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June 30, 197O

      CLASS ACTION
  Sections 201 and 207 of
Committee Print #2, As Revised

TITLE II -- EIWORCEMENT OF CONSUMER
         INTERESTS

UNFAIR OR DECEPTIVE ACTS OR PRACTICES

SEC. 201.  As used in this title --

  b>  "unfair consumer practice" means any of the following
acts or practices --

  (1)  offering goods or services intending not to sell
them as offered;

  (2) advertising goods or services intending not to
supply reasonably expectable public demand, unless the
advertisement discloses a limitation;

  (3) knowingly making false or misleading statements
concerning the need for, or necessity of, any goods,
services, replacements, or repairs;

  (4)  representing that the consumer will obtain any
rights, privileges, or remedies knowing that the consumer
will not;

  (5)  representing that goods are new knowing that
they are not;

  (6)  representing that goods are of a particular
standard, grade, quality, style, or model knowing they
are not;

  (7) knowingly making false or mislea'ding statements
concerning (i) the reason for, existence of, or amounts
of price reductions, or (ii) savings in comparison to prices
of competitors or one's own price;

  (8)  representing that goods or services are those
of another, knowing they are not;

  (9) fialing to return or refund a deposit or advance
payment for goods not delivered or services not rendered,
when no default or further obligation of the person making
such deposit or advance payment exists;


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  (10) knowingly representing that goods or services
have sponsorship, approval, origin, characteristics of
safety or performance, ingredients, uses, benefits, or
quantities that they do not have, or that a person has a
sponsorship, approval, status, affiliation, or connection
that he does not have except that the conduct described
in this paragraph (lb) shall not be an unfair consumer
practice if the supplier shows that an affirmation merely
of the value of the goods or services or a statement of his
opinion of the goods or services, or similar statements did
not take unfair advantage of the level of knowledge, ability,
experience, or capacity of the consumer;

  (11) taking consideration for goods or services intending
not to deliver such goods or perform such services, or
intending the deliver goods or provide services materially
different from those ordered or sold;

  (12) knowingly making false or misleading statements
concerning the profitability, risk, or any other material
aspect of any home-operated business opportunity or venture;

  03)  offering gifts, prizes, free items, or other
gratuities, intending not to provide them as offered in
connection with a sale of goods or services to a consumer;

  (14) knowingly making false or misleading statements
concerning the existence, terms, or probability of any
rebate, additional goods or services, commission, or discount
offered as an inducement for any sale of goods or services
in return for giving the supplier the names of prospective
consumers or otherwise helping the offeror to enter into any
other consumer transaction;

  05)  using physical force, threat of physical force,
undue harassment, intimidation, or coercion in dealing
with consumers; and

  O-6)  any other unfair or deceptive act or practice
prohibited by rule or regulation promulgated by the Federal
Trade Commission under section 6 (g) of the Federal Trade
Commission Act, as amended by this Act.

  (b) "knowing", "knowingly", and ilknowledge" refers to
actual knowledge, knowledge presumed where objective circumstances
indicate that the supplier acted with knowledge, or knowledge
presumed where circumstances indicate that the supplier acted in
disregard of reasonable safeguards or care in ascertaining the
truth of representations made;


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  (4  "consumer" means any natural person who is offered or
supplied goods or services for personal, family, or household
purposes;

  (d)  "supplier" means any person who makes goods or services
available to consumers, either directly or indirectly;

  (e) "goods" includes real property, but does not include
securities or interest in securities;

  w  "services" includes insurance services and similar
provisions of intangibles, but not the providing of credit to the
extent that credit is regulated under the Truth in Lending Act
(15 U.S.C. 1601 et seq.); and

  (d  "statement" means any representation in advertising, any
oral or visual presentation, or any other conduct intended to
Communicate to consumers,

SUITS BY CONSUMERS ADVERSELY AFFECTED

  SEC. 207. (a) When a supplier, (i) in any action brought by
the Attorney General under section 205 of this title, has been
enjoined from committing any unfair consumer practice, whether after
final adjudication or by consent decree, or (ii) if any proceeding
brought by the Federal Trade Commission under section 5 of the
Federal Trade Commission Act with respect to acts or practices
alleged to be unfair consumer practices within the meaning of
section 201 of this title, has been ordered to cease and desist
from that act or practice, and the order shall have become final
within the meaning of section 5, either after adjudication or by
consent decree; any consumer claiming to have been adversely affected
by the act or practice giving rise to such injunction may bring
suit against said supplier.

  (b)(l) Notwithstanding subsection (a), a consumer who has
been injured by an unfair consumer practice as defined in Section
201 of this title may sue as a representative party on behalf of all
for redress of such injury ninety days after the date on which the
Federal Trade Commission has been notified of such act or practice
if such action may be maintained as a class action under the Federal
Rules of Civil Procedure, except that no consumer shall be a member
of such class unless he shall have paid or become obligated for an
amount greater than $10 as a result of such act or practice,


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  (2) Any action under this subsection may be brought in the
district courts of the United States and shall be governed by the
Federal Rules of Civil Procedure.

  (c) Wllenever a consumer shall prevail in an action brought
pursuant to this section, he shall be allowed to recover in addition
to damages the costs of suit, including attorneys' fees,  Such costs
may be awarded from money damages -- which the defendant owes to
members of the class who cannot be located with due diligence,
Upon termination of a class action under this section, whether by
judgment, settlement or compromise, the court shall inquire into
the reasonableness of attorneys' fees charged and revise such fees
where necessary to assure a reasonable relationship, taking into
\:onsideration the contingency of compensation, between such fees and
the actual time spent by attorneys in preparation and prosecution
of the action. If the court determines that any class action brought
pursuant to this section has been brought frivolously, with knowledge
that the claim lacks probable cause and with intent to harass or
intimidate the defendant, the court may in its discretion award the
defendant the cost of defending the suit, including a reasonable
attorney's fee,

  (d) An action to enforce any claim under this section shall
be forever barred uniess commenced within three years after the
claim arose,