[Congressional Record Volume 167, Number 129 (Thursday, July 22, 2021)]
[Extensions of Remarks]
[Pages E798-E799]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  CONSUMER PROTECTION AND RECOVERY ACT

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                         Tuesday, July 20, 2021

  Ms. JACKSON LEE. Mr. Speaker, I rise today in support of H.R. 2668, 
the ``Consumer Protection and Recovery Act'', which will ensure that 
the Federal Trade Commission (FTC) can protect American consumers and 
put money back in the pockets of consumers who have been the victims of 
fraud and other scams by amending the Federal Trade Commission Act (FTC 
Act) to explicitly provide the FTC the ability to obtain both 
injunctive and

[[Page E799]]

monetary equitable relief for all violations of the laws it enforces.
  Specifically, this bill would:
  Add a new subsection (e) to section 13 of the FTC Act that specifies 
types of equitable relief the FTC may pursue: restitution for losses, 
contract reformation and recission, money refunds, and the return of 
property;
  Provide the FTC disgorgement authority to seek court orders requiring 
bad actors repay unjust gains acquired in violation of the law.
  Clarify that the FTC may seek temporary restraining orders and 
preliminary injunctions without bond and that any relief sought under 
section 13(b) may be for past violations in addition to ongoing and 
imminent violations.
  As the Nation's premier consumer protection agency, the FTC is 
directed to enforce numerous statutes: the core of which is section 5 
of the FTC Act mandating the agency to prevent unfair or deceptive acts 
or practices and unfair methods of competition.
  Section 13(b) of the FTC Act authorizes the FTC to bring suit in 
federal courts seeking relief for consumers and is a critical 
enforcement tool the FTC uses to combat fraud and scams under section 
5.
  In 2020 alone, the FTC returned more than $482 million to over 1.6 
million consumer victims of fraud or illegal business practices.
  The FTC's restitution authority under section 13(b) was settled law 
for over 40 years, but beginning in 2017, the Seventh Circuit Court of 
Appeals reversed its own precedent to overturn FTC authority under 
section 13(b) to obtain monetary relief and the Third Circuit soon 
followed.
  Because of these decisions, close to 48 million Americans in six 
states became unable to obtain monetary redress under 13(b).
  Then, on April 22, 2021, the Supreme Court held in AMG Capital 
Management v. FTC that section 13(b) does not allow the FTC to seek 
monetary relief or require bad actors to return money earned through 
illegal activity.
  According to Acting Chairwoman Slaughter, the Supreme Court decision 
``deprived the FTC of the strongest tool [the FTC] had to help 
consumers.''
  Mr. Speaker, all five FTC Commissioners have repeatedly urged 
Congress to take quick action to pass legislation reaffirming FTC 
authority under section 13(b).
  H.R. 2668 does exactly that, by restoring nearly forty years of 
precedent and giving the FTC the ability to protect Americans from 
scams and unethical business practices.
  Americans need this protection, because every day, and far too often, 
individuals in Texas and across the country fall victim to financial 
scammers.
  The COVID-19 pandemic has given rise to an increase of scams and 
fraud that prey on consumers' fears and financial insecurities, and 
inaction on this issue is not an option as it will only embolden bad 
actors.
  H.R. 2668 will ensure that the FTC maintains its ability to return 
money to the victims of scams.
  Seniors especially need this protection, because they have worked 
their entire lives with the promise of a safe and secure retirement, 
but scammers and unscrupulous businesses are taking advantage of 
uncertainty surrounding the pandemic and working overtime to target 
them.
  Retirement accounts are not the only damage these scams cause--they 
damage the independence and trust of a vulnerable community.
  During the COVID-19 pandemic, we have seen instances of fraud rise in 
unprecedented numbers, as scammers attempt to take advantage of senior 
citizens and deprive them of their hard-earned savings.
  Bad actors preying on older Americans is, unfortunately, nothing new, 
but in the midst of a global pandemic impacting Americans' lives and 
livelihoods, cracking down on those scams must be a priority.
  One such scam was thwarted by Houston police and the Harris County 
District Attorney, who made an arrest in February in an international 
cyber-scam that bilked unsuspecting, mostly elderly victims out of more 
than $1 million.
  One victim of the scam, Asuncion Peppers, 74, a retired medical 
technician knows that first hand; She was bilked out of her life 
savings.
  Hackers contacted Ms. Peppers on Facebook, pretending to be one of 
her Facebook friends.
  She was told she was eligible for a government grant of almost one 
million dollars and all she had to do was send a check to pay taxes.
  Investigators believes the scammers were operating from Nigeria, 
defrauding senior citizens in the U.S. and around the world.
  Before Ms. Peppers realized she was being conned, she sent checks 
totaling $87,000 hard-earned money.
  She said that she worked three jobs to build her life savings.
  Ms. Peppers and her husband are just two of 38 victims bilked out of 
more than $1.3 million before the fraud was discovered.
  This story is not an isolated incident: although 1 in 20 seniors in 
the U.S. is a target of fraud schemes, the National Adult Protective 
Services Association has found that only 1 in 44 seniors report that 
they are victims of a fraud scheme.
  During these unprecedented times, it is imperative that Congress pass 
legislation that protects U.S. consumers and honest businesses from 
wrongdoers who steal money through fraud and deception.
  Mr. Speaker, we need to strengthen federal prevention efforts and 
ensure leaders in the public and private sectors are collaborating on 
effective safeguards.
  This begins with ensuring that the FTC has the explicit authority to 
obtain both injunctive and monetary relief for all violations of the 
laws it enforces.
  I urge all members to join me in voting to pass H.R. 2668, the 
``Consumer Protection and Recovery Act.''

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