[Senate Report 116-256]
[From the U.S. Government Publishing Office]


                                                      Calendar No. 517
116th Congress      }                                   {       Report
                                 SENATE
 2d Session         }                                   {      116-256
_______________________________________________________________________

                                     


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

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 3132












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                August 12, 2020.--Ordered to be printed 
                
                
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                  U.S. GOVERNMENT PUBLISHING OFFICE
                  
99-010                 WASHINGTON : 2020                 
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
                
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred sixteenth congress
                             second session

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director 
               



























                                                      Calendar No. 517
116th Congress      }                                   {       Report
                                 SENATE
 2d Session         }                                   {      116-256

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



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

                                _______
                                

                August 12, 2020.--Ordered to be printed

                                _______
                                

       Mr. Wicker, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 3132]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 3132) to extend the Undertaking 
Spam, Spyware, And Fraud Enforcement With Enforcers beyond 
Borders Act of 2006, and for other purposes, having considered 
the same, reports favorably thereon without amendment and 
recommends that the bill do pass.

                          Purpose of the Bill

    The purpose of this bill is to extend the foreign law 
enforcement authorities provided to the Federal Trade 
Commission (FTC or Commission) in the Undertaking Spam, 
Spyware, And Fraud Enforcement With Enforcers beyond Borders 
Act of 2006 (U.S. SAFE WEB Act of 2006)\1\ from September 30, 
2020, to September 30, 2027. This bill would ensure the FTC 
continues to have cross-border enforcement authority and the 
international cooperation tools it needs to protect American 
consumers from unfair or deceptive acts or practices that 
originate abroad.
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    \1\Public Law 109-455.
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                          Background and Needs

    The U.S. SAFE WEB Act was enacted into law on December 22, 
2006. The Act amended the FTC Act and is intended to improve 
the Commission's ability to combat unfair or deceptive acts or 
practices that are international in scope.\2\
---------------------------------------------------------------------------
    \2\Federal Trade Commission, The U.S. SAFE WEB Act: The First Three 
Years. A Report to Congress, Dec. 2009 (https://www.ftc.gov/sites/
default/files/attachments/international-consumer-protection/
p035303safewebact2009.pdf) (accessed Jun. 29, 2020).
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    Prior to the enactment of the U.S. SAFE WEB Act of 2006, 
the FTC reported to Congress that the globalization of trade, 
improvements in international telecommunications, and the 
advent of the internet led to a rapid growth in fraudulent and 
deceptive cross-border marketing scams that harmed American 
consumers.\3\ These scams included the proliferation of spam, 
spyware, pyramid schemes, false product claims, and other 
fraudulent activities originating outside of the United 
States.\4\ To combat fraud, the FTC sought to improve its 
cooperation with its international counterparts but was 
challenged by domestic laws that prevented information sharing 
and effective coordination with foreign governments and impeded 
investigations across borders.\5\
---------------------------------------------------------------------------
    \3\Id.
    \4\Id.
    \5\Id.
---------------------------------------------------------------------------
    In June 2005, the FTC submitted legislative recommendations 
to Congress based on the Commission's experiences in its cross-
border investigations and cases.\6\ The FTC's recommendations 
included proposals that would strengthen the FTC's ability to 
fight cross-border fraud.\7\ On December 8, 2006, Congress 
passed the U.S. SAFE WEB Act.
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    \6\Id.
    \7\Id.
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    S. 3132 would ensure that the FTC maintains its authority, 
in appropriate consumer protection matters, to share 
information and coordinate with foreign law enforcement 
agencies to protect American consumers from unfair or deceptive 
acts or practices that originate abroad.

                         Summary of Provisions

    S. 3132 would do the following:
   Amend the sunset date of the U.S. SAFE WEB Act from 
        September 30, 2020 to September 30, 2027.
   Extend the FTC's authority to:
     Share compelled and confidential information with 
            foreign law enforcement agencies in appropriate 
            consumer protection matters;
     Provide investigative assistance in consumer 
            protection matters to foreign law enforcement 
            agencies;
     Initiate a proceeding under an existing Federal 
            statute to obtain testimony, documents, or other 
            evidence or information for use in foreign or 
            international proceedings;
     Obtain information it would not otherwise receive 
            from foreign entities that were previously 
            concerned about public disclosure of their 
            information;
     Assist the Attorney General in connection with 
            litigation in foreign courts on relevant matters; 
            and
     Enter into binding international consumer 
            protection agreements (with the approval of the 
            Department of State) when such agreements are 
            required as a condition for providing information 
            or reciprocal assistance.
   Require the FTC to issue a report to Congress within 
        3 years after the date of enactment on the Commission's 
        use and experience with the authority granted by the 
        U.S. SAFE WEB Act.

                          Legislative History

    S. 3132 was introduced on December 19, 2019, by Senator 
Moran (for himself and Senator Blumenthal) and was referred to 
the Committee on Commerce, Science, and Transportation of the 
Senate. On March 11, 2020, the Committee met in open Executive 
Session and, by voice vote, ordered S. 3132 reported favorably 
without amendment.
    S. 3132 is identical to H.R. 4779, introduced on October 
22, 2019, by Representative McMorris Rodgers (for herself and 
Representatives Kelly [of Illinois] and Bucshon) and referred 
to the Committee on Energy and Commerce of the House of 
Representatives. On December 16, 2019, H.R. 4779 passed the 
House, as amended, by voice vote.
    Congress last reauthorized the U.S. SAFE WEB Act on 
December 4, 2012.\8\
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    \8\Public Law 112-203.
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                            Estimated Costs

    In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

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    Under current law, the Federal Trade Commission (FTC) has 
the authority to share confidential information with foreign 
agencies and provide investigative assistance to those agencies 
to combat illegal activities originating outside the United 
States. That authority will expire on September 30, 2020; S. 
3132 would extend the authority through September 30, 2027. In 
addition, S. 3132 would authorize the appropriation of $100,000 
each year from 2021 through 2027 for the FTC to collaborate 
with foreign governments and to participate in multinational 
organizations related to law enforcement.
    Assuming appropriation of the authorized amounts, CBO 
estimates that implementing the bill would cost less than 
$500,000 over the 2021-2025 period.
    S. 3132 would impose intergovernmental and private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
CBO estimates that the cost of the mandates would not exceed 
the annual thresholds established in UMRA for intergovernmental 
and private-sector mandates ($84 million and $168 million in 
2020, respectively, adjusted annually for inflation).
    By extending preemptions of state and local liability laws, 
S. 3132 would impose an intergovernmental mandate. 
Specifically, current law preempts laws that prohibit people 
from disclosing information to the FTC and that require people 
to notify third parties if they disclose information to the 
FTC. Those preemptions expire on September 30, 2020; S. 3132 
would extend them through September 30, 2027. Although the 
preemptions would limit the application of state and local law, 
CBO estimates that they would impose no duty on state, local, 
or tribal governments that would result in additional spending.
    S. 3132 also would extend an existing mandate that exempts 
from liability private entities that voluntarily provide 
certain information about third parties to the FTC. The 
extension of such protection constitutes a mandate on those 
third-party entities because it limits their ability to file a 
claim for damages related to the disclosure. The cost of the 
mandate would be the forgone net value of settlements and 
damages that would have been awarded. Using information from 
the FTC, CBO expects that few such lawsuits would be filed and 
the cost of the mandate would be small.
    On February 14, 2020, CBO transmitted a cost estimate for 
H.R. 4779, an act to extend the Undertaking Spam, Spyware, And 
Fraud Enforcement With Enforcers Beyond Borders Act of 2006, 
and for other purposes, as passed by the House of 
Representatives on December 16, 2019. S. 3132 is similar to 
H.R. 4779 and CBO's estimate of the budgetary effects and 
mandates are the same for both pieces of legislation.
    The CBO staff contacts for this estimate are David Hughes ( 
for federal costs) and Rachel Austin (for mandates). The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
of Budget Analysis.

                      Regulatory Impact Statement

    In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       number of persons covered

    S. 3132 would not authorize any new regulations and would 
not subject any individuals or businesses to new regulations. 
To the extent a U.S. business maintains international 
operations, the FTC could bring an enforcement action against a 
U.S. company engaging in unfair or deceptive acts or practices 
outside of the United States.

                            economic impact

    S. 3132 would not have an adverse economic impact on the 
Nation. It is expected that extending the ability of the FTC to 
cooperate with international law enforcement entities to combat 
fraud will bolster legitimate global economic activity.

                                privacy

    S. 3132 would not have any adverse impact on the personal 
privacy of individuals.

                               paperwork

    S. 3132 would not increase paperwork requirements for 
private individuals or businesses. The bill would require a 
report from the FTC describing its use of and experience with 
the authority granted by the Act. The report would be due to 
Congress not later than 3 years after the date of enactment of 
the Act.

                   Congressionally Directed Spending

    In compliance with paragraph 4(b) of rule XLIV of the 
Standing Rules of the Senate, the Committee provides that no 
provisions contained in the bill, as reported, meet the 
definition of congressionally directed spending items under the 
rule.

                      Section-by-Section Analysis


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

    This section extends the sunset date of the U.S. SAFE WEB 
Act from September 30, 2020, to September 30, 2027.

Section 2. Report

    This section would require the FTC to issue a report not 
later than 3 years after the date of enactment of the Act 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 the following:
   the number of cross-border complaints received and 
        acted upon by the Commission;
   identification of the foreign agencies with which 
        the Commission has cooperated and the results of such 
        cooperation;
   a description of Commission litigation brought in 
        foreign courts and the results of such litigation; and
   any recommendations for legislation that may advance 
        the mission of the Commission in carrying out the U.S. 
        SAFE WEB Act.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, 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 
material is printed in italic, existing law in which no change 
is proposed is shown in roman):

U.S. SAFE WEB ACT OF 2006

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                [Public Law 109-455; 15 U.S.C. 44 note]

SEC. 13. SUNSET.

  Effective [September 30, 2020] September 30, 2027, this Act 
[enacting sections 57b-2a, 57b-2b, 57c-1, and 57c-2 of this 
title, amending this section, sections 45, 46, 56, 57b-2, and 
58 of this title, and section 3412 of Title 12, Banks and 
Banking, and enacting provisions set out as notes under this 
section and section 58 of this title], 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.

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