[Congressional Record Volume 151, Number 106 (Friday, July 29, 2005)]
[Senate]
[Pages S9533-S9537]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SMITH (for himself, Mr. McCain, Mr. Inouye, and Mr. Nelson 
        of Florida):
  S. 1608. A bill to enhance Federal Trade Commission enforcement 
against illegal spam, spyware. and cross-border fraud and deception, 
and for other purposes; to the Committee on Commerce, Science, and 
Transportation.
  Mr. SMITH. Mr. President, I rise today with Senators McCain, Inouye, 
and Nelson of Florida to introduce the ``Undertaking Spam, Spyware, and 
Fraud Enforcement With Enforcers Beyond Borders Act of 2005'' or the 
``U.S. SAFE WEB Act of 2005''.
  The Federal Trade Commission has a constitutionally mandated 
responsibility to protect the American consumer from all types of fraud 
and deception. Today, the American consumer is increasingly falling 
prey to a new type of fraud unknown just a few years ago. The US SAFE 
WEB Act of 2005 will take the important steps necessary to help combat 
this disturbing and growing trend.
  The rise in the use of the internet has provided the American 
consumer with innumerable benefits. The global market place in which we 
live knows no borders, and the FTC must be provided with all the tools 
necessary to fulfill its duty in this type of environment.
  Using internet and long-distance telephone technology, unscrupulous 
businesses are increasingly able to victimize consumers in ways not 
previously imagined. Deceptive spammers can easily hide their 
identities, forge the electronic path of their email messages, and send 
messages from anywhere in the world to anyone in the world. These 
businesses can strike quickly on a global scale, victimize thousands of 
consumers, and disappear nearly without a trace--along with their ill-
gotten gains.
  There are dangers that come into U.S. homes through some of the 
harmful online networks, including some peer-to-peer networks, who 
purposefully locate outside the United States to avoid our Federal laws 
and put American families at risk.
  Cross-Border fraud, as it is known, is becoming an increasingly 
common problem facing the American consumer and the FTC. In 1995, fewer 
than 1 percent of all consumer fraud complaints received by the FTC 
were directed at foreign entities. In less than a decade, the 
percentage had grown to 16 percent. In 2004 alone, the FTC received 
more than 47,000 complaints by U.S. consumers against foreign companies 
complaining about transactions involving more that $92 million. In the 
past three years, over 100,000 consumers logged cross-border fraud 
complaints with the FTC.
  Remarkably, these high numbers likely understate the problem. 
Consumers who reported instances of cross-border fraud only did so when 
they knew that they were complaining about foreign entities. In many 
more instances, consumers do not know that their complaints are against 
foreign entities. Fully one-third of all complaints to the FTC do not 
reveal the location of the entity being complained about.
  The Federal Trade Commission also testified at a recent Aging 
Committee hearing on elder fraud that many sweepstakes and lottery 
scams originate in Canada, and consumer fraud has become increasingly 
cross-border in nature.
  The US SAFE WEB Act helps to address the challenges posed by 
globalization of fraudulent, deceptive, and unfair practices.
  Our bill draws on established models for international cooperation 
pioneered by agencies such as the Securities and Exchange Commission 
and the Commodities Futures Trading Commission. The FTC faces 
significant challenges in battling sophisticated cross-border schemes. 
Just as improved authority to act in cross-border cases gave the SEC 
and CFTC important new tools to fulfill their missions, enactment of 
the US SAFE WEB Act would help the FTC fulfill its mission of 
protecting and assisting U.S. consumers. The Act will substantially 
improve the FTC's ability to meet the challenges posed by international 
investigations and litigation.
  The US SAFE WEB Act will provide the FTC with important new tools in 
many important areas. The provisions contained within the Act are 
needed to help the FTC to protect consumers from cross-border fraud and 
deception, and particularly to fight spam, spyware, and Internet fraud 
and deception.
  Among key provisions within the bill are those that broaden 
reciprocal information sharing, expand investigative cooperation 
between U.S. and foreign law enforcement agencies, increase information 
from foreign sources, and enhance the confidentiality of FTC 
investigations.
  These provisions are needed to allow the FTC to share important 
information with foreign agencies so that they can halt fraud, 
deception, spam, and spyware targeting U.S. citizens, and for the FTC 
to obtain, reciprocally, foreign information needed to halt these 
cnmes.
  Furthermore, this legislation enhances the FTC's ability to obtain 
consumer redress in cross-border cases. The US SAFE WEB Act would allow 
the FTC to target more resources toward foreign litigation to 
facilitate recovery of offshore assets to redress U.S. consumers.
  In the 108th Congress, Senator McCain and I introduced this 
legislation and it quickly passed the Senate by unanimous consent. 
Unfortunately, the bill was not signed into law before Congress 
adjourned. I urge my colleagues to support quick passage of this very 
important legislation this year.
  The American consumer is far too vulnerable to this growing type of 
fraud and deception. Enactment of the US SAFE WEB Act would help the 
FTC fulfill its mission of protecting and assisting U.S. consumers.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1608

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

     SECTION 1. SHORT TITLE; FINDINGS; PURPOSE.

       (a) Short Title.--This Act may be cited as the 
     ``Undertaking Spam, Spyware, And Fraud Enforcement With 
     Enforcers beyond Borders Act of 2005'' or the ``U.S. SAFE WEB 
     Act of 2005''.
       (b) 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.

[[Page S9534]]

       (c) Purpose.--The purpose of this Act is to enhance the 
     ability of the Federal Trade Commission to protect consumers 
     from illegal spam, spyware, and cross-border fraud and 
     deception and other consumer protection law violations.

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

     SEC. 3. AVAILABILITY OF REMEDIES.

       Section 5(a) of the Federal Trade Commission Act (15 U.S.C. 
     45(a)) is amended by adding at the end the following:
       ``(4)(A) For purposes of subsection (a), the term `unfair 
     or deceptive acts or practices' includes such acts or 
     practices involving foreign commerce that--
       ``(i) cause or are likely to cause reasonably foreseeable 
     injury within the United States; or
       ``(ii) involve material conduct occurring within the United 
     States.
       ``(B) All remedies available to the Commission with respect 
     to unfair and deceptive acts or practices shall be available 
     for acts and practices described in this paragraph, including 
     restitution to domestic or foreign victims.''.

     SEC. 4. POWERS OF THE COMMISSION.

       (a) Publication of Information; Reports.--Section 6(f) of 
     the Federal Trade Commission Act (15 U.S.C. 46(f)) is 
     amended--
       (1) by inserting ``(1)'' after ``such information'' the 
     first place it appears; and
       (2) by striking ``purposes.'' and inserting ``purposes, and 
     (2) to any officer or employee of any foreign law enforcement 
     agency under the same circumstances that making material 
     available to foreign law enforcement agencies is permitted 
     under section 21(b).''.
       (b) Other Powers of the Commission.--Section 6 of the 
     Federal Trade Commission Act (15 U.S.C. 46) is further 
     amended by inserting after subsection (i) and before the 
     proviso the following:
       ``(j) Investigative Assistance for Foreign Law Enforcement 
     Agencies.--
       ``(1) In general.--Upon a written 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 
     or deceptive commercial practices, or other practices 
     substantially similar to practices prohibited by any 
     provision of the laws administered by the Commission, other 
     than Federal antitrust laws (as defined in section 12(5) of 
     the International Antitrust Enforcement Assistance Act of 
     1994 (15 U.S.C. 6211(5))), to provide the assistance 
     described in paragraph (2) without requiring that the conduct 
     identified in the request constitute a violation of the laws 
     of the United States.
       ``(2) Type of assistance.--In providing assistance to a 
     foreign law enforcement agency under this subsection, the 
     Commission may--
       ``(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) when the request is from an agency acting to 
     investigate or pursue the enforcement of civil laws, or when 
     the Attorney General refers a request to the Commission from 
     an agency acting to investigate or pursue the enforcement of 
     criminal laws, 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.
       ``(3) Criteria for determination.--In deciding whether to 
     provide such assistance, the Commission shall consider all 
     relevant factors, including--
       ``(A) whether the requesting agency has agreed to provide 
     or will provide reciprocal assistance to the Commission;
       ``(B) whether compliance with the request would prejudice 
     the public interest of the United States; and
       ``(C) whether the requesting agency's investigation or 
     enforcement proceeding concerns acts or practices that cause 
     or are likely to cause injury to a significant number of 
     persons.
       ``(4) International agreements.--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 provision of 
     materials or information to the Commission, the Commission, 
     with prior approval and ongoing oversight of the Secretary of 
     State, and with final approval of the agreement by the 
     Secretary of State, may negotiate and conclude an 
     international agreement, in the name of either the United 
     States or the Commission, for the purpose of obtaining such 
     assistance, materials, or information. The Commission may 
     undertake in such an international agreement to--
       ``(A) provide assistance using the powers set forth in this 
     subsection;
       ``(B) disclose materials and information in accordance with 
     subsection (f) and section 21(b); and
       ``(C) engage in further cooperation, and protect materials 
     and information received from disclosure, as authorized by 
     this Act.
       ``(5) Additional authority.--The authority provided by 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.
       ``(6) Limitation.--The authority granted by this subsection 
     shall not authorize the Commission to take any action or 
     exercise any power with respect to a bank, a savings and loan 
     institution described in section 18(f)(3) (15 U.S.C. 
     57a(f)(3)), a Federal credit union described in section 
     18(f)(4) (15 U.S.C. 57a(f)(4)), or a common carrier subject 
     to the Act to regulate commerce, except in accordance with 
     the undesignated proviso following the last designated 
     subsection of section 6 (15 U.S.C. 46).
       ``(7) Assistance to certain countries.--The Commission may 
     not provide investigative assistance under this subsection to 
     a foreign law enforcement agency from a foreign state that 
     the Secretary of State has determined, in accordance with 
     section 6(j) of the Export Administration Act of 1979 (50 
     U.S.C. App. 2405(j)), has repeatedly provided support for 
     acts of international terrorism, unless and until such 
     determination is rescinded pursuant to section 6(j)(4) of 
     that Act (50 U.S.C. App.2405(j)(4)).
       ``(k) Referral of Evidence for Criminal Proceedings.--
       ``(1) In general.--Whenever the Commission obtains evidence 
     that any person, partnership, or corporation, either domestic 
     or foreign, has engaged in conduct that may constitute a 
     violation of Federal criminal law, to transmit such evidence 
     to the Attorney General, who may institute criminal 
     proceedings under appropriate statutes. Nothing in this 
     paragraph affects any other authority of the Commission to 
     disclose information.
       ``(2) International information.--The Commission shall 
     endeavor to ensure, with respect to memoranda of 
     understanding and international agreements it may conclude, 
     that material it has obtained from foreign law enforcement 
     agencies acting to investigate or pursue the enforcement of 
     foreign criminal laws may be used for the purpose of 
     investigation, prosecution, or prevention of violations of 
     United States criminal laws.
       ``(l) Expenditures for Cooperative Arrangements.--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
       ``(C) any other related lodging or subsistence.''.
       (c) 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(l) 
     of the Federal Trade Commission Act (15 U.S.C. 46(l)) (as 
     added by subsection (b) of this section), including operating 
     expenses and other costs of the following bilateral and 
     multilateral cooperative law enforcement agencies and 
     organizations:
       (1) The International Consumer Protection and Enforcement 
     Network.
       (2) The International Competition Network.
       (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.
       (d) Conforming Amendment.--Section 6 of the Federal Trade 
     Commission Act (15 U.S.C. 46) is amended by striking 
     ``clauses (a) and (b)'' in the proviso following subsection 
     (l) (as added by subsection (b) of this section) and 
     inserting ``subsections (a), (b), and (j)''.

     SEC. 5. 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) Foreign Litigation.--
       ``(1) Commission attorneys.--With the concurrence of the 
     Attorney General, the Commission may designate Commission 
     attorneys to assist the Attorney General in connection with 
     litigation in foreign courts on particular matters in which 
     the Commission has an interest.

[[Page S9535]]

       ``(2) Reimbursement for foreign counsel.--The Commission is 
     authorized to expend appropriated funds, upon agreement with 
     the Attorney General, to reimburse the Attorney General for 
     the retention of foreign counsel for litigation in foreign 
     courts and for expenses related to litigation in foreign 
     courts in which the Commission has an interest.
       ``(3) Limitation on use of funds.--Nothing in this 
     subsection authorizes the payment of claims or judgments from 
     any source other than the permanent and indefinite 
     appropriation authorized by section 1304 of title 31, United 
     States Code.
       ``(4) Other authority.--The authority provided by this 
     subsection is in addition to any other authority of the 
     Commission or the Attorney General.''.

     SEC. 6. SHARING INFORMATION WITH FOREIGN LAW ENFORCEMENT 
                   AGENCIES.

       (a) Material Obtained Pursuant to Compulsory Process.--
     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 an 
     appropriate official of any such foreign law enforcement 
     agency, either by a prior agreement or memorandum of 
     understanding with the Commission or by other written 
     certification, that such material will be maintained in 
     confidence and will be used only for official law enforcement 
     purposes, if--
       ``(A) the foreign law enforcement agency has set forth a 
     bona fide legal basis for its authority to maintain the 
     material in confidence;
       ``(B) the materials are to be used for purposes of 
     investigating, or engaging in enforcement proceedings related 
     to, possible violations of--
       ``(i) foreign laws prohibiting fraudulent or deceptive 
     commercial practices, or other practices substantially 
     similar to practices prohibited by any law administered by 
     the Commission;
       ``(ii) a law administered by the Commission, if disclosure 
     of the material would further a Commission investigation or 
     enforcement proceeding; or
       ``(iii) with the approval of the Attorney General, other 
     foreign criminal laws, if such foreign criminal laws are 
     offenses defined in or covered by a criminal mutual legal 
     assistance treaty in force between the government of the 
     United States and the foreign law enforcement agency's 
     government;
       ``(C) the appropriate Federal banking agency (as defined in 
     section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 
     1813(q)) or, in the case of a Federal credit union, the 
     National Credit Union Administration, has given its prior 
     approval if the materials to be provided under subparagraph 
     (B) are requested by the foreign law enforcement agency for 
     the purpose of investigating, or engaging in enforcement 
     proceedings based on, possible violations of law by a bank, a 
     savings and loan institution described in section 18(f)(3) of 
     the Federal Trade Commission Act (15 U.S.C. 57a(f)(3)), or a 
     Federal credit union described in section 18(f)(4) of the 
     Federal Trade Commission Act (15 U.S.C. 57a(f)(4)); and
       ``(D) the foreign law enforcement agency is not from a 
     foreign state that the Secretary of State has determined, in 
     accordance with section 6(j) of the Export Administration Act 
     of 1979 (50 U.S.C. App. 2405(j)), has repeatedly provided 
     support for acts of international terrorism, unless and until 
     such determination is rescinded pursuant to section 6(j)(4) 
     of that Act (50 U.S.C. App. 2405(j)(4)).
     Nothing in the preceding sentence authorizes the disclosure 
     of material obtained in connection with the administration of 
     the Federal antitrust laws or foreign antitrust laws (as 
     defined in paragraphs (5) and (7), respectively, 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) 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 to read asfollows:
       ``(f) Exemption From Public Disclosure.--
       ``(1) In General.--Any material which is received by the 
     Commission in any investigation, a purpose of which is to 
     determine whether any person may have violated any provision 
     of the laws administered by the Commission, and which is 
     provided pursuant to any compulsory process under this Act or 
     which is provided voluntarily in place of such compulsory 
     process shall not be required to be disclosed under section 
     552 of title 5, United States Code, or any other provision of 
     law, except as provided in paragraph (2)(B) of this section.
       ``(2) Material obtained from a foreign source.--
       ``(A) In general.--Except as provided in subparagraph (B) 
     of this paragraph, the Commission shall not be required to 
     disclose under section 552 of title 5, United States Code, or 
     any other provision of law--
       ``(i) any 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, or has precluded such 
     disclosure under other use limitations, as a condition of 
     providing the material;
       ``(ii) any material reflecting a consumer complaint 
     obtained from any other foreign source, if that foreign 
     source supplying the material has requested confidential 
     treatment as a condition of providing the material; or
       ``(iii) any 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) Savings provision.--Nothing in this subsection 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. 7. CONFIDENTIALITY; DELAYED NOTICE OF PROCESS.

       (a) In General.--The Federal Trade Commission Act (15 
     U.S.C. 41 et seq.) is amended by inserting after section 21 
     the following:

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

       ``(a) Application With Other Laws.--The Right to Financial 
     Privacy Act (12 U.S.C. 3401 et seq.) and chapter 121 of title 
     18, United States Code, shall apply with respect to the 
     Commission, except as otherwise provided in this section.
       ``(b) Procedures for Delay of Notification or Prohibition 
     of Disclosure.--The procedures for delay of notification or 
     prohibition of disclosure under the Right to Financial 
     Privacy Act (12 U.S.C. 3401 et seq.) and chapter 121 of title 
     18, United States Code, including procedures for extensions 
     of such delays or prohibitions, shall be available to the 
     Commission, provided that, notwithstanding any provision 
     therein--
       ``(1) a court may issue an order delaying notification or 
     prohibiting disclosure (including extending such an order) in 
     accordance with the procedures of section 1109 of the Right 
     to Financial Privacy Act (12 U.S.C. 3409) (if notification 
     would otherwise be required under that Act), or section 2705 
     of title 18, United States Code, (if notification would 
     otherwise be required under chapter 121 of that title), if 
     the presiding judge or magistrate judge finds that there is 
     reason to believe that such notification or disclosure may 
     cause an adverse result as defined in subsection (g) of this 
     section; and
       ``(2) if notification would otherwise be required under 
     chapter 121 of title 18, United States Code, the Commission 
     may delay notification (including extending such a delay) 
     upon the execution of a written certification in accordance 
     with the procedures of section 2705 of that title if the 
     Commission finds that there is reason to believe that 
     notification may cause an adverse result as defined in 
     subsection (g) of this section.
       ``(c) Ex Parte Application by Commission.--
       ``(1) In general.--If neither notification nor delayed 
     notification by the Commission is required under the Right to 
     Financial Privacy Act (12 U.S.C. 3401 et seq.) or chapter 121 
     of title 18, United States Code, the Commission may apply ex 
     parte to a presiding judge or magistrate judge for an order 
     prohibiting the recipient of compulsory process issued by the 
     Commission from disclosing to any other person the existence 
     of the process, notwithstanding any law or regulation of the 
     United States, or under the constitution, or any law or 
     regulation, of any State, political subdivision of a State, 
     territory of the United States, or the District of Columbia. 
     The presiding judge or magistrate judge may enter such an 
     order granting the requested prohibition of disclosure for a 
     period not to exceed 60 days if there is reason to believe 
     that disclosure may cause an adverse result as defined in 
     subsection (g). The presiding judge or magistrate judge may 
     grant extensions of this order of up to 30 days each in 
     accordance with this subsection, except that in no event 
     shall the prohibition continue in force for more than a total 
     of 9 months.
       ``(2) Application.--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.
       ``(3) Limitation.--No order issued under this subsection 
     shall prohibit any recipient from disclosing to a Federal 
     agency that the recipient has received compulsory process 
     from the Commission.
       ``(d) No Liability for Failure To Notify.--If neither 
     notification nor delayed notification by the Commission is 
     required under the Right to Financial Privacy Act (12 U.S.C. 
     3401 et seq.) or chapter 121 of title 18, United States Code, 
     the recipient of compulsory process issued by the Commission 
     under this Act shall not be liable under any law or 
     regulation of the United States, or under the constitution, 
     or any law or regulation, of any State, political subdivision 
     of a State, territory of the United States, or the District 
     of Columbia, or under any contract or other legally 
     enforceable agreement, for failure to provide notice to any 
     person that such process has been issued or that the 
     recipient has provided information in response to such 
     process. The preceding sentence does not exempt any recipient 
     from liability for--
       ``(1) the underlying conduct reported;
       ``(2) a failure to comply with the record retention 
     requirements under section 1104(c) of the Right to Financial 
     Privacy Act (12 U.S.C. 3404), where applicable; or
       ``(3) any failure to comply with any obligation the 
     recipient may have to disclose to a

[[Page S9536]]

     Federal agency that the recipient has received compulsory 
     process from the Commission or intends to provide or has 
     provided information to the Commission in response to such 
     process.
       ``(e) Venue and Procedure.--
       ``(1) In general.--All judicial proceedings initiated by 
     the Commission under the Right to Financial Privacy Act (12 
     U.S.C. 3401 et seq.), chapter 121 of title 18, United States 
     Code, or this section may be brought in the United States 
     District Court for the District of Columbia or any other 
     appropriate United States District Court. All ex parte 
     applications by the Commission under this section related to 
     a single investigation may be brought in a single proceeding.
       ``(2) 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) Section Not to Apply to Antitrust Investigations or 
     Proceedings.--This section shall not apply to an 
     investigation or proceeding related to the administration of 
     Federal antitrust laws or foreign antitrust laws (as defined 
     in paragraphs (5) and (7), respectively, of section 12 of the 
     International Antitrust Enforcement Assistance Act of 1994 
     (15 U.S.C. 6211).
       ``(g) Adverse Result Defined.--For purposes of this section 
     the term `adverse result' means--
       ``(1) endangering the life or physical safety of an 
     individual;
       ``(2) flight from prosecution;
       ``(3) the destruction of, or tampering with, evidence;
       ``(4) the intimidation of potential witnesses; or
       ``(5) otherwise seriously jeopardizing an investigation or 
     proceeding related to fraudulent or deceptive commercial 
     practices or persons involved in such practices, or unduly 
     delaying a trial related to such practices or persons 
     involved in such practices, including, but not limited to, 
     by--
       ``(A) the transfer outside the territorial limits of the 
     United States of assets or records related to fraudulent or 
     deceptive commercial practices or related to persons involved 
     in such practices;
       ``(B) impeding the ability of the Commission to identify 
     persons involved in fraudulent or deceptive commercial 
     practices, or to trace the source or disposition of funds 
     related to such practices; or
       ``(C) the dissipation, fraudulent transfer, or concealment 
     of assets subject to recovery by the Commission.''.
       (b) Conforming Amendment.--Section 16(a)(2) of the Federal 
     Trade Commission Act (15 U.S.C. 56(a)(2)) is amended--
       (1) in subparagraph (C) by striking ``or'' after the 
     semicolon;
       (2) in subparagraph (D) by inserting ``or'' after the 
     semicolon; and
       (3) by inserting after subparagraph (D) the following:
       ``(E) under section 21A of this Act;''.

     SEC. 8. PROTECTION FOR VOLUNTARY PROVISION OF INFORMATION.

       The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
     further amended by adding after section 21A (as added by 
     section 7 of this Act) the following:

     ``SEC. 21B. PROTECTION FOR VOLUNTARY PROVISION OF 
                   INFORMATION.

       ``(a) In General.--
       ``(1) No liability for providing certain material.--An 
     entity described in paragraphs (2) or (3) of subsection (d) 
     that voluntarily provides material to the Commission that 
     such entity reasonably believes is relevant to--
       ``(A) a possible unfair or deceptive act or practice, as 
     defined in section 5(a) of this Act; or
       ``(B) 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 under the constitution, or any law 
     or regulation, of any State, political subdivision of a 
     State, territory of the United States, or the District of 
     Columbia, for such provision of material or for any failure 
     to provide notice of such provision of material or of 
     intention to so provide material.
       ``(2) Limitations.--Nothing in this subsection shall be 
     construed to exempt any such entity from liability--
       ``(A) for the underlying conduct reported; or
       ``(B) to any Federal agency for providing such material or 
     for any failure to comply with any obligation the entity may 
     have to notify a Federal agency prior to providing such 
     material to the Commission.
       ``(b) Certain Financial Institutions.--An entity described 
     in paragraph (1) of subsection (d) shall, in accordance with 
     section 5318(g)(3) of title 31, United States Code, be exempt 
     from liability for making a voluntary disclosure to the 
     Commission of any possible violation of law or regulation, 
     including--
       ``(1) a disclosure regarding assets, including assets 
     located in foreign jurisdictions--
       ``(A) related to possibly fraudulent or deceptive 
     commercial practices;
       ``(B) related to persons involved in such practices; or
       ``(C) otherwise subject to recovery by the Commission; or
       ``(2) a disclosure regarding suspicious chargeback rates 
     related to possibly fraudulent or deceptive commercial 
     practices.
       ``(c) Consumer Complaints.--Any entity described in 
     subsection (d) that voluntarily provides consumer complaints 
     sent to it, or information contained therein, to the 
     Commission shall not be liable to any person under any law or 
     regulation of the United States, or under the constitution, 
     or any law or regulation, of any State, political subdivision 
     of a State, territory of the United States, or the District 
     of Columbia, for such provision of material or for any 
     failure to provide notice of such provision of material or of 
     intention to so provide material. This subsection shall not 
     provide any exemption from liability for the underlying 
     conduct.
       ``(d) Application.--This section applies to the following 
     entities, whether foreign or domestic:
       ``(1) A financial institution as defined in section 5312 of 
     title 31, United States Code.
       ``(2) To the extent not included in paragraph (1), 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, money orders, or similar instruments.
       ``(3) A courier service, a commercial mail receiving 
     agency, an industry membership organization, a payment system 
     provider, a consumer reporting agency, a domain name 
     registrar or registry acting as such, and a provider of 
     alternative dispute resolution services.
       ``(4) An Internet service provider or provider of telephone 
     services.''.

     SEC. 9. STAFF EXCHANGES.

       The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is 
     amended by adding after section 25 the following new section:

     ``SEC. 25A. STAFF EXCHANGES.

       ``(a) In General.--The Commission may--
       ``(1) retain or employ officers or employees of foreign 
     government agencies on a temporary basis as employees of the 
     Commission pursuant to section 2 of this Act or section 3101 
     or section 3109 of title 5, United States Code; and
       ``(2) detail officers or employees of the Commission to 
     work on a temporary basis for appropriate foreign government 
     agencies.
       ``(b) Reciprocity and Reimbursement.--The staff 
     arrangements described in 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.
       ``(c) Standards of Conduct.--A person appointed under 
     subsection (a)(1) shall be subject to the provisions of law 
     relating to ethics, conflicts of interest, corruption, and 
     any other criminal or civil statute or regulation governing 
     the standards of conduct for Federal employees that are 
     applicable to the type of appointment.''.

     SEC. 10. INFORMATION SHARING WITH FINANCIAL REGULATORS.

       Section 1112(e) of the Right to Financial Privacy Act of 
     1978 (12 U.S.C. 3412(e)) is amended by inserting ``the 
     Federal Trade Commission,'' after ``the Securities and 
     Exchange Commission,''.

     SEC. 11. AUTHORITY TO ACCEPT REIMBURSEMENTS, GIFTS, AND 
                   VOLUNTARY AND UNCOMPENSA TED 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 25A, as added by section 9 
     of this Act, 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 
     agency, or payment or reimbursement made on behalf of such 
     agency, 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 10 title 31, United States Code, accept voluntary and 
     uncompensated services.
       ``(b) Limitations.--
       ``(1) Conflicts of interest.--The Commission shall 
     establish written guidelines setting forth criteria to be 
     used in determining whether the acceptance, holding, 
     administration, or use of a gift, donation, or bequest 
     pursuant to subsection (a) would reflect unfavorably upon the 
     ability of the Commission or any employee to carry out its 
     responsibilities or official duties in a fair and objective 
     manner, or would compromise the integrity or the appearance 
     of the integrity of its programs or any official involved in 
     those programs.
       ``(2) Voluntary services.--A person who provides voluntary 
     and uncompensated service under subsection (a) shall be 
     considered a Federal employee for purposes of--
       ``(A) chapter 81 of title 5, United States Code, (relating 
     to compensation for injury); and
       ``(B) the provisions of law relating to ethics, conflicts 
     of interest, corruption, and any

[[Page S9537]]

     other criminal or civil statute or regulation governing the 
     standards of conduct for Federal employees.
       ``(3) Tort liability of volunteers.--A person who provides 
     voluntary and uncompensated service under subsection (a), 
     while assigned to duty, shall be deemed a volunteer of a 
     nonprofit organization or governmental entity for purposes of 
     the Volunteer Protection Act of 1997 (42 U.S.C. 14501 et 
     seq.). Subsection (d) of section 4 of such Act (42 U.S.C. 
     14503(d)) shall not apply for purposes of any claim against 
     such volunteer.''.

     SEC. 12. PRESERVATION OF EXISTING AUTHORITY.

       The authority provided by this Act, and by the Federal 
     Trade Commission Act (15 U.S.C. 41 et seq.) and the Right to 
     Financial Privacy Act (12 U.S.C. 3401 et seq.), as such Acts 
     are amended by this Act, is in addition to, and not in lieu 
     of, any other authority vested in the Federal Trade 
     Commission or any other officer of the United States.

     SEC. 13. REPORT.

       Not later than 3 years after the date of enactment of this 
     Act, the Federal Trade Commission shall transmit to Congress 
     a report describing its use of and experience with the 
     authority granted by this Act, along with any recommendations 
     for additional legislation. The report shall include--
       (1) the number of cross-border complaints received by the 
     Commission;
       (2) identification of the foreign agencies to which the 
     Commission has provided nonpublic investigative information 
     under this Act;
       (3) the number of times the Commission has used compulsory 
     process on behalf of foreign law enforcement agencies 
     pursuant to section 6 of the Federal Trade Commission Act (15 
     U.S.C. 46), as amended by section 4 of this Act;
       (4) a list of international agreements and memoranda of 
     understanding executed by the Commission that relate to this 
     Act;
       (5) the number of times the Commission has sought delay of 
     notice pursuant to section 21A of the Federal Trade 
     Commission Act, as added by section 7 of this Act, and the 
     number of times a court has granted a delay;
       (6) a description of the types of information private 
     entities have provided voluntarily pursuant to section 21B of 
     the Federal Trade Commission Act, as added by section 8 of 
     this Act;
       (7) a description of the results of cooperation with 
     foreign law enforcement agencies under section 21 of the 
     Federal Trade Commission Act (15 U.S.C. 57-2) as amended by 
     section 6 of this Act;
       (8) an analysis of whether the lack of an exemption from 
     the disclosure requirements of section 552 of title 5, United 
     States Code, with regard to information or material 
     voluntarily provided relevant to possible unfair or deceptive 
     acts or practices, has hindered the Commission in 
     investigating or engaging in enforcement proceedings against 
     such practices; and
       (9) a description of Commission litigation brought in 
     foreign courts.

                          ____________________