I 
115TH CONGRESS 
2D SESSION 
H. R. 5165 
To prohibit entities from requiring individuals to submit to arbitration for 
disputes arising from a security breach, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2018 
Mr. TED LIEU of California introduced the following bill; which was referred 
to the Committee on Energy and Commerce 
A BILL 
To prohibit entities from requiring individuals to submit to 
arbitration for disputes arising from a security breach, 
and for other purposes. 
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 cited as the ‘‘Ending Forced Arbi-
tration for Victims of Data Breaches Act of 2018’’. 
SEC. 2. PROTECTION OF DATA SECURITY BREACH VICTIMS. 
An entity may not require, as part of a customer or 
other similar agreement, an individual to agree to submit 
any dispute related to a security breach, including any dis-
pute related to identity theft, to arbitration. 
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SEC. 3. APPLICABILITY. 
A provision of an agreement entered into prior to the 
date of the enactment of this Act, that violates section 
2, is void. 
SEC. 4. ENFORCEMENT BY THE FEDERAL TRADE COMMIS-
SION. 
(a) UNFAIR OR DECEPTIVE ACTS OR PRACTICES.— 
A violation of section 2 shall be treated as an unfair and 
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 section 2 shall be subject to the penalties and 
entitled to the privileges and immunities provided in that 
Act. 
(c) RULES.—The Commission shall promulgate, 
under section 553 of title 5, United States Code, such 
rules as may be necessary to carry out the provisions of 
this Act. 
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SEC. 5. ENFORCEMENT BY STATES. 
(a) IN GENERAL.—If the attorney general of a State 
has reason to believe that an interest of the residents of 
the State has been or is being threatened or adversely af-
fected by a practice that violates section 2, the attorney 
general of the State may, as parens patriae, bring a civil 
action on behalf of the residents of the State in an appro-
priate district court of the United States to obtain appro-
priate relief. 
(b) RIGHTS OF FEDERAL TRADE COMMISSION.— 
(1) NOTICE
TO
FEDERAL
TRADE
COMMIS-
SION.— 
(A) IN GENERAL.—Except as provided in 
clause (iii), the attorney general of a State, be-
fore initiating a civil action under paragraph 
(1), shall provide written notification to the 
Federal Trade Commission that the attorney 
general intends to bring such civil action. 
(B) CONTENTS.—The notification required 
under clause (i) shall include a copy of the com-
plaint to be filed to initiate the civil action. 
(C) EXCEPTION.—If it is not feasible for 
the attorney general of a State to provide the 
notification required under clause (i) before ini-
tiating a civil action under paragraph (1), the 
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attorney general shall notify the Commission 
immediately upon instituting the civil action. 
(2) INTERVENTION BY FEDERAL TRADE COM-
MISSION.—The Commission may— 
(A) intervene in any civil action brought by 
the attorney general of a State under para-
graph (1); and 
(B) upon intervening— 
(i) be heard on all matters arising in 
the civil action; and 
(ii) file petitions for appeal of a deci-
sion in the civil action. 
(c) INVESTIGATORY POWERS.—Nothing in this sub-
section may be construed to prevent the attorney general 
of a State from exercising the powers conferred on the 
attorney general by the laws of the State to conduct inves-
tigations, to administer oaths or affirmations, or to compel 
the attendance of witnesses or the production of documen-
tary or other evidence. 
(d) PREEMPTIVE ACTION BY FEDERAL TRADE COM-
MISSION.—If the Federal Trade Commission institutes a 
civil action or an administrative action with respect to a 
violation of section 2, the attorney general of a State may 
not, during the pendency of such action, bring a civil ac-
tion under paragraph (1) against any defendant named 
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