5 1 (d) Whenever a class of consumers prevails in a class 2 action under this Act, including the amendments made by 3 this Act, the court shall award to the attorneys representing 4 such class a reasonable fee based on the value of their serv5 ices to the class. An award of attorney's fees is to be made 6 in addition to the damages or relief recovered by the class except that attorneys' fees may be awarded from money 8 damages or financial penalties which the defendant owes to 9 members of the class who cannot be located with due dili 10 gence. Such attorneys' fees awarded by the court shall not 11 exceed 10 percent of the total judgment unless failure to 12 award a greater amount would be manifestly unjust and not 91ST CONGRESS 18T SESSION S. 3201 IN THE SENATE OF THE UNITED STATES DECEMBER 3, 1969 Mr. MAGNUSON (for himself, Mr. BAKER, Mr. GRIFFIN, Mr. PROUTY, and Mr. Scorr) (by request) introduced the following bill; which was read twice and referred to the Committee on Commerce A BILL To amend the Federal Trade Commission Act to provide increased protection for consumers, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Consumer Protection 4 Act of 1969". 5 6 TITLE I-DECEPTIVE SALES AFFECTING COMMERCE 7 SEC. 101. Section 5 of the Federal Trade Commission 8 Act, as amended (38 Stat. 719; 15 U.S.C. 45) is amended 9 by changing the words "in commerce" wherever they ap10 pear to "affecting commerce". 11 SEC. 102. Subsection (a) of section 13 of the Federal 2 1 Trade Commission Act (52 Stat. 115; 15 U.S.C. 53 (a)) is 2 amended to read as follows: 3 4 5 6 7 8 9 10 11 12 13 14 15 "(a) Whenever the Commission has reason to believe "(1) that any person is engaged in, or is about to engage in, the dissemination or the causing of the dissemination of any advertisement in violation of section 12, or any act or practice which is unfair or deceptive to a consumer and is prohibited by section 5, and "(2) that the enjoining thereof pending the issuance of a complaint by the Commission under section 5, and until such complaint is dismissed by the Commission or set aside by the court on review, or the order of the Commission to cease and desist made thereon has become final within the meaning of section 5, would be to the interest of the public 16 the Commission by any of its attorneys designated by it for 17 such purpose may bring suit in a district court of the United 18 States to enjoin the dissemination or the causing of the dis19 semination of such advertisement or any such act or practice. 20 Upon proper showing of need, a temporary restraining order preliminary injunction may be granted without bond: 22 Provided, however, That if a complaint under section 5 is 23 not filed within sixty days of the issuance of the restraining 24 order or preliminary injunction, the order or injunction shall 25 be dissolved and of no further force and effect." 21 or 3 1 2 3 4 TITLE II-ENFORCEMENT OF CONSUMER INTERESTS UNFAIR OR DECEPTIVE ACTS OR PRACTICES SEC. 201. As used in this title (a) “unfair or deceptive practice" means any of the following acts or practices (1) offering goods or services intending not to sell them as offered; (2) advertising goods or services intending not to supply reasonably expectable public demand, un less the advertisement discloses a limitation; (3) stating that services, replacements, or repairs are needed with knowledge that they are not; (4) representing that the consumer is legally obligated to pay for, safeguard, or return unsolicited goods knowing that the consumer is not; (5) representing that the consumer will obtain any rights, privileges, or remedies knowing that the consumer will not; (6) representing that goods are new knowing that they are not; (7) representing that goods are of a particular standard, grade, quality, style, or model knowing they are not; 4 (8) making statements of fact concerning (i) the reason for, existence of, or amounts of price reductions, or (ii) savings in comparison to prices of competitors or one's own price, knowing that such statements are false; (9) representing that goods or services are those of another, knowing they are not; (10) failing to return or refund a deposit or advance payment for goods not delivered or services not rendered, when no default or further obligation of the person making such deposit or advance pay ment exists; and (11) knowingly representing that goods or services have sponsorship, approval, origin, characteristics of safety or performance, ingredients, uses, benefits, or quantities that they do not have, or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have: Pro vided, however, That an affirmation by the supplier merely of the value of the goods or services or a statement of his opinion of the goods or services, or similar statements, which do not take unfair advan tage of the level of knowledge, ability, experience, or capacity of the consumer shall not be deemed an 39-278 0-70-pt. 2 |