I 

111TH CONGRESS 

2D SESSION H. R. 6149 

To require disclosures to consumers by coin and precious metal bullion 

dealers. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 16, 2010 

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

Committee on Energy and Commerce 

A BILL 

To require disclosures to consumers by coin and precious 

metal bullion dealers. 

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 ‘‘Coin and Precious 

5 Metal Disclosure Act’’. 

6 SEC. 2. DISCLOSURES REQUIRED OF COIN AND PRECIOUS 

7 METAL DEALERS. 

8 (a) UNLAWFUL CONDUCT.—A covered coin or pre9 cious metal dealer shall disclose to the consumer, prior to 


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1 any sale of coins or precious metal bullion, the following 

2 information: 

3 (1) Any fee that is or may be incurred by the 

4 customer if the sale of the coin or precious metal 

5 bullion were to be consummated. 

6 (2) The purchase price, the melt value, and the 

7 reasonable resale value of the coin or precious metal 

8 bullion. 

9 (3) Such other information as the Commission 

10 may require by regulation (in accordance with sec11 tion 553 of title 5, United States Code). 

12 (b) MANNER OF DISCLOSURE.— 

13 (1) IN GENERAL.—Except as provided in para14 graph (2), the disclosures required under subsection 

15 (a) shall be in writing and present the information 

16 clearly and conspicuously. 

17 (2) TELEPHONE COMMUNICATION.—In any so18 licitation made by telephone for any sale subject to 

19 subsection (a), the person making the solicitation 

20 shall orally disclose the information required by such 

21 subsection clearly and conspicuously to the consumer 

22 before the transaction is consummated. 


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1 SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS2 SION. 

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

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

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

6 practice in violation of a regulation under section 

7 18(a)(1)(B) of the Federal Trade Commission Act (15 

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

9 or practices. 

10 (b) POWERS OF COMMISSION.—The Commission 

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

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

13 as though all applicable terms and provisions of the Fed14 eral Trade Commission Act (15 U.S.C. 41 et seq.) were 

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

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

17 entitled to the privileges and immunities provided in that 

18 Act. 

19 SEC. 4. ENFORCEMENT BY STATES. 

20 (a) IN GENERAL.—Whenever an attorney general of 

21 any State has reason to believe that the interests of the 

22 residents of that State have been or are being threatened 

23 or adversely affected because any person has engaged or 

24 is engaging in an act or practice which violates section 

25 2 or any rule of the Commission issued pursuant to this 

26 Act, the State, as parens patriae, may bring a civil action 


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1 on behalf of its residents in an appropriate district court 

2 of the United States to enjoin such violative act or prac3 tice, to enforce compliance with such rule of the Commis4 sion, to obtain damages, restitution, or other compensa5 tion on behalf of residents of such State, or to obtain such 

6 further and other relief as the court may determine appro7 priate. 

8 (b) NOTICE.—The State shall provide prior written 

9 notice of any civil action under subsection (a) or (f)(2) 

10 to the Commission and provide the Commission with a 

11 copy of its complaint, except that if it is not feasible for 

12 the State to provide such prior notice, the State shall pro13 vide such notice immediately upon instituting such action. 

14 Upon receiving a notice respecting a civil action, the Com15 mission shall have the right— 

16 (1) to intervene in such action; 

17 (2) upon so intervening, to be heard on all mat18 ters arising therein; 

19 (3) to remove the action to the appropriate 

20 United States district court; and 

21 (4) to file petitions for appeal. 

22 (c) CONSTRUCTION.—For purposes of bringing any 

23 civil action under subsection (a), nothing in this Act shall 

24 prevent an attorney general from exercising the powers 

25 conferred on the attorney general by the laws of such 


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1 State to conduct investigations or to administer oaths or 

2 affirmations or to compel the attendance of witnesses or 

3 the production of documentary and other evidence. 

4 (d) ACTIONS BY COMMISSION.—Whenever a civil ac5 tion has been instituted by or on behalf of the Commission 

6 for violation of section 2 or any rule issued pursuant to 

7 this Act, no State may, during the pendency of such action 

8 instituted by or on behalf of the Commission, institute a 

9 civil action under subsection (a) or (f)(2) of this section 

10 against any defendant named in the complaint in such ac11 tion for violation of any rule as alleged in such complaint. 

12 (e) VENUE; SERVICE OF PROCESS.—Any civil action 

13 brought under subsection (a) of this section in a district 

14 court of the United States may be brought in the district 

15 in which the defendant is found, is an inhabitant, or trans16 acts business or wherever venue is proper under section 

17 1391 of title 28, United States Code. Process in such an 

18 action may be served in any district in which the defend19 ant is an inhabitant or in which the defendant may be 

20 found. 

21 (f) ACTIONS BY OTHER STATE OFFICIALS.— 

22 (1) CONSTRUCTION.—Nothing contained in this 

23 section shall prohibit an authorized State official 

24 from proceeding in State court on the basis of an alVerDate Mar 15 2010 05:47 Sep 17, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H6149.IH H6149

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1 leged violation of any civil or criminal statute of 

2 such State. 

3 (2) OTHER STATE ACTIONS.—In addition to ac4 tions brought by an attorney general of a State 

5 under subsection (a) of this section, such an action 

6 may be brought by officers of such State who are 

7 authorized by the State to bring actions in such 

8 State on behalf of its residents. 

9 SEC. 5. DEFINITIONS. 

10 As used in this Act— 

11 (1) the term ‘‘coin or precious metal dealer’’ 

12 means any person that sells or offer for sale for in13 vestment purposes gold coins or bullion or coins or 

14 bullion made of other precious metals; 

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

16 estimated value of any coin or precious metal if such 

17 item were processed and refined; and 

18 (3) the term ‘‘reasonable resale value’’ means a 

19 reasonable price that the coin or precious metal 

20 dealer selling the coin or other precious metal deter21 mines that other coin or precious metal dealers 

22 would pay to purchase the coin or other precious 

23 metal from the consumer on the date that such coin 

24 or other precious metal is sold to the consumer. 


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1 SEC. 6. EXEMPTION AND RULE OF CONSTRUCTION. 

2 (a) EXEMPTION FOR CERTAIN COLLECTIBLE

3 COINS.—Nothing in this Act shall apply to the sale of rare 

4 and collectable coins— 

5 (1) the precious metal content of which con6 stitutes only a limited or insignificant portion of the 

7 overall value of the coin; and 

8 (2) whose value is not affected by the increase 

9 or decline in the value of such precious metals. 

10 (b) RULE OF CONSTRUCTION RELATING TO THE

11 TELEMARKETING SALES RULE.—Nothing in this Act 

12 shall be construed to affect the Telemarketing Sales Rule 

13 as set forth in part 310 of title 16, Code of Federal Regu14 lations. 

Æ 


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