Bill Overview
Title: FTC Collaboration Act of 2021
Description: This act requires the Federal Trade Commission (FTC) to study its efforts to work with state attorneys general to address fraud and scams, including procedures, such as accountability mechanisms, that would facilitate such collaboration. In the process, the FTC must consult with relevant organizations and provide an opportunity for public comment. The FTC must submit legislative recommendations based on the results of the study.
Sponsors: Rep. O'Halleran, Tom [D-AZ-1]
Target Audience
Population: Consumers worldwide at risk of fraud and scams
Estimated Size: 300000000
- The FTC's study on collaboration with state attorneys general is primarily focused on combating fraud and scams, which can impact any consumer in the United States and potentially globally.
- Fraud and scams are a global issue affecting a wide range of individuals across different demographics, suggesting a broad target population.
- The bill does not propose direct changes to consumer protections but rather aims at understanding and enhancing cooperation to better enforce existing laws.
- If effective, enhanced collaboration could benefit all individuals by reducing the prevalence of fraud and scams.
Reasoning
- The FTC's Collaboration Act is expected to have an indirect impact on individual wellbeing, primarily through improved protections against fraud and scams, which can cause financial and emotional distress.
- The policy targets a broad demographic as fraud and scams can affect anyone who participates in the economy. It includes those who are especially vulnerable, such as the elderly or those less familiar with digital technologies.
- Given the limited budget of $5,000,000 annually, the policy's immediate direct impacts might be low, focusing on research and reporting rather than direct consumer intervention.
- I included a diverse array of interviewees typical of different regions, ages, and professional backgrounds to reflect a cross-section of the US population affected by fraud and scams.
Simulated Interviews
Retired (Florida)
Age: 67 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I worry about online scams, especially with the rise of online shopping.
- If the policy can help reduce fraud, it would make me feel safer shopping online.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Software Engineer (California)
Age: 35 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- Scams in digital finance are a huge concern for me. I hope this policy would make regulations better.
- Coordination between states could catch more scammers, benefiting tech-savvy individuals like me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Graduate Student (New York)
Age: 24 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- Knowing there are efforts to tackle scams makes me a bit more comfortable running my online business.
- A more coordinated enforcement can lead to a safer online marketplace.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Small Business Owner (Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Fraud has hurt my business before. More collaboration could help prevent this.
- The policy sounds like a step forward, but I'm skeptical about its reach and effectiveness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Teacher (Ohio)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Policies like this can help make people like me more confident in the system.
- It can foster trust, knowing that there is a sincere effort against financial crimes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Freelance Artist (Illinois)
Age: 30 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I often feel vulnerable to scams due to the nature of my work.
- Improved policies would give me peace of mind and make me more willing to engage in online sales.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 4 |
College Student (Washington)
Age: 19 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- Being a student with little financial literacy, the thought of scams is frightening.
- It's good to hear there's focus on protection, which ideally should extend to educational efforts.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
Nurse (Georgia)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 9/20
Statement of Opinion:
- I've seen the detrimental effects of fraud on my patients' lives in healthcare.
- Enhanced collaboration could safeguard healthcare funds and patient wellbeing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 3 |
Unemployed (New Mexico)
Age: 50 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Scams are a worry, especially being unemployed where every penny counts.
- While I believe in its potential, the policy must be broad to help those not tech-savvy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Stay-at-home Parent (Maine)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- Managing finances and protecting my children's identity is always a concern.
- I'm optimistic that better policies will protect families like mine from fraud.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The bill focuses on enhancing collaborative efforts and understanding the effectiveness of current anti-fraud initiatives.
- No direct consumer protection measures are proposed, minimizing immediate direct costs.
- The FTC's consultation requirements may incur additional administrative workloads that influence staffing requirements.
- The bill's scope is limited to studying and recommending action rather than immediate implementation of protective measures.