I 
108TH CONGRESS 
1ST SESSION H. R. 3143
To enhance Federal Trade Commission enforcement against cross-border 
fraud and deception. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 23, 2003
Mr. STEARNS (for himself and Ms. SCHAKOWSKY) introduced the following 
bill; which was referred to the Committee on Energy and Commerce 
A BILL 
To enhance Federal Trade Commission enforcement against 
cross-border fraud and deception.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be referred to as the ‘‘International 
Consumer Protection Act of 2003’’. 
SEC. 2. FOREIGN LAW ENFORCEMENT AGENCY DEFINED. 
Section 4 of the Federal Trade Commission Act (15 
U.S.C. 44) is amended by adding at the end the following 
new paragraph: 
‘‘‘Foreign law enforcement agency’ means—
‘‘(A) any agency or judicial authority of a for-
eign government, including a foreign state, a polit-
ical subdivision of a foreign state, or a multinational 
organization constituted by and comprised of foreign 
states, that is vested with law enforcement or inves-
tigative authority in civil, criminal, or administrative 
matters; or 
‘‘(B) any multinational or multiagency organi-
zation to the extent that it is acting on behalf of an 
entity described in subparagraph (A).’’. 
SEC. 3. AVAILABILITY OF REMEDIES. 
Section 5(a) of the Federal Trade Commission Act 
(15 U.S.C. 45(a)) is amended by adding at the end the 
following new paragraph: 
‘‘(4)(A) Unfair or deceptive acts or practices for pur-
poses of this subsection shall include such acts or practices 
involving foreign commerce that—
‘‘(i) cause or are likely to cause reasonably fore-
seeable injury within the United States; or 
‘‘(ii) involve material conduct occurring within 
the United States. 
‘‘(B) All remedies available to the Commission with 
respect to unfair and deceptive acts or practices shall be 
available for acts and practices described in this para-
graph, including restitution to domestic or foreign vic-
tims.’’. 
SEC. 4. POWERS OF THE COMMISSION. 
(a) PUBLICATION OF INFORMATION; REPORTS.—Sec-
tion 6(f) of the Federal Trade Commission Act (15 U.S.C. 
46(f)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘such information’’ 
the first place it appears; and 
(2) by striking ‘‘purposes.’’ and inserting ‘‘pur-
poses, and (2) to any officer or employee of any for-
eign law enforcement agency under the same cir-
cumstances that making material available to foreign 
law enforcement agencies is permitted under section 
21(b)(6).’’. 
(b) OTHER POWERS OF THE COMMISSION.—Section 
6 of the Federal Trade Commission Act (15 U.S.C. 46) 
is further amended by inserting after subsection (i) the 
following new subsections: 
‘‘(j) INVESTIGATIVE ASSISTANCE FOR FOREIGN LAW 
ENFORCEMENT AGENCIES.—
‘‘(1) IN
GENERAL.—Upon a written request 
from a foreign law enforcement agency to provide 
assistance in accordance with this subsection, if the 
requesting agency states that it is investigating, or 
engaging in enforcement proceedings against, pos-
sible violations of laws prohibiting fraudulent or de-
ceptive commercial practices, or other practices sub-
stantially similar to practices prohibited by any pro-
vision of the laws administered by the Commission, 
other than Federal antitrust laws (as defined in sec-
tion 12(5) of the International Antitrust Enforce-
ment Assistance Act of 1994 (15 U.S.C. 6211(5))), 
the Commission may provide the assistance de-
scribed in paragraph (2) without requiring that the 
conduct identified in the request constitute a viola-
tion of the laws of the United States. 
‘‘(2) TYPE OF ASSISTANCE.—In providing as-
sistance to a foreign law enforcement agency under 
this subsection, the Commission may—
‘‘(A) conduct such investigation as the 
Commission deems necessary to collect informa-
tion and evidence pertinent to the request for 
assistance, using all investigative powers au-
thorized by this Act; and 
‘‘(B) when the request is from an agency 
acting to investigate or pursue the enforcement 
of civil laws, or when the Attorney General re-
fers a request to the Commission from an agen-
cy acting to investigate or pursue the enforce-
ment of criminal laws, seek and accept appoint-
corporation, either domestic or foreign, has engaged 
in conduct that may constitute a violation of Federal 
criminal law, the Commission may transmit such 
evidence to the Attorney General, who may institute 
criminal proceedings under appropriate statutes. 
Nothing in this paragraph affects any other author-
ity of the Commission to disclose information. 
‘‘(2) 
INTERNATIONAL
INFORMATION.—The 
Commission shall endeavor to ensure, with respect to 
memoranda of understanding and international 
agreements it may conclude, that material it has ob-
tained from foreign law enforcement agencies acting 
to investigate or pursue the enforcement of foreign 
criminal laws may be used for the purpose of inves-
tigation, prosecution, or prevention of violations of 
United States criminal laws. 
‘‘(l) EXPENDITURES FOR COOPERATIVE ARRANGE-
MENTS.—The Commission may expend appropriated 
funds for—
‘‘(1) operating expenses and other costs of bi-
lateral and multilateral cooperative law enforcement 
groups conducting activities of interest to the Com-
mission and in which the Commission participates; 
and
‘‘(2) expenses for consultations and meetings 
hosted by the Commission with foreign government 
agency officials, members of their delegations, ap-
propriate representatives and staff to exchange views 
concerning developments relating to the Commis-
sion’s mission, development and implementation of 
cooperation agreements, and provision of technical 
assistance for the development of foreign consumer 
protection or competition regimes, such expenses to 
include necessary administrative and logistic ex-
penses and the expenses of Commission staff and 
foreign invitees in attendance at such consultations 
and meetings including—
‘‘(A) such incidental expenses as meals 
taken in the course of such attendance; 
‘‘(B) any travel and transportation to or 
from such meetings; and 
‘‘(C) any other related lodging or subsist-
ence.’’. 
(c) AUTHORIZATION
OF
APPROPRIATIONS.—The 
Federal Trade Commission is authorized to expend appro-
priated funds not to exceed $100,000 per fiscal year for 
purposes of section 6(l) of the Federal Trade Commission 
Act (15 U.S.C. 46(l)) (as amended by this Act), including 
operating expenses and other costs of the following bilat-
eral and multilateral cooperative law enforcement agencies 
and organizations: 
(1) The International Consumer Protection and 
Enforcement Network. 
(2) The International Competition Network. 
(3) The Mexico-U.S.-Canada Health Fraud 
Task Force. 
(4) Project Emptor. 
(5) The Toronto Strategic Partnership and 
other regional partnerships with a nexus in a Cana-
dian province. 
SEC. 5. REPRESENTATION IN FOREIGN LITIGATION. 
Section 16 of the Federal Trade Commission Act (15 
U.S.C. 56) is amended by adding at the end the following 
subsection: 
‘‘(c) FOREIGN LITIGATION.—
‘‘(1) COMMISSION ATTORNEYS.—The Commis-
sion may designate Commission attorneys to assist 
the Attorney General in connection with litigation in 
foreign courts in which the Commission has an in-
terest, pursuant to the terms of a memorandum of 
understanding to be negotiated by the Commission 
and the Attorney General. The preceding sentence is 
in addition to, and not in lieu of any other authority 
vested in the Commission.
‘‘(2) FOREIGN COUNSEL.—The Commission is 
authorized to expend appropriated funds for the re-
tention of foreign counsel for consultation and for 
litigation in foreign courts, and for expenses related 
to consultation and litigation in foreign courts in 
which the Commission has an interest. 
‘‘(3) PAYMENT
OF
CLAIMS.—Nothing in this 
section authorizes the payment of claims or judg-
ments from any source other than the permanent 
and indefinite appropriation authorized by section 
1304 of title 31, United States Code.’’. 
SEC. 6. SHARING INFORMATION WITH FOREIGN LAW EN-
FORCEMENT AGENCIES. 
(a) MATERIAL OBTAINED PURSUANT TO COMPUL-
SORY PROCESS.—Section 21(b)(6) of the Federal Trade 
Commission Act (15 U.S.C. 57b–2(b)(6)) is amended by 
adding at the end the following: ‘‘The custodian may make 
such material available to any foreign law enforcement 
agency upon the prior certification of an appropriate offi-
cial of any such foreign law enforcement agency, either 
by a prior agreement or memorandum of understanding 
with the Commission or by other written certification, that 
such material will be maintained in confidence and will 
be used only for official law enforcement purposes, if—
‘‘(1) the foreign law enforcement agency has set 
forth a bona fide legal basis for its authority to 
maintain the material in confidence; and 
‘‘(2) the materials are to be used for purposes 
of investigating, or engaging in enforcement pro-
ceedings related to, possible violations of—
‘‘(A) foreign laws prohibiting fraudulent or 
deceptive commercial practices or other prac-
tices substantially similar to practices prohib-
ited by any law administered by the Commis-
sion; 
‘‘(B) a law administered by the Commis-
sion, if disclosure of the material would further 
a Commission investigation or enforcement pro-
ceeding; or 
‘‘(C) with the approval of the Attorney 
General, other foreign criminal laws, if such 
foreign criminal laws are offenses defined in or 
covered by a criminal mutual legal assistance 
treaty in force between the government of the 
United States and the foreign law enforcement 
authority’s government. 
Nothing in the preceding sentence authorizes the 
disclosure of material obtained in connection with 
the administration of the Federal antitrust laws or
foreign antitrust laws (as defined in paragraphs (5) 
and (7), respectively, of section 12 of the Inter-
national Antitrust Enforcement Assistance Act of 
1994 (15 U.S.C. 6211)) to any officer or employee 
of a foreign law enforcement agency.’’. 
(b) INFORMATION SUPPLIED BY AND ABOUT FOR-
EIGN SOURCES.—Section 21(f) of the Federal Trade Com-
mission Act (15 U.S.C. 57b–2(f)) is amended to read as 
follows—
‘‘(f) EXEMPTION FROM DISCLOSURE.—
‘‘(1) IN GENERAL.—Any material which is re-
ceived by the Commission in any investigation, a 
purpose of which is to determine whether any person 
may have violated any provision of the laws adminis-
tered by the Commission, and which is provided pur-
suant to any compulsory process under this Act or 
which is provided voluntarily in place of such com-
pulsory process shall be exempt from disclosure 
under section 552 of title 5, United States Code. 
‘‘(2) MATERIAL
OBTAINED
FROM
A
FOREIGN 
SOURCE.—
‘‘(A) Except as provided in subparagraph 
(C) of this paragraph, the Commission shall not 
be compelled to disclose—
‘‘(i) material obtained from a foreign 
law enforcement agency or other foreign 
government agency, if the foreign law en-
forcement agency or other foreign govern-
ment agency has requested confidential 
treatment, or has precluded such disclosure 
under other use limitations, as a condition 
of providing the material; 
‘‘(ii) material reflecting consumer 
complaints obtained from any other foreign 
source, if that foreign source supplying the 
material has requested confidential treat-
ment as a condition of providing the mate-
rial; or 
‘‘(iii) material reflecting a consumer 
complaint submitted to a Commission re-
porting mechanism sponsored in part by 
foreign law enforcement agencies or other 
foreign government agencies. 
‘‘(B) For purposes of section 552 of title 5, 
United States Code, this subsection shall be consid-
ered a statute described in subsection (b)(3)(B) of 
such section. 
‘‘(C) Nothing in this subsection shall authorize 
the Commission to withhold information from the
Congress or prevent the Commission from complying 
with an order of a court of the United States in an 
action commenced by the United States or the Com-
mission.’’. 
SEC. 7. CONFIDENTIALITY, DELAYED NOTICE OF PROCESS. 
(a) CONFIDENTIALITY, DELAYED NOTICE OF COM-
PULSORY PROCESS.—The Federal Trade Commission Act 
(15 U.S.C. 41 et seq.) is amended by inserting after sec-
tion 21 the following new section: 
‘‘SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF 
COMPULSORY PROCESS FOR CERTAIN THIRD 
PARTIES. 
‘‘(a) INTERSECTION WITH OTHER STATUTES.—The 
Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) 
and the Electronic Communications Privacy Act (18 
U.S.C. 2701 et seq.) shall apply with respect to the Com-
mission, except as otherwise provided in this section. 
‘‘(b) IN GENERAL.—The procedures for delay or pro-
hibition of notice under the Right to Financial Privacy Act 
(12 U.S.C. 3401 et seq.) and the Electronic Communica-
tions Privacy Act (18 U.S.C. 2701 et seq.) shall be avail-
able to the Commission—
‘‘(1) where notification is delayed pursuant to 
section 1109(a) of the Right to Financial Privacy 
Act (12 U.S.C. 3409(a)) pursuant to an ex parte ap-
plication by the Commission that there is reason to 
believe that notification may cause an adverse result; 
or 
‘‘(2) where notification is delayed pursuant to 
section 2705(a)(1)(B) of title 18, upon a finding by 
the Commission that there is reason to believe that 
notification may cause an adverse result. 
‘‘(c) EX PARTE APPLICATION BY COMMISSION.—If 
the procedures for delay or prohibition of notice described 
in subsection (b) do not apply, the Commission may apply 
ex parte to a presiding judge or magistrate judge for an 
order commanding the recipient of compulsory process 
issued by the Commission not to notify any other person 
of the existence of the process, notwithstanding any law 
or regulation of the United States, or under the constitu-
tion, or any law or regulation, of any State, political sub-
division of a State, territory of the United States, or the 
District of Columbia. The presiding judge or magistrate 
judge may enter such an order granting the requested 
delay for a period not to exceed 60 days if there is reason 
to believe that notification may cause an adverse result. 
The presiding judge or magistrate judge may grant exten-
sions of this delay of notice of up to 30 days each in ac-
cordance with this subsection, provided that in no event 
shall notice be delayed for more than a total of 9 months.
‘‘(d) NO LIABILITY FOR FAILURE TO NOTIFY.—The 
recipient of compulsory process issued by the Commission 
under this Act shall not be liable under any law or regula-
tion of the United States, or under the constitution, or 
any law or regulation, of any State, political subdivision 
of a State, territory of the United States, or the District 
of Columbia, or under any contract or other legally en-
forceable agreement, for failure to provide notice that such 
process has been issued or that the recipient has provided 
information in response to such process. The preceding 
sentence does not provide any exemption from liability 
for—
‘‘(1) the underlying conduct reported; 
‘‘(2) noncompliance with the record retention 
requirements under section 1104(c) of the Right to 
Financial Privacy Act (12 U.S.C. 3404), where ap-
plicable; or 
‘‘(3) noncompliance with any requirement of a 
Federal agency to disclose information to that agen-
cy. 
‘‘(e) VENUE AND PROCEDURE.—
‘‘(1) IN GENERAL.—All judicial proceedings ini-
tiated by the Commission under the Right to Finan-
cial Privacy Act (12 U.S.C. 3401 et seq.), the Elec-
tronic Communications Privacy Act (18 U.S.C. 2701
et seq.), or this section may be brought in the 
United States District Court for the District of Co-
lumbia or any other appropriate United States Dis-
trict Court. All ex parte applications by the Commis-
sion under this section related to a single investiga-
tion may be brought in a single proceeding. 
‘‘(2) IN CAMERA PROCEEDINGS.—Upon applica-
tion by the Commission, all judicial proceedings pur-
suant to this section shall be held in camera and the 
records thereof sealed until expiration of the period 
of delay or such other date as the presiding judge 
or magistrate judge may permit. 
‘‘(f) SECTION NOT TO APPLY TO ANTITRUST INVES-
TIGATIONS
OR PROCEEDINGS.—This section shall not 
apply to an investigation or proceeding related to the ad-
ministration of Federal antitrust laws or foreign antitrust 
laws (within the meaning of section 6211 of this title). 
‘‘(g) ADVERSE RESULT DEFINED.—For purposes of 
this section the term ‘adverse result’ means—
‘‘(1) the transfer outside the territorial limits of 
the United States of assets or records related to 
fraudulent or deceptive commercial practices or re-
lated to persons involved in such practices; 
‘‘(2) impeding the ability of the Commission to 
identify persons involved in fraudulent or deceptive
commercial practices, or to trace the source or dis-
position of funds related to such practices; 
‘‘(3) endangering the life or physical safety of 
an individual; 
‘‘(4) flight from prosecution; 
‘‘(5) the destruction of, or tampering with, evi-
dence; 
‘‘(6) the intimidation of potential witnesses; 
‘‘(7) the dissipation, fraudulent transfer, or 
concealment of assets subject to recovery by the 
Commission; or 
‘‘(8) otherwise seriously jeopardizing an inves-
tigation or proceeding related to fraudulent or de-
ceptive commercial practices or persons involved in 
such practices, or unduly delaying a trial related to 
such practices or persons involved in such prac-
tices.’’. 
(b) CONFORMING AMENDMENT.—Section 16(a)(2) of 
the Federal Trade Commission Act (15 U.S.C. 56(a)(2)) 
is amended—
(1) in subparagraph (C) by striking ‘‘; or’’ and 
inserting a semicolon; 
(2) in subparagraph (D) by inserting ‘‘and’’ 
after the semicolon; and
(3) by inserting after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) under section 21A of this Act;’’. 
SEC. 8. PROTECTION FOR VOLUNTARY PROVISION OF IN-
FORMATION. 
The Federal Trade Commission Act (15 U.S.C. 41 
et seq.) is further amended by adding after section 21A 
(as added by section 8 of this Act) the following new sec-
tion: 
‘‘SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF 
INFORMATION. 
‘‘(a) IN GENERAL.—An entity described in para-
graphs (2) or (3) of subsection (d) that voluntarily pro-
vides material to the Commission that such entity reason-
ably believes is relevant to—
‘‘(1) a possible unfair or deceptive act or prac-
tice, as defined in section 5(a) of this Act; or 
‘‘(2) assets subject to recovery by the Commis-
sion, including assets located in foreign jurisdictions;
shall not be liable to any person under any law or regula-
tion of the United States, or under the Constitution, or 
any law or regulation of any State, political subdivision 
of a State, territory of the United States, or the District 
of Columbia, for such provision of material or for any fail-
ure to provide notice of such provision of material. Noth-
ing in this subsection shall be construed to provide any 
exemption from liability for the underlying conduct re-
ported. 
‘‘(b) CERTAIN FINANCIAL INSTITUTIONS.—An entity 
described in subsection (d)(1) that voluntarily provides to 
the Commission material relevant to the subjects described 
in paragraphs (1) or (2) of subsection (a) shall be exempt 
from liability in accordance with the provisions of section 
5318(g)(3) of title 31, United States Code. 
‘‘(c) CONSUMER COMPLAINTS.—Any entity described 
in subsection (d) that voluntarily provides consumer com-
plaints sent to it, or information contained therein, to the 
Commission shall not be liable to any person under any 
law or regulation of the United States, or under the con-
stitution, or any law or regulation, of any State, political 
subdivision of a State, territory of the United States, or 
the District of Columbia, for such provision of material 
or for any failure to provide notice of such provision of 
material. The preceding sentence does not provide any ex-
emption from liability for the underlying conduct. 
‘‘(d) APPLICATION.—This section applies to the fol-
lowing entities, whether foreign or domestic: 
‘‘(1) A financial institution as defined in section 
5312 of title 31, United States Code.
‘‘(2) To the extent no included in paragraph (1) 
a bank or thrift institution, a commercial bank or 
trust company, an investment company, a credit 
card issuer, an operator of a credit card system, and 
an issuer, redeemer, or cashier of travelers’ checks, 
money orders, or similar instruments. 
‘‘(3) A courier service, a commercial mail re-
ceiving agency, an industry membership organiza-
tion, a payment system provider, a consumer report-
ing agency, a domain name registrar or registry, and 
a provider of alternative dispute resolution services. 
‘‘(4) An Internet service provider or provider of 
telephone services.’’. 
SEC. 9. STAFF EXCHANGES. 
The Federal Trade Commission Act (15 U.S.C. 41 
et seq.) is amended by adding after section 25 the fol-
lowing new section: 
‘‘SEC. 25A. STAFF EXCHANGES. 
‘‘(a) IN GENERAL.—The Commission may—
‘‘(1) retain or employ officers or employees of 
foreign government agencies on a temporary basis 
pursuant to section 2 of this Act, section 3109 of 
title 5, or section 202 of title 18, United States 
Code; and
‘‘(2) detail officers or employees of the Commis-
sion to work on a temporary basis for appropriate 
foreign government agencies. 
‘‘(b) RECIPROCITY
AND
REIMBURSEMENT.—The 
staff arrangements described in subsections (a) need not 
be reciprocal. The Commission may accept payment or re-
imbursement, in cash or in kind, from a foreign govern-
ment agency to which this section is applicable, or pay-
ment or reimbursement made on behalf of such agency, 
for expenses incurred by the Commission, its members, 
and employees in carrying out such arrangements.’’. 
SEC. 10. INFORMATION SHARING WITH FINANCIAL REGU-
LATORS. 
Section 1112(e) of the Right to Financial Privacy Act 
(12 U.S.C. 3412(e)) is amended by adding ‘‘the Federal 
Trade Commission,’’ after ‘‘the Securities and Exchange 
Commission,’’. 
SEC. 11. REPORT. 
Not later than 3 years after the date of enactment 
of this Act, the Federal Trade Commission shall transmit 
to Congress a report describing its use of and experience 
with the authority granted by this Act, along with any rec-
ommendations for additional legislation. The report shall 
include—
(1) the number of cross-border complaints re-
ceived by the Commission; 
(2) identification of the foreign agencies to 
which the Commission has provided nonpublic inves-
tigative information under this Act; 
(3) the number of times the Commission has 
used compulsory process on behalf of foreign law en-
forcement agencies pursuant to section 5 of this Act; 
(4) a list of international agreements and 
memoranda of understanding executed by the Com-
mission that relate to this Act; 
(5) the number of times the Commission has 
sought delay of notice pursuant pursuant to section 
8 of this Act; 
(6) a description of the types of information 
private entities have provided voluntarily pursuant to 
section 9 of this Act; 
(7) a description of the results of cooperation 
with foreign law enforcement agencies under this 
Act; and 
(8) an analysis of whether the lack of an ex-
emption from the disclosure requirements of section 
552 of title 5, United States Code, with regard to 
information or material voluntarily provided relevant 
to possible unfair or deceptive acts or practices, has
hindered the Commission in investigating or engag-
ing in enforcement proceedings against such prac-
tices.
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