Markup of Legislation to Restore the FTC's Consumer Protection Powers

Markup on legislation to restore the Federal Trade Commission’s (FTC) 13(b) consumer protection powers to return money to defrauded consumers. The Subcommittee will consider the following bill:

H.R. 2668, the “Consumer Protection and Recovery Act,” which was introduced by Rep. Tony Cardenas (D-CA). The legislation would amend section 13(b) of the FTC Act to explicitly provide FTC the ability to obtain both injunctive and monetary equitable relief for all violations of the laws it enforces. It adds a new subsection (e) to section 13 of the FTC Act that specifies types of equitable relief the FTC may pursue: restitution for losses, contract reformation and recission, money refunds, and the return of property. The new subsection (e) also provides the FTC disgorgement authority to seek court orders requiring bad actors repay unjust gains acquired in violation of the law. Any amount a court orders to be returned in equitable relief must be offset by any amount the court orders be paid in disgorgement. Such relief is allowed for violations occurring up to the ten years prior to the date a suit is filed, including any violations that occur after the suit is filed. This ten-year period is extended when relief is sought for individuals who are outside of the United States during this period. The bill also makes clear that the FTC may seek temporary restraining orders and preliminary injunctions without bond and that any relief sought under section 13(b) may be for past violations in addition to ongoing and imminent violations. The bill applies to any currently pending FTC action or proceeding in addition to those commenced on or after the date of enactment.