Definitions
Commission
The term “Commission” means the Federal Trade Commission.
Covered communication
The term “covered communication” means a written, oral, or pictorial review, performance assessment of, or other similar analysis of, including by electronic means, the goods, services, or conduct of a person by an individual who is party to a form contract with respect to which such person is also a party.
Form contract
In general
Exception
The term “form contract” does not include an employer-employee or independent contractor contract.
Pictorial
The term “pictorial” includes pictures, photographs, video, illustrations, and symbols.
Invalidity of contracts that impede consumer reviews
In general
Rule of construction
Exceptions
Prohibition
It shall be unlawful for a person to offer a form contract containing a provision described as void in subsection (b).
Enforcement by Commission
Unfair or deceptive acts or practices
15 U.S.C. 45(a)(2)15 U.S.C. 57a(a)(1)(B)A violation of subsection (c) by a person with respect to which the Commission is empowered under section 5(a)(2) of the Federal Trade Commission Act () shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act ().
Powers of Commission
In general
15 U.S.C. 41The Commission shall enforce this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( et seq.) were incorporated into and made a part of this Act.
Privileges and immunities
15 U.S.C. 41Any person who violates this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act ( et seq.).
Enforcement by States
Authorization
Subject to paragraph (2), in any case in which the attorney general of a State has reason to believe that an interest of the residents of the State has been or is threatened or adversely affected by the engagement of any person subject to subsection (c) in a practice that violates such subsection, the attorney general of the State may, as parens patriae, bring a civil action on behalf of the residents of the State in an appropriate district court of the United States to obtain appropriate relief.
Rights of Federal Trade Commission
Notice to Federal Trade Commission
In general
Except as provided in clause (iii), the attorney general of a State shall notify the Commission in writing that the attorney general intends to bring a civil action under paragraph (1) before initiating the civil action against a person described in subsection (d)(1).
Contents
The notification required by clause (i) with respect to a civil action shall include a copy of the complaint to be filed to initiate the civil action.
Exception
If it is not feasible for the attorney general of a State to provide the notification required by clause (i) before initiating a civil action under paragraph (1), the attorney general shall notify the Commission immediately upon instituting the civil action.
Intervention by Federal Trade Commission
Investigatory powers
Nothing in this subsection may be construed to prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of the State to conduct investigations, to administer oaths or affirmations, or to compel the attendance of witnesses or the production of documentary or other evidence.
Preemptive action by Federal Trade Commission
If the Federal Trade Commission institutes a civil action or an administrative action with respect to a violation of subsection (c), the attorney general of a State may not, during the pendency of such action, bring a civil action under paragraph (1) against any defendant named in the complaint of the Commission for the violation with respect to which the Commission instituted such action.
Venue; service of process
Venue
Service of process
Actions by other State officials
In general
In addition to civil actions brought by attorneys general under paragraph (1), any other consumer protection officer of a State who is authorized by the State to do so may bring a civil action under paragraph (1), subject to the same requirements and limitations that apply under this subsection to civil actions brought by attorneys general.
Savings provision
Nothing in this subsection may be construed to prohibit an authorized official of a State from initiating or continuing any proceeding in a court of the State for a violation of any civil or criminal law of the State.
Education and outreach for businesses
Not later than 60 days after , the Commission shall commence conducting education and outreach that provides businesses with non-binding best practices for compliance with this Act.
Relation to State causes of action
Nothing in this section shall be construed to affect any cause of action brought by a person that exists or may exist under State law.
Savings provision
15 U.S.C. 41Nothing in this section shall be construed to limit, impair, or supersede the operation of the Federal Trade Commission Act [ et seq.] or any other provision of Federal law.
Effective dates
Pub. L. 114–258, § 2130 Stat. 1355(, , .)
Editorial Notes
References in Text
act Sept. 26, 1914, ch. 31138 Stat. 717section 58 of this titleThe Federal Trade Commission Act, referred to in subsecs. (d)(2) and (h), is , , which is classified generally to this subchapter. For complete classification of this Act to the Code, see and Tables.
Pub. L. 114–258130 Stat. 1355section 58 of this titlesection 58 of this titleThis Act, referred to in subsecs. (d)(2)(A) and (f), is , , , known as the Consumer Review Fairness Act of 2016, which enacted this section and provisions set out as a note under . For complete classification of this Act to the Code, see Short Title of 2016 Amendment note set out under and Tables.
Codification
Section was enacted as part of the Consumer Review Fairness Act of 2016, and not as part of the Federal Trade Commission Act which comprises this subchapter.