Section 1 Short title
This Act may be cited as the “Consumer Protection Remedies Act of 2022”.
Consumer Protection Remedies Act of 2022
A BILL
To amend section 13 of the Federal Trade Commission Act to provide for equitable relief, and for other purposes.
Sec. 2 Amendments to the Federal Trade Commission Act
in subsection (b)—
in paragraph (1), by striking “is violating, or is about to violate,” and inserting “has violated, is violating, or is about to violate”;
in paragraph (2)—
by inserting “either (A)” before “the enjoining thereof”; and
by inserting “or (B) the permanent enjoining thereof or the ordering of an equitable remedy under subsection (e)” after “final,”; and
in the flush text following paragraph (2)—
by striking “to enjoin any such act or practice” and inserting “to obtain such injunction or remedy”;
by striking “Upon a proper showing that” and inserting “In a case brought under paragraph (2)(A), upon a proper showing that”;
by striking “such action” and inserting “a temporary restraining order or preliminary injunction”;
by striking “without bond”;
by striking “That in proper cases the Commission may seek, and after proper proof, the court may issue, a permanent injunction” and inserting “That in a case brought under paragraph (2)(B), after proper proof and upon a showing that a permanent injunction or equitable remedy under subsection (e) would be in the public interest, the court may issue a permanent injunction, an equitable remedy under subsection (e), or any other relief as the court determines to be just and proper, including temporary or preliminary equitable relief”;
by striking “Any suit may” and inserting “Any suit under paragraph (2) may”; and
by striking “any suit under this section” and inserting “any such suit”; and
by adding at the end the following new subsection:
“(e) Equitable remedies
“(1) Restitution; contract rescission and reformation
“(A) In general—In a suit brought under subsection (b)(2)(B) with respect to a violation of a provision of law enforced by the Commission, the Commission may seek, and the court may order—
“(i) restitution for consumer loss resulting from such violation;
“(ii) rescission or reformation of contracts; and
“(iii) the refund of money or return of property.
“(B) Limitations period—Relief under this paragraph shall not be available for a claim arising more than 10 years before the filing of the Commission’s suit under subsection (b)(2)(B) with respect to the violation that gave rise to the claim.
“(2) Disgorgement
“(A) In general—In a suit brought under subsection (b)(2)(B) with respect to a violation of a provision of law enforced by the Commission, the Commission may seek, and the court may order, disgorgement of any unjust enrichment that a person, partnership, or corporation obtained as a result of that violation.
“(B) Calculation—Any disgorgement that is ordered with respect to a person, partnership, or corporation under subparagraph (A) shall be offset by any amount of restitution that the person, partnership, or corporation is ordered to pay under paragraph (1).
“(C) Limitations period—Disgorgement under this paragraph shall be limited to any unjust enrichment a person, partnership, or corporation obtained in the 10 years preceding the filing of the Commission’s suit under subsection (b)(2)(B) with respect to the violation that resulted in such unjust enrichment.
“(3) Calculation of limitations periods—For purposes of calculating any limitations period with respect to a claim for relief under paragraph (1) or a disgorgement order under paragraph (2), any time in which a person, partnership, or corporation against which such relief or order is sought is outside the United States shall not be counted for purposes of calculating such period.”
Conforming and technical amendments— Section 16(a)(2) of the Federal Trade Commission Act (15 U.S.C. 56(a)(2)) is amended—
in subparagraph (A), by striking “(relating to injunctive relief)”;
in subparagraph (B), by striking “(relating to consumer redress)”; and
in subparagraph (D), by striking “subpena” and inserting “subpoena”.
Applicability— The amendments made by this section shall apply with respect to any action or proceeding that is commenced on or after the date of enactment of this Act.