[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6149 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 6149

To require disclosures to consumers by coin and precious metal bullion 
                                dealers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 16, 2010

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

_______________________________________________________________________

                                 A BILL


 
To require disclosures to consumers by coin and precious metal bullion 
                                dealers.

    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 ``Coin and Precious Metal Disclosure 
Act''.

SEC. 2. DISCLOSURES REQUIRED OF COIN AND PRECIOUS METAL DEALERS.

    (a) Unlawful Conduct.--A covered coin or precious metal dealer 
shall disclose to the consumer, prior to any sale of coins or precious 
metal bullion, the following information:
            (1) Any fee that is or may be incurred by the customer if 
        the sale of the coin or precious metal bullion were to be 
        consummated.
            (2) The purchase price, the melt value, and the reasonable 
        resale value of the coin or precious metal bullion.
            (3) Such other information as the Commission may require by 
        regulation (in accordance with section 553 of title 5, United 
        States Code).
    (b) Manner of Disclosure.--
            (1) In general.--Except as provided in paragraph (2), the 
        disclosures required under subsection (a) shall be in writing 
        and present the information clearly and conspicuously.
            (2) Telephone communication.--In any solicitation made by 
        telephone for any sale subject to subsection (a), the person 
        making the solicitation shall orally disclose the information 
        required by such subsection clearly and conspicuously to the 
        consumer before the transaction is consummated.

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. ENFORCEMENT BY STATES.

    (a) In General.--Whenever an attorney general of any State has 
reason to believe that the interests of the residents of that State 
have been or are being threatened or adversely affected because any 
person has engaged or is engaging in an act or practice which violates 
section 2 or any rule of the Commission issued pursuant to this Act, 
the State, as parens patriae, may bring a civil action on behalf of its 
residents in an appropriate district court of the United States to 
enjoin such violative act or practice, to enforce compliance with such 
rule of the Commission, to obtain damages, restitution, or other 
compensation on behalf of residents of such State, or to obtain such 
further and other relief as the court may determine appropriate.
    (b) Notice.--The State shall provide prior written notice of any 
civil action under subsection (a) or (f)(2) to the Commission and 
provide the Commission with a copy of its complaint, except that if it 
is not feasible for the State to provide such prior notice, the State 
shall provide such notice immediately upon instituting such action. 
Upon receiving a notice respecting a civil action, the Commission shall 
have the right--
            (1) to intervene in such action;
            (2) upon so intervening, to be heard on all matters arising 
        therein;
            (3) to remove the action to the appropriate United States 
        district court; and
            (4) to file petitions for appeal.
    (c) Construction.--For purposes of bringing any civil action under 
subsection (a), nothing in this Act shall prevent an attorney general 
from exercising the powers conferred on the attorney general by the 
laws of such State to conduct investigations or to administer oaths or 
affirmations or to compel the attendance of witnesses or the production 
of documentary and other evidence.
    (d) Actions by Commission.--Whenever a civil action has been 
instituted by or on behalf of the Commission for violation of section 2 
or any rule issued pursuant to this Act, no State may, during the 
pendency of such action instituted by or on behalf of the Commission, 
institute a civil action under subsection (a) or (f)(2) of this section 
against any defendant named in the complaint in such action for 
violation of any rule as alleged in such complaint.
    (e) Venue; Service of Process.--Any civil action brought under 
subsection (a) of this section in a district court of the United States 
may be brought in the district in which the defendant is found, is an 
inhabitant, or transacts business or wherever venue is proper under 
section 1391 of title 28, United States Code. Process in such an action 
may be served in any district in which the defendant is an inhabitant 
or in which the defendant may be found.
    (f) Actions by Other State Officials.--
            (1) Construction.--Nothing contained in this section shall 
        prohibit an authorized State official from proceeding in State 
        court on the basis of an alleged violation of any civil or 
        criminal statute of such State.
            (2) Other state actions.--In addition to actions brought by 
        an attorney general of a State under subsection (a) of this 
        section, such an action may be brought by officers of such 
        State who are authorized by the State to bring actions in such 
        State on behalf of its residents.

SEC. 5. DEFINITIONS.

    As used in this Act--
            (1) the term ``coin or precious metal dealer'' means any 
        person that sells or offer for sale for investment purposes 
        gold coins or bullion or coins or bullion made of other 
        precious metals;
            (2) the term ``melt-value'' means the reasonable estimated 
        value of any coin or precious metal if such item were processed 
        and refined; and
            (3) the term ``reasonable resale value'' means a reasonable 
        price that the coin or precious metal dealer selling the coin 
        or other precious metal determines that other coin or precious 
        metal dealers would pay to purchase the coin or other precious 
        metal from the consumer on the date that such coin or other 
        precious metal is sold to the consumer.

SEC. 6. EXEMPTION AND RULE OF CONSTRUCTION.

    (a) Exemption for Certain Collectible Coins.--Nothing in this Act 
shall apply to the sale of rare and collectable coins--
            (1) the precious metal content of which constitutes only a 
        limited or insignificant portion of the overall value of the 
        coin; and
            (2) whose value is not affected by the increase or decline 
        in the value of such precious metals.
    (b) Rule of Construction Relating to the Telemarketing Sales 
Rule.--Nothing in this Act shall be construed to affect the 
Telemarketing Sales Rule as set forth in part 310 of title 16, Code of 
Federal Regulations.
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