The Consumer Protection and Due Process Act
The bill establishes a limitation period of three years for claims related to violations of the FTC Act, ensuring timely action can be taken against businesses engaging in unfair practices. Additionally, it specifies the burden of proof required for courts to grant equitable relief, reinforcing that only consumers who can demonstrate material reliance and resultant harm would benefit from these measures. The amendments are geared towards strengthening consumer protection while ensuring due process is upheld within enforcement actions.
SB1076, titled 'The Consumer Protection and Due Process Act', aims to amend section 13 of the Federal Trade Commission Act to enhance the powers of the FTC in terms of equitable relief. This includes provisions for restitution, contract rescission, reformation, refunds, and the return of property related to unfair or deceptive acts or practices. One of the notable changes allows the FTC to seek disgorgement of unjust enrichment resulting from such violations, broadening the agency's enforcement capabilities.
Critics of SB1076 may argue about the implications of expanding the FTC's authority to impose equitable relief, with concerns that it could lead to potential overreach in regulatory enforcement. Proponents, on the other hand, advocate for the need to provide greater protection for consumers against deceptive practices and the challenges faced in seeking justice under the current framework. The debate is likely to center around finding the right balance between consumer protection and business freedoms, a theme common in discussions about regulatory reform.