[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4501 Engrossed in House (EH)]

111th CONGRESS
  2d Session
                                H. R. 4501

_______________________________________________________________________

                                 AN ACT


 
   To require certain return policies from businesses that purchase 
precious metals from consumers and solicit such transactions through an 
                           Internet website.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Guarantee of a Legitimate Deal Act 
of 2010''.

SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF PRECIOUS METALS.

    (a) Unlawful Conduct.--It shall be unlawful for any purchaser of 
precious metals to--
            (1) sell, transfer to a third party, or refine through 
        melting or otherwise permanently destroy an item of jewelry or 
        precious metal before the purchaser of precious metals has 
        received an affirmative acceptance of an offer to purchase the 
        item for a specific price from the consumer to whom such offer 
        was made;
            (2) fail to promptly return to the consumer any jewelry or 
        other precious metal if the consumer declines the offer to 
        purchase made by the purchaser of precious metals; or
            (3) fail to insure any shipment to the consumer of such 
        jewelry or precious metals in an amount equal to--
                    (A) the amount the consumer insured the shipment of 
                the jewelry or precious metals to the purchaser of 
                precious metals, if the consumer provides the purchaser 
                of precious metals with proof of such insurance; or
                    (B) 60 percent of the melt-value of the jewelry or 
                precious metals, if the consumer does not provide the 
                purchaser of precious metals with proof of such 
                insurance.
            (4) Law Enforcement Exception--Paragraph (1) of this 
        subsection shall not prohibit the sale or transfer of any item 
        of jewelry or precious metal to law enforcement agencies or 
        their personnel.
    (b) Definitions.--As used in this Act--
            (1) the term ``purchaser of precious metals'' means a 
        person who is in the business of purchasing jewelry or other 
        precious metals directly from consumers; and
            (2) the term ``melt-value'' means the reasonable estimated 
        value of any item of jewelry or precious metal, as determined 
        by the purchaser of precious metals, if such item were 
        processed and refined by the purchaser of precious metals.
    (c) Regulations.--The Commission may issue regulations under 
section 553 of title 5, United States Code, to carry out the purposes 
of this Act.

SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

    (a) Unfair and Deceptive Act or Practice.--A violation of this Act 
or a regulation issued pursuant to this Act shall be treated as an 
unfair or deceptive act or practice in violation of a regulation under 
section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
57a(a)(1)(B)) regarding unfair or deceptive acts or practices.
    (b) Powers of Commission.--The Commission shall enforce this Act in 
the same manner, by the same means, and with the same jurisdiction, 
powers, and duties as though all applicable terms and provisions of the 
Federal Trade Commission Act (15 U.S.C. 41 et seq.) were incorporated 
into and made a part of this Act. Any person who violates this Act 
shall be subject to the penalties and entitled to the privileges and 
immunities provided in that Act.

SEC. 4. EFFECTIVE DATE.

     The provisions of this Act shall take effect 60 days after the 
date of enactment of this Act.

            Passed the House of Representatives December 8, 2010.

            Attest:

                                                                 Clerk.
111th CONGRESS

  2d Session

                               H. R. 4501

_______________________________________________________________________

                                 AN ACT

   To require certain return policies from businesses that purchase 
precious metals from consumers and solicit such transactions through an 
                           Internet website.