15 U.S.C. § 57b–1 — Civil investigative demands

(a) Definitions. A "civil investigative demand" (or "demand") is a written order the Commission issues under subsection (c)(1). A "Commission investigation" is an inquiry into whether someone has engaged in unfair or deceptive acts or practices, or antitrust violations. A "Commission investigator" is an attorney or investigator employed to enforce those laws. "Custodian" means the person the Commission designates under section 57b–2 to hold demand material. "Documentary material" includes originals or copies of books, records, reports, and similar documents. "Person" includes any individual, partnership, corporation, association, or other entity, including one acting under state law authority. "Violation" means any unfair or deceptive act or practice, or antitrust violation. "Antitrust violation" covers unfair methods of competition; violations of the Clayton Act or similar federal antitrust laws; certain foreign antitrust law violations under the International Antitrust Enforcement Assistance Act; and preparation for a merger, acquisition, or similar deal that could result in either of those. (b) Actions respecting unfair or deceptive practices. When the Commission investigates unfair or deceptive acts or practices under its general investigative powers (sections 46 and 49), it must use the demand procedure in subsection (c). (c) Issuing a demand. If the Commission believes someone may have documents, tangible things, or information relevant to a possible violation, it can — before starting any formal proceeding — issue and serve a written demand requiring that person to produce documents, submit things, file written reports or answers, give oral testimony, or any combination of these. The demand must state the conduct under investigation and the law that applies. A demand for documents must clearly describe each class of documents wanted, set a reasonable return date, and name the custodian to receive them. A demand for tangible things must do the same for those things. A demand for written reports or answers must clearly state the questions, set a due date, and name the custodian. A demand for oral testimony must set a date, time, and place, and name both the investigator running it and the custodian who gets the transcript. A demand can be served anywhere in U.S. court jurisdiction; if the person is outside that jurisdiction, it can be served the way federal rules allow for foreign service, and the D.C. federal district court has jurisdiction over such a person to the extent due process allows. A demand or enforcement petition can be served on a business entity by delivering it to a partner, officer, or authorized agent, by delivering it to the entity's main office, or by certified or registered mail to that office. It can be served on an individual by personal delivery or by certified or registered mail to their home or workplace. A verified return describing how service was made — with the mail receipt, if mailed — proves service happened. Documents produced in response must come with a sworn certificate that everything demanded has been produced. The same is true for tangible things submitted, and for written answers (unless a question is objected to, in which case the reason for the objection must be given instead of an answer, and the response is still submitted under a sworn certificate for whatever is answered). For oral testimony: the investigator must swear in the witness, have the testimony recorded and transcribed, and promptly send a copy to the custodian. Only the witness, their attorney, the presiding officer, and the stenographer may be present. Testimony must be taken where the witness lives, is found, or does business, unless the investigator and witness agree on another place. The witness may bring a lawyer, who can privately advise them and can object on the record to any question — stating the reason briefly — including objections based on a constitutional or legal privilege such as the right against self-incrimination. Otherwise the witness cannot interrupt or refuse to answer; if they do refuse, the Commission can ask a court to order them to answer. If the refusal is based on the privilege against self-incrimination, the testimony can still be compelled under the immunity procedure in 18 U.S.C. § 6004. After the testimony is transcribed, the witness (who may bring a lawyer) gets a reasonable chance to review it; it is read to or by the witness unless waived, any changes the witness wants are noted along with the reasons, and then the witness signs it unless they waive signing, are ill, can't be found, or refuse. If it isn't signed within 30 days of the witness getting that chance to review it, the investigator signs it instead and notes on the record why. The investigator certifies that the witness was sworn and the transcript is accurate, then promptly delivers or mails it to the custodian. The investigator must give the witness (only) a copy of the transcript once reasonable copying costs are paid, though for good cause the Commission can limit the witness to just inspecting the official copy. A witness giving oral testimony gets the same fees and travel mileage paid to witnesses in federal district court. (d) Procedures for demand material. Anything received through a demand is handled under the confidentiality and custody procedures in section 57b–2. (e) Petition for enforcement. If someone fails to comply with a demand, or won't turn over material that can't be copied satisfactorily, the Commission can file a petition in federal district court — where the person lives, is found, or does business — asking the court to enforce the demand. Court process on this petition can be served in any judicial district. (f) Petition to modify or cancel a demand. A person served with a demand can ask the Commission to modify or set it aside. They must do this within 20 days of service, or before the demand's return date (whichever is shorter), unless the investigator named in the demand allows more time in writing. While that petition is pending at the Commission, the clock on complying doesn't run for the parts being challenged — but the person must still comply with any part of the demand they aren't challenging. The petition must state each legal ground relied on, which can include the demand's failure to follow this section's rules, or a constitutional or other legal right or privilege. (g) Custodial control. While a custodian holds material produced under a demand, the person who produced it can file a petition in the federal district court where the custodian's office is, asking the court to order the custodian to carry out any duty this section or section 57b–2 requires. (h) Jurisdiction of court. Once such a petition is filed, the district court can hear it and issue whatever orders are needed to carry out this section. A final order can be appealed under 28 U.S.C. § 1291. Disobeying a final order is punishable as contempt of court. (i) Who can sign a demand. Despite any other law, the Commission cannot issue a subpoena or demand for information unless a Commissioner signs it under a Commission resolution authorizing that. The Commission cannot hand this signing power to anyone else. (j) What this section does not cover. This section does not apply to formal adjudicative proceedings under section 45(b), under the Clayton Act, or under any other law. It also does not affect the jurisdiction, duties, or powers of any other federal agency, even where that agency's authority partly comes from a reference to this subchapter.