Sec. 1681s. Administrative enforcement

(a) Enforcement by Federal Trade Commission
(1) Compliance with the requirements imposed under this
subchapter shall be enforced under the Federal Trade Commission Act
[15 U.S.C. 41 et seq.] by the Federal Trade Commission with respect
to consumer reporting agencies and all other persons subject
thereto, except to the extent that enforcement of the requirements
imposed under this subchapter is specifically committed to some
other government agency under subsection (b) hereof. For the
purpose of the exercise by the Federal Trade Commission of its
functions and powers under the Federal Trade Commission Act, a
violation of any requirement or prohibition imposed under this
subchapter shall constitute an unfair or deceptive act or practice
in commerce in violation of section 5(a) of the Federal Trade
Commission Act [15 U.S.C. 45(a)] and shall be subject to
enforcement by the Federal Trade Commission under section 5(b)
thereof [15 U.S.C. 45(b)] with respect to any consumer reporting
agency or person subject to enforcement by the Federal Trade
Commission pursuant to this subsection, irrespective of whether
that person is engaged in commerce or meets any other
jurisdictional tests in the Federal Trade Commission Act. The
Federal Trade Commission shall have such procedural, investigative,
and enforcement powers, including the power to issue procedural
rules in enforcing compliance with the requirements imposed under
this subchapter and to require the filing of reports, the
production of documents, and the appearance of witnesses as though
the applicable terms and conditions of the Federal Trade Commission
Act were part of this subchapter. Any person violating any of the
provisions of this subchapter shall be subject to the penalties and
entitled to the privileges and immunities provided in the Federal
Trade Commission Act as though the applicable terms and provisions
thereof were part of this subchapter.
(2)(A) In the event of a knowing violation, which constitutes a
pattern or practice of violations of this subchapter, the
Commission may commence a civil action to recover a civil penalty
in a district court of the United States against any person that
violates this subchapter. In such action, such person shall be
liable for a civil penalty of not more than $2,500 per violation.
(B) In determining the amount of a civil penalty under
subparagraph (A), the court shall take into account the degree of
culpability, any history of prior such conduct, ability to pay,
effect on ability to continue to do business, and such other
matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any
civil penalty on a person for a violation of section 1681s-2(a)(1)
of this title unless the person has been enjoined from committing
the violation, or ordered not to commit the violation, in an action
or proceeding brought by or on behalf of the Federal Trade
Commission, and has violated the injunction or order, and the court
may not impose any civil penalty for any violation occurring before
the date of the violation of the injunction or order.
(b) Enforcement by other agencies
Compliance with the requirements imposed under this subchapter
with respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who furnish
information to such agencies, and users of information that are
subject to subsection (d) of section 1681m of this title shall be
enforced under -
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], in the case of -
(A) national banks, and Federal branches and Federal agencies
of foreign banks, by the Office of the Comptroller of the
Currency;
(B) member banks of the Federal Reserve System (other than
national banks), branches and agencies of foreign banks (other
than Federal branches, Federal agencies, and insured State
branches of foreign banks), commercial lending companies owned
or controlled by foreign banks, and organizations operating
under section 25 or 25A of the Federal Reserve Act [12 U.S.C.
601 et seq., 611 et seq.], by the Board of Governors of the
Federal Reserve System; and
(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve System)
and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], by the Director of the Office of Thrift Supervision, in
the case of a savings association the deposits of which are
insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by
the Administrator of the National Credit Union Administration
with respect to any Federal credit union;
(4) subtitle IV of title 49, by the Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(5) part A of subtitle VII of title 49, by the Secretary of
Transportation with respect to any air carrier or foreign air
carrier subject to that part; and
(6) 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.
The terms used in paragraph (1) that are not defined in this
subchapter or otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
given to them in section 1(b) of the International Banking Act of
1978 (12 U.S.C. 3101).
(c) State action for violations
(1) Authority of States
In addition to such other remedies as are provided under State
law, if the chief law enforcement officer of a State, or an
official or agency designated by a State, has reason to believe
that any person has violated or is violating this subchapter, the
State -
(A) may bring an action to enjoin such violation in any
appropriate United States district court or in any other court
of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf
of the residents of the State to recover -
(i) damages for which the person is liable to such
residents under sections 1681n and 1681o of this title as a
result of the violation;
(ii) in the case of a violation described in any of
paragraphs (1) through (3) of section 1681s-2(c) of this
title, damages for which the person would, but for section
1681s-2(c) of this title, be liable to such residents as a
result of the violation; or
(iii) damages of not more than $1,000 for each willful or
negligent violation; and
(C) in the case of any successful action under subparagraph
(A) or (B), shall be awarded the costs of the action and
reasonable attorney fees as determined by the court.
(2) Rights of Federal regulators
The State shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission or the
appropriate Federal regulator determined under subsection (b) of
this section and provide the Commission or appropriate Federal
regulator with a copy of its complaint, except in any case in
which such prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting such action.
The Federal Trade Commission or appropriate Federal regulator
shall have the right -
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising
therein;
(C) to remove the action to the appropriate United States
district court; and
(D) to file petitions for appeal.
(3) Investigatory powers
For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law
enforcement officer, or an official or agency designated by a
State, from exercising the powers conferred on the chief law
enforcement officer or such official by the laws of such State to
conduct investigations or to administer oaths or affirmations or
to compel the attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on State action while Federal action pending
If the Federal Trade Commission or the appropriate Federal
regulator has instituted a civil action or an administrative
action under section 8 of the Federal Deposit Insurance Act [12
U.S.C. 1818] for a violation of this subchapter, no State may,
during the pendency of such action, bring an action under this
section against any defendant named in the complaint of the
Commission or the appropriate Federal regulator for any violation
of this subchapter that is alleged in that complaint.
(5) Limitations on State actions for certain violations
(A) Violation of injunction required
A State may not bring an action against a person under
paragraph (1)(B) for a violation described in any of paragraphs
(1) through (3) of section 1681s-2(c) of this title, unless -
(i) the person has been enjoined from committing the
violation, in an action brought by the State under paragraph
(1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable
In an action against a person under paragraph (1)(B) for a
violation described in any of paragraphs (1) through (3) of
section 1681s-2(c) of this title, a State may not recover any
damages incurred before the date of the violation of an
injunction on which the action is based.
(d) Enforcement under other authority
For the purpose of the exercise by any agency referred to in
subsection (b) of this section of its powers under any Act referred
to in that subsection, a violation of any requirement imposed under
this subchapter shall be deemed to be a violation of a requirement
imposed under that Act. In addition to its powers under any
provision of law specifically referred to in subsection (b) of this
section, each of the agencies referred to in that subsection may
exercise, for the purpose of enforcing compliance with any
requirement imposed under this subchapter any other authority
conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs (1)
and (2) of subsection (b) of this section shall jointly prescribe
such regulations as necessary to carry out the purposes of this
subchapter with respect to any persons identified under paragraphs
(1) and (2) of subsection (b) of this section, and the Board of
Governors of the Federal Reserve System shall have authority to
prescribe regulations consistent with such joint regulations with
respect to bank holding companies and affiliates (other than
depository institutions and consumer reporting agencies) of such
holding companies.
(2) The Board of the National Credit Union Administration shall
prescribe such regulations as necessary to carry out the purposes
of this subchapter with respect to any persons identified under
paragraph (3) of subsection (b) of this section.
(f) Coordination of consumer complaint investigations
(1) In general
Each consumer reporting agency described in section 1681a(p) of
this title shall develop and maintain procedures for the referral
to each other such agency of any consumer complaint received by
the agency alleging identity theft, or requesting a fraud alert
under section 1681c-1 of this title or a block under section
1681c-2 of this title.
(2) Model form and procedure for reporting identity theft
The Commission, in consultation with the Federal banking
agencies and the National Credit Union Administration, shall
develop a model form and model procedures to be used by consumers
who are victims of identity theft for contacting and informing
creditors and consumer reporting agencies of the fraud.
(3) Annual summary reports
Each consumer reporting agency described in section 1681a(p) of
this title shall submit an annual summary report to the
Commission on consumer complaints received by the agency on
identity theft or fraud alerts.
(g) FTC regulation of coding of trade names
If the Commission determines that a person described in paragraph
(9) of section 1681s-2(a) of this title has not met the
requirements of such paragraph, the Commission shall take action to
ensure the person's compliance with such paragraph, which may
include issuing model guidance or prescribing reasonable policies
and procedures, as necessary to ensure that such person complies
with such paragraph.

AMENDMENTS
2003 - Subsec. (b)(1)(B). Pub. L. 108-159, Sec. 811(f),
substituted "25A" for "25(a)".
Subsec. (c)(1)(B)(ii). Pub. L. 108-159, Sec. 312(e)(2)(A),
substituted "described in any of paragraphs (1) through (3) of
section 1681s-2(c)" for "of section 1681s-2(a)".
Subsec. (c)(5). Pub. L. 108-159, Sec. 312(e)(2)(B)(ii),
substituted "certain violations" for "violation of section
1681s-2(a)(1)" in heading.
Subsec. (c)(5)(A), (B). Pub. L. 108-159, Sec. 312(e)(2)(B)(i),
substituted "described in any of paragraphs (1) through (3) of
section 1681s-2(c)" for "of section 1681s-2(a)(1)".
Subsec. (f). Pub. L. 108-159, Sec. 153, added subsec. (f).
Subsec. (g). Pub. L. 108-159, Sec. 412(e), added subsec. (g).
1999 - Subsec. (a)(4). Pub. L. 106-102, Sec. 506(b), struck out
par. (4) which read as follows: "Neither the Commission nor any
other agency referred to in subsection (b) of this section may
prescribe trade regulation rules or other regulations with respect
to this subchapter."
Subsec. (d). Pub. L. 106-102, Sec. 506(a)(1), struck out at the
end "Notwithstanding the preceding, no agency referred to in
subsection (b) of this section may conduct an examination of a
bank, savings association, or credit union regarding compliance
with the provisions of this subchapter, except in response to a
complaint (or if the agency otherwise has knowledge) that the bank,
savings association, or credit union has violated a provision of
this subchapter, in which case, the agency may conduct an
examination as necessary to investigate the complaint. If an agency
determines during an investigation in response to a complaint that
a violation of this subchapter has occurred, the agency may, during
its next 2 regularly scheduled examinations of the bank, savings
association, or credit union, examine for compliance with this
subchapter."
Subsec. (e). Pub. L. 106-102, Sec. 506(a)(2), added subsec. (e)
and struck out heading and text of former subsec. (e). Text read as
follows: "The Board of Governors of the Federal Reserve System may
issue interpretations of any provision of this subchapter as such
provision may apply to any persons identified under paragraph (1),
(2), and (3) of subsection (b) of this section, or to the holding
companies and affiliates of such persons, in consultation with
Federal agencies identified in paragraphs (1), (2), and (3) of
subsection (b) of this section."
1998 - Subsec. (b). Pub. L. 105-347 struck out "or (e)" after
"subject to subsection (d)" in introductory provisions.
1996 - Subsec. (a). Pub. L. 104-208, Sec. 2416(b)(1), which
directed the amendment of subsec. (a) by inserting heading
"Enforcement by Federal Trade Commission" before "Compliance with
the requirements", was executed by making the insertion after
"(a)", to reflect the probable intent of Congress and the amendment
by Pub. L. 104-208, Sec. 2416(a). See below.
Pub. L. 104-208, Sec. 2416(a), inserted "(1)" after "(a)" and
added pars. (2) to (4).
Subsec. (b). Pub. L. 104-208, Sec. 2416(b)(2), inserted heading
and in introductory provisions substituted "Compliance with the
requirements imposed under this subchapter with respect to consumer
reporting agencies, persons who use consumer reports from such
agencies, persons who furnish information to such agencies, and
users of information that are subject to subsection (d) or (e) of
section 1681m of this title shall be enforced under - " for
"Compliance with the requirements imposed under this subchapter
with respect to consumer reporting agencies and persons who use
consumer reports from such agencies shall be enforced under - ".
Subsec. (c). Pub. L. 104-208, Sec. 2417(2), added subsec. (c).
Former subsec. (c) redesignated (d).
Pub. L. 104-208, Sec. 2416(c), inserted at end "Notwithstanding
the preceding, no agency referred to in subsection (b) of this
section may conduct an examination of a bank, savings association,
or credit union regarding compliance with the provisions of this
subchapter, except in response to a complaint (or if the agency
otherwise has knowledge) that the bank, savings association, or
credit union has violated a provision of this subchapter, in which
case, the agency may conduct an examination as necessary to
investigate the complaint. If an agency determines during an
investigation in response to a complaint that a violation of this
subchapter has occurred, the agency may, during its next 2
regularly scheduled examinations of the bank, savings association,
or credit union, examine for compliance with this subchapter."
Subsec. (d). Pub. L. 104-208, Sec. 2417(1), redesignated subsec.
(c) as (d).
Subsec. (e). Pub. L. 104-208, Sec. 2418, added subsec. (e).
1995 - Subsec. (b)(4). Pub. L. 104-88 substituted "Secretary of
Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board" for "Interstate
Commerce Commission with respect to any common carrier subject to
those Acts".
1992 - Subsec. (b)(1)(C). Pub. L. 102-550 substituted semicolon
for period at end.
1991 - Subsec. (b). Pub. L. 102-242, Sec. 212(c)(2), inserted at
end "The terms used in paragraph (1) that are not defined in this
subchapter or otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning
given to them in section 1(b) of the International Banking Act of
1978 (12 U.S.C. 3101)."
Pub. L. 102-242, Sec. 212(c)(1), added par. (1) and struck out
former par. (1) which read as follows: "section 8 of the Federal
Deposit Insurance Act, in the case of:
"(A) national banks, by the Comptroller of the Currency;
"(B) member banks of the Federal Reserve System (other than
national banks), by the Federal Reserve Board; and
"(C) banks insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), by the Board
of Directors of the Federal Deposit Insurance Corporation."
1989 - Subsec. (b)(2). Pub. L. 101-73 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: "section 5(d) of the
Home Owners Loan Act of 1933, section 407 of the National Housing
Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by
the Federal Home Loan Bank Board (acting directly or through the
Federal Savings and Loan Insurance Corporation), in the case of any
institution subject to any of those provisions;".
1984 - Subsec. (b)(5). Pub. L. 98-443 substituted "Secretary of
Transportation" for "Civil Aeronautics Board".
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by Pub. L. 108-159 subject to joint regulations
establishing effective dates as prescribed by Federal Reserve Board
and Federal Trade Commission, except as otherwise provided, see
section 3 of Pub. L. 108-159, set out as a note under section 1681
of this title.
Amendment by section 412(e) of Pub. L. 108-159 effective at end
of 15-month period beginning on Dec. 4, 2003, see section 412(g) of
Pub. L. 108-159, set out as a note under section 1681b of this
title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-347 deemed to have same effective date
as amendments made by section 2403 of Pub. L. 104-208, see section
7 of Pub. L. 105-347, set out as a note under section 1681a of this
title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
1996, with special rule for early compliance, see section 2420 of
Pub. L. 104-208, set out as a note under section 1681a of this
title.
EFFECTIVE DATE OF 1995 AMENDMENT
Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
of Pub. L. 104-88, set out as an Effective Date note under section
701 of Title 49, Transportation.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-550 effective as if included in the
Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.
L. 102-242, as of Dec. 19, 1991, see section 1609(a) of Pub. L.
102-550, set out as a note under section 191 of Title 12, Banks and
Banking.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section
9(v) of Pub. L. 98-443, set out as a note under section 5314 of
Title 5, Government Organization and Employees.