7 U.S.C. § 227

Powers of Federal Trade Commission and Secretary of Agriculture

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(a) Omitted(b) Jurisdiction of Federal Trade CommissionThe 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

The Federal Trade Commission shall have no power or jurisdiction over any matter which by this chapter is made subject to the jurisdiction of the Secretary, except as provided in subsection (b) of this section.

(d) Jurisdiction of Secretary of Agriculture except for poultry products

The Secretary of Agriculture shall exercise power or jurisdiction over oleomargarine or retail sales of meat, meat food products, or livestock products in unmanufactured form only when he determines, in any investigation of, or any proceeding for the prevention of, an alleged violation of this chapter, that such action is necessary to avoid impairment of his power or jurisdiction over acts or transactions involving livestock, meat, meat food products, livestock products in unmanufactured form, or poultry other than retail sales thereof. In order to avoid unnecessary duplication of effort by the Government and burdens upon the industry, the Secretary shall notify the Federal Trade Commission of such determination, the reasons therefor, and the acts or transactions involved, and shall not exercise power or jurisdiction with respect to acts or transactions involving oleomargarine or retail sales of meat, meat food products, or livestock products in unmanufactured form if the Commission within 10 days from the date of receipt of such notice notifies the Secretary that there is pending in the Commission an investigation of, or proceeding for the prevention of, an alleged violation of any Act administered by the Commission involving the same subject matter.

(e) Jurisdiction of Secretary of Agriculture regarding poultry products

The Secretary of Agriculture shall exercise jurisdiction over poultry products only in a proceeding brought under section 197 of this title or section 228b–1 of this title when such action is necessary to avoid impairment of his jurisdiction.

(f) Information to be included in annual reports

The Secretary of Agriculture and the Federal Trade Commission shall include in their respective annual reports information with respect to the administration of subsections (b), (d), and (e) of this section.

(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.)Editorial NotesCodification

Subsection (a) of section 406 is classified to section 226 of this title.

Amendments

1991—Subsec. (b)(2). Pub. L. 102–237 struck out comma after “unmanufactured form,”.

1987—Subsec. (b)(2). Pub. L. 100–173, § 7(1)(A)(ii), which directed insertion of “or” before “livestock products in unmanufactured form.” was executed by making insertion before “livestock products in unmanufactured form,” as the probable intent of Congress.

Pub. L. 100–173, § 7(1)(A)(i), struck out “or poultry products” after “in unmanufactured form,”.

Subsec. (b)(3). Pub. L. 100–173, § 7(1)(B), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Over all transactions in commerce in margarine or oleomargarine and over retail sales of meat, meat food products, livestock products in unmanufactured form, and poultry products.”

Subsec. (d). Pub. L. 100–173, § 7(2), amended subsec. (d) generally, striking out reference to poultry products in two places and substituting “10 days” for “ten days”.

Subsec. (e). Pub. L. 100–173, § 7(3), (4), added subsec. (e) and redesignated former subsec. (e) as (f).

Subsec. (f). Pub. L. 100–173, § 7(3), (5), redesignated former subsec. (e) as (f) and substituted “subsections (b), (d), and (e)” for “subsections (b) and (d)”.

1958—Pub. L. 85–909 substituted subsecs. (b) to (e) for former provisions providing that Federal Trade Commission shall have no power or jurisdiction over matters within jurisdiction of Secretary of Agriculture except when Secretary requests Commission to make investigations and reports in any case, which were incorporated in subsecs. (b)(1) and (c).

Statutory Notes and Related SubsidiariesEffective Date of 1987 Amendment

Amendment by Pub. L. 100–173 effective 90 days after Nov. 23, 1987, see section 12 of Pub. L. 100–173, set out as a note under section 182 of this title.

Construction of 1987 Amendments

Pub. L. 100–173, § 11, Nov. 23, 1987, 101 Stat. 922, provided that:“(a)General Rule.—The amendments made by this Act [see Short Title of 1987 Amendment note set out under section 181 of this title] to the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.], shall not be construed to limit or otherwise affect the power or jurisdiction of the Federal Trade Commission under the Federal Trade Commission Act [15 U.S.C. 41 et seq.] to prevent the use of—“(1) unfair methods of competition in or affecting commerce, and“(2) unfair and deceptive acts or practices in or affecting commerce,involving poultry products.“(b)Secretary’s Authority.—Subsection (a) shall not be construed to limit or otherwise affect the authority of the Secretary of Agriculture under section 406(e), as amended, of the Packers and Stockyards Act, 1921 [7 U.S.C. 227(e)].”

Executive DocumentsTransfer of Functions

Executive and administrative functions of Federal Trade Commission, with certain reservations, transferred to Chairman of such Commission by 1950 Reorg. Plan No. 8, § 1, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1264, set out in the Appendix to Title 5, Government Organization and Employees.

Notes of Decisions

Cited in 12 cases (4 in the last 5 years), 1940–2025 · leading case: Heslin v. Connecticut Law Clinic of Trantolo & Trantolo

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Heslin v. Connecticut Law Clinic of Trantolo & Trantolo (1983) conn · cites it 2× “], except as provided in section 406 (b) of said Act [ 7 U.S.C. § 227 (a)], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.”

Normand Josef Enterprises, Inc. v. Connecticut National Bank (1994) conn “], except as provided in section 406 (b) of said Act [ 7 U.S.C. § 227 (b)], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.”

United States v. Perdue Farms, Inc. And Franklin P. Perdue (1982) ca2 “These opinions were issued in 1968 without an initial determination of whether the FTC had jurisdiction over the practices in issue under § 406 of the Act, 7 U.S.C. § 227 , and thus are entitled to little weight.”

Federal Trade Commission v. AT & T Mobility LLC (2016) ca9 “], except as provided in section 406(b) of said Act [ 7 U.S.C.A. § 227 (b) ], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.”

Bruhn's Freezer Meats of Chicago, Inc. v. United States Department of Agriculture (1971) ca8 · cites it 7× “§ 182 ; (3) the Department of Agriculture has no jurisdiction over petitioners’ activities because they are retail activities and excluded by the provisions of 7 U.S.C. § 227 ; (4) the Judicial Officer’s finding that the Department of Agriculture had jurisdiction pursuant to 7 U.”

United Corporation v. Federal Trade Commission (1940) ca4 “169 , 7 U.S.C.A. § 227 , provides: “(b) On and after the enactment of this Act, and so long as it remains in effect, the Federal Trade Commission shall have no power or jurisdiction so far as relating to any matter which by this Act is made subject to the jurisdiction of the…”

Federal Trade Commission v. AT & T Mobility LLC (2015) cand “], except as provided in section 406(b) of said Act [ 7 U.S.C. § 227 (b) ], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.”

Stamper v. Manus Dental of Hyde Park, LLC (2025) ilnd · cites it 2× “” 7 U.S.C. § 227 (c)(1)-(2); see also id. § 227(c)(5) (creating a private right of action against those who violate FCC regulations).”

McClenegman v. Union Stock Yards Co. (1962) ca8 “In this respect it contrasts with the succeeding § 406, 7 U.S. C.A. § 227, which denies to the Federal Trade Commission power and jurisdiction over any matter placed by the Act under the jurisdiction of the Secretary of Agriculture.”

Morales v. Sunpath Ltd. (2022) ded “% A7 U.S.C. § 227(b)(1)(A). % 47 U.S.C. § 227 (a)(1).”

United States v. Rhodes (2024) mtd “The Court has already explained that it lacks jurisdiction to consider Rhodes’s constitutional challenges to A7 U.S.C. § 227(e)(1) and 47 C.F.R. § 64.1604 .”

ATS TREE SERVICES, LLC v. FEDERAL TRADE COMMISSION (2024) paed “], except as provided in section 406(b) of said Act [ 7 U.S.C.A. § 227 (b)], from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.”

— 7 U.S.C. § 227(b)(1)(A) — 1 case

Morales v. Sunpath Ltd. (2022) ded “% A7 U.S.C. § 227(b)(1)(A). % 47 U.S.C. § 227 (a)(1).”

— 7 U.S.C. § 227(e)(1) — 1 case

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