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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5620 Introduced in House (IH)]

106th CONGRESS
  2d Session
                                H. R. 5620

    To require operators of electronic marketplaces to disclose the 
 ownership and management of such marketplaces to market participants, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 2000

   Mrs. Maloney of New York introduced the following bill; which was 
                 referred to the Committee on Commerce

_______________________________________________________________________

                                 A BILL

 
    To require operators of electronic marketplaces to disclose the 
 ownership and management of such marketplaces to market participants, 
                        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 ``Electronic Marketplace Ownership 
Disclosure Act''.

SEC. 2. FEDERAL TRADE COMMISSION REGULATIONS.

    (a) Disclosure Required.--The Commission shall prescribe rules in 
accordance with this section to prohibit unfair and deceptive acts and 
practices in the operation of an electronic marketplace by requiring 
the operator of such market to disclose--
            (1) the identity of--
                    (A) the entities that have a controlling equity 
                stake in such marketplaces;
                    (B) the corporate parents of any subsidiaries or 
                affiliates with a controlling equity stake in such 
                marketplaces; and
                    (C) the names of the directors and officers of each 
                such entity, parent, subsidiary, or affiliate;
            (2) the extent to which the controlling equity holders, or 
        any subsidiary or affiliate, is or intends to become a trading 
        participant in such a marketplace; and
            (3) the percentage of the marketplace's operating expenses 
        and overhead that are paid by the controlling equity 
        stakeholder.
    (b) Rulemaking.--
            (1) In general.--The Commission shall prescribe the rules 
        under subsection (a) within 270 days after the date of 
        enactment of this Act. Such rules shall be prescribed in 
        accordance with section 553 of title 5, United States Code.
            (2) Access via the internet.--The rules prescribed by the 
        Commission under subsection (a) shall require that the 
        information required to be disclosed under such subsection be 
        readily accessible to the public through the Internet.
    (c) Enforcement.--Any violation of any rule prescribed under 
subsection (a) shall be treated as a violation of a rule respecting 
unfair or deceptive acts or practices under section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45). Notwithstanding section 5(a)(2) of 
such Act (15 U.S.C. 45(a)(2)), communications common carriers shall be 
subject to the jurisdiction of the Commission for purposes of this Act.
    (d) Actions by the Commission.--The Commission shall prevent any 
person from violating a rule of the Commission under this section 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 Act. Any person who violates such rule 
shall be subject to the penalties and entitled to the privileges and 
immunities provided in the Federal Trade Commission Act in the same 
manner, by the same means, and with the same jurisdiction, power, and 
duties as though all applicable terms and provisions of the Federal 
Trade Commission Act were incorporated into and made a part of this 
Act.

SEC. 3. DEFINITIONS.

    As used in this Act:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Electronic marketplace.--The term ``electronic 
        marketplace'' means an entity or group of entities using 
        electronic means to trade goods or services, including online 
        Internet exchanges and electronic communications networks 
        (``ECN's'').
            (3) Internet exchange.--The term ``Internet exchange'' 
        means an electronic marketplace conducted over the combination 
        of computer facilities and electromagnetic transmission media, 
        and related equipment and software, comprising the 
        interconnected worldwide network of computer networks that 
        employ the Transmission Control Protocol/Internet Protocol or 
        any successor protocol to transmit information, commonly known 
        as the ``Internet''.
            (4) Electronic communications networks.--The term 
        ``electronic communications networks (``ECN's'') means 
        computerized systems that automatically match orders between 
        buyers and sellers.
            (5) Subsidiary or affiliate.--The term ``subsidiary or 
        affiliate'' means any company that controls, is controlled by, 
        or is under common control with another company.
                                 <all>
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