‘‘(f) CIVIL MONEY PENALTIES.—
‘‘(1) IN GENERAL.—Any person who the Com-
missioner of Social Security determines has violated 
this section shall be subject, in addition to any other 
penalties that may be prescribed by law, to—
‘‘(A) a civil money penalty of not more 
than $25,000 for each such violation, and 
‘‘(B) a civil money penalty of not more 
than $500,000, if violations have occurred with 
such frequency as to constitute a general busi-
ness practice. 
‘‘(2) DETERMINATION
OF
VIOLATIONS.—Any 
violation committed contemporaneously with respect 
to the social security account numbers of 2 or more 
individuals by means of mail, telecommunication, or 
otherwise shall be treated as a separate violation 
with respect to each such individual. 
‘‘(3) ENFORCEMENT PROCEDURES.—The provi-
sions of section 1128A (other than subsections (a), 
(b), (f), (h), (i), (j), and (m), and the first sentence 
of subsection (c)) and the provisions of subsections 
(d) and (e) of section 205 shall apply to civil money 
penalties under this subsection in the same manner 
as such provisions apply to a penalty or proceeding 
under section 1128A(a), except that, for purposes of
this paragraph, any reference in section 1128A to 
the Secretary shall be deemed a reference to the 
Commissioner of Social Security. 
‘‘(4) COORDINATION WITH CRIMINAL ENFORCE-
MENT.—The Commissioner of Social Security shall 
take such actions as are necessary and appropriate 
to assure proper coordination of the enforcement of 
the provisions of this section with criminal enforce-
ment under section 1028 of title 18, United States 
Code (relating to fraud and related activity in con-
nection with identification documents). The Commis-
sioner shall enter into cooperative arrangements with 
the Federal Trade Commission under section 5 of 
the Identity Theft and Assumption Deterrence Act 
of 1998 for purposes of achieving such coordination. 
‘‘(g) REGULATION BY STATES.—Nothing in this sec-
tion shall be construed to prohibit any State authority 
from enacting or enforcing laws consistent with this sec-
tion for the protection of privacy.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) applies with respect to violations occurring 
on and after the date which is 2 years after the date of 
enactment of this Act. 
(c) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—Any 
person who refuses to do business with an individual be-
cause the individual will not consent to that person receiv-
ing the social security number of such individual shall be 
considered to have committed an unfair or deceptive act 
or practice in violation of section 5 of the Federal Trade 
Commission Act (15 U.S.C. 45). Action may be taken 
under such section 5 against such a person.
SEC. 4. REPEAL OF CERTAIN PROVISIONS RELATING TO 
DISTRIBUTION OF CONSUMER REPORTS IN 
CONNECTION WITH CERTAIN TRANSACTIONS 
NOT INITIATED BY THE CONSUMER. 
(a) IN GENERAL.—Paragraph (1) of section 604(c) 
of the Fair Credit Reporting Act (15 U.S.C. 1681b(c)) 
is amended by striking ‘‘any credit or insurance trans-
action that is not initiated by the consumer only if—’’ and 
all that follows through the end of such paragraph and 
inserting ‘‘any credit or insurance transaction that is not 
initiated by the consumer only if the consumer provides 
express written authorization, in accordance with para-
graph (2), to the agency to provide such report in connec-
tion with any such transaction.’’
(b) FULL DISCLOSURE REQUIRED.—Paragraph (2) 
of section 604(c) of the Fair Credit Reporting Act (15 
U.S.C. 1681b(c)) is amended to read as follows: 
‘‘(2) FULL DISCLOSURE REQUIRED.—
‘‘(A) IN GENERAL.—No authorization re-
ferred to in paragraph (1) with respect to any 
consumer shall be effective unless the consumer 
receives a notice before such authorization is 
provided which fully and fairly discloses, in ac-
cordance with regulations which the Federal 
Trade Commission and the Board of Governors 
of the Federal Reserve System shall jointly pre-
scribe, what specifically is being authorized by 
the consumer and the potential positive and 
negative effects the provision of such authoriza-
tion will have on the consumer. 
‘‘(B) FORM OF NOTICE.—The regulations 
prescribed pursuant to subparagraph (A) shall 
require that the notice required under such sub-
paragraph—
‘‘(i) be prominently displayed on a 
document which is separate from any other 
document; or 
‘‘(ii) if the notice appears on a docu-
ment with other information, be placed in 
a clear and conspicuous location on such 
document and appear in type face which is 
more conspicuous than the type face used
for any other information on such docu-
ment.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Subsection (e) of section 604 of the Fair Credit Reporting 
Act (15 U.S.C. 1681b) is amended to read as follows: 
‘‘(e) [Repealed]’’. 
SEC. 5. SALE OR TRANSFER OF TRANSACTION OR EXPERI-
ENCE INFORMATION PROHIBITED. 
(a) IN GENERAL.—The Fair Credit Reporting Act 
(15 U.S.C. 1681 et seq.) is amended by adding at the end 
the following new section: 
‘‘§ 627. Transaction or experience information 
‘‘(a) IN GENERAL.—No person doing business with 
a consumer may sell, transfer, or otherwise provide to any 
other person, for the purpose of marketing such informa-
tion to any other person, any transaction or experience 
information without the consumer’s express written con-
sent. 
‘‘(b) TRANSACTION OR EXPERIENCE INFORMATION 
DEFINED.—For purposes of this section, the term ‘trans-
action or experience information’ means any information 
identifying the content or subject of 1 or more trans-
actions between the consumer and a person doing business 
with a consumer, including any component part of any 
transaction, any brand name involved, or any quantity or
category of merchandise involved in any part of the trans-
action. 
‘‘(c) EXCEPTIONS.—Subsection (a) shall not apply 
with respect to the following: 
‘‘(1) Communication of transaction or experi-
ence information solely among persons related by 
common ownership or affiliated by corporate control. 
‘‘(2) Information provided pursuant to the 
order of a court having jurisdiction to issue such 
order or pursuant to a subpoena issued in connec-
tion with proceedings before a Federal grand jury. 
‘‘(3) Information provided in connection with 
the licensing or registration by a government agency 
or department, or any transfer of such license or 
registration, of any personal property bought, sold, 
or transferred by the consumer. 
‘‘(4) Information required to be provided in 
connection with any transaction in real estate. 
‘‘(5) Information required to be provided in 
connection with perfecting a security interest in per-
sonal property. 
‘‘(6) Information relating to the amount of any 
transaction or any credit extended in connection 
with a transaction with a consumer.’’.
(b) TECHNICAL AND CONFORMING AMENDMENT.—
Section 603(d)(2)(A) is amended by striking ‘‘(A)
any—’’ and inserting ‘‘(A) subject to section 627,
any—’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for the Fair Credit Reporting Act is amended by adding 
at the end the following new item:
‘‘627. Transaction or experience information.’’.
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