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For Immediate Release
04/08/08
Contact: Rob Blumenthal w/Inouye 202-224-8374
Jenilee Keefe w/Inouye 202-224-7824
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Inouye and Dorgan Introduce Bill to Reauthorize Federal Trade Commission
 
WASHINGTON, D.C. – Commerce Committee Chairman Daniel K. Inouye (D-Hawaii) joined Interstate Commerce, Trade, and Tourism Subcommittee Chairman Byron Dorgan (D-N.D.) to cosponsor the FTC Reauthorization Act of 2008. Introduced today, the measure would reauthorize the Federal Trade Commission (FTC) for the first time since 1996.
 
“I commend Senator Dorgan for his hard work in drafting this bill. His leadership has been central to this process,” said Chairman Inouye. “The bill contains significant improvements to strengthen the Federal Trade Commission’s ability to protect consumers and deter wrong-doers, particularly in the area of e-commerce fraud.  The bill also contains provisions that would expedite Commission processes, resulting in better consumer protection for all Americans.”
 
The FTC Reauthorization Act of 2008 authorizes a 10 percent increase in the FTC’s appropriations each year over the next seven years, grants the FTC greater civil penalty and independent litigation authority, streamlines the process for creating rules against deceptive practices in the subprime mortgage lending arena, and clarifies that state law with more restrictive requirements for intrastate or interstate telemarketing will not be preempted.
The act is attached. A summary of the act’s key provisions is below:
 
  • Reauthorization Levels:  Sets forth authorization levels for seven years starting at $264 million in 2009 and increasing at a rate of 10 percent per year to reach a level of $467.7 million in 2015. Of the total authorized, $10 million is provided for each of fiscal years 2009 through 2015 to continue and enhance the Commission’s provision of international technical assistance. In addition to the annual authorized levels, a total of $20 million is authorized for use during 2009 through 2015 to improve technology in support of the Commission’s consumer protection and competition missions.

 

  • Independent Litigation Authority:  The bill provides the FTC with the authority to litigate any civil action involving the Federal Trade Commission Act (FTC Act). Under current law, the Commission may litigate certain cases in its own name, but the majority of the cases are brought by attorneys at the Department of Justice often with the assistance of FTC attorneys who possess the needed technical expertise. 
 
  • Specialized Administrative Law Judges:  Authorizes the Commission to give preference to administrative law judges (ALJs) who have relevant antitrust or trade regulation litigation experience, and requires the Office of Personnel Management to accommodate such a request, to the maximum extent possible. Currently, there is no mandate that the FTC’s ALJs have technical expertise in consumer protection matters. 
 
  • Civil Penalty Authority:  Expands the Commission’s authority to recover civil penalties for any violation of the FTC Act. Currently, the FTC is limited to recovering civil penalties for violations of a rule or a final cease and desist order with respect to an unfair or deceptive act or practice.
 
  • Application of the FTC Act to Non-Profits:  Expands the Commission’s authority to regulate non-profits for unfair or deceptive acts or practices. Currently, some non-profits have used their tax-exempt status as a shield to block FTC enforcement action. 
 
  • Makes Aiding and Abetting a Violation: Allows the Commission to hold entities accountable that aid or abet another in violating any law enforced by the FTC. 
 
  • Streamlines Rulemaking Process:  Allows the Commission, by majority vote of the full Commission, to promulgate rules under the Administrative Procedure Act (APA) instead of the lengthy procedure set forth in the Magnuson-Moss Act. This provision would help the Commission to conduct rulemakings with respect to any consumer protection matter at a more expedited pace. For rules regarding subprime mortgage lending and nontraditional mortgage loans, the FTC would be required to utilize APA procedures.
 
  • Inclusion of All Banking Agencies Under the FTC Act:  Increases the number of federal agencies permitted to promulgate rules regarding unfair or deceptive financial acts or practices under the FTC Act. When these financial regulators promulgate rules under the FTC Act, the FTC would be permitted to promulgate similar rules utilizing APA rulemaking procedures. 
 
  • Enforcement of State Attorneys General:  Allows State attorneys general (AGs) to bring cases under the FTC Act to seek civil penalties, disgorgement or injunctions against bad actors. State AGs must provide notice to the FTC regarding their intent to bring suit, and may not bring a case if the FTC has initiated a civil action or an administrative action. 
 
  • Harmonization of the National Do-Not-Call Registry:  Clarifies that states have the right to maintain their own do-not-call registries, if a state’s registry imposes stricter requirements on telemarketers than those imposed by the federal registry. 
 
  • Common Carrier Exception:  Repeals the telecommunications common carrier exemption. Currently, common carriers subject to the Communications Act of 1934 are exempt from the requirements of the Federal Trade Commission Act. The legislation repeals this exemption, allowing the Commission to protect consumers from unfair and deceptive acts or practices by telecommunications common carriers, particularly in the areas of advertising, marketing, and billing.
 
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April 2008 Press Releases  « March | May »   « 2007 | 2009 » 
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28th -  Science Subcommittee Announces NASA Reauthorization Hearing
28th -  Commerce Committee to Hear Testimony from DOC General Counsel, Assistant Secretary Nominees
25th -  Commerce Committee Weekly Roundup for April 21 - 25, 2008
25th -  Commerce Committee Announces Witnesses for Hearing on Consumer Protections in Subprime Lending
25th -  Senator Stevens Pleased to See DOT Moving Forward on Increasing Fuel Economy
24th -  Inouye and Stevens Introduce Measure to Help Prevent Illegal Seafood from Entering U.S.
24th -  Commerce Committee Reports Inouye-Stevens Commercial Seafood Protection Act
24th -  Commerce Committee Approves Resolution Disapproving FCC Rule on Broadcast Media Ownership
24th -  Stevens Introduces Legislation to Combat Phantom Traffic
24th -  Commerce Committee Approves Maritime Pollution Prevention Act Sponsored by Senator Stevens
24th -  Senate Commerce Committee Approves Inouye-Stevens Legislation to Address Seafood Safety
23rd -  Commerce Committee Announces Aviation Hearing
22nd -  Inouye Seeks to Ensure Broadband and the Benefits of the Internet Reach All Americans
21st -  FCC Chairman Martin Added to Future of the Internet Hearing
18th -  Commerce Committee Announces Witnesses for Future of the Internet Hearing
18th -  Commerce Committee Announces Witnesses for Phantom Traffic Hearing
18th -  Commerce Committee Announces Witnesses for Hearing on Moving Passengers and Freight into the Future
18th -  Science Subcommittee Announces Witnesses for Reauthorization Hearing on National Nanotechnology Initiative
17th -  Senate Commerce Committee Announces April 24 Markup Agenda
15th -  Commerce Committee Announces Hearing to Review National Surface Transportation Policy and Revenue Study
11th -  Commerce Committee to Explore the Future of the Internet
11th -  Science Subcommittee to Hold Reauthorization Hearing on National Nanotechnology Initiative
11th -  Commerce Committee Weekly Roundup for April 11th, 2008
11th -  Interstate Commerce Subcommittee to Examine Improving Consumer Protections in Subprime Lending
10th -  Inouye Aims to Ensure Hawaii’s Air Service Remains Strong
10th -  Stevens Advises FAA to Adopt Alaskan Tested Aviation Safety Programs
10th -  Inouye Seeks Answers to Recent Airline Safety Gaps
10th -  Commerce Committee Announces Additional Witnesses for Hearing on Hawaii’s Air Service Market
10th -  Stevens Sponsored Resolution to Make April 2008 “National 9-1-1 Education Month” Passes Senate
10th -  Stevens Commends FCC for Implementing Wireless Emergency Alert System
9th -  Senator Stevens Honored for His Work on Safety Issues Involving Kids and Motor Vehicles
9th -  Commerce Committee Announces Witnesses for Hearing on Hawaii’s Air Service Market
8th -  Stevens Advises FCC and NTIA that DTV Transition Should be Their Top Priority
8th -  Inouye Expresses Concern about Coming DTV Transition
8th -  current Press Release
7th -  Commerce Committee Announces Full Committee Hearing on Challenges Facing Hawaii’s Air Service Market
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4th -  Commerce Committee Weekly Roundup for April 4th, 2008
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2nd -  Senate Commerce Committee Postpones April 2 Markup
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