TIME Act

To amend the Federal Trade Commission Act to require a time limitation for consent orders, and for other purposes. 1. Short title This Act may be cited as the Technological Innovation through Modernizing Enforcement Act TIME Act 2. Time limitation for consent orders (a) Amendment Section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 (o) Termination clause required for consent orders Any consent order entered into by the Commission shall include a termination clause that the consent order shall expire not later than 8 years after the date on which the consent order is entered into, unless such consent order relates to alleged fraud by the entity subject to the consent order and requires a time limit longer than 8 years based on the factors described in this subsection. In determining the time limit for any termination clause, the Commission shall consider each of the following factors: (1) The impact of technological progress on the continuing relevance of the consent order. (2) Whether there is reason to believe that the entity would engage in activities that violate this section without the consent order 8 years after the consent order is entered into by the Commission. (p) Consent order review Any consent order entered into by the Commission that is unrelated to alleged fraud by the entity subject to the consent order and has a termination date more than 5 years after such consent order is entered into shall include a clause providing for Commission review of the consent order 5 years after the date on which the order is entered into. Such clause shall require the Commission to evaluate whether the consent order continues to serve its initial purposes based on the factors described in subsection (o). The clause shall provide that if, based on such evaluation, the Commission determines that the consent order no longer serves its purposes, the Commission shall terminate the consent order. (q) Petition for Review of Existing Consent Orders Any entity that as of the effective date of this subsection is subject to a consent order that is unrelated to alleged fraud and has been effective for a period of at least five years may petition the Commission to terminate such consent order. In evaluating a petition to terminate a consent order under this subsection, the Commission shall consider whether the consent order continues to serve its initial purposes based on each of the factors described in subsection (o). If, based on such evaluation, the Commission determines that the consent order no longer serves its purposes, the Commission shall terminate the consent order. . (b) Effective date; applicability The amendment made by subsection (a) shall take effect on the date of enactment of this Act and with respect to subsections (o) and (p) of section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45

Summary: Technological Innovation through Modernizing Enforcement Act or the TIME Act This bill limits to a maximum of eight years the duration of consent orders entered into by the Federal Trade Commission. Further, a consent order that is not related to fraud and is effective for more than five years must include a clause requiring the commission to evaluate the order after five years and terminate the order if it no longer serves its purpose. If an entity has been subject to such a consent order for at least five years, it may petition the commission to terminate the order.