[House Report 116-351]
[From the U.S. Government Publishing Office]


116th Congress }                                            { Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                            { 116-351

======================================================================

 
  TO EXTEND THE UNDERTAKING SPAM, SPYWARE, AND FRAUD ENFORCEMENT WITH 
      ENFORCERS BEYOND BORDERS ACT OF 2006, AND FOR OTHER PURPOSES

                                _______
                                

 December 16, 2019.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Pallone, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4779]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4779) to extend the Undertaking Spam, Spyware, 
And Fraud Enforcement With Enforcers beyond Borders Act of 
2006, and for other purposes, having considered the same, 
report favorably thereon without amendment and recommend that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Committee Hearings...............................................3
 IV. Committee Consideration..........................................3
  V. Committee Votes..................................................3
 VI. Oversight Findings...............................................4
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures4
VIII.Federal Mandates Statement.......................................4

 IX. Statement of General Performance Goals and Objectives............4
  X. Duplication of Federal Programs..................................4
 XI. Committee Cost Estimate..........................................4
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......4
XIII.Advisory Committee Statement.....................................4

XIV. Applicability to Legislative Branch..............................5
 XV. Section-by-Section Analysis of the Legislation...................5
XVI. Changes in Existing Law Made by the Bill, as Reported.............

                         I. Purpose and Summary

    H.R. 4779, a bill to extend the Undertaking Spam, Spyware, 
and Fraud Enforcement With Enforcers beyond Borders Act of 2006 
(U.S. SAFE WEB Act), was introduced on October 22, 2019, by 
Reps. McMorris Rodgers (R-WA), Kelly (D-IL), and Bucshon (R-
IN). H.R. 4779 would reauthorize the U.S. SAFE WEB Act through 
fiscal year 2027. It would also require the Federal Trade 
Commission (FTC or Commission) to issue a report to Congress 
describing the Commission's use of and experience with the 
authority granted by the U.S. SAFE WEB Act.

                II. Background and Need for Legislation

    Enacted into law on December 22, 2006, the U.S. SAFE WEB 
Act amended the Federal Trade Commission Act (FTC Act) to 
improve the FTC's ability to combat unfair or deceptive acts or 
practices that are international in scope.\1\ Specifically, 
U.S. SAFE WEB Act: (1) affirms the FTC's cross-border 
enforcement authority;\2\ (2) authorizes collaboration with 
foreign law enforcement in the form of investigative 
assistance\3\ and information sharing,\4\ provided certain 
statutory factors are met; (3) bolsters the FTC's ability to 
receive information from foreign counterparts by allowing 
confidential treatment of information received;\5\ and (4) 
promotes relationship building through staff exchanges with 
foreign counterparts.\6\
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    \1\Pub. L. No. 109-455.
    \2\Id. at Sec.  3.
    \3\Id. at Sec.  4.
    \4\Id. at Sec.  6.
    \5\Id.
    \6\Id. at Sec.  9.
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    Since the law's enactment, the FTC has relied on the 
provisions in U.S. SAFE WEB Act to respond to 156 information-
sharing requests from 38 enforcement agencies in 15 foreign 
countries.\7\ The FTC has also used the U.S. SAFE WEB Act to 
issue more than 135 civil investigative demands in 63 
investigations on behalf of 16 foreign agencies from eight 
countries.\8\
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    \7\Letter from Joseph J. Simons, Chairman, Federal Trade 
Commission; Noah Joshua Phillips, Commissioner, Federal Trade 
Commission; Rohit Chopra, Commissioner, Federal Trade Commission; 
Rebecca Kelly Slaughter, Commissioner, Federal Trade Commission; and 
Christine S. Wilson, Commissioner, Federal Trade Commission, to Rep. 
Jan Schakowsky, Chairwoman, Subcommittee on Consumer Protection and 
Commerce, House Committee on Energy and Commerce and Rep. Cathy 
McMorris Rodgers, Ranking Member, Subcommittee on Consumer Protection 
and Commerce, House Committee on Energy and Commerce (Oct. 25, 2019).
    \8\Id.
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    According to the FTC's Consumer Sentinel complaint 
database, there were more than 255,000 complaints from U.S. 
consumers against foreign businesses between January 1, 2015, 
and October 16, 2019.\9\ The total dollar loss from these 
complaints reportedly exceeds $410 million.\10\
---------------------------------------------------------------------------
    \9\Id.
    \10\Id.
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    U.S. SAFE WEB Act was reauthorized in December 2012 for an 
additional seven years and is scheduled to expire on September 
30, 2020.\11\
---------------------------------------------------------------------------
    \11\Id.
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    H.R. 4779 would ensure that the FTC continues to have the 
cross-border enforcement authority and international 
cooperation tools it needs to protect American consumers from 
unfair or deceptive acts or practices that originate abroad. 
This program provides a sound foundation for related issues of 
protecting and preserving cross-border data flows that are 
essential for Privacy Shield and other such agreements. Such 
legislation helps promote our leadership on artificial 
intelligence, autonomous vehicles, quantum computing, and other 
emerging technologies.

                        III. Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearings were used to develop or 
consider H.R. 4779:
    The Subcommittee on Consumer Protection and Commerce held a 
legislative hearing on October 24, 2019, on H.R. 4779, a bill 
to extend the Undertaking Spam, Spyware, and Fraud Enforcement 
With Enforcers beyond Borders Act of 2006, and one other bill. 
The hearing was entitled, ``Reauthorizing Brand USA and the 
U.S. SAFE WEB Act.'' The Subcommittee received testimony from 
the following witnesses:
           Christopher L. Thompson, President and CEO, 
        Brand USA;
           Tori Barnes, Executive Vice President, U.S. 
        Travel Association; and
           Aaron J. Burstein, Partner, Wilkinson Barker 
        Knauer LLP.

                      IV. Committee Consideration

    H.R. 4779, a bill to extend the Undertaking Spam, Spyware, 
and Fraud Enforcement With Enforcers beyond Borders Act of 2006 
was introduced on October 22, 2019, by Reps. McMorris Rodgers 
(R-WA), Kelly (D-IL), and Bucshon (R-IN), and referred to the 
Committee on Energy and Commerce. The bill was subsequently 
referred to the Subcommittee on Consumer Protection and 
Commerce on October 23, 2019. On November 14, 2019, the 
Subcommittee met in open markup session, pursuant to notice, to 
consider H.R. 4779. No amendments were offered during the 
Subcommittee's consideration. Subsequently, the Subcommittee on 
Consumer Protection and Commerce agreed to a motion by Ms. 
Schakowsky, Chairwoman of the subcommittee, to favorably 
forward H.R. 4779 to the full Committee on Energy and Commerce, 
without amendment, by a voice vote.
    On November 20, 2019, the full Committee met in open markup 
session, pursuant to notice, to consider H.R. 4779. No 
amendments were offered during the bill's consideration. 
Subsequently, a motion by Mr. Pallone, Chairman of the 
committee, to order H.R. 4779 reported favorably to the House, 
without amendment, was agreed to by a voice vote, a quorum 
being present.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were no record votes taken on H.R. 
4779, including a Pallone motion on final passage, which was 
agreed to by a voice vote.

                         VI. Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, spending 
authority, credit authority, or an increase or decrease in 
revenues or tax expenditures.

                    VIII. Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

       IX. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to extend 
the U.S. SAFE WEB Act of 2006.

                   X. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 4779 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

    XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 4779 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. Advisory Committee Statement

    No advisory committee within the meaning of section 5(b) of 
the Federal Advisory Committee Act was created by this 
legislation.

                XIV. Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

           XV. Section-by-Section Analysis of the Legislation


Section 1. Extension of the U.S. SAFE WEB Act of 2006

    This section amends the sunset on U.S. SAFE WEB Act from 
September 30, 2020, to September 30, 2027.

Sec. 2. Report

    This section requires the FTC to issue a report not later 
than three years after the date of enactment on the 
Commission's use and experience with the authority granted by 
the U.S. SAFE WEB Act. It further specifies that the report 
shall include: (1) the number of cross-border complaints; (2) 
the foreign agencies with which the Commission has cooperated 
and the results of such cooperation; (3) Commission litigation 
brought in foreign courts; and (4) any recommendations for 
legislation that may advance the Commission in carrying out the 
U.S. SAFE WEB Act.

       XVI. Changes in Existing Law Made by the Bill, as Reported


         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                       U.S. SAFE WEB ACT OF 2006




           *       *       *       *       *       *       *
SEC. 13. SUNSET.

  Effective [September 30, 2020] September 30, 2027, this Act, 
and the amendments made by this Act, are repealed, and any 
provision of law amended by this Act shall be amended to read 
as if this Act had not been enacted into law.

           *       *       *       *       *       *       *