[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1234 Reported in Senate (RS)]




                                                       Calendar No. 251




108th CONGRESS
  1st Session
                                S. 1234

                          [Report No. 108-127]

  To reauthorize the Federal Trade Commission, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2003

 Mr. McCain (for himself and Mr. Smith) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                            August 26, 2003

    Reported under authority of the order of the Senate of July 29 
   (legislative day, July 21), 2003, by Mr. McCain with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To reauthorize the Federal Trade Commission, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Federal Trade Commission 
Reauthorization Act of 2003''.</DELETED>

              <DELETED>TITLE I--REAUTHORIZATION</DELETED>

<DELETED>SEC. 101. REAUTHORIZATION.</DELETED>

<DELETED>    The text of section 25 of the Federal Trade Commission Act 
(15 U.S.C. 57c) is amended to read as follows:</DELETED>
<DELETED>    ``There are authorized to be appropriated to carry out the 
functions, powers, and duties of the Commission not to exceed 
$194,742,000 for fiscal year 2004, $224,695,000 for fiscal year 2005, 
and $235,457,000 for fiscal year 2006.''.</DELETED>

<DELETED>SEC. 102. AUTHORITY TO ACCEPT REIMBURSEMENTS, GIFTS, AND 
              VOLUNTARY AND UNCOMPENSATED SERVICES.</DELETED>

<DELETED>    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) by redesignating section 26 as section 28; 
        and</DELETED>
        <DELETED>    (2) by inserting after section 25 the 
        following:</DELETED>

<DELETED>``SEC. 26. REIMBURSEMENT OF EXPENSES.</DELETED>

<DELETED>    ``The Commission may accept payment or reimbursement, in 
cash or in kind, from a domestic or foreign law enforcement authority, 
or payment or reimbursement made on behalf of such authority, for 
expenses incurred by the Commission, its members, or employees in 
carrying out any activity pursuant to a statute administered by the 
Commission without regard to any other provision of law. Any such 
payments or reimbursements shall be considered a reimbursement to the 
appropriated funds of the Commission.</DELETED>

<DELETED>``SEC. 27. GIFTS AND VOLUNTARY AND UNCOMPENSATED 
              SERVICES.</DELETED>

<DELETED>    ``(a) In General.--In furtherance of its functions the 
Commission may accept, hold, administer, and use unconditional gifts, 
donations, and bequests of real, personal, and other property and, 
notwithstanding section 1342 of title 31, United States Code, accept 
voluntary and uncompensated services.</DELETED>
<DELETED>    ``(b) Limitations.--</DELETED>
        <DELETED>    ``(1) Conflicts of interest.--Notwithstanding 
        subsection (a), the Commission may not accept, hold, 
        administer, or use a gift, donation, or bequest if the 
        acceptance, holding, administration, or use would create a 
        conflict of interest or the appearance of a conflict of 
        interest.</DELETED>
        <DELETED>    ``(2) Voluntary services.--A person who provides 
        voluntary and uncompensated service under subsection (a) shall 
        not be considered a Federal employee for any purpose other than 
        for purposes of chapter 81 of title 5, United States Code, 
        (relating to compensation for injury) and section 2671 through 
        2680 of title 28, United States Code, (relating to tort 
        claims).''.</DELETED>

     <DELETED>TITLE II--INTERNATIONAL CONSUMER PROTECTION</DELETED>

<DELETED>SEC. 201. FINDINGS.</DELETED>

<DELETED>    The Congress finds the following:</DELETED>
        <DELETED>    (1) The Federal Trade Commission protects 
        consumers from fraud and deception. Cross-border fraud and 
        deception are growing international problems that affect 
        American consumers and businesses.</DELETED>
        <DELETED>    (2) The development of the Internet and 
        improvements in telecommunications technologies have brought 
        significant benefits to consumers. At the same time, they have 
        also provided unprecedented opportunities for those engaged in 
        fraud and deception to establish operations in one country and 
        victimize a large number of consumers in other 
        countries.</DELETED>
        <DELETED>    (3) An increasing number of consumer complaints 
        collected in the Consumer Sentinel database maintained by the 
        Commission, and an increasing number of cases brought by the 
        Commission, involve foreign consumers, foreign businesses or 
        individuals, or assets or evidence located outside the United 
        States.</DELETED>
        <DELETED>    (4) The Commission has legal authority to remedy 
        law violations involving domestic and foreign wrongdoers, 
        pursuant to the Federal Trade Commission Act. The Commission's 
        ability to obtain effective relief using this authority, 
        however, may face practical impediments when wrongdoers, 
        victims, other witnesses, documents, money and third parties 
        involved in the transaction are widely dispersed in many 
        different jurisdictions. Such circumstances make it difficult 
        for the Commission to gather all the information necessary to 
        detect injurious practices, to recover offshore assets for 
        consumer redress, and to reach conduct occurring outside the 
        United States that affects United States consumers.</DELETED>
        <DELETED>    (5) Improving the ability of the Commission and 
        its foreign counterparts to share information about cross-
        border fraud and deception, to conduct joint and parallel 
        investigations, and to assist each other is critical to achieve 
        more timely and effective enforcement in cross-border 
        cases.</DELETED>
        <DELETED>    (6) Consequently, Congress should enact 
        legislation to provide the Commission with more tools to 
        protect consumers across borders.</DELETED>

<DELETED>SEC. 202. FOREIGN LAW ENFORCEMENT AGENCY DEFINED.</DELETED>

<DELETED>    Section 4 of the Federal Trade Commission Act (15 U.S.C. 
44) is amended by adding at the end the following:</DELETED>
<DELETED>    ```Foreign law enforcement agency' means--</DELETED>
        <DELETED>    ``(1) any agency or judicial authority of a 
        foreign government, including a foreign state, a political 
        subdivision of a foreign state, or a multinational organization 
        constituted by and comprised of foreign states, that is vested 
        with law enforcement or investigative authority in civil, 
        criminal, or administrative matters;</DELETED>
        <DELETED>    ``(2) any multinational organization, to the 
        extent that it is acting on behalf of an entity described in 
        paragraph (1); or</DELETED>
        <DELETED>    ``(3) any organization that is vested with 
        authority, as a principal mission, to enforce laws against 
        fraudulent, deceptive, misleading, or unfair commercial 
        practices affecting consumers, in accordance with criteria laid 
        down by law, by a foreign state or a political subdivision of a 
        foreign state.''.</DELETED>

<DELETED>SEC. 203. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENT 
              AGENCIES.</DELETED>

<DELETED>    (a) In General.--Section 21(b)(6) of the Federal Trade 
Commission Act (15 U.S.C. 57b-2(b)(6)) is amended by adding at the end 
``The custodian may make such material available to any foreign law 
enforcement agency upon the prior certification of any officer of any 
such foreign law enforcement agency that such material will be 
maintained in confidence and will be used only for official law 
enforcement purposes, provided that the foreign law enforcement agency 
has set forth a legal basis for its authority to maintain the material 
in confidence. Nothing in the preceding sentence authorizes disclosure 
of material obtained in connection with the administration of Federal 
antitrust laws or foreign antitrust laws (within the meaning of section 
12 of the International Antitrust Enforcement Assistance Act of 1994 
(15 U.S.C. 6211)) to any officer or employee of a foreign law 
enforcement agency.''.</DELETED>
<DELETED>    (b) Publication of Information; Reports.--Section 6(f) of 
the Federal Trade Commission Act (15 U.S.C. 46(f)) is amended--
</DELETED>
        <DELETED>    (1) by striking ``agencies or to any officer or 
        employee of any State law enforcement agency'' and inserting 
        ``agencies, to any officer or employee of any State law 
        enforcement agency, or to any officer or employee of any 
        foreign law enforcement agency'';</DELETED>
        <DELETED>    (2) by striking ``Federal or State law enforcement 
        agency'' and inserting ``Federal, State, or foreign law 
        enforcement agency''; and</DELETED>
        <DELETED>    (3) by adding at the end ``Such information shall 
        be disclosed to an officer or employee of a foreign law 
        enforcement agency only if the foreign law enforcement agency 
        has set forth a legal basis for its authority to maintain the 
        information in confidence. Nothing in the preceding sentence 
        authorizes the disclosure of material obtained in connection 
        with the administration of Federal antitrust laws or foreign 
        antitrust laws (within the meaning of section 12 of the 
        International Antitrust Enforcement Assistance Act of 1994 (15 
        U.S.C. 6211)) to any officer or employee of a foreign law 
        enforcement agency.''.</DELETED>

<DELETED>SEC. 204. OBTAINING INFORMATION FOR FOREIGN LAW ENFORCEMENT 
              AGENCIES.</DELETED>

<DELETED>    Section 6 of the Federal Trade Commission Act (15 U.S.C. 
46) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(j)(1) Upon request from a foreign law enforcement 
agency, to provide assistance in accordance with this subsection if the 
requesting agency states that it is investigating, or engaging in 
enforcement proceedings against, possible violations of laws 
prohibiting fraudulent, deceptive, misleading, or unfair commercial 
conduct, or other conduct that may be similar to conduct prohibited by 
any provision of the laws administered by the Commission, other than 
Federal antitrust laws (within the meaning of section 12 of the 
International Antitrust Enforcement Assistance Act of 1994 (15 U.S.C. 
6211)), the Commission may, in its discretion--</DELETED>
        <DELETED>    ``(A) conduct such investigation as the Commission 
        deems necessary to collect information and evidence pertinent 
        to the request for assistance, using all investigative powers 
        authorized by this Act; and</DELETED>
        <DELETED>    ``(B) seek and accept appointment by a United 
        States district court of Commission attorneys to provide 
        assistance to foreign and international tribunals and to 
        litigants before such tribunals on behalf of a foreign law 
        enforcement agency pursuant to section 1782 of title 28, United 
        States Code.</DELETED>
<DELETED>    ``(2) The Commission may provide assistance under 
paragraph (1) without regard to whether the conduct identified in the 
request would also constitute a violation of the laws of the United 
States.</DELETED>
<DELETED>    ``(3) In deciding whether to provide such assistance, the 
Commission shall consider--</DELETED>
        <DELETED>    ``(A) whether the requesting agency has agreed to 
        provide or will provide reciprocal assistance to the 
        Commission; and</DELETED>
        <DELETED>    ``(B) whether compliance with the request would 
        prejudice the public interest of the United States.</DELETED>
<DELETED>    ``(4) If a foreign law enforcement agency has set forth a 
legal basis for requiring execution of an international agreement as a 
condition for reciprocal assistance, or as a condition for disclosure 
of materials or information to the Commission, the Commission, after 
consultation with the Secretary of State, may negotiate and conclude an 
international agreement, in the name of either the United States or the 
Commission and with the final approval of the agreement by the 
Secretary of State, for the purpose of obtaining such assistance or 
disclosure. The Commission may undertake in such an international 
agreement--</DELETED>
        <DELETED>    ``(A) to provide assistance using the powers set 
        forth in this subsection;</DELETED>
        <DELETED>    ``(B) to disclose materials and information in 
        accordance with subsection (f) of this section and section 
        21(b)(6) of this Act; and</DELETED>
        <DELETED>    ``(C) to engage in further cooperation, and 
        protect materials and information received from disclosure, as 
        authorized by this Act.</DELETED>
<DELETED>    ``(5) The authority in this subsection is in addition to, 
and not in lieu of, any other authority vested in the Commission or any 
other officer of the United States.''.</DELETED>

<DELETED>SEC. 205. INFORMATION SUPPLIED BY AND ABOUT FOREIGN 
              SOURCES.</DELETED>

<DELETED>    Section 21(f) of the Federal Trade Commission Act (15 
U.S.C. 57b-2(f)) is amended--</DELETED>
        <DELETED>    (1) by inserting ``(1)'' before ``Any''; and 
        adding at the end the following:</DELETED>
<DELETED>    ``(2)(A) Except as provided in subparagraph (C) of this 
paragraph, the Commission shall not be compelled to disclose--
</DELETED>
        <DELETED>    ``(i) material obtained from a foreign law 
        enforcement agency or other foreign government agency, if the 
        foreign law enforcement agency or other foreign government 
        agency has requested confidential treatment as a condition of 
        disclosing the material;</DELETED>
        <DELETED>    ``(ii) material reflecting consumer complaints 
        obtained from any other foreign source, if that foreign source 
        supplying the material has requested confidential treatment as 
        a condition of disclosing the material; or</DELETED>
        <DELETED>    ``(iii) material reflecting a consumer complaint 
        submitted to a Commission reporting mechanism sponsored in part 
        by foreign law enforcement agencies or other foreign government 
        agencies.</DELETED>
<DELETED>    ``(B) For purposes of section 552 of title 5, this 
paragraph shall be considered a statute described in subsection 
(b)(3)(B) of such section 552.</DELETED>
<DELETED>    ``(C) Nothing in this paragraph shall authorize the 
Commission to withhold information from the Congress or prevent the 
Commission from complying with an order of a court of the United States 
in an action commenced by the United States or the 
Commission.''.</DELETED>

<DELETED>SEC. 206. CONFIDENTIALITY AND DELAYED NOTICE OF 
              PROCESS.</DELETED>

<DELETED>    (a) The Federal Trade Commission Act (15 U.S.C. 41 et 
seq.) is amended by inserting after section 21 (15 U.S.C. 57b-2) the 
following:</DELETED>

<DELETED>``SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF COMPULSORY 
              PROCESS FOR CERTAIN THIRD PARTIES.</DELETED>

<DELETED>    ``(a) Confidentiality of Compulsory Process Issued by the 
Commission.--</DELETED>
        <DELETED>    ``(1) This subsection shall apply only in 
        connection with compulsory process issued by the Commission 
        where the recipient of such process is not a subject of the 
        investigation or proceeding at the time such process is 
        issued.</DELETED>
        <DELETED>    ``(2) Notwithstanding any law or regulation of the 
        United States, any constitution, law or regulation of any State 
        or political subdivision of any State or any Territory or the 
        District of Columbia, or any contract or other legally 
        enforceable agreement, the Commission may seek an order 
        requiring the recipient of compulsory process described in 
        paragraph (1) to keep such process confidential, upon an ex 
        parte showing to an appropriate United States district court 
        that there is a reason to believe that disclosure may--
        </DELETED>
                <DELETED>    ``(A) result in the transfer of assets or 
                records outside the territorial limits of the United 
                States;</DELETED>
                <DELETED>    ``(B) impede the ability of the Commission 
                to identify or trace funds;</DELETED>
                <DELETED>    ``(C) endanger the life or physical safety 
                of an individual;</DELETED>
                <DELETED>    ``(D) result in flight from 
                prosecution;</DELETED>
                <DELETED>    ``(E) result in destruction of or 
                tampering with evidence;</DELETED>
                <DELETED>    ``(F) result in intimidation of potential 
                witnesses;</DELETED>
                <DELETED>    ``(G) result in the dissipation or 
                concealment of assets; or</DELETED>
                <DELETED>    ``(H) otherwise seriously jeopardize an 
                investigation or unduly delay a trial.</DELETED>
        <DELETED>    ``(3) Upon a showing described in paragraph (2), 
        the presiding judge or magistrate judge shall enter an ex parte 
        order prohibiting the recipient of process from disclosing that 
        information has been submitted or that a request for 
        information has been made, for such period as the court deems 
        appropriate.</DELETED>
<DELETED>    ``(b) Materials Subject to Government Notification Under 
the Right to Financial Privacy Act.--</DELETED>
        <DELETED>    ``(1) When section 1105 or 1107 of the Right to 
        Financial Privacy Act of 1978 (12 U.S.C. 3405 or 3407) would 
        otherwise require notice, notwithstanding such requirements, 
        the Commission may obtain from a financial institution access 
        to or copies of financial records of a customer, as these terms 
        are defined in section 1101 of the Right to Financial Privacy 
        Act of 1978 (12 U.S.C. 3401), through compulsory process 
        described in subsection (a)(1) or through a judicial subpoena, 
        without prior notice to the customer, upon an ex parte showing 
        to an appropriate United States district court that there is 
        reason to believe that the required notice may cause an adverse 
        result described in subsection (a)(2).</DELETED>
        <DELETED>    ``(2) Upon such showing, the presiding judge or 
        magistrate judge shall enter an ex parte order granting a delay 
        of notice for a period not to exceed 90 days and an order 
        prohibiting the financial institution from disclosing that 
        records have been submitted or that a request for records has 
        been made.</DELETED>
        <DELETED>    ``(3) The court may grant extensions of the period 
        of delay of notice provided in paragraph (2) of up to 90 days, 
        upon a showing that the requirements for delayed notice under 
        subsection (a)(2) continue to apply.</DELETED>
        <DELETED>    ``(4) Upon expiration of the periods of delay of 
        notice ordered under paragraphs (2) and (3), the Commission 
        shall serve upon, or deliver by registered or first-class mail, 
        or as otherwise authorized by the court to, the customer a copy 
        of the process together with notice that states with reasonable 
        specificity the nature of the law enforcement inquiry, informs 
        the customer or subscriber when the process was served, and 
        states that notification of the process was delayed under this 
        subsection.</DELETED>
<DELETED>    ``(c) Materials Subject to Government Notification Under 
the Electronic Communications Privacy Act.--</DELETED>
        <DELETED>    ``(1) When section 2703(b)(1)(B) of title 18 would 
        otherwise require notice, notwithstanding such requirements, 
        the Commission may obtain, through compulsory process described 
        in subsection (a)(1) or through judicial subpoena,</DELETED>
                <DELETED>    ``(A) from a provider of remote computing 
                services, access to or copies of the contents of a wire 
                or electronic communication described in section 
                2703(b)(1) of title 18, and as those terms are defined 
                in section 2510 of title 18, or</DELETED>
                <DELETED>    ``(B) from a provider of electronic 
                communications services, access to or copies of the 
                contents of a wire or electronic communication that has 
                been in electronic storage in an electronic 
                communications system for more than 180 days, as those 
                terms are defined in section 2510 of title 
                18,</DELETED>
        <DELETED>without prior notice to the customer or subscriber, 
        upon an ex parte showing to an appropriate United States 
        district court by a Commission official that there is reason to 
        believe that notification of the existence of the process may 
        cause an adverse result described in subsection (a)(2). Upon 
        such a showing, the presiding judge or magistrate judge shall 
        issue an exparte order granting a delay of notice for a period 
        not to exceed 90 days. A court may grant extensions of the 
        period of delay of notice of up to 90 days, upon application by 
        the Commission and a showing that the requirements for delayed 
        notice under subsection (b)(2) continue to apply.</DELETED>
        <DELETED>    ``(2) The Commission may apply to a court for an 
        order prohibiting a provider of electronic communications 
        service or remote computing service to whom process has been 
        issued under this subsection, for such period as the court 
        deems appropriate, from disclosing that information has been 
        submitted or that a request for information has been made. The 
        court shall enter such an order if it has reason to believe 
        that such disclosure may cause an adverse result described in 
        subsection (b)(2).</DELETED>
        <DELETED>    ``(3) Upon expiration of the periods of delay of 
        notice ordered under subparagraph (1), the Commission shall 
        serve upon, or deliver by registered or first-class mail, or as 
        otherwise authorized by the court to, the customer or 
        subscriber a copy of the process together with notice that 
        states with reasonable specificity the nature of the law 
        enforcement inquiry, informs the customer or subscriber when 
        the process was served, and states that notification of the 
        process was delayed under this subsection.</DELETED>
        <DELETED>    ``(4) Nothing in the Electronic Communications 
        Privacy Act shall prohibit a provider of electronic 
        communications services or remote computing services from 
        disclosing complaints received by it from a customer or 
        subscriber or information reflecting such complaints to the 
        Commission.</DELETED>
<DELETED>    ``(d) Liability Limitation.--The recipient of compulsory 
process under subsections (a), (b), or (c) shall not be liable to any 
person under any law or regulation of the United States, any 
constitution, law, or regulation of any State or political subdivision 
of any State or any Territory or the District of Columbia, or under any 
contract or other legally enforceable agreement, for failure to provide 
notice that such process has been issued or that the recipient has 
provided information in response to such process. The preceding 
sentence does not provide any exemption from liability for the 
underlying conduct reported.</DELETED>
<DELETED>    ``(e) In-Camera Proceedings.--Upon application by the 
Commission, all judicial proceedings pursuant to this section shall be 
held in camera and the records thereof sealed until expiration of the 
period of delay or such other date as the presiding judge or magistrate 
judge may permit.</DELETED>
<DELETED>    ``(f) Procedure Inapplicable to Certain Proceedings.--This 
section shall not apply to compulsory process issued in an 
investigation or proceeding related to the administration of Federal 
antitrust laws or foreign antitrust laws (within the meaning of section 
12 of the International Antitrust Enforcement Assistance Act of 1994 
(15 U.S.C. 6211)).''.</DELETED>
<DELETED>    (b) Section 16(a)(2) of the Federal Trade Commission Act 
(15 U.S.C. 56(a)(2)) is amended--</DELETED>
        <DELETED>    (1) by striking ``or'' after the semicolon in 
        subparagraph (C);</DELETED>
        <DELETED>    (2) by striking ``Act;'' in subparagraph (D) and 
        inserting ``Act; or''; and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (D) the 
        following:</DELETED>
        <DELETED>    ``(E) under section 21a of this Act;''.</DELETED>

<DELETED>SEC. 207. PROTECTION FOR VOLUNTARY PROVISION OF 
              INFORMATION.</DELETED>

<DELETED>    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
amended by inserting after section 21a, as added by section 206 of this 
title, the following:</DELETED>

<DELETED>``SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF 
              INFORMATION.</DELETED>

<DELETED>    ``(a) In General.--An entity described in subsection 
(d)(1) that voluntarily provides material to the Commission that it 
reasonably believes is relevant to--</DELETED>
        <DELETED>    ``(1) a possible unfair or deceptive act or 
        practice, as defined in section 5(a) of this Act, or</DELETED>
        <DELETED>    ``(2) assets subject to recovery by the 
        Commission, including assets located in foreign 
        jurisdictions,</DELETED>
<DELETED>shall not be liable to any person under any law or regulation 
of the United States, or any constitution, law, or regulation of any 
State or political subdivision of any State or any Territory or the 
District of Columbia, for such disclosure or for any failure to provide 
notice of such disclosure. The preceding sentence does not provide any 
exemption from liability for the underlying conduct reported.</DELETED>
<DELETED>    ``(b) Liability Limitation.--An entity described in 
subsection (d)(2) that makes a voluntary disclosure to the Commission 
regarding the subjects described in subsection (a)(1) and (2) shall be 
exempt from liability in accordance with the provisions of section 
5318(g)(3) of title 31, United States Code.</DELETED>
<DELETED>    ``(c) FOIA Exemption.--Material submitted pursuant to this 
section with a request for confidential treatment shall be exempt from 
disclosure under section 552 of title 5, United States Code.</DELETED>
<DELETED>    ``(d) Entities to Which Section Applies.--This section 
applies to the following entities, whether foreign or 
domestic:</DELETED>
        <DELETED>    ``(1) A courier service, a commercial mail 
        receiving agency, an industry membership organization, a 
        payment system provider, a consumer reporting agency, a domain 
        name registrar and registry, a provider of remote computing 
        services or electronic communication services, to the limited 
        extent such a provider is disclosing consumer complaints 
        received by it from a customer or subscriber, or information 
        reflecting such complaints; and</DELETED>
        <DELETED>    ``(2) a bank or thrift institution, a commercial 
        bank or trust company, an investment company, a credit card 
        issuer, an operator of a credit card system, and an issuer, 
        redeemer, or cashier of travelers' checks, checks, money 
        orders, or similar instruments.''.</DELETED>

<DELETED>SEC. 208. INFORMATION SHARING WITH FINANCIAL 
              REGULATORS.</DELETED>

<DELETED>    Section 1112(e) of the Right to Financial Privacy Act (12 
U.S.C. 3412(e)) is amended by inserting ``the Federal Trade 
Commission,'' after ``the Securities and Exchange 
Commission,''.</DELETED>

<DELETED>SEC. 209. REPRESENTATION IN FOREIGN LITIGATION.</DELETED>

<DELETED>    Section 16 of the Federal Trade Commission Act (15 U.S.C. 
56) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(c)(1) The Commission may designate Commission attorneys 
to assist the Department of Justice in connection with litigation in 
foreign courts in which the Commission has an interest, pursuant to the 
terms of a memorandum of understanding to be negotiated by the 
Commission and the Department of Justice.</DELETED>
<DELETED>    ``(2) The Commission is authorized to expend appropriated 
funds for the retention of foreign counsel for consultation and for 
litigation in foreign courts, and for expenses related to consultation 
and to litigation in foreign courts in which the Commission has an 
interest.''.</DELETED>

<DELETED>SEC. 210. AVAILABILITY OF REMEDIES.</DELETED>

<DELETED>    Section 5 of the Federal Trade Commission Act (15 U.S.C. 
45) is amended by adding at the end the following:</DELETED>
<DELETED>    ``(o) Unfair or Deceptive Acts or Practices Involving 
Foreign Commerce.--</DELETED>
        <DELETED>    ``(1) In general.--For purposes of subsection (a), 
        the term `unfair or deceptive acts or practices' includes such 
        acts or practices involving foreign commerce that--</DELETED>
                <DELETED>    ``(A) cause or are likely to cause 
                reasonably foreseeable injury within the United States; 
                or</DELETED>
                <DELETED>    ``(B) involve material conduct occurring 
                within the United States.</DELETED>
        <DELETED>    ``(2) Application of remedies to such acts or 
        practices.--All remedies available to the Commission with 
        respect to unfair and deceptive acts or practices shall be 
        available for acts and practices described in paragraph (1), 
        including restitution to domestic or foreign 
        victims.''.</DELETED>

<DELETED>SEC. 211. CRIMINAL REFERRALS.</DELETED>

<DELETED>    Section 6 of the Federal Trade Commission Act (15 U.S.C. 
46), as amended by section 204 of this title, is amended by adding at 
the end the following:</DELETED>
<DELETED>    ``(k) Referral of Evidence for Criminal Proceedings.--
Whenever the Commission obtains evidence that any person, partnership 
or corporation, either domestic or foreign, may have engaged in conduct 
that could give rise to criminal proceedings, to transmit such evidence 
to the Attorney General who may, in his discretion, institute criminal 
proceedings under appropriate statutes. Provided that nothing in this 
subsection affects any other authority of the Commission to disclose 
information.''.</DELETED>

<DELETED>SEC. 212. STAFF EXCHANGES.</DELETED>

<DELETED>    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
amended by inserting after section 25 (15 U.S.C. 57c) the 
following:</DELETED>

<DELETED>``SEC. 25A. STAFF EXCHANGES.</DELETED>

<DELETED>    ``(a) In General.--The Congress consents to--</DELETED>
        <DELETED>    ``(1) the retention or employment of officers or 
        employees of foreign government agencies on a temporary basis 
        by the Commission under section 3109 of title 5, United States 
        Code, section 202 of title 18, United States Code, or section 2 
        of this Act (15 U.S.C. 42); and</DELETED>
        <DELETED>    ``(2) the retention or employment of officers or 
        employees of the Commission on a temporary basis by such 
        foreign government agencies.</DELETED>
<DELETED>    ``(b) Form of Arrangements.--Staff arrangements under 
subsection (a) need not be reciprocal. The Commission may accept 
payment or reimbursement, in cash or in kind, from a foreign government 
agency to which this section is applicable, or payment or reimbursement 
made on behalf of such agency, for expenses incurred by the Commission, 
its members, and employees in carrying out such 
arrangements.''.</DELETED>

<DELETED>SEC. 213. EXPENDITURES FOR COOPERATIVE ARRANGEMENTS.</DELETED>

<DELETED>    (a) In General.--Section 6 of the Federal Trade Commission 
Act (15 U.S.C. 46) as amended by section 211 of this title, is further 
amended by adding at the end the following:</DELETED>
<DELETED>    ``(p) To expend appropriated funds for--</DELETED>
        <DELETED>    ``(1) operating expenses and other costs of 
        bilateral and multilateral cooperative law enforcement groups 
        conducting activities of interest to the Commission and in 
        which the Commission participates; and</DELETED>
        <DELETED>    ``(2) expenses for consultations and meetings 
        hosted by the Commission with foreign government agency 
        officials, members of their delegations, appropriate 
        representatives and staff to exchange views concerning 
        developments relating to the Commission's mission, development 
        and implementation of cooperation agreements, and provision of 
        technical assistance for the development of foreign consumer 
        protection or competition regimes, such expenses to include 
        necessary administrative and logistic expenses and the expenses 
        of Commission staff and foreign invitees in attendance at such 
        consultations and meetings including--</DELETED>
                <DELETED>    ``(A) such incidental expenses as meals 
                taken in the course of such attendance;</DELETED>
                <DELETED>    ``(B) any travel and transportation to or 
                from such meetings; and</DELETED>
        <DELETED>    ``(3) any other related lodging or 
        subsistence.''.</DELETED>
<DELETED>    (b) Authorization of Appropriations.--The Federal Trade 
Commission is authorized to expend appropriated funds not to exceed 
$100,000 per fiscal year for purposes of section 6(p) of the Federal 
Trade Commission Act (15 U.S.C. 46(p)), including operating expenses 
and other costs of the following bilateral and multilateral cooperative 
law enforcement groups:</DELETED>
        <DELETED>    (1) The International Consumer Protection and 
        Enforcement Network.</DELETED>
        <DELETED>    (2) The International Competition 
        Network.</DELETED>
        <DELETED>    (3) The Mexico-U.S.-Canada Health Fraud Task 
        Force.</DELETED>
        <DELETED>    (4) Project Emptor.</DELETED>
        <DELETED>    (5) The Toronto Strategic Partnership and other 
        regional partnerships with a nexus in a Canadian 
        province.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Trade Commission 
Reauthorization Act of 2003''.

                        TITLE I--REAUTHORIZATION

SEC. 101. REAUTHORIZATION.

    The text of section 25 of the Federal Trade Commission Act (15 
U.S.C. 57c) is amended to read as follows:
    ``There are authorized to be appropriated to carry out the 
functions, powers, and duties of the Commission not to exceed 
$194,742,000 for fiscal year 2004, $224,695,000 for fiscal year 2005, 
$235,457,000 for fiscal year 2006, and $245,000,000 for fiscal year 
2007.''.

SEC. 102. AUTHORITY TO ACCEPT REIMBURSEMENTS, GIFTS, AND VOLUNTARY AND 
              UNCOMPENSATED SERVICES.

    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
amended--
            (1) by redesignating section 26 as section 28; and
            (2) by inserting after section 25 the following:

``SEC. 26. REIMBURSEMENT OF EXPENSES.

    ``The Commission may accept payment or reimbursement, in cash or in 
kind, from a domestic or foreign law enforcement authority, or payment 
or reimbursement made on behalf of such authority, for expenses 
incurred by the Commission, its members, or employees in carrying out 
any activity pursuant to a statute administered by the Commission 
without regard to any other provision of law. Any such payments or 
reimbursements shall be considered a reimbursement to the appropriated 
funds of the Commission.

``SEC. 27. GIFTS AND VOLUNTARY AND UNCOMPENSATED SERVICES.

    ``(a) In General.--In furtherance of its functions the Commission 
may accept, hold, administer, and use unconditional gifts, donations, 
and bequests of real, personal, and other property and, notwithstanding 
section 1342 of title 31, United States Code, accept voluntary and 
uncompensated services.
    ``(b) Limitations.--
            ``(1) Conflicts of interest.--Notwithstanding subsection 
        (a), the Commission may not accept, hold, administer, or use a 
        gift, donation, or bequest if the acceptance, holding, 
        administration, or use would create a conflict of interest or 
        the appearance of a conflict of interest.
            ``(2) Voluntary services.--A person who provides voluntary 
        and uncompensated service under subsection (a) shall be 
        considered a Federal employee for purposes of--
                    ``(A) chapter 81 of title 5, United States Code, 
                (relating to compensation for injury);
                    ``(B) sections 2671 through 2680 of title 28, 
                United States Code, (relating to tort claims); and
                    ``(C) for purposes of the provisions of law 
                relating to ethics, conflicts of interest, corruption, 
                and any other criminal or civil statute or regulation 
                governing the standards of conduct for Federal 
                employees.''.

SEC. 103. PEER-TO-PEER FILE SHARING RISK EDUCATION.

    The Federal Trade Commission shall, as part of its existing 
consumer education programs, educate consumers concerning the potential 
risks to their privacy and personal security, as well as educate 
consumers about potentially inappropriate behavior resulting from 
purposeful or accidental misuse of peer-to-peer file sharing 
technology.

              TITLE II--INTERNATIONAL CONSUMER PROTECTION

SEC. 201. FINDINGS.

    The Congress finds the following:
            (1) The Federal Trade Commission protects consumers from 
        fraud and deception. Cross-border fraud and deception are 
        growing international problems that affect American consumers 
        and businesses.
            (2) The development of the Internet and improvements in 
        telecommunications technologies have brought significant 
        benefits to consumers. At the same time, they have also 
        provided unprecedented opportunities for those engaged in fraud 
        and deception to establish operations in one country and 
        victimize a large number of consumers in other countries.
            (3) An increasing number of consumer complaints collected 
        in the Consumer Sentinel database maintained by the Commission, 
        and an increasing number of cases brought by the Commission, 
        involve foreign consumers, foreign businesses or individuals, 
        or assets or evidence located outside the United States.
            (4) The Commission has legal authority to remedy law 
        violations involving domestic and foreign wrongdoers, pursuant 
        to the Federal Trade Commission Act. The Commission's ability 
        to obtain effective relief using this authority, however, may 
        face practical impediments when wrongdoers, victims, other 
        witnesses, documents, money and third parties involved in the 
        transaction are widely dispersed in many different 
        jurisdictions. Such circumstances make it difficult for the 
        Commission to gather all the information necessary to detect 
        injurious practices, to recover offshore assets for consumer 
        redress, and to reach conduct occurring outside the United 
        States that affects United States consumers.
            (5) Improving the ability of the Commission and its foreign 
        counterparts to share information about cross-border fraud and 
        deception, to conduct joint and parallel investigations, and to 
        assist each other is critical to achieve more timely and 
        effective enforcement in cross-border cases.
            (6) Consequently, Congress should enact legislation to 
        provide the Commission with more tools to protect consumers 
        across borders.

SEC. 202. FOREIGN LAW ENFORCEMENT AGENCY DEFINED.

    Section 4 of the Federal Trade Commission Act (15 U.S.C. 44) is 
amended by adding at the end the following:
    `` `Foreign law enforcement agency' means--
            ``(1) any agency or judicial authority of a foreign 
        government, including a foreign state, a political subdivision 
        of a foreign state, or a multinational organization constituted 
        by and comprised of foreign states, that is vested with law 
        enforcement or investigative authority in civil, criminal, or 
        administrative matters; or
            ``(2) any multinational organization, to the extent that it 
        is acting on behalf of an entity described in paragraph (1).''.

SEC. 203. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENT AGENCIES.

    (a) In General.--Section 21(b)(6) of the Federal Trade Commission 
Act (15 U.S.C. 57b-2(b)(6)) is amended by adding at the end ``The 
custodian may make such material available to any foreign law 
enforcement agency upon the prior certification of any officer of any 
such foreign law enforcement agency that such material will be 
maintained in confidence and will be used only for official law 
enforcement purposes, if--
            ``(A) the foreign law enforcement agency has set forth a 
        bona fide legal basis for its authority to maintain the 
        material in confidence; and
            ``(B) the materials are to be used for purposes of 
        investigating, or engaging in enforcement proceedings related 
        to, possible violations of--
                    ``(i) foreign laws prohibiting fraudulent or 
                deceptive commercial practices or other practices 
                similar to practices prohibited by any law administered 
                by the Commission;
                    ``(ii) law administered by the Commission, if 
                disclosure of the material would further a Commission 
                investigation or enforcement proceeding; or
                    ``(iii) with the approval of the Attorney General, 
                foreign criminal laws.
Nothing in the preceding sentence authorizes the disclosure of material 
obtained in connection with the administration of the Federal antitrust 
laws or foreign antitrust laws (as defined in paragraphs (5) and (7), 
respectively, of section 12 of the International Antitrust Enforcement 
Assistance Act of 1994 (16 U.S.C. 6211) to any officer or employee of a 
foreign law enforcement agency.''.
    (b) Publication of Information; Reports.--Section 6(f) of the 
Federal Trade Commission Act (15 U.S.C. 46(f)) is amended--
            (1) by inserting ``(1)'' after ``such information'' the 
        first place it appears; and
            (2) by striking ``purposes.'' and inserting ``purposes, and 
        (2) to any officer or employee of any foreign law enforcement 
        agency under the same circumstances that sharing material with 
        foreign law enforcement agencies is permitted under section 
        21(b)(6) of this Act.''.

SEC. 204. OBTAINING INFORMATION FOR FOREIGN LAW ENFORCEMENT AGENCIES.

    Section 6 of the Federal Trade Commission Act (15 U.S.C. 46) is 
amended by adding at the end the following:
    ``(j)(1) Upon request from a foreign law enforcement agency, to 
provide assistance in accordance with this subsection if the requesting 
agency states that it is investigating, or engaging in enforcement 
proceedings against, possible violations of laws prohibiting fraudulent 
or deceptive commercial practices, or other practices that may be 
similar to practices prohibited by any provision of the laws 
administered by the Commission, other than Federal antitrust laws (as 
defined in section 12(5) of the International Antitrust Enforcement 
Assistance Act of 1994 (15 U.S.C. 6211(5))), the Commission may, in its 
discretion--
            ``(A) conduct such investigation as the Commission deems 
        necessary to collect information and evidence pertinent to the 
        request for assistance, using all investigative powers 
        authorized by this Act; and
            ``(B) seek and accept appointment by a United States 
        district court of Commission attorneys to provide assistance to 
        foreign and international tribunals and to litigants before 
        such tribunals on behalf of a foreign law enforcement agency 
        pursuant to section 1782 of title 28, United States Code, when 
        the request is from an agency acting to investigate or pursue 
        the enforcement of civil laws or when the Attorney General 
        refers such a request to the Commission.
    ``(2) The Commission may provide assistance under paragraph (1) 
without requiring that the conduct identified in the request also 
constitutes a violation of the laws of the United States.
    ``(3) In deciding whether to provide such assistance, the 
Commission shall consider all relevant factors, including--
            ``(A) whether the requesting agency has agreed to provide 
        or will provide reciprocal assistance to the Commission;
            ``(B) whether compliance with the request would prejudice 
        the public interest of the United States; and
            ``(C) whether the requesting agency's investigation or 
        enforcement proceeding concerns acts or practices that cause or 
        are likely to cause injury to a significant number of persons.
    ``(4) If a foreign law enforcement agency has set forth a legal 
basis for requiring execution of an international agreement as a 
condition for reciprocal assistance, or as a condition for disclosure 
of materials or information to the Commission, the Commission, after 
consultation with the Secretary of State, may negotiate and conclude an 
international agreement, in the name of either the United States or the 
Commission and with the final approval of the agreement by the 
Secretary of State, for the purpose of obtaining such assistance or 
disclosure. The Commission may undertake in such an international 
agreement--
            ``(A) to provide assistance using the powers set forth in 
        this subsection;
            ``(B) to disclose materials and information in accordance 
        with subsection (f) of this section and section 21(b)(6) of 
        this Act; and
            ``(C) to engage in further cooperation, and protect 
        materials and information received from disclosure, as 
        authorized by this Act.
    ``(5) The authority in this subsection is in addition to, and not 
in lieu of, any other authority vested in the Commission or any other 
officer of the United States.''.

SEC. 205. INFORMATION SUPPLIED BY AND ABOUT FOREIGN SOURCES.

    Section 21(f) of the Federal Trade Commission Act (15 U.S.C. 57b-
2(f)) is amended--
            (1) by inserting ``(1) before ``Any''; and adding at the 
        end the following:
    ``(2)(A) Except as provided in subparagraph (C) of this paragraph, 
the Commission shall not be compelled to disclose--
            ``(i) material obtained from a foreign law enforcement 
        agency or other foreign government agency, if the foreign law 
        enforcement agency or other foreign government agency has 
        requested confidential treatment, or has precluded such 
        disclosure under other use limitations, as a condition of 
        disclosing the material;
            ``(ii) material reflecting consumer complaints obtained 
        from any other foreign source, if that foreign source supplying 
        the material has requested confidential treatment as a 
        condition of disclosing the material; or
            ``(iii) material reflecting a consumer complaint submitted 
        to a Commission reporting mechanism sponsored in part by 
        foreign law enforcement agencies or other foreign government 
        agencies.
    ``(B) For purposes of section 552 of title 5, this paragraph shall 
be considered a statute described in subsection (b)(3)(B) of such 
section 552.
    ``(C) Nothing in this paragraph shall authorize the Commission to 
withhold information from the Congress or prevent the Commission from 
complying with an order of a court of the United States in an action 
commenced by the United States or the Commission.''.

SEC. 206. CONFIDENTIALITY AND DELAYED NOTICE OF PROCESS.

    (a) In General.--The Federal Trade Commission Act (15 U.S.C. 41 et 
seq.) is amended by inserting after section 21 the following:

``SEC. 21A. CONFIDENTIALITY AND DELAYED NOTICE OF COMPULSORY PROCESS 
              FOR CERTAIN THIRD PARTIES.

    (a) In General.--The provisions for delay or prohibition of notice 
under the Right to Financial Privacy Act (12 U.S.C. 3401 et seq.) and 
the Electronic Communication Privacy Act (18 U.S.C. 2701 et seq.) shall 
be available to the Commission--
            (1) upon a finding by the presiding judge or magistrate 
        judge pursuant to an ex parte application by the Commission 
        that there is reason to believe that notification may cause an 
        adverse result; or
            (2) where notification is delayed pursuant to section 
        2705(a)(1)(B) of title 18, a finding by the Commission that 
        there is reason to believe that notification may cause an 
        adverse result.
    (b) Ex Parte Application by Commission.--If the provisions for 
delayed notice described in subsection (a) do not apply, the Commission 
may apply ex parte to a presiding judge or magistrate judge for an 
order commanding the recipient of compulsory process issued by the 
Commission not to notify any other person of the existence of the 
process, notwithstanding any law or regulation of the United States, or 
under the constitution, or any law or regulation, of any State, 
political subdivision of a State, territory of the United States, or 
the District of Columbia. The presiding judge or magistrate judge shall 
enter such an order granting the requested delay for a period not to 
exceed 90 days, or for such period as the presiding judge or magistrate 
judge deems appropriate, if there is reason to believe that 
notification may cause an adverse results. The presiding judge or 
magistrate judge may grant extensions of this delay of notice of up to 
90 each in accordance with this subsection.
    (c) No Liability for Compliance.--The recipient of compulsory 
process issued by the Commission under this section shall not be liable 
under any law or regulation of the United States, or under the 
constitution, or any law or regulation, of any State, political 
subdivision of a State, territory of the United States, or the District 
of Columbia, or under any contract or other legally enforceable 
agreement, for failure to provide notice that such process has been 
issued or that the recipient has provided information in response to 
such process. The preceding sentence does not provide any exemption 
from liability for the underlying conduct.
    (d) Venue and Procedure.--
            (1) In general.--All judicial proceedings under this 
        section may be brought in the United States District Court for 
        the District of Columbia or any other appropriate United States 
        District Court. All ex parte applications by the Commission 
        under this section related to a single investigation may be 
        brought in a single proceeding.
            (2) In camera proceedings.--Upon application by the 
        Commission, all judicial proceedings pursuant to this section 
        shall be held in camera and the records thereof sealed until 
        expiration of the period of delay or such other date as the 
        presiding judge or magistrate judge may permit.
    (e) Section Not To Apply to Antitrust Investigations or 
Proceedings.--This section shall not apply to an investigation or 
proceeding related to the administration of federal antitrust laws or 
foreign antitrust laws (within the meaning of section 6211 of this 
title).
    (f) Adverse Result Defined.--In this section the term `adverse 
result' means--
            ``(1) the transfer of assets or records outside the 
        territorial limits of the United States;
            ``(2) impeding the ability of the Commission to identify or 
        trace funds;
            ``(3) endangering the life or physical safety of an 
        individual;
            ``(4) flight from prosecution;
            ``(5) the destruction of, or tampering with, evidence;
            ``(6) the intimidation of potential witnesses;
            ``(7) the dissipation or concealment of assets; or
            ``(8) otherwise seriously jeopardizing an investigation or 
        unduly delaying a trial.''.
    (b) Conforming Amendment.--Section 16(a)(2) of the Federal Trade 
Commission Act (15 U.S.C. 56(a)(2)) is amended--
            (1) by striking ``or'' after the semicolon in subparagraph 
        (C);
            (2) by inserting ``and'' after the semicolon in 
        subparagraph (D); and
            (3) by inserting after subparagraph (D) the following:
            ``(E) under section 21a of this Act;''.

SEC. 207. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.

    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended 
by inserting after section 21a, as added by section 206 of this title, 
the following:

``SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.

    ``(a) In General.--An entity described in subsection (e)(1) that 
voluntarily provides material to the Commission that it reasonably 
believes is relevant to--
            ``(1) a possible unfair or deceptive act or practice, as 
        defined in section 5(a) of this Act, or
            ``(2) assets subject to recovery by the Commission, 
        including assets located in foreign jurisdictions,
shall not be liable to any person under any law or regulation of the 
United States, or under the constitution, or any law or regulation, of 
any State, political subdivision of a State, territory of the United 
States, or the District of Columbia, for such disclosure or for any 
failure to provide notice of such disclosure. The preceding sentence 
does not provide any exemption from liability for the underlying 
conduct.
    ``(b) Liability Limitation.--An entity described in subsection 
(e)(2) that makes a voluntary disclosure to the Commission regarding 
the subjects described in subsection (a)(1) and (2) shall be exempt 
from liability in accordance with the provisions of section 5318(g)(3) 
of title 31, United States Code.
    ``(c) Consumer Complaints.--Any entity described in subsection (e) 
that makes a voluntary disclosure of consumer complaints sent to it, or 
information contained therein, to the Commission shall not be liable to 
any person under any law or regulation of the United States, or under 
the constitution, or any law or regulation, of any State, political 
subdivision of a State, territory of the United States, or the District 
of Columbia, for such disclosure or for any failure to provide notice 
of such disclosure. The preceding sentence does not provide any 
exemption from liability for the underlying conduct.
    ``(d) FOIA Exemption.--Material submitted pursuant to this section 
with a request for confidential treatment shall be exempt from 
disclosure under section 552 of title 5, United States Code, to the 
extent it could reasonably be expected to disclose either the identity 
of persons, partnerships, or corporations that are the subject of such 
disclosures, or the identification of particular financial accounts, 
their ownership, or confidential records of account activity. This 
exemption is in addition to, and not in lieu of, any other applicable 
exemptions from disclosure in such section 552.
    ``(e) Entities to Which Section Applies.--This section applies to 
the following entities, whether foreign or domestic:
            ``(1) A courier service, a commercial mail receiving 
        agency, an industry membership organization, a payment system 
        provider, a consumer reporting agency, a domain name registrar 
        and registry, and a provider of alternative dispute resolution 
        services;
            ``(2) a bank or thrift institution, a commercial bank or 
        trust company, an investment company, a credit card issuer, an 
        operator of a credit card system, and an issuer, redeemer, or 
        cashier of travelers' checks, money orders, or similar 
        instruments; and
            ``(3) an Internet service provider or provider of telephone 
        services.''.

SEC. 208. INFORMATION SHARING WITH FINANCIAL REGULATORS.

    Section 1112(e) of the Right to Financial Privacy Act (12 U.S.C. 
3412(e)) is amended by inserting ``the Federal Trade Commission,'' 
after ``the Securities and Exchange Commission,''.

SEC. 209. REPRESENTATION IN FOREIGN LITIGATION.

    Section 16 of the Federal Trade Commission Act (15 U.S.C. 56) is 
amended by adding at the end the following:
    ``(c)(1) The Commission may designate Commission attorneys to 
assist the Department of Justice in connection with litigation in 
foreign courts in which the Commission has an interest, pursuant to the 
terms of a memorandum of understanding to be negotiated by the 
Commission and the Department of Justice. The preceding sentence is in 
addition to, and not in lieu of, any other authority vested in the 
Commission or any other officer of the United States.
    ``(2) The Commission is authorized to expend appropriated funds for 
the retention of foreign counsel for consultation and for litigation in 
foreign courts, and for expenses related to consultation and to 
litigation in foreign courts in which the Commission has an interest.
    ``(3) Nothing in this section authorizes the payment of claims or 
judgments from any source other than the permanent and indefinite 
appropriation authorized by section 1304 of title 31, United States 
Code.''.

SEC. 210. AVAILABILITY OF REMEDIES.

    Section 5 of the Federal Trade Commission Act (15 U.S.C. 45) is 
amended by adding at the end the following:
    ``(o) Unfair or Deceptive Acts or Practices Involving Foreign 
Commerce.--
            ``(1) In general.--For purposes of subsection (a), the term 
        `unfair or deceptive acts or practices' includes such acts or 
        practices involving foreign commerce that--
                    ``(A) cause or are likely to cause reasonably 
                foreseeable injury within the United States; or
                    ``(B) involve material conduct occurring within the 
                United States.
            ``(2) Application of remedies to such acts or practices.--
        All remedies available to the Commission with respect to unfair 
        and deceptive acts or practices shall be available for acts and 
        practices described in paragraph (1), including restitution to 
        domestic or foreign victims.''.

SEC. 211. CRIMINAL REFERRALS.

    Section 6 of the Federal Trade Commission Act (15 U.S.C. 46), as 
amended by section 204 of this title, is amended by adding at the end 
the following:
    ``(k) Referral for Criminal Proceedings.--
            ``(1) In general.--Whenever the Commission obtains evidence 
        that any person, partnership or corporation, either domestic or 
        foreign, has engaged in conduct that may constitute a violation 
        of Federal criminal law, to transmit such evidence to the 
        Attorney General who may, in his discretion, institute criminal 
        proceedings under appropriate statutes. Nothing in this 
        paragraph affects any other authority of the Commission to 
        disclose information.
            ``(2) International information.--The Commission shall 
        endeavor to ensure, with respect to memoranda of understanding 
        and international agreements it may conclude, that material it 
        has obtained from foreign law enforcement agencies acting to 
        investigate or pursue the enforcement of foreign criminal laws 
        may be used for the purpose of investigation, prosecution, or 
        prevention of violations of United States criminal laws.''.

SEC. 212. STAFF EXCHANGES.

    The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended 
by inserting after section 25 (15 U.S.C. 57c) the following:

``SEC. 25A. STAFF EXCHANGES.

    ``(a) In General.--The Congress consents to--
            ``(1) the retention or employment of officers or employees 
        of foreign government agencies on a temporary basis by the 
        Commission under section 3109 of title 5, United States Code, 
        section 202 of title 18, United States Code, or section 2 of 
        this Act (15 U.S.C. 42); and
            ``(2) the retention or employment of officers or employees 
        of the Commission on a temporary basis by such foreign 
        government agencies.
    ``(b) Form of Arrangements.--Staff arrangements under subsection 
(a) need not be reciprocal. The Commission may accept payment or 
reimbursement, in cash or in kind, from a foreign government agency to 
which this section is applicable, or payment or reimbursement made on 
behalf of such agency, for expenses incurred by the Commission, its 
members, and employees in carrying out such arrangements.''.

SEC. 213. EXPENDITURES FOR COOPERATIVE ARRANGEMENTS.

    (a) In General.--Section 6 of the Federal Trade Commission Act (15 
U.S.C. 46) as amended by section 211 of this title, is further amended 
by adding at the end the following:
    ``(p) To expend appropriated funds for--
            ``(1) operating expenses and other costs of bilateral and 
        multilateral cooperative law enforcement groups conducting 
        activities of interest to the Commission and in which the 
        Commission participates; and
            ``(2) expenses for consultations and meetings hosted by the 
        Commission with foreign government agency officials, members of 
        their delegations, appropriate representatives and staff to 
        exchange views concerning developments relating to the 
        Commission's mission, development and implementation of 
        cooperation agreements, and provision of technical assistance 
        for the development of foreign consumer protection or 
        competition regimes, such expenses to include necessary 
        administrative and logistic expenses and the expenses of 
        Commission staff and foreign invitees in attendance at such 
        consultations and meetings including--
                    ``(A) such incidental expenses as meals taken in 
                the course of such attendance;
                    ``(B) any travel and transportation to or from such 
                meetings; and
                    ``(3) any other related lodging or subsistence.''.
    (b) Authorization of Appropriations.--The Federal Trade Commission 
is authorized to expend appropriated funds not to exceed $100,000 per 
fiscal year for purposes of section 6(p) of the Federal Trade 
Commission Act (15 U.S.C. 46(p)), including operating expenses and 
other costs of the following bilateral and multilateral cooperative law 
enforcement groups:
            (1) The International Consumer Protection and Enforcement 
        Network.
            (2) The International Competition Network.
            (3) The Mexico-U.S.-Canada Health Fraud Task Force.
            (4) Project Emptor.
            (5) The Toronto Strategic Partnership and other regional 
        partnerships with a nexus in a Canadian province.




                                                       Calendar No. 251

108th CONGRESS

  1st Session

                                S. 1234

                          [Report No. 108-127]

_______________________________________________________________________

                                 A BILL

  To reauthorize the Federal Trade Commission, and for other purposes.

_______________________________________________________________________

                            August 26, 2003

                       Reported with an amendment