I 

111TH CONGRESS 

2D SESSION H. R. 4501 

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 

A BILL 

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

transactions through an Internet website. 

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— 


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1 (1) refine through melting or otherwise perma2 nently destroy an item of jewelry or precious metal 

3 which the online purchaser of precious metals has 

4 made an offer to purchase before receiving an af5 firmative acceptance of such offer from the con6 sumer to whom such offer was made; 

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

8 jewelry or other precious metal if the consumer de9 clines the offer to purchase made by the online pur10 chaser of precious metals; or 

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

12 or precious metals in an amount equal to— 

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

14 jewelry or precious metals; or 

15 (B) the amount the consumer insured the 

16 shipment of the jewelry or precious metals to 

17 the online purchaser of precious metals, if the 

18 consumer provides the online purchaser of pre19 cious metals with proof of such insurance. 

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

21 (1) the term ‘‘online purchaser of precious met22 als’’ means a person who— 

23 (A) is in the business of purchasing jewelry 

24 or other precious metals directly from con25 sumers; and 


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1 (B) maintains an Internet website through 

2 which such person solicits such transactions; 

3 and 

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

5 value of any item of jewelry or precious metal, as de6 termined by the online purchaser of precious metals, 

7 once such item has been processed and refined by 

8 the online purchaser of precious metals. 

9 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS10 SION. 

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

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

13 deceptive act or practice in violation of a regulation under 

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

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

16 acts or practices. 

17 (b) POWERS OF COMMISSION.—The Commission 

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

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

20 as though all applicable terms and provisions of the Fed21 eral Trade Commission Act (15 U.S.C. 41 et seq.) were 

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

23 who violates such regulations shall be subject to the penVerDate Nov 24 2008 01:49 Jan 22, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4501.IH H4501

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1 alties and entitled to the privileges and immunities pro2 vided in that Act. 

Æ 


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