Consumer Protection and Recovery Act

II 117TH CONGRESS 1ST SESSION H. R. 2668 IN THE SENATE OF THE UNITED STATES JULY 21, 2021 Received AN ACT To amend the Federal Trade Commission Act to affirma- tively confirm the authority of the Federal Trade Com- mission to seek permanent injunctions and other equi- table relief for violations of any provision of law enforced by the Commission. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 02:07 Feb 08, 2022 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2668.RDS H2668 kjohnson on DSK79L0C42PROD with BILLS 2 HR 2668 RDS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Consumer Protection 2 and Recovery Act’’. 3 SEC. 2. FTC AUTHORITY TO SEEK PERMANENT INJUNC- 4 TIONS AND OTHER EQUITABLE RELIEF. 5 (a) PERMANENT INJUNCTIONS AND OTHER EQUI- 6 TABLE RELIEF.—Section 13 of the Federal Trade Com- 7 mission Act (15 U.S.C. 53) is amended— 8 (1) in subsection (b)— 9 (A) in paragraph (1), by inserting ‘‘has 10 violated,’’ after ‘‘corporation’’; 11 (B) in paragraph (2)— 12 (i) by striking ‘‘that’’ and inserting 13 ‘‘that either (A)’’; and 14 (ii) by striking ‘‘final,’’ and inserting 15 ‘‘final; or (B) the permanent enjoining 16 thereof or the ordering of equitable relief 17 under subsection (e),’’; and 18 (C) in the matter following paragraph 19 (2)— 20 (i) by striking ‘‘to enjoin any such act 21 or practice’’; 22 (ii) by striking ‘‘Upon’’ and inserting 23 ‘‘In a suit under paragraph (2)(A), upon’’; 24 (iii) by striking ‘‘without bond’’; 25 VerDate Sep 11 2014 02:07 Feb 08, 2022 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2668.RDS H2668 kjohnson on DSK79L0C42PROD with BILLS 3 HR 2668 RDS (iv) by striking ‘‘proper cases’’ and in- 1 serting ‘‘a suit under paragraph (2)(B)’’; 2 (v) by striking ‘‘injunction.’’ and in- 3 serting ‘‘injunction, equitable relief under 4 subsection (e), or such other relief as the 5 court determines to be just and proper, in- 6 cluding temporary or preliminary equitable 7 relief.’’; 8 (vi) by striking ‘‘Any suit’’ and insert- 9 ing ‘‘Any suit under this subsection’’; and 10 (vii) by striking ‘‘In any suit under 11 this section’’ and inserting ‘‘In any such 12 suit’’; and 13 (2) by adding at the end the following: 14 ‘‘(e) EQUITABLE RELIEF.— 15 ‘‘(1) RESTITUTION; CONTRACT RESCISSION AND 16 REFORMATION; REFUNDS; RETURN OF PROPERTY.— 17 In a suit brought under subsection (b)(2)(B), the 18 Commission may seek, and the court may order, 19 with respect to the violation that gives rise to the 20 suit, restitution for losses, rescission or reformation 21 of contracts, refund of money, or return of property. 22 ‘‘(2) DISGORGEMENT.—In a suit brought under 23 subsection (b)(2)(B), the Commission may seek, and 24 the court may order, disgorgement of any unjust en- 25 VerDate Sep 11 2014 02:07 Feb 08, 2022 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2668.RDS H2668 kjohnson on DSK79L0C42PROD with BILLS 4 HR 2668 RDS richment that a person, partnership, or corporation 1 obtained as a result of the violation that gives rise 2 to the suit. 3 ‘‘(3) CALCULATION.—Any amount that a per- 4 son, partnership, or corporation is ordered to pay 5 under paragraph (2) with respect to a violation shall 6 be offset by any amount such person, partnership, or 7 corporation is ordered to pay, and the value of any 8 property such person, partnership, or corporation is 9 ordered to return, under paragraph (1) with respect 10 to such violation. 11 ‘‘(4) LIMITATIONS PERIOD.— 12 ‘‘(A) IN GENERAL.—A court may not order 13 equitable relief under this subsection with re- 14 spect to any violation occurring before the pe- 15 riod that begins on the date that is 10 years be- 16 fore the date on which the Commission files the 17 suit in which such relief is sought. 18 ‘‘(B) CALCULATION.—For purposes of cal- 19 culating the beginning of the period described 20 in subparagraph (A), any time during which an 21 individual against which the equitable relief is 22 sought is outside of the United States shall not 23 be counted.’’. 24 VerDate Sep 11 2014 02:07 Feb 08, 2022 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2668.RDS H2668 kjohnson on DSK79L0C42PROD with BILLS 5 HR 2668 RDS (b) CONFORMING AMENDMENT.—Section 1 16(a)(2)(A) of the Federal Trade Commission Act (15 2 U.S.C. 56(a)(2)(A)) is amended by striking ‘‘(relating to 3 injunctive relief)’’. 4 (c) APPLICABILITY.—The amendments made by this 5 section shall apply with respect to any action or pro- 6 ceeding that is pending on, or commenced on or after, the 7 date of the enactment of this Act. 8 Passed the House of Representatives July 20, 2021. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 02:07 Feb 08, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2668.RDS H2668 kjohnson on DSK79L0C42PROD with BILLS