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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4435 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 4435

To limit and eliminate excessive, hidden, and unnecessary fees imposed 
on incarcerated individuals and their families, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2024

Mr. Booker (for himself and Ms. Warren) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To limit and eliminate excessive, hidden, and unnecessary fees imposed 
on incarcerated individuals and their families, 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 ``Families Over Fees Act of 2024''.

SEC. 2. PROTECTING CONSUMERS AGAINST EXCESSIVE AND HIDDEN FEES.

    (a) In General.--
            (1) Hidden fees.--A covered entity shall clearly and 
        conspicuously display the total price (inclusive of any 
        mandatory fees) of any good or service provided by the covered 
        entity--
                    (A) in each advertisement for the good or service 
                to a consumer; or
                    (B) whenever presenting the price of such good or 
                service to a consumer.
            (2) Excessive fees.--
                    (A) In general.--A covered entity may not advertise 
                or charge to a consumer any mandatory fees that are 
                excessive with respect to any good or service provided 
                by the covered entity.
                    (B) Considerations.--In determining whether a 
                mandatory fee advertised by or charged to a consumer by 
                a covered entity is excessive, the Commission shall 
                consider--
                            (i) whether the fee is reasonable and 
                        proportional to the cost of the good or service 
                        provided by the covered entity;
                            (ii) the reason for which the covered 
                        entity charges such fee;
                            (iii) the cost of a similar good or service 
                        provided to individuals who are not 
                        incarcerated; and
                            (iv) the degree of available consumer 
                        choice for the good or service, including 
                        whether there are viable alternatives available 
                        that provide the consumer with the opportunity 
                        to avoid an excessive fee.
            (3) Early termination.--A covered entity may not advertise 
        or charge to a consumer any mandatory fees that are excessive 
        for the early termination of a contract for any good or service 
        provided by the covered entity.
            (4) Refunds.--A covered entity shall--
                    (A) clearly and conspicuously disclose any 
                guarantee or refund policy prior to the completion of a 
                transaction by a consumer; and
                    (B) in the event of a request by a consumer for a 
                refund, provide to the consumer a refund in the amount 
                of the total cost (including any mandatory fees) of the 
                good or service provided by the covered entity or any 
                good or service that is undelivered or defective.
            (5) Rule of construction.--Nothing in this subsection shall 
        apply to any--
                    (A) tax, duty, or custom levied by any local, 
                State, Federal, or other governmental entity; or
                    (B) fee covering the cost of delivery of goods, the 
                amount of which is based upon the delivery method 
                selected by the consumer, so long as the covered entity 
                discloses the amount of the delivery fee prior to 
                accepting payment from the consumer.
    (b) Enforcement.--
            (1) Enforcement by the commission.--
                    (A) Unfair or deceptive acts or practices.--A 
                violation of this section or a regulation promulgated 
                thereunder shall be treated as a violation of a rule 
                defining an unfair or deceptive act or practice under 
                section 18(a)(1)(B) of the Federal Trade Commission Act 
                (15 U.S.C. 57a(a)(1)(B)).
                    (B) Powers of the commission.--
                            (i) In general.--The Commission shall 
                        enforce 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 
                        section.
                            (ii) Privileges and immunities.--Any person 
                        who violates this section or a regulation 
                        promulgated thereunder shall be subject to the 
                        penalties and entitled to the privileges and 
                        immunities provided in the Federal Trade 
                        Commission Act (15 U.S.C. 41 et seq.).
                            (iii) Authority preserved.--Nothing in this 
                        section shall be construed to limit the 
                        authority of the Commission under any other 
                        provision of law.
                            (iv) Rulemaking.--The Commission may 
                        promulgate in accordance with section 553 of 
                        title 5, United States Code, such rules as may 
                        be necessary to carry out this section.
                    (C) Notice to states.--Whenever the Commission has 
                brought an action for a violation of this Act and has 
                reason to believe that the attorney general of a State, 
                Territory, or the District of Columbia would be 
                entitled to bring an action under this Act based 
                substantially on the same alleged violation, the 
                Commission shall promptly give written notification 
                thereof to such attorney general.
            (2) Enforcement by the states.--
                    (A) In general.--If the attorney general of a State 
                has reason to believe that a covered entity has 
                violated or is violating this section or a regulation 
                promulgated thereunder that affects the residents of 
                that State, the State, as parens patriae, may bring a 
                civil action in any appropriate district court of the 
                United States, to--
                            (i) enjoin any further violation by the 
                        covered entity;
                            (ii) enforce compliance with this section 
                        or such regulation;
                            (iii) obtain other remedies permitted under 
                        State law; and
                            (iv) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State.
                    (B) Notice.--The attorney general of a State shall 
                provide prior written notice of any action under 
                subparagraph (A) to the Commission and provide the 
                Commission with a copy of the complaint in the action, 
                except in any case in which such prior notice is not 
                feasible, in which case the attorney general shall 
                serve such notice immediately upon instituting such 
                action.
                    (C) Intervention by the commission.--Upon receiving 
                notice under subparagraph (B), the Commission shall 
                have the right--
                            (i) to intervene in the action;
                            (ii) upon so intervening, to be heard on 
                        all matters arising therein; and
                            (iii) to file petitions for appeal.
                    (D) Limitation on state action while federal action 
                is pending.--If the Commission has instituted a civil 
                action for a violation of this section or a regulation 
                promulgated thereunder, no State attorney general, or 
                official or agency of a State, may bring a separate 
                action under subparagraph (A) during the pendency of 
                that action against any defendant named in the 
                complaint of the Commission for any violation of this 
                section or a regulation promulgated thereunder that is 
                alleged in the complaint.
                    (E) Venue; service of process.--
                            (i) Venue.--Any action brought under 
                        subparagraph (A) may be brought in the district 
                        court of the United States that meets 
                        applicable requirements relating to venue under 
                        section 1391 of title 28, United States Code.
                            (ii) Service of process.--In an action 
                        brought under subparagraph (A), process may be 
                        served in any district in which the defendant--
                                    (I) is an inhabitant; or
                                    (II) may be found.
                    (F) Rule of construction.--For purposes of bringing 
                a civil action under subparagraph (A), nothing in this 
                section shall be construed to prevent the chief law 
                enforcement officer or official or agency of a State, 
                from exercising the powers conferred on such chief law 
                enforcement officer or official or agency of a State, 
                by the laws of the State to conduct investigations, 
                administer oaths or affirmations, or compel the 
                attendance of witnesses or the production of 
                documentary and other evidence.
            (3) Private right of action.--
                    (A) In general.--An individual who is injured by a 
                violation of this Act or any regulation promulgated 
                thereunder may bring a civil action in a district court 
                of the United States to--
                            (i) obtain damages, restitution, or other 
                        compensation;
                            (ii) injunctive or declaratory relief;
                            (iii) attorney's fees and litigation costs; 
                        and
                            (iv) any other relief the court deems 
                        proper.
                    (B) Venue.--In a civil action brought under 
                subparagraph (A), the venue shall be--
                            (i) a Federal judicial district in which 
                        the defendant is found, is an inhabitant, or 
                        transacts business; or
                            (ii) wherever venue is proper under section 
                        1391 of title 28, United States Code.
                    (C) Class actions.--An individual entitled to bring 
                an action under this paragraph may bring such action as 
                a representative or class action under rule 23 of the 
                Federal Rules of Civil Procedure or any other provision 
                of law.
                    (D) Statute of limitations.--An action for a 
                violation of this Act may be commenced not later than 
                the later of 4 years after the date on which--
                            (i) the violation occurs; or
                            (ii) the violation is discovered or should 
                        have been discovered through exercise of 
                        reasonable diligence.
                    (E) No arbitration agreement or waiver.--No pre-
                dispute arbitration agreement or pre-dispute joint-
                action waiver shall be valid or enforceable with 
                respect to a dispute arising under this Act. Any 
                determination as to the scope or manner of 
                applicability of this section shall be made by a court, 
                rather than an arbitrator, without regard to whether 
                such agreement purports to delegate such determination 
                to an arbitrator.
                    (F) Rule of construction.--Any rights provided 
                under this subsection are in addition to, and not in 
                lieu of, any other rights or remedies provided by State 
                or Federal law.
    (c) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Consumer.--The term ``consumer'' means--
                    (A) an incarcerated individual who seeks or 
                acquires, by purchase or lease, any goods or services 
                from a covered entity for personal, family, or 
                household purposes; or
                    (B) an individual seeking or acquiring such goods 
                or services from a covered entity for the benefit of or 
                in relation to an incarcerated individual.
            (3) Correctional facility.--The term ``correctional 
        facility'' means a jail, prison, immigration detention center, 
        juvenile detention center, or other facility used to house 
        individuals who are accused of, convicted of, sentenced for, or 
        adjudicated delinquent for, violations of law or the terms and 
        conditions of parole, probation, pretrial release, or a 
        diversionary program.
            (4) Covered entity.--The term ``covered entity'' means an 
        entity that knowingly provides goods or services, for 
        compensation, to consumers within a correctional facility or in 
        connection to a consumer's release from a correctional 
        facility.
            (5) Good.--The term ``good'' means any ware, product, 
        commodity, merchandise, or article sold or offered for sale in 
        or affecting interstate commerce.
            (6) Incarcerated individual.--The term ``incarcerated 
        individual'' means an individual housed at a correctional 
        facility.
            (7) Mandatory fee.--The term ``mandatory fee'' means--
                    (A) any fee or surcharge that a consumer is 
                required to pay to purchase or use a good or service; 
                or
                    (B) a fee or surcharge that is not reasonably 
                avoidable by a consumer.
            (8) Pre-dispute arbitration agreement.--The term ``pre-
        dispute arbitration agreement'' means an agreement to arbitrate 
        a dispute that has not yet arisen at the time of the making of 
        the agreement.
            (9) Pre-dispute joint-action waiver.--The term ``pre-
        dispute joint-action waiver'' means an agreement, whether or 
        not part of a pre-dispute arbitration agreement, that would 
        prohibit or waive the right of any or all of the parties to the 
        agreement to participate in a joint, class, or collective 
        action in a judicial, arbitral, administrative, or other forum, 
        concerning a dispute that has not yet arisen at the time of the 
        making of the agreement.
            (10) Service.--
                    (A) In general.--The term ``service'' means work or 
                labor bought primarily for personal, family, or 
                household purposes, including--
                            (i) consumer financial services (as defined 
                        in section 1002 of the Consumer Financial 
                        Protection Act of 2010 (12 U.S.C. 5481)); and
                            (ii) services furnished in connection with 
                        the sale of goods in or affecting interstate 
                        commerce.
                    (B) Exclusions.--The term ``service'' shall not 
                include:
                            (i) any service described in section 276(d) 
                        of the Communications Act of 1934 (47 U.S.C. 
                        276(d)); or
                            (ii) market-dominant products offered by 
                        the United States Postal Service under 
                        subchapter I of chapter 36 of title 39, United 
                        States Code.
            (11) State.--The term ``State'' means the 50 States, the 
        District of Columbia, and any territory or possession of the 
        United States.
            (12) Transaction.--The term ``transaction'' means an 
        agreement between a consumer and a covered entity, whether or 
        not the agreement is a contract enforceable by action, and 
        includes the making of, and the performance pursuant to, such 
        agreement.
    (d) Severability.--If any provision of this section, or the 
application of such provision to any person or circumstance, is held to 
be unconstitutional, the remainder of this section, and the application 
of the provisions of such section to any person or circumstance, shall 
not be affected.
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