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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10118 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10118

    To provide incentives for and protect whistleblowers under the 
   authority of the Federal Trade Commission, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 13, 2024

 Ms. Schakowsky (for herself and Mrs. Trahan) introduced the following 
    bill; which was referred to the Committee on Education and the 
Workforce, and in addition to the Committee on Energy and Commerce, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
    To provide incentives for and protect whistleblowers under the 
   authority of the Federal Trade Commission, 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 ``FTC Whistleblower Act of 2024''.

SEC. 2. PROTECTION OF WHISTLEBLOWERS.

    (a) Protection From Retaliation.--A covered entity may not, 
directly or indirectly, discharge, demote, suspend, threaten, harass, 
or in any other manner discriminate or take an adverse personnel action 
against an individual (or a group of individuals) because the 
individual (or group of individuals) does any of the following:
            (1) Makes (or the covered entity suspects the individual or 
        group of individuals has made or will make) a covered 
        disclosure to--
                    (A) a qualified entity;
                    (B) a person with supervisory authority over the 
                individual (or group of individuals); or
                    (C) another individual working for the covered 
                entity who the individual (or group of individuals) 
                reasonably believes has the authority to investigate, 
                discover, or terminate the alleged violation in the 
                covered disclosure or to take any other action to 
                address such violation.
            (2) Initiates, testifies, assists, or participates (or the 
        covered entity expects will initiate, testify, assist, or 
        participate) in an investigation conducted by a qualified 
        entity or a judicial or administrative proceeding brought by a 
        qualified entity relating to a covered violation.
            (3) Objects to, or refuses to participate in, any activity, 
        policy, practice, or assigned task that the individual (or 
        group of individuals) reasonably believes is an alleged covered 
        violation.
    (b) Enforcement.--
            (1) Cause of action.--A whistleblower who alleges discharge 
        or other discrimination by a covered entity in violation of 
        subsection (a)--
                    (A) may bring an action governed by the procedures 
                and burdens of proof in section 4712 of title 41, 
                United States Code; or
                    (B) may bring an action in the appropriate district 
                court of the United States--
                            (i) for the relief described in subsection 
                        (c);
                            (ii) governed by the burdens of proof in 
                        section 1221(e) of title 5, United States Code; 
                        and
                            (iii) in which the whistleblower shall be 
                        entitled to a trial by jury.
            (2) Statute of limitations.--
                    (A) In general.--An action under paragraph (1) may 
                not be brought--
                            (i) more than 6 years after the date on 
                        which the violation of subsection (a) occurred; 
                        or
                            (ii) more than 3 years after the date on 
                        which facts material to the right of action are 
                        known or reasonably should have been known by 
                        the whistleblower alleging a violation of 
                        subsection (a).
                    (B) Required action within 10 years.--
                Notwithstanding subparagraph (A), an action under 
                paragraph (1) may not be brought more than 10 years 
                after the date on which the violation of subsection (a) 
                occurred.
            (3) Waiver of rights and remedies.--The rights and remedies 
        provided in this section may not be waived by any policy, 
        written document, or other condition relating to employment, 
        including by a predispute arbitration agreement.
            (4) Predispute arbitration agreements.--Notwithstanding any 
        other provision of law, a predispute arbitration agreement may 
        not be enforced with respect to an action under paragraph (1).
            (5) Restrictive covenant agreements.--Notwithstanding any 
        other provision of law, an agreement in which a whistleblower 
        is restrained by the covered entity that was the subject of a 
        covered disclosure from exercising a lawful profession, trade, 
        or business of any kind may not be enforced.
    (c) Relief.--Relief for any whistleblower who prevails in an action 
brought under subsection (b)(1) shall include--
            (1) reinstatement with the same seniority status that the 
        whistleblower would have had but for the discharge or 
        discrimination;
            (2) 3 times the amount of back pay owed to the 
        whistleblower, with interest; and
            (3) consequential and compensatory damages and compensation 
        for litigation costs, expert witness fees, and reasonable 
        attorneys' fees.
    (d) Communications.--
            (1) Prohibition on impeding covered disclosure.--A covered 
        entity may not take any action that impedes or prevents an 
        individual from communicating directly with a qualified entity 
        about a covered disclosure, including enforcing, or threatening 
        to enforce, a confidentiality or non-disparagement agreement.
            (2) Communication with qualified entities.--A covered 
        entity may not require the consent of the counsel of the 
        covered entity for a qualified entity to communicate directly 
        with an individual or the attorney of an individual (if the 
        individual is represented by an attorney) regarding a possible 
        covered disclosure.
            (3) Enforcement by commission.--
                    (A) Unfair or deceptive acts or practices.--A 
                violation of paragraph (1) or (2) shall be treated as a 
                violation of a regulation under section 18(a)(1)(B) of 
                the Federal Trade Commission Act (15 U.S.C. 
                57a(a)(1)(B)) regarding unfair or deceptive acts or 
                practices.
                    (B) Powers of commission.--The Commission shall 
                enforce paragraphs (1) and (2) in the same manner, by 
                the same means, and with the same jurisdiction, powers, 
                and duties as though all applicable terms and 
                provisions of the Federal Trade Commission Act (15 
                U.S.C. 41 et seq.) were incorporated into and made a 
                part of this subsection, and any person who violates 
                paragraph (1) or (2) shall be subject to the penalties 
                and entitled to the privileges and immunities provided 
                in the Federal Trade Commission Act.
    (e) Confidentiality.--
            (1) Requirement.--The Commission, any employee of the 
        Commission, and any other entity to which the Commission 
        communicates may not disclose any information provided to the 
        Commission, including information provided by a whistleblower, 
        that could reasonably be expected to reveal the identity of a 
        whistleblower.
            (2) Exception.--Notwithstanding paragraph (1), if release 
        of the information described in paragraph (1) is required by 
        law, the whistleblower shall receive timely advance notice 
        before such release.
            (3) Rules of construction.--This paragraph may not be 
        construed to prohibit--
                    (A) any disclosure described in section 21(d) of 
                the Federal Trade Commission Act (15 U.S.C. 57b-2(d));
                    (B) a disclosure to any officer or employee of a 
                Federal or State law enforcement agency or a foreign 
                law enforcement agency under section 6(f) or 21(b)(6) 
                of the Federal Trade Commission Act (15 U.S.C. 46(f), 
                57b-2(b)(6)); or
                    (C) a disclosure to which the whistleblower 
                consents.
    (f) Rules of Construction.--
            (1) Collective bargaining.--Nothing in this section may be 
        construed to diminish the rights, privileges, or remedies of 
        any whistleblower under any Federal or State law relating to 
        collective bargaining or under any collective bargaining 
        agreement.
            (2) Other whistleblower protections.--
                    (A) Nothing in this section may be construed to 
                preempt or supersede any other Federal or State law 
                relating to whistleblower protections.
                    (B) Notwithstanding any other provision of law, a 
                whistleblower shall be immune from civil and criminal 
                liability for making a covered disclosure if the 
                whistleblower would be protected from reprisal under 
                section (a). The whistleblower shall bear the burden 
                required under subsection (b) of proving that the 
                whistleblower would be protected from reprisal under 
                subsection (a) for making the disclosure. This section 
                does not provide a defense against activities unrelated 
                to conduct protected under subsection (a).
            (3) Authority of commission.--Nothing in this section may 
        be construed to limit the authority of the Commission under any 
        other provision of law.

SEC. 3. INCENTIVES FOR WHISTLEBLOWERS.

    (a) Awards.--
            (1) In general.--If a whistleblower (or group of 
        whistleblowers) voluntarily provides to the Commission original 
        information regarding an alleged covered violation and such 
        original information leads to the successful resolution of a 
        covered action, the Commission, subject to subsection (b), 
        shall pay an award to the whistleblower (or group of 
        whistleblowers) in an aggregate amount of--
                    (A) not less than 10 percent, in total, of 
                collected monetary sanctions imposed as a result of the 
                relevant covered action; and
                    (B) not more than 30 percent, in total, of 
                collected monetary sanctions imposed as a result of the 
                relevant covered action.
            (2) Payment of awards.--Any amount paid under paragraph (1) 
        shall be paid from the Fund.
    (b) Determination and Denial of Awards.--
            (1) Determination of awards.--
                    (A) Discretion.--The determination of the amount of 
                an award to be made pursuant to subsection (a) shall be 
                within the discretion of the Commission (subject to the 
                requirements described in subsection (a)).
                    (B) Criteria.--In determining an award to be made 
                pursuant to subsection (a), the Commission--
                            (i) shall take into consideration--
                                    (I) the significance of the 
                                original information provided by the 
                                whistleblower to the successful 
                                resolution of the covered action;
                                    (II) the degree of assistance 
                                provided by the whistleblower and any 
                                legal representative of the 
                                whistleblower in the covered action; 
                                and
                                    (III) such additional factors as 
                                the Commission may establish; and
                            (ii) shall not take into consideration the 
                        balance of the Fund.
            (2) Denial of awards.--Notwithstanding subsection (a), the 
        Commission shall deny an award to any whistleblower to whom an 
        award otherwise would be made pursuant to subsection (a) if the 
        whistleblower--
                    (A) is convicted of a criminal violation related to 
                the relevant covered action;
                    (B) acts without direction from a covered entity 
                (or an agent of a covered entity) to deliberately cause 
                or substantially contribute to the alleged covered 
                violation underlying the relevant covered action;
                    (C) fails to provide the relevant original 
                information to the Commission in the form the 
                Commission requires; and
                    (D) was, at the time the whistleblower acquired the 
                relevant original information, a member, officer, or 
                employee of the Commission or a law enforcement agency 
                and acquired the information while acting in the normal 
                course of the employment duties of the whistleblower.
    (c) Representation.--
            (1) Permitted representation.--A whistleblower may be 
        represented by counsel.
            (2) Required representation.--
                    (A) Anonymous claims.--Any whistleblower who 
                anonymously makes a claim for an award under subsection 
                (a) shall be represented by counsel if the 
                whistleblower anonymously submits the original 
                information upon which the claim is based.
                    (B) Disclosure of identity.--Before the payment of 
                an award described in subparagraph (A), the 
                whistleblower shall disclose the identity of the 
                whistleblower and provide such other information as the 
                Commission may require, directly or through counsel for 
                the whistleblower.
    (d) No Contract Necessary.--A contract with the Commission is not 
necessary for a whistleblower to receive an award pursuant to 
subsection (a).
    (e) Provision of False Information.--A whistleblower who knowingly 
and intentionally makes any false, fictitious, or fraudulent statement 
or representation, or who knowingly and intentionally makes or uses any 
false writing or document containing any false, fictitious, or 
fraudulent statement or entry, may not receive an award pursuant to 
subsection (a).
    (f) Appeals.--
            (1) In general.--Any determination made under this section, 
        including whether, to whom, or in what amount to make an award, 
        shall be in the discretion of the Commission.
            (2) Appeals.--Any determination made by the Commission 
        under this section may be appealed by a whistleblower to the 
        appropriate court of appeals of the United States not later 
        than 30 days after the date on which the determination is 
        issued by the Commission.
            (3) Review.--The court shall review the determination made 
        by the Commission in accordance with section 706 of title 5, 
        United States Code.
    (g) Federal Trade Commission Consumer Protection Fund.--
            (1) Establishment.--There is established in the Treasury of 
        the United States a Fund to be known as the ``Federal Trade 
        Commission Consumer Protection Fund''.
            (2) Use of fund.--The Fund shall be available to the 
        Commission, without further appropriation or fiscal year 
        limitation, in order to pay for awards made to whistleblowers 
        pursuant to subsection (a).
            (3) Deposits and credits.--
                    (A) In general.--There shall be deposited into or 
                credited to the Fund an amount equal to any monetary 
                sanctions collected by the Commission in any covered 
                action, unless the balance of the Fund at the time the 
                monetary sanction is collected exceeds $500,000,000.
                    (B) Additional amounts.--If the amounts deposited 
                into or credited to the Fund under subparagraph (A) are 
                not sufficient to pay an award made pursuant to 
                subsection (a), there shall be deposited into or 
                credited to the Fund an amount equal to the unsatisfied 
                portion of the award from any monetary sanctions 
                collected by the Commission in the covered action on 
                which the award is based.
            (4) Investments.--
                    (A) Amounts in fund.--The Commission may request 
                the Secretary of the Treasury to invest the portion of 
                the Fund that is not required to meet the current needs 
                of the Fund (as determined by the Commission).
                    (B) Eligible investments.--Investments shall be 
                made by the Secretary of the Treasury in obligations of 
                the United States or obligations that are guaranteed as 
                to principal and interest by the United States, with 
                maturities suitable to the needs of the Fund (as 
                determined by the Commission).
                    (C) Interest and proceeds credited.--The interest 
                on, and the proceeds from, the sale or redemption of 
                any obligations held in the Fund shall be credited to, 
                and form a part of, the Fund.
            (5) Reports to congress.--Not later than October 30 of each 
        year, the Commission shall submit to the Committee on Energy 
        and Commerce of the House of Representatives and the Committee 
        on Commerce, Science, and Transportation of the Senate a report 
        on--
                    (A) the whistleblower award program established 
                under this section, including a description of the 
                number of awards made pursuant to subsection (a) and 
                the types of cases in which such awards were made 
                during the preceding fiscal year;
                    (B) the balance of the Fund at the beginning of the 
                preceding fiscal year;
                    (C) the amounts deposited into or credited to the 
                Fund during the preceding fiscal year;
                    (D) the amount of earnings on investments of 
                amounts in the Fund during the preceding fiscal year;
                    (E) the amount paid from the Fund to pay for awards 
                made to whistleblowers pursuant to subsection (a) 
                during the preceding fiscal year;
                    (F) the balance of the Fund at the end of the 
                preceding fiscal year; and
                    (G) a complete set of audited financial statements, 
                including a balance sheet, income statement, and cash 
                flow analysis.
    (h) Rules of Construction.--
            (1) Original information.--Original information submitted 
        to the Commission by a whistleblower in accordance with the 
        requirements of this section shall not lose the status as 
        original information solely because the whistleblower submitted 
        the information before the effective date of any regulation 
        issued under this Act if the information was submitted after 
        the date of the enactment of this Act.
            (2) Awards.--A whistleblower--
                    (A) may receive an award pursuant to subsection (a) 
                regardless of whether the alleged covered violation 
                underlying the covered action occurred before the date 
                of the enactment of this Act; and
                    (B) may receive an award pursuant to subsection (a) 
                before the Commission promulgates any regulation 
                pursuant to this Act.

SEC. 4. RULEMAKING.

    The Commission may promulgate, under section 553 of title 5, United 
States Code, any regulations the Commission determines necessary to 
carry out the provisions of this Act.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Covered action.--The term ``covered action'' means any 
        administrative or judicial action or proceeding, including any 
        related administrative or judicial action, brought by the 
        Commission, or by the Attorney General on behalf of the 
        Commission, in relation to a covered violation and that results 
        in monetary sanctions exceeding $1,000,000.
            (3) Covered disclosure.--The term ``covered disclosure'' 
        means a formal or informal communication or transmission that 
        an individual reasonably believes relates to an alleged covered 
        violation, including such a communication or transmission of 
        such a violation that is part of the normal employment duties 
        of the individual.
            (4) Covered entity.--The term ``covered entity'' means an 
        entity or individual that is subject to the jurisdiction of the 
        Commission.
            (5) Covered violation.--The term ``covered violation'' 
        means--
                    (A) a violation of any law, rule, or regulation 
                enforced by the Commission; or
                    (B) a violation of any order of the Commission 
                after such order has become final and while such order 
                is in effect.
            (6) Fund.--The term ``Fund'' means the Federal Trade 
        Commission Consumer Protection Fund established pursuant to 
        section 3(g).
            (7) Monetary sanctions.--The term ``monetary sanctions'', 
        with respect to a covered action--
                    (A) means monies, including penalties, 
                disgorgement, or interest, ordered or agreed to be paid 
                as a result of such action; and
                    (B) does not include restitution (as determined by 
                the Commission) for losses of, or relief necessary to 
                redress injury to, consumers, other persons, 
                partnerships, and corporations.
            (8) Original information.--The term ``original 
        information'' means information that--
                    (A) is derived from the independent knowledge or 
                analysis of a whistleblower;
                    (B) is not known to the Commission from any other 
                source, unless the whistleblower is the original source 
                of the information; and
                    (C) is not exclusively derived from an allegation 
                made in a judicial or an administrative action, 
                governmental report, hearing, audit, or investigation, 
                or from the news media, unless the whistleblower is a 
                source of the information.
            (9) Qualified entity.--The term ``qualified entity'' 
        means--
                    (A) the Commission;
                    (B) an agency (as defined in section 551 of title 
                5, United States Code) or a law enforcement agency; or
                    (C) any Member of Congress or committee of 
                Congress.
            (10) Related administrative or judicial action.--The terms 
        ``related administrative action'' and ``related judicial 
        action'' include any action brought by any appropriate Federal 
        authority, a State Attorney General in connection with any 
        criminal investigation, or any appropriate State regulatory 
        authority that is based upon the original information provided 
        by a whistleblower that leads to the successful enforcement of 
        the action by the Commission or the Attorney General on behalf 
        of the Commission.
            (11) Whistleblower.--The term ``whistleblower'' means--
                    (A) an individual (or group of individuals) who is 
                a current or former full-time, part-time, or temporary 
                employee, contractor, subcontractor (at any tier), 
                grantee, subgrantee, or agent of a covered entity or 
                employee of a contractor or subcontractor (at any tier) 
                of the covered entity and who engages in any of the 
                conduct described in paragraph (1), (2), or (3) of 
                section 2(a), including as part of the employment 
                duties of such individual or group; or
                    (B) any person that assists any such individual or 
                group with such conduct.
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