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H.R. 2243 (103rd): Federal Trade Commission Act Amendments of 1994

The text of the bill below is as of Sep 22, 1993 (Passed the Senate with an Amendment).


HR 2243 EAS

In the Senate of the United States,

September 22 (legislative day, September 7), 1993.

Resolved, That the bill from the House of Representatives (H.R. 2243) entitled ‘An Act to to amend the Federal Trade Commission Act to extend the authorization of appropriations in such Act, and for other purposes’, do pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

SECTION. 1. SHORT TITLE.

    This Act may be cited as the ‘Federal Trade Commission Act Amendments of 1993’.

SEC. 2. UNFAIR METHODS OF COMPETITION.

    Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is amended by adding at the end the following new subsection:

    ‘(n) The Commission shall not have any authority to find a method of competition to be an unfair method of competition under subsection (a)(1) if, in any action under the Sherman Act (15 U.S.C. 1 et seq.), such method of competition would be held to constitute State action.’.

SEC. 3. AGRICULTURAL COOPERATIVES.

    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended by redesignating sections 24 and 25 as sections 26 and 27, respectively, and by inserting immediately after section 23 the following new section:

    ‘SEC. 24. (a) The Commission shall not have any authority to conduct any study, investigation, or prosecution of any agricultural cooperative for any conduct which, because of the provisions of the Act entitled ‘An Act to authorize association of producers of agricultural products’, approved February 18, 1922 (7 U.S.C. 291 et seq., commonly known as the Capper-Volstead Act), is not a violation of any of the antitrust Acts or this Act.

    ‘(b) The Commission shall not have any authority to conduct any study or investigation of any agricultural marketing orders.’.

SEC. 4. COMPENSATION IN PROCEEDINGS.

    (a) REPEAL- Section 18(h) of the Federal Trade Commission Act (15 U.S.C. 57a(h)) is repealed, and subsections (i), (j), and (k) of section 18 are redesignated as subsections (h), (i), and (j), respectively.

    (b) CONFORMING AMENDMENT- Section 18(a)(1) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)) is amended by striking ‘’subsection (i)’ and inserting in lieu thereof ‘subsection (h)’.

SEC. 5. KNOWING VIOLATIONS OF ORDERS.

    (a) EXCEPTION FOR CONSENT ORDERS- Section 5(m)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 45(m)(1)(B)) is amended by inserting ‘, other than a consent order,’ immediately after ‘order’ the first time it appears.

    (b) REVIEW OF DETERMINATIONS OF LAW- Section 5(m)(2) of the Federal Trade Commission Act (15 U.S.C. 45(m)(2)) is amended by adding at the end of the following: ‘Upon request of any party to such an action against such defendant, the court shall also review the determination of law made by the Commission in the proceeding under subsection (b) that the act or practice which was the subject of such proceeding constituted an unfair or deceptive act or practice in violation of subsection (a).’.

SEC. 6. PREVALENCE OF UNLAWFUL ACTS OR PRACTICES.

    Section 18(b) of the Federal Trade Commission Act (15 U.S.C. 57a(b)) is amended by adding at the end the following new paragraph:

    ‘(3) The Commission shall issue a notice of proposed rulemaking pursuant to paragraph (1)(A) only where it has reason to believe that the unfair or deceptive acts or practices which are the subject of the proposed rulemaking are prevalent. The Commission shall make a determination that unfair or deceptive acts or practices are prevalent under this paragraph only if it has issued cease and desist orders regarding such acts or practices, or any other information available to the Commission indicates a pattern of unfair or deceptive acts or practices.’.

SEC. 7. EFFECTIVE DATE OF ORDERS.

    (a) ORDERS SUBJECT TO PETITION FOR REVIEW- Section 5(g)(2) of the Federal Trade Commission Act (15 U.S.C. 45(g)(2)) is amended to read as follows:

      ‘(2) Except as to any order provision subject to paragraph (4), upon the sixtieth day after such order is served, if a petition for review has been duly filed; except that any such order may be stayed, in whole or in part and subject to such conditions as may be appropriate, by--

        ‘(A) the Commission;

        ‘(B) an appropriate court of appeals of the United States, if (i) a petition for review of such order is pending in such court, and (ii) an application for such a stay was previously submitted to the Commission and the Commission, within the thirty-day period beginning on the date the application was received by the Commission, either denied the application or did not grant or deny the application; or

        ‘(C) the Supreme Court, if an applicable petition for certiorari is pending; or’.

    (b) ORDERS SUBJECT TO SECTIONS 5(m)(1)(B) AND 19(a)(2) OF FTCA- Section 5(g)(3) of the Federal Trade Commission Act (15 U.S.C. 45(g)(3)) is amended to read as follows:

      ‘(3) For purposes of subsection (m)(1)(B) and of section 19 (a)(2), if a petition for review of the order of the Commission has been filed--

        ‘(A) upon the expiration of the time allowed for filing a petition for certiorari, if the order of the Commission has been affirmed or the petition for review has been dismissed by the court of appeals and no petition for certiorari has been duly filed;

        ‘(B) upon the denial of a petition for certiorari, if the order of the Commission has been affirmed or the petition for review has been dismissed by the court of appeals; or

        ‘(C) upon the expiration of thirty days from the date of issuance of a mandate of the Supreme Court directing that the order of the Commission be affirmed or the petition for review be dismissed; or’.

    (c) DIVESTITURE ORDERS- Section 5(g)(4) of the Federal Trade Commission Act (15 U.S.C. 45(g)(4)) is amended to read as follows:

      ‘(4) In the case of an order provision requiring a person, partnership, or corporation to divest itself of stock, other share capital, or assets, if a petition for review of such order of the Commission has been filed--

        ‘(A) upon the expiration of the time allowed for filing a petition for certiorari, if the order of the Commission has been affirmed or the petition for review has been dismissed by the court of appeals and no petition for certiorari has been duly filed;

        ‘(B) upon the denial of a petition for certiorari, if the order of the Commission has been affirmed or the petition for review has been dismissed by the court of appeals; or

        ‘(C) upon the expiration of thirty days from the date of issuance of a mandate of the Supreme Court directing that the order of the Commission be affirmed or the petition for review be dismissed.’.

SEC. 8. CIVIL INVESTIGATIVE DEMANDS.

    (a) DEFINITIONS- Section 20(a) of the Federal Trade Commission Act (15 U.S.C. 57b-1(a)) is amended--

      (1) in paragraph (2), by inserting ‘, or in any antitrust violations’ immediately after ‘section 5(a)(1))’;

      (2) in paragraph (3), by inserting ‘or any provisions relating to antitrust violations’ immediately after ‘section 5(a)(1))’;

      (3) in paragraph (7), by inserting ‘, or any antitrust violation’ immediately after ‘section 5(a)(1))’; and

      (4) by adding at the end the following new paragraph:

      ‘(8) The term ‘antitrust violation’ means any unfair method of competition (within the meaning of section 5(a)(1)); any violation of the Clayton Act; any violation of any other Federal statute that prohibits, or makes available to the Commission a civil remedy with respect to, any restraint upon or monopolization of interstate or foreign trade or commerce; or any activity in preparation for a merger, acquisition, joint venture, or similar transaction, which if consummated, may result in such an unfair method of competition or violation.’.

    (b) ISSUANCE OF DEMAND- (1) Section 20 (c)(1) of the Federal Trade Commission Act (15 U.S.C. 57b-1 (c)(1)) is amended--

      (A) by inserting ‘or tangible things’ immediately after ‘documentary material’ the first place it appears;

      (B) by inserting ‘or to antitrust violations,’ immediately after ‘section 5 (a)(1)) ,’; and

      (C) by inserting ‘to submit such tangible things,’ immediately after ‘copying or reproduction,’.

    (2) Section 20(c) of the Federal Trade Commission Act (15 U.S.C. 57b-1 (c)) is amended--

      (A) by redesignating paragraphs (4), (5), (6), (7), (8), (9), (10), (11), and (12) as paragraphs (5), (6), (7), (8), (9), (10), (11), (13), and (14), respectively;

      (B) by inserting immediately after paragraph (3) the following new paragraph:

    ‘(4) Each civil investigative demand for the submission of tangible things shall--

      ‘(A) describe each class of tangible things to be submitted under the demand with such definiteness and certainty as to permit such things to be fairly identified;

      ‘(B) prescribe a return date or dates which will provide a reasonable period of time within which the things so demanded may be assembled and submitted; and

      ‘(C) identify the custodian to whom such things shall be submitted.’; and

      (C) by inserting immediately after paragraph (11), as so redesignated, the following new paragraph:

    ‘(12) The submission of tangible things in response to a civil investigative demand shall be made under a sworn certificate, in such form as the demand designates, by the person to whom the demand is directed or, if not a natural person, by any person having knowledge of the facts and circumstances relating to such production, to the effect that all of the physical evidence required by the demand and in the possession, custody, or control of the person to whom the demand is directed has been submitted to the custodian.’.

    (c) APPLICABILITY OF SECTION 20 OF FTCA- Section 20(j)(1) of the Federal Trade Commission Act (15 U.S.C. 57b-1(j)(1)) is amended by inserting immediately before the semicolon the following: ‘, any proceeding under section 11(b) of the Clayton Act (15 U.S.C. 21(b)), or any adjudicative proceeding under any other provision of law’.

SEC. 9. COMMISSION CUSTODY OF TANGIBLE THINGS.

    Section 21 of the Federal Trade Commission Act (15 U.S.C. 57b-2) is amended--

      (1) in subsection (a)(1), by inserting ‘tangible things,’ immediately after ‘documentary material,’;

      (2) in subsection (b)(1), by inserting ‘, tangible thing,’ immediately after ‘document’;

      (3) in subsection (b)(2)(A), by inserting ‘tangible things,’ immediately after ‘material,’;

      (4) in subsection (b)(3)--

        (A) in subparagraph (A), by inserting ‘tangible things,’ immediately after ‘documentary material,’;

        (B) in subparagraph (B), by inserting ‘, and may make tangible things available,’ immediately after ‘oral testimony’; and by inserting ‘, things,’ immediately after ‘such material’;

        (C) in subparagraph (C), by inserting ‘tangible things,’ immediately after ‘documentary material,’; and

        (D) in subparagraph (D), by inserting ‘, tangible things,’ immediately after ‘documentary material’;

      (5) in subsection (b)(4), by inserting ‘tangible things,’ immediately after ‘documentary material,’;

      (6) in subsection (b)(5), by inserting ‘tangible things,’ immediately after ‘documentary material,’;

      (7) in subsection (b)(6)--

        (A) by inserting immediately after the first sentence the following new sentence: ‘The custodian of any tangible things may make such things available for inspection to such persons on the same basis.’; and

        (B) by inserting ‘results of inspections of tangible things,’ immediately after ‘Such documentary material,’; and

      (8) in subsection (b)(7), by inserting ‘tangible things,’ immediately after ‘documentary material,’.

SEC. 10. DEFINITION OF UNFAIR ACTS OR PRACTICES.

    Section 5 of the Federal Trade Commission Act (15 U.S.C. 45), as amended by section 2 of this Act, is further amended by adding at the end the following new subsection:

    ‘(o) The Commission shall have no authority under this section or section 18 to declare unlawful an act or practice on the grounds that such act or practice is unfair unless the act or practice causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers themselves and not outweighed by countervailing benefits to consumers or to competition.’.

SEC. 11. COMMERCIAL ADVERTISING.

    Section 18(h) of the Federal Trade Commission Act (15 U.S.C. 57a(h)), as so redesignated in section 4(a) of this Act, is amended by adding at the end the following: ‘The Commission shall have no authority under this section to initiate any new rulemaking proceeding which is intended to or may result in the promulgation of any rule by the Commission which prohibits or otherwise regulates any commercial advertising on the basis of a determination by the Commission that such commercial advertising constitutes an unfair act or practice in or affecting commerce.’.

SEC. 12. VENUE AND SERVICE OF PROCESS.

    (a) AUTHORITY TO SERVE CERTAIN PERSONS- (1) Section 13(a) of the Federal Trade Commission Act (15 U.S.C. 53(a)) is amended by striking the last sentence and inserting in lieu thereof the following: ‘Any suit may be brought where such person, partnership, or corporation resides or transacts business, or wherever venue is proper under section 1391 of title 28, United States Code. In such a suit, the court may, if the court determines that the interests of justice require that any other person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or corporation to be summoned without regard to whether it resides or transacts business in the district in which the suit is brought. In any suit under this section, process may be served on any person, partnership, or corporation wherever it may be found.’.

    (2) Section 13(b) of the Federal Trade Commission Act (15 U.S.C. 53(b)) is amended by striking the last sentence and inserting in lieu thereof the following: ‘Any suit may be brought where such person, partnership, or corporation resides or transacts business, or wherever venue is proper under section 1391 of title 28, United States Code. In such a suit, the court may, if the court determines that the interests of justice require that any other person, partnership, or corporation should be a party in such suit, cause such other person, partnership, or corporation to be summoned without regard to whether it resides or transacts business in the district in which the suit is brought. In any suit under this section, process may be served on any person, partnership, or corporation wherever it may be found.’.

    (b) PROCEDURES FOR SERVING PROCESS- Section 13 of the Federal Trade Commission Act (15 U.S.C. 53) is amended--

      (1) by redesignating subsection (c) as subsection (d); and

      (2) by inserting immediately after subsection (b) the following new subsection:

    ‘(c) Any process of the Commission under this section may be served by any person duly authorized by the Commission--

      ‘(1) by delivering a copy of such process to the person to be served, to a member of the partnership to be served, or to the president, secretary, or other executive officer or a director of the corporation to be served;

      ‘(2) by leaving a copy of such process at the residence or the principal office or place of business of such person, partnership, or corporation; or

      ‘(3) by mailing a copy of such process by registered mail or certified mail addressed to such person, partnership, or corporation at his, or her, or its residence, principal office, or principal place or business.

    The verified return by the person serving such process setting forth the manner of such service shall be proof of the same.’.

SEC. 13. REPORT ON RESALE PRICE MAINTENANCE.

    (a) REPORT TO CONGRESS- The Federal Trade Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and to the Committee on Energy and Commerce of the House of Representatives the information specified in subsection (b) every six months during each of the fiscal years 1994, 1995, and 1996. Each such report shall contain such information for the period since the last submission under this section.

    (b) CONTENTS OF REPORT- Each such report shall list and describe, with respect to instances in which resale price maintenance has been suspected or alleged--

      (1) each complaint made, orally or in writing, to the offices of the Commission;

      (2) each preliminary investigation opened or closed at the Commission;

      (3) each formal investigation opened or closed at the Commission;

      (4) each recommendation for the issuance of a complaint forwarded by the staff to the Commission;

      (5) each complaint issued by the Commission pursuant to section 5 of the Federal Trade Commission Act (15 U.S.C. 45);

      (6) each opinion and order entered by the Commission;

      (7) each consent agreement accepted provisionally or finally by the Commission;

      (8) each request for modification of an outstanding Commission order filed with the Commission;

      (9) each recommendation by staff pertaining to a request for modification of an outstanding Commission order; and

      (10) each disposition by the Commission of a request for modification of an outstanding Commission order.

    Such report shall include the sum total of matters in each category specified in paragraphs (1) through (10), and copies of all such consent agreements and complaints executed by the Commission. Where a matter has been closed or terminated, the report shall include a statement of the reasons for that disposition. The description required under this subsection shall be as complete as possible but shall not reveal the identity of persons or companies making the complaint or those complained about or those subject to investigation that have not otherwise been made public.

SEC. 14. REPORT ON PREDATORY PRICING PRACTICES.

    (a) REPORT TO CONGRESS- The Federal Trade Commission shall submit to the Committee on Commerce, Science, and Transportation of the Senate and to the Committee on Energy and Commerce of the House of Representatives the information specified in subsection (b) every six months during each of the fiscal years 1994, 1995, and 1996. Each such report shall contain such information for the period since the last submission under this section.

    (b) CONTENTS OF REPORT- Each such report shall list and describe, with respect to instances in which predatory pricing practices have been suspected or alleged--

      (1) each complaint made, orally or in writing, to the offices of the Commission;

      (2) each preliminary investigation opened or closed at the Commission;

      (3) each formal investigation opened or closed at the Commission;

      (4) each recommendation for the issuance of a complaint forwarded by the staff to the Commission;

      (5) each complaint issued by the Commission;

      (6) each opinion and order entered by the Commission;

      (7) each consent agreement accepted provisionally or finally by the Commission;

      (8) each request for modification of an outstanding Commission order filed with the Commission;

      (9) each recommendation by staff pertaining to a request for modification of an outstanding Commission order; and

      (10) each disposition by the Commission of a request for modification of an outstanding Commission order.

    Such report shall include copies of all such consent agreements and complaints executed by the Commission referred to in such report. Where a matter has been closed or terminated, the report shall include a statement of the reasons for that disposition. The descriptions required under this subsection shall be as complete as possible but shall not reveal the identity of persons or companies making the complaint or those complained about or those subject to investigation that have not otherwise been made public. The report shall include any evaluation by the Commission of the potential impacts of predatory pricing upon businesses (including small businesses).

SEC. 15. INTERVENTION BY COMMISSION IN CERTAIN PROCEEDINGS.

    (a) LIMITATION ON USE OF AUTHORIZED FUNDS- The Federal Trade Commission shall not have any authority to use any funds which are authorized to be appropriated to carry out the Federal Trade Commission Act (15 U.S.C. 41 et seq.) for fiscal years 1994, 1995, and 1996, for the purpose of submitting statements to, appearing before, or intervening in the proceedings of, any Federal or State agency or State legislative body concerning proposed rules or legislation that the agency or legislative body is considering unless the Commission advises the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives regarding such action as soon as possible.

    (b) CONTENTS OF NOTICE TO CONGRESS- The notice required in subsection (a) shall include the name of the agency or legislator involved, the date of such action, and a concise statement regarding the nature and purpose of such action.

SEC. 16. RESOURCE ALLOCATION STUDY.

    The Federal Trade Commission shall conduct an evaluation of the level of its personnel resources and the manner in which such resources are allocated. The Commission shall study--

      (1) whether overall resources at the Commission are adequate to fulfill the Commission’s responsibilities in the areas of competition and consumer protection;

      (2) the distribution of personnel to individual offices of commissioners, departments, bureaus, and other units within the Commission, and whether the current allocation of personnel most efficiently enables the Commission to fulfill its statutory mandate;

      (3) the number of personnel in supervisory positions, contrasted with those personnel in nonsupervisory positions; and

      (4) whether the amount of workyears devoted to research activities should be increased, and what results (if any) such an increase would produce.

    The Commission shall transmit the results of such study, together with any recommendations that the Commission determines appropriate, to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives not later than six months after the date of enactment of this Act.

SEC. 17. FEDERAL-STATE COOPERATION.

    The Federal Trade Commission shall review its statutory responsibilities to identify those matters within its jurisdiction where Federal enforcement is particularly necessary or desirable, and those areas that might more effectively be enforced at the State or local level. In identifying such areas, the Commission shall--

      (1) consider the resources available to the Commission and the States, as well as particular rules that have been promulgated by the Commission;

      (2) consult with the attorneys general of the States, representatives of consumers and industry, and other interested parties; and

      (3) consider such other issues as will result in more efficient implementation of the statutory responsibilities of the Commission.

    Not later than six months after the date of enactment of this Act, the Federal Trade Commission shall transmit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Energy and Commerce of the House of Representatives the information identified in paragraphs (1) through (3), together with specific recommendations for methods of achieving greater cooperation between the Commission and the States.

SEC. 18. CREDIT REPAIR ORGANIZATIONS AND LOAN BROKERS.

    (a) DEFINITIONS- In this section, the following terms apply:

      (1)(A) The term ‘advance fee’ means any fee (including any advance payment of interest or other fees for any extension of consumer credit) which is assessed or collected by a loan broker from any person seeking the consumer credit before the extension of such credit.

      (B) The term ‘advance fee’ does not include--

        (i) any amount that the loan broker can demonstrate is collected solely for the purpose of payment to unaffiliated, third party vendors for actual expenses incurred and payable before the extension of any consumer credit; or

        (ii) any application fee or other charge assessed or collected--

          (I) by a retail seller of property that is primarily for personal, family, or household purposes or automobiles; and

          (II) in connection with a consumer credit transaction in which a purchase money security interest arising under an installment sales contract (or any equivalent consensual security interest) is created or retained against any such property or automobile being sold by the retail seller to the person seeking the extension of credit.

      (2) The terms ‘consumer’ and ‘credit’ have the meanings given to such terms in section 103 of the Truth in Lending Act (15 U.S.C. 1602).

      (3)(A) The term ‘credit repair organization’ means any person who sells, provides, or performs, or represents that such person can or will sell, provide, or perform, in return for the payment of money or other valuable consideration, a service for the express or implied purpose of--

        (i) improving a consumer’s credit record, history, or rating; or

        (ii) providing advice or assistance to a consumer with regard to the consumer’s credit record, history, or rating.

      (B) The term ‘credit repair organization’ does not include--

        (i) a depository institution whose deposits are insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or the National Credit Union Administration Board, or a depository institution chartered by a State;

        (ii) any nonprofit organization exempt from taxation under section 501(c)(3) of the Internal Revenue Code;

        (iii) a licensed real estate broker acting within the course and scope of that license;

        (iv) a licensed attorney at law rendering services within the course and scope of that license;

        (v) any broker-dealer registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission acting within the scope of the Securities and Exchange Commission or the Commodity Futures Trading Commission regulations;

        (vi) any consumer reporting agency acting within the course and scope of this title; or

        (vii) any debt collector as defined in section 803 of the Fair Debt Collection Practices Act (15 U.S.C. 1692a), acting within the course and scope of that Act.

      (4)(A) The term ‘loan broker’ means any person who--

        (i) for, or in expectation of, a consideration, arranges or attempts to arrange or offers to find for any individual, consumer credit;

        (ii) for, or in expectation of, a consideration, assists or advises an individual on obtaining, or attempting to obtain, consumer credit; or

        (iii) acts or purports to act for, or on behalf of, a loan broker for the purpose of soliciting individuals interested in obtaining consumer credit.

      (B) The term ‘loan broker’ does not include--

        (i) any insured depository institution (as defined in section 3(c)(2) of the Federal Deposit Insurance Act; 12 U.S.C. 1813(c)(2)), any insured credit union (as defined in section 101(7) of the Federal Credit Union Act; 12 U.S.C. 1752(7)), or any depository institution which is eligible for deposit insurance under the Federal Deposit Insurance Act or the Federal Credit Union Act and has deposit insurance coverage provided by any State;

        (ii) any lender approved by the Federal Housing Administration, Farmers Home Administration, or Department of Veterans Affairs;

        (iii) any seller or servicer of mortgages approved by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; or

        (iv) any consumer finance company, retail installment sales company, securities broker or dealer, real estate broker or real estate salesperson, attorney, credit card company, installment loan licensee, mortgage broker or lender, or insurance company if such person is--

          (I) licensed by and subject to regulation or supervision by any agency of the United States or by the State in which the person seeking to utilize the services of the loan broker resides; and

          (II) is acting within the scope of that license or regulation.

    (b) PROHIBITED PRACTICES OF CREDIT REPAIR ORGANIZATIONS- A credit repair organization shall not charge or receive any money or other valuable consideration prior to completion of the services that the credit repair organization has agreed to perform for the consumer and that are described in subsection (a)(1).

    (c) PROHIBITED PRACTICES OF LOAN BROKERS- (1) No loan broker may receive an advance fee in connection with--

      (A) arranging or attempting to arrange consumer credit;

      (B) offering to find for any individual consumer credit; or

      (C) advising any individual as to how to obtain consumer credit.

    (2) No loan broker may--

      (A) make or use any false or misleading representations or omit any material fact in the offer or sale of the service of a loan broker; or

      (B) engage, directly or indirectly, in any act that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a loan broker, notwithstanding the absence of reliance by the person to whom the loan broker’s services are offered or sold.

    (d) ENFORCEMENT BY FEDERAL TRADE COMMISSION- Any violation of this section shall--

      (1) be treated as a violation of a rule of the Federal Trade Commission issued pursuant to section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)); and

      (2) be subject to enforcement by the Federal Trade Commission under the enforcement and penalty provisions applicable to violations of such rules.

    (e) CRIMINAL PENALTY- (1) Whoever knowingly violates subsection (b) or (c) shall be fined under title 18, United States Code, imprisoned for not more than five years, or both.

    (2) Section 981(a)(1)(C) of title 18, United States Code, is amended--

      (A) by striking ‘title or a violation’ and inserting in lieu thereof ‘title, a violation’; and

      (B) by inserting ‘, or a violation of section 18 (b) or (c) of the Federal Trade Commission Act Amendments of 1993’ immediately before the period.

    (3) For purposes of section 3005(a) of title 39, United States Code, a violation of subsection (b) or (c) of this section by any person shall constitute prima facie evidence that such person is engaged in conducting a scheme or device for obtaining money or property through the mail by means of false representations.

SEC. 19. AUTHORIZATION OF APPROPRIATIONS.

    Section 25 of the Federal Trade Commission Act, as so redesignated by section 3 of this Act, is amended--

      (1) by striking ‘and’ after ‘1981;’; and

      (2) by inserting immediately before the period at the end the following: ‘; not to exceed $88,000,000 for the fiscal year ending September 30, 1994; not to exceed $92,000,000 for the fiscal year ending September 30, 1995; and not to exceed $95,000,000 for the fiscal year ending September 30, 1996, and such additional sums for the fiscal years ending September 30, 1994, and September 30, 1995, as may be necessary for increases in salary, pay, and other employee benefits as authorized by law’.

SEC. 20. EFFECTIVE DATE; APPLICABILITY.

    (a) IN GENERAL- Except as provided in subsections (b), (c), (d), (e), and (f), the provisions of this Act shall take effect on the date of enactment of this Act.

    (b) APPLICABILITY OF SECTION 2- The amendment made by section 2 of this Act shall apply only with respect to proceedings under section 5 of the Federal Trade Commission Act (15 U.S.C. 45) after the date of enactment of this Act. This amendment shall not be construed to affect in any manner a cease and desist order which was issued, or a rule which was promulgated, before the date of enactment of this Act. This amendment shall not be construed to affect in any manner a cease and desist order issued after the date of enactment of this Act, if such order was issued pursuant to remand from a court of appeals or the Supreme Court of an order issued by the Federal Trade Commission before the date of enactment of this Act.

    (c) APPLICABILITY OF SECTIONS 6 AND 11- The amendments made by sections 6 and 11 of this Act shall apply only to rulemaking proceedings initiated after the date of enactment of this Act. These amendments shall not be construed to affect in any manner a rulemaking proceeding which was initiated before the date of enactment of this Act.

    (d) APPLICABILITY OF SECTION 7- The amendments made by section 7 of this Act shall apply only with respect to cease and desist orders issued under section 5 of the Federal Trade Commission Act (15 U.S.C. 45) after the date of enactment of this Act. These amendments shall not be construed to affect in any manner a cease and desist order which was issued before the date of enactment of this Act.

    (e) APPLICABILITY OF SECTIONS 8 AND 9- The amendments made by sections 8 and 9 of this Act shall apply only with respect to compulsory process issued after the date of enactment of this Act.

    (f) APPLICABILITY OF SECTION 10- The amendments made by section 10 of this Act shall apply only with respect to cease and desist orders issued under section 5 of the Federal Trade Commission Act (15 U.S.C. 45), or to rules promulgated under section 18 of the Federal Trade Commission Act (15 U.S.C. 57a), after the date of enactment of this Act. These amendments shall not be construed to affect in any manner a cease and desist order which was issued, or a rule which was promulgated, before the date of enactment of this Act. These amendments shall not be construed to affect in any manner a cease and desist order issued after the date of enactment of this Act, if such order was issued pursuant to remand from a court of appeals or the Supreme Court of an order issued by the Federal Trade Commission before the date of enactment of this Act.

Attest:

Secretary.

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