PUBLIC LAW 109–455—DEC. 22, 2006

UNDERTAKING SPAM, SPYWARE, AND FRAUDWITH ENFORCERS BEYOND BORDERS ACT OF
2006

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00001

Fmt 6579

Sfmt 6579

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

120 STAT. 3372

PUBLIC LAW 109–455—DEC. 22, 2006

Public Law 109–455
109th Congress
An ActDec. 22, 2006
[S. 1608]
Undertaking
Spam, Spyware,and Fraud With
Enforcers beyond
Borders Act of
2006.
15 USC 58 note.

To enhance Federal Trade Commission enforcement against illegal spam, spyware,and cross-border fraud and deception, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Undertaking Spam, Spyware,
And Fraud Enforcement With Enforcers beyond Borders Act of
2006’’ or the ‘‘U.S. SAFE WEB Act of 2006’’.
SEC. 2. FOREIGN LAW ENFORCEMENT AGENCY DEFINED.

Section 4 of the Federal Trade Commission Act (15 U.S.C.
44) is amended by adding at the end the following:‘‘ ‘Foreign law enforcement agency’ means—‘‘(1) any agency or judicial authority of a foreign government, including a foreign state, a political subdivision of aforeign state, or a multinational organization constituted byand comprised of foreign states, that is vested with law enforcement or investigative authority in civil, criminal, or administrative matters; and‘‘(2) any multinational organization, to the extent that itis acting on behalf of an entity described in paragraph (1).’’.
SEC. 3. AVAILABILITY OF REMEDIES.

Section 5(a) of the Federal Trade Commission Act (15 U.S.C.
45(a)) is amended by adding at the end the following:‘‘(4)(A) For purposes of subsection (a), the term ‘unfair
or deceptive acts or practices’ includes such acts or practices
involving foreign commerce that—‘‘(i) cause or are likely to cause reasonably foreseeable
injury within the United States; or‘‘(ii) involve material conduct occurring within the
United States.
‘‘(B) All remedies available to the Commission with respect
to unfair and deceptive acts or practices shall be available
for acts and practices described in this paragraph, including
restitution to domestic or foreign victims.’’.
SEC. 4. POWERS OF THE COMMISSION.

(a) PUBLICATION OF INFORMATION; REPORTS.—Section 6(f) of
the Federal Trade Commission Act (15 U.S.C. 46(f)) is amended—(1) by inserting ‘‘(1)’’ after ‘‘such information’’ the firstplace it appears; and(2) by striking ‘‘purposes.’’ and inserting ‘‘purposes, and(2) to any officer or employee of any foreign law enforcement

VerDate 14-DEC-2004

17:49 Feb 09, 2007

Jkt 059139

PO 00455

Frm 00002

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3373

agency under the same circumstances that making material
available to foreign law enforcement agencies is permitted
under section 21(b).’’.
(b) OTHER POWERS OF THE COMMISSION.—Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is further amended
by inserting after subsection (i) and before the proviso the following:‘‘(j) INVESTIGATIVE ASSISTANCE FOR FOREIGN LAW ENFORCEMENT AGENCIES.—‘‘(1) IN GENERAL.—Upon a written request from a foreign
law enforcement agency to provide assistance in accordancewith this subsection, if the requesting agency states that it
is investigating, or engaging in enforcement proceedings
against, possible violations of laws prohibiting fraudulent or
deceptive commercial practices, or other practices substantiallysimilar to practices prohibited by any provision of the laws
administered by the Commission, other than Federal antitrust
laws (as defined in section 12(5) of the International Antitrust
Enforcement Assistance Act of 1994 (15 U.S.C. 6211(5))), toprovide the assistance described in paragraph (2) without
requiring that the conduct identified in the request constitutea violation of the laws of the United States.
‘‘(2) TYPE OF ASSISTANCE.—In providing assistance to aforeign law enforcement agency under this subsection, theCommission may—‘‘(A) conduct such investigation as the Commission
deems necessary to collect information and evidence pertinent to the request for assistance, using all investigative
powers authorized by this Act; and‘‘(B) when the request is from an agency acting toinvestigate or pursue the enforcement of civil laws, orwhen the Attorney General refers a request to the Commission from an agency acting to investigate or pursue theenforcement of criminal laws, seek and accept appointment
by a United States district court of Commission attorneys
to provide assistance to foreign and international tribunals
and to litigants before such tribunals on behalf of a foreign
law enforcement agency pursuant to section 1782 of title
28, United States Code.
‘‘(3) CRITERIA FOR DETERMINATION.—In deciding whether
to provide such assistance, the Commission shall consider all
relevant factors, including—‘‘(A) whether the requesting agency has agreed to provide or will provide reciprocal assistance to the Commission;‘‘(B) whether compliance with the request would prejudice the public interest of the United States; and‘‘(C) whether the requesting agency’s investigation or
enforcement proceeding concerns acts or practices thatcause or are likely to cause injury to a significant numberof persons.
‘‘(4) INTERNATIONAL AGREEMENTS.—If a foreign law enforcement agency has set forth a legal basis for requiring executionof an international agreement as a condition for reciprocal
assistance, or as a condition for provision of materials or
information to the Commission, the Commission, with priorapproval and ongoing oversight of the Secretary of State, andwith final approval of the agreement by the Secretary of State,

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00003

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

120 STAT. 3374

PUBLIC LAW 109–455—DEC. 22, 2006

may negotiate and conclude an international agreement, inthe name of either the United States or the Commission, forthe purpose of obtaining such assistance, materials, or information. The Commission may undertake in such an international
agreement to—‘‘(A) provide assistance using the powers set forth in
this subsection;‘‘(B) disclose materials and information in accordancewith subsection (f) and section 21(b); and‘‘(C) engage in further cooperation, and protect materials and information received from disclosure, as authorized by this Act.
‘‘(5) ADDITIONAL AUTHORITY.—The authority provided bythis subsection is in addition to, and not in lieu of, any otherauthority vested in the Commission or any other officer of
the United States.
‘‘(6) LIMITATION.—The authority granted by this subsection
shall not authorize the Commission to take any action or exercise any power with respect to a bank, a savings and loan
institution described in section 18(f)(3) (15 U.S.C. 57a(f)(3)),
a Federal credit union described in section 18(f)(4) (15 U.S.C.
57a(f)(4)), or a common carrier subject to the Act to regulatecommerce, except in accordance with the undesignated proviso
following the last designated subsection of section 6 (15 U.S.C.
46).
‘‘(7) ASSISTANCE TO CERTAIN COUNTRIES.—The Commission
may not provide investigative assistance under this subsection
to a foreign law enforcement agency from a foreign state that
the Secretary of State has determined, in accordance withsection 6(j) of the Export Administration Act of 1979 (50 U.S.C.
App. 2405(j)), has repeatedly provided support for acts of international terrorism, unless and until such determination isrescinded pursuant to section 6(j)(4) of that Act (50 U.S.C.
App. 2405(j)(4)).
‘‘(k) REFERRAL OF EVIDENCE FOR CRIMINAL PROCEEDINGS.—‘‘(1) IN GENERAL.—Whenever the Commission obtains evidence that any person, partnership, or corporation, either
domestic or foreign, has engaged in conduct that may constitutea violation of Federal criminal law, to transmit such evidence
to the Attorney General, who may institute criminal proceedings under appropriate statutes. Nothing in this paragraphaffects any other authority of the Commission to disclose
information.
‘‘(2) INTERNATIONAL INFORMATION.—The Commission shallendeavor to ensure, with respect to memoranda of understanding and international agreements it may conclude, thatmaterial it has obtained from foreign law enforcement agencies
acting to investigate or pursue the enforcement of foreign
criminal laws may be used for the purpose of investigation,prosecution, or prevention of violations of United States
criminal laws.
‘‘(l) EXPENDITURES FOR COOPERATIVE ARRANGEMENTS.—To
expend appropriated funds for—‘‘(1) operating expenses and other costs of bilateral andmultilateral cooperative law enforcement groups conducting
activities of interest to the Commission and in which theCommission participates; andVerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00004

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3375‘‘(2) expenses for consultations and meetings hosted by
the Commission with foreign government agency officials, members of their delegations, appropriate representatives and staff
to exchange views concerning developments relating to theCommission’s mission, development and implementation ofcooperation agreements, and provision of technical assistancefor the development of foreign consumer protection or competition regimes, such expenses to include necessary administrativeand logistic expenses and the expenses of Commission staff
and foreign invitees in attendance at such consultations andmeetings including—‘‘(A) such incidental expenses as meals taken in thecourse of such attendance;‘‘(B) any travel and transportation to or from suchmeetings; and‘‘(C) any other related lodging or subsistence.’’.
(c) AUTHORIZATION OF APPROPRIATIONS.—The Federal Trade
Commission is authorized to expend appropriated funds not toexceed $100,000 per fiscal year for purposes of section 6(l) of theFederal Trade Commission Act (15 U.S.C. 46(l)) (as added by subsection (b) of this section), including operating expenses and othercosts of the following bilateral and multilateral cooperative law
enforcement agencies and organizations:(1) The International Consumer Protection and Enforcement Network.
(2) The International Competition Network.
(3) The Mexico-U.S.-Canada Health Fraud Task Force.
(4) Project Emptor.
(5) The Toronto Strategic Partnership and other regional
partnerships with a nexus in a Canadian province.
(d) CONFORMING AMENDMENT.—Section 6 of the Federal Trade
Commission Act (15 U.S.C. 46) is amended by striking ‘‘clauses(a) and (b)’’ in the proviso following subsection (l) (as added bysubsection (b) of this section) and inserting ‘‘subsections (a), (b),and (j)’’.
SEC. 5. REPRESENTATION IN FOREIGN LITIGATION.

Section 16 of the Federal Trade Commission Act (15 U.S.C.
56) is amended by adding at the end the following:‘‘(c) FOREIGN LITIGATION.—‘‘(1) COMMISSION ATTORNEYS.—With the concurrence of the
Attorney General, the Commission may designate Commission
attorneys to assist the Attorney General in connection withlitigation in foreign courts on particular matters in which theCommission has an interest.
‘‘(2) REIMBURSEMENT FOR FOREIGN COUNSEL.—The Commission is authorized to expend appropriated funds, upon agreement with the Attorney General, to reimburse the Attorney
General for the retention of foreign counsel for litigation inforeign courts and for expenses related to litigation in foreign
courts in which the Commission has an interest.
‘‘(3) LIMITATION ON USE OF FUNDS.—Nothing in this subsection authorizes the payment of claims or judgments fromany source other than the permanent and indefinite appropriation authorized by section 1304 of title 31, United States Code.

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00005

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

120 STAT. 3376

PUBLIC LAW 109–455—DEC. 22, 2006‘‘(4) OTHER AUTHORITY.—The authority provided by thissubsection is in addition to any other authority of the Commission or the Attorney General.’’.

SEC. 6. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENTAGENCIES.

(a) MATERIAL OBTAINED PURSUANT TO COMPULSORY PROCESS.—
Section 21(b)(6) of the Federal Trade Commission Act (15 U.S.C.
57b–2(b)(6)) is amended by adding at the end ‘‘The custodian may
make such material available to any foreign law enforcement agency
upon the prior certification of an appropriate official of any suchforeign law enforcement agency, either by a prior agreement or
memorandum of understanding with the Commission or by otherwritten certification, that such material will be maintained in confidence and will be used only for official law enforcement purposes,
if—‘‘(A) the foreign law enforcement agency has set forth abona fide legal basis for its authority to maintain the material
in confidence;‘‘(B) the materials are to be used for purposes of investigating, or engaging in enforcement proceedings related to,possible violations of—‘‘(i) foreign laws prohibiting fraudulent or deceptivecommercial practices, or other practices substantiallysimilar to practices prohibited by any law administeredby the Commission;‘‘(ii) a law administered by the Commission, if disclosure of the material would further a Commission investigation or enforcement proceeding; or‘‘(iii) with the approval of the Attorney General, otherforeign criminal laws, if such foreign criminal laws are
offenses defined in or covered by a criminal mutual legal
assistance treaty in force between the government of theUnited States and the foreign law enforcement agency’s
government;‘‘(C) the appropriate Federal banking agency (as definedin section 3(q) of the Federal Deposit Insurance Act (12 U.S.C.
1813(q)) or, in the case of a Federal credit union, the National
Credit Union Administration, has given its prior approval if
the materials to be provided under subparagraph (B) arerequested by the foreign law enforcement agency for the purpose of investigating, or engaging in enforcement proceedings
based on, possible violations of law by a bank, a savings andloan institution described in section 18(f)(3) of the Federal
Trade Commission Act (15 U.S.C. 57a(f)(3)), or a Federal credit
union described in section 18(f)(4) of the Federal Trade Commission Act (15 U.S.C. 57a(f)(4)); and‘‘(D) the foreign law enforcement agency is not from aforeign state that the Secretary of State has determined, in
accordance with section 6(j) of the Export Administration Act
of 1979 (50 U.S.C. App. 2405(j)), has repeatedly provided support for acts of international terrorism, unless and until suchdetermination is rescinded pursuant to section 6(j)(4) of that
Act (50 U.S.C. App. 2405(j)(4)).
Nothing in the preceding sentence authorizes the disclosure ofmaterial obtained in connection with the administration of theFederal antitrust laws or foreign antitrust laws (as defined in

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00006

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3377

paragraphs (5) and (7), respectively, of section 12 of the International Antitrust Enforcement Assistance Act of 1994 (15 U.S.C.
6211)) to any officer or employee of a foreign law enforcement
agency.’’.
(b) INFORMATION SUPPLIED BY AND ABOUT FOREIGN SOURCES.—
Section 21(f) of the Federal Trade Commission Act (15 U.S.C. 57b–2(f)) is amended to read as follows:‘‘(f) EXEMPTION FROM PUBLIC DISCLOSURE.—‘‘(1) IN GENERAL.—Any material which is received by theCommission in any investigation, a purpose of which is todetermine whether any person may have violated any provisionof the laws administered by the Commission, and which isprovided pursuant to any compulsory process under this Act
or which is provided voluntarily in place of such compulsory
process shall not be required to be disclosed under section
552 of title 5, United States Code, or any other provisionof law, except as provided in paragraph (2)(B) of this section.
‘‘(2) MATERIAL OBTAINED FROM A FOREIGN SOURCE.—‘‘(A) IN GENERAL.—Except as provided in subparagraph(B) of this paragraph, the Commission shall not be required
to disclose under section 552 of title 5, United States Code,or any other provision of law—‘‘(i) any material obtained from a foreign law
enforcement agency or other foreign government
agency, if the foreign law enforcement agency or otherforeign government agency has requested confidential
treatment, or has precluded such disclosure underother use limitations, as a condition of providing thematerial;‘‘(ii) any material reflecting a consumer complaint
obtained from any other foreign source, if that foreignsource supplying the material has requested confidential treatment as a condition of providing the material;or‘‘(iii) any material reflecting a consumer complaint
submitted to a Commission reporting mechanism sponsored in part by foreign law enforcement agencies orother foreign government agencies.
‘‘(B) SAVINGS PROVISION.—Nothing in this subsection
shall authorize the Commission to withhold informationfrom the Congress or prevent the Commission from complying with an order of a court of the United States inan action commenced by the United States or the Commission.’’.
SEC. 7. CONFIDENTIALITY; DELAYED NOTICE OF PROCESS.

(a) IN GENERAL.—The Federal Trade Commission Act (15 U.S.C.
41 et seq.) is amended by inserting after section 21 the following:‘‘SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF COMPULSORYPROCESS FOR CERTAIN THIRD PARTIES.

15 USC 57b–2a.

‘‘(a) APPLICATION WITH OTHER LAWS.—The Right to Financial
Privacy Act (12 U.S.C. 3401 et seq.) and chapter 121 of title 18,
United States Code, shall apply with respect to the Commission,
except as otherwise provided in this section.
‘‘(b) PROCEDURES FOR DELAY OF NOTIFICATION OR PROHIBITION
OF DISCLOSURE.—The procedures for delay of notification or prohibition of disclosure under the Right to Financial Privacy Act (12VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00007

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

120 STAT. 3378

PUBLIC LAW 109–455—DEC. 22, 2006

U.S.C. 3401 et seq.) and chapter 121 of title 18, United States
Code, including procedures for extensions of such delays or prohibitions, shall be available to the Commission, provided that, notwithstanding any provision therein—‘‘(1) a court may issue an order delaying notification or
prohibiting disclosure (including extending such an order) inaccordance with the procedures of section 1109 of the Right
to Financial Privacy Act (12 U.S.C. 3409) (if notification would
otherwise be required under that Act), or section 2705 of title
18, United States Code, (if notification would otherwise berequired under chapter 121 of that title), if the presiding judge
or magistrate judge finds that there is reason to believe thatsuch notification or disclosure may cause an adverse result
as defined in subsection (g) of this section; and‘‘(2) if notification would otherwise be required underchapter 121 of title 18, United States Code, the Commission
may delay notification (including extending such a delay) upon
the execution of a written certification in accordance with theprocedures of section 2705 of that title if the Commission findsthat there is reason to believe that notification may cause
an adverse result as defined in subsection (g) of this section.
‘‘(c) EX PARTE APPLICATION BY COMMISSION.—‘‘(1) IN GENERAL.—If neither notification nor delayed
notification by the Commission is required under the Right
to Financial Privacy Act (12 U.S.C. 3401 et seq.) or chapter
121 of title 18, United States Code, the Commission may apply
ex parte to a presiding judge or magistrate judge for an orderprohibiting the recipient of compulsory process issued by theCommission from disclosing to any other person the existenceof the process, notwithstanding any law or regulation of theUnited States, or under the constitution, or any law or regulation, of any State, political subdivision of a State, territoryof the United States, or the District of Columbia. The presiding
judge or magistrate judge may enter such an order granting
the requested prohibition of disclosure for a period not to exceed
60 days if there is reason to believe that disclosure may cause
an adverse result as defined in subsection (g). The presiding
judge or magistrate judge may grant extensions of this orderof up to 30 days each in accordance with this subsection,
except that in no event shall the prohibition continue in force
for more than a total of 9 months.
‘‘(2) APPLICATION.—This subsection shall apply only inconnection with compulsory process issued by the Commission
where the recipient of such process is not a subject of theinvestigation or proceeding at the time such process is issued.
‘‘(3) LIMITATION.—No order issued under this subsection
shall prohibit any recipient from disclosing to a Federal agency
that the recipient has received compulsory process from theCommission.
‘‘(d) NO LIABILITY FOR FAILURE TO NOTIFY.—If neither notification nor delayed notification by the Commission is required under
the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) or
chapter 121 of title 18, United States Code, the recipient of compulsory process issued by the Commission under this Act shall not
be liable under any law or regulation of the United States, orunder the constitution, or any law or regulation, of any State,political subdivision of a State, territory of the United States, or

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00008

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3379

the District of Columbia, or under any contract or other legally
enforceable agreement, for failure to provide notice to any personthat such process has been issued or that the recipient has provided
information in response to such process. The preceding sentence
does not exempt any recipient from liability for—‘‘(1) the underlying conduct reported;‘‘(2) a failure to comply with the record retention requirements under section 1104(c) of the Right to Financial Privacy
Act (12 U.S.C. 3404), where applicable; or‘‘(3) any failure to comply with any obligation the recipient
may have to disclose to a Federal agency that the recipient
has received compulsory process from the Commission or
intends to provide or has provided information to the Commission in response to such process.
‘‘(e) VENUE AND PROCEDURE.—‘‘(1) IN GENERAL.—All judicial proceedings initiated by theCommission under the Right to Financial Privacy Act (12 U.S.C.
3401 et seq.), chapter 121 of title 18, United States Code,or this section may be brought in the United States District
Court for the District of Columbia or any other appropriate
United States District Court. All ex parte applications by theCommission under this section related to a single investigation
may be brought in a single proceeding.
‘‘(2) IN CAMERA PROCEEDINGS.—Upon application by theCommission, all judicial proceedings pursuant to this section
shall be held in camera and the records thereof sealed until
expiration of the period of delay or such other date as thepresiding judge or magistrate judge may permit.
‘‘(f) SECTION NOT TO APPLY TO ANTITRUST INVESTIGATIONS OR
PROCEEDINGS.—This section shall not apply to an investigationor proceeding related to the administration of Federal antitrust
laws or foreign antitrust laws (as defined in paragraphs (5) and(7), respectively, of section 12 of the International Antitrust Enforcement Assistance Act of 1994 (15 U.S.C. 6211)).
‘‘(g) ADVERSE RESULT DEFINED.—For purposes of this section
the term ‘adverse result’ means—‘‘(1) endangering the life or physical safety of an individual;‘‘(2) flight from prosecution;‘‘(3) the destruction of, or tampering with, evidence;‘‘(4) the intimidation of potential witnesses; or‘‘(5) otherwise seriously jeopardizing an investigation orproceeding related to fraudulent or deceptive commercial practices or persons involved in such practices, or unduly delaying
a trial related to such practices or persons involved in suchpractices, including, but not limited to, by—‘‘(A) the transfer outside the territorial limits of theUnited States of assets or records related to fraudulent
or deceptive commercial practices or related to persons
involved in such practices;‘‘(B) impeding the ability of the Commission to identify
persons involved in fraudulent or deceptive commercial
practices, or to trace the source or disposition of funds
related to such practices; or‘‘(C) the dissipation, fraudulent transfer, or concealment of assets subject to recovery by the Commission.’’.
(b) CONFORMING AMENDMENT.—Section 16(a)(2) of the Federal
Trade Commission Act (15 U.S.C. 56(a)(2)) is amended—

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00009

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

Records.

APPS24

PsN: PUBL455

120 STAT. 3380

PUBLIC LAW 109–455—DEC. 22, 2006
(1) in subparagraph (C) by striking ‘‘or’’ after the semicolon;(2) in subparagraph (D) by inserting ‘‘or’’ after the semicolon; and(3) by inserting after subparagraph (D) the following:‘‘(E) under section 21A of this Act;’’.

SEC. 8. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.

The Federal Trade Commission Act (15 U.S.C. 41 et seq.)
is further amended by adding after section 21A (as added by section
7 of this Act) the following:
15 USC 57b–2b.

‘‘SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.

‘‘(a) IN GENERAL.—‘‘(1) NO LIABILITY FOR PROVIDING CERTAIN MATERIAL.—An
entity described in paragraphs (2) or (3) of subsection (d) thatvoluntarily provides material to the Commission that such
entity reasonably believes is relevant to—‘‘(A) a possible unfair or deceptive act or practice, as
defined in section 5(a) of this Act; or‘‘(B) assets subject to recovery by the Commission,
including assets located in foreign jurisdictions;shall not be liable to any person under any law or regulationof the United States, or under the constitution, or any law
or regulation, of any State, political subdivision of a State,
territory of the United States, or the District of Columbia,
for such provision of material or for any failure to provide
notice of such provision of material or of intention to so provide
material.
‘‘(2) LIMITATIONS.—Nothing in this subsection shall be construed to exempt any such entity from liability—‘‘(A) for the underlying conduct reported; or‘‘(B) to any Federal agency for providing such material
or for any failure to comply with any obligation the entity
may have to notify a Federal agency prior to providing
such material to the Commission.
‘‘(b) CERTAIN FINANCIAL INSTITUTIONS.—An entity described inparagraph (1) of subsection (d) shall, in accordance with section
5318(g)(3) of title 31, United States Code, be exempt from liability
for making a voluntary disclosure to the Commission of any possible
violation of law or regulation, including—‘‘(1) a disclosure regarding assets, including assets locatedin foreign jurisdictions—‘‘(A) related to possibly fraudulent or deceptivecommercial practices;‘‘(B) related to persons involved in such practices; or‘‘(C) otherwise subject to recovery by the Commission;or‘‘(2) a disclosure regarding suspicious chargeback rates
related to possibly fraudulent or deceptive commercial practices.
‘‘(c) CONSUMER COMPLAINTS.—Any entity described in subsection (d) that voluntarily provides consumer complaints sent toit, or information contained therein, to the Commission shall not
be liable to any person under any law or regulation of the UnitedStates, or under the constitution, or any law or regulation, of
any State, political subdivision of a State, territory of the UnitedStates, or the District of Columbia, for such provision of material
or for any failure to provide notice of such provision of material

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00010

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3381

or of intention to so provide material. This subsection shall notprovide any exemption from liability for the underlying conduct.
‘‘(d) APPLICATION.—This section applies to the following entities,
whether foreign or domestic:‘‘(1) A financial institution as defined in section 5312 of
title 31, United States Code.
‘‘(2) To the extent not included in paragraph (1), a bankor thrift institution, a commercial bank or trust company, aninvestment company, a credit card issuer, an operator of acredit card system, and an issuer, redeemer, or cashier oftravelers’ checks, money orders, or similar instruments.
‘‘(3) A courier service, a commercial mail receiving agency,
an industry membership organization, a payment system provider, a consumer reporting agency, a domain name registrar
or registry acting as such, and a provider of alternative dispute
resolution services.
‘‘(4) An Internet service provider or provider of telephoneservices.’’.
SEC. 9. STAFF EXCHANGES.

The Federal Trade Commission Act (15 U.S.C. 41 et seq.)
is amended by adding after section 25 the following new section:‘‘SEC. 25A. STAFF EXCHANGES.

15 USC 57c–1.

‘‘(a) IN GENERAL.—The Commission may—‘‘(1) retain or employ officers or employees of foreign government agencies on a temporary basis as employees of theCommission pursuant to section 2 of this Act or section 3101
or section 3109 of title 5, United States Code; and‘‘(2) detail officers or employees of the Commission to workon a temporary basis for appropriate foreign government agencies.
‘‘(b) RECIPROCITY AND REIMBURSEMENT.—The staff arrangements described in subsection (a) need not be reciprocal. The
Commission may accept payment or reimbursement, in cash orin kind, from a foreign government agency to which this section
is applicable, or payment or reimbursement made on behalf ofsuch agency, for expenses incurred by the Commission, its members,
and employees in carrying out such arrangements.
‘‘(c) STANDARDS OF CONDUCT.—A person appointed under subsection (a)(1) shall be subject to the provisions of law relating
to ethics, conflicts of interest, corruption, and any other criminalor civil statute or regulation governing the standards of conduct
for Federal employees that are applicable to the type of appointment.’’.
SEC. 10. INFORMATION SHARING WITH FINANCIAL REGULATORS.

Section 1112(e) of the Right to Financial Privacy Act of 1978
(12 U.S.C. 3412(e)) is amended by inserting ‘‘the Federal Trade
Commission,’’ after ‘‘the Securities and Exchange Commission,’’.
SEC. 11. AUTHORITY TO ACCEPT REIMBURSEMENTS.

The Federal Trade Commission Act (15 U.S.C. 41 et seq.)
is amended—(1) by redesignating section 26 as section 28; and(2) by inserting after section 25A, as added by section
9 of this Act, the following:

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00011

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

15 USC 58.

APPS24

PsN: PUBL455

120 STAT. 3382
15 USC 57c–2.

PUBLIC LAW 109–455—DEC. 22, 2006‘‘SEC. 26. REIMBURSEMENT OF EXPENSES.

‘‘The Commission may accept payment or reimbursement, incash or in kind, from a domestic or foreign law enforcement agency,
or payment or reimbursement made on behalf of such agency,
for expenses incurred by the Commission, its members, or employees
in carrying out any activity pursuant to a statute administeredby the Commission without regard to any other provision of law.
Any such payments or reimbursements shall be considered a
reimbursement to the appropriated funds of the Commission.’’.
15 USC 44 note.

SEC. 12. PRESERVATION OF EXISTING AUTHORITY.

The authority provided by this Act, and by the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) and the Right to Financial
Privacy Act (12 U.S.C. 3401 et seq.), as such Acts are amended
by this Act, is in addition to, and not in lieu of, any other authority
vested in the Federal Trade Commission or any other officer of
the United States.
15 USC 44 note.

SEC. 13. SUNSET.

This Act, and the amendments made by this Act, shall ceaseto have effect on the date that is 7 years after the date of enactmentof this Act.
SEC. 14. REPORT.

Not later than 3 years after the date of enactment of thisAct, the Federal Trade Commission shall transmit to Congressa report describing its use of and experience with the authority
granted by this Act, along with any recommendations for additional
legislation. The report shall include—(1) the number of cross-border complaints received by theCommission;(2) identification of the foreign agencies to which theCommission has provided nonpublic investigative information
under this Act;(3) the number of times the Commission has used compulsory process on behalf of foreign law enforcement agencies
pursuant to section 6 of the Federal Trade Commission Act(15 U.S.C. 46), as amended by section 4 of this Act;(4) a list of international agreements and memoranda ofunderstanding executed by the Commission that relate to thisAct;(5) the number of times the Commission has sought delayof notice pursuant to section 21A of the Federal Trade Commission Act, as added by section 7 of this Act, and the numberof times a court has granted a delay;(6) a description of the types of information private entities
have provided voluntarily pursuant to section 21B of the Federal Trade Commission Act, as added by section 8 of thisAct;(7) a description of the results of cooperation with foreign
law enforcement agencies under section 21 of the Federal Trade
Commission Act (15 U.S.C. 57–2) as amended by section 6of this Act;(8) an analysis of whether the lack of an exemption fromthe disclosure requirements of section 552 of title 5, UnitedStates Code, with regard to information or material voluntarily

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00012

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455

PUBLIC LAW 109–455—DEC. 22, 2006

120 STAT. 3383

provided relevant to possible unfair or deceptive acts or practices, has hindered the Commission in investigating or engaging
in enforcement proceedings against such practices; and(9) a description of Commission litigation brought in foreign
courts.
Approved December 22, 2006.

LEGISLATIVE HISTORY—S. 1608:
SENATE REPORTS: No. 109–219 (Comm. on Commerce, Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 152 (2006):
Mar. 16, considered and passed Senate.
Dec. 8, considered and passed House, amended. Senate concurred in House
amendment.

Æ

VerDate 14-DEC-2004

22:31 Jan 04, 2007

Jkt 059139

PO 00455

Frm 00013

Fmt 6580

Sfmt 6580

E:\PUBLAW\PUBL455.109

APPS24

PsN: PUBL455