PUBLIC LAW 109–455—DEC. 22, 2006

UNDERTAKING SPAM, SPYWARE, AND FRAUD

WITH ENFORCERS BEYOND BORDERS ACT OF

2006

120 STAT. 3372 PUBLIC LAW 109–455—DEC. 22, 2006

Public Law 109–455

109th Congress

An Act

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 a

foreign state, or a multinational organization constituted by

and 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 it

is 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 first

place it appears; and

(2) by striking ‘‘purposes.’’ and inserting ‘‘purposes, and

(2) to any officer or employee of any foreign law enforcement

15 USC 58 note.

Undertaking

Spam, Spyware,

and Fraud With

Enforcers beyond

Borders Act of

2006.

Dec. 22, 2006

[S. 1608]

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 ENFORCE- MENT AGENCIES.— ‘‘(1) IN GENERAL.—Upon a written request from a foreign

law enforcement agency to provide assistance in accordance

with 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 substantially

similar 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))), to

provide the assistance described in paragraph (2) without

requiring that the conduct identified in the request constitute

a violation of the laws of the United States.

‘‘(2) TYPE OF ASSISTANCE.—In providing assistance to a

foreign law enforcement agency under this subsection, the

Commission 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 to

investigate or pursue the enforcement of civil laws, or

when the Attorney General refers a request to the Commission from an agency acting to investigate or pursue the

enforcement 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 that

cause or are likely to cause injury to a significant number

of persons.

‘‘(4) INTERNATIONAL AGREEMENTS.—If a foreign law enforcement agency has set forth a legal basis for requiring execution

of 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 prior

approval and ongoing oversight of the Secretary of State, and

with final approval of the agreement by the Secretary of State,

120 STAT. 3374 PUBLIC LAW 109–455—DEC. 22, 2006

may negotiate and conclude an international agreement, in

the name of either the United States or the Commission, for

the 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 accordance

with 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 by

this subsection is in addition to, and not in lieu of, any other

authority 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 regulate

commerce, 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 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 such determination is

rescinded 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 constitute

a violation of Federal criminal law, to transmit such evidence

to the Attorney General, who may institute criminal proceedings under appropriate statutes. Nothing in this paragraph

affects any other authority of the Commission to disclose

information.

‘‘(2) INTERNATIONAL INFORMATION.—The Commission shall

endeavor to ensure, with respect to memoranda of understanding and international agreements it may conclude, that

material 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 and

multilateral cooperative law enforcement groups conducting

activities of interest to the Commission and in which the

Commission participates; and

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 the

Commission’s mission, development and implementation of

cooperation agreements, and provision of technical assistance

for the development of foreign consumer protection or competition regimes, such expenses to include necessary administrative

and logistic expenses and the expenses of Commission staff

and foreign invitees in attendance at such consultations and

meetings including—

‘‘(A) such incidental expenses as meals taken in the

course of such attendance;

‘‘(B) any travel and transportation to or from such

meetings; and

‘‘(C) any other related lodging or subsistence.’’.

(c) AUTHORIZATION OF APPROPRIATIONS.—The Federal Trade

Commission is authorized to expend appropriated funds not to

exceed $100,000 per fiscal year for purposes of section 6(l) of the

Federal Trade Commission Act (15 U.S.C. 46(l)) (as added by subsection (b) of this section), including operating expenses and other

costs 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 by

subsection (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 with

litigation in foreign courts on particular matters in which the

Commission 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 in

foreign 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 from

any source other than the permanent and indefinite appropriation authorized by section 1304 of title 31, United States Code.

120 STAT. 3376 PUBLIC LAW 109–455—DEC. 22, 2006

‘‘(4) OTHER AUTHORITY.—The authority provided by this

subsection is in addition to any other authority of the Commission or the Attorney General.’’.

SEC. 6. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENT

AGENCIES.

(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 such

foreign law enforcement agency, either by a prior agreement or

memorandum of understanding with the Commission or by other

written 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 a

bona 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 deceptive

commercial practices, or other practices substantially

similar to practices prohibited by any law administered

by 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, other

foreign 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 the

United States and the foreign law enforcement agency’s

government;

‘‘(C) the appropriate Federal banking agency (as defined

in 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) are

requested 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 and

loan 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 a

foreign 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 such

determination 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 of

material obtained in connection with the administration of the

Federal antitrust laws or foreign antitrust laws (as defined in

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 the

Commission in any investigation, a purpose of which is to

determine whether any person may have violated any provision

of the laws administered by the Commission, and which is

provided 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 provision

of 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 other

foreign government agency has requested confidential

treatment, or has precluded such disclosure under

other use limitations, as a condition of providing the

material;

‘‘(ii) any material reflecting a consumer complaint

obtained from any other foreign source, if that foreign

source 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 or

other foreign government agencies.

‘‘(B) SAVINGS PROVISION.—Nothing in this subsection

shall authorize the Commission to withhold information

from the Congress or prevent the Commission from complying with an order of a court of the United States in

an 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 COMPULSORY

PROCESS FOR CERTAIN THIRD PARTIES.

‘‘(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 (12

15 USC 57b–2a.

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) in

accordance 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 be

required under chapter 121 of that title), if the presiding judge

or magistrate judge finds that there is reason to believe that

such notification or disclosure may cause an adverse result

as defined in subsection (g) of this section; and

‘‘(2) if notification would otherwise be required under

chapter 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 the

procedures of section 2705 of that title if the Commission finds

that 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 order

prohibiting the recipient of compulsory process issued by the

Commission from disclosing to any other person the existence

of the process, notwithstanding any law or regulation of 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. 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 order

of 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 in

connection with compulsory process issued by the Commission

where the recipient of such process is not a subject of the

investigation 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 the

Commission.

‘‘(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, or

under the constitution, or any law or regulation, of any State,

political subdivision of a State, territory of the United States, or

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 person

that 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 the

Commission 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 the

Commission under this section related to a single investigation

may be brought in a single proceeding.

‘‘(2) IN CAMERA PROCEEDINGS.—Upon application by the

Commission, 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 the

presiding judge or magistrate judge may permit.

‘‘(f) SECTION NOT TO APPLY TO ANTITRUST INVESTIGATIONS OR

PROCEEDINGS.—This section shall not apply to an investigation

or 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 or

proceeding 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 such

practices, including, but not limited to, by—

‘‘(A) the transfer outside the territorial limits of the

United 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—

Records.

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:

‘‘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) that

voluntarily 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 regulation

of 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 in

paragraph (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 located

in foreign jurisdictions—

‘‘(A) related to possibly fraudulent or deceptive

commercial 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 to

it, or information contained therein, to the Commission shall not

be liable to any person under any law or regulation of 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

15 USC 57b–2b.

PUBLIC LAW 109–455—DEC. 22, 2006 120 STAT. 3381

or of intention to so provide material. This subsection shall not

provide 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 bank

or thrift institution, a commercial bank or trust company, an

investment company, a credit card issuer, an operator of a

credit card system, and an issuer, redeemer, or cashier of

travelers’ 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 telephone

services.’’.

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.

‘‘(a) IN GENERAL.—The Commission may—

‘‘(1) retain or employ officers or employees of foreign government agencies on a temporary basis as employees of the

Commission 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 work

on 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 or

in kind, from a foreign government agency to which this section

is applicable, or payment or reimbursement made on behalf of

such 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 criminal

or 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:

15 USC 58.

15 USC 57c–1.

120 STAT. 3382 PUBLIC LAW 109–455—DEC. 22, 2006

‘‘SEC. 26. REIMBURSEMENT OF EXPENSES.

‘‘The Commission may accept payment or reimbursement, in

cash 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 administered

by 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.’’.

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.

SEC. 13. SUNSET.

This Act, and the amendments made by this Act, shall cease

to have effect on the date that is 7 years after the date of enactment

of this Act.

SEC. 14. REPORT.

Not later than 3 years after the date of enactment of this

Act, the Federal Trade Commission shall transmit to Congress

a 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 the

Commission;

(2) identification of the foreign agencies to which the

Commission 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 of

understanding executed by the Commission that relate to this

Act;

(5) the number of times the Commission has sought delay

of notice pursuant to section 21A of the Federal Trade Commission Act, as added by section 7 of this Act, and the number

of 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 this

Act;

(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 6

of this Act;

(8) an analysis of whether the lack of an exemption from

the disclosure requirements of section 552 of title 5, United

States Code, with regard to information or material voluntarily

15 USC 44 note.

15 USC 44 note.

15 USC 57c–2.

PUBLIC LAW 109–455—DEC. 22, 2006 120 STAT. 3383

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

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.