Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Bill to Reauthorize “U.S. SAFE WEB Act,” Combating Cross-Border Fraud, Clears Congress, (Nov 16, 2012)

By Thomas Long, J.D.

The U.S. Senate voted on November 14 to pass a bill(H.R. 6131) reauthorizing the U.S. SAFE WEB Act of 2006, which is set to expire next year. The measure would push the sunset date for the Act to September 30, 2020. Among other things, the Act gives the Federal Trade Commission the authority to share information with foreign law enforcement agencies.

Introduced by Rep. Mary Bono Mack (R, California), Chairman of the House Subcommittee on Commerce, Manufacturing and Trade, and Ranking Member G.K. Butterfield (D, North Carolina) on July 17, the bill passed the House of Representatives on September 11. The bill now awaits President Obama’s signature.

The “U.S. SAFE WEB Act” (the “Undertaking Spam, Spyware, and Fraud Enforcement with Enforcers Beyond Borders Act of 2006,” Public Law 109-455) amended the Federal Trade Commission Act, enhancing FTC enforcement tools against illegal spam, spyware, and cross-border fraud and deception. The Act authorizes the FTC to:

• Pursue and combat fraud involving international activity that harms U.S. consumers;

• Share information involving cross border fraud with foreign consumer protection agencies, subject to important safeguards;

• Protect from public disclosure confidential information received from foreign consumer protection agencies that otherwise would not be shared;

• Seek redress on behalf of foreign as well as U.S. consumers victimized by U.S.-based wrongdoers; and

• Make referrals to the U.S. Attorney General for criminal prosecution when the FTC obtains evidence of conduct that violates U.S. criminal law.

“The U.S. SAFE WEB Act provides critically important consumer protections, allowing the Federal Trade Commission to combat cross-border fraud, spam and spyware,” Rep. Bono Mack said. “Frankly, I’m very concerned that e-commerce in the future will cease to grow and flourish if consumers lose faith in their ability to be protected from online predators, jeopardizing future innovation as well as our nation’s fragile economic recovery. That’s why reauthorizing the U.S. SAFE WEB Act has been one of my top priorities this year.”

In testimony before the House Energy and Commerce Committee’s Subcommittee on Commerce, Manufacturing, and Trade on July 12, FTC International Consumer Protection Deputy Director Hugh Stevenson informed Congress that the Commission has conducted more than 100 investigations with international components, such as foreign targets, evidence, or assets, and has filed more than 50 cases involving cross-border aspects since the Act's passage. According to Stevenson, the Act’s tools have helped the Commission stop frauds costing American consumers hundreds of millions of dollars.

News: ConsumerProtection