[Senate Report 112-248]
[From the U.S. Government Publishing Office]
Calendar No. 479
112th Congress } { Report
2d Session } SENATE { 112-248
_______________________________________________________________________
A BILL TO EXTEND THE UNDERTAKING SPAM, SPYWARE, AND FRAUD
ENFORCEMENT WITH ENFORCERS BEYOND BORDERS ACT OF 2006,
AND FOR OTHER PURPOSES
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3410
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
December 5, 2012.--Ordered to be printed
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U.S. GOVERNMENT PRINTING OFFICE
29-010 PDF WASHINGTON : 2012
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred twelfth congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California JIM DeMINT, South Carolina
BILL NELSON, Florida JOHN THUNE, South Dakota
MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey JOHNNY ISAKSON, Georgia
MARK PRYOR, Arkansas ROY BLUNT, Missouri
CLAIRE McCASKILL, Missouri JOHN BOOZMAN, Arkansas
AMY KLOBUCHAR, Minnesota PATRICK J. TOOMEY, Pennsylvania
TOM UDALL, New Mexico MARCO RUBIO, Florida
MARK WARNER, Virginia KELLY AYOTTE, New Hampshire
MARK BEGICH, Alaska DEAN HELLER, Nevada
Ellen Doneski, Staff Director
James Reid, Deputy Staff Director
John Williams, General Counsel
Richard Russell, Republican Staff Director
David Quinalty, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel
Calendar No. 479
112th Congress } { Report
2d Session } SENATE { 112-248
=======================================================================
A BILL TO EXTEND THE UNDERTAKING SPAM, SPYWARE, AND FRAUD ENFORCEMENT
WITH ENFORCERS BEYOND BORDERS ACT OF 2006, AND FOR OTHER PURPOSES
_______
December 5, 2012.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 3410]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3410) to extend the Undertaking
Spam, Spyware, And Fraud Enforcement With Enforcers beyond
Borders Act of 2006, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
Purpose of the Bill
The purpose of S. 3410, a bill to extend the Undertaking
Spam, Spyware, And Fraud Enforcement With Enforcers beyond
Borders Act of 2006 (known as the ``U.S. SAFE WEB Act of 2006''
or ``SAFE WEB''), is to extend the authority and provisions of
the U.S. SAFE WEB Act of 2006 for seven additional years.
Background and Needs
In December 2006, Congress passed the U.S. SAFE WEB Act of
2006, which provides the Federal Trade Commission (FTC) with
enforcement tools that allow the Commission to pursue fraud
perpetrated by actors outside of the United States. In so
doing, SAFE WEB enhances the FTC's authority to deal with
cross-border fraud in four key ways:
Information Sharing.--SAFE WEB authorizes
the FTC to reciprocally exchange confidential
information with foreign law enforcement to aid foreign
and domestic investigations.
Investigative Assistance.--SAFE WEB permits
the FTC to provide investigative assistance to and
conduct discovery for foreign law enforcement in
appropriate cases which in turn, allows the FTC to
receive similar foreign investigative assistance.
Cross-border Jurisdiction Authority.--The
law provides the FTC with litigation authority to
redress harm in the United States caused by foreign
actors, as well as harm caused by U.S. actors abroad.
This provision allows the FTC to avoid challenges to
its cross-border jurisdiction and helps encourage the
availability of all remedies for U.S. consumer victims
in foreign courts.
Enforcement Relationships.--The law
authorizes the FTC to retain employees from foreign
agencies on a temporary basis, which fosters the
establishment of trust and understanding between
agencies and facilitates more meaningful case
cooperation.
SAFE WEB has a seven-year sunset provision that is scheduled
to expire in December 2013. All five Commissioners on the FTC,
which enforces the law, support the extension of SAFE WEB.
Summary of Provisions
S. 3410 extends the sunset provision in SAFE WEB by another
seven years to September 2020. The bill does not change any
substantive provisions in the law.
Legislative History
On July 19, 2012, Senator Pryor introduced S. 3410, which was
referred to the Committee for consideration. The bill is co-
sponsored by Senator Ayotte. On July 31, 2012, in an open
Executive Session, the Committee considered S. 3410 and
favorably reported the bill by voice vote.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 3410--A bill to extend the Undertaking Spam, Spyware, And Fraud
Enforcement With Enforcers beyond Borders Act of 2006, and for
other purposes
CBO estimates that implementing S. 3410 would have no
significant effect on discretionary spending over the 2013-2017
period. Enacting S. 3410 could result in collections of
additional civil and criminal penalties, which would affect
both revenues and direct spending; therefore, pay-as-you-go
procedures apply. However, CBO estimates that those effects
also would be insignificant.
S. 3410 would reauthorize the Undertaking Spam, Spyware,
And Fraud Enforcement With Enforcers beyond Borders Act, which
will expire on December 22, 2013. The act provides
administrative tools to the Federal Trade Commission (FTC) that
augment its authority to enforce federal laws related to unfair
and deceptive trade practices, such as sharing information with
foreign agencies and investigating fraud that originates
outside of the United States. The bill also would extend an
authorization to appropriate $100,000 each year for the FTC to
collaborate with foreign governments and to participate in
multinational organizations related to law enforcement. Based
on information from the FTC, CBO expects that enacting S. 3410
could change the types of fraud cases the agency investigates
but would not change the agency's workload. Therefore, CBO
estimates that implementing S. 3410 would not have a
significant effect on discretionary costs over the 2013-2017
period.
Enacting S. 3410 could increase federal revenues and direct
spending as a result of additional criminal and civil penalties
assessed for violations of laws related to unfair and deceptive
trade practices. Collections of civil penalties are recorded in
the budget as revenues. Collections of criminal penalties are
recorded in the budget as revenues, deposited in the Crime
Victims Fund, and later spent. CBO estimates that the net
effects of those transactions would be insignificant for each
year because of the relatively small number of cases likely to
be involved.
S. 3410 would impose intergovernmental mandates, as defined
in the Unfunded Mandates Reform Act (UMRA), by extending
preemptions of state and local laws that prohibit individuals
from disclosing information to the FTC and that require
individuals to notify third parties if they disclose
information to the FTC. Under current law, the preemptions
would expire at the end of 2013; the bill would extend them
until September 30, 2020. While the preemptions would limit the
application of state and local law, CBO estimates that they
would impose no duty on state, local, or tribal governments
that would result in additional spending.
S. 3410 also would extend an existing mandate that exempts
from liability private entities that voluntarily provide
certain information about third parties to the FTC. The
extension of such protections constitutes a mandate on those
third-party entities because it limits their ability to file a
claim for the disclosure or failure to provide notice of
disclosure. The cost of the mandate would be the forgone net
value of settlements and damages that would have been awarded.
Based on information from the FTC, few such lawsuits would
probably be filed. Therefore, CBO expects that the cost of the
mandate would fall below the annual threshold for private-
sector mandates established in UMRA ($146 million, adjusted
annually for inflation).
On August 16, 2012, CBO transmitted a cost estimate for
H.R. 6131, a bill to extend the Undertaking Spam, Spyware, And
Fraud Enforcement With Enforcers beyond Borders Act of 2006, as
ordered reported by the House Committee on Energy and Commerce
on July 31, 2012. The language extending the act is identical
in both the House and Senate bills, and the CBO estimates of
the cost for each bill are the same.
The CBO staff contacts for this estimate are Susan Willie
(for federal costs), Elizabeth Cove Delisle (for the impact on
state and local governments), and Marin Randall (for the impact
on the private sector). The estimate was approved by Theresa
Gullo, Deputy Assistant Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
Because S. 3410 does not create any new programs and only
extends existing law, the legislation will have no impact on
the number or types of individuals or businesses regulated.
ECONOMIC IMPACT
S. 3410 will have no further impact on the Nation's economy.
PRIVACY
S. 3410 will not have any adverse impact on the personal
privacy of affected individuals.
PAPERWORK
S. 3410 will not increase paperwork requirements for private
individuals or businesses.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Extension of the U.S. SAFE WEB Act of 2006
Section 1 establishes the new sunset date for SAFE WEB as
September 30, 2020.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
UNDERTAKING SPAM, SPYWARE, AND FRAUD ENFORCEMENT WITH ENFORCERS BEYOND
BORDERS ACT OF 2006
SEC. 13. SUNSET.
[15 U.S.C. 44 note]
[This Act, and the amendments made by this Act, shall cease
to have effect on the date that is 7 years after the date of
enactment of this Act.]
Effective September 30, 2020, this Act, and the amendments
made by this Act, are repealed, and any provision of law
amended by this Act shall be amended to read as if this Act had
not been enacted into law.