1. U.S. Code
  2. title 7
  3. chapter 9
  4. subchapter V
  5. § 227

Collapse to view only § 227. Powers of Federal Trade Commission and Secretary of Agriculture

§ 221. Accounts and records of business; punishment for failure to keep

Every packer, any swine contractor, and any live poultry dealer, stockyard owner, market agency, and dealer shall keep such accounts, records, and memoranda as fully and correctly disclose all transactions involved in his business, including the true ownership of such business by stockholding or otherwise. Whenever the Secretary finds that the accounts, records, and memoranda of any such person do not fully and correctly disclose all transactions involved in his business, the Secretary may prescribe the manner and form in which such accounts, records, and memoranda shall be kept, and thereafter any such person who fails to keep such accounts, records, and memoranda in the manner and form prescribed or approved by the Secretary shall upon conviction be fined not more than $5,000, or imprisoned not more than three years, or both.

(Aug. 15, 1921, ch. 64, title IV, § 401, 42 Stat. 168; Aug. 15, 1921, ch. 64, title V, § 503, as added Aug. 14, 1935, ch. 532, 49 Stat. 649; Pub. L. 100–173, § 6, Nov. 23, 1987, 101 Stat. 918; Pub. L. 107–171, title X, § 10502(b)(2)(C), May 13, 2002, 116 Stat. 510.)

CITE AS: 7 USC 221

§ 222. Federal Trade Commission powers adopted for enforcement of chapter

For the efficient execution of the provisions of this chapter, and in order to provide information for the use of Congress, the provisions (including penalties) of sections 46 and 48 to 50 of title 15, are made applicable to the jurisdiction, powers, and duties of the Secretary in enforcing the provisions of this chapter and to any person subject to the provisions of this chapter, whether or not a corporation. The Secretary, in person or by such agents as he may designate, may prosecute any inquiry necessary to his duties under this chapter in any part of the United States.

(Aug. 15, 1921, ch. 64, title IV, § 402, 42 Stat. 168; Aug. 15, 1921, ch. 64, title V, § 503, as added Aug. 14, 1935, ch. 532, 49 Stat. 649.)

CITE AS: 7 USC 222

§ 223. Responsibility of principal for act or omission of agent

When construing and enforcing the provisions of this chapter, the act, omission, or failure of any agent, officer, or other person acting for or employed by any packer, any swine contractor, and any live poultry dealer, stockyard owner, market agency, or dealer, within the scope of his employment or office, shall in every case also be deemed the act, omission, or failure of such packer, any swine contractor, and any live poultry dealer, stockyard owner, market agency, or dealer, as well as that of such agent, officer, or other person.

(Aug. 15, 1921, ch. 64, title IV, § 403, 42 Stat. 168; Aug. 15, 1921, ch. 64, title V, § 503, as added Aug. 14, 1935, ch. 532, 49 Stat. 649; amended Pub. L. 100–173, § 6, Nov. 23, 1987, 101 Stat. 918; Pub. L. 107–171, title X, § 10502(b)(2)(C), May 13, 2002, 116 Stat. 510.)

CITE AS: 7 USC 223

§ 224. Attorney General to institute court proceedings for enforcement

The Secretary may report any violation of this chapter to the Attorney General of the United States, who shall cause appropriate proceedings to be commenced and prosecuted in the proper courts of the United States without delay.

(Aug. 15, 1921, ch. 64, title IV, § 404, 42 Stat. 168; Aug. 15, 1921, ch. 64, title V, § 503, as added Aug. 14, 1935, ch. 532, 49 Stat. 649.)

CITE AS: 7 USC 224

§ 225. Laws unaffected
Nothing contained in this chapter, except as otherwise provided herein, shall be construed—
(a) To prevent or interfere with the enforcement of, or the procedure under, the provisions of the Act entitled “An Act to protect trade and commerce against unlawful restraints and monopolies,” approved July 2, 1890, the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes,” approved October 15, 1914, the Interstate Commerce Act as amended, the Act entitled “An Act to promote export trade, and for other purposes,” approved April 10, 1918 [15 U.S.C. 61 et seq.] or sections 73 to 76, inclusive, of the Act of August 27, 1894, entitled “An Act to reduce taxation, to provide revenue for the Government, and for other purposes,” as amended by the Act entitled “An Act to amend sections seventy-three and seventy-six of the Act of August twenty-seventh, eighteen hundred and ninety-four, entitled ‘An Act to reduce taxation, to provide revenue for the Government, and for other purposes,’ ” approved February 12, 1913, or
(b) To alter, modify, or repeal such Acts or any part or parts thereof, or
(c) To prevent or interfere with any investigation, proceeding, or prosecution begun and pending on August 15, 1921.
(Aug. 15, 1921, ch. 64, title IV, § 405, 42 Stat. 168; Pub. L. 107–273, div. C, title IV, § 14102(c)(2)(C), Nov. 2, 2002, 116 Stat. 1921.)

CITE AS: 7 USC 225

§ 226. Powers of Interstate Commerce Commission unaffected

Nothing in this chapter shall affect the power or jurisdiction of the Interstate Commerce Commission, nor confer upon the Secretary concurrent power or jurisdiction over any matter within the power or jurisdiction of such commission.

(Aug. 15, 1921, ch. 64, title IV, § 406(a), 42 Stat. 169.)

CITE AS: 7 USC 226

§ 227. Powers of Federal Trade Commission and Secretary of Agriculture
(a) Omitted
(b) Jurisdiction of Federal Trade Commission
The Federal Trade Commission shall have power and jurisdiction over any matter involving meat, meat food products, livestock products in unmanufactured form, or poultry products, which by this chapter is made subject to the power or jurisdiction of the Secretary, as follows:
(1) When the Secretary in the exercise of his duties requests of the Commission that it make investigations and reports in any case.
(2) In any investigation of, or proceeding for the prevention of, an alleged violation of any Act administered by the Commission, arising out of acts or transactions involving meat, meat food products, or livestock products in unmanufactured form, if the Commission determines that effective exercise of its power or jurisdiction with respect to retail sales of any such commodities is or will be impaired by the absence of power or jurisdiction over all acts or transactions involving such commodities in such investigation or proceeding. In order to avoid unnecessary duplication of effort by the Government and burdens upon the industry, the Commissioner shall notify the Secretary of such determination, the reasons therefor, and the acts or transactions involved, and shall not exercise power or jurisdiction with regard to acts or transactions (other than retail sales) involving such commodities if the Secretary within ten days from the date of receipt of the notice notifies the Commission that there is pending in his Department an investigation of, or proceeding for the prevention of, an alleged violation of this chapter involving the same subject matter.
(3) Over all transactions in commerce in margarine, oleomargarine, or poultry products and over retail sales of meat, meat food products and livestock products in unmanufactured form.
(c) Limitation of Federal Trade Commission jurisdiction
(d) Jurisdiction of Secretary of Agriculture except for poultry products
(e) Jurisdiction of Secretary of Agriculture regarding poultry products
(f) Information to be included in annual reports
(Aug. 15, 1921, ch. 64, title IV, § 406, 42 Stat. 169; Pub. L. 85–909, § 1(2), Sept. 2, 1958, 72 Stat. 1749; Pub. L. 100–173, § 7, Nov. 23, 1987, 101 Stat. 919; Pub. L. 102–237, title X, § 1008(2), Dec. 13, 1991, 105 Stat. 1898.)

CITE AS: 7 USC 227

§ 228. Authority of Secretary
(a) Rules, regulations, and expenditures; appropriations
(b) Deductions from proceeds for financing promotional, educational, and research activities
(c) Budget estimate; testimony of Secretary before Congressional committees
(d) Development and promulgation of rules governing hearings
The Secretary shall, not later than sixty days after September 13, 1976, prescribe and implement rules to assure that any hearing from which any order may issue under this chapter or any hearing the expenses of which are paid from funds authorized to be appropriated under this chapter shall—
(1) if such hearing concerns a single unit of local government or the residents thereof, be held within the boundaries of such unit;
(2) if such hearing concerns a single geographic area within a State or the residents thereof, be held within the boundaries of such area; or
(3) if such hearing concerns a single State or the residents thereof, be held within such State.
(e) Definitions
For the purposes of subsection (d)—
(1) the term “unit of local government” means a county, municipality, town, township, village, or other unit of general government below the State level; and
(2) the term “geographic area within a State” means a special purpose district or other region recognized for governmental purposes within such State which is not a unit of local government.
(Aug. 15, 1921, ch. 64, title IV, § 407, 42 Stat. 169; Pub. L. 85–909, § 4, Sept. 2, 1958, 72 Stat. 1750; Pub. L. 88–61, July 8, 1963, 77 Stat. 79; Pub. L. 94–410, § 11, Sept. 13, 1976, 90 Stat. 1252; Pub. L. 103–354, title II, § 293(b), Oct. 13, 1994, 108 Stat. 3237; Pub. L. 103–437, § 4(a)(2), Nov. 2, 1994, 108 Stat. 4581.)

CITE AS: 7 USC 228

§ 228a. Authority of Secretary to request temporary injunction or restraining order

Whenever the Secretary has reason to believe that any person subject to this chapter (a) with respect to any transactions subject to this chapter, has failed to pay or is unable to pay for livestock, meats, meat food products, or livestock products in unmanufactured form, or live poultry, or has failed to pay any poultry grower what is due on account of poultry obtained under a poultry growing arrangement, or has failed to remit to the person entitled thereto the net proceeds from the sale of any such commodity sold on a commission basis; or (b) has operated while insolvent, or otherwise in violation of this chapter in a manner which may reasonably be expected to cause irreparable damage to another person; or (c) does not have the required bond; and that it would be in the public interest to enjoin such person from operating subject to this chapter or enjoin him from operating subject to this chapter except under such conditions as would protect vendors or consignors of such commodities or other affected persons, until a complaint under this chapter is issued and dismissed by the Secretary or until an order to cease and desist made thereon by the Secretary has become final and effective within the meaning of this chapter or is set aside on appellate review of the Secretary’s order, the Secretary may notify the Attorney General, who may apply to the United States district court for the district in which such person has his principal place of business or in which he resides for a temporary injunction or restraining order. When needed to effectuate the purposes of this section, the court shall, upon a proper showing, issue a temporary injunction or restraining order, without bond. Attorneys employed by the Secretary of Agriculture may, with the approval of the Attorney General, appear in the United States district court representing the Secretary in any action seeking such a temporary restraining order or injunction.

(Aug. 15, 1921, ch. 64, title IV, § 408, as added Pub. L. 94–410, § 5, Sept. 13, 1976, 90 Stat. 1250; amended Pub. L. 100–173, § 8, Nov. 23, 1987, 101 Stat. 919.)

CITE AS: 7 USC 228a

§ 228b. Prompt payment for purchase of livestock
(a) Full amount of purchase price required; methods of payment
(b) Waiver of prompt payment by written agreement; disclosure requirements
(c) Delay in payment or attempt to delay deemed unfair practice
(Aug. 15, 1921, ch. 64, title IV, § 409, as added Pub. L. 94–410, § 7, Sept. 13, 1976, 90 Stat. 1250; amended Pub. L. 114–237, § 3, Oct. 7, 2016, 130 Stat. 970.)

CITE AS: 7 USC 228b

§ 228b–1. Final date for making payment to cash seller or poultry grower
(a) Delivery of full amount due
(b) Delay or attempt to delay collection of funds as “unfair practice”
(c) Definition of cash sale
(Aug. 15, 1921, ch. 64, title IV, § 410, as added Pub. L. 100–173, § 9(2), Nov. 23, 1987, 101 Stat. 920.)

CITE AS: 7 USC 228b-1

§ 228b–2. Violations by live poultry dealers
(a) Written complaint by Secretary; hearing; intervention; amended complaint
(b) Report on findings of fact by Secretary; cease and desist order; assessment of civil penalty; action by Attorney General upon live poultry dealer’s failure to pay penalty
(c) Amendment or setting aside of report or order
(d) Service of complaints, orders, and other processes
(Aug. 15, 1921, ch. 64, title IV, § 411, as added Pub. L. 100–173, § 9(2), Nov. 23, 1987, 101 Stat. 920.)

CITE AS: 7 USC 228b-2

§ 228b–3. Judicial review of order regarding live poultry dealer
(a) Finality of order unless appeal to court of appeals; time limit; bond
(b) Notification of appeal to Secretary; filing of record with court
(c) Issuance of temporary injunction
(d) Evidence in record as evidence in case; expedited proceedings
(e) Action by court
(f) Taking of additional evidence; modified or additional findings by Secretary
(g) Affirmance or modification of order as injunction
(h) Exclusive jurisdiction of court of appeals; finality of decree; appeal to Supreme Court; stay of decree
(Aug. 15, 1921, ch. 64, title IV, § 412, as added Pub. L. 100–173, § 9(2), Nov. 23, 1987, 101 Stat. 921.)

CITE AS: 7 USC 228b-3

§ 228b–4. Violation of final order by live poultry dealer; penalty
Any live poultry dealer, or any officer, director, agent, or employee of a live poultry dealer, who fails to obey any order of the Secretary issued under the provisions of section 228b–2 of this title, or such order as modified—
(1) after the expiration of the time allowed for filing a petition in the court of appeals to set aside or modify such order, if no such petition has been filed within such time;
(2) after the expiration of the time allowed for applying for a writ of certiorari, if such order, or such order as modified, has been sustained by the court of appeals and no such writ has been applied for within such time; or
(3) after such order, or such order as modified, has been sustained by the courts as provided in section 228b–3 of this title;
shall on conviction be fined not less than $1,000 nor more than $20,000. Each day during which such failure continues shall be deemed a separate offense.
(Aug. 15, 1921, ch. 64, title IV, § 413, as added Pub. L. 100–173, § 9(2), Nov. 23, 1987, 101 Stat. 922.)

CITE AS: 7 USC 228b-4

§ 228c. Federal preemption of State and local requirements

No requirement of any State or territory of the United States, or any subdivision thereof, or the District of Columbia, with respect to bonding of packers or prompt payment by packers for livestock purchases may be enforced upon any packer operating in compliance with the bonding provisions under section 204 of this title, and prompt payment provisions of section 228b of this title, respectively: Provided, That this section shall not preclude a State from enforcing a requirement, with respect to payment for livestock purchased by a packer at a stockyard subject to this chapter, which is not in conflict with this chapter or regulations thereunder: Provided further, That this section shall not preclude a State from enforcing State law or regulations with respect to any packer not subject to this chapter or section 204 of this title.

(Aug. 15, 1921, ch. 64, title IV, § 414, formerly § 410, as added Pub. L. 94–410, § 9, Sept. 13, 1976, 90 Stat. 1252; renumbered § 414, Pub. L. 100–173, § 9(1), Nov. 23, 1987, 101 Stat. 919.)

CITE AS: 7 USC 228c

§ 228d. Annual assessment of cattle and hog industries
Not later than March 1 of each year, the Secretary shall submit to Congress and make publicly available a report that—
(1) assesses the general economic state of the cattle and hog industries;
(2) describes changing business practices in those industries; and
(3) identifies market operations or activities in those industries that appear to raise concerns under this chapter.
(Aug. 15, 1921, ch. 64, title IV, § 415, as added Pub. L. 106–472, title III, § 312(e)(2), Nov. 9, 2000, 114 Stat. 2077.)

CITE AS: 7 USC 228d

§ 229. Repealed. Pub. L. 110–234, title XI, 11004(b), May 22, 2008, 122 Stat. 1356, and Pub. L. 110–246, § 4(a), title XI, § 11004(b), June 18, 2008, 122 Stat. 1664, 2118

CITE AS: 7 USC 229

§ 229a. Repealed. Pub. L. 106–78, title IX, § 913(a), Oct. 22, 1999, 113 Stat. 1205

CITE AS: 7 USC 229a

§ 229b. Right to discuss terms of contract
(a) Definitions
In this section:
(1) Producer
(2) Processor
(b) No prohibition of discussion
Notwithstanding a provision in any contract between a producer and a processor for the production of livestock or poultry, or in any marketing agreement between a producer and a processor for the sale of livestock or poultry for a term of 1 year or more, that provides that information contained in the contract is confidential, a party to the contract shall not be prohibited from discussing any terms or details of the contract with—
(1) a Federal or State agency;
(2) a legal adviser to the party;
(3) a lender to the party;
(4) an accountant hired by the party;
(5) an executive or manager of the party;
(6) a landlord of the party; or
(7) a member of the immediate family of the party.
(c) Effect on State laws
Subsection (b) does not—
(1) preempt any State law that addresses confidentiality provisions in contracts for the sale or production of livestock or poultry, except any provision of State law that makes lawful a contract provision that prohibits a party from, or limits a party in, engaging in discussion that subsection (b) requires to be permitted; or
(2) deprive any State court of jurisdiction under any such State law.
(d) Applicability
(Pub. L. 107–171, title X, § 10503, May 13, 2002, 116 Stat. 510.)

CITE AS: 7 USC 229b

§ 229c. Separability

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision to other persons and circumstances shall not be affected thereby.

(Aug. 15, 1921, ch. 64, title IV, § 417, formerly § 408, 42 Stat. 169; renumbered § 411, Pub. L. 94–410, § 5, Sept. 13, 1976, 90 Stat. 1250; renumbered § 415, Pub. L. 100–173, § 9(1), Nov. 23, 1987, 101 Stat. 919; renumbered § 416, Pub. L. 106–472, title III, § 312(e)(1), Nov. 9, 2000, 114 Stat. 2077; renumbered § 417, Pub. L. 110–234, title XI, § 11004(a)(1), May 22, 2008, 122 Stat. 1355, and Pub. L. 110–246, § 4(a), title XI, § 11004(a)(1), June 18, 2008, 122 Stat. 1664, 2117.)

CITE AS: 7 USC 229c