Schakowsky, Cárdenas Reintroduce Legislation to Help Return Money to Defrauded Consumers

WASHINGTON – Today, U.S. Representative Jan Schakowsky (IL-09), Ranking Member of the House Committee on Energy and Commerce Subcommittee on Innovation, Data, and Commerce, and U.S. Representative Tony Cárdenas (CA-29) reintroduced the Consumer Protection and Recovery Act, to restore the Federal Trade Commission’s (FTC) 13(b) consumer protection powers to return money to defrauded consumers.

“We owe it to our consumers to help those who have fallen victim to frauds, scams, and other illegal activities. For over 40 years, the Federal Trade Commission (FTC) relied on section 13(b) to give billions of dollars in relief to defrauded consumers, but that longstanding authority was overturned in 2021 by the Supreme Court,” said Congresswoman Jan Schakowsky. “Every one of the FTC Commissioners has expressed support for section 13(b). The Consumer Protection and Recovery Act, which I am proud to reintroduce with Rep. Cárdenas, passed the House with bipartisan support last Congress and will reinstate section 13(b) and the FTC’s authority to repay consumers. This legislation will help stop bad actors in their tracks and put money back into the pockets of individuals.”

“Three years ago, Donald Trump’s radical Supreme Court took away the Federal Trade Commission’s authority to fight on behalf of everyday Americans – many seniors, veterans, and parents – who were defrauded by bad actors,” said Congressman Tony Cárdenas. “Once again, Congresswoman Schakowsky and I are reintroducing The Consumer Protection and Recovery Act in order to restore the FTC’s power to give hard working Americans the advocacy they rightfully deserve.”

The Consumer Protection and Recovery Act restores 13(b) as the FTC’s primary consumer protection tool through amendments and clarifications of existing law.

• The legislation explicitly provides the FTC the ability to obtain both injunctive and monetary relief for all violations of the laws it enforces, including monetary redress for consumers in court for all violations of the laws it enforces.
• The bill also makes explicit that the FTC may pursue many kinds of equitable relief, including restitution for losses, contract reformation and rescission, monetary refunds and the refund of property, as well as forcing bad actors to return their ill-gotten gains. 

Last Congress, the Consumer Protection and Recovery Act passed the House of Representatives with bipartisan support following the Supreme Court’s decision to eliminate the FTC's authority to recover money for harmed consumers.

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