Consumer Controversies Resolution Act

(LATEST SUMMARY)

Consumer Controversies Resolution Act - Declares that it is the purpose of this Act to assure a consumer controversy resolution mechanism which is effective, fair, inexpensive, and expeditious, and to facilitate better representation of consumer interests.

Defines the terms used in this Act. Directs the Federal Trade Commission to establish a Bureau of Consumer Redress. Directs the Commission to perform enumerated duties, including: (1) allocate and pay to the States funds appropriated for financial assistance to States under cooperative agreements; (2) review the operation of each State plan for the resolution of controversies involving consumers which has been approved under this Act; and (3) articulate and evaluate the goals for a model State system of consumer controversy resolution.

Provides for the allocation to States of monies appropriated for financial assistance pursuant to this Act. Specifies purposes for which such funds may be used, including public education and publicity relating to the availability and proper use of consumer controversy resolution mechanisms and settlement procedures.

States that, by the end of six months after the date of enactment of this Act, a State may submit a plan in accordance with this Act for the resolution of controversies involving consumers. Calls for the review of such plans periodically, but not less than once every two years, by the Director.

Provides that a consumer controversy resolution mechanism is responsive to national goals if: (1) procedures are easy and inexpensive for the citizens and free from technicalities; (2) it is designed so that appropriate personnel can be provided consumers in pursuing claims and collecting judgments; (3) it is open or available for the adjudication or resolution of controversies during hours and on days that consumers and other citizens can easily utilize it; (4) it provides adequate arrangements for translation in areas with substantial non-English speaking populations; and (5) it is governed by procedures which are published and approved by the Administrator.

Provides that a small claims court is responsive to national goals if: (1) it is part of the regular State court system; (2) it has a reasonable jurisdictional limit; (3) it assures that litigants will receive adequate notice of proceedings pending against them; (4) it has a procedure which will enable citizens to easily discover the proper names of persons or corporations to be sued; (5) it provides informal dispute resolution mechanisms that must be used by corporate plaintiffs prior to trial; (6) it contains a method of reducing misuse of default judgments; and (7) it provides effective means for securing prompt payment of judgments.

Establishes the National Institute for Consumer Justice to investigate specific problems arising in the resolution of controversies in the interstate context, with special attention to be paid to the possibility of using United States Magistrates to resolve such controversies.

Authorizes to be appropriated such sums as are necessary, not to exceed $500,000 for fiscal year 1975, and not to exceed $15,000,000 for fiscal year 1976, provided that no more than 10 percent authorized be appropriated for Federal administrative expenses. Provides that whenever the Director or Commission submits any legislative recommendations, proposed testimony, or comments on legislation to the President or the Office of Management and Budget, it shall concurrently transmit a copy therof to Congress.