IIB 111th CONGRESS 2d Session H. R. 4501 IN THE SENATE OF THE UNITED STATES December 9, 2010 Received; read twice and referred to the Committee on Commerce, Science, and Transportation AN ACT To require certain return policies from businesses that purchase precious metals from consumers and solicit such transactions through an Internet website.

1.

Short title

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

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.

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.

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. Lorraine C. Miller, Clerk.