Sec. 13. Enforcement and applicability

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Except as otherwise provided, this Act and the regulations prescribed under this Act shall be enforced by the Commission under the Federal Trade Commission Act ( 15 U.S.C. 41 et seq.). Subject to subsection (b), a violation of this Act or a regulation prescribed under this 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 ( 15 U.S.C. 57a(a)(1)(B) ). Subject to subsection (b), and except as provided in subsection (d)(1), the Commission shall prevent any person from violating this Act or a regulation prescribed 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, and any person who violates this Act or such regulation shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act.

In an action brought by the Commission to enforce this Act and the regulations prescribed under this Act, each connected device that fails to meet a standard promulgated under this Act shall be treated as a separate violation. Notwithstanding section 5(m) of the Federal Trade Commission Act ( 15 U.S.C. 45(m) ), a civil penalty recovered for a violation of this Act or a regulation prescribed under this Act may be in excess of the amounts provided for in that section as the court finds appropriate to deter violations of this Act and regulations prescribed under this Act.

In an action brought by the Commission to enforce this Act and the regulations prescribed under this Act, the Commission may seek a civil penalty for any violation of this Act or regulation prescribed under this Act, including any violation that is the first violation of this Act or a regulation prescribed under this Act that a person against whom the action is brought has committed. Notwithstanding subsection (a), compliance with the requirements imposed under this Act shall be enforced as follows:

Under section 8 of the Federal Deposit Insurance Act ( 12 U.S.C. 1818 ) by the appropriate Federal banking agency, with respect to an insured depository institution (as such terms are defined in section 3 of such Act ( 12 U.S.C. 1813 )). Under the Federal Credit Union Act ( 12 U.S.C. 1751 et seq.) by the National Credit Union Administration Board, with respect to any Federal credit union. Under part A of subtitle VII of title 49, United States Code, by the Secretary of Transportation, with respect to any air carrier or foreign air carrier subject to such part.

Under the Packers and Stockyards Act, 1921 ( 7 U.S.C. 181 et seq.) (except as provided in section 406 of that Act ( 7 U.S.C. 226 ; 227)) by the Secretary of Agriculture, with respect to any activities subject to that Act. Under the Farm Credit Act of 1971 ( 12 U.S.C. 2001 et seq.) by the Farm Credit Administration, with respect to any Federal land bank, Federal land bank association, Federal intermediate credit bank, or production credit association. In any case in which the 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 person in a practice that violates this Act or a regulation prescribed under this Act, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in a district court of the United States of appropriate jurisdiction to— enjoin that practice; enforce compliance with this Act or such regulation; obtain damages, restitution, or other compensation on behalf of residents of the State; or obtain such other relief as the court may consider to be appropriate.

Before filing an action under subparagraph (A), the attorney general of the State involved shall provide to the Commission— written notice of that action; and a copy of the complaint for that action. Clause

(i)shall not apply with respect to the filing of an action by an attorney general of a State under this paragraph if the attorney general of the State determines that it is not feasible to provide the notice described in that clause before the filing of the action. In an action described in subclause (I), the attorney general of a State shall provide notice and a copy of the complaint to the Commission at the same time as the attorney general files the action. On receiving notice under paragraph (1)(B), the Commission shall have the right to intervene in the action that is the subject of the notice. If the Commission intervenes in an action under paragraph (1), it shall have the right— to be heard with respect to any matter that arises in that action; and to file a petition for appeal. For purposes of bringing any civil action under paragraph (1), nothing in this Act shall be construed to prevent an attorney general of a State from exercising the powers conferred on the attorney general by the laws of that State to— conduct investigations; administer oaths or affirmations; or compel the attendance of witnesses or the production of documentary and other evidence. In any case in which an action is instituted by or on behalf of the Commission for violation of this Act or a regulation prescribed under this Act, no State may, during the pendency of that action, institute an action under paragraph

(1)against any defendant named in the complaint in the action instituted by or on behalf of the Commission for that violation. Any action brought under paragraph

(1)may be brought in the district court of the United States that meets applicable requirements relating to venue under section 1391 of title 28, United States Code. In an action brought under paragraph (1), process may be served in any district in which the defendant— is an inhabitant; or may be found. Notwithstanding section 5(a)(2) of the Federal Trade Commission Act ( 15 U.S.C. 45(a)(2) ), compliance with the requirements imposed under this Act shall be enforced by the Commission with respect to any telecommunications carrier (as defined in section 3 of the Communications Act of 1934 ( 47 U.S.C. 153 )). To the extent that section 222, 338(i), or 631 of the Communications Act of 1934 ( 47 U.S.C. 222 ; 338(i); 551) is inconsistent with this Act, this Act controls. In this subsection— the term applicable section means section 5, 6, 7, 8, or 9 of this Act; the term covered operator means an operator subject to guidelines approved under paragraph (2); the term requesting entity means an entity that submits a safe harbor request to the Commission; and the term safe harbor request means a request to have self-regulatory guidelines described in paragraph (2)(A) approved under that paragraph. An operator may satisfy the requirements of regulations issued under an applicable section by following a set of self-regulatory guidelines, issued by representatives of the marketing or online industries, or by other persons, that, after notice and an opportunity for comment, are approved by the Commission upon making a determination that the guidelines meet the requirements of the regulations issued under that applicable section. Not later than 180 days after the date on which a safe harbor request is filed under subparagraph (A), the Commission shall act upon the request set forth in writing the conclusions of the Commission with regard to the request. A requesting entity may appeal the final action of the Commission under subparagraph (B), or a failure by the Commission to act in the period described in that paragraph, to a district court of the United States of appropriate jurisdiction, as provided for in section 706 of title 5, United States Code. In prescribing regulations under an applicable section, the Commission shall provide incentives for self-regulation by covered operators to implement the protections afforded children and minors, as applicable, under the regulatory requirements described in those sections. The incentives under subparagraph

(A)shall include provisions for ensuring that a covered operator will be deemed to be in compliance with the requirements of the regulations under an applicable section if that person complies with guidelines approved under paragraph (2). In prescribing regulations relating to safe harbor guidelines under an applicable section, the Commission shall— establish criteria for the approval of guidelines that will ensure that a covered operator provides substantially the same or greater protections for children and minors, as applicable, as those contained in the regulations issued under the applicable section; and require that any report or documentation required to be submitted to the Commission by a covered operator or requesting entity will be published on the internet website of the Commission, except to the extent that the report or documentation contains proprietary information, which the Commission may in its discretion redact. Not later than 2 years after the date of enactment of this Act, and once each 2 years thereafter, the Inspector General of the Commission shall submit to the Commission and each committee of the Senate and each committee of the House of Representatives that has jurisdiction over the Commission a report regarding the safe harbor provisions under this subparagraph, which shall include— an analysis of whether the safe harbor provisions are— operating fairly and effectively; and effectively protecting the interests of children and minors; and proposals for policy changes that would improve the effectiveness of the safe harbor provisions. Not later than 10 days after the date on which a report under subparagraph

(A)is submitted, the Commission shall publish the report on the internet website of the Commission. This section shall take effect on the date that is 90 days after the date of enactment of this Act.

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