Labor for expenses incurred in the review and re-
sponse of the Commission under this subsection.
(4) APPLICABILITY.—The regulations issued
under paragraph (1) shall apply to any label con-
tained in—
(A) an article or section of wearing apparel
or sporting good that is exported from or of-
fered for sale in the United States; or
(B) any packaging thereof.
(b) VIOLATION OF SECTION 5 OF THE FEDERAL
TRADE COMMISSION ACT.—It is a violation of section 5
of the Federal Trade Commission Act for any producer,
importer, exporter, distributor, or seller of any article of
wearing apparel (or section of an article of wearing ap-
parel) or sporting good that is exported from or offered
for sale in the United States—
(1) to falsely indicate on the label of that article
(or section) or sporting good or the packaging of the
article (or section) or sporting good that the article
(or section) or sporting good was not made with
child labor; or
(2) to otherwise falsely claim or suggest that
the article (or section) or sporting good was not
made with child labor.
(c) AMENDMENT TO THE FEDERAL TRADE COMMIS-
SION ACT.—Section 5(m)(1) of the Federal Trade Com-
mission Act (15 U.S.C. 45(m)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘The
Commission’’ and inserting ‘‘Except as provided in
subparagraph (D), the Commission’’;
(2) in subparagraph (B), by striking ‘‘If the
Commission’’ and inserting ‘‘Except as provided in
subparagraph (D), if the Commission’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D)(i) In lieu of the applicable civil penalty under
subparagraph (A) or (B), in any case in which the Com-
mission commences a civil action for a violation of section
101 of the Child Labor Free Consumer Information Act
of 1996 under subparagraph (A) or under subparagraph
(B) for an unfair or deceptive practice that is considered
to be a violation of this section by reason of section 101(b)
of such Act, if that violation is a knowing or willful viola-
tion, the amount of a civil penalty for the violation shall
be determined under clause (ii).
‘‘(ii) The amount of a civil penalty for a violation
under clause (i) that is committed shall be—
‘‘(I) for an initial violation, an amount equal to
the greater of—
‘‘(aa) 2 times the retail value of the arti-
cles of wearing apparel or sporting goods mis-
labeled; or
‘‘(bb) $200,000; and
‘‘(II) for any subsequent violation, an amount
equal to the greater of—
‘‘(aa) 4 times the retail value of the arti-
cles of wearing apparel or sporting goods mis-
labeled; or
‘‘(bb) $400,000.’’.
(d) SPECIAL FUND TO ASSIST CHILDREN.—
(1) CREATION OF FUND.—There is established
in the United States Treasury a special fund to be
known as the Free the Children Fund.
(2) DEPOSITS INTO FUND.—An amount equal
to the amount of penalties collected under this sec-
tion shall be deposited into the special fund. The
Secretary of the Treasury shall, upon request of the
Secretary of the Labor, make the amounts deposited
into the special fund available to the Secretary of
Labor for use by the Secretary of Labor for edu-
cational and other programs described in paragraph
(3).
(3) AUTHORIZATION.—Amounts deposited into
the special fund are authorized to be appropriated
annually for educational and other programs with
the goal of eliminating child labor.
SEC. 102. REVIEW OF PETITIONS BY THE CHILD LABOR
FREE COMMISSION.
(a) IN GENERAL.—In addition to the procedures es-
tablished under section 5 of the Federal Trade Commis-
sion Act, the Child Labor Free Commission established
under section 201 shall assist the Federal Trade Commis-
sion by reviewing petitions under this section.
(b) CONTENTS OF PETITIONS.—A petition under this
section shall—
(1) be submitted in such form, and in such
manner as the Federal Trade Commission, in con-
sultation with the Child Labor Free Commission,
shall prescribe;
(2) contain the name of the—
(A) petitioner; and
(B) person or entity involved in the alleged
violation of the labeling standards under section
101; and
(3) provide a detailed explanation of the alleged
violation, including all available evidence.
(c) REVIEW
BY
COMMISSION.—The Commission
shall—
(1) to the maximum extent practicable, not
later than 90 days after receiving a petition, review
the petition to determine whether there appears to
have been a violation of the labeling standards; and
(2) upon completion of that review, forward
that petition to the Federal Trade Commission, to-
gether with a report by the Child Labor Free Com-
mission containing a determination by the Child
Labor Free Commission whether—
(A) it is appropriate for the Federal Trade
Commission, in consultation with the Secretary
of Labor, to take such action as may be nec-
essary under the Federal Trade Commission
Act to cause the person or entity in violation of
the labeling standards under section 101 to
cease and desist from violating those standards;
and
(B) there appears to have been a willful or
repeated violation of the labeling standards.
SEC. 103. COOPERATION BY THE SECRETARY OF COM-
MERCE.
(a) IN GENERAL.—If, in the course of an investiga-
tion conducted by the Secretary of Commerce, the Sec-
retary of Commerce discovers a violation of the require-