15 U.S.C. § 57b–2b — Protection for voluntary provision of information

submitted 112 years ago by Pub. L. 109-455 to r/title-15-COMMERCE-AND-TRADE · 517 words · no verdicts yet

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Banks, payment companies, internet providers, and similar businesses cannot be sued for voluntarily giving the FTC information about possible fraud or recoverable assets. This protection does not cover the wrongdoing itself or duties owed to other federal agencies. Certain financial institutions get the same protection for reporting under a separate banking law.

(a) General protection. (1) A business described in subsection (d)(2) or (d)(3) that voluntarily gives the Commission material it reasonably believes relates to a possible unfair or deceptive act or practice, or to assets the Commission could recover (including assets abroad), cannot be sued or held legally liable — under any federal, constitutional, state, or local law — for giving that material, or for not giving notice that it did or planned to. (2) This does not excuse the business from liability for the underlying conduct being reported, or from any duty it owes a federal agency for providing the material or for failing to notify that agency first. (b) Certain financial institutions. A business described in subsection (d)(1) is protected under a separate banking law (31 U.S.C. § 5318(g)(3)) for voluntarily telling the Commission about a possible violation — including reports about assets (even ones abroad) tied to fraud or deception, people involved in it, or assets the Commission could recover, and reports about suspicious chargeback rates tied to possible fraud or deception. (c) Consumer complaints. Any business described in subsection (d) that voluntarily forwards consumer complaints it received (or information from them) to the Commission cannot be sued for doing so, or for not giving notice that it did or planned to. This does not excuse liability for the underlying conduct. (d) Who this covers, foreign or domestic. (1) A "financial institution" as defined in 31 U.S.C. § 5312. (2) If not already covered by (1): banks and thrifts, commercial banks and trust companies, investment companies, credit card issuers and credit card system operators, and issuers, redeemers, or cashiers of travelers' checks, money orders, or similar instruments. (3) Courier services, commercial mail-receiving agencies, industry membership organizations, payment system providers, consumer reporting agencies, domain name registrars and registries, and providers of alternative dispute resolution services. (4) Internet service providers and telephone service providers.

the actual law source: uscode.house.gov ↗public domain

(a) In general

(1) No liability for providing certain material

An entity described in paragraphs (2) or (3) of subsection (d) that voluntarily provides material to the Commission that such entity reasonably believes is relevant to—

(A)

a possible unfair or deceptive act or practice, as defined in section 45(a) of this title; or

(B)

assets subject to recovery by the Commission, including assets located in foreign jurisdictions;

shall not be liable to any person under any law or regulation of the United States, or under the constitution, or any law or regulation, of any State, political subdivision of a State, territory of the United States, or the District of Columbia, for such provision of material or for any failure to provide notice of such provision of material or of intention to so provide material.

(2) Limitations

Nothing in this subsection shall be construed to exempt any such entity from liability—

(A)

for the underlying conduct reported; or

(B)

to any Federal agency for providing such material or for any failure to comply with any obligation the entity may have to notify a Federal agency prior to providing such material to the Commission.

(b) Certain financial institutions

An entity described in paragraph (1) of subsection (d) shall, in accordance with section 5318(g)(3) of title 31, be exempt from liability for making a voluntary disclosure to the Commission of any possible violation of law or regulation, including—

(1)

a disclosure regarding assets, including assets located in foreign jurisdictions—

(A)

related to possibly fraudulent or deceptive commercial practices;

(B)

related to persons involved in such practices; or

(C)

otherwise subject to recovery by the Commission; or

(2)

a disclosure regarding suspicious chargeback rates related to possibly fraudulent or deceptive commercial practices.

Any entity described in subsection (d) that voluntarily provides consumer complaints sent to it, or information contained therein, to the Commission shall not be liable to any person under any law or regulation of the United States, or under the constitution, or any law or regulation, of any State, political subdivision of a State, territory of the United States, or the District of Columbia, for such provision of material or for any failure to provide notice of such provision of material or of intention to so provide material. This subsection shall not provide any exemption from liability for the underlying conduct.

(d) Application

This section applies to the following entities, whether foreign or domestic:

(1)

A financial institution as defined in section 5312 of title 31.

(2)

To the extent not included in paragraph (1), a bank or thrift institution, a commercial bank or trust company, an investment company, a credit card issuer, an operator of a credit card system, and an issuer, redeemer, or cashier of travelers’ checks, money orders, or similar instruments.

(3)

A courier service, a commercial mail receiving agency, an industry membership organization, a payment system provider, a consumer reporting agency, a domain name registrar or registry acting as such, and a provider of alternative dispute resolution services.

(4)

An Internet service provider or provider of telephone services.

Source credit: (Sept. 26, 1914, ch. 311, § 21B, as added Pub. L. 109–455, § 8, Dec. 22, 2006, 120 Stat. 3380.)

history & why it existsrecord from the source credit

1914Enacted · Pub. L. 109-455 · 120 Stat. 3380

A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-455 on 1914-09-26.

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