Consumer Protection Remedies Act of 2022
This bill authorizes the Federal Trade Commission to seek, and courts to order, certain types of equitable relief such as restitution, contract rescission, and disgorgement in suits to enforce the laws within the commission's jurisdiction.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4145 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 4145
To amend section 13 of the Federal Trade Commission Act to provide for
equitable relief, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 4, 2022
Ms. Cantwell (for herself, Ms. Klobuchar, Mr. Warnock, and Mr. Lujan)
introduced the following bill; which was read twice and referred to the
Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To amend section 13 of the Federal Trade Commission Act to provide for
equitable relief, 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 ``Consumer Protection Remedies Act of
2022''.
SEC. 2. AMENDMENTS TO THE FEDERAL TRADE COMMISSION ACT.
(a) In General.--Section 13 of the Federal Trade Commission Act (15
U.S.C. 53) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``is violating,
or is about to violate,'' and inserting ``has violated,
is violating, or is about to violate'';
(B) in paragraph (2)--
(i) by inserting ``either (A)'' before
``the enjoining thereof''; and
(ii) by inserting ``or (B) the permanent
enjoining thereof or the ordering of an
equitable remedy under subsection (e)'' after
``final,''; and
(C) in the flush text following paragraph (2)--
(i) by striking ``to enjoin any such act or
practice'' and inserting ``to obtain such
injunction or remedy'';
(ii) by striking ``Upon a proper showing
that'' and inserting ``In a case brought under
paragraph (2)(A), upon a proper showing that'';
(iii) by striking ``such action'' and
inserting ``a temporary restraining order or
preliminary injunction'';
(iv) by striking ``without bond'';
(v) by striking ``That in proper cases the
Commission may seek, and after proper proof,
the court may issue, a permanent injunction''
and inserting ``That in a case brought under
paragraph (2)(B), after proper proof and upon a
showing that a permanent injunction or
equitable remedy under subsection (e) would be
in the public interest, the court may issue a
permanent injunction, an equitable remedy under
subsection (e), or any other relief as the
court determines to be just and proper,
including temporary or preliminary equitable
relief'';
(vi) by striking ``Any suit may'' and
inserting ``Any suit under paragraph (2) may'';
and
(vii) by striking ``any suit under this
section'' and inserting ``any such suit''; and
(2) by adding at the end the following new subsection:
``(e) Equitable Remedies.--
``(1) Restitution; contract rescission and reformation.--
``(A) In general.--In a suit brought under
subsection (b)(2)(B) with respect to a violation of a
provision of law enforced by the Commission, the
Commission may seek, and the court may order--
``(i) restitution for consumer loss
resulting from such violation;
``(ii) rescission or reformation of
contracts; and
``(iii) the refund of money or return of
property.
``(B) Limitations period.--Relief under this
paragraph shall not be available for a claim arising
more than 10 years before the filing of the
Commission's suit under subsection (b)(2)(B) with
respect to the violation that gave rise to the claim.
``(2) Disgorgement.--
``(A) In general.--In a suit brought under
subsection (b)(2)(B) with respect to a violation of a
provision of law enforced by the Commission, 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
that violation.
``(B) Calculation.--Any disgorgement that is
ordered with respect to a person, partnership, or
corporation under subparagraph (A) shall be offset by
any amount of restitution that the person, partnership,
or corporation is ordered to pay under paragraph (1).
``(C) Limitations period.--Disgorgement under this
paragraph shall be limited to any unjust enrichment a
person, partnership, or corporation obtained in the 10
years preceding the filing of the Commission's suit
under subsection (b)(2)(B) with respect to the
violation that resulted in such unjust enrichment.
``(3) Calculation of limitations periods.--For purposes of
calculating any limitations period with respect to a claim for
relief under paragraph (1) or a disgorgement order under
paragraph (2), any time in which a person, partnership, or
corporation against which such relief or order is sought is
outside the United States shall not be counted for purposes of
calculating such period.''.
(b) Conforming and Technical Amendments.--Section 16(a)(2) of the
Federal Trade Commission Act (15 U.S.C. 56(a)(2)) is amended--
(1) in subparagraph (A), by striking ``(relating to
injunctive relief)'';
(2) in subparagraph (B), by striking ``(relating to
consumer redress)''; and
(3) in subparagraph (D), by striking ``subpena'' and
inserting ``subpoena''.
(c) Applicability.--The amendments made by this section shall apply
with respect to any action or proceeding that is commenced on or after
the date of enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Committee on Commerce, Science, and Transportation. Failed to report favorably.
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