Consumer Protection and Recovery Act

The Consumer Protection and Recovery Act expands the Federal Trade Commission's legal authority to seek financial remedies against companies that violate consumer protection laws. Specifically, it allows the FTC to request courts to order restitution, contract rescission, refunds, and the return of property to victims of fraud or unfair practices. The bill also authorizes the agency to seek disgorgement, which requires violators to pay back any unjust profits gained from their illegal activities, while ensuring these payments offset any refunds already issued. These new powers apply to violations that occurred within the last ten years, with time spent outside the United States excluded from that calculation. The changes take effect for any legal actions pending or filed after the bill becomes law.