In the Senate of the United States,
September 22 (legislative day, September 7), 1993.
Resolved, That the bill from the House of Representa-
tives (H.R. 2243) entitled ‘‘An Act to to amend the Federal
Trade Commission Act to extend the authorization of appro-
priations in such Act, and for other purposes’’, do pass with
the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION. 1. SHORT TITLE.
This Act may be cited as the ‘‘Federal Trade Commis-
sion Act Amendments of 1993’’.
SEC. 2. UNFAIR METHODS OF COMPETITION.
Section 5 of the Federal Trade Commission Act (15
U.S.C. 45) is amended by adding at the end the following
new subsection:
‘‘(n) The Commission shall not have any authority to
find a method of competition to be an unfair method of
competition under subsection (a)(1) if, in any action under
the Sherman Act (15 U.S.C. 1 et seq.), such method of com-
petition would be held to constitute State action.’’.
SEC. 3. AGRICULTURAL COOPERATIVES.
The Federal Trade Commission Act (15 U.S.C. 41 et
seq.) is amended by redesignating sections 24 and 25 as
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sections 26 and 27, respectively, and by inserting imme-
diately after section 23 the following new section:
‘‘SEC. 24. (a) The Commission shall not have any au-
thority to conduct any study, investigation, or prosecution
of any agricultural cooperative for any conduct which, be-
cause of the provisions of the Act entitled ‘An Act to author-
ize association of producers of agricultural products’, ap-
proved February 18, 1922 (7 U.S.C. 291 et seq., commonly
known as the Capper-Volstead Act), is not a violation of
any of the antitrust Acts or this Act.
‘‘(b) The Commission shall not have any authority to
conduct any study or investigation of any agricultural
marketing orders.’’.
SEC. 4. COMPENSATION IN PROCEEDINGS.
(a) REPEAL.—Section 18(h) of the Federal Trade
Commission Act (15 U.S.C. 57a(h)) is repealed, and sub-
sections (i), (j), and (k) of section 18 are redesignated as
subsections (h), (i), and (j), respectively.
(b) CONFORMING AMENDMENT.—Section 18(a)(1) of
the Federal Trade Commission Act (15 U.S.C. 57a(a)(1))
is amended by striking ‘’subsection (i)’’ and inserting in
lieu thereof ‘‘subsection (h)’’.
SEC. 5. KNOWING VIOLATIONS OF ORDERS.
(a) EXCEPTION
FOR
CONSENT
ORDERS.—Section
5(m)(1)(B) of the Federal Trade Commission Act (15
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U.S.C. 45(m)(1)(B)) is amended by inserting ‘‘, other than
a consent order,’’ immediately after ‘‘order’’ the first time
it appears.
(b) REVIEW OF DETERMINATIONS OF LAW.—Section
5(m)(2) of the Federal Trade Commission Act (15 U.S.C.
45(m)(2)) is amended by adding at the end of the following:
‘‘Upon request of any party to such an action against such
defendant, the court shall also review the determination of
law made by the Commission in the proceeding under sub-
section (b) that the act or practice which was the subject
of such proceeding constituted an unfair or deceptive act
or practice in violation of subsection (a).’’.
SEC. 6. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES.
Section 18(b) of the Federal Trade Commission Act
(15 U.S.C. 57a(b)) is amended by adding at the end the
following new paragraph:
‘‘(3) The Commission shall issue a notice of proposed
rulemaking pursuant to paragraph (1)(A) only where it has
reason to believe that the unfair or deceptive acts or prac-
tices which are the subject of the proposed rulemaking are
prevalent. The Commission shall make a determination that
unfair or deceptive acts or practices are prevalent under
this paragraph only if it has issued cease and desist orders
regarding such acts or practices, or any other information
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available to the Commission indicates a pattern of unfair
or deceptive acts or practices.’’.
SEC. 7. EFFECTIVE DATE OF ORDERS.
(a) ORDERS SUBJECT TO PETITION FOR REVIEW.—
Section 5(g)(2) of the Federal Trade Commission Act (15
U.S.C. 45(g)(2)) is amended to read as follows:
‘‘(2) Except as to any order provision subject to
paragraph (4), upon the sixtieth day after such order
is served, if a petition for review has been duly filed;
except that any such order may be stayed, in whole
or in part and subject to such conditions as may be
appropriate, by—
‘‘(A) the Commission;
‘‘(B) an appropriate court of appeals of the
United States, if (i) a petition for review of such
order is pending in such court, and (ii) an ap-
plication for such a stay was previously submit-
ted to the Commission and the Commission,
within the thirty-day period beginning on the
date the application was received by the Com-
mission, either denied the application or did not
grant or deny the application; or
‘‘(C) the Supreme Court, if an applicable
petition for certiorari is pending; or’’.
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(b) ORDERS SUBJECT TO SECTIONS 5(m)(1)(B) AND
19(a)(2) OF FTCA.—Section 5(g)(3) of the Federal Trade
Commission Act (15 U.S.C. 45(g)(3)) is amended to read
as follows:
‘‘(3) For purposes of subsection (m)(1)(B) and of
section 19 (a)(2), if a petition for review of the order
of the Commission has been filed—
‘‘(A) upon the expiration of the time al-
lowed for filing a petition for certiorari, if the
order of the Commission has been affirmed or the
petition for review has been dismissed by the
court of appeals and no petition for certiorari
has been duly filed;
‘‘(B) upon the denial of a petition for cer-
tiorari, if the order of the Commission has been
affirmed or the petition for review has been dis-
missed by the court of appeals; or
‘‘(C) upon the expiration of thirty days
from the date of issuance of a mandate of the Su-
preme Court directing that the order of the Com-
mission be affirmed or the petition for review be
dismissed; or’’.
(c) DIVESTITURE ORDERS.—Section 5(g)(4) of the
Federal Trade Commission Act (15 U.S.C. 45(g)(4)) is
amended to read as follows:
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‘‘(4) In the case of an order provision requiring
a person, partnership, or corporation to divest itself
of stock, other share capital, or assets, if a petition for
review of such order of the Commission has been
filed—
‘‘(A) upon the expiration of the time al-
lowed for filing a petition for certiorari, if the
order of the Commission has been affirmed or the
petition for review has been dismissed by the
court of appeals and no petition for certiorari
has been duly filed;
‘‘(B) upon the denial of a petition for cer-
tiorari, if the order of the Commission has been
affirmed or the petition for review has been dis-
missed by the court of appeals; or
‘‘(C) upon the expiration of thirty days
from the date of issuance of a mandate of the Su-
preme Court directing that the order of the Com-
mission be affirmed or the petition for review be
dismissed.’’.
SEC. 8. CIVIL INVESTIGATIVE DEMANDS.
(a) DEFINITIONS.—Section 20(a) of the Federal Trade
Commission Act (15 U.S.C. 57b–1(a)) is amended—
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(1) in paragraph (2), by inserting ‘‘, or in any
antitrust violations’’ immediately after ‘‘section
5(a)(1))’’;
(2) in paragraph (3), by inserting ‘‘or any pro-
visions relating to antitrust violations’’ immediately
after ‘‘section 5(a)(1))’’;
(3) in paragraph (7), by inserting ‘‘, or any
antitrust 
violation’’ 
immediately 
after 
‘‘section
5(a)(1))’’; and
(4) by adding at the end the following new para-
graph:
‘‘(8) The term ‘antitrust violation’ means any
unfair method of competition (within the meaning of
section 5(a)(1)); any violation of the Clayton Act; any
violation of any other Federal statute that prohibits,
or makes available to the Commission a civil remedy
with respect to, any restraint upon or monopolization
of interstate or foreign trade or commerce; or any ac-
tivity in preparation for a merger, acquisition, joint
venture, or similar transaction, which if con-
summated, may result in such an unfair method of
competition or violation.’’.
(b) ISSUANCE OF DEMAND.—(1) Section 20 (c)(1) of
the Federal Trade Commission Act (15 U.S.C. 57b–1 (c)(1))
is amended—
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(A) by inserting ‘‘or tangible things’’ imme-
diately after ‘‘documentary material’’ the first place
it appears;
(B) by inserting ‘‘or to antitrust violations,’’ im-
mediately after ‘‘section 5 (a)(1)) ,’’; and
(C) by inserting ‘‘to submit such tangible
things,’’ immediately after ‘‘copying or reproduc-
tion,’’.
(2) Section 20(c) of the Federal Trade Commission Act
(15 U.S.C. 57b–1 (c)) is amended—
(A) by redesignating paragraphs (4), (5), (6),
(7), (8), (9), (10), (11), and (12) as paragraphs (5),
(6), (7), (8), (9), (10), (11), (13), and (14), respec-
tively;
(B) by inserting immediately after paragraph
(3) the following new paragraph:
‘‘(4) Each civil investigative demand for the submis-
sion of tangible things shall—
‘‘(A) describe each class of tangible things to be
submitted under the demand with such definiteness
and certainty as to permit such things to be fairly
identified;
‘‘(B) prescribe a return date or dates which will
provide a reasonable period of time within which the
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things so demanded may be assembled and submitted;
and
‘‘(C) identify the custodian to whom such things
shall be submitted.’’; and
(C) by inserting immediately after paragraph
(11), as so redesignated, the following new paragraph:
‘‘(12) The submission of tangible things in response to
a civil investigative demand shall be made under a sworn
certificate, in such form as the demand designates, by the
person to whom the demand is directed or, if not a natural
person, by any person having knowledge of the facts and
circumstances relating to such production, to the effect that
all of the physical evidence required by the demand and
in the possession, custody, or control of the person to whom
the demand is directed has been submitted to the custo-
dian.’’.
(c) APPLICABILITY OF SECTION 20 OF FTCA.—Section
20(j)(1) of the Federal Trade Commission Act (15 U.S.C.
57b–1(j)(1)) is amended by inserting immediately before the
semicolon the following: ‘‘, any proceeding under section
11(b) of the Clayton Act (15 U.S.C. 21(b)), or any adjudica-
tive proceeding under any other provision of law’’.
SEC. 9. COMMISSION CUSTODY OF TANGIBLE THINGS.
Section 21 of the Federal Trade Commission Act (15
U.S.C. 57b–2) is amended—
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(1) in subsection (a)(1), by inserting ‘‘tangible
things,’’ immediately after ‘‘documentary material,’’;
(2) in subsection (b)(1), by inserting ‘‘, tangible
thing,’’ immediately after ‘‘document’’;
(3) in subsection (b)(2)(A), by inserting ‘‘tan-
gible things,’’ immediately after ‘‘material,’’;
(4) in subsection (b)(3)—
(A) in subparagraph (A), by inserting ‘‘tan-
gible things,’’ immediately after ‘‘documentary
material,’’;
(B) in subparagraph (B), by inserting ‘‘,
and may make tangible things available,’’ imme-
diately after ‘‘oral testimony’’; and by inserting
‘‘, things,’’ immediately after ‘‘such material’’;
(C) in subparagraph (C), by inserting ‘‘tan-
gible things,’’ immediately after ‘‘documentary
material,’’; and
(D) in subparagraph (D), by inserting ‘‘,
tangible things,’’ immediately after ‘‘documen-
tary material’’;
(5) in subsection (b)(4), by inserting ‘‘tangible
things,’’ immediately after ‘‘documentary material,’’;
(6) in subsection (b)(5), by inserting ‘‘tangible
things,’’ immediately after ‘‘documentary material,’’;
(7) in subsection (b)(6)—
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(A) by inserting immediately after the first
sentence the following new sentence: ‘‘The custo-
dian of any tangible things may make such
things available for inspection to such persons on
the same basis.’’; and
(B) by inserting ‘‘results of inspections of
tangible things,’’ immediately after ‘‘Such docu-
mentary material,’’; and
(8) in subsection (b)(7), by inserting ‘‘tangible
things,’’ immediately after ‘‘documentary material,’’.
SEC. 10. DEFINITION OF UNFAIR ACTS OR PRACTICES.
Section 5 of the Federal Trade Commission Act (15
U.S.C. 45), as amended by section 2 of this Act, is further
amended by adding at the end the following new subsection:
‘‘(o) The Commission shall have no authority under
this section or section 18 to declare unlawful an act or prac-
tice on the grounds that such act or practice is unfair unless
the act or practice causes or is likely to cause substantial
injury to consumers which is not reasonably avoidable by
consumers themselves and not outweighed by countervailing
benefits to consumers or to competition.’’.
SEC. 11. COMMERCIAL ADVERTISING.
Section 18(h) of the Federal Trade Commission Act
(15 U.S.C. 57a(h)), as so redesignated in section 4(a) of
this Act, is amended by adding at the end the following:
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‘‘The Commission shall have no authority under this section
to initiate any new rulemaking proceeding which is in-
tended to or may result in the promulgation of any rule
by the Commission which prohibits or otherwise regulates
any commercial advertising on the basis of a determination
by the Commission that such commercial advertising con-
stitutes an unfair act or practice in or affecting
commerce.’’.
SEC. 12. VENUE AND SERVICE OF PROCESS.
(a) AUTHORITY TO SERVE CERTAIN PERSONS.—(1)
Section 13(a) of the Federal Trade Commission Act (15
U.S.C. 53(a)) is amended by striking the last sentence and
inserting in lieu thereof the following: ‘‘Any suit may be
brought where such person, partnership, or corporation re-
sides or transacts business, or wherever venue is proper
under section 1391 of title 28, United States Code. In such
a suit, the court may, if the court determines that the inter-
ests of justice require that any other person, partnership,
or corporation should be a party in such suit, cause such
other person, partnership, or corporation to be summoned
without regard to whether it resides or transacts business
in the district in which the suit is brought. In any suit
under this section, process may be served on any person,
partnership, or corporation wherever it may be found.’’.
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(2) Section 13(b) of the Federal Trade Commission Act
(15 U.S.C. 53(b)) is amended by striking the last sentence
and inserting in lieu thereof the following: ‘‘Any suit may
be brought where such person, partnership, or corporation
resides or transacts business, or wherever venue is proper
under section 1391 of title 28, United States Code. In such
a suit, the court may, if the court determines that the inter-
ests of justice require that any other person, partnership,
or corporation should be a party in such suit, cause such
other person, partnership, or corporation to be summoned
without regard to whether it resides or transacts business
in the district in which the suit is brought. In any suit
under this section, process may be served on any person,
partnership, or corporation wherever it may be found.’’.
(b) PROCEDURES FOR SERVING PROCESS.—Section 13
of the Federal Trade Commission Act (15 U.S.C. 53) is
amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting immediately after subsection (b)
the following new subsection:
‘‘(c) Any process of the Commission under this section
may be served by any person duly authorized by the Com-
mission—
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‘‘(1) by delivering a copy of such process to the
person to be served, to a member of the partnership
to be served, or to the president, secretary, or other ex-
ecutive officer or a director of the corporation to be
served;
‘‘(2) by leaving a copy of such process at the res-
idence or the principal office or place of business of
such person, partnership, or corporation; or
‘‘(3) by mailing a copy of such process by reg-
istered mail or certified mail addressed to such per-
son, partnership, or corporation at his, or her, or its
residence, principal office, or principal place or busi-
ness.
The verified return by the person serving such process set-
ting forth the manner of such service shall be proof of the
same.’’.
SEC. 13. REPORT ON RESALE PRICE MAINTENANCE.
(a) REPORT TO CONGRESS.—The Federal Trade Com-
mission shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and to the Com-
mittee on Energy and Commerce of the House of Represent-
atives the information specified in subsection (b) every six
months during each of the fiscal years 1994, 1995, and
1996. Each such report shall contain such information for
the period since the last submission under this section.
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(b) CONTENTS OF REPORT.—Each such report shall
list and describe, with respect to instances in which resale
price maintenance has been suspected or alleged—
(1) each complaint made, orally or in writing,
to the offices of the Commission;
(2) each preliminary investigation opened or
closed at the Commission;
(3) each formal investigation opened or closed at
the Commission;
(4) each recommendation for the issuance of a
complaint forwarded by the staff to the Commission;
(5) each complaint issued by the Commission
pursuant to section 5 of the Federal Trade Commis-
sion Act (15 U.S.C. 45);
(6) each opinion and order entered by the Com-
mission;
(7) each consent agreement accepted provision-
ally or finally by the Commission;
(8) each request for modification of an outstand-
ing Commission order filed with the Commission;
(9) each recommendation by staff pertaining to
a request for modification of an outstanding Commis-
sion order; and
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(10) each disposition by the Commission of a re-
quest for modification of an outstanding Commission
order.
Such report shall include the sum total of matters in each
category specified in paragraphs (1) through (10), and cop-
ies of all such consent agreements and complaints executed
by the Commission. Where a matter has been closed or ter-
minated, the report shall include a statement of the reasons
for that disposition. The description required under this
subsection shall be as complete as possible but shall not re-
veal the identity of persons or companies making the com-
plaint or those complained about or those subject to inves-
tigation that have not otherwise been made public.
SEC. 14. REPORT ON PREDATORY PRICING PRACTICES.
(a) REPORT TO CONGRESS.—The Federal Trade Com-
mission shall submit to the Committee on Commerce,
Science, and Transportation of the Senate and to the Com-
mittee on Energy and Commerce of the House of Represent-
atives the information specified in subsection (b) every six
months during each of the fiscal years 1994, 1995, and
1996. Each such report shall contain such information for
the period since the last submission under this section.
(b) CONTENTS OF REPORT.—Each such report shall
list and describe, with respect to instances in which preda-
tory pricing practices have been suspected or alleged—
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(1) each complaint made, orally or in writing,
to the offices of the Commission;
(2) each preliminary investigation opened or
closed at the Commission;
(3) each formal investigation opened or closed at
the Commission;
(4) each recommendation for the issuance of a
complaint forwarded by the staff to the Commission;
(5) each complaint issued by the Commission;
(6) each opinion and order entered by the Com-
mission;
(7) each consent agreement accepted provision-
ally or finally by the Commission;
(8) each request for modification of an outstand-
ing Commission order filed with the Commission;
(9) each recommendation by staff pertaining to
a request for modification of an outstanding Commis-
sion order; and
(10) each disposition by the Commission of a re-
quest for modification of an outstanding Commission
order.
Such report shall include copies of all such consent agree-
ments and complaints executed by the Commission referred
to in such report. Where a matter has been closed or termi-
nated, the report shall include a statement of the reasons
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for that disposition. The descriptions required under this
subsection shall be as complete as possible but shall not re-
veal the identity of persons or companies making the com-
plaint or those complained about or those subject to inves-
tigation that have not otherwise been made public. The re-
port shall include any evaluation by the Commission of the
potential impacts of predatory pricing upon businesses (in-
cluding small businesses).
SEC. 15. INTERVENTION BY COMMISSION IN CERTAIN PRO-
CEEDINGS.
(a) LIMITATION ON USE OF AUTHORIZED FUNDS.—
The Federal Trade Commission shall not have any author-
ity to use any funds which are authorized to be appro-
priated to carry out the Federal Trade Commission Act (15
U.S.C. 41 et seq.) for fiscal years 1994, 1995, and 1996,
for the purpose of submitting statements to, appearing be-
fore, or intervening in the proceedings of, any Federal or
State agency or State legislative body concerning proposed
rules or legislation that the agency or legislative body is
considering unless the Commission advises the Committee
on Commerce, Science, and Transportation of the Senate
and the Committee on Energy and Commerce of the House
of Representatives regarding such action as soon as possible.
(b) CONTENTS OF NOTICE TO CONGRESS.—The notice
required in subsection (a) shall include the name of the
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agency or legislator involved, the date of such action, and
a concise statement regarding the nature and purpose of
such action.
SEC. 16. RESOURCE ALLOCATION STUDY.
The Federal Trade Commission shall conduct an eval-
uation of the level of its personnel resources and the manner
in which such resources are allocated. The Commission shall
study—
(1) whether overall resources at the Commission
are adequate to fulfill the Commission’s responsibil-
ities in the areas of competition and consumer protec-
tion;
(2) the distribution of personnel to individual of-
fices of commissioners, departments, bureaus, and
other units within the Commission, and whether the
current allocation of personnel most efficiently enables
the Commission to fulfill its statutory mandate;
(3) the number of personnel in supervisory posi-
tions, contrasted with those personnel in non-
supervisory positions; and
(4) whether the amount of workyears devoted to
research activities should be increased, and what re-
sults (if any) such an increase would produce.
The Commission shall transmit the results of such study,
together with any recommendations that the Commission
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determines appropriate, to the Committee on Commerce,
Science, and Transportation of the Senate and the Commit-
tee on Energy and Commerce of the House of Representa-
tives not later than six months after the date of enactment
of this Act.
SEC. 17. FEDERAL-STATE COOPERATION.
The Federal Trade Commission shall review its statu-
tory responsibilities to identify those matters within its ju-
risdiction where Federal enforcement is particularly nec-
essary or desirable, and those areas that might more effec-
tively be enforced at the State or local level. In identifying
such areas, the Commission shall—
(1) consider the resources available to the Com-
mission and the States, as well as particular rules
that have been promulgated by the Commission;
(2) consult with the attorneys general of the
States, representatives of consumers and industry,
and other interested parties; and
(3) consider such other issues as will result in
more efficient implementation of the statutory respon-
sibilities of the Commission.
Not later than six months after the date of enactment of
this Act, the Federal Trade Commission shall transmit to
the Committee on Commerce, Science, and Transportation
of the Senate and the Committee on Energy and Commerce
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of the House of Representatives the information identified
in paragraphs (1) through (3), together with specific rec-
ommendations for methods of achieving greater cooperation
between the Commission and the States.
SEC. 18. CREDIT REPAIR ORGANIZATIONS AND LOAN BRO-
KERS.
(a) DEFINITIONS.—In this section, the following terms
apply:
(1)(A) The term ‘‘advance fee’’ means any fee
(including any advance payment of interest or other
fees for any extension of consumer credit) which is as-
sessed or collected by a loan broker from any person
seeking the consumer credit before the extension of
such credit.
(B) The term ‘‘advance fee’’ does not include—
(i) any amount that the loan broker can
demonstrate is collected solely for the purpose of
payment to unaffiliated, third party vendors for
actual expenses incurred and payable before the
extension of any consumer credit; or
(ii) any application fee or other charge as-
sessed or collected—
(I) by a retail seller of property that is
primarily for personal, family, or household
purposes or automobiles; and
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(II) in connection with a consumer
credit transaction in which a purchase
money security interest arising under an
installment sales contract (or any equiva-
lent consensual security interest) is created
or retained against any such property or
automobile being sold by the retail seller to
the person seeking the extension of credit.
(2) The terms ‘‘consumer’’ and ‘‘credit’’ have the
meanings given to such terms in section 103 of the
Truth in Lending Act (15 U.S.C. 1602).
(3)(A) The term ‘‘credit repair organization’’
means any person who sells, provides, or performs, or
represents that such person can or will sell, provide,
or perform, in return for the payment of money or
other valuable consideration, a service for the express
or implied purpose of—
(i) improving a consumer’s credit record,
history, or rating; or
(ii) providing advice or assistance to a
consumer with regard to the consumer’s credit
record, history, or rating.
(B) The term ‘‘credit repair organization’’ does
not include—
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(i) a depository institution whose deposits
are insured by the Federal Deposit Insurance
Corporation, the Federal Savings and Loan In-
surance Corporation, or the National Credit
Union Administration Board, or a depository
institution chartered by a State;
(ii) any nonprofit organization exempt
from taxation under section 501(c)(3) of the In-
ternal Revenue Code;
(iii) a licensed real estate broker acting
within the course and scope of that license;
(iv) a licensed attorney at law rendering
services within the course and scope of that li-
cense;
(v) any broker-dealer registered with the Se-
curities and Exchange Commission or the Com-
modity Futures Trading Commission acting
within the scope of the Securities and Exchange
Commission or the Commodity Futures Trading
Commission regulations;
(vi) any consumer reporting agency acting
within the course and scope of this title; or
(vii) any debt collector as defined in section
803 of the Fair Debt Collection Practices Act (15
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U.S.C. 1692a), acting within the course and
scope of that Act.
(4)(A) The term ‘‘loan broker’’ means any person
who—
(i) for, or in expectation of, a consideration,
arranges or attempts to arrange or offers to find
for any individual, consumer credit;
(ii) for, or in expectation of, a consider-
ation, assists or advises an individual on obtain-
ing, or attempting to obtain, consumer credit; or
(iii) acts or purports to act for, or on behalf
of, a loan broker for the purpose of soliciting in-
dividuals interested in obtaining consumer cred-
it.
(B) The term ‘‘loan broker’’ does not include—
(i) any insured depository institution (as
defined in section 3(c)(2) of the Federal Deposit
Insurance Act; 12 U.S.C. 1813(c)(2)), any in-
sured credit union (as defined in section 101(7)
of the Federal Credit Union Act; 12 U.S.C.
1752(7)), or any depository institution which is
eligible for deposit insurance under the Federal
Deposit Insurance Act or the Federal Credit
Union Act and has deposit insurance coverage
provided by any State;
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(ii) any lender approved by the Federal
Housing Administration, Farmers Home Ad-
ministration, or Department of Veterans Affairs;
(iii) any seller or servicer of mortgages ap-
proved by the Federal National Mortgage Asso-
ciation or the Federal Home Loan Mortgage Cor-
poration; or
(iv) any consumer finance company, retail
installment sales company, securities broker or
dealer, real estate broker or real estate sales-
person, attorney, credit card company, install-
ment loan licensee, mortgage broker or lender, or
insurance company if such person is—
(I) licensed by and subject to regula-
tion or supervision by any agency of the
United States or by the State in which the
person seeking to utilize the services of the
loan broker resides; and
(II) is acting within the scope of that
license or regulation.
(b) PROHIBITED PRACTICES OF CREDIT REPAIR OR-
GANIZATIONS.—A credit repair organization shall not
charge or receive any money or other valuable consideration
prior to completion of the services that the credit repair
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organization has agreed to perform for the consumer and
that are described in subsection (a)(1).
(c) PROHIBITED PRACTICES OF LOAN BROKERS.—(1)
No loan broker may receive an advance fee in connection
with—
(A) 
arranging 
or 
attempting 
to 
arrange
consumer credit;
(B) offering to find for any individual consumer
credit; or
(C) advising any individual as to how to obtain
consumer credit.
(2) No loan broker may—
(A) make or use any false or misleading rep-
resentations or omit any material fact in the offer or
sale of the service of a loan broker; or
(B) engage, directly or indirectly, in any act
that operates or would operate as fraud or deception
upon any person in connection with the offer or sale
of the services of a loan broker, notwithstanding the
absence of reliance by the person to whom the loan
broker’s services are offered or sold.
(d) ENFORCEMENT
BY FEDERAL TRADE COMMIS-
SION.—Any violation of this section shall—
(1) be treated as a violation of a rule of the Fed-
eral Trade Commission issued pursuant to section
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18(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)); and
(2) be subject to enforcement by the Federal
Trade Commission under the enforcement and pen-
alty provisions applicable to violations of such rules.
(e) CRIMINAL PENALTY.—(1) Whoever knowingly vio-
lates subsection (b) or (c) shall be fined under title 18, Unit-
ed States Code, imprisoned for not more than five years,
or both.
(2) Section 981(a)(1)(C) of title 18, United States
Code, is amended—
(A) by striking ‘‘title or a violation’’ and insert-
ing in lieu thereof ‘‘title, a violation’’; and
(B) by inserting ‘‘, or a violation of section 18
(b) or (c) of the Federal Trade Commission Act
Amendments of 1993’’ immediately before the period.
(3) For purposes of section 3005(a) of title 39, United
States Code, a violation of subsection (b) or (c) of this sec-
tion by any person shall constitute prima facie evidence
that such person is engaged in conducting a scheme or de-
vice for obtaining money or property through the mail by
means of false representations.
SEC. 19. AUTHORIZATION OF APPROPRIATIONS.
Section 25 of the Federal Trade Commission Act, as
so redesignated by section 3 of this Act, is amended—
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(1) by striking ‘‘and’’ after ‘‘1981;’’; and
(2) by inserting immediately before the period at
the end the following: ‘‘; not to exceed $88,000,000 for
the fiscal year ending September 30, 1994; not to ex-
ceed $92,000,000 for the fiscal year ending September
30, 1995; and not to exceed $95,000,000 for the fiscal
year ending September 30, 1996, and such additional
sums for the fiscal years ending September 30, 1994,
and September 30, 1995, as may be necessary for in-
creases in salary, pay, and other employee benefits as
authorized by law’’.
SEC. 20. EFFECTIVE DATE; APPLICABILITY.
(a) IN GENERAL.—Except as provided in subsections
(b), (c), (d), (e), and (f), the provisions of this Act shall
take effect on the date of enactment of this Act.
(b) APPLICABILITY OF SECTION 2.—The amendment
made by section 2 of this Act shall apply only with respect
to proceedings under section 5 of the Federal Trade Com-
mission Act (15 U.S.C. 45) after the date of enactment of
this Act. This amendment shall not be construed to affect
in any manner a cease and desist order which was issued,
or a rule which was promulgated, before the date of enact-
ment of this Act. This amendment shall not be construed
to affect in any manner a cease and desist order issued after
the date of enactment of this Act, if such order was issued
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pursuant to remand from a court of appeals or the Supreme
Court of an order issued by the Federal Trade Commission
before the date of enactment of this Act.
(c) APPLICABILITY
OF SECTIONS 6 AND 11.—The
amendments made by sections 6 and 11 of this Act shall
apply only to rulemaking proceedings initiated after the
date of enactment of this Act. These amendments shall not
be construed to affect in any manner a rulemaking proceed-
ing which was initiated before the date of enactment of this
Act.
(d) APPLICABILITY OF SECTION 7.—The amendments
made by section 7 of this Act shall apply only with respect
to cease and desist orders issued under section 5 of the Fed-
eral Trade Commission Act (15 U.S.C. 45) after the date
of enactment of this Act. These amendments shall not be
construed to affect in any manner a cease and desist order
which was issued before the date of enactment of this Act.
(e) APPLICABILITY
OF SECTIONS 8 AND 9.—The
amendments made by sections 8 and 9 of this Act shall
apply only with respect to compulsory process issued after
the date of enactment of this Act.
(f) APPLICABILITY OF SECTION 10.—The amendments
made by section 10 of this Act shall apply only with respect
to cease and desist orders issued under section 5 of the Fed-
eral Trade Commission Act (15 U.S.C. 45), or to rules pro-
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mulgated under section 18 of the Federal Trade Commission
Act (15 U.S.C. 57a), after the date of enactment of this Act.
These amendments shall not be construed to affect in any
manner a cease and desist order which was issued, or a
rule which was promulgated, before the date of enactment
of this Act. These amendments shall not be construed to af-
fect in any manner a cease and desist order issued after
the date of enactment of this Act, if such order was issued
pursuant to remand from a court of appeals or the Supreme
Court of an order issued by the Federal Trade Commission
before the date of enactment of this Act.
Attest:
Secretary.
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