[House Report 116-351]
[From the U.S. Government Publishing Office]
116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-351
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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\
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\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\
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\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.
* * * * * * *