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Code · BILL · 116th Congress · S. 3456 (Introduced in Senate) — To protect the privacy of consumers. · Sec. 9

Sec. 9. Enforcement

1,016 words·~5 min read·/bill/116/s/3456/is/section-9

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A violation of this Act or a regulation promulgated under this Act shall be treated as an unfair or deceptive act or practice in violation of a rule promulgated under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ). Except as provided in subparagraph (C), the Commission shall enforce this Act and any regulation promulgated under this Act 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 ( 15 U.S.C. 41 et seq.) were incorporated into and made a part of this Act.
Any covered entity or service provider who violates this Act or a regulation promulgated under this Act shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act ( 15 U.S.C. 41 et seq.). Notwithstanding section 4, 5(a)(2), or 6 of the Federal Trade Commission Act ( 15 U.S.C. 44 , 45(a)(2), 46) or any jurisdictional limitation of the Commission, the Commission shall also enforce this Act, with respect to common carriers and nonprofit organizations described in section 2(4) of this Act, in the same manner provided in subparagraphs
(A)and
(B)of this paragraph. Nothing in this Act shall be construed to limit the Commission’s authority under the Federal Trade Commission Act or any other provision of law. Notwithstanding section 5(m) of the Federal Trade Commission Act ( 15 U.S.C. 45(m) ), in an action brought by the Commission to enforce this Act and the regulations promulgated under this Act, in addition to any injunctive relief obtained by the Commission in the action, a covered entity or service provider shall be liable for a civil penalty in an amount described in subparagraph
(B)if the covered entity or service provider, with actual knowledge, violates this Act or a regulation promulgated under this Act. Except as provided in clause (ii), the amount of a civil penalty described in subparagraph
(A)shall be the number of individuals affected by a violation described in that subparagraph multiplied by an amount not to exceed $42,530. In determining the amount of a civil penalty to seek under subparagraph
(A)for a violation described in that subparagraph, the Commission shall consider, with respect to the covered entity or service provider that committed the violation— the degree of harm associated with the privacy and security of personal data of individuals created by the violation; the intent of the covered entity or service provider in committing the violation; the size, complexity, and resources of the covered entity or service provider, including if it is a small business; reasonable expectations relating to privacy and security of personal data of individuals; the degree to which the covered entity or service provider put in place appropriate controls or complied with the requirements of section 7, if applicable; whether the covered entity or service provider self-reported the violation to the Commission; and what, if any, efforts the covered entity or service provider has taken to mitigate any risk to the privacy and security of personal data of individuals created by the processing. In any case in which an attorney general of a State has reason to believe that an interest of the residents of that State has been or is threatened or adversely affected by the engagement of any covered entity or service provider in a practice that violates this Act or a regulation promulgated under this Act, 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— enjoin that practice; enforce compliance with this Act or the regulation; or in the case of a violation described in subsection (a)(3)(A), impose a civil penalty in an amount described in subsection (a)(3)(B). 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)not later than 10 days before initiating the civil action. 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. 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. The Commission may— intervene in any civil action brought by the attorney general of a State under paragraph (1); and upon intervening under clause (i)— be heard on all matters arising in the civil action; and file petitions for appeal of a decision in the civil action. Subject to subparagraph (B), if a civil action under paragraph
(1)is pending in a district court of the United States and one or more civil actions are commenced pursuant to paragraph
(1)in a different district court of the United States that involve one or more common questions of fact, all such civil actions shall be transferred for the purposes of consolidated pretrial proceedings and trial to the United States District Court for the District of Columbia. A civil action shall not be transferred pursuant to subparagraph
(A)if pretrial proceedings in such civil action have concluded before the subsequent action is commenced pursuant to paragraph (1). If the Commission institutes an action under subsection
(a)with respect to a violation of this Act or a regulation promulgated under this Act, a State may not, during the pendency of that action, institute an action under subsection
(b)against any defendant named in the complaint in the action instituted by the Commission based on the same set of facts giving rise to the violation with respect to which the Commission instituted the action. There shall be no private right of action under this Act and nothing in this Act may be construed to provide a basis for a private right of action.
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