stakeholders, public hearings, fact-gathering workshops, roundtable
policy discussions, and studies conducted pursuant to the FTC’s Section 6(b) authority.
major functions are representing the Commission in court regarding certain matters and
providing legal counsel and policy advice to the Commission, the operating Bureaus, and
fundamental support to both missions of the agency. OGC defends actions seeking
judicial review of Commission orders and trade regulation rules, handles both
offensive and defensive appeals of Commission actions seeking preliminary and
permanent injunctive relief, prepares pleadings in appellate matters in which the
agency is appearing as an amicus, defends the agency in lawsuits and counterclaims
brought in district court (including Freedom of Information Act litigation), works
with the Department of Justice (“DOJ”) Antitrust Division on joint matters, and works
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 165
OGC also counsels staff on the conduct of law enforcement investigations, enforces
civil investigative demands and other compulsory processes, advises staff on issues
relating to the discovery of electronically stored information, and frequently assists
staff in responding to discovery requests directed to the FTC or its staff. It assists
DOJ in defending cases brought to enjoin or otherwise challenge agency action, or to
obtain monetary damages against the FTC or its personnel. OGC also furnishes advice
and assistance concerning other litigation activities.
the Commission on a wide range of procedural and substantive issues in adjudicative
fair. It also advises the Commission and staff on legal and policy issues, such as
agency jurisdiction, statutory authority, administrative procedure, professional
responsibility, and other matters relating directly to the agency’s enforcement goals.
OGC administers the agency’s Freedom of Information Act (“FOIA”) program, advises
administers requests by state, federal, and international law enforcement agencies
committees and subcommittees, assists in preparing testimony for Congressional
Congressional requests for agency documents.
OGC counsels Commissioners and staff to ensure compliance with
the Ethics in Government Act. Its work protects the agency by helping Commissioners
Government Ethics.
The FOIA Unit is comprised of attorneys and Government Information
government activity, FOIA provides every individual with the right to access
information related to the internal workings of the FTC, including access to consumer
complaints, investigative records, and congressional correspondence. Attorneys
and Government Information Specialists at the FTC process over a thousand FOIA
requests per year and ensure compliance with FOIA, the Privacy Act, and the
Commission Rules of Practice.
OGC assists the Commission in drafting opinions and
provides all necessary support for the Commission’s adjudicatory functions. Staff
provides the Commission with an analysis of complex legal issues and contributes
advice and drafting assistance on cutting-edge topics related to the FTC’s adjudicatory
responsibilities.
OGC advises agency staff on personnel,
labor-management relations, equal employment opportunity, procurement law, and
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions166
appropriations law matters. OGC represents the FTC in legal proceedings before
such agencies as the Merit Systems Protection Board, the Federal Labor Relations
Authority, the Equal Employment Opportunity Commission, and the General Services
Board of Contract Appeals.
OGC is involved in most aspects of the FTC’s energy-related work, with
primary emphasis on two major areas: crude oil/petroleum products/natural gas and
the electric power industry.
FTC’s goals of promoting competition and protecting consumers. As markets have become
more global and the number of antitrust, consumer protection, and privacy laws and
its competition and consumer protection objectives on behalf of American consumers.
OIA’s work comprises three areas: supporting the FTC’s consumer protection and
competition case teams with respect to international issues in investigations and cases;
building mechanisms for international enforcement cooperation; and working with other
protection policies. This work includes providing technical assistance to enable developing
competition and consumer protection agencies to obtain the legal and economic skills
necessary to adopt and implement sound policies to incorporate into their enforcement,
including in cross-border matters.
OIA assists the FTC’s competition mission through advice to case teams
on international issues such as access to foreign witnesses and evidence and through
its work in various bilateral and multilateral fora.
» Bilateral Relationships: Effective cooperation with counterpart agencies is a
necessity given that many FTC cases involve parties based outside the United
States, evidence located abroad, or matters under parallel review by foreign
competition agencies. Pursuant to formal cooperation agreements and a network
of informal arrangements and relationships, OIA works with FTC staff and foreign
agencies to achieve consistent approaches to cases of mutual concern and to
promote convergence toward fair procedures, sound analysis, and enforcement
that leads to compatible outcomes.
» Activities in Multilateral Competition Fora: The FTC is a leader in the multilateral
policy and enforcement. In the International Competition Network (ICN), the
implementation work and online training project. It works to develop sound
guidance in the areas of digital markets, unilateral conduct, mergers, cooperation,
competition advocacy, and agency effectiveness. It promotes implementation of
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 167
the ICN’s new framework on competition agency procedures and helps to set
the ICN’s long-term agenda. The FTC is also active in the Competition Committee
United Nations Conference on Trade and Development (UNCTAD), and regional
of which the agency shares U.S. experience in order to build consensus on
sound antitrust policy. For example, in the OECD, the FTC is playing a key role
in developing the recommendations on procedural fairness in competition
investigations and on “competitive neutrality.”
» Working Within the U.S. Government: The FTC works with U.S. government
agencies and in intergovernmental fora to address competition-related issues, for
example as part of the interagency groups that negotiate competition chapters in
free trade agreements and address issues that arise in antitrust enforcement by
other countries.
OIA helps the FTC accomplish its consumer protection and
privacy goals by supporting the FTC’s investigations and cases with international
aspects, building international enforcement cooperation mechanisms, and fostering
the development of sound policies that take into account rapid technological and
other changes in the global marketplace. These activities include:
» Investigative and Litigation Advice and Assistance: OIA supports case teams from
BCP and OGC when international issues arise in FTC investigations and cases.
OIA’s work spans the range of enforcement-related activities, from providing
obtaining evidence, including expert evidence, located abroad, to working
with case teams and foreign attorneys to identify and secure foreign assets for
consumer redress.
» International Enforcement Cooperation: In 2006, Congress gave the FTC powers
to combat cross-border consumer fraud more effectively through the U.S. SAFE
WEB Act, which provides the FTC with key information sharing, investigative
assistance, and cross-border enforcement authority. The FTC has used this
authority, along with existing mechanisms, to pursue cross-border wrongdoers
continued to expand its use of the Act’s tools. The FTC is seeking Congressional
support to preserve this important authority before the Act sunsets on September
30, 2020.
The FTC also works closely with a range of Canadian and other foreign consumer
protection, privacy, telecommunications and criminal enforcement authorities
on advertising, telemarketing, Internet fraud, and privacy and data security
investigations and cases. The FTC is a leader in the International Consumer
Protection Enforcement Network (ICPEN), a global network of more than 60
consumer protection authorities that aims to protect consumers from fraudulent,
deceptive, and unfair commercial practices around the world by sharing
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions168
information about cross-border issues and encouraging global cooperation
among law enforcement agencies. ICPEN also manages econsumer.gov, its online
cross-border complaint site, and co-leads the International Mass Marketing Fraud
Working Group, which includes civil and criminal law enforcers from around the
world who have developed new enforcement cooperation projects focused on
sweepstakes fraud and India-based call center fraud. The FTC also co-chairs the
Unsolicited Communications Enforcement Network (UCE-NET) and serves on
the governing committee of the Global Privacy Enforcement Network (GPEN),
a network of nearly 70 privacy enforcement authorities from 50 jurisdictions.
The agency works closely with regional consumer protection networks in Asia,
Africa, and Latin America. The agency also has entered into several memoranda of
understanding on enforcement cooperation on consumer protection and privacy-
related matters with foreign counterparts.
» Promoting Sound Consumer Protection Policies: OIA advocates for vigorous
including fraud, deception, and unfair practices in the global marketplace,
for Economic Cooperation and Development (OECD) and the United Nations
Conference on Trade and Development (UNCTAD). The FTC also works closely,
in collaboration with the Department of Commerce, on mechanisms that protect
Economic Cooperation (APEC) Cross Border Privacy Rules system.
» Cross-Cutting Technical Assistance: The FTC provides technical assistance to
developing competition, consumer protection, and data privacy regimes. It also
shares staff investigative and analytical expertise and experience with colleagues
in more advanced jurisdictions as they address more complex issues. Our
consumers and businesses.
The FTC also responds to requests for comments on draft competition, consumer
to study the U.S. experience in administering its antitrust, consumer protection,
and privacy laws.
» International Staff Exchanges: The FTC has established an International Fellows
and Interns program that has enabled foreign competition, consumer protection,
and privacy agency staff to work alongside their FTC counterparts, and an FTC
staff exchange program. These programs implement the U.S. SAFE WEB Act’s
agencies. Over the past twelve years, the FTC has hosted 131 International
Fellows and Interns from 41 jurisdictions, including Argentina, Australia, Austria,
the European Union, France, the Gambia, Honduras, Hungary, India, Israel,
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 169
Vietnam, and Zambia. In addition, FTC staff have participated in outbound
exchanges with the competition agencies of Canada, the European Union, and the
United Kingdom.
advising the Commission and its staff on Commission voting and other decision-making
procedures.
Notices to the Federal Register, after signature by the Secretary or the General Counsel, and
manages the contract covering Federal Register publication expenditures.
responses to most Congressional and White House correspondence raising constituent
and documents in the Commission’s internal document management system. The Secretary
is also the legal custodian of Commission legal and public records, and is responsible for
publishing the FTC Decisions Volumes, including more than 150 volumes covering the
period from 1914 to 2015, which have recently been placed on the Commission website at
www.ftc.gov.
Commission administrative complaint proceedings, guided by statutes, precedent, and
rules of practice. The Administrative Law Judge holds pre-hearing conferences, resolves
discovery, evidentiary, and procedural disputes, and conducts full adversarial evidentiary
record citation, explains the legal standard, and applies the law to the facts.
proceedings for the Commission. After a hearing on the record, the judge conducting
conclusions of law.
Federal Trade Commission, with responsibility for the overall operation of the agency. The
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions170
assessing the management and resource implications of any proposed action. The following
responsible for overseeing the FTC’s budget formulation and execution processes,
all procurement activities, payment of invoices, development and maintenance
planning, enterprise risk management, and performance management activities. FMO
Department of the Treasury, and other federal agencies to accomplish government-
wide goals.
Key FMO activities include:
»
and review; working with OMB and Congressional staff to obtain appropriations
and subsequent apportionment authority; distributing enacted and Commission-
resources.
»
transactions in the accounting system; paying invoices for purchases and services
performed for the FTC; reconciling the agency’s general ledger; reporting assets
managed by the FTC, including accounts receivable from court orders, judgments,
and receiverships; and reconciling balances with those maintained by Treasury
and OMB.
»
Report.
» Managing the FTC’s acquisition activities of goods and services on behalf of the
requisition process, including statements of work, requests for proposal, contract
preparation, award, and administration; and training the agency’s Contracting
» Managing the FTC’s enterprise risk management and internal control program by
continuously identifying and documenting risk related to achieving the agency’s
controls, identifying needed improvements, taking corresponding corrective
actions, and reporting annually on the condition of the agency’s internal controls.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 171
»
system that includes accounting, travel management, and acquisition lifecycle
systems.
»
wide requirements and policies (e.g., OMB Bulletins and Circulars).
» Managing and administering the federal purchase and travel card programs.
» Managing all components of the agency’s E-Travel system; supporting the Bureaus
tracking, and approving travel; and ensuring compliance with the Federal Travel
Regulations.
»
including development of the FTC’s Strategic Plan, tracking of the agency’s
performance metrics, and producing the FTC’s Annual Performance Plan/Annual
Performance Report.
(HCMO) develops and implements human capital programs and policies to align
with and support the FTC’s human capital strategic objectives. HCMO provides
leadership on a broad range of talent management and workforce issues, including
background investigations, performance management, workforce development,
executive resources, compensation and leave, employee and labor relations, special
HCMO consults with the FTC workforce and collaborates with other federal
progressive programs and solutions for emerging human capital matters in support
of government-wide human capital initiatives. HCMO supports the FTC’s mission by:
» Providing human capital services, strategies, and guidance to FTC Bureaus and
skilled, and high-performing workforce.
» Leading Training Council activities to assess the competencies necessary and
create core curriculums for critical FTC occupations.
» Establishing and administering policies, programs, and services related to
employee and labor relations issues, including case support.
» Dedicating efforts to make the FTC a best place to work through its human capital
programs and management initiatives.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions172
and information management services to the agency. In carrying out its support work,
OCASO:
»
repairs;
» Provides building and grounds management and oversees maintenance and
custodial contracts;
» Manages physical security, emergency preparedness, continuity of operations,
health, and safety programs;
» Provides logistical support and coordination for all types of FTC events;
» Manages agency-wide support functions, including mail services, printing and
copying, couriers, supplies, transit subsidies, parking, and furniture warehousing;
»
before the Commission;
» Manages agency-wide electronic systems that process, track, and store records
and information on Commission matters;
» Provides library research, reference, and subscription services;
» Processes public comments in rulemakings, consent proceedings, workshops,
studies, and other matters that solicit public comments; and
»
(OCIO) is responsible for providing the FTC with a robust, reliable, secure, rapidly
scalable, and interoperable infrastructure; providing connectivity and computing
capabilities; and allowing FTC staff and mission partners to access, share, and act on
tools and maintains a robust cybersecurity program that includes the FTC’s disaster
recovery and continuity of operations efforts. Some key activities performed by OCIO
include:
» Providing mission critical information systems and services to facilitate litigation,
forensic investigations, enforcement, and economic analysis activities;
» Ensuring availability of information technology systems through maintenance
management and technology enhancements and provisioning of secure cloud-
» Enhancing agency productivity through customer support services, including
equipment installation and repair; training and support in the use of information
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 173
technology resources; and support of critical information systems and
applications;
» Securing FTC data and information technology systems against current and
emerging cybersecurity threats using sophisticated technologies and information
assurance activities, providing increased security and compliance without
hindering mission success and employee performance.
Commission apprised of activity on Capitol Hill affecting competition, consumer protection,
and the agency. It also coordinates the preparation of Congressional testimony and
responses to Congressional inquiries about FTC actions, policies, and programs.
• Develops, coordinates, and executes legislative advocacy for the FTC.
• Receives and helps coordinate responses to Members’ inquiries on behalf of
constituents.
•
staff, meetings between Members of Congress and Commissioners, and constituent
education events.
• Monitors hearings, legislation, and other Congressional activity affecting or of interest
to the FTC.
• Coordinates the review by FTC staff of relevant legislation and provides feedback and
• Prepares agency witnesses to testify before Congress.
• Keeps Congressional staff abreast of major Commission actions.
•
and is responsible for ensuring that the Commission complies with all applicable privacy
when making decisions involving the collection, use, sharing, retention, disclosure, and
and mitigating privacy incidents. OCPO accomplishes its support function by:
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions174
• Protecting personal information at the FTC throughout its life cycle, including
creation/collection, use, sharing, disclosure, transfer, and disposal/disposition
through various means, including, but not limited to:
» Using Privacy Threshold Analyses to conduct a privacy risk analysis for new
information collections;
» Publishing Privacy Impact Assessments to provide transparency regarding
information collections from members of the public;
» Conducting annual continuous monitoring to ensure that privacy and security
risks are evaluated throughout the information life cycle; and
»
systems are decommissioned.
• Supporting the FTC mission with an evolving privacy program, including:
» Developing and implementing a Data Breach Response Plan to respond to privacy
events;
»
the effectiveness of existing privacy activities and using that information to make
needed adjustments; and
» Maintaining a list of the agency’s social media accounts, applications, and
websites to ensure compliance with federal information management laws and
guidance.
• Promoting a culture of privacy among FTC staff, contractors, and third parties by,
among other things:
» Providing privacy awareness trainings for all staff, including in-person privacy
training for all new employees, contractors, and international visitors;
»
issues; and
» Coordinating with agency staff to address privacy-related issues associated with
information technology and security, legal, acquisitions, budget, and program
about the activities of the FTC and responds to media inquiries about Commission actions
and policy. OPA also manages the agency’s main website, FTC.gov, and social media
accounts, which are critical communication tools for the agency.
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 175
In serving as liaison between the FTC, the media, and the public, OPA:
• Arranges and frequently staffs media appearances for the Chairwoman,
• Ensures that Commission news releases, supporting documents, and consumer and
business education materials are disseminated to the media and the public on FTC
websites, through use of social media, and other channels.
•
hosting live social chats, live-tweeting and live-streaming workshops and other
events, and answering public questions using social media.
• Produces a daily “News Summary” on FTC activities consisting of interesting/
television.
• Drafts and maintains all social media privacy impact assessments and produces
weekly social mentions reports to staff.
• Manages the operations and development of the FTC’s primary public website, FTC.
gov, including related vendor contracts.
• Establishes governance, standards, and administrative guidance for public-facing web
• Coordinates the development and execution of the agency’s digital communications
metrics.
• Provides training and support to FTC web content publishers and authors.
• Provides assistance to the media and bloggers covering FTC activities.
• Promotes and supports major FTC outreach activities and initiatives and uses new
technology, as available, to advance these efforts.
•
• Produces “Weekly Calendar and Sunshine Notices” reports to inform the public and
the media of scheduled “open” Commission activities.
• Works with international, national, and regional media for coverage of Commission
activities.
• Obtains transcripts and videotapes of broadcast coverage of Commission activities.
• Coordinates with staff on publication of FTC blogs, posts, and occasional guest posts.
The Inspector General Act of 1978 created independent and objective units within the
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions176
for conducting audits and investigations relating to the agency’s programs and operations.
The Inspector General Act Amendments of 1988 (5 U.S.C. app.) established an OIG within
and duties of an agency head or appointing authority. The Inspector General must keep the
the agency’s operations and programs.
The Inspector General Act contains statutory guarantees of OIG independence, which
ensure the objectivity of the OIG’s work and safeguards against efforts to compromise that
objectivity or hinder OIG operations. Foremost among these safeguards are the Inspector
General’s dual reporting to the agency head and Congress, and the requirement for agency
management to provide timely access to agency personnel and information. The OIG’s
independent mission requires that OIG staff be free in fact and appearance from personal,
the following activities within the FTC:
The OIG conducts audits and evaluations that address
reports provide information to FTC leadership that identify corrective actions,
facilitate program improvements, and improve accountability. Audits and
evaluations are systematic and independent assessments that provide timely and
credible information for agency managers, policy makers, and others to determine
programs, or performance.
The OIG investigates allegations of
criminal, civil, and administrative violations of laws, policies, and regulations on
the part of FTC employees and individuals or entities that have contracts with the
agency. Complaints and allegations of wrongdoing are generally referred to the OIG
via the OIG Hotline, in-person, and via mail, and they come from a variety of sources,
including FTC employees, other government agencies, and the public. The results
of OIG investigations that uncover criminal activity or civil violations are referred
to the Department of Justice for consideration for criminal prosecution and/or civil
penalties. Investigations that do not substantiate criminal or civil activity, or where
criminal prosecution or civil remedies have been declined, are reported to FTC
management for appropriate action.
Federal law prohibits governmental personnel from
retaliating against an employee who acts as a whistleblower by reporting suspected
waste, fraud, or abuse to the OIG. Allegations of whistleblower retaliation are taken
authority to investigate such matters.
The OIG issues periodic Management Advisories to inform
Fiscal Year 2022 Congressional Budget Justication - Bureau and Oce Descriptions 177
Advisories typically contain recommendations for agency management.
The Reports Consolidation Act of 2000 requires
that the Inspector General provide a summary of the OIG’s perspective on the most
serious management and performance challenges facing the agency and a brief
assessment of the agency’s progress in addressing those challenges.
In addition to keeping the Chairperson,
Commissioners, and FTC senior management informed of the OIG’s work, the
Inspector General Act requires the OIG to keep appropriate Congressional
committees informed of completed audit, evaluation, and investigation work through
has completed and planned during the reporting period, as well as the status of OIG
recommendations to management.
Separately, the OIG may respond to requests by Congressional committees, matters
referred to the Department of Justice for possible prosecution, and any challenges
encountered in obtaining timely information from management.
The OIG’s investigations and audit functions are subject to triennial
external peer reviews conducted under requirements established by the Council of
entity within the Executive Branch comprised of federal Inspectors General. OIG
staff take periodic training in the various OIG disciplines to ensure that they and the
standards for ensuring accuracy, objectivity, and independence.
identify and eliminate discriminatory practices and policies. OEEOWI engages in proactive
management strategies to identify and eliminate barriers to EEO, provides leadership and
employment initiatives that conform to Federal laws and regulations governing EEO
and human resources management. OEEOWI also manages, advises, and oversees the
discrimination complaints processing system, including recommending settlements and
regulations and directives governing the administrative complaint process. OEEOWI also
regulations including providing support and advice on issues related to EEO in all aspects
of employment. Further, OEEOWI promotes an inclusive and diverse work environment
events for special observances throughout the year.
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Appendix
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Fiscal Year 2022 Congressional Budget Justication - Appendix 181
Proposed Appropriations Language
Salaries and Expenses
For necessary expenses of the Federal Trade Commission, including uniforms or allowances
therefor, as authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109; hire of
expenses, $389,800,000, to remain available until expended: Provided, That not to exceed
$300,000 shall be available for use to contract with a person or persons for collection services
in accordance with the terms of 31 U.S.C. 3718: Provided further, That, notwithstanding any
Rodino Antitrust Improvements Act of 1976 (15 U.S.C. 18a), regardless of the year of collection
expenses in this appropriation, and shall remain available until expended: Provided further,
That, notwithstanding any other provision of law, fees collected to implement and enforce the
Telemarketing Sales Rule, promulgated under the Telemarketing and Consumer Fraud and
Abuse Prevention Act (15 U.S.C. 6101 et seq.), regardless of the year of collection (and estimated
used for necessary expenses in this appropriation, and shall remain available until expended:
Provided further, That the sum herein appropriated from the general fund shall be reduced as
2022 appropriation from the general fund estimated at not more than $240,800,000: Provided
further, That none of the funds made available to the Federal Trade Commission may be used to
implement subsection (e)(2)(B) of section 43 of the Federal Deposit Insurance Act (12 U.S.C. 1831t).
Fiscal Year 2022 Congressional Budget Justication - Appendix182
Program and Financing
($ in millions)
0001 Protecting Consumers 188 197 209
0002 Promoting Competition 160 154 181
0192 Subtotal, direct program 348 351 390
0799 Total direct obligations 348 351 390
0803 Reimbursable program 1 2 1
0900 Total new obligations, unexpired accounts 349 353 391
Unobligated Balance:
1000 Unobligated balance brought forward, Oct 1 15 5 60
1021 Recoveries of prior year unpaid obligations 7 5 3
1050 Unobligated balance (total) 22 10 63
Budget Authority:
Appropriations, discretionary:
1100 Appropriation 217 202 241
1130 Appropriations permanently reduced --- --- ---
1160 Appropriation, discretionary (total) 217 202 241
Appropriations, mandatory:
1200 Appropriation --- 30 30
1230 Appropriations permanently reduced --- --- ---
1260 Appropriation, mandatory (total) --- 30 30
Spending authority from offsetting collections, discretionary:
1700 Offsetting collections (HSR Fees) 102 150 136
1700 Offsetting collections (Do Not Call Fees) 12 19 13
1700 Offsetting collections (Reimb. Programs) 1 2 1
1701 Change in uncollected payments, Federal sources --- --- ---
1725
Spending authority from offsetting collections precluded from obligation (limitation on
obligations)
--- --- ---
1750 Spending authority from offsetting collections, discretionary (total) 115 171 150
1900 Budget authority (total) 332 403 421
1930 Total budgetary resources available 354 413 484
Unpaid Obligations:
3000 Unpaid obligations, brought forward, Oct 1
74 76 77
3010 New obligations, unexpired accounts 349 353 391
3020 Outlays (gross) -340 -347 -438
3040 Recoveries of prior year unpaid obligations, unexpired -7 -5 -3
3050 Unpaid obligations, end of year 76 77 27
Uncollected payments:
3060 Uncollected pymts, Fed sources, brought forward, Oct 1 --- --- ---
3070 Change in uncollected paymts, Federal sources, unexpired --- --- ---
3090 Uncollected pymts, Fed sources, end of year --- --- ---
Memorandum (non-add) entries:
3100 Obligated balance, start of year 74 76 77
3200 Obligated balance, end of year 76 77 27
Discretionary:
4000 Budget authority, gross 332 373 391
Outlays, gross:
4010 Outlays from new discretionary authority 281 236 271
4011 Outlays from discretionary balances 59 81 137
4020 Outlays, gross (total) 340 317 408
Offsets against gross budget authority and outlays:
Offsetting collections (collected) from:
4030 Federal sources -1 -2 -1
4033 Non-Federal sources --- --- ---
4034 Offsetting governmental collections -114 -169 -149
4040 Offsets against gross budget authority and outlays (total) -115 -171 -150
Additional offsets against gross budget authority only:
4050 Change in uncollected pymts, Federal sources --- --- ---
4070 Budget authority, net (discretionary) 217 202 241
4080 Outlays, net (discretionary) 225 146 258
4160 Budget authority, net (mandatory) --- 30 30
4170 Outlays, net (mandatory) --- 30 30
4180 Budget authority, net (total) 217 232 271
4190 Outlays, net (total) 225 176 288
Fiscal Year 2022 Congressional Budget Justication - Appendix 183
Object Classication
($ in millions)
Personnel Compensation:
11.1 Full-time permanent 155 169 187
11.3 Other than full-time permanent 7 --- ---
11.5 Other personnel compensation 3 5 5
11.8 Special personal services payments
--- --- ---
53 53 62
21.0 Travel and transportation of persons 1 2 2
23.1 Rental payments to GSA 26 24 27
23.3 Communications, utilities, and miscellaneous charges 6 6 7
24.0 Printing and reproduction 2 2 2
25.1 Advisory and assistance services 75 70 74
25.2 Other services 4 4 4
25.3 Purchases of goods and services from government accounts
--- --- ---
25.4 Operation and maint. of facilities 1 2 2
25.7 Operation and maint. of equipment 12 12 13
26.0 Supplies and materials --- 1 1
31.0 Equipment 3 1 4
Personnel Compensation:
11.1 Full-time permanent 1 2 1
353
Fiscal Year 2022 Congressional Budget Justication - Appendix184
Personnel Summary
1001 Full-time equivalent employment 1,128 1,140 1,250
2001 Full-time equivalent employment
1
3 1 1
1
Includes 1 FTE reimbursed by other federal agencies
Fiscal Year 2022 Congressional Budget Justication - Appendix 185
Inspector General’s Request
UNITED STATES OF AMERICA
Federal Trade Commission
WASHINGTON, D.C. 20580
Office of Inspector General
May 27, 2021
In accordance with the requirements of Section 6(g)(1) of the Inspector General Act of 1978
(as amended), the Federal Trade Commission's Office of the Inspector General (OIG) submits
the following information related to its requested budget for FY 2022:
• OIG requests aggregate funding of $2,064,000 for FY 2022.
• OIG requests $27,700 for all training needs. The requested amount satisfies all training
requirements for the OIG in FY 2022.
• OIG requests $7,430 for support of the Council of Inspectors General on Integrity and
Efficiency (CIGIE). The requested amount satisfies all requirements for the OIG's CIGIE
contribution in FY 2022.
FY 2021 Budget
$ in thousands
FY 2022 Estimate
$ in thousands
Change
$ in thousands
Full Time
Equivalents
Amount
Full Time
Equivalents
Amount
Full Time
Equivalents
Amount
7
$1,807.0
8
$2,064.0
1
$257.0
Andrew Katsaros
Inspector General
Federal Trade Commission
