15 U.S.C. § 7706 — Enforcement generally

(a) Violation is unfair or deceptive act or practice — Except where subsection (b) says otherwise, the Federal Trade Commission enforces this chapter as if breaking it were an "unfair or deceptive act or practice" under section 18(a)(1)(B) of the Federal Trade Commission Act. (b) Enforcement by certain other agencies — Compliance with this chapter is instead enforced by the regulator that already oversees a company, under that regulator's usual law: (1) Under the Federal Deposit Insurance Act — (A) national banks and Federal branches and agencies of foreign banks, by the Office of the Comptroller of the Currency; (B) other member banks of the Federal Reserve System, most foreign bank branches and agencies, foreign-bank-owned commercial lending companies, certain organizations set up under the Federal Reserve Act, and bank holding companies, by the Federal Reserve Board; (C) banks insured by the FDIC that are not Federal Reserve members, and insured state branches of foreign banks, by the FDIC's Board of Directors; and (D) FDIC-insured savings associations, by the Director of the Office of Thrift Supervision. (2) Federally insured credit unions, under the Federal Credit Union Act, by the Board of the National Credit Union Administration. (3) Brokers or dealers, under the Securities Exchange Act of 1934, by the Securities and Exchange Commission. (4) Investment companies, under the Investment Company Act of 1940, by the SEC. (5) Registered investment advisers, under the Investment Advisers Act of 1940, by the SEC. (6) People engaged in providing insurance, under state insurance law, by that state's insurance regulator — unless a state chooses not to exercise this power, in which case the Commission enforces it under subsection (a) instead, subject to section 104 of the Gramm-Leach-Bliley Act. (7) Air carriers and foreign air carriers, under part A of subtitle VII of title 49, by the Secretary of Transportation. (8) Activities covered by the Packers and Stockyards Act, 1921 (except as that Act's section 406 provides), by the Secretary of Agriculture. (9) Federal land banks, Federal land bank associations, Federal intermediate credit banks, and production credit associations, under the Farm Credit Act of 1971, by the Farm Credit Administration. (10) People subject to the Communications Act of 1934, by the Federal Communications Commission. (c) Exercise of certain powers — When one of the agencies listed in (b) uses its powers under the law named there, a violation of this chapter counts as a violation of a Federal Trade Commission trade regulation rule. Besides that, each such agency may also use any other authority the law already gives it to enforce this chapter's requirements. (d) Actions by the Commission — The Commission can stop anyone from violating this chapter using the same tools, methods, and authority as if the Federal Trade Commission Act's rules were written directly into this chapter. Anyone who violates this law faces the same penalties, and gets the same rights and protections, as under the Federal Trade Commission Act. (e) Cease-and-desist orders and injunctions without proof of intent — In a case under subsection (a), (b), (c), or (d) that seeks a cease-and-desist order or an injunction for breaking certain specific rules — section 7704(a)(1)(C), section 7704(a)(2), clause (ii), (iii), or (iv) of section 7704(a)(4)(A), section 7704(b)(1)(A), or section 7704(b)(3) — neither the Commission nor the FCC has to prove the violator's state of mind. (f) Enforcement by states — (1) Civil action: If a state's attorney general or another state official or agency has reason to believe that residents have been or are threatened or harmed by someone violating section 7704(a)(1) or (2), section 7704(d), or a pattern or practice violating section 7704(a)(3), (4), or (5), that official may sue on residents' behalf, as parens patriae, in an appropriate federal district court, to (A) stop further violations of section 7704, or (B) get damages equal to the greater of (i) residents' actual monetary loss, or (ii) an amount set under paragraph (3). (2) Injunctions without proof of intent: In a suit under paragraph (1)(A) for an injunction, the state does not have to prove the violator's state of mind for the same specific rules named in subsection (e). (3) Statutory damages: (A) The amount is calculated by multiplying the number of violations — each separately addressed illegal message counted as one — by up to $250. (B) Except for violations of section 7704(a)(1), the total this way cannot exceed $2,000,000. (C) The court may triple the award if it finds the violation was willful and knowing, or if it involved one of the more serious violations listed in section 7704(b). (D) In setting damages, the court may consider whether the defendant had put in place, with due care, reasonable practices to prevent violations, or whether the violation happened despite reasonable compliance efforts. (4) Attorney fees: In a successful suit under paragraph (1), the court may, at its discretion, award the state its costs and reasonable attorney fees. (5) Rights of federal regulators: The state must give the FTC or the relevant federal regulator written notice before suing, with a copy of the complaint (or immediately after filing, if advance notice isn't feasible). That federal regulator may then intervene in the case, be heard on everything in it, move it to the right federal district court, or file appeals. (6) Construction: Nothing here stops a state attorney general from using the powers state law already gives them to investigate, administer oaths, or compel witnesses and evidence. (7) Venue and service: (A) A suit under paragraph (1) may be filed in any federal district court where venue is proper under section 1391 of title 28. (B) The defendant may be served in any district where they live or do business. (8) Limit while a federal case is pending: If the Commission, or another appropriate federal agency, has already sued or brought an administrative case for the same violation named in its complaint, no state may sue the same defendant for that same violation while the federal case is still pending. (9) Proof of intent for state damages suits: Except for the same specific rules named in subsection (e), a state suing for money damages must prove the defendant acted with actual knowledge, or knowledge fairly implied from the circumstances, that what they did broke the law. (g) Action by internet access providers — (1) An internet access provider harmed by a violation of section 7704(a)(1), (b), or (d), or by a pattern or practice violating section 7704(a)(2), (3), (4), or (5), may sue in a federal district court with jurisdiction over the defendant, to (A) stop further violations, or (B) recover the greater of (i) its actual monetary loss, or (ii) an amount set under paragraph (3). (2) Special meaning of "procure": In such a suit, this chapter is applied as if the definition of "procure" in section 7702(12) also required that the person acted with actual knowledge, or by consciously avoiding knowledge, that they were engaged in a pattern or practice violating this chapter. (3) Statutory damages: (A) The amount is calculated by multiplying the number of violations — each separately addressed illegal message sent or attempted through the provider's facilities, or obtained from the provider in violation of section 7704(b)(1)(A)(i), counted as one — by (i) up to $100 for a violation of section 7704(a)(1), or (ii) up to $25 for any other violation of section 7704. (B) Except for section 7704(a)(1) violations, the total cannot exceed $1,000,000. (C) The court may triple the award for willful, knowing violations or the more serious violations under section 7704(b). (D) The court may lower the award using the same reasonable-compliance factors described in subsection (f). (4) Attorney fees: In a suit under paragraph (1), the court may, at its discretion, require security for the costs of the action, and may assess reasonable costs, including attorney fees, against either party.