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

                                                 Union Calendar No. 402
111th CONGRESS
  2d Session
                                H. R. 4501

                          [Report No. 111-673]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 21, 2010

  Mr. Weiner introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

                            December 7, 2010

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]


_______________________________________________________________________

                                 A BILL


 
   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,

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

<DELETED>    This Act may be cited as the ``Guarantee of a Legitimate 
Deal Act of 2009''.</DELETED>

<DELETED>SEC. 2. RETURN REQUIREMENTS FOR PURCHASERS OF PRECIOUS 
              METALS.</DELETED>

<DELETED>    (a) Unlawful Conduct.--It shall be unlawful for any online 
purchaser of precious metals to--</DELETED>
        <DELETED>    (1) refine through melting or otherwise 
        permanently destroy an item of jewelry or precious metal which 
        the online purchaser of precious metals has made an offer to 
        purchase before receiving an affirmative acceptance of such 
        offer from the consumer to whom such offer was made;</DELETED>
        <DELETED>    (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 online purchaser of precious 
        metals; or</DELETED>
        <DELETED>    (3) fail to insure any shipment of such jewelry or 
        precious metals in an amount equal to--</DELETED>
                <DELETED>    (A) 60 percent of the melt-value of the 
                jewelry or precious metals; or</DELETED>
                <DELETED>    (B) the amount the consumer insured the 
                shipment of the jewelry or precious metals to the 
                online purchaser of precious metals, if the consumer 
                provides the online purchaser of precious metals with 
                proof of such insurance.</DELETED>
<DELETED>    (b) Definitions.--As used in this Act--</DELETED>
        <DELETED>    (1) the term ``online purchaser of precious 
        metals'' means a person who--</DELETED>
                <DELETED>    (A) is in the business of purchasing 
                jewelry or other precious metals directly from 
                consumers; and</DELETED>
                <DELETED>    (B) maintains an Internet website through 
                which such person solicits such transactions; 
                and</DELETED>
        <DELETED>    (2) the term ``melt-value'' means the estimated 
        value of any item of jewelry or precious metal, as determined 
        by the online purchaser of precious metals, once such item has 
        been processed and refined by the online purchaser of precious 
        metals.</DELETED>

<DELETED>SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.</DELETED>

<DELETED>    (a) Unfair and Deceptive Act or Practice.--A violation of 
this Act shall be treated as an unfair and 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.</DELETED>
<DELETED>    (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 such regulations shall be subject to the penalties and 
entitled to the privileges and immunities provided in that 
Act.</DELETED>

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.
                                                 Union Calendar No. 402

111th CONGRESS

  2d Session

                               H. R. 4501

                          [Report No. 111-673]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                            December 7, 2010

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed