Rep. Sewell Votes to Strengthen Consumer Protections Amid Surge in Scams and Fraud during Pandemic

Today, U.S. Rep. Terri Sewell (AL-07) voted to strengthen protections for consumers by passing H.R. 2668, the Consumer Protection and Recovery Act. This critical bill restores the Federal Trade Commission's (FTC) authority to go to court to get victimized consumers and businesses their money back from scammers and other lawbreakers after the Supreme Court gutted the agency's authority earlier this year. The bill passed in the House of Representatives amid a surge in scams and fraud during the COVID-19 pandemic.

"Too often, scammers prey on society's most vulnerable, particularly our seniors, veterans, small businesses, and the disabled," said Rep. Sewell. "During the COVID-19 pandemic, we've seen a surge in this type of illegal activity."

"This is simple," continued Sewell. "When hard-working Alabamians fall victim to financial scams, the FTC should have the authority to step in and return them their money. That's why I was proud to support the Consumer Protection and Recovery Act and thrilled to see it pass the House today. With this bill, we are sending a clear message: government must work for the people."

For more than forty years, the FTC used section 13(b) of the FTC Act to return money taken by scammers, fraudsters, and other lawbreakers to consumers. In fact, in the last three years alone, the FTC returned $11.5 billion to nearly 10 million consumers across every state. Those benefiting most 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.

However, on April 22, 2021, that monetary relief for consumers stopped when 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 -- despite the fact that the FTC had been doing so for over forty years.

The Consumer Protection and Recovery Act restores the FTC's authority to seek monetary relief as it had been successfully doing for over forty 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 rescission, monetary refunds, and the refund of property, as well as forcing bad actors to return their ill-gotten gains.

The Consumer Protection and Recovery Act receives widespread support from key groups including:

AFL-CIO
Americans for Financial Reform
Consumer Federation of America
Consumer Reports
Consumer Action
National Consumers League
National Association of Consumer Advocates
National Consumer Law Center
Privacy Rights Clearinghouse
Public Citizen
U.S. PIRG
Council for Civil Justice and Consumer Rights
Veterans for Common Sense
Veterans Education Success
Center for Digital Democracy
Center for Justice & Democracy
Access Now
TruthinAdvertising.org
New America's Open Technology Institute
Media Alliance
Common Sense Media
Fairplay
Public Law Center
Public Good Law Center
Public Justice
Public Knowledge
In addition, a number of business groups support the bill, including:

The American Association of Franchisees and Dealers
Fair Franchising Initiative
National Coalition of Associations of 7-Eleven Franchisees
National TUPSSO Franchise Owners Association (UPS Stores)

Source