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Pallone on Committee Passage of Legislation Restoring FTC’s 13(b) Consumer Protection Powers

Jun 10, 2021
Press Release

Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ) released the following statement today after the full Committee voted to pass H.R. 2668, the Consumer Protection and Recovery Act, to restore the Federal Trade Commission’s (FTC) 13(b) consumer protection powers:

“The Consumer Protection and Recovery Act will restore the FTC’s authority to go to court to get victimized consumers and businesses their money back from lawbreakers after the Supreme Court gutted the agency’s authority earlier this year. The Supreme Court’s decision swung the door wide open for crooks to target consumers and made clear Congress alone has the power to come together to fix this crisis.  

“This pro-consumer legislation will ensure that the FTC remains the premier consumer protection agency in the world while providing a framework that protects the due process rights of defendants. I’m especially grateful to Consumer Protection and Commerce Subcommittee Chair Schakowsky and Vice Chair Cárdenas for their leadership and dedication to protecting consumers and look forward to continuing to work together to get this important legislation passed and signed into law.”

H.R. 2668, the "Consumer Protection and Recovery Act," was introduced by Rep. Tony Cárdenas (D-CA) and is cosponsored by every Democrat on the Consumer Protection and Commerce Subcommittee. The bill would amend section 13(b) of the Federal Trade Commission Act to provide the FTC with express authority to obtain both injunctive and monetary equitable relief for all violations of those laws it enforces. The bill would add a new subsection (e) to section 13 of the FTC Act that specifies types of equitable relief the FTC may pursue: restitution for losses, contract reformation and recission, money refunds, and the return of property. The new subsection (e) also provides the FTC disgorgement authority to seek court orders requiring bad actors repay unjust gains acquired in violation of law. The bill would also provide that the FTC may seek temporary restraining orders and preliminary injunctions without bond and that any relief sought under section 13(b) may be for past violations in addition to ongoing and imminent violations. The bill was passed by a vote of 30-22.