Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: President Signs Bill to Reauthorize “U.S. SAFE WEB Act,” Combating Cross-Border Fraud, (Dec 5, 2012)

By Thomas Long, J.D.

Yesterday, President Obama signed a bill (H.R. 6131) reauthorizing the U.S. SAFE WEB Act of 2006, which is set to expire next year. The measure pushes 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.

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.

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.

The bill's sponsor, Rep. Mary Bono Mack (California), who is chairman of the House Energy and Commerce Committee’s commerce, manufacturing, and trade subcommittee, said in response to the signing: “This is a win-win. It's good for American consumers. It's good for the future of e-commerce. And it's the right thing to do for our nation and our friends around the world.” The lawmaker, who is leaving Congress after 14 years, added: “With nearly 1.5 billion credit cards in use in the United States, nearly everyone in America has a stake in making certain that the FTC has the powers it needs to fight online fraud.”

News: ConsumerProtection Privacy