Bill Overview
Title: Consumer Protection Remedies Act of 2022
Description: This bill authorizes the Federal Trade Commission to seek, and courts to order, certain types of equitable relief such as restitution, contract rescission, and disgorgement in suits to enforce the laws within the commission's jurisdiction.
Sponsors: Sen. Cantwell, Maria [D-WA]
Target Audience
Population: Global consumer population
Estimated Size: 332000000
- The bill affects the FTC's ability to enforce consumer protection laws, thereby impacting all consumers in the country.
- Equitable relief measures, such as restitution and disgorgement, can directly influence any consumer who might be involved in a case against a business, including those who have sustained financial losses.
- The legislation affects a broad range of consumer-related transactions across diverse sectors, including retail, online commerce, and services.
- Consumers who experience deceptive or unfair business practices are directly impacted since the act gives more power to correct or compensate them.
Reasoning
- This policy specifically enhances consumer protection, particularly for those who may have been victims of fraud or deceptive practices. Thus, it will predominantly impact individuals who have experienced such issues.
- The FTC's ability to pursue restitution and other remedies may only apply in limited cases due to the budget cap, but could still affect a significant number of people given widespread consumer transactions.
- Individuals who have faced significant financial losses due to unfair practices would notice the biggest improvement in wellbeing, while others may not notice a change at all.
- Some people may not be directly affected by the policy if they have not faced unfair or deceptive commercial practices.
- The target population for this policy includes all American consumers, but the impact will vary based on individual interactions with businesses and their experience of fair or deceptive practices.
Simulated Interviews
Graphic Designer (Chicago, IL)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Having been scammed once, I am wary of online shopping, even from trusted sites.
- Knowing the FTC can now help get my money back makes me more comfortable in engaging with online shopping again.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Small Business Owner (Atlanta, GA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- As a small business owner, strict consumer protection is important for building trust.
- I hope that the law will focus on real issues and not hamper genuine businesses with unnecessary claims.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Retired (Phoenix, AZ)
Age: 63 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Having a fixed income, losing money to a scam has made it difficult to manage my budget.
- This new bill seems like a lifeline for people like me, giving hope to recover some losses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 5 | 3 |
Software Engineer (Seattle, WA)
Age: 36 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I haven't encountered many consumer issues myself, but it's reassuring to know the policy is there.
- I feel it could act as a safety net for more vulnerable consumers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Teacher (Austin, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I think this policy will support people in my community who often fall victim to predatory practices.
- It’s positive to see more help being directed to consumers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Student (Miami, FL)
Age: 24 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 16/20
Statement of Opinion:
- This policy makes me feel safer when making international online purchases.
- It seems like a good step for holding businesses accountable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Financial Analyst (New York, NY)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- The law is a good backup for financial planning as it mitigates unforeseen consumer risks.
- However, the policy must be careful not to discourage innovation and business creativity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Volunteer (Columbus, OH)
Age: 72 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Such a policy will be a great help to the elderly, preventing scams or recovering losses.
- It provides me with some peace of mind while assisting others in these situations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 5 | 3 |
Entrepreneur (San Jose, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- I see both positive and negative sides; self-regulation is ideal but external oversight is reassuring.
- It’s crucial that this policy does not heavily impede startups.
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 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Lawyer (Los Angeles, CA)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is a game-changer for clients who've been affected by unfair practices.
- It aligns well with the advocacy work I am involved with.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $70000000 (Low: $60000000, High: $80000000)
Year 2: $72000000 (Low: $62000000, High: $82000000)
Year 3: $73500000 (Low: $63000000, High: $85000000)
Year 5: $76000000 (Low: $65000000, High: $88000000)
Year 10: $80500000 (Low: $68000000, High: $92000000)
Year 100: $100000000 (Low: $80000000, High: $120000000)
Key Considerations
- The economic benefits of consumer protection can be diffuse, as trust increases market participation, potentially benefiting the broader economy.
- Costs may accrue more heavily at the outset as the FTC ramps up its enforcement capabilities.
- Distributional effects need to be carefully considered to ensure low and middle-income consumers benefit from protections.