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 pur-
chase precious metals from consumers and solicit such 
transactions through an Internet website. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Guarantee of a Legiti-
mate Deal Act of 2010’’. 
SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF 
PRECIOUS METALS. 
(a) UNLAWFUL CONDUCT.—It shall be unlawful for 
any purchaser of precious metals to— 
(1) sell, transfer to a third party, or refine 
through melting or otherwise permanently destroy 
an item of jewelry or precious metal before the pur-
chaser of precious metals has received an affirmative 
acceptance of an offer to purchase the item for a 
specific price from the consumer to whom such offer 
was made; 
(2) fail to promptly return to the consumer any 
jewelry or other precious metal if the consumer de-
clines the offer to purchase made by the purchaser 
of precious metals; or 
(3) fail to insure any shipment to the consumer 
of such jewelry or precious metals in an amount 
equal to— 
(A) the amount the consumer insured the 
shipment of the jewelry or precious metals to 
the purchaser of precious metals, if the con-
sumer provides the purchaser of precious metals 
with proof of such insurance; or 
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(B) 60 percent of the melt-value of the 
jewelry or precious metals, if the consumer does 
not provide the purchaser of precious metals 
with proof of such insurance. 
(4) Law Enforcement Exception—Paragraph 
(1) of this subsection shall not prohibit the sale or 
transfer of any item of jewelry or precious metal to 
law enforcement agencies or their personnel. 
(b) DEFINITIONS.—As used in this Act— 
(1) the term ‘‘purchaser of precious metals’’ 
means a person who is in the business of purchasing 
jewelry or other precious metals directly from con-
sumers; and 
(2) the term ‘‘melt-value’’ means the reasonable 
estimated value of any item of jewelry or precious 
metal, as determined by the purchaser of precious 
metals, if such item were processed and refined by 
the purchaser of precious metals. 
(c) REGULATIONS.—The Commission may issue reg-
ulations under section 553 of title 5, United States Code, 
to carry out the purposes of this Act. 
SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(a) UNFAIR AND DECEPTIVE ACT OR PRACTICE.— 
A violation of this Act or a regulation issued pursuant to 
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this Act shall be treated as an unfair or deceptive act or 
practice in violation of a regulation under section 
18(a)(1)(B) of the Federal Trade Commission Act (15 
U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts 
or practices. 
(b) POWERS
OF COMMISSION.—The Commission 
shall enforce this Act in the same manner, by the same 
means, and with the same jurisdiction, powers, and duties 
as though all applicable terms and provisions of the Fed-
eral Trade Commission Act (15 U.S.C. 41 et seq.) were 
incorporated into and made a part of this Act. Any person 
who violates this Act shall be subject to the penalties and 
entitled to the privileges and immunities provided in that 
Act. 
SEC. 4. EFFECTIVE DATE. 
The provisions of this Act shall take effect 60 days 
after the date of enactment of this Act. 
Passed the House of Representatives December 8, 
2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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