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S. 5117IntroducedSenate · nowHousePresidentLawIn committee
Sec. 5 · S. 5117

Enforcement

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(a) Enforcement by the Commission (1) Unfair or deceptive acts or practices A violation of section 3 or 4 shall be treated as a violation of a rule defining an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). (2) Powers of the Commission (A) In general The Commission shall enforce sections 3 and 4 in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act. (B) Privileges and immunities Any covered entity that violates section 3 or 4, or a regulation promulgated thereunder, shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act (15 U.S.C. 41 et seq.). (C) Authority preserved Nothing in this Act shall be construed to limit the authority of the Commission under any other provision of law. (3) Opportunity to cure (A) In general Before initiating an enforcement action for a first violation of section 3 or 4, the Commission shall provide the covered entity that is in violation— (i) a written notice identifying the alleged violation; and (ii) 60 days to cure such violation. (B) Effect of cure If a covered entity that receives a notice described in subparagraph (A) cures the violation subject to such notice within the period described in such subparagraph and provides written certification that the violation has been cured and will not recur, the Commission may not seek civil penalties with respect to such violation. (C) Exceptions Subparagraphs (A) and (B) shall not apply if the Commission determines that the violation— (i) involved intentional deception; (ii) created a substantial risk of imminent harm; or (iii) constitutes a repeated or ongoing violation. (b) Civil penalties In addition to any other penalties as may be prescribed by law, each knowing or reckless violation of section 3, or a regulation promulgated under section 3, shall be subject to a civil penalty not to exceed $50,000 for each such violation. (c) State enforcement (1) In general In any case in which the attorney general of a State has reason to believe that an interest of the residents of the State has been or is threatened or adversely affected by the engagement of a covered entity in an act or practice that violates section 3, or a regulation promulgated thereunder, the attorney general of the State may, as parens patriae, bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction to— (A) enjoin such act or practice; (B) enforce compliance with section 3 or a regulation promulgated thereunder; (C) obtain damages, civil penalties, restitution, or other compensation on behalf of residents of the State; or (D) obtain such other legal or equitable relief as the court may consider to be appropriate. (2) Rights of the Commission (A) Notice to the Commission (i) In general Except as provided in clause (iii), before initiating a civil action under paragraph (1), the attorney general of a State shall notify the Commission in writing that the attorney general intends to bring such civil action. (ii) Contents The notification required by clause (i) shall include a copy of the complaint to be filed to initiate the civil action. (iii) Exception If it is not feasible for the attorney general of a State to provide the notification required by clause (i) before initiating a civil action under paragraph (1), the attorney general shall notify the Commission immediately upon instituting the civil action. (B) Intervention by the Commission Upon receiving the notice required by subparagraph (A)(i), the Commission may intervene in the civil action and, upon intervening— (i) be heard on all matters arising in the civil action; and (ii) file petitions for appeal of a decision in the civil action. (3) Investigatory powers Nothing in this subsection may be construed to prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of the State to conduct investigations, to administer oaths or affirmations, or to compel the attendance of witnesses or the production of documentary or other evidence. (4) Limitation on State action while Commission action is pending If the Commission has instituted a civil action for a violation of section 3, no State attorney general may bring a civil action under paragraph (1) during the pendency of that action against any defendant named in the complaint of the Commission for any violation of section 3 alleged in that complaint. Nothing in this paragraph shall be construed to prohibit a State attorney general from bringing or continuing an action under State law. (5) Venue; service of process (A) Venue Any action brought under paragraph (1) may be brought in the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code. (B) Service of process In an action brought under paragraph (1), process may be served in any district in which the defendant— (i) is an inhabitant; or (ii) may be found. (6) Actions by other State officials In addition to a civil action brought by an attorney general under paragraph (1), any other consumer protection officer of a State who is authorized by the State to do so may bring a civil action under paragraph (1), subject to the same requirements and limitations that apply under this subsection to a civil action brought by an attorney general. (d) Savings clause Nothing in this Act or any regulation promulgated thereunder shall be construed to prohibit or otherwise affect the enforcement of any State law or regulation that is at least as protective of users as this Act and the regulations promulgated thereunder.