G:\OFFICE\RAMSEYER\R17\RH\H2668EC_RH.XML
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6/10/2021 23:39
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[Discussion Draft]
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(Original Signature of Member)
[DISCUSSION DRAFT]
1.
This Act may be cited as the Consumer Protection and Recovery Act
.
2.
FTC authority to seek permanent injunctions and other equitable relief
(a)
Permanent injunctions and other equitable relief
Section 13 of the Federal Trade Commission Act (15 U.S.C. 53) is amended—
(1)
in subsection (b)—
(A)
in paragraph (1), by inserting has violated,
after corporation
;
(B)
in paragraph (2)—
(i)
by striking that
and inserting that either (A)
; and
(ii)
by striking final,
and inserting final; or (B) the permanent enjoining thereof or the ordering of equitable relief under subsection (e),
; and
(C)
in the matter following paragraph (2)—
(i)
by striking to enjoin any such act or practice
;
(ii)
by striking Upon
and inserting In a suit under paragraph (2)(A), upon
;
(iii)
by striking without bond
;
(iv)
by striking proper cases
and inserting a suit under paragraph (2)(B)
;
(v)
by striking injunction.
and inserting injunction, equitable relief under subsection (e), or such other relief as the court determines to be just and proper, including temporary or preliminary equitable relief.
;
(vi)
by striking Any suit
and inserting Any suit under this subsection
; and
(vii)
by striking In any suit under this section
and inserting In any such suit
; and
(2)
by adding at the end the following:
(e)
(1)
Restitution; contract rescission and reformation; refunds; return of property
In a suit brought under subsection (b)(2)(B), the Commission may seek, and the court may order, with respect to the violation that gives rise to the suit, restitution for losses, rescission or reformation of contracts, refund of money, or return of property.
(2)
In a suit brought under subsection (b)(2)(B), the Commission may seek, and the court may order, disgorgement of any unjust enrichment that a person, partnership, or corporation obtained as a result of the violation that gives rise to the suit.
(3)
Any amount that a person, partnership, or corporation is ordered to pay under paragraph (2) with respect to a violation shall be offset by any amount such person, partnership, or corporation is ordered to pay, and the value of any property such person, partnership, or corporation is ordered to return, under paragraph (1) with respect to such violation.
(4)
(A)
A court may not order equitable relief under this subsection with respect to any violation occurring before the period that begins on the date that is 10 years before the date on which the Commission files the suit in which such relief is sought.
(B)
For purposes of calculating the beginning of the period described in subparagraph (A), any time during which an individual against which the equitable relief is sought is outside of the United States shall not be counted.
.
(b)
Section 16(a)(2)(A) of the Federal Trade Commission Act (15 U.S.C. 56(a)(2)(A)) is amended by striking (relating to injunctive relief)
.
(c)
The amendments made by this section shall apply with respect to any action or proceeding that is pending on, or commenced on or after, the date of the enactment of this Act.