Electronic Retailer Blog

I admit it…I get my news the old fashioned way—reading the newspaper. Today was no different than any other, except I was struck by a very small blurb in the business section of The Washington Post. The chairman of the Senate Commerce Committee, Daniel K. Inouye (D-HI), has introduced a bill called, the “FTC Reauthorization Act of 2008,” that would double the FTC’s current budget over the next seven years! That’s right, if the bill passes, the FTC’s budget will grow from its current $244 million to $468 million by 2015.

If the bill is successful, you can expect the following changes:

1. Expands the Commission’s authority to litigate civil actions involving the FTC act. (The FTC act establishes the FTC’s authority—what they can pursue). Currently, the majority of these cases are brought by the Department of Justice who rely on the FTC for technical expertise;

2. Expands the Commission’s authority to recover civil penalties for violations, where it is currently limited to recovering civil penalties for violations of a rule or final cease and desist order with respect to an unfair or deceptive act or practice;

3. Allows the Commission to hold entities accountable that aid or abet another in violating any law enforced by the FTC;

4. Allows State attorneys general (AGs) to bring cases and seek civil penalties; and

5. Allows the Commission to streamline the rulemaking process by a majority vote instead of the lengthy procedure set forth by the Magnuson-Moss Act.

Fortunately, as good corporate citizens these developments should not alarm you. However, now more than ever you need to understand the rules of the road.

Barbara Tulipane is ERA’s president and CEO

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