Consumer Protection and Recovery Act

To amend the Federal Trade Commission Act to affirmatively confirm the authority of the Federal Trade Commission to seek permanent injunctions and other equitable relief for violations of any provision of law enforced by the Commission. 1. Short title This Act may be cited as the Consumer Protection and Recovery Act 2. FTC authority to seek permanent injunctions and other equitable relief (a) Permanent injunctions and other equitable relief Section 13 of the Federal Trade Commission Act ( 15 U.S.C. 53 (1) in subsection (b)— (A) in paragraph (1), by inserting has violated, corporation (B) in paragraph (2)— (i) by striking that that either (A) (ii) by striking final, final; or (B) the permanent enjoining thereof or the ordering of equitable relief under subsection (e), (C) in the matter following paragraph (2)— (i) by striking to enjoin any such act or practice (ii) by striking Upon In a suit under paragraph (2)(A), upon (iii) by striking without bond (iv) by striking proper cases a suit under paragraph (2)(B) (v) by striking injunction. injunction, equitable relief under subsection (e), or such other relief as the court determines to be just and proper, including temporary or preliminary equitable relief. (vi) by striking Any suit Any suit under this subsection (vii) by striking In any suit under this section In any such suit (2) by adding at the end the following: (e) Equitable relief (1) Restitution; contract rescission and reformation; refunds; return of property In a suit brought under subsection (b)(2)(B), the Commission may seek, and the court may order, with respect to the violation that gives rise to the suit, restitution for losses, rescission or reformation of contracts, refund of money, or return of property. (2) Disgorgement In a suit brought under subsection (b)(2)(B), the Commission may seek, and the court may order, disgorgement of any unjust enrichment that a person, partnership, or corporation obtained as a result of the violation that gives rise to the suit. (3) Calculation Any amount that a person, partnership, or corporation is ordered to pay under paragraph (2) with respect to a violation shall be offset by any amount such person, partnership, or corporation is ordered to pay, and the value of any property such person, partnership, or corporation is ordered to return, under paragraph (1) with respect to such violation. (4) Limitations period (A) In general A court may not order equitable relief under this subsection with respect to any violation occurring before the period that begins on the date that is 10 years before the date on which the Commission files the suit in which such relief is sought. (B) Calculation For purposes of calculating the beginning of the period described in subparagraph (A), any time during which an individual against which the equitable relief is sought is outside of the United States shall not be counted. . (b) Conforming amendment Section 16(a)(2)(A) of the Federal Trade Commission Act ( 15 U.S.C. 56(a)(2)(A) (relating to injunctive relief) (c) Applicability The amendments made by this section shall apply with respect to any action or proceeding that is pending on, or commenced on or after, the date of the enactment of this Act. July 16, 2021 Reported from the Committee on Energy and Commerce with an amendment July 16, 2021 Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: Consumer Protection and Recovery Act This bill authorizes the Federal Trade Commission (FTC) to seek monetary relief in federal court from businesses that engage in unlawful commercial practices such as false advertising, consumer fraud, and anticompetitive conduct. Specifically, the FTC may seek restitution in these cases for losses, rescission or reformation of contracts, refund of money, return of property, or disgorgement of unjust enrichment. On April 22, 2021, the Supreme Court held in AMG Capital Management, LLC v. Federal Trade Commission that the Federal Trade Commission Act does not authorize the FTC to seek, or a court to award, such relief.