[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2243 Engrossed Amendment Senate (EAS)]

103d CONGRESS

  1st Session

                               H. R. 2243

_______________________________________________________________________

                               AMENDMENT
                  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U.S.C. 57a(h)) is repealed, and subsections (i), (j), and (k) of 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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