[Congressional Record Volume 149, Number 85 (Wednesday, June 11, 2003)]
[Senate]
[Pages S7721-S7725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN (for himself and Mr. Smith):
  S. 1234. A bill to reauthorize the Federal Trade Commission, and for 
other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. McCAIN. Mr. President, today I am joined by the Chairman of the 
Senate Commerce Committee's Competition, Foreign Commerce, and 
Infrastructure Subcommittee, Senator Smith, in introducing the Federal 
Trade Commission Reauthorization Act of 2003. This legislation is 
designed to reauthorize the Federal Trade Commission, FTC or 
Commission, in furtherance of its mission to enhance the efficient 
operation of the marketplace by both eliminating acts or practices that 
are unfair or deceptive and preventing anti-competitive conduct. This 
vital consumer protection agency has not been reauthorized since 1996.
  Title I of the bill is nearly identical to legislation that was 
reported by the Commerce Committee last year. It would authorize 
funding for Fiscal Years 2004 through 2006. In addition, this portion 
of the bill would authorize the FTC to provide investigative and other 
services to a requesting law enforcement agency and receive from that 
agency, if offered, reimbursement for the FTC's involvement. This part 
of the bill also would grant the Commission the authority it has 
requested to receive gifts or items that would be useful to the 
Commission as long as a conflict of interest is not created by such 
receipt.
  The second title of the bill is designed to mitigate the challenges 
that the FTC currently faces in combating cross-border fraud. The FTC's 
responsibility to protect consumers is essential, particularly in 
today's global climate of high-speed information and marketing, which 
knows no international borders. This title would improve the 
Commission's ability to: share information involving cross-border fraud 
with foreign consumer protection agencies; secure confidential

[[Page S7722]]

information from those foreign agencies; take legal action in foreign 
jurisdictions; seek redress on behalf of foreign consumers victimized 
by U.S.-based wrongdoers; make criminal referrals for cross-border 
criminal activity; and strengthen its relationship with foreign 
consumer protection agencies. The Competition Subcommittee will hold a 
hearing later today on the FTC's reauthorization and will consider a 
number of issues including the Commission's cross-border fraud 
proposal.
  Not included in the bill is language that was reported by the 
Commerce Committee last Fall that would repeal the ``common carrier'' 
exemption in the FTC's organizing statute that currently precludes the 
Commission from exercising authority over certain activities of 
telecommunications common carriers. The Federal Communications 
Commission, FCC, currently has jurisdiction over these common carriers.
  While I fully support any effort to combat entities that perpetrate 
fraud on consumers, and I respect the expertise and ability of the FTC 
and FCC to seek redress for victims of such fraud, I made it clear 
during the Commerce Committee's executive session last Fall that a 
discussion was necessary between the two agencies to resolve any 
overlap in jurisdiction that may exist. It is our understanding that 
the FTC and FCC are in the process of negotiating an agreement that 
would satisfy the objectives of both agencies to further their 
respective consumer protection missions. Thus, for now, we will reserve 
judgment as to whether such a repeal is necessary.
  Meanwhile, I look forward to working on this important consumer 
protection legislation and I hope that my colleagues will agree to join 
us in expeditiously moving this reauthorization through the legislative 
process. Reauthorizing the FTC is important if the agency is to 
continue to successfully carry out its many responsibilities.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1234

       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 ``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, and $235,457,000 for fiscal year 2006.''.

     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 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).''.

              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;
       ``(2) any multinational organization, to the extent that it 
     is acting on behalf of an entity described in paragraph (1); 
     or
       ``(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.''.

     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, 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.''.
       (b) Publication of Information; Reports.--Section 6(f) of 
     the Federal Trade Commission Act (15 U.S.C. 46(f)) is 
     amended--
       (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'';
       (2) by striking ``Federal or State law enforcement agency'' 
     and inserting ``Federal, State, or foreign law enforcement 
     agency''; and
       (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

[[Page S7723]]

     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.''.

     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, 
     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--
       ``(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.
       ``(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.
       ``(3) In deciding whether to provide such assistance, the 
     Commission shall consider--
       ``(A) whether the requesting agency has agreed to provide 
     or will provide reciprocal assistance to the Commission; and
       ``(B) whether compliance with the request would prejudice 
     the public interest of the United States.
       ``(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 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) 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:

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

       ``(a) Confidentiality of Compulsory Process Issued by the 
     Commission.--
       ``(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.
       ``(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--
       ``(A) result in the transfer of assets or records outside 
     the territorial limits of the United States;
       ``(B) impede the ability of the Commission to identify or 
     trace funds;
       ``(C) endanger the life or physical safety of an 
     individual;
       ``(D) result in flight from prosecution;
       ``(E) result in destruction of or tampering with evidence;
       ``(F) result in intimidation of potential witnesses;
       ``(G) result in the dissipation or concealment of assets; 
     or
       ``(H) otherwise seriously jeopardize an investigation or 
     unduly delay a trial.
       ``(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.
       ``(b) Materials Subject to Government Notification Under 
     the Right to Financial Privacy Act.--
       ``(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).
       ``(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.
       ``(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.
       ``(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.
       ``(c) Materials Subject to Government Notification Under 
     the Electronic Communications Privacy Act.--
       ``(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,
       ``(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
       ``(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,
     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.
       ``(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).

[[Page S7724]]

       ``(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.
       ``(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.
       ``(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.
       ``(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.
       ``(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)).''.
       (b) 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 striking ``Act;'' in subparagraph (D) and inserting 
     ``Act; or''; 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 (d)(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 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.
       ``(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.
       ``(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.
       ``(d) 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, 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
       ``(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.''.

     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.
       ``(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.''.

     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 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.''.

     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.

[[Page S7725]]

       (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.
                                 ______