In the House of Representatives, U. S.,

December 9 (legislative day, December 8), 2006.

Resolved, That the bill from the Senate (S. 1608) entitled ‘‘An Act to enhance Federal Trade Commission enforcement against illegal spam, spyware, and cross-border fraud 

and deception, and for other purposes’’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Undertaking Spam, 

3 Spyware, And Fraud Enforcement With Enforcers beyond 

4 Borders Act of 2006’’ or the ‘‘U.S. SAFE WEB Act of 

5 2006’’. 

6 SEC. 2. FOREIGN LAW ENFORCEMENT AGENCY DEFINED. 

7 Section 4 of the Federal Trade Commission Act (15 

8 U.S.C. 44) is amended by adding at the end the following: 

9 ‘‘ ‘Foreign law enforcement agency’ means—

10 ‘‘(1) any agency or judicial authority of a for11 eign government, including a foreign state, a political 

12 subdivision of a foreign state, or a multinational or13 ganization constituted by and comprised of foreign 
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1 states, that is vested with law enforcement or inves2 tigative authority in civil, criminal, or administra3 tive matters; and 

4 ‘‘(2) any multinational organization, to the ex5 tent that it is acting on behalf of an entity described 

6 in paragraph (1).’’. 

7 SEC. 3. AVAILABILITY OF REMEDIES. 

8 Section 5(a) of the Federal Trade Commission Act (15 

9 U.S.C. 45(a)) is amended by adding at the end the fol10 lowing: 

11 ‘‘(4)(A) For purposes of subsection (a), the term 

12 ‘unfair or deceptive acts or practices’ includes such 

13 acts or practices involving foreign commerce that—

14 ‘‘(i) cause or are likely to cause reasonably 

15 foreseeable injury within the United States; or 

16 ‘‘(ii) involve material conduct occurring 

17 within the United States. 

18 ‘‘(B) All remedies available to the Commission 

19 with respect to unfair and deceptive acts or practices 

20 shall be available for acts and practices described in 

21 this paragraph, including restitution to domestic or 

22 foreign victims.’’. 
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1 SEC. 4. POWERS OF THE COMMISSION. 

2 (a) PUBLICATION OF INFORMATION; REPORTS.—Sec3 tion 6(f) of the Federal Trade Commission Act (15 U.S.C. 

4 46(f)) is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘such information’’ 

6 the first place it appears; and 

7 (2) by striking ‘‘purposes.’’ and inserting ‘‘pur8 poses, and (2) to any officer or employee of any for9 eign law enforcement agency under the same cir10 cumstances that making material available to foreign 

11 law enforcement agencies is permitted under section 

12 21(b).’’. 

13 (b) OTHER POWERS OF THE COMMISSION.—Section 6 

14 of the Federal Trade Commission Act (15 U.S.C. 46) is fur15 ther amended by inserting after subsection (i) and before 

16 the proviso the following: 

17 ‘‘(j) INVESTIGATIVE ASSISTANCE FOR FOREIGN LAW

18 ENFORCEMENT AGENCIES.—

19 ‘‘(1) IN GENERAL.—Upon a written request from 

20 a foreign law enforcement agency to provide assist21 ance in accordance with this subsection, if the re22 questing agency states that it is investigating, or en23 gaging in enforcement proceedings against, possible 

24 violations of laws prohibiting fraudulent or deceptive 

25 commercial practices, or other practices substantially 

26 similar to practices prohibited by any provision of 
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1 the laws administered by the Commission, other than 

2 Federal antitrust laws (as defined in section 12(5) of 

3 the International Antitrust Enforcement Assistance 

4 Act of 1994 (15 U.S.C. 6211(5))), to provide the as5 sistance described in paragraph (2) without requiring 

6 that the conduct identified in the request constitute a 

7 violation of the laws of the United States. 

8 ‘‘(2) TYPE OF ASSISTANCE.—In providing assist9 ance to a foreign law enforcement agency under this 

10 subsection, the Commission may—

11 ‘‘(A) conduct such investigation as the Com12 mission deems necessary to collect information 

13 and evidence pertinent to the request for assist14 ance, using all investigative powers authorized 

15 by this Act; and 

16 ‘‘(B) when the request is from an agency 

17 acting to investigate or pursue the enforcement of 

18 civil laws, or when the Attorney General refers 

19 a request to the Commission from an agency act20 ing to investigate or pursue the enforcement of 

21 criminal laws, seek and accept appointment by 

22 a United States district court of Commission at23 torneys to provide assistance to foreign and 

24 international tribunals and to litigants before 

25 such tribunals on behalf of a foreign law enforce-
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1 ment agency pursuant to section 1782 of title 28, 

2 United States Code. 

3 ‘‘(3) CRITERIA FOR DETERMINATION.—In decid4 ing whether to provide such assistance, the Commis5 sion shall consider all relevant factors, including—

6 ‘‘(A) whether the requesting agency has 

7 agreed to provide or will provide reciprocal as8 sistance to the Commission; 

9 ‘‘(B) whether compliance with the request 

10 would prejudice the public interest of the United 

11 States; and 

12 ‘‘(C) whether the requesting agency’s inves13 tigation or enforcement proceeding concerns acts 

14 or practices that cause or are likely to cause in15 jury to a significant number of persons. 

16 ‘‘(4) INTERNATIONAL AGREEMENTS.—If a foreign 

17 law enforcement agency has set forth a legal basis for 

18 requiring execution of an international agreement as 

19 a condition for reciprocal assistance, or as a condi20 tion for provision of materials or information to the 

21 Commission, the Commission, with prior approval 

22 and ongoing oversight of the Secretary of State, and 

23 with final approval of the agreement by the Secretary 

24 of State, may negotiate and conclude an international 

25 agreement, in the name of either the United States or 
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1 the Commission, for the purpose of obtaining such as2 sistance, materials, or information. The Commission 

3 may undertake in such an international agreement 

4 to—

5 ‘‘(A) provide assistance using the powers set 

6 forth in this subsection; 

7 ‘‘(B) disclose materials and information in 

8 accordance with subsection (f) and section 21(b); 

9 and 

10 ‘‘(C) engage in further cooperation, and 

11 protect materials and information received from 

12 disclosure, as authorized by this Act. 

13 ‘‘(5) ADDITIONAL AUTHORITY.—The authority 

14 provided by this subsection is in addition to, and not 

15 in lieu of, any other authority vested in the Commis16 sion or any other officer of the United States. 

17 ‘‘(6) LIMITATION.—The authority granted by 

18 this subsection shall not authorize the Commission to 

19 take any action or exercise any power with respect to 

20 a bank, a savings and loan institution described in 

21 section 18(f)(3) (15 U.S.C. 57a(f)(3)), a Federal cred22 it union described in section 18(f)(4) (15 U.S.C. 

23 57a(f)(4)), or a common carrier subject to the Act to 

24 regulate commerce, except in accordance with the un-
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1 designated proviso following the last designated sub2 section of section 6 (15 U.S.C. 46). 

3 ‘‘(7) ASSISTANCE TO CERTAIN COUNTRIES.—The 

4 Commission may not provide investigative assistance 

5 under this subsection to a foreign law enforcement 

6 agency from a foreign state that the Secretary of 

7 State has determined, in accordance with section 6(j) 

8 of the Export Administration Act of 1979 (50 U.S.C. 

9 App. 2405(j)), has repeatedly provided support for 

10 acts of international terrorism, unless and until such 

11 determination is rescinded pursuant to section 6(j)(4) 

12 of that Act (50 U.S.C. App. 2405(j)(4)). 

13 ‘‘(k) REFERRAL OF EVIDENCE FOR CRIMINAL PRO14 CEEDINGS.—

15 ‘‘(1) IN GENERAL.—Whenever the Commission 

16 obtains evidence that any person, partnership, or cor17 poration, either domestic or foreign, has engaged in 

18 conduct that may constitute a violation of Federal 

19 criminal law, to transmit such evidence to the Attor20 ney General, who may institute criminal proceedings 

21 under appropriate statutes. Nothing in this para22 graph affects any other authority of the Commission 

23 to disclose information. 

24 ‘‘(2) INTERNATIONAL INFORMATION.—The Com25 mission shall endeavor to ensure, with respect to 
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1 memoranda of understanding and international 

2 agreements it may conclude, that material it has ob3 tained from foreign law enforcement agencies acting 

4 to investigate or pursue the enforcement of foreign 

5 criminal laws may be used for the purpose of inves6 tigation, prosecution, or prevention of violations of 

7 United States criminal laws. 

8 ‘‘(l) EXPENDITURES FOR COOPERATIVE ARRANGE9 MENTS.—To expend appropriated funds for—

10 ‘‘(1) operating expenses and other costs of bilat11 eral and multilateral cooperative law enforcement 

12 groups conducting activities of interest to the Com13 mission and in which the Commission participates; 

14 and 

15 ‘‘(2) expenses for consultations and meetings 

16 hosted by the Commission with foreign government 

17 agency officials, members of their delegations, appro18 priate representatives and staff to exchange views con19 cerning developments relating to the Commission’s 

20 mission, development and implementation of coopera21 tion agreements, and provision of technical assistance 

22 for the development of foreign consumer protection or 

23 competition regimes, such expenses to include nec24 essary administrative and logistic expenses and the 

25 expenses of Commission staff and foreign invitees in 
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1 attendance at such consultations and meetings includ2 ing—

3 ‘‘(A) such incidental expenses as meals 

4 taken in the course of such attendance; 

5 ‘‘(B) any travel and transportation to or 

6 from such meetings; and 

7 ‘‘(C) any other related lodging or subsist8 ence.’’. 

9 (c) AUTHORIZATION OF APPROPRIATIONS.—The Fed10 eral Trade Commission is authorized to expend appro11 priated funds not to exceed $100,000 per fiscal year for pur12 poses of section 6(l) of the Federal Trade Commission Act 

13 (15 U.S.C. 46(l)) (as added by subsection (b) of this sec14 tion), including operating expenses and other costs of the 

15 following bilateral and multilateral cooperative law enforce16 ment agencies and organizations: 

17 (1) The International Consumer Protection and 

18 Enforcement Network. 

19 (2) The International Competition Network. 

20 (3) The Mexico-U.S.-Canada Health Fraud Task 

21 Force. 

22 (4) Project Emptor. 

23 (5) The Toronto Strategic Partnership and other 

24 regional partnerships with a nexus in a Canadian 

25 province. 
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1 (d) CONFORMING AMENDMENT.—Section 6 of the Fed2 eral Trade Commission Act (15 U.S.C. 46) is amended by 

3 striking ‘‘clauses (a) and (b)’’ in the proviso following sub4 section (l) (as added by subsection (b) of this section) and 

5 inserting ‘‘subsections (a), (b), and (j)’’. 

6 SEC. 5. REPRESENTATION IN FOREIGN LITIGATION. 

7 Section 16 of the Federal Trade Commission Act (15 

8 U.S.C. 56) is amended by adding at the end the following: 

9 ‘‘(c) FOREIGN LITIGATION.—

10 ‘‘(1) COMMISSION ATTORNEYS.—With the concur11 rence of the Attorney General, the Commission may 

12 designate Commission attorneys to assist the Attorney 

13 General in connection with litigation in foreign 

14 courts on particular matters in which the Commis15 sion has an interest. 

16 ‘‘(2) REIMBURSEMENT FOR FOREIGN COUN17 SEL.—The Commission is authorized to expend ap18 propriated funds, upon agreement with the Attorney 

19 General, to reimburse the Attorney General for the re20 tention of foreign counsel for litigation in foreign 

21 courts and for expenses related to litigation in foreign 

22 courts in which the Commission has an interest. 

23 ‘‘(3) LIMITATION ON USE OF FUNDS.—Nothing 

24 in this subsection authorizes the payment of claims or 

25 judgments from any source other than the permanent 
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1 and indefinite appropriation authorized by section 

2 1304 of title 31, United States Code. 

3 ‘‘(4) OTHER AUTHORITY.—The authority pro4 vided by this subsection is in addition to any other 

5 authority of the Commission or the Attorney Gen6 eral.’’. 

7 SEC. 6. SHARING INFORMATION WITH FOREIGN LAW EN8 FORCEMENT AGENCIES. 

9 (a) MATERIAL OBTAINED PURSUANT TO COMPULSORY

10 PROCESS.—Section 21(b)(6) of the Federal Trade Commis11 sion Act (15 U.S.C. 57b–2(b)(6)) is amended by adding at 

12 the end ‘‘The custodian may make such material available 

13 to any foreign law enforcement agency upon the prior cer14 tification of an appropriate official of any such foreign law 

15 enforcement agency, either by a prior agreement or memo16 randum of understanding with the Commission or by other 

17 written certification, that such material will be maintained 

18 in confidence and will be used only for official law enforce19 ment purposes, if—

20 ‘‘(A) the foreign law enforcement agency has set 

21 forth a bona fide legal basis for its authority to main22 tain the material in confidence; 

23 ‘‘(B) the materials are to be used for purposes of 

24 investigating, or engaging in enforcement proceedings 

25 related to, possible violations of—
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1 ‘‘(i) foreign laws prohibiting fraudulent or 

2 deceptive commercial practices, or other practices 

3 substantially similar to practices prohibited by 

4 any law administered by the Commission; 

5 ‘‘(ii) a law administered by the Commis6 sion, if disclosure of the material would further 

7 a Commission investigation or enforcement pro8 ceeding; or 

9 ‘‘(iii) with the approval of the Attorney 

10 General, other foreign criminal laws, if such for11 eign criminal laws are offenses defined in or cov12 ered by a criminal mutual legal assistance treaty 

13 in force between the government of the United 

14 States and the foreign law enforcement agency’s 

15 government; 

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

17 defined in section 3(q) of the Federal Deposit Insur18 ance Act (12 U.S.C. 1813(q)) or, in the case of a Fed19 eral credit union, the National Credit Union Admin20 istration, has given its prior approval if the materials 

21 to be provided under subparagraph (B) are requested 

22 by the foreign law enforcement agency for the purpose 

23 of investigating, or engaging in enforcement pro24 ceedings based on, possible violations of law by a 

25 bank, a savings and loan institution described in sec-
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1 tion 18(f)(3) of the Federal Trade Commission Act 

2 (15 U.S.C. 57a(f)(3)), or a Federal credit union de3 scribed in section 18(f)(4) of the Federal Trade Com4 mission Act (15 U.S.C. 57a(f)(4)); and 

5 ‘‘(D) the foreign law enforcement agency is not 

6 from a foreign state that the Secretary of State has 

7 determined, in accordance with section 6(j) of the Ex8 port Administration Act of 1979 (50 U.S.C. App. 

9 2405(j)), has repeatedly provided support for acts of 

10 international terrorism, unless and until such deter11 mination is rescinded pursuant to section 6(j)(4) of 

12 that Act (50 U.S.C. App. 2405(j)(4)). 

13 Nothing in the preceding sentence authorizes the disclosure 

14 of material obtained in connection with the administration 

15 of the Federal antitrust laws or foreign antitrust laws (as 

16 defined in paragraphs (5) and (7), respectively, of section 

17 12 of the International Antitrust Enforcement Assistance 

18 Act of 1994 (15 U.S.C. 6211)) to any officer or employee 

19 of a foreign law enforcement agency.’’. 

20 (b) INFORMATION SUPPLIED BY AND ABOUT FOREIGN

21 SOURCES.—Section 21(f) of the Federal Trade Commission 

22 Act (15 U.S.C. 57b–2(f)) is amended to read as follows: 

23 ‘‘(f) EXEMPTION FROM PUBLIC DISCLOSURE.—

24 ‘‘(1) IN GENERAL.—Any material which is re25 ceived by the Commission in any investigation, a 
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1 purpose of which is to determine whether any person 

2 may have violated any provision of the laws adminis3 tered by the Commission, and which is provided pur4 suant to any compulsory process under this Act or 

5 which is provided voluntarily in place of such com6 pulsory process shall not be required to be disclosed 

7 under section 552 of title 5, United States Code, or 

8 any other provision of law, except as provided in 

9 paragraph (2)(B) of this section. 

10 ‘‘(2) MATERIAL OBTAINED FROM A FOREIGN

11 SOURCE.—

12 ‘‘(A) IN GENERAL.—Except as provided in 

13 subparagraph (B) of this paragraph, the Com14 mission shall not be required to disclose under 

15 section 552 of title 5, United States Code, or any 

16 other provision of law—

17 ‘‘(i) any material obtained from a for18 eign law enforcement agency or other for19 eign government agency, if the foreign law 

20 enforcement agency or other foreign govern21 ment agency has requested confidential 

22 treatment, or has precluded such disclosure 

23 under other use limitations, as a condition 

24 of providing the material; 
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1 ‘‘(ii) any material reflecting a con2 sumer complaint obtained from any other 

3 foreign source, if that foreign source sup4 plying the material has requested confiden5 tial treatment as a condition of providing 

6 the material; or 

7 ‘‘(iii) any material reflecting a con8 sumer complaint submitted to a Commis9 sion reporting mechanism sponsored in part 

10 by foreign law enforcement agencies or other 

11 foreign government agencies. 

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

13 subsection shall authorize the Commission to 

14 withhold information from the Congress or pre15 vent the Commission from complying with an 

16 order of a court of the United States in an ac17 tion commenced by the United States or the 

18 Commission.’’. 

19 SEC. 7. CONFIDENTIALITY; DELAYED NOTICE OF PROCESS. 

20 (a) IN GENERAL.—The Federal Trade Commission Act 

21 (15 U.S.C. 41 et seq.) is amended by inserting after section 

22 21 the following: 
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1 ‘‘SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF 

2 COMPULSORY PROCESS FOR CERTAIN THIRD 

3 PARTIES. 

4 ‘‘(a) APPLICATION WITH OTHER LAWS.—The Right to 

5 Financial Privacy Act (12 U.S.C. 3401 et seq.) and chapter 

6 121 of title 18, United States Code, shall apply with respect 

7 to the Commission, except as otherwise provided in this sec8 tion. 

9 ‘‘(b) PROCEDURES FOR DELAY OF NOTIFICATION OR

10 PROHIBITION OF DISCLOSURE.—The procedures for delay 

11 of notification or prohibition of disclosure under the Right 

12 to Financial Privacy Act (12 U.S.C. 3401 et seq.) and chap13 ter 121 of title 18, United States Code, including procedures 

14 for extensions of such delays or prohibitions, shall be avail15 able to the Commission, provided that, notwithstanding any 

16 provision therein—

17 ‘‘(1) a court may issue an order delaying notifi18 cation or prohibiting disclosure (including extending 

19 such an order) in accordance with the procedures of 

20 section 1109 of the Right to Financial Privacy Act 

21 (12 U.S.C. 3409) (if notification would otherwise be 

22 required under that Act), or section 2705 of title 18, 

23 United States Code, (if notification would otherwise 

24 be required under chapter 121 of that title), if the 

25 presiding judge or magistrate judge finds that there 

26 is reason to believe that such notification or disclosure 
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1 may cause an adverse result as defined in subsection 

2 (g) of this section; and 

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

4 under chapter 121 of title 18, United States Code, the 

5 Commission may delay notification (including ex6 tending such a delay) upon the execution of a written 

7 certification in accordance with the procedures of sec8 tion 2705 of that title if the Commission finds that 

9 there is reason to believe that notification may cause 

10 an adverse result as defined in subsection (g) of this 

11 section. 

12 ‘‘(c) EX PARTE APPLICATION BY COMMISSION.—

13 ‘‘(1) IN GENERAL.—If neither notification nor 

14 delayed notification by the Commission is required 

15 under the Right to Financial Privacy Act (12 U.S.C. 

16 3401 et seq.) or chapter 121 of title 18, United States 

17 Code, the Commission may apply ex parte to a pre18 siding judge or magistrate judge for an order prohib19 iting the recipient of compulsory process issued by the 

20 Commission from disclosing to any other person the 

21 existence of the process, notwithstanding any law or 

22 regulation of the United States, or under the constitu23 tion, or any law or regulation, of any State, political 

24 subdivision of a State, territory of the United States, 

25 or the District of Columbia. The presiding judge or 
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1 magistrate judge may enter such an order granting 

2 the requested prohibition of disclosure for a period not 

3 to exceed 60 days if there is reason to believe that dis4 closure may cause an adverse result as defined in sub5 section (g). The presiding judge or magistrate judge 

6 may grant extensions of this order of up to 30 days 

7 each in accordance with this subsection, except that in 

8 no event shall the prohibition continue in force for 

9 more than a total of 9 months. 

10 ‘‘(2) APPLICATION.—This subsection shall apply 

11 only in connection with compulsory process issued by 

12 the Commission where the recipient of such process is 

13 not a subject of the investigation or proceeding at the 

14 time such process is issued. 

15 ‘‘(3) LIMITATION.—No order issued under this 

16 subsection shall prohibit any recipient from disclosing 

17 to a Federal agency that the recipient has received 

18 compulsory process from the Commission. 

19 ‘‘(d) NO LIABILITY FOR FAILURE TO NOTIFY.—If nei20 ther notification nor delayed notification by the Commis21 sion is required under the Right to Financial Privacy Act 

22 (12 U.S.C. 3401 et seq.) or chapter 121 of title 18, United 

23 States Code, the recipient of compulsory process issued by 

24 the Commission under this Act shall not be liable under 

25 any law or regulation of the United States, or under the 
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1 constitution, or any law or regulation, of any State, polit2 ical subdivision of a State, territory of the United States, 

3 or the District of Columbia, or under any contract or other 

4 legally enforceable agreement, for failure to provide notice 

5 to any person that such process has been issued or that the 

6 recipient has provided information in response to such 

7 process. The preceding sentence does not exempt any recipi8 ent from liability for—

9 ‘‘(1) the underlying conduct reported; 

10 ‘‘(2) a failure to comply with the record reten11 tion requirements under section 1104(c) of the Right 

12 to Financial Privacy Act (12 U.S.C. 3404), where ap13 plicable; or 

14 ‘‘(3) any failure to comply with any obligation 

15 the recipient may have to disclose to a Federal agency 

16 that the recipient has received compulsory process 

17 from the Commission or intends to provide or has 

18 provided information to the Commission in response 

19 to such process. 

20 ‘‘(e) VENUE AND PROCEDURE.—

21 ‘‘(1) IN GENERAL.—All judicial proceedings ini22 tiated by the Commission under the Right to Finan23 cial Privacy Act (12 U.S.C. 3401 et seq.), chapter 121 

24 of title 18, United States Code, or this section may 

25 be brought in the United States District Court for the 
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1 District of Columbia or any other appropriate United 

2 States District Court. All ex parte applications by the 

3 Commission under this section related to a single in4 vestigation may be brought in a single proceeding. 

5 ‘‘(2) IN CAMERA PROCEEDINGS.—Upon applica6 tion by the Commission, all judicial proceedings pur7 suant to this section shall be held in camera and the 

8 records thereof sealed until expiration of the period of 

9 delay or such other date as the presiding judge or 

10 magistrate judge may permit. 

11 ‘‘(f) SECTION NOT TO APPLY TO ANTITRUST INVES12 TIGATIONS OR PROCEEDINGS.—This section shall not apply 

13 to an investigation or proceeding related to the administra14 tion of Federal antitrust laws or foreign antitrust laws (as 

15 defined in paragraphs (5) and (7), respectively, of section 

16 12 of the International Antitrust Enforcement Assistance 

17 Act of 1994 (15 U.S.C. 6211). 

18 ‘‘(g) ADVERSE RESULT DEFINED.—For purposes of 

19 this section the term ‘adverse result’ means—

20 ‘‘(1) endangering the life or physical safety of an 

21 individual; 

22 ‘‘(2) flight from prosecution; 

23 ‘‘(3) the destruction of, or tampering with, evi24 dence; 

25 ‘‘(4) the intimidation of potential witnesses; or 
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1 ‘‘(5) otherwise seriously jeopardizing an inves2 tigation or proceeding related to fraudulent or decep3 tive commercial practices or persons involved in such 

4 practices, or unduly delaying a trial related to such 

5 practices or persons involved in such practices, in6 cluding, but not limited to, by—

7 ‘‘(A) the transfer outside the territorial lim8 its of the United States of assets or records re9 lated to fraudulent or deceptive commercial prac10 tices or related to persons involved in such prac11 tices; 

12 ‘‘(B) impeding the ability of the Commis13 sion to identify persons involved in fraudulent or 

14 deceptive commercial practices, or to trace the 

15 source or disposition of funds related to such 

16 practices; or 

17 ‘‘(C) the dissipation, fraudulent transfer, or 

18 concealment of assets subject to recovery by the 

19 Commission.’’. 

20 (b) CONFORMING AMENDMENT.—Section 16(a)(2) of 

21 the Federal Trade Commission Act (15 U.S.C. 56(a)(2)) is 

22 amended—

23 (1) in subparagraph (C) by striking ‘‘or’’ after 

24 the semicolon; 
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1 (2) in subparagraph (D) by inserting ‘‘or’’ after 

2 the semicolon; and 

3 (3) by inserting after subparagraph (D) the fol4 lowing: 

5 ‘‘(E) under section 21A of this Act;’’. 

6 SEC. 8. PROTECTION FOR VOLUNTARY PROVISION OF IN7 FORMATION. 

8 The Federal Trade Commission Act (15 U.S.C. 41 et 

9 seq.) is further amended by adding after section 21A (as 

10 added by section 7 of this Act) the following: 

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

12 INFORMATION. 

13 ‘‘(a) IN GENERAL.—

14 ‘‘(1) NO LIABILITY FOR PROVIDING CERTAIN MA15 TERIAL.—An entity described in paragraphs (2) or 

16 (3) of subsection (d) that voluntarily provides mate17 rial to the Commission that such entity reasonably 

18 believes is relevant to—

19 ‘‘(A) a possible unfair or deceptive act or 

20 practice, as defined in section 5(a) of this Act; 

21 or 

22 ‘‘(B) assets subject to recovery by the Com23 mission, including assets located in foreign juris24 dictions; 
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1 shall not be liable to any person under any law or 

2 regulation of the United States, or under the constitu3 tion, or any law or regulation, of any State, political 

4 subdivision of a State, territory of the United States, 

5 or the District of Columbia, for such provision of ma6 terial or for any failure to provide notice of such pro7 vision of material or of intention to so provide mate8 rial. 

9 ‘‘(2) LIMITATIONS.—Nothing in this subsection 

10 shall be construed to exempt any such entity from li11 ability—

12 ‘‘(A) for the underlying conduct reported; or 

13 ‘‘(B) to any Federal agency for providing 

14 such material or for any failure to comply with 

15 any obligation the entity may have to notify a 

16 Federal agency prior to providing such material 

17 to the Commission. 

18 ‘‘(b) CERTAIN FINANCIAL INSTITUTIONS.—An entity 

19 described in paragraph (1) of subsection (d) shall, in ac20 cordance with section 5318(g)(3) of title 31, United States 

21 Code, be exempt from liability for making a voluntary dis22 closure to the Commission of any possible violation of law 

23 or regulation, including—

24 ‘‘(1) a disclosure regarding assets, including as25 sets located in foreign jurisdictions—
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1 ‘‘(A) related to possibly fraudulent or decep2 tive commercial practices; 

3 ‘‘(B) related to persons involved in such 

4 practices; or 

5 ‘‘(C) otherwise subject to recovery by the 

6 Commission; or 

7 ‘‘(2) a disclosure regarding suspicious chargeback 

8 rates related to possibly fraudulent or deceptive com9 mercial practices. 

10 ‘‘(c) CONSUMER COMPLAINTS.—Any entity described 

11 in subsection (d) that voluntarily provides consumer com12 plaints sent to it, or information contained therein, to the 

13 Commission shall not be liable to any person under any 

14 law or regulation of the United States, or under the con15 stitution, or any law or regulation, of any State, political 

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

17 the District of Columbia, for such provision of material or 

18 for any failure to provide notice of such provision of mate19 rial or of intention to so provide material. This subsection 

20 shall not provide any exemption from liability for the un21 derlying conduct. 

22 ‘‘(d) APPLICATION.—This section applies to the fol23 lowing entities, whether foreign or domestic: 

24 ‘‘(1) A financial institution as defined in section 

25 5312 of title 31, United States Code. 
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1 ‘‘(2) To the extent not included in paragraph 

2 (1), a bank or thrift institution, a commercial bank 

3 or trust company, an investment company, a credit 

4 card issuer, an operator of a credit card system, and 

5 an issuer, redeemer, or cashier of travelers’ checks, 

6 money orders, or similar instruments. 

7 ‘‘(3) A courier service, a commercial mail receiv8 ing agency, an industry membership organization, a 

9 payment system provider, a consumer reporting agen10 cy, a domain name registrar or registry acting as 

11 such, and a provider of alternative dispute resolution 

12 services. 

13 ‘‘(4) An Internet service provider or provider of 

14 telephone services.’’. 

15 SEC. 9. STAFF EXCHANGES. 

16 The Federal Trade Commission Act (15 U.S.C. 41 et 

17 seq.) is amended by adding after section 25 the following 

18 new section: 

19 ‘‘SEC. 25A. STAFF EXCHANGES. 

20 ‘‘(a) IN GENERAL.—The Commission may—

21 ‘‘(1) retain or employ officers or employees of 

22 foreign government agencies on a temporary basis as 

23 employees of the Commission pursuant to section 2 of 

24 this Act or section 3101 or section 3109 of title 5, 

25 United States Code; and 
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1 ‘‘(2) detail officers or employees of the Commis2 sion to work on a temporary basis for appropriate 

3 foreign government agencies. 

4 ‘‘(b) RECIPROCITY AND REIMBURSEMENT.—The staff 

5 arrangements described in subsection (a) need not be recip6 rocal. The Commission may accept payment or reimburse7 ment, in cash or in kind, from a foreign government agency 

8 to which this section is applicable, or payment or reim9 bursement made on behalf of such agency, for expenses in10 curred by the Commission, its members, and employees in 

11 carrying out such arrangements. 

12 ‘‘(c) STANDARDS OF CONDUCT.—A person appointed 

13 under subsection (a)(1) shall be subject to the provisions of 

14 law relating to ethics, conflicts of interest, corruption, and 

15 any other criminal or civil statute or regulation governing 

16 the standards of conduct for Federal employees that are ap17 plicable to the type of appointment.’’. 

18 SEC. 10. INFORMATION SHARING WITH FINANCIAL REGU19 LATORS. 

20 Section 1112(e) of the Right to Financial Privacy Act 

21 of 1978 (12 U.S.C. 3412(e)) is amended by inserting ‘‘the 

22 Federal Trade Commission,’’ after ‘‘the Securities and Ex23 change Commission,’’. 
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1 SEC. 11. AUTHORITY TO ACCEPT REIMBURSEMENTS. 

2 The Federal Trade Commission Act (15 U.S.C. 41 et 

3 seq.) is amended—

4 (1) by redesignating section 26 as section 28; 

5 and 

6 (2) by inserting after section 25A, as added by 

7 section 9 of this Act, the following: 

8 ‘‘SEC. 26. REIMBURSEMENT OF EXPENSES. 

9 ‘‘The Commission may accept payment or reimburse10 ment, in cash or in kind, from a domestic or foreign law 

11 enforcement agency, or payment or reimbursement made on 

12 behalf of such agency, for expenses incurred by the Commis13 sion, its members, or employees in carrying out any activ14 ity pursuant to a statute administered by the Commission 

15 without regard to any other provision of law. Any such 

16 payments or reimbursements shall be considered a reim17 bursement to the appropriated funds of the Commission.’’. 

18 SEC. 12. PRESERVATION OF EXISTING AUTHORITY. 

19 The authority provided by this Act, and by the Federal 

20 Trade Commission Act (15 U.S.C. 41 et seq.) and the Right 

21 to Financial Privacy Act (12 U.S.C. 3401 et seq.), as such 

22 Acts are amended by this Act, is in addition to, and not 

23 in lieu of, any other authority vested in the Federal Trade 

24 Commission or any other officer of the United States. 
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1 SEC. 13. SUNSET. 

2 This Act , and the amendments made by this Act , 

3 shall cease to have effect on the date that is 7 years after 

4 the date of enactment of this Act. 

5 SEC. 14. REPORT. 

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

7 this Act, the Federal Trade Commission shall transmit to 

8 Congress a report describing its use of and experience with 

9 the authority granted by this Act, along with any rec10 ommendations for additional legislation. The report shall 

11 include—

12 (1) the number of cross-border complaints re13 ceived by the Commission; 

14 (2) identification of the foreign agencies to which 

15 the Commission has provided nonpublic investigative 

16 information under this Act; 

17 (3) the number of times the Commission has used 

18 compulsory process on behalf of foreign law enforce19 ment agencies pursuant to section 6 of the Federal 

20 Trade Commission Act (15 U.S.C. 46), as amended 

21 by section 4 of this Act; 

22 (4) a list of international agreements and memo23 randa of understanding executed by the Commission 

24 that relate to this Act; 

25 (5) the number of times the Commission has 

26 sought delay of notice pursuant to section 21A of the 
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1 Federal Trade Commission Act, as added by section 

2 7 of this Act, and the number of times a court has 

3 granted a delay; 

4 (6) a description of the types of information pri5 vate entities have provided voluntarily pursuant to 

6 section 21B of the Federal Trade Commission Act, as 

7 added by section 8 of this Act; 

8 (7) a description of the results of cooperation 

9 with foreign law enforcement agencies under section 

10 21 of the Federal Trade Commission Act (15 U.S.C. 

11 57–2) as amended by section 6 of this Act; 

12 (8) an analysis of whether the lack of an exemp13 tion from the disclosure requirements of section 552 of 

14 title 5, United States Code, with regard to informa15 tion or material voluntarily provided relevant to pos16 sible unfair or deceptive acts or practices, has hin17 dered the Commission in investigating or engaging in 

18 enforcement proceedings against such practices; and 

19 (9) a description of Commission litigation 

20 brought in foreign courts.

Attest:

Clerk. 

109TH CONGRESS 

2D SESSION S. 1608

AMENDMENT