IB 

Union Calendar No. 402 

111TH CONGRESS 

2D SESSION H. R. 4501 

[Report No. 111–673] 

To require certain return policies from businesses that purchase precious 

metals from consumers and solicit such transactions through an Internet 

website. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 21, 2010 

Mr. WEINER introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

DECEMBER 7, 2010 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

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A BILL 

To require certain return policies from businesses that purchase precious metals from consumers and solicit such 

transactions through an Internet website. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Guarantee of a Legiti5 mate Deal Act of 2009’’. 

6 SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF 

7 PRECIOUS METALS. 

8 (a) UNLAWFUL CONDUCT.—It shall be unlawful for 

9 any online purchaser of precious metals to— 

10 (1) refine through melting or otherwise perma11 nently destroy an item of jewelry or precious metal 

12 which the online purchaser of precious metals has 

13 made an offer to purchase before receiving an af14 firmative acceptance of such offer from the con15 sumer to whom such offer was made; 

16 (2) fail to promptly return to the consumer any 

17 jewelry or other precious metal if the consumer de18 clines the offer to purchase made by the online pur19 chaser of precious metals; or 

20 (3) fail to insure any shipment of such jewelry 

21 or precious metals in an amount equal to— 

22 (A) 60 percent of the melt-value of the 

23 jewelry or precious metals; or 

24 (B) the amount the consumer insured the 

25 shipment of the jewelry or precious metals to 

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1 the online purchaser of precious metals, if the 

2 consumer provides the online purchaser of pre3 cious metals with proof of such insurance. 

4 (b) DEFINITIONS.—As used in this Act— 

5 (1) the term ‘‘online purchaser of precious met6 als’’ means a person who— 

7 (A) is in the business of purchasing jewelry 

8 or other precious metals directly from con9 sumers; and 

10 (B) maintains an Internet website through 

11 which such person solicits such transactions; 

12 and 

13 (2) the term ‘‘melt-value’’ means the estimated 

14 value of any item of jewelry or precious metal, as de15 termined by the online purchaser of precious metals, 

16 once such item has been processed and refined by 

17 the online purchaser of precious metals. 

18 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS19 SION. 

20 (a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.— 

21 A violation of this Act shall be treated as an unfair and 

22 deceptive act or practice in violation of a regulation under 

23 section 18(a)(1)(B) of the Federal Trade Commission Act 

24 (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive 

25 acts or practices. 

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1 (b) POWERS OF COMMISSION.—The Commission 

2 shall enforce this Act in the same manner, by the same 

3 means, and with the same jurisdiction, powers, and duties 

4 as though all applicable terms and provisions of the Fed5 eral Trade Commission Act (15 U.S.C. 41 et seq.) were 

6 incorporated into and made a part of this Act. Any person 

7 who violates such regulations shall be subject to the pen8 alties and entitled to the privileges and immunities pro9 vided in that Act. 

10 SECTION 1. SHORT TITLE. 

11 This Act may be cited as the ‘‘Guarantee of a Legiti12 mate Deal Act of 2010’’. 

13 SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF 

14 PRECIOUS METALS. 

15 (a) UNLAWFUL CONDUCT.—It shall be unlawful for 

16 any purchaser of precious metals to— 

17 (1) sell, transfer to a third party, or refine 

18 through melting or otherwise permanently destroy an 

19 item of jewelry or precious metal before the purchaser 

20 of precious metals has received an affirmative accept21 ance of an offer to purchase the item for a specific 

22 price from the consumer to whom such offer was 

23 made; 

24 (2) fail to promptly return to the consumer any 

25 jewelry or other precious metal if the consumer demstockstill on DSKH9S0YB1PROD with BILLS

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1 clines the offer to purchase made by the purchaser of 

2 precious metals; or 

3 (3) fail to insure any shipment to the consumer 

4 of such jewelry or precious metals in an amount equal 

5 to— 

6 (A) the amount the consumer insured the 

7 shipment of the jewelry or precious metals to the 

8 purchaser of precious metals, if the consumer 

9 provides the purchaser of precious metals with 

10 proof of such insurance; or 

11 (B) 60 percent of the melt-value of the jew12 elry or precious metals, if the consumer does not 

13 provide the purchaser of precious metals with 

14 proof of such insurance. 

15 (4) Law Enforcement Exception—Paragraph (1) 

16 of this subsection shall not prohibit the sale or trans17 fer of any item of jewelry or precious metal to law 

18 enforcement agencies or their personnel. 

19 (b) DEFINITIONS.—As used in this Act— 

20 (1) the term ‘‘purchaser of precious metals’’ 

21 means a person who is in the business of purchasing 

22 jewelry or other precious metals directly from con23 sumers; and 

24 (2) the term ‘‘melt-value’’ means the reasonable 

25 estimated value of any item of jewelry or precious 

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1 metal, as determined by the purchaser of precious 

2 metals, if such item were processed and refined by the 

3 purchaser of precious metals. 

4 (c) REGULATIONS.—The Commission may issue regu5 lations under section 553 of title 5, United States Code, to 

6 carry out the purposes of this Act. 

7 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS8 SION. 

9 (a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.—A 

10 violation of this Act or a regulation issued pursuant to this 

11 Act shall be treated as an unfair or deceptive act or practice 

12 in violation of a regulation under section 18(a)(1)(B) of 

13 the Federal Trade Commission Act (15 U.S.C. 

14 57a(a)(1)(B)) regarding unfair or deceptive acts or prac15 tices. 

16 (b) POWERS OF COMMISSION.—The Commission shall 

17 enforce this Act in the same manner, by the same means, 

18 and with the same jurisdiction, powers, and duties as 

19 though all applicable terms and provisions of the Federal 

20 Trade Commission Act (15 U.S.C. 41 et seq.) were incor21 porated into and made a part of this Act. Any person who 

22 violates this Act shall be subject to the penalties and entitled 

23 to the privileges and immunities provided in that Act. 

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1 SEC. 4. EFFECTIVE DATE. 

2 The provisions of this Act shall take effect 60 days after 

3 the date of enactment of this Act. 

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Union Calendar No. 402 

111TH CONGRESS 

2D SESSION H. R. 4501 

[Report No. 111–673] 

A BILL 

To require certain return policies from businesses 

website. and solicit such transactions through an Internet that purchase precious metals from consumers 

DECEMBER 7, 2010 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 

mstockstill on DSKH9S0YB1PROD with BILLS