[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4435 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4435
To limit and eliminate excessive, hidden, and unnecessary fees imposed
on incarcerated individuals and their families, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 23, 2024
Mr. Booker (for himself and Ms. Warren) introduced the following bill;
which was read twice and referred to the Committee on Commerce,
Science, and Transportation
_______________________________________________________________________
A BILL
To limit and eliminate excessive, hidden, and unnecessary fees imposed
on incarcerated individuals and their families, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Families Over Fees Act of 2024''.
SEC. 2. PROTECTING CONSUMERS AGAINST EXCESSIVE AND HIDDEN FEES.
(a) In General.--
(1) Hidden fees.--A covered entity shall clearly and
conspicuously display the total price (inclusive of any
mandatory fees) of any good or service provided by the covered
entity--
(A) in each advertisement for the good or service
to a consumer; or
(B) whenever presenting the price of such good or
service to a consumer.
(2) Excessive fees.--
(A) In general.--A covered entity may not advertise
or charge to a consumer any mandatory fees that are
excessive with respect to any good or service provided
by the covered entity.
(B) Considerations.--In determining whether a
mandatory fee advertised by or charged to a consumer by
a covered entity is excessive, the Commission shall
consider--
(i) whether the fee is reasonable and
proportional to the cost of the good or service
provided by the covered entity;
(ii) the reason for which the covered
entity charges such fee;
(iii) the cost of a similar good or service
provided to individuals who are not
incarcerated; and
(iv) the degree of available consumer
choice for the good or service, including
whether there are viable alternatives available
that provide the consumer with the opportunity
to avoid an excessive fee.
(3) Early termination.--A covered entity may not advertise
or charge to a consumer any mandatory fees that are excessive
for the early termination of a contract for any good or service
provided by the covered entity.
(4) Refunds.--A covered entity shall--
(A) clearly and conspicuously disclose any
guarantee or refund policy prior to the completion of a
transaction by a consumer; and
(B) in the event of a request by a consumer for a
refund, provide to the consumer a refund in the amount
of the total cost (including any mandatory fees) of the
good or service provided by the covered entity or any
good or service that is undelivered or defective.
(5) Rule of construction.--Nothing in this subsection shall
apply to any--
(A) tax, duty, or custom levied by any local,
State, Federal, or other governmental entity; or
(B) fee covering the cost of delivery of goods, the
amount of which is based upon the delivery method
selected by the consumer, so long as the covered entity
discloses the amount of the delivery fee prior to
accepting payment from the consumer.
(b) Enforcement.--
(1) Enforcement by the commission.--
(A) Unfair or deceptive acts or practices.--A
violation of this section or a regulation promulgated
thereunder shall be treated as a violation of a rule
defining an unfair or deceptive act or practice under
section 18(a)(1)(B) of the Federal Trade Commission Act
(15 U.S.C. 57a(a)(1)(B)).
(B) Powers of the commission.--
(i) In general.--The Commission shall
enforce this section 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
section.
(ii) Privileges and immunities.--Any person
who violates this section or a regulation
promulgated thereunder 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.).
(iii) Authority preserved.--Nothing in this
section shall be construed to limit the
authority of the Commission under any other
provision of law.
(iv) Rulemaking.--The Commission may
promulgate in accordance with section 553 of
title 5, United States Code, such rules as may
be necessary to carry out this section.
(C) Notice to states.--Whenever the Commission has
brought an action for a violation of this Act and has
reason to believe that the attorney general of a State,
Territory, or the District of Columbia would be
entitled to bring an action under this Act based
substantially on the same alleged violation, the
Commission shall promptly give written notification
thereof to such attorney general.
(2) Enforcement by the states.--
(A) In general.--If the attorney general of a State
has reason to believe that a covered entity has
violated or is violating this section or a regulation
promulgated thereunder that affects the residents of
that State, the State, as parens patriae, may bring a
civil action in any appropriate district court of the
United States, to--
(i) enjoin any further violation by the
covered entity;
(ii) enforce compliance with this section
or such regulation;
(iii) obtain other remedies permitted under
State law; and
(iv) obtain damages, restitution, or other
compensation on behalf of residents of the
State.
(B) Notice.--The attorney general of a State shall
provide prior written notice of any action under
subparagraph (A) to the Commission and provide the
Commission with a copy of the complaint in the action,
except in any case in which such prior notice is not
feasible, in which case the attorney general shall
serve such notice immediately upon instituting such
action.
(C) Intervention by the commission.--Upon receiving
notice under subparagraph (B), the Commission shall
have the right--
(i) to intervene in the action;
(ii) upon so intervening, to be heard on
all matters arising therein; and
(iii) to file petitions for appeal.
(D) Limitation on state action while federal action
is pending.--If the Commission has instituted a civil
action for a violation of this section or a regulation
promulgated thereunder, no State attorney general, or
official or agency of a State, may bring a separate
action under subparagraph (A) during the pendency of
that action against any defendant named in the
complaint of the Commission for any violation of this
section or a regulation promulgated thereunder that is
alleged in the complaint.
(E) Venue; service of process.--
(i) Venue.--Any action brought under
subparagraph (A) 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.
(ii) Service of process.--In an action
brought under subparagraph (A), process may be
served in any district in which the defendant--
(I) is an inhabitant; or
(II) may be found.
(F) Rule of construction.--For purposes of bringing
a civil action under subparagraph (A), nothing in this
section shall be construed to prevent the chief law
enforcement officer or official or agency of a State,
from exercising the powers conferred on such chief law
enforcement officer or official or agency of a State,
by the laws of the State to conduct investigations,
administer oaths or affirmations, or compel the
attendance of witnesses or the production of
documentary and other evidence.
(3) Private right of action.--
(A) In general.--An individual who is injured by a
violation of this Act or any regulation promulgated
thereunder may bring a civil action in a district court
of the United States to--
(i) obtain damages, restitution, or other
compensation;
(ii) injunctive or declaratory relief;
(iii) attorney's fees and litigation costs;
and
(iv) any other relief the court deems
proper.
(B) Venue.--In a civil action brought under
subparagraph (A), the venue shall be--
(i) a Federal judicial district in which
the defendant is found, is an inhabitant, or
transacts business; or
(ii) wherever venue is proper under section
1391 of title 28, United States Code.
(C) Class actions.--An individual entitled to bring
an action under this paragraph may bring such action as
a representative or class action under rule 23 of the
Federal Rules of Civil Procedure or any other provision
of law.
(D) Statute of limitations.--An action for a
violation of this Act may be commenced not later than
the later of 4 years after the date on which--
(i) the violation occurs; or
(ii) the violation is discovered or should
have been discovered through exercise of
reasonable diligence.
(E) No arbitration agreement or waiver.--No pre-
dispute arbitration agreement or pre-dispute joint-
action waiver shall be valid or enforceable with
respect to a dispute arising under this Act. Any
determination as to the scope or manner of
applicability of this section shall be made by a court,
rather than an arbitrator, without regard to whether
such agreement purports to delegate such determination
to an arbitrator.
(F) Rule of construction.--Any rights provided
under this subsection are in addition to, and not in
lieu of, any other rights or remedies provided by State
or Federal law.
(c) Definitions.--In this section:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Consumer.--The term ``consumer'' means--
(A) an incarcerated individual who seeks or
acquires, by purchase or lease, any goods or services
from a covered entity for personal, family, or
household purposes; or
(B) an individual seeking or acquiring such goods
or services from a covered entity for the benefit of or
in relation to an incarcerated individual.
(3) Correctional facility.--The term ``correctional
facility'' means a jail, prison, immigration detention center,
juvenile detention center, or other facility used to house
individuals who are accused of, convicted of, sentenced for, or
adjudicated delinquent for, violations of law or the terms and
conditions of parole, probation, pretrial release, or a
diversionary program.
(4) Covered entity.--The term ``covered entity'' means an
entity that knowingly provides goods or services, for
compensation, to consumers within a correctional facility or in
connection to a consumer's release from a correctional
facility.
(5) Good.--The term ``good'' means any ware, product,
commodity, merchandise, or article sold or offered for sale in
or affecting interstate commerce.
(6) Incarcerated individual.--The term ``incarcerated
individual'' means an individual housed at a correctional
facility.
(7) Mandatory fee.--The term ``mandatory fee'' means--
(A) any fee or surcharge that a consumer is
required to pay to purchase or use a good or service;
or
(B) a fee or surcharge that is not reasonably
avoidable by a consumer.
(8) Pre-dispute arbitration agreement.--The term ``pre-
dispute arbitration agreement'' means an agreement to arbitrate
a dispute that has not yet arisen at the time of the making of
the agreement.
(9) Pre-dispute joint-action waiver.--The term ``pre-
dispute joint-action waiver'' means an agreement, whether or
not part of a pre-dispute arbitration agreement, that would
prohibit or waive the right of any or all of the parties to the
agreement to participate in a joint, class, or collective
action in a judicial, arbitral, administrative, or other forum,
concerning a dispute that has not yet arisen at the time of the
making of the agreement.
(10) Service.--
(A) In general.--The term ``service'' means work or
labor bought primarily for personal, family, or
household purposes, including--
(i) consumer financial services (as defined
in section 1002 of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5481)); and
(ii) services furnished in connection with
the sale of goods in or affecting interstate
commerce.
(B) Exclusions.--The term ``service'' shall not
include:
(i) any service described in section 276(d)
of the Communications Act of 1934 (47 U.S.C.
276(d)); or
(ii) market-dominant products offered by
the United States Postal Service under
subchapter I of chapter 36 of title 39, United
States Code.
(11) State.--The term ``State'' means the 50 States, the
District of Columbia, and any territory or possession of the
United States.
(12) Transaction.--The term ``transaction'' means an
agreement between a consumer and a covered entity, whether or
not the agreement is a contract enforceable by action, and
includes the making of, and the performance pursuant to, such
agreement.
(d) Severability.--If any provision of this section, or the
application of such provision to any person or circumstance, is held to
be unconstitutional, the remainder of this section, and the application
of the provisions of such section to any person or circumstance, shall
not be affected.
<all>