Congressman Gonzalez Votes to Protect Consumers and Businesses From Scammers

WASHINGTON – On Tuesday, Congressman Vicente Gonzalez (TX-15) voted in favor of H.R. 2668, The Consumer Protection and Recovery Act. This critical legislation restores the Federal Trade Commission's (FTC) authority to get victimized consumers and businesses their money back from scammers and other lawbreakers, an authority the Supreme Court gutted earlier this year.

This bill restores the FTC's authority to seek monetary relief, an authority the FTC has used successfully for over 40 years, by amending the FTC Act to authorize the agency to obtain both injunctive and monetary equitable relief, including monetary redress for consumers in court for all violations of the laws the FTC enforces. Those benefiting from the FTC's efforts often include senior citizens, veterans, small businesses, and the most vulnerable members of society, all of whom tend to be the most frequent victims of scams and other fraudulent activities.

"I came to Congress to continue protecting consumers from fraudulent activity and this legislation will empower the federal government to protect South Texans," said Congressman Gonzalez. "We have a duty to protect U.S. consumers and businesses from the predatory tactics of scammers. The Consumer Protection and Recovery Act is an important step toward protecting honest, hardworking Americans and provides the FTC with the proper authority to address these grievances and hold bad actors accountable."

The bill now moves to the Senate for its consideration. More information on the bill is available here and below.

Background:

• Over the last forty-plus years, the Federal Trade Commission (FTC) used section 13(b) of the FTC Act to return money taken by scammers, fraudsters, and other lawbreakers to consumers. In the last three years alone, the FTC returned $11.5 billion to nearly 10 million consumers across every state.
• In using section 13(b), the FTC has returned billions of dollars to American consumers harmed by illegal practices that range from misrepresentations about everything from computer malware to education scams, to anticompetitive drug prices, to pyramid schemes, to government imposter scams, and so much more.
• However, on April 22, 2021, that monetary relief for consumers stopped. On that date, the U.S. Supreme Court ruled that section 13(b) of the FTC Act is limited to stopping or mandating certain conduct and does not allow the FTC to seek equitable monetary relief or require bad actors to return money earned through illegal activity – even though the FTC had been doing so for over 40 years.
• The FTC is the nation's primary consumer protection agency, but the Supreme Court's decision, according to then-FTC Acting Chairwoman Rebecca Slaughter, "deprived the FTC of the strongest tool [the FTC] had to help consumers."
• This bill restores the FTC's authority to seek monetary relief that the FTC has been successfully using for over 40 years by amending section 13(b) of the FTC Act to provide the FTC with express authority to obtain both injunctive and monetary equitable relief, including monetary redress for consumers in court for all violations of the laws FTC enforces. The bill also makes explicit that the FTC may pursue many kinds of equitable relief, including restitution for losses, contract reformation and recission, monetary refunds, and the refund of property, as well as forcing bad actors to return their ill-gotten gains.
• Finally, this bill is particularly timely because the COVID-19 pandemic has given rise to a sharp rise in scams and fraud that prey on consumers' fears and financial insecurities.

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