TIME Act
Bill: H.R.2677 | Sponsor: Rep. Burgess, Michael C. (R-TX)
Policy area: Commerce

Summary:
Technological Innovation through Modernizing Enforcement Act or the TIME Act
This bill limits to a maximum of eight years the duration of consent orders entered into by the Federal Trade Commission.
Further, a consent order that is not related to fraud and is effective for more than five years must include a clause requiring the commission to evaluate the order after five years and terminate the order if it no longer serves its purpose. If an entity has been subject to such a consent order for at least five years, it may petition the commission to terminate the order.

To amend the Federal Trade Commission Act to require a time limitation 
              for consent orders, and for other purposes.

    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 ``Technological Innovation through 
Modernizing Enforcement Act'' or the ``TIME Act''.

SEC. 2. TIME LIMITATION FOR CONSENT ORDERS.

    (a) Amendment.--Section 5 of the Federal Trade Commission Act (15 
U.S.C. 45) is amended by adding at the end the following new 
subsection:
    ``(o) Termination Clause Required for Consent Orders.--Any consent 
order entered into by the Commission shall include a termination clause 
that the consent order shall expire not later than 8 years after the 
date on which the consent order is entered into, unless such consent 
order relates to alleged fraud by the entity subject to the consent 
order and requires a time limit longer than 8 years based on the 
factors described in this subsection. In determining the time limit for 
any termination clause, the Commission shall consider each of the 
following factors:
            ``(1) The impact of technological progress on the 
        continuing relevance of the consent order.
            ``(2) Whether there is reason to believe that the entity 
        would engage in activities that violate this section without 
        the consent order 8 years after the consent order is entered 
        into by the Commission.
    ``(p) Consent Order Review.--Any consent order entered into by the 
Commission that is unrelated to alleged fraud by the entity subject to 
the consent order and has a termination date more than 5 years after 
such consent order is entered into shall include a clause providing for 
Commission review of the consent order 5 years after the date on which 
the order is entered into. Such clause shall require the Commission to 
evaluate whether the consent order continues to serve its initial 
purposes based on the factors described in subsection (o). The clause 
shall provide that if, based on such evaluation, the Commission 
determines that the consent order no longer serves its purposes, the 
Commission shall terminate the consent order.
    ``(q) Petition for Review of Existing Consent Orders.--Any entity 
that as of the effective date of this subsection is subject to a 
consent order that is unrelated to alleged fraud and has been effective 
for a period of at least five years may petition the Commission to 
terminate such consent order. In evaluating a petition to terminate a 
consent order under this subsection, the Commission shall consider 
whether the consent order continues to serve its initial purposes based 
on each of the factors described in subsection (o). If, based on such 
evaluation, the Commission determines that the consent order no longer 
serves its purposes, the Commission shall terminate the consent 
order.''.
    (b) Effective Date; Applicability.--The amendment made by 
subsection (a) shall take effect on the date of enactment of this Act 
and with respect to subsections (o) and (p) of section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45), as added by subsection (a), shall 
apply with respect to any consent order entered into after such date.
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