Consumer Protection and Recovery Act

The Consumer Protection and Recovery Act (H.R. 10003) expands the enforcement power of the Federal Trade Commission (FTC). It explicitly permits the FTC to bring federal lawsuits against individuals or businesses for past violations of the laws it enforces, rather than limiting FTC lawsuits only to ongoing or prospective violations. It also gives federal courts explicit authority to order various forms of financial, contractual, and property-based remedies in FTC cases.

* **The Federal Trade Commission (FTC):** Gaining explicit authority to sue for past illegal actions and request specific financial and court-ordered remedies. * **Businesses and Individuals:** Anyone accused of violating FTC-enforced laws could face federal lawsuits and financial penalties for past conduct. * **Consumers:** May receive refunds, returned property, compensated financial losses, or canceled contracts resulting from FTC legal actions.

* **Lawsuit Scope:** The FTC is authorized to sue over violations that have already occurred, even if they are no longer happening. * **Court Remedies:** Federal courts are authorized to grant temporary, preliminary, or permanent relief. Specific authorized remedies include: * **Restitution:** Compensation for financial losses. * **Refunds:** Return of money paid by consumers. * **Contract Remedies:** Canceling (rescinding) or modifying (reforming) contracts. * **Property:** Return of seized or transferred property. * **Disgorgement:** Forcing defendants to give up unjust enrichment (ill-gotten profits). * **Application to Cases:** These powers apply to all cases pending on the date the bill becomes law, as well as any cases filed on or after that date.

The bill summary does not mention direct government appropriations, taxes, fees, or agency budget allocations. Regarding financial penalties and payments: * Courts are authorized to order defendants to pay refunds, restitution, or disgorgement of illegal profits. * **Requirement:** Any money a court orders a defendant to pay as disgorgement **must** be reduced (offset) by any amounts the defendant pays in restitution, refunds, or the value of returned property for that same violation.

* **10-Year Time Limit:** Courts are prohibited from ordering relief for violations that occurred more than 10 years before the FTC files its lawsuit. * **Foreign Travel Exception:** Any time an individual defendant spends outside the United States does not count toward the 10-year time limit, effectively extending the deadline for the FTC to sue.

This bill explicitly allows the FTC to go to court over past law violations—not just current ones—and gives courts clear authority to force wrongdoers to pay refunds, cancel contracts, return property, or give up illegal profits for actions taking place up to 10 years prior.