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 amends the Federal Trade Commission Act to require any consent order entered into by the Federal Trade Commission (FTC) to include a termination clause providing for the order to expire not later than eight years after it is entered into, unless it relates to alleged fraud by an entity subject to the order and requires a longer time limit. In determining the time limit, the FTC must consider: (1) the impact of technological progress on the order's continuing relevance; and (2) whether an entity, without a consent order beyond eight years, would engage in activities that violate laws against unfair methods of competition, or against unfair or deceptive acts or practices, in or affecting commerce. A consent order longer than five years that is unrelated to alleged fraud by the entity must include a clause providing for the FTC to review the order five years after it is entered into. The bill also allows entities subject to a consent order that is unrelated to alleged fraud and has been effective for at least five years to petition the FTC to terminate the order. If the FTC determines that such a consent order no longer serves its purposes, the FTC shall terminate the order.