Coin and Precious Metal Disclosure Act, H.R. 6149

H.R. 6149 IH (Introduced in House)

To require disclosures to consumers by coin and precious metal bullion dealers.

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 ‘Coin and Precious Metal Disclosure Act’.

SEC. 2. DISCLOSURES REQUIRED OF COIN AND PRECIOUS METAL DEALERS.

(a) Unlawful Conduct- A covered coin or precious metal dealer shall disclose to the consumer, prior to any sale of coins or precious metal bullion, the following information:

(1) Any fee that is or may be incurred by the customer if the sale of the coin or precious metal bullion were to be consummated.

(2) The purchase price, the melt value, and the reasonable resale value of the coin or precious metal bullion.

(3) Such other information as the Commission may require by regulation (in accordance with section 553 of title 5, United States Code).

(b) Manner of Disclosure-

(1) IN GENERAL- Except as provided in paragraph (2), the disclosures required under subsection (a) shall be in writing and present the information clearly and conspicuously.

(2) TELEPHONE COMMUNICATION- In any solicitation made by telephone for any sale subject to subsection (a), the person making the solicitation shall orally disclose the information required by such subsection clearly and conspicuously to the consumer before the transaction is consummated.

SEC. 3. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.

(a) Unfair and Deceptive Act or Practice- A violation of this Act or a regulation issued pursuant to this Act shall be treated as an unfair or deceptive act or practice in violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or practices.

(b) Powers of Commission- The Commission shall enforce this Act 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 Act. Any person who violates this Act shall be subject to the penalties and entitled to the privileges and immunities provided in that Act.

SEC. 4. ENFORCEMENT BY STATES.

(a) In General- Whenever an attorney general of any State has reason to believe that the interests of the residents of that State have been or are being threatened or adversely affected because any person has engaged or is engaging in an act or practice which violates section 2 or any rule of the Commission issued pursuant to this Act, the State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate district court of the United States to enjoin such violative act or practice, to enforce compliance with such rule of the Commission, to obtain damages, restitution, or other compensation on behalf of residents of such State, or to obtain such further and other relief as the court may determine appropriate.

(b) Notice- The State shall provide prior written notice of any civil action under subsection (a) or (f)(2) to the Commission and provide the Commission with a copy of its complaint, except that if it is not feasible for the State to provide such prior notice, the State shall provide such notice immediately upon instituting such action. Upon receiving a notice respecting a civil action, the Commission shall have the right–

(1) to intervene in such action;

(2) upon so intervening, to be heard on all matters arising therein;

(3) to remove the action to the appropriate United States district court; and

(4) to file petitions for appeal.

(c) Construction- For purposes of bringing any civil action under subsection (a), nothing in this Act shall prevent an attorney general from exercising the powers conferred on the attorney general 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.

(d) Actions by Commission- Whenever a civil action has been instituted by or on behalf of the Commission for violation of section 2 or any rule issued pursuant to this Act, no State may, during the pendency of such action instituted by or on behalf of the Commission, institute a civil action under subsection (a) or (f)(2) of this section against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint.

(e) Venue; Service of Process- Any civil action brought under subsection (a) of this section in a district court of the United States may be brought in the district in which the defendant is found, is an inhabitant, or transacts business or wherever venue is proper under section 1391 of title 28, United States Code. Process in such an action may be served in any district in which the defendant is an inhabitant or in which the defendant may be found.

(f) Actions by Other State Officials-

(1) CONSTRUCTION- Nothing contained in this section shall prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any civil or criminal statute of such State.

(2) OTHER STATE ACTIONS- In addition to actions brought by an attorney general of a State under subsection (a) of this section, such an action may be brought by officers of such State who are authorized by the State to bring actions in such State on behalf of its residents.

SEC. 5. DEFINITIONS.

As used in this Act–

(1) the term ‘coin or precious metal dealer’ means any person that sells or offer for sale for investment purposes gold coins or bullion or coins or bullion made of other precious metals;

(2) the term ‘melt-value’ means the reasonable estimated value of any coin or precious metal if such item were processed and refined; and

(3) the term ‘reasonable resale value’ means a reasonable price that the coin or precious metal dealer selling the coin or other precious metal determines that other coin or precious metal dealers would pay to purchase the coin or other precious metal from the consumer on the date that such coin or other precious metal is sold to the consumer.

SEC. 6. EXEMPTION AND RULE OF CONSTRUCTION.

(a) Exemption for Certain Collectible Coins- Nothing in this Act shall apply to the sale of rare and collectable coins–

(1) the precious metal content of which constitutes only a limited or insignificant portion of the overall value of the coin; and

(2) whose value is not affected by the increase or decline in the value of such precious metals.

(b) Rule of Construction Relating to the Telemarketing Sales Rule- Nothing in this Act shall be construed to affect the Telemarketing Sales Rule as set forth in part 310 of title 16, Code of Federal Regulations.