House Commerce Clears Bill Barring Gag Clauses That Muzzle Consumer Reviews
The House Commerce Committee advanced the Consumer Review Fairness Act (HR-5111), the Better On-line Ticket Sales Act (HR-5104) and the Amateur Radio Parity Act (HR-1301) during a Wednesday markup. As of the evening, it was also planning to debate legislation that would significantly change some of FTC enforcement and decision-making processes. The bill has been supported by Republicans and opposed by Democrats and consumer protection groups (see 1607120046).
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The FTC Process and Transparency Reform Act (HR-5510) was expected to be the most disputed legislation among the eight bills being marked up by the panel. Republicans said the bill would modernize certain practices and help with U.S. innovation. But Democrats on the panel said the bill would undermine the commission's ability to protect consumers and let bad actors walk.
The two sides found agreement on the other bills. Similar to a Senate measure (S-2044) that passed by unanimous consent in December, HR-5111 would prohibit companies from including nondisparagement or "gag" clauses in their terms of services that permit them to retaliate against customers who post negative reviews online about products and services. Rep. Michael Burgess, R-Texas, offered an amendment Wednesday that said provisions of the bill wouldn't supersede or impair the FTC Act. Rep. Joseph Kennedy, D-Mass., supported the amendment, which was approved by the panel.
HR-5104, also known as the Bots Act, would make it an unfair business practice to use software that buys large numbers of event tickets, which are then sold at marked-up prices. The measure, introduced by Vice Chairwoman Marsha Blackburn, R-Tenn., would allow the FTC and states' attorneys general to enforce such activities. Ranking member Frank Pallone, R-N.J., offered two amendments that he said would improve the bill. One aimed at providing more transparency was rejected along party-line votes. Blackburn said it wouldn't give ticket buyers any more information to help them. Pallone's second amendment -- which would have directed the GAO to do a study about the issue -- was withdrawn after Chairman Fred Upton, R-Mich., said he would write a letter directing the office to do the study. Rep. Jan Schakowsky, D-Ill, also offered an amendment that would allow parties to bring civil action in federal courts to recover damages, but that was rejected 29-22 along party lines.
Introduced by Rep. Adam Kinzinger, R-Ill., the amateur radio bill, which attracted 126 co-sponsors, would require the FCC to adopt new rules to ensure operators could use their equipment in deed-restricted communities. The panel Wednesday approved a substitute amendment that Rep. Anna Eshoo, D-Calif., said the day before would make it easier for radio operators to install their antennas while giving homeowner associations flexibility to establish reasonable rules about the size and appearance of such antennas. Communications Subcommittee Chairman Greg Walden, R-Ore., said Wednesday both groups representing amateur radio operators and homeowners' associations support the bill. He said there are 730,000 operators, including himself, in the U.S. "It's a good amendment," said Kinzinger Wednesday. "It strikes the right balance."