IIB 

111TH CONGRESS 

2D SESSION H. R. 4501 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 9, 2010 

Received; read twice and referred to the Committee on Commerce, Science, 

and Transportation 

AN ACT 

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, 


jbell on DSKDVH8Z91PROD with BILLS
2 

HR 4501 RFS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Guarantee of a Legiti3 mate Deal Act of 2010’’. 

4 SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF 

5 PRECIOUS METALS. 

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

7 any purchaser of precious metals to— 

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

9 through melting or otherwise permanently destroy 

10 an item of jewelry or precious metal before the pur11 chaser of precious metals has received an affirmative 

12 acceptance of an offer to purchase the item for a 

13 specific price from the consumer to whom such offer 

14 was made; 

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

16 jewelry or other precious metal if the consumer de17 clines the offer to purchase made by the purchaser 

18 of precious metals; or 

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

20 of such jewelry or precious metals in an amount 

21 equal to— 

22 (A) the amount the consumer insured the 

23 shipment of the jewelry or precious metals to 

24 the purchaser of precious metals, if the con25 sumer provides the purchaser of precious metals 

26 with proof of such insurance; or 


jbell on DSKDVH8Z91PROD with BILLS
3 

HR 4501 RFS

1 (B) 60 percent of the melt-value of the 

2 jewelry or precious metals, if the consumer does 

3 not provide the purchaser of precious metals 

4 with proof of such insurance. 

5 (4) Law Enforcement Exception—Paragraph 

6 (1) of this subsection shall not prohibit the sale or 

7 transfer of any item of jewelry or precious metal to 

8 law enforcement agencies or their personnel. 

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

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

11 means a person who is in the business of purchasing 

12 jewelry or other precious metals directly from con13 sumers; and 

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

15 estimated value of any item of jewelry or precious 

16 metal, as determined by the purchaser of precious 

17 metals, if such item were processed and refined by 

18 the purchaser of precious metals. 

19 (c) REGULATIONS.—The Commission may issue reg20 ulations under section 553 of title 5, United States Code, 

21 to carry out the purposes of this Act. 

22 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS23 SION. 

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

25 A violation of this Act or a regulation issued pursuant to 


jbell on DSKDVH8Z91PROD with BILLS
4 

HR 4501 RFS

1 this Act shall be treated as an unfair or deceptive act or 

2 practice in violation of a regulation under section 

3 18(a)(1)(B) of the Federal Trade Commission Act (15 

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

5 or practices. 

6 (b) POWERS OF COMMISSION.—The Commission 

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

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

9 as though all applicable terms and provisions of the Fed10 eral Trade Commission Act (15 U.S.C. 41 et seq.) were 

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

12 who violates this Act shall be subject to the penalties and 

13 entitled to the privileges and immunities provided in that 

14 Act. 

15 SEC. 4. EFFECTIVE DATE. 

16 The provisions of this Act shall take effect 60 days 

17 after the date of enactment of this Act. 

Passed the House of Representatives December 8, 

2010. 

Attest: LORRAINE C. MILLER, 

Clerk. 


jbell on DSKDVH8Z91PROD with BILLS