109th CONGRESS
2d Session
S. 1608
IN THE HOUSE OF REPRESENTATIVES
March 28, 2006
Referred to the Committee on Energy and Commerce
AN ACT
To enhance Federal Trade Commission enforcement against illegal
spam, spyware, and cross-border fraud and deception, 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; FINDINGS; PURPOSE.
(a) SHORT TITLE- This Act may be cited as the `Undertaking Spam, Spyware,
And Fraud Enforcement With Enforcers beyond Borders Act of 2005' or the
`U.S. SAFE WEB Act of 2005'.
(b) FINDINGS- The Congress finds the following:
(1) The Federal Trade Commission protects consumers from fraud and deception.
Cross-border fraud and deception are growing international problems that
affect American consumers and businesses.
(2) The development of the Internet and improvements in telecommunications
technologies have brought significant benefits to consumers. At the same
time, they have also provided unprecedented opportunities for those engaged
in fraud and deception to establish operations in one country and victimize
a large number of consumers in other countries.
(3) An increasing number of consumer complaints collected in the Consumer
Sentinel database maintained by the Commission, and an increasing number
of cases brought by the Commission, involve foreign consumers, foreign
businesses or individuals, or assets or evidence located outside the United
States.
(4) The Commission has legal authority to remedy law violations involving
domestic and foreign wrongdoers, pursuant to the Federal Trade Commission
Act. The Commission's ability to obtain effective relief using this authority,
however, may face practical impediments when wrongdoers, victims, other
witnesses, documents, money and third parties involved in the transaction
are widely dispersed in many different jurisdictions. Such circumstances
make it difficult for the Commission to gather all the information necessary
to detect injurious practices, to recover offshore assets for consumer
redress, and to reach conduct occurring outside the United States that
affects United States consumers.
(5) Improving the ability of the Commission and its foreign counterparts
to share information about cross-border fraud and deception, to conduct
joint and parallel investigations, and to assist each other is critical
to achieve more timely and effective enforcement in cross-border cases.
(c) PURPOSE- The purpose of this Act is to enhance the ability of the Federal
Trade Commission to protect consumers from illegal spam, spyware, and cross-border
fraud and deception and other consumer protection law violations.
SEC. 2. FOREIGN LAW ENFORCEMENT AGENCY DEFINED.
Section 4 of the Federal Trade Commission Act (15 U.S.C. 44) is amended
by adding at the end the following:
`Foreign law enforcement agency' means--
`(1) any agency or judicial authority of a foreign government, including
a foreign state, a political subdivision of a foreign state, or a multinational
organization constituted by and comprised of foreign states, that is vested
with law enforcement or investigative authority in civil, criminal, or
administrative matters; and
`(2) any multinational organization, to the extent that it is acting on
behalf of an entity described in paragraph (1).'.
SEC. 3. AVAILABILITY OF REMEDIES.
Section 5(a) of the Federal Trade Commission Act (15 U.S.C. 45(a)) is amended
by adding at the end the following:
`(4)(A) For purposes of subsection (a), the term `unfair or deceptive
acts or practices' includes such acts or practices involving foreign commerce
that--
`(i) cause or are likely to cause reasonably foreseeable injury within
the United States; or
`(ii) involve material conduct occurring within the United States.
`(B) All remedies available to the Commission with respect to unfair and
deceptive acts or practices shall be available for acts and practices
described in this paragraph, including restitution to domestic or foreign
victims.'.
SEC. 4. POWERS OF THE COMMISSION.
(a) PUBLICATION OF INFORMATION; REPORTS- Section 6(f) of the Federal Trade
Commission Act (15 U.S.C. 46(f)) is amended--
(1) by inserting `(1)' after `such information' the first place it appears;
and
(2) by striking `purposes.' and inserting `purposes, and (2) to any officer
or employee of any foreign law enforcement agency under the same circumstances
that making material available to foreign law enforcement agencies is
permitted under section 21(b).'.
(b) OTHER POWERS OF THE COMMISSION- Section 6 of the Federal Trade Commission
Act (15 U.S.C. 46) is further amended by inserting after subsection (i)
and before the proviso the following:
`(j) INVESTIGATIVE ASSISTANCE FOR FOREIGN LAW ENFORCEMENT AGENCIES-
`(1) IN GENERAL- Upon a written request from a foreign law enforcement
agency to provide assistance in accordance with this subsection, if the
requesting agency states that it is investigating, or engaging in enforcement
proceedings against, possible violations of laws prohibiting fraudulent
or deceptive commercial practices, or other practices substantially similar
to practices prohibited by any provision of the laws administered by the
Commission, other than Federal antitrust laws (as defined in section 12(5)
of the International Antitrust Enforcement Assistance Act of 1994 (15
U.S.C. 6211(5))), to provide the assistance described in paragraph (2)
without requiring that the conduct identified in the request constitute
a violation of the laws of the United States.
`(2) TYPE OF ASSISTANCE- In providing assistance to a foreign law enforcement
agency under this subsection, the Commission may--
`(A) conduct such investigation as the Commission deems necessary to
collect information and evidence pertinent to the request for assistance,
using all investigative powers authorized by this Act; and
`(B) when the request is from an agency acting to investigate or pursue
the enforcement of civil laws, or when the Attorney General refers a
request to the Commission from an agency acting to investigate or pursue
the enforcement of criminal laws, seek and accept appointment by a United
States district court of Commission attorneys to provide assistance
to foreign and international tribunals and to litigants before such
tribunals on behalf of a foreign law enforcement agency pursuant to
section 1782 of title 28, United States Code.
`(3) CRITERIA FOR DETERMINATION- In deciding whether to provide such assistance,
the Commission shall consider all relevant factors, including--
`(A) whether the requesting agency has agreed to provide or will provide
reciprocal assistance to the Commission;
`(B) whether compliance with the request would prejudice the public
interest of the United States; and
`(C) whether the requesting agency's investigation or enforcement proceeding
concerns acts or practices that cause or are likely to cause injury
to a significant number of persons.
`(4) INTERNATIONAL AGREEMENTS- If a foreign law enforcement agency has
set forth a legal basis for requiring execution of an international agreement
as a condition for reciprocal assistance, or as a condition for provision
of materials or information to the Commission, the Commission, with prior
approval and ongoing oversight of the Secretary of State, and with final
approval of the agreement by the Secretary of State, may negotiate and
conclude an international agreement, in the name of either the United
States or the Commission, for the purpose of obtaining such assistance,
materials, or information. The Commission may undertake in such an international
agreement to--
`(A) provide assistance using the powers set forth in this subsection;
`(B) disclose materials and information in accordance with subsection
(f) and section 21(b); and
`(C) engage in further cooperation, and protect materials and information
received from disclosure, as authorized by this Act.
`(5) ADDITIONAL AUTHORITY- The authority provided by this subsection is
in addition to, and not in lieu of, any other authority vested in the
Commission or any other officer of the United States.
`(6) LIMITATION- The authority granted by this subsection shall not authorize
the Commission to take any action or exercise any power with respect to
a bank, a savings and loan institution described in section 18(f)(3) (15
U.S.C. 57a(f)(3)), a Federal credit union described in section 18(f)(4)
(15 U.S.C. 57a(f)(4)), or a common carrier subject to the Act to regulate
commerce, except in accordance with the undesignated proviso following
the last designated subsection of section 6 (15 U.S.C. 46).
`(7) ASSISTANCE TO CERTAIN COUNTRIES- The Commission may not provide investigative
assistance under this subsection to a foreign law enforcement agency from
a foreign state that the Secretary of State has determined, in accordance
with section 6(j) of the Export Administration Act of 1979 (50 U.S.C.
App. 2405(j)), has repeatedly provided support for acts of international
terrorism, unless and until such determination is rescinded pursuant to
section 6(j)(4) of that Act (50 U.S.C. App. 2405(j)(4)).
`(k) REFERRAL OF EVIDENCE FOR CRIMINAL PROCEEDINGS-
`(1) IN GENERAL- Whenever the Commission obtains evidence that any person,
partnership, or corporation, either domestic or foreign, has engaged in
conduct that may constitute a violation of Federal criminal law, to transmit
such evidence to the Attorney General, who may institute criminal proceedings
under appropriate statutes. Nothing in this paragraph affects any other
authority of the Commission to disclose information.
`(2) INTERNATIONAL INFORMATION- The Commission shall endeavor to ensure,
with respect to memoranda of understanding and international agreements
it may conclude, that material it has obtained from foreign law enforcement
agencies acting to investigate or pursue the enforcement of foreign criminal
laws may be used for the purpose of investigation, prosecution, or prevention
of violations of United States criminal laws.
`(l) EXPENDITURES FOR COOPERATIVE ARRANGEMENTS- To expend appropriated funds
for--
`(1) operating expenses and other costs of bilateral and multilateral
cooperative law enforcement groups conducting activities of interest to
the Commission and in which the Commission participates; and
`(2) expenses for consultations and meetings hosted by the Commission
with foreign government agency officials, members of their delegations,
appropriate representatives and staff to exchange views concerning developments
relating to the Commission's mission, development and implementation of
cooperation agreements, and provision of technical assistance for the
development of foreign consumer protection or competition regimes, such
expenses to include necessary administrative and logistic expenses and
the expenses of Commission staff and foreign invitees in attendance at
such consultations and meetings including--
`(A) such incidental expenses as meals taken in the course of such attendance;
`(B) any travel and transportation to or from such meetings; and
`(C) any other related lodging or subsistence.'.
(c) AUTHORIZATION OF APPROPRIATIONS- The Federal Trade Commission is authorized
to expend appropriated funds not to exceed $100,000 per fiscal year for
purposes of section 6(l) of the Federal Trade Commission Act (15 U.S.C.
46(l)) (as added by subsection (b) of this section), including operating
expenses and other costs of the following bilateral and multilateral cooperative
law enforcement agencies and organizations:
(1) The International Consumer Protection and Enforcement Network.
(2) The International Competition Network.
(3) The Mexico-U.S.-Canada Health Fraud Task Force.
(5) The Toronto Strategic Partnership and other regional partnerships
with a nexus in a Canadian province.
(d) CONFORMING AMENDMENT- Section 6 of the Federal Trade Commission Act
(15 U.S.C. 46) is amended by striking `clauses (a) and (b)' in the proviso
following subsection (l) (as added by subsection (b) of this section) and
inserting `subsections (a), (b), and (j)'.
SEC. 5. REPRESENTATION IN FOREIGN LITIGATION.
Section 16 of the Federal Trade Commission Act (15 U.S.C. 56) is amended
by adding at the end the following:
`(1) COMMISSION ATTORNEYS- With the concurrence of the Attorney General,
the Commission may designate Commission attorneys to assist the Attorney
General in connection with litigation in foreign courts on particular
matters in which the Commission has an interest.
`(2) REIMBURSEMENT FOR FOREIGN COUNSEL- The Commission is authorized to
expend appropriated funds, upon agreement with the Attorney General, to
reimburse the Attorney General for the retention of foreign counsel for
litigation in foreign courts and for expenses related to litigation in
foreign courts in which the Commission has an interest.
`(3) LIMITATION ON USE OF FUNDS- Nothing in this subsection authorizes
the payment of claims or judgments from any source other than the permanent
and indefinite appropriation authorized by section 1304 of title 31, United
States Code.
`(4) OTHER AUTHORITY- The authority provided by this subsection is in
addition to any other authority of the Commission or the Attorney General.'.
SEC. 6. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENT AGENCIES.
(a) MATERIAL OBTAINED PURSUANT TO COMPULSORY PROCESS- Section 21(b)(6) of
the Federal Trade Commission Act (15 U.S.C. 57b-2(b)(6)) is amended by adding
at the end `The custodian may make such material available to any foreign
law enforcement agency upon the prior certification of an appropriate official
of any such foreign law enforcement agency, either by a prior agreement
or memorandum of understanding with the Commission or by other written certification,
that such material will be maintained in confidence and will be used only
for official law enforcement purposes, if--
`(A) the foreign law enforcement agency has set forth a bona fide legal
basis for its authority to maintain the material in confidence;
`(B) the materials are to be used for purposes of investigating, or engaging
in enforcement proceedings related to, possible violations of--
`(i) foreign laws prohibiting fraudulent or deceptive commercial practices,
or other practices substantially similar to practices prohibited by
any law administered by the Commission;
`(ii) a law administered by the Commission, if disclosure of the material
would further a Commission investigation or enforcement proceeding;
or
`(iii) with the approval of the Attorney General, other foreign criminal
laws, if such foreign criminal laws are offenses defined in or covered
by a criminal mutual legal assistance treaty in force between the government
of the United States and the foreign law enforcement agency's government;
`(C) the appropriate Federal banking agency (as defined in section 3(q)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)) or, in the case
of a Federal credit union, the National Credit Union Administration, has
given its prior approval if the materials to be provided under subparagraph
(B) are requested by the foreign law enforcement agency for the purpose
of investigating, or engaging in enforcement proceedings based on, possible
violations of law by a bank, a savings and loan institution described
in section 18(f)(3) of the Federal Trade Commission Act (15 U.S.C. 57a(f)(3)),
or a Federal credit union described in section 18(f)(4) of the Federal
Trade Commission Act (15 U.S.C. 57a(f)(4)); and
`(D) the foreign law enforcement agency is not from a foreign state that
the Secretary of State has determined, in accordance with section 6(j)
of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)), has
repeatedly provided support for acts of international terrorism, unless
and until such determination is rescinded pursuant to section 6(j)(4)
of that Act (50 U.S.C. App. 2405(j)(4)).
Nothing in the preceding sentence authorizes the disclosure of material
obtained in connection with the administration of the Federal antitrust
laws or foreign antitrust laws (as defined in paragraphs (5) and (7), respectively,
of section 12 of the International Antitrust Enforcement Assistance Act
of 1994 (15 U.S.C. 6211)) to any officer or employee of a foreign law enforcement
agency.'.
(b) INFORMATION SUPPLIED BY AND ABOUT FOREIGN SOURCES- Section 21(f) of
the Federal Trade Commission Act (15 U.S.C. 57b-2(f)) is amended to read
as follows:
`(f) EXEMPTION FROM PUBLIC DISCLOSURE-
`(1) IN GENERAL- Any material which is received by the Commission in any
investigation, a purpose of which is to determine whether any person may
have violated any provision of the laws administered by the Commission,
and which is provided pursuant to any compulsory process under this Act
or which is provided voluntarily in place of such compulsory process shall
not be required to be disclosed under section 552 of title 5, United States
Code, or any other provision of law, except as provided in paragraph (2)(B)
of this section.
`(2) MATERIAL OBTAINED FROM A FOREIGN SOURCE-
`(A) IN GENERAL- Except as provided in subparagraph (B) of this paragraph,
the Commission shall not be required to disclose under section 552 of
title 5, United States Code, or any other provision of law--
`(i) any material obtained from a foreign law enforcement agency or
other foreign government agency, if the foreign law enforcement agency
or other foreign government agency has requested confidential treatment,
or has precluded such disclosure under other use limitations, as a
condition of providing the material;
`(ii) any material reflecting a consumer complaint obtained from any
other foreign source, if that foreign source supplying the material
has requested confidential treatment as a condition of providing the
material; or
`(iii) any material reflecting a consumer complaint submitted to a
Commission reporting mechanism sponsored in part by foreign law enforcement
agencies or other foreign government agencies.
`(B) SAVINGS PROVISION- Nothing in this subsection shall authorize the
Commission to withhold information from the Congress or prevent the
Commission from complying with an order of a court of the United States
in an action commenced by the United States or the Commission.'.
SEC. 7. CONFIDENTIALITY; DELAYED NOTICE OF PROCESS.
(a) IN GENERAL- The Federal Trade Commission Act (15 U.S.C. 41 et seq.)
is amended by inserting after section 21 the following:
`SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF COMPULSORY PROCESS FOR
CERTAIN THIRD PARTIES.
`(a) APPLICATION WITH OTHER LAWS- The Right to Financial Privacy Act (12
U.S.C. 3401 et seq.) and chapter 121 of title 18, United States Code, shall
apply with respect to the Commission, except as otherwise provided in this
section.
`(b) PROCEDURES FOR DELAY OF NOTIFICATION OR PROHIBITION OF DISCLOSURE-
The procedures for delay of notification or prohibition of disclosure under
the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) and chapter
121 of title 18, United States Code, including procedures for extensions
of such delays or prohibitions, shall be available to the Commission, provided
that, notwithstanding any provision therein--
`(1) a court may issue an order delaying notification or prohibiting disclosure
(including extending such an order) in accordance with the procedures
of section 1109 of the Right to Financial Privacy Act (12 U.S.C. 3409)
(if notification would otherwise be required under that Act), or section
2705 of title 18, United States Code, (if notification would otherwise
be required under chapter 121 of that title), if the presiding judge or
magistrate judge finds that there is reason to believe that such notification
or disclosure may cause an adverse result as defined in subsection (g)
of this section; and
`(2) if notification would otherwise be required under chapter 121 of
title 18, United States Code, the Commission may delay notification (including
extending such a delay) upon the execution of a written certification
in accordance with the procedures of section 2705 of that title if the
Commission finds that there is reason to believe that notification may
cause an adverse result as defined in subsection (g) of this section.
`(c) EX PARTE APPLICATION BY COMMISSION-
`(1) IN GENERAL- If neither notification nor delayed notification by the
Commission is required under the Right to Financial Privacy Act (12 U.S.C.
3401 et seq.) or chapter 121 of title 18, United States Code, the Commission
may apply ex parte to a presiding judge or magistrate judge for an order
prohibiting the recipient of compulsory process issued by the Commission
from disclosing to any other person the existence of the process, notwithstanding
any law or regulation of the United States, or under the constitution,
or any law or regulation, of any State, political subdivision of a State,
territory of the United States, or the District of Columbia. The presiding
judge or magistrate judge may enter such an order granting the requested
prohibition of disclosure for a period not to exceed 60 days if there
is reason to believe that disclosure may cause an adverse result as defined
in subsection (g). The presiding judge or magistrate judge may grant extensions
of this order of up to 30 days each in accordance with this subsection,
except that in no event shall the prohibition continue in force for more
than a total of 9 months.
`(2) APPLICATION- This subsection shall apply only in connection with
compulsory process issued by the Commission where the recipient of such
process is not a subject of the investigation or proceeding at the time
such process is issued.
`(3) LIMITATION- No order issued under this subsection shall prohibit
any recipient from disclosing to a Federal agency that the recipient has
received compulsory process from the Commission.
`(d) NO LIABILITY FOR FAILURE TO NOTIFY- If neither notification nor delayed
notification by the Commission is required under the Right to Financial
Privacy Act (12 U.S.C. 3401 et seq.) or chapter 121 of title 18, United
States Code, the recipient of compulsory process issued by the Commission
under this Act shall not be liable under any law or regulation of the United
States, or under the constitution, or any law or regulation, of any State,
political subdivision of a State, territory of the United States, or the
District of Columbia, or under any contract or other legally enforceable
agreement, for failure to provide notice to any person that such process
has been issued or that the recipient has provided information in response
to such process. The preceding sentence does not exempt any recipient from
liability for--
`(1) the underlying conduct reported;
`(2) a failure to comply with the record retention requirements under
section 1104(c) of the Right to Financial Privacy Act (12 U.S.C. 3404),
where applicable; or
`(3) any failure to comply with any obligation the recipient may have
to disclose to a Federal agency that the recipient has received compulsory
process from the Commission or intends to provide or has provided information
to the Commission in response to such process.
`(e) VENUE AND PROCEDURE-
`(1) IN GENERAL- All judicial proceedings initiated by the Commission
under the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.), chapter
121 of title 18, United States Code, or this section may be brought in
the United States District Court for the District of Columbia or any other
appropriate United States District Court. All ex parte applications by
the Commission under this section related to a single investigation may
be brought in a single proceeding.
`(2) IN CAMERA PROCEEDINGS- Upon application by the Commission, all judicial
proceedings pursuant to this section shall be held in camera and the records
thereof sealed until expiration of the period of delay or such other date
as the presiding judge or magistrate judge may permit.
`(f) SECTION NOT TO APPLY TO ANTITRUST INVESTIGATIONS OR PROCEEDINGS- This
section shall not apply to an investigation or proceeding related to the
administration of Federal antitrust laws or foreign antitrust laws (as defined
in paragraphs (5) and (7), respectively, of section 12 of the International
Antitrust Enforcement Assistance Act of 1994 (15 U.S.C. 6211).
`(g) ADVERSE RESULT DEFINED- For purposes of this section the term `adverse
result' means--
`(1) endangering the life or physical safety of an individual;
`(2) flight from prosecution;
`(3) the destruction of, or tampering with, evidence;
`(4) the intimidation of potential witnesses; or
`(5) otherwise seriously jeopardizing an investigation or proceeding related
to fraudulent or deceptive commercial practices or persons involved in
such practices, or unduly delaying a trial related to such practices or
persons involved in such practices, including, but not limited to, by--
`(A) the transfer outside the territorial limits of the United States
of assets or records related to fraudulent or deceptive commercial practices
or related to persons involved in such practices;
`(B) impeding the ability of the Commission to identify persons involved
in fraudulent or deceptive commercial practices, or to trace the source
or disposition of funds related to such practices; or
`(C) the dissipation, fraudulent transfer, or concealment of assets
subject to recovery by the Commission.'.
(b) CONFORMING AMENDMENT- Section 16(a)(2) of the Federal Trade Commission
Act (15 U.S.C. 56(a)(2)) is amended--
(1) in subparagraph (C) by striking `or' after the semicolon;
(2) in subparagraph (D) by inserting `or' after the semicolon; and
(3) by inserting after subparagraph (D) the following:
`(E) under section 21A of this Act;'.
SEC. 8. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is further amended
by adding after section 21A (as added by section 7 of this Act) the following:
`SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.
`(1) NO LIABILITY FOR PROVIDING CERTAIN MATERIAL- An entity described
in paragraphs (2) or (3) of subsection (d) that voluntarily provides material
to the Commission that such entity reasonably believes is relevant to--
`(A) a possible unfair or deceptive act or practice, as defined in section
5(a) of this Act; or
`(B) assets subject to recovery by the Commission, including assets
located in foreign jurisdictions;
shall not be liable to any person under any law or regulation of the United
States, or under the constitution, or any law or regulation, of any State,
political subdivision of a State, territory of the United States, or the
District of Columbia, for such provision of material or for any failure
to provide notice of such provision of material or of intention to so
provide material.
`(2) LIMITATIONS- Nothing in this subsection shall be construed to exempt
any such entity from liability--
`(A) for the underlying conduct reported; or
`(B) to any Federal agency for providing such material or for any failure
to comply with any obligation the entity may have to notify a Federal
agency prior to providing such material to the Commission.
`(b) CERTAIN FINANCIAL INSTITUTIONS- An entity described in paragraph (1)
of subsection (d) shall, in accordance with section 5318(g)(3) of title
31, United States Code, be exempt from liability for making a voluntary
disclosure to the Commission of any possible violation of law or regulation,
including--
`(1) a disclosure regarding assets, including assets located in foreign
jurisdictions--
`(A) related to possibly fraudulent or deceptive commercial practices;
`(B) related to persons involved in such practices; or
`(C) otherwise subject to recovery by the Commission; or
`(2) a disclosure regarding suspicious chargeback rates related to possibly
fraudulent or deceptive commercial practices.
`(c) CONSUMER COMPLAINTS- Any entity described in subsection (d) that voluntarily
provides consumer complaints sent to it, or information contained therein,
to the Commission shall not be liable to any person under any law or regulation
of the United States, or under the constitution, or any law or regulation,
of any State, political subdivision of a State, territory of the United
States, or the District of Columbia, for such provision of material or for
any failure to provide notice of such provision of material or of intention
to so provide material. This subsection shall not provide any exemption
from liability for the underlying conduct.
`(d) APPLICATION- This section applies to the following entities, whether
foreign or domestic:
`(1) A financial institution as defined in section 5312 of title 31, United
States Code.
`(2) To the extent not included in paragraph (1), a bank or thrift institution,
a commercial bank or trust company, an investment company, a credit card
issuer, an operator of a credit card system, and an issuer, redeemer,
or cashier of travelers' checks, money orders, or similar instruments.
`(3) A courier service, a commercial mail receiving agency, an industry
membership organization, a payment system provider, a consumer reporting
agency, a domain name registrar or registry acting as such, and a provider
of alternative dispute resolution services.
`(4) An Internet service provider or provider of telephone services.'.
SEC. 9. STAFF EXCHANGES.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by adding
after section 25 the following new section:
`SEC. 25A. STAFF EXCHANGES.
`(a) IN GENERAL- The Commission may--
`(1) retain or employ officers or employees of foreign government agencies
on a temporary basis as employees of the Commission pursuant to section
2 of this Act or section 3101 or section 3109 of title 5, United States
Code; and
`(2) detail officers or employees of the Commission to work on a temporary
basis for appropriate foreign government agencies.
`(b) RECIPROCITY AND REIMBURSEMENT- The staff arrangements described in
subsection (a) need not be reciprocal. The Commission may accept payment
or reimbursement, in cash or in kind, from a foreign government agency to
which this section is applicable, or payment or reimbursement made on behalf
of such agency, for expenses incurred by the Commission, its members, and
employees in carrying out such arrangements.
`(c) STANDARDS OF CONDUCT- A person appointed under subsection (a)(1) shall
be subject to the provisions of law relating to ethics, conflicts of interest,
corruption, and any other criminal or civil statute or regulation governing
the standards of conduct for Federal employees that are applicable to the
type of appointment.'.
SEC. 10. INFORMATION SHARING WITH FINANCIAL REGULATORS.
Section 1112(e) of the Right to Financial Privacy Act of 1978 (12 U.S.C.
3412(e)) is amended by inserting `the Federal Trade Commission,' after `the
Securities and Exchange Commission,'.
SEC. 11. AUTHORITY TO ACCEPT REIMBURSEMENTS, GIFTS, AND VOLUNTARY AND
UNCOMPENSATED SERVICES.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended--
(1) by redesignating section 26 as section 28; and
(2) by inserting after section 25A, as added by section 9 of this Act,
the following:
`SEC. 26. REIMBURSEMENT OF EXPENSES.
`The Commission may accept payment or reimbursement, in cash or in kind,
from a domestic or foreign law enforcement agency, or payment or reimbursement
made on behalf of such agency, for expenses incurred by the Commission,
its members, or employees in carrying out any activity pursuant to a statute
administered by the Commission without regard to any other provision of
law. Any such payments or reimbursements shall be considered a reimbursement
to the appropriated funds of the Commission.
`SEC. 27. GIFTS AND VOLUNTARY AND UNCOMPENSATED SERVICES.
`(a) IN GENERAL- In furtherance of its functions the Commission may accept,
hold, administer, and use unconditional gifts, donations, and bequests of
real, personal, and other property and, notwithstanding section 1342 of
10 title 31, United States Code, accept voluntary and uncompensated services.
`(1) CONFLICTS OF INTEREST- The Commission shall establish written guidelines
setting forth criteria to be used in determining whether the acceptance,
holding, administration, or use of a gift, donation, or bequest pursuant
to subsection (a) would reflect unfavorably upon the ability of the Commission
or any employee to carry out its responsibilities or official duties in
a fair and objective manner, or would compromise the integrity or the
appearance of the integrity of its programs or any official involved in
those programs.
`(2) VOLUNTARY SERVICES- A person who provides voluntary and uncompensated
service under subsection (a) shall be considered a Federal employee for
purposes of--
`(A) chapter 81 of title 5, United States Code, (relating to compensation
for injury); and
`(B) the provisions of law relating to ethics, conflicts of interest,
corruption, and any other criminal or civil statute or regulation governing
the standards of conduct for Federal employees.
`(3) TORT LIABILITY OF VOLUNTEERS- A person who provides voluntary and
uncompensated service under subsection (a), while assigned to duty, shall
be deemed a volunteer of a nonprofit organization or governmental entity
for purposes of the Volunteer Protection Act of 1997 (42 U.S.C. 14501
et seq.). Subsection (d) of section 4 of such Act (42 U.S.C. 14503(d))
shall not apply for purposes of any claim against such volunteer.'.
SEC. 12. PRESERVATION OF EXISTING AUTHORITY.
The authority provided by this Act, and by the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) and the Right to Financial Privacy Act (12 U.S.C.
3401 et seq.), as such Acts are amended by this Act, is in addition to,
and not in lieu of, any other authority vested in the Federal Trade Commission
or any other officer of the United States.
SEC. 13. REPORT.
Not later than 3 years after the date of enactment of this Act, the Federal
Trade Commission shall transmit to Congress a report describing its use
of and experience with the authority granted by this Act, along with any
recommendations for additional legislation. The report shall include--
(1) the number of cross-border complaints received by the Commission;
(2) identification of the foreign agencies to which the Commission has
provided nonpublic investigative information under this Act;
(3) the number of times the Commission has used compulsory process on
behalf of foreign law enforcement agencies pursuant to section 6 of the
Federal Trade Commission Act (15 U.S.C. 46), as amended by section 4 of
this Act;
(4) a list of international agreements and memoranda of understanding
executed by the Commission that relate to this Act;
(5) the number of times the Commission has sought delay of notice pursuant
to section 21A of the Federal Trade Commission Act, as added by section
7 of this Act, and the number of times a court has granted a delay;
(6) a description of the types of information private entities have provided
voluntarily pursuant to section 21B of the Federal Trade Commission Act,
as added by section 8 of this Act;
(7) a description of the results of cooperation with foreign law enforcement
agencies under section 21 of the Federal Trade Commission Act (15 U.S.C.
57-2) as amended by section 6 of this Act;
(8) an analysis of whether the lack of an exemption from the disclosure
requirements of section 552 of title 5, United States Code, with regard
to information or material voluntarily provided relevant to possible unfair
or deceptive acts or practices, has hindered the Commission in investigating
or engaging in enforcement proceedings against such practices; and
(9) a description of Commission litigation brought in foreign courts.
Passed the Senate March 16 (legislative day, March 15), 2006.
Attest:
EMILY J. REYNOLDS,
Secretary.
END
