I
106TH CONGRESS
2D SESSION
H. R. 5620
To require operators of electronic marketplaces to disclose the ownership
and management of such marketplaces to market participants, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 1, 2000
Mrs. MALONEY of New York introduced the following bill; which was referred
to the Committee on Commerce
A BILL
To require operators of electronic marketplaces to disclose
the ownership and management of such marketplaces
to market participants, 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 ‘‘Electronic Marketplace
Ownership Disclosure Act’’.
SEC. 2. FEDERAL TRADE COMMISSION REGULATIONS.
(a) DISCLOSURE REQUIRED.—The Commission shall
prescribe rules in accordance with this section to prohibit
unfair and deceptive acts and practices in the operation
of an electronic marketplace by requiring the operator of
such market to disclose—
(1) the identity of—
(A) the entities that have a controlling eq-
uity stake in such marketplaces;
(B) the corporate parents of any subsidi-
aries or affiliates with a controlling equity stake
in such marketplaces; and
(C) the names of the directors and officers
of each such entity, parent, subsidiary, or affil-
iate;
(2) the extent to which the controlling equity
holders, or any subsidiary or affiliate, is or intends
to become a trading participant in such a market-
place; and
(3) the percentage of the marketplace’s oper-
ating expenses and overhead that are paid by the
controlling equity stakeholder.
(b) RULEMAKING.—
(1) IN GENERAL.—The Commission shall pre-
scribe the rules under subsection (a) within 270
days after the date of enactment of this Act. Such
rules shall be prescribed in accordance with section
553 of title 5, United States Code.
(2) ACCESS
VIA
THE
INTERNET.—The rules
prescribed by the Commission under subsection (a)
shall require that the information required to be dis-
closed under such subsection be readily accessible to
the public through the Internet.
(c) ENFORCEMENT.—Any violation of any rule pre-
scribed under subsection (a) shall be treated as a violation
of a rule respecting unfair or deceptive acts or practices
under section 5 of the Federal Trade Commission Act (15
U.S.C. 45). Notwithstanding section 5(a)(2) of such Act
(15 U.S.C. 45(a)(2)), communications common carriers
shall be subject to the jurisdiction of the Commission for
purposes of this Act.
(d) ACTIONS BY THE COMMISSION.—The Commis-
sion shall prevent any person from violating a rule of the
Commission under this section 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 Federal Trade Commission Act (15 U.S.C. 41 et
seq.) were incorporated into and made a part of this Act.
Any person who violates such rule shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act in the
same manner, by the same means, and with the same ju-
risdiction, power, and duties as though all applicable terms
and provisions of the Federal Trade Commission Act were
incorporated into and made a part of this Act.
SEC. 3. DEFINITIONS.
As used in this Act:
(1) COMMISSION.—The term ‘‘Commission’’
means the Federal Trade Commission.
(2) ELECTRONIC
MARKETPLACE.—The term
‘‘electronic marketplace’’ means an entity or group
of entities using electronic means to trade goods or
services, including online Internet exchanges and
electronic communications networks (‘‘ECN’s’’).
(3) INTERNET EXCHANGE.—The term ‘‘Inter-
net exchange’’ means an electronic marketplace con-
ducted over the combination of computer facilities
and electromagnetic transmission media, and related
equipment and software, comprising the inter-
connected worldwide network of computer networks
that employ the Transmission Control Protocol/
Internet Protocol or any successor protocol to trans-
mit information, commonly known as the ‘‘Internet’’.
(4) 
ELECTRONIC
COMMUNICATIONS
NET-
WORKS.—The term ‘‘electronic communications net-
works (‘‘ECN’s’’) means computerized systems that
automatically match orders between buyers and sell-
ers.
(5) SUBSIDIARY
OR
AFFILIATE.—The term
‘‘subsidiary or affiliate’’ means any company that
controls, is controlled by, or is under common con-
trol with another company.
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