§6103 — Title 15 Commerce and Trade | U.S. Code

Summary

A state attorney general may sue in federal court for residents when a pattern of telemarketing breaks the federal telemarketing rules. The state can ask a judge to stop the telemarketing, make the rules followed, get money back or other compensation for residents, or other relief the court finds proper. The state must give written notice and a copy of its complaint to the federal agency that enforces the rules, or tell that agency right away if prior notice is not possible. That agency can join the case, speak in court, and appeal. The state may use its usual investigative powers (like taking oaths and forcing witnesses or documents) to help the case. If the federal agency or the Consumer Financial Protection Bureau has already sued the same defendant for the same rule violation, the state may not start a federal case against those named defendants while that federal case is pending. The state can sue where the defendant lives, is found, does business, or wherever federal venue rules allow, and other state officials authorized by the state may bring these actions too. States may also bring cases in state court under their own laws.

Title 15, §6103

Commerce and Trade — Source: USLM XML via OLRC

(a)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 a pattern or practice of telemarketing which violates any rule of the Commission under section 6102 of this title, 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 telemarketing, 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 deem appropriate.

(b)The State shall serve prior written notice of any civil action under subsection (a) or (f)(2) upon 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 serve 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, and (3) to file petitions for appeal.

(c)For purposes of bringing any civil action under subsection (a), nothing in this chapter 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)Whenever a civil action has been instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection for violation of any rule prescribed under section 6102 of this title, no State may, during the pendency of such action instituted by or on behalf of the Commission or the Bureau of Consumer Financial Protection, institute a civil action under subsection (a) or (f)(2) against any defendant named in the complaint in such action for violation of any rule as alleged in such complaint.

(e)Any civil action brought under subsection (a) 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. 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)(1)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)In addition to actions brought by an attorney general of a State under subsection (a), 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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (c), was in the original “this Act”, meaning Pub. L. 103–297, Aug. 16, 1994, 108 Stat. 1545, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 6101 of this title and Tables.

Amendments

2010—Subsec. (d). Pub. L. 111–203 inserted “or the Bureau of Consumer Financial Protection” after “Commission” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

§6103 Actions by States