Consumer Protection and Recovery Act
Bill: H.R.2668 | Sponsor: Rep. Cárdenas, Tony (D-CA)
Policy area: Commerce

Summary:
Consumer Protection and Recovery Act
This bill authorizes the Federal Trade Commission (FTC) to seek monetary relief in federal court from businesses that engage in unlawful commercial practices such as false advertising, consumer fraud, and anticompetitive conduct.
Specifically, the FTC may seek restitution in these cases for losses, rescission or reformation of contracts, refund of money, return of property, or disgorgement of unjust enrichment.
On April 22, 2021, the Supreme Court held in AMG Capital Management, LLC v. Federal Trade Commission that the Federal Trade Commission Act does not authorize the FTC to seek, or a court to award, such relief.

To amend the Federal Trade Commission Act to affirmatively confirm the 
authority of the Federal Trade Commission to seek permanent injunctions 
   and other equitable relief for violations of any provision of law 
                      enforced by the Commission.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Protection and Recovery 
Act''.

SEC. 2. FTC AUTHORITY TO SEEK PERMANENT INJUNCTIONS AND OTHER EQUITABLE 
              RELIEF.

    (a) Permanent Injunctions and Other Equitable Relief.--Section 13 
of the Federal Trade Commission Act (15 U.S.C. 53) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting ``has 
                violated,'' after ``corporation'';
                    (B) in paragraph (2)--
                            (i) by striking ``that'' and inserting 
                        ``that either (A)''; and
                            (ii) by striking ``final,'' and inserting 
                        ``final; or (B) the permanent enjoining thereof 
                        or the ordering of equitable relief under 
                        subsection (e),''; and
                    (C) in the matter following paragraph (2)--
                            (i) by striking ``to enjoin any such act or 
                        practice'';
                            (ii) by striking ``Upon'' and inserting 
                        ``In a suit under paragraph (2)(A), upon'';
                            (iii) by striking ``without bond'';
                            (iv) by striking ``proper cases'' and 
                        inserting ``a suit under paragraph (2)(B)'';
                            (v) by striking ``injunction.'' and 
                        inserting ``injunction, equitable relief under 
                        subsection (e), or such other relief as the 
                        court determines to be just and proper, 
                        including temporary or preliminary equitable 
                        relief.'';
                            (vi) by striking ``Any suit'' and inserting 
                        ``Any suit under this subsection''; and
                            (vii) by striking ``In any suit under this 
                        section'' and inserting ``In any such suit''; 
                        and
            (2) by adding at the end the following:
    ``(e) Equitable Relief.--
            ``(1) Restitution; contract rescission and reformation; 
        refunds; return of property.--In a suit brought under 
        subsection (b)(2)(B), the Commission may seek, and the court 
        may order, with respect to the violation that gives rise to the 
        suit, restitution for losses, rescission or reformation of 
        contracts, refund of money, or return of property.
            ``(2) Disgorgement.--In a suit brought under subsection 
        (b)(2)(B), the Commission may seek, and the court may order, 
        disgorgement of any unjust enrichment that a person, 
        partnership, or corporation obtained as a result of the 
        violation that gives rise to the suit.
            ``(3) Calculation.--Any amount that a person, partnership, 
        or corporation is ordered to pay under paragraph (2) with 
        respect to a violation shall be offset by any amount such 
        person, partnership, or corporation is ordered to pay, and the 
        value of any property such person, partnership, or corporation 
        is ordered to return, under paragraph (1) with respect to such 
        violation.
            ``(4) Limitations period.--
                    ``(A) In general.--A court may not order equitable 
                relief under this subsection with respect to any 
                violation occurring before the period that begins on 
                the date that is 10 years before the date on which the 
                Commission files the suit in which such relief is 
                sought.
                    ``(B) Calculation.--For purposes of calculating the 
                beginning of the period described in subparagraph (A), 
                any time during which an individual against which the 
                equitable relief is sought is outside of the United 
                States shall not be counted.''.
    (b) Conforming Amendment.--Section 16(a)(2)(A) of the Federal Trade 
Commission Act (15 U.S.C. 56(a)(2)(A)) is amended by striking 
``(relating to injunctive relief)''.
    (c) Applicability.--The amendments made by this section shall apply 
with respect to any action or proceeding that is pending on, or 
commenced on or after, the date of the enactment of this Act.

            Passed the House of Representatives July 20, 2021.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.