CR3 CONGRESSIONAL RESEARCH SERVICE LIBRARY OF CONGRESS HC 110 D 75-193D SUMMARY OF MAJOR FEDERAL CONSUMER PROTECTION LAWS ENACTED, 1969 - 1974 (91st, 92nd & 93rd CONGRESSES) WILLIAM G. KAYE Assistant Coordinator Of Research Office of the Director September 1, 1975 TABLE OF CONTENTS Page Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 I. Food, Drugs and Cosmetics . . . . . . . . . . . . . . . . . . . . . . . . . . 4 A. Meat Inspection — Custom Slaughtering Amendments (P. L. 91-342). . . 4 B. Egg Products Inspection Act (P. L. 91-597). . . . . . . . . . . . . . . . 4 C. Drug Listing Act of 1972 (P.L. 92-387). . . . . . . . . . . . . . . . . . 5 D. Safe Drinking Water Act (P.L. 93-523) . . . . . . . . . . . . . . . . . . 6 II. Truthful Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 A. Public Health Cigarette Smoking Act of 1969 (P. L. 91-222) . . . . . . . 7 B. Consumer Protection — Gold and Silver Articles Amend- ments (P.L. 91-366) . . . . . . . . . . . . . . . . . . . . . . . . . . 9 C. Mailing of Unordered Merchandise, Section 3009 of the Postal Reorganization Act (P. L. 91-375) . . . . . . . . . . . . . . . _9 D. Little Cigar Act of 1973 (P.L. 93-109) . . . . . . . . . . . . . . . . . . 10 E. Federal Trade Commission Authority, Title IV, Section 108 of the Trans-Alaska Pipeline Authorization Act (P. L. 93-153) . . . . 10 F. Amendments to the Interstate Land Sales Full Disclosure Act, Title VIII of the Housing and Community Develop- ment Act of 1974 (P.L. 93-383)* . . . . . . . . . . . . . . . . . . . . 11 G. Freedom of Information Act Amendments (P. L. 93-502) . . . . . . . . . 12 H. Real Estate Settlement Procedures Act of 1974 (P.L. 93-533). . . . . . 13 I Magnuson-Moss Warranty - Federal Trade Commission Improvement Act (P.L. 93-637) . . . . . . . . . . . . . . . . . . . . 13 Titlel — Consumer Product Warranties . . . . . . . . . . . . . . . 14 Title II — Federal Trade Commission Improvements . . . . . . . . . 14 III. Credit, Banking, Credit Unions and Securities . . . . . . . . . . . . . . . . 16 A. National Credit Union Administration Amendment to the Federal Credit Union Act (P. L. 91-206) . . . . . . . . . . . . . . . . 16 B. District of Columbia - Debt Adjusting Act (P.L. 91-266) . . . . . . . . 17 C. Bankruptcy Act Amendments (P. L. 91-467) . . . . . . . . . . . . . . . 17 D. Share Insurance Amendment to the Federal Credit Union Act (P.L. 91-468). . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 E. Bank Records and Foreign Transactions [and Certain ConsumerCredit Matters] (P.L. 91-508 . . . . . . . . . . . . . . . . . . . . . . . . . 19 Title V - Unsolicited Credit Cards Liability from Loss or Theft . . 19 Title VI - Fair Credit Reporting Act . . . . . . . . . . . . . . . . . 20 F. Investment Company Amendments Act of 1970 (P. L. 91-547) . . . . . . 22 G. Investor Protection Amendments to the Securities Exchange Act of 1934 (P.L. 91-567). . . . . . . . . . . . . . . . . . . . . . . . . . 23 * Law appears in more than one category of consumer protection activity. IV. H. I. J. KO Safety . . . . . . . . . . . . . . . . F9.“ MP9“? I. Motor Vehicles . . . . . . . . . . . . . . . . . . . . . . . . . A0 B0 C0 D. E. ii Table of Contents (continued) Securities Investor Protection Act of 1970 (P.L. 91-598) . . . . . . . . District of Columbia Consumer Credit Protection Actof1971(P.L.92-200) Housing and Community Development Act of 1974 (P.L. 93—383)* . . . . Title III - Section 306. Amendment to the Correction of Defects in Existing Homes Provision, Section 518b of Title V ofthe National Housing Act. . . . . . . . . . . . . . . . Part C: Amendments to the Federal Credit Union Act Section 808. Prohibition against Discrimination on Account of Sex in Extension of Mortgage Assistance . . . . . . . Depository Institutions Amendments (P.L. 93-495) . V. . . . . . . . . Title I — Amendments to and Extension of Provisions of Law Relating to Federal Regulation of De- pository Institutions National Commission on Electronic Fund Transfers.............. Fair Credit Billing Act . . . . . . . . . . . . . Amendments to the Truth-in—Lending Act Equal Credit Opportunity Act. . . . . . . . . Disposition of Abandoned Money Orders and Traveler's Checks . . . . . . . . . . . Title VII - Title VIII - Title 11 Title III ' ° ' ° ' ' Title IV Title V Title VI Child Protection and Toy Safety Act of 1969 (P. L. 91-113) Poison Prevention Packaging Act of 1970 (P. L. 91-601)- . Lead—Based Paint Poisoning Prevention Act (P. L. 91-695) Federal Boat Safety Act of 1971 (P. L. 92-75) Youth Camp Safety Investigation, Title VI of the Education Amendments of 1972 (P.L. 92-318)* Consumer Product Safety Act (P.L. 92-573) . . . . . Lead-Based Paint Poisoning Prevention Amendments (P. L. 93-151) Mobile Home Construction and Safety Standards, Title VI of the Housing and Community Development Act of 1974 (P.L. 93-383)* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O O O I O O O O 0 Federal Fire Prevention and Control Act of 1974 (P. L. 93-498) . . . . . Traffic and Motor Vehicle Safety Amendments (P. L. 91-265) . . . . . . Highway Safety Act of 1970, Title II, Section 202 of the Federal- Aid HighwayAct of 1970 (P.L. 91-605) . . . . . . . . . . . . . . . . Motor Vehicle Information and Cost Savings Act (P. L. 92-513) . . . . . National Traffic and Motor Vehicle Safety Amendments of 1972 (P. L. 92-548);86Stat.l159 . . . . . Motor Vehicle and School Bus Safety Amendments of 1974 (P. L. 93-492) Law appears in more than one category of consumer protection activity. Page 23 24 24 25 26 26 25 27 40 41 42 42 43 44 45 45 iii Table of Contents (continued) Page VI.ConsumerEducation.............................. 47 A. Consumers‘ Education: Section 205, Title II and Section 505, Title V of the Education Amendments of 1972 (P.L. 92-3l8)*. . . . . 47 B. Consumers‘ Education: Section 407, Title IV of the Education Amendments of 1974 (P.L. 93-380) . . . . . . . . . . . . . . . . . . 47 VII. Selected Other Laws Potentially Affecting Consumer Interests . . . . . . ._ 49 A. National Environmental Policy Act of 1969 (P.L. 91-190) . . . . . . . . 49 B. Economic Stabilization Act of 1970 (Title II of P.L. 91-379) . . . . . . 50 C. Resource Recovery Act of 1970 (P.L. 91-512). . . . . . . . . . . . . . 51 D. Clean Air Amendments of 1970 (P.L. 91-604) . . . . . . . . . . . . . 51 E. Bank Holding Company Act Amendments of 1970 (P.L. 91-607) . . . . . 52 F. Federal Water Pollution Control Act Amendments (P. L. 92-500) . . . . 53 G. Federal Environxnental Pesticide Control Act of 1972 (P.L. 92-516) . . 53 H. Noise Control Act of 1972 (P.L. 92-574). . . . . . . . . . . . . . . . . 54 1. Agriculture and Consumer Protection Act (P.L. 93-86). . . . . . . . . 54 J. Emergency Petroleum Allocation Act of 1973 (P.L. 93-159). . . . . . . 55 K. Federal Energy Administration Act of 1974 (P. L. 93-275). . . . . . . . 55 L. Health Maintenance Organization Act of 1973 (P.L. 93-222) . . . . . . . 55 M. Emergency Highway Energy Conservation Act (P.L. 93-239) . . . . . . 56 N. Legal Services Corporation Act of 1974 (P.L. 93-355). . . . . . . . . . 57 O. Perishable Agricultural Commodities Act Amendment (P. L. 93-369) . . 57 P. Housing and Community Development Act of 1974 (P.L. 93-383)* . . . . 58 Q. Council on Wage and Price Stability Act (P.L. 93-387) . . . . . . . . . 59 R. Employee Retirement Income Security Act of 1974 (P.L. 93-406) . . . . 60 S. Solar Heating and Cooling Demonstration Act of 1974 (P. L. 93-409) . . 61 T. Egg Research and Consumer Information Act (P.L. 93-428). . . . . . . 62 U. Emergency Home Purchase Assistance Act of 1974 (P.L. 93-449) . . . 62 V. Commodity Futures Trading Commission Act of 1974 (P.L. 93-463) . . 63 W. Antitrust Procedures and Penalties Act (P. L. 93-528). . . . . . . . . . 63 X. Privacy Act of 1974 (P.L. 93-579) . . . . . . . . . . . . . . . . . . . . 64 Y. Headstart, Economic Opportunity, and Community Partnership Act0f1974(P.L.93-644)............. . . . . 65 Index A - Consumer Areas Affected by Federal Consumer Protection Laws Enacted,1969-1974.... . . . . . . 67 Index B — Federal Agencies Affected by Federal Consumer Protection Laws Enacted, 1969 - 1974 . . . . . . . . . . . . . . . . . . . . . . . . 73 * Law appears in more than one category of consumer protection activity. SUMMARY OF MAJOR FEDERAL CONSUMER PROTECTION LAWS ENACTED, 1969 - 1974 91 st, 92nd & 93rd CONGRESSES Introduction The Nation is in the midst of the third major wave of consumer protection legislation in this century. The first wave began with the early 1 900s and the passage of the Pure Food and Drugs Act of 1906 (34 Stat. 768) and the Meat Inspection Act of 1907 (38 Stat. 717), and culminated with the Federal Trade Commission Act of 1914. The second wave of consumerism coincided with the New Deal of the 1930s, with the Federal Credit Union Act (48 Stat. 1216), the establishment ‘of consumer—related regulatory agencies such as the Securities and Exchange Commission (48 Stat. 881), and the Federal Food, Drug and Cosmetic Act of 1938 (52 Stat. 1040). The current wave of consumerism began in earnest in 1962, with the issuance of a Consumer Bill of Rights by Presi- dent JohnF. Kennedy in the first Presidential message on consumer protection’:- the appointment of the first Consumer Advisory Council in the Executive Office of the Presidenttgj and the appointment in 1964 of the first Special Assistant to the President for Consumer Affairs, together with the c31}eation of a consumer affairs office in the Executive Office of the President‘: Since then, more than fifty Federal consumer protection laws have been enacted. 1/ John F. Kennedy. Special Message to the Congress on Protecting the Con- -’ sumer Interest. March 15, 1962. 2/ Proposed by President John F. Kennedy in the consumer message of March " 1962, the appointment of the first Consumer Advisory Council was announc- ed on July 18, 1962. 3/ Lyndon B. Johnson. Statement by the President Upon Establishing the _ President's Committee on Consumer Interests. January 3, 1964. Appoint- ment of the Special Assistant to the President for Consumer Affairs was announced in the same statement. CRS-2 While the comparatively recent emphasis on consumer protection legislation began with the Kennedy and Johnson Administrations and the 88th thru 90th Congresses, the activity has continued unabated in the 91 st thru 93rd Congresses. These recent Congresses (1969-1974) have broadened and intensified consumer protection objectives with the passage of more than 35 new or expanded laws in such areas as consumer product safety, consumer credit, poison pre- vention packaging, security for investors and depositors, warranties, motor vehicle safety, and elimination of unfair and deceptive practices. This report summarizes the new consumer protection laws and the amendments to existing consumer protection laws, passed by Congress during the period 1969-1974. The legislation is grouped into six broad sections, with laws listed in chronological order of enactment: 1. Food, Drugs and Cosmetics 11. Truthful Disclosure III. Credit, Banking, Credit Unions and Securities IV. Safety V. Motor Vehicles VI. Consumer Education Additionally, the 91st, 92nd and 93rd Congresses have enacted a number of other measures that are not directed primarily at consumer pro- tection, but, nonetheless, impact on consumers in such areas as health care, food, energy, privacy, environment, housing, welfare and antipoverty programs. The seventh section in this report includes: CRS-3 VII. Selected Other Laws Potentially Affecting Consumer Interests This compendium of Federal consumer protection laws includes those statutes which broke new ground or made substantive changes in previous law. The compendium does not, however, list appropriations, routine extensions (as in the case of required reports), or routine authorizations (containing no substantive changes) for previously passed legislation. What remains -— the new laws and amendments--is an impressive array of legislation from the 91st, 92nd and 93rd Congresses, showing the Federal Government extending the scope of consumer protection.‘_1"/ As in any summary of this kind which can devote only a paragraph or two to the description of each of several major new statutes or amendments to existing law,‘ there is always the risk that summarization might leave out significant points. The purpose of this survey, however, is to convey the overall scope of Federal consumer legislation in a given period, leaving it to the reader to consult the Public Law, U. S. Statutes, or U. S. Code for detailed information. Generally, the public law number, statute number, or, in some cases, the U.S. Code citation, are listed next to the title of the law that is being described. 1/ For the reader who wishes information on Federal legislation prior to 1969, — consult CRS report E 325, Summary of Major Federal Consumer Protection Laws, 1906 —- 1968. For more detailed information than is presented here on the Consumer Credit Protection Act of 1968, (including Truth-in-Lending), and its subsequent amendments, consult CRS report, 75-190, Consumer Credit: Federal Law1968-1974 and Legislation Proposed in the 94th Congress. CRS-4 1. Food, Drugs and Cosmetics In the li.ght of the numerous consumer protection laws passed by Con-— gress in the food, drug and cosmetic area from 1906 thru 1968, it is understand- able that this area experienced less legislative activity than some other areas of consumer protection from 1969 through 1974. Nonetheless, new or amended laws were written affecting egg products, drinking water, drugs and meat. A. Meat Inspection - Custom Slaughterin&Amendments (P. L. 91-342; 84 Stat. 438) This legislation amends the Federal Meat Inspection Act of 1907 (34 Stat. 1260), as previously amended by the Wholesome Meat Act of 1967 (P. L. 90-201; 81 Stat. 584). It exempts custom slaughterers» from provisions of the Federal meat inspection laws and thereby allows owners to slaughter and process their own animals for their own use, including domesticated animals (e.g. Cattle, swine, etc.) and game animals. Custom slaughtered animals must be marked "Not for Sale". It also allows custom slaughterers to conduct a separate business. buying and selling inspected meat and meat products, without losing their exemption under the Federal Meat Inspection Act. The U.S. Department of Agriculture administers the legislation. B. Egg Products Inspection Act (P.L. 91-597; 84 Stat. 1620) The enactment of the Egg Products Inspection Act continues the consumer protection pattern established earlier with the Wholesome Meat Act of 1967 and the Wholesome Poultry Products Act of 1968, reflecting growing congres- sional concern over safety of raw processed foods. This legislation provides "for CRS-5 the inspection of certain egg products by the U. S. Department of Agriculture; re- striction on the disposition of certain qualities of eggs; uniformity of standards for eggs in interstate or foreign commerce; and cooperation with State agencies in administration of this act." The legislation provides for continuous inspection of plants processing egg products for human consumption in order to eliminatethe risk of salmonella or other contamination. The Act also provides that no State or locality may require the use of standards of quality, condition, quantity or grade which are in addition to or different from the Federal standards, thereby assuring uniformity. The Act became effective on July 1, 1971, but subsequent minor legis- lation (Egg Products Inspection Exemptions, P.L. 92-67, 85 Stat. 173) delayed‘ certain effective dates to December 31, 1971. C. Dr1igListing Act of 1972 (P.L. 92-387; 86 Stat. 559) The drug listing legislation amends the Federal Food. Drug, and Cosmetic Act of 1938 (52 Stat. 1040) to require a current listing of each drug manu- factured, prepared, compounded or processed in the United States. Administered by the Food and Drug Administration (FDA) in the U. S. Department of Health, Education, and Welfare, the Act will give the agency a comprehensive list by es- tablished name and by proprietary name of all drugs being marketed in order to aid FDA in its enforcement of the drug safety provisions of the agency's primary legislation. The annual reporting requirements pertain to new drugs, to drugs that have been discontinued, to previously discontinued drugs again being marketed, and to any significant changes in previously submitted information. CRS-6 D. Safe Drinking Water Act (P. L. 93-523; 88 Stat. 1660) The primary purpose of this legislation is to ensure an adequate supply of safe drinking water. Regulatory responsibility for setting safe drink- ing water standards rests with the Environmental Protection Agency, although States have the primary enforcement responsibility for public water systems, provided that those systems meet Federal standards. The legislation also gives the Environment- al Protection Agency authority to deal with adequacy of supplies of chemicals nec- essary for water treatment; to take emergency measures in case of dangerous lev- els of contamination; to conduct research and to develop improved methods of as- suring safe drinking water; to make grants to States to carry out drinking water programs; to guarantee loans by private lenders to small public water systems; to establish a National Drinking Water Advisory Council; and, to permit citizen law suits in support of safe drinking water. CRS-7 II. Truthful Disclosure The Congress has continued to enact new laws and to strengthen others in the area of truthful disclosure of information that advocates of such laws say are needed by consumers for informed decision-making. Affirmative disclo- sure-type legislation was enacted affecting such diverse subjects as cigarettes, "little cigars", freedom of information,» gold and silver articles, real estate settlement procedures, interstate land sales, and warranties. The Federal Trade Commission and the U. S. Postal Service received new powers to deal with unfair or deceptive practices. In the name of promoting public health, the Congress also barred television and radio advertising of cigarettes and little cigars. The original Truth-in-Lending legislation of the late 1960s and other financial legislation have been so expanded by the Congress that they re- ceive separate treatment in this report. The next section (III. Credit, Banking, Credit Unions and Securities), therefore, deals with disclosure and other consumer protection activities in the financial area. Disclosure provisions affecting motor vehicles. are covered in this report in another section (V. Motor Vehicles). A. Public Health Cigarette Smoking Act of 1969 (P. L. 91-222; 84 Stat. 87) ' The link between cigarette smoking and diseases of the lung con- tinued to concern Congress. Effective January 1, 1971, the Public Health Cigarette Smoking Act bans the advertising of cigarettes on radio and television. The Federal Communications Commission enforces this provision. The legislation also changes the warning on cigarette packages from "Caution: Cigarette Smoking May Be Hazardous to Your Health" to "The CRS-8 Surgeon General Has Determined that Cigarette Smoking Is Dangerous to Your Health". The Act, which amends the Federal Cigarette Labeling and Adver- tising Act of 1965 (P.L. 89-92; 79 Stat. 282), gives the Federal Trade Commis- sion the authority to issue trade regulation rules affecting cigarette advertising and promotion, after formally notifying Congress of its intentions to undertake such action. Subsequently, the Federal Trade Commission has required that the new warning language on cigarette packages also be utilized in all print advertising for cigarettes, including newspapers, magazines, billboards and point-of-purchase displays. The Commission also established rules for location, size of type face, etc. in printed cigarette warnings. The legislation also preempts States from further regulation of cigarettes on the basis of smoking and health with respect to advertising and pro- motion. The U.S. Department of Health, Education and Welfare must re- port to the Congress annually on the health effects of cigarettes and make recom- mendations for legislation if necessary. The Federal Trade Commission must report to the Congress on the effectiveness of cigarette labeling, advertising and promotion regulations, and may suggest legislation. "Little cigars" were not covered by this legislation, but are in- cluded in subsequent legislation, the Little Cigar Act of 1973 (P.L. 93-109; 87 Stat. 352), described on page 10. CRS-9 B. Consumer Protection - Gold and Silver Articles Amendments (P.L. 91-366, 84 Stat. 690) This Act amends the National Gold and Silver Stamping Act of 1906 (34 Stat. 260, as amended; 15 U. S.C. §294 et seq.) to provide "a civil reme- dy for misrepresentation of the quality of articles composed in whole or in part of gold and silver." The legislation enables the customer who has purchased misrepresented goods or the competitor of a firm which supplied the misrepresent- ed goods to get an injunction against the practice and to sue for damages and for legal and court fees. Trade associations suing under the Act can obtain injunctive relief and, also, legal and court fees, but no damages. However, if the plaintiff bringing the action should fail to win the case, the defendant can sue to recover_ the defendant's cost of defending the suit (plus punitive damages, in special cir- cumstances). C. Mailing of Unordered Merchandise: Section 3009 of the Postal Reorganization Act (P. L. 9I—375; 84 Stat. 719) The legislation, which establishes» the U.S. Postal Service as a nonprofit public corporation, contains section 3009, which declares that the mail- ing of unordered merchandise constitutes an unfair trade practice. An exception is made for clearly marked free samples and for merchandise sent by a charitable organization soliciting contributions. If a consumer should receive unordered mer- chandise, the consumer can treat it as a gift and can retain, use, discard or dis- pose of it in any manner seen fit without any obligation to pay for it. Any un- ordered merchandise must have attached to it a clear and conspicuous statement informing the recipient to this effect. Consumers can not be billed or dunned for unordered merchandise. CRS—1O D. Little Cigar Act of 1973 (P. L. 93-109; 87 Stat. 352) The Little Cigar Act of 1973 amends the Federal Cigarette La- beling and Advertising Act of 1965 (P.L. 89-92; 79 Stat. 282), as amended by the Public Health Cigarette Smoking Act of 1969 (P.L. 91-222, 84 Stat. 87 [see pages 7-8] to bring "little cigars" within the definition of those Acts. The Act bars the advertising of "little cigars" on radio and television and requires warn- ings on the packages. The Federal Trade Commission has subsequently required that the language of the warning appear in all printed advertisements in newspapers, magazines, billboards, and point-of-sale displays. The warning on packages and in advertisements must read: "The Surgeon General Has Determined that Cigarette Smoking ls Dangerous to Your Health". In addition to the Federal Trade Commission enforcement, the legislation is also enforced by the Federal Communications Commission and the U.S. Department of Health, Education and Welfare. E. Federal Trade Commission Authority : Title IV, Section 408 of Trans-Alaska Pipeline Authorization Act (P. L. 93-153; 87 Stat. 576) Section 408 in title IV of the Trans-Alaska Pipeline Authoriza- tion Act contains a significant addition to the already Considerable enforcement au- thority of the Federal Trade Commission (FTC). Section 408 strengthens en- forcement of the laws administered by the FTC by giving the Commission statu- tory authority to enforce directly subpenas issued by the Commission and to seek preliminary injunctive relief against unfair competitive practices. CRS-11 Section 408 also gives the Federal Trade Commission power to initiate, prosecute, defend, or appeal any court action in the name of the Commis- sion for the purpose of enforcing the laws subject to FTC jurisdiction through its own legal representative, after formally notifying, consulting with and giving the Attorney General 10 days to take the action proposed by the Commission. [The balance of P. L. 93-153 deals with pipeline rights-of-way in general and authorization of the Trans-Alaska Pipeline in particular as well as other matters and does not involve consumer matters. ] F. Amendments to the Interstate Land Sales Full Disclosure Act: Title VIII of the Housing and Community Development Act of 3) T o give purchasers added protection from unscrupulous land deve- lopers, a section within title VIII of the Housing and Community Development Act of 1974 amends three sections of the Interstate Land Sales Full Disclosure Act- The original 1968 Interstate Land Sales Full Disclosure Act was, in reality, title XIV of the Housing and Urban Development Act of 1968 (P. L. 90-448; 82 Stat. 476). The amendment gives the consumer the right to void a contract for a parcel of land within three business days after signing (instead of the 48-hour period previously in the law) if the consumer receives the property report less than 48 hours before signing. A provision permitting the purchaser to waive his revocation right if he signed a statement that he had inspected his lot and read and understood the property report was deleted from the earlier law. The Interstate Land Sales Full Disclosure Act now clearly applies to transactions involving communications between parties in the United States and a foreign country. CRS-12 The sale or lease of real estate in governmentally—zoned indus- trial or commercial developments is exempted from the requirements of the Inter- state Land Sales Full Disclosure Act in those cases where stringent requirements are met. For further details on the Housing and Community Development Act of 1974, see pages 25-27, 40-41, and 58-59. G. Freedom of Information Act Amendments (P. L. 93-502; 88 Stat. 1561) The Freedom of Information Act plays an important role in fa- cilitating the representation of consumer interests before the legislative, executive, regulatory and judicial arms of the Federal Government. The Freedom of Infor- mation Act Amendments,enacted in 1974, strengthen the earlier legislation, the Freedom of Information Act of 1966 (P. L. 89-487; 80 Stat. 250), by requiring Government agencies to publish indexes, which identify information available to the public on any matter issued, adopted or promulgated by the executive and re- gulatory agencies after July 4, 1967, and to assure that the information requested by the public is promptly available. The Amendments also require agencies to set a uniform schedule of reasonable fees for document search and duplication, and spell out procedures for judicial review when documents or records are withheld. The Amendments were vetoed by the President Ford but the veto was overriden by the Congress. CRS-13 H. Real Estate Settlement Procedures Act of 1974 (P. L. 93-533; 38 Stat. 1724) To assist consumers in purchasing property such as a home, the Real Estate Settlement Procedures Act directs the U. S. Department of Housing and Urban Development (HUD), in consultation with the Veterans Administration, the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board, to develop and prescribe an extensive standard form for real estate transactions, including a clear itemized listing of settlement charges, to be used in all real estate settlements involving federally related mortgage loans at the time of loan commitment and furnished to purchasers not less thantwelve days before settlement. The legislation directs HUD to conduct a public information pro- gram to help persons who borrow money to finance a home to understand better the nature and costs of real estate settlement services. The Act puts limits on the handling of escrow accounts used to assure payment of taxes and insurance premiums on property. It bars kickbacks or referral fees. The Act also instructs HUD to establish a demonstration model for the recording of land parcels, to facilitate, simplify and reduce the cost of land transfers and mortgage transactions, 1. Magnuson-Moss Warranty - Federal Trade Commission Im- provement Act (P. L. 93-637; 88 Stat. 2183) This legislation covers two broad areas of consumer protection: setting minimum standards for product warranties, and strengthening the powers of the Federal Trade Commission to deal with unfair or deceptive practices. CRS~14 Title I : Consumer Product Warranties This title provides that any supplier warranting in writing a con- sumer product costing more than $5. 00 must fully and conspicuously disclose the terms and conditions of the warranty in simple and easily understood language. Warranties for products costing $10. 00 or more must show if the warranty is "full" or "limited". Suppliers are not required to issue warranties, but if they issue warranties, the warranties must conform to the Act. Warranties, if given, must be available to the consumer for inspection prior to the sale of the product. The legislation limits the circumstances under which the guarantor may condition his warranty‘ or the supplier may disclaim or modify any implied warranty. The Act sets minimum guidelines for law suits brought under title 1: Minimum individual claims must have a value of $25; class actions must involve disputes with at least $50, 000 in aggregate value and must involve at least 100 plaintiffs. The Federal Trade Commission can set minimum standards for consumer remedies for fully warranted products, which will allow the buyer to demand and receive a replacement or refund if the original product failed to perform and the purchaser had made a "reasonable" number of efforts to have it repaired. The Act also encourages the development of informal dispute settlement mechanisms (i. e. arbitration). Title II : Federal Trade Commission Improvements This title is designed to clarify and strengthen the powers of the Federal Trade Commission (15 U. S.C. §41, et seq.) to make trade rules which define acts or practices "in or affecting commerce" which are unfair or deceptive. The title sets forth procedures to be followed by the Commission in its rulemaking. It allows the Commission to conduct investigations of persons and partnerships as well as corporations. It prescribes new civil penalties which the Commission may seek to impose for violations of its rules, and spells out the conditions in which the Commission may commence, defend, or intervene in civil actions involving the Federal Trade Commission. In order to prevent banks from engaging in unfair or deceptive acts or practices "in or affecting commerce", title II instructs the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (depending upon the type of bank as defined in the Act) to take appropriate action with respect to unfair or deceptive practices. - The Board of Governors of the Federal Reserve System, acting for the three above- listed bank-supervisory agencies, has responsibility for issuing regulations, par- alleling those issued by the Federal Trade Commission. Each of these bank-super- visory agencies is also instructed to set up and maintain a separate division of consumer affairs. CRS-16 111. Credit, Banking, Credit Unions and Securities Consumer credit, banking practices, credit union operationsand the securities industry have been subjects of intense congressional interest from 1969 thru 1974, as reflected in the enactment of several new laws and major a- mendments to existing laws. The Consumer Credit Protection Act of 1968 (with its Title I: The Truth-in-Lending Act) has been greatly expanded and now includes coverage of credit cards, credit bureaus, billing practices, and non-discrimination in extension of credit. Deposit insurance to protect accounts in federally insur- ed depository institutions (i.e. banks, savings and loan institutions, and credit unions) has been increased. There is new or additional protection for securities and mutual fund investors. Credit union operations have been given more flexibility in serving their members. The District of Columbia, for which the Congress legis- lates, received new authority to deal with consumer credit abuses. A. National Credit Union Administration Amendments to the Federal Credit Union Act (P. L. 91-206; 34 Stat 49) Credit unions are a form of consumer-cooperative; they hold bil- lions of dollars in shares (the credit union term for "deposit") and in loans. Most credit unions are organized around a place of employment, a community or a reli- gious institution; credit unions are owned by their "shareholders". P.L. 91-206 amends the Federal Credit Union Act of 1934 (P.L. 467; 48 Stat. 1216 as amended; 12 U. S. C. §1751 et. seq. ) in order to establish the National Credit Union Adminis- tration (NCUA), an independent agency, to supervise the 12,823 federally char- tered credit unionsly Previously, federally chartered credit unions had been su- pervised by the Bureau of Federal Credit Unions in the U. S. Department of Health, 1/ Education and Welfare. There are also 10, 036 State-chartered credit unions?" super- __1_/ Credit union figures are given as of August 1975. CRS-17 vised by State authorities. Title VII of the Housing and Community Development Act (P.L. 93-383; 88 Stat. 633) contains some technical amendments to P. L. 91-206. These are described in this report on page 26. B. District of Columbia - Debt Adjusting Act (P. L. 91-266; 84 Stat. 264) Debt adjusting has often been a source of problems for unwary consumers. P. L. 91-266 "prohibits the business of debt adjusting in the District of Columbia except as [incidental] to the lawful practice of law or as an activity engaged in by a nonprofit corporation or association". There is no comparable Federal law. Other terms, often synonymous for debt adjusting, include "budget counseling", "budget planning", "credit advising", "debt counseling", "financial arranging", or "prorating". C . Bankruptcy Act Amendments (P. L. 91-467; 84 Stat. 990) P.L. 91-467 amends sections 2, 14, 15, 17, 38 and 58 of the Bankruptcy Act (30 Stat. 554, as amended; 11 U. S.C. §l, et seq. ), to clarify exist- ing case law so as to permit the discharge of debts in a later proceeding even after there had been a denial of discharge for specified reasons in an earlier pro- ceeding. It authorizes courts of bankruptcy to determine the dischargeability or non-dischargeability of provable debts. It also provides additional grounds [e.g. fraud] for revoking an earlier bankruptcy discharge. Before passage of this Act, creditors were permitted tobring suit in State courts after a discharge in bankruptcy had been received in a Federal court. Many creditors did so in the hope that debtor would fail to appear in that action. Debtors often relied on the assumption that the Federal bankruptcy action discharged all obligations. However, if the debtor failed to appear in State court, a default judgment might result, and his wages or property might be subjected to garnishment. This new legislation would make null and void any subsequent judgment obtained in any other court regarding debts CRS-18 discharged by the bankruptcy court, once a debtor has obtained a discharge of debts under the Bankruptcy Act. D. Share Insurance Amendment to the Federal Credit Union Act (P.L. 91 -468; 84 Stat. 994) Following the pattern of insured accounts previously established for banks under the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation, the credit union share insurance amendment to the Federal Credit Union Act establishes a comparable program for all federally chartered credit unions and those State-chartered credit unions wishing to participate, "Share" accounts in the credit unions covered by the program were originally insured to $20, 000 per account. This has subsequently been raised to $40, 000 per account, under title I, section 104 of the Depository Institutions Amendments (P. L. 93-495, 88 Stat. 1500), described later in this report (page 27). During a transition period (which has since expired), if a Federal credit union was rejected for share insurance by the National Credit Union Ad- ministration because it failed to meet the requirements for insurance, the credit union was allowed a one-year period in which to correct any deficiencies, or face suspension or revocation of its charter. If the charter was terminated, credit union members received back their shares (i. e. deposits). Subsequent legislation (P.L. 92-221; 85 Stat. 795) extended the transition period deadline from one year to three years, in certain cases, with temporary share insurance being provided until the credit union qualified for per- manent insurance or its charter was terminated. This provision has since also ex- pired. The credit union share insurance, paid to shareholders in case of the insolvency of their credit union, comes from a fund resulting from a small percentage charged on credit union deposits, after the manner of the FDIC and FSLIC programs. CRS-19 E. Bank Records and Foreign Transactions [and Certain Consumer Credit Matters] (P.L. 91-508; 84 Stat. 1114) This legislation contains two major titles affecting the consumer credit area. One title expands Truth-in-Lending Act coverage into the credit card area; the other adds a new title to the Consumer Credit Protection Act of 1968, affecting consumer credit reporting activities. Title V: Unsolicited Credit Cards; Limiting Liability from Loss . or Theftof Cards Title V amends the Truth-in-Lending Act (which is title I of the Consumer Credit Protection Act of 1968, P.L. 90-321; 82 Stat. 146). Title V relates to three broad areas of credit card “operations: the consumer's liability for lost or stolen cards; the prohibition against mailing of unsolicited credit cards; and penalties for use of stolen or fraudulent cards. First, the title provides that the liability of a credit cardholder is limited to $50 maximum for each lost or stolen credit card. The cardholder may further reduce the potential liability by prompt notification of the card issuer, since liability even to the extent of $50 per card appliesto unauthorized use be- fore the Cardholder notifies the card issuer Of the loss or theft of the card. Card- holders must be given self—addressed, prestamped notification forms for each cred- it card, to be mailed by the cardholder in case of loss or theft. Second, the legislation bans the mailing or distribution of unsoli- . cited credit cards, that is, credit cards furnished without prior request by the potential card holder. The liability of $50 applies only to cards requested and A accepted by the consumer. CRS-20 Third, the legislation established a maximum fine of $10, 000 and a maximum prison term of five years, for the use of any counterfeit, fictitious, altered, forged, lost, stolen or fraudulently obtained credit card to obtain goods or services, with a value totalling $5000 or more. The Federal Reserve has the responsibility for developing the regulations regarding credit cards for those credit card~issuing financial institu- tions supervised by the following Federal agencies: the Federal Reserve (for mem- ber banks), the Federal Deposit Insurance Corporation (for federally insured banks), the Federal Home Loan Bank Board (for federally chartered or insured savings and loan institutions), the National Credit Union Administration (for federally chartered or insured credit unions), the Civil Aeronautics Board (for air credit cards), the Department of Agriculture (for firms subject to the Packers and Stockyard Act), the Farm Credit Administration (for Federal land banks, Federal land bank asso- ciations, Federal intermediate credit banks, or production credit associations), and the Comptroller of the Currency (for national banks). The Federal Trade Com- mission has Federal enforcement responsibility for other grantors of credit cards such as retailers and credit card issuers not listed above (i. e. Diners Club, gaso- line companies). Title VI: Fair Credit Reporting Act Title VI of the Amendments to the Federal Deposit Insurance Act became Title VI of the Consumer Credit Protection Act of 1968 (P.L. 90-321; 82 Stat. 146). Known as the Fair Credit Reporting Act, this title is aimed at pre- venting and/or correcting misinformation about individual consumers as contained in the files of consumer reporting agencies, including consumer credit reporting bureaus. The objective is to prevent inadvertent or intentional damage to the reputation, insurability, employability, or credit rating of a consumer, while CRS-21 assuring continuing legitimate access to such information by those companies, or- ganizations and agencies with a proper need to know such information. Reports on consumers are used: (1) by credit extenders (i. e. retailers, banks, credit card companies). (2) by insurance companies issuing poli- cies, (3) by employers in the hiring of prospective employees, (4) by government agencies issuing licenses, and (5) for other legitimate business uses requiring in- formation in connection with a transaction involving the consumer. Consumer re- porting agencies are only allowed to issue consumer credit and othe 7 reports for these five general uses and no other. The Fair Credit Reporting Actis enforced by the same Federal agencies that enforce the Consumer Credit Protection Act, as listed above in the discussion on credit cards. In reality, it is the Federal Trade Commission that has the principal enforcement responsibility for Federal supervision of consumer reporting agencies, including consumer credit reporting bureaus. The Fair Credit ReportingAct spells out in great detail the manner in which consumer reporting agencies must protect consumers. Among its many provisions, the Act limits the duration of time in which adverse information can be retained in the file. It sets forth conditions under which consumer reports may be issued. It establishes procedures for notifying consumers when adverse in- formation has been given out by the consumer reporting agency. It provides mechanisms through which individual consumers can challenge, correct, or just merely learn what is contained in their consumer file, while preserving and protecting the anonymity of those who have supplied information to the consumer reporting bureau. The Fair Credit Reporting Act also establishes procedures so that there can be notification of those who may have previously re- ceived incorrect or challenged reports. The Act establishes civil and criminal penalties for failure of consumer reporting bureaus to comply with the Act. CRS-22 By giving consumers limited access to their consumer report files, consumers can correct misinformation or enter into the files explanatory or exculpatory information. While the agency must disclose, with certain excep- tions, the general "nature and substance" of what is contained in the file, the disclosure may be verbal in character. A consumer is not guaranteed the right to see, handle, or copy the file. Since some States also regulate consumer reporting agencies, the Federal provisions of the Fair Credit Reporting Act stand side-by-side with State law. Federal provisions do not preempt State provisions unless the Federal and State‘ provisions are inconsistent, in which case the Federal provisions preempt the States only in the area of the inconsistency. F. Investment Company Amendments Act of 1970 (P. L. 91-547; 84 Stat. 1413) These amendments revise the Investment Company Act of 1940 (54 Stat. 789 as amended; 15 U. S.C. §80a et.seq.) and the Investment Advisors Act of 1940 (54 Stat. 847 as amended; 15 U.S.C. §80b et. seq. 0), regulating mutual funds in which many consumers invest. Among its many provisions, the Act deals with investment company management fees, mutual fund sales commissions, and periodic payment or contractual plan sales commissions. Thus, it regulates front- end load charges in mutual funds and provides a refund period for front-end load plans if shareholders sell their mutual shares. It permits banks and savings and loan institutions to operate and manage commingled accounts in competition with mutual funds. It deals with the fiduciary duty of the investment adviser or mutual fund management company. The legislation comes under the jurisdiction of the Securities and Exchange Commission. CRS-23 G. Investor Protection Amendments to Securities Exchange Act of 1934 (P.L. 91-567; 84 Stat. 1497) Among its provisions, this Investor Protection Amendment to the Securities Exchange Act of 1934 (48 Stat. 881; 15 U.S.C. §77—78) and to the Securi- ties Act of 1933 (48 Stat. 74, as amended; 15 U.S.C. §77) broadens the Securities and Exchange Commission's powers to deal with corporate takeover bids. It gives the Securities and Exchange Commission enhanced rulemaking power with respect to fraudulent, deceptive and manipulative activities made in connection with a tender of offer. Thenew Act also requires that anyone acquiring as much as 5 percent of a company's stock must comply with the disclosure requirements of the Corporate Takeover Act (P. L. 90-439; 82 Stat. 454). The amending legislation also extends the protection of the Cor-' porate Takeover Act to shareholders of publicly held insurance companies. H. Securities Investor Protection Act of 1970 (P. L. 91-598; 84 Stat. 1636) Prompted by fears of business failure in securities firms, this legislation "provide[s] greater protection for customers of brokers and dealers and members of national securities exchanges". The Act ‘establishes the Securities Investor Protection Corporation (SIPC) as a non—Government, nonprofit corporation to protect investors if the broker/ dealer with whom they have been transacting business fails in business. The legislation is patterned after the general con- cept of the Federal Deposit Insurance Corporation and Federal Savings and Loan Insurance Corporation. The Act establishes an insurance fund to be used to enable the public customers, in the event of the financial insolvency of their broker, to recover the stock or money, or both, to which they are entitled, with an overall limitation of $50,000 for each customer's recovery. The legislation also directs that the Securities and Exchange Commission, regulator of the securities industry, C RS-24 require a general upgrading of financial responsibility of brokers and dealers in order to reduce or eliminate the risks of customer loss from brokerl dealer failures. I. District of Columbia Consumer Credit Protection Act of 1971 (P.L. 92-200; 85 Stat. 665) This Act amends certain provisions of subtitle II of title 28 of the District of Columbia Code, relating to interest charges and usury. Among its numerous provisions, the legislation sets maximum interest rates on a variety of loans including unsecured loans, auto installment loans, and revolving credit ac- counts. The Act also prohibits a creditor in a consumer credit sale or direct in— stallment loan from taking an assignment of earnings for payment or as security for payment of an obligation under a sale or loan. The Act bars a creditor from taking a warrant or power of attorney or other authorization to "confess judgment" for such an obligation. The Act bars referral sales schemes, and allows buyers a three-day cooling-off period on door-to-door sales contracts. The Act also re- quires refunding of most of the unearned portion of finance chargesprepaid on in— stallment loans. The legislation regulates debt collection practices in general, with special attention to abusive practices. It also regulates the repossession of goods for non—payment of debts, with special references to "deficiency judgments". This legislation is all the more significant because it covers a number of consumer credit problem areas that are traditionally regulated by the States and that had not yet been covered by national Federal law as of the close of the 93rd Congress. However, this congressional1y—passed District of Columbia credit legislation could be indicative of new avenues for future Federal legislation. CRS-25 J. : Title III, Section 306; Title VI, Part C; and Title VIII, Section 808 of the Housirg and Community Development Act of 1974 (P. L. 93-383; 88 Stat. 633) This legislation contains three amendments in the credit area. The first pertains to correction of defects in certain homes with federally insured mort- gages; the second affects operation of Federal credit unions; the third prohibits sex discrimination in the extension of mortgage assistance. Title III, Section 306: Amendment to the Correction of Defects in Existing Homes Provision, Section 5l8b of Title V of the Na- tional Housing Act To provide protection for certain consumers who are victims of shoddy construction in homes with mortgages insured under three FHA programs, ‘ section 306 in title III of the Housing and Community Development Act contains a provision which authorizes the U. S. Department of Housing and Urban Develop- ment to correct at Government cost those defects which (1) existed at the time of insurance commitment (during the period August 1, 1968 - January 1, 1973); (2) are of a nature which proper FHA inspection could reasonably have been expected to disclose; (3) are in a house located in an older, declining urban area; (4) create a serious danger to the life and safety of the inhabitants; and (5) fall under the Section 235 (home ownership subsidy) program, the Section 203 (regular non-subsidy single-family) program, or the Section 221 (new or rehabilitated homes for low or moderate income families) program. This "correction of defects" provision was due to expire on August 22, 1975, but was extended in subsequent legislation to March 22, 1976. This legislation amends and extends and, in some cases, limits coverage originally introduced in the Correction of Defects in Existing Homes Pro- vision, Title I, section 104 of the Housing and Urban Development Act of 1970 (P.L. 91-609; 84 Stat. 1770), which in turn amended the National Housing Act (12 U. S.C. §1701, et. seq.). CRS-26 Title VII, Part C: Amendments to the Federal Credit Union Act This omnibus housing and community development legislation con- tains several technical amendments in Part C of title VII affecting Federal credit unions. These amendments to the Federal Credit Union Act (48 Stat. 1216, as amended) affect operating procedures and somewhat liberalize lending requirements. Among the areas affected are: loans to credit union officials; allowing foreign sub-offices of U. S. Federal credit unions to maintain demand deposits in foreign banks; procedures for voluntary liquidation of solvent Federal credit unions; and several other matters. Title VIII, Section 808: Prohibition against Discrimination on Accou_nt__ of Sex inTIxtension of Mortgag: Assistance Amendments. Section 808 of title VIII of the Housing and Community Develop- ment Act recognizes the rights of women in the credit area by barring discrimina- tion on the basis of sex in the making of any federally related mortgage loan. Federal insurance guaranty or related assistance under this or any other act in- volved in the purchase or rental of housing. Section 808 subjects violators to fines or imprisonment. Mortgage lenders are required to consider without prejudice the combined incomes of both husband and wife in making federally related mortgage loans to a married couple or either member of a married couple. The legislation amends title V of the National Housing Act of 1934 and sections 804, 805, 806 and 901 of the Civil Rights Act of 1968. CRS-27 g g This section roughly parallels the provisions pertaining to con- sumer credit contained in the Equal Credit Opportunity Act, title V of the Deposi- tory Institutions Amendments (P.L. 93-495; 88 Stat. 1500), described later on page 30. For further details on the Housing and Community Development Act of 1974, See pages 011-12, 40-41, and 58-59. K. Depository Institutions Amendments (P. L. 93-495; 88 Stat. 1500) The Depository Institutions Amendments contain several titles of importance to consumers, including increased deposit insurance, fair billing prac- tices, and nondiscrimination in the granting of consumer credit. It expands the Federal role in the regulation of consumer credit transactions. Title I : Amendments to and Extension of Provisions of Law Relati_n_g_ to Federal Rjilation of Depository Institutions Included in this title are amendments which increase deposit in- surance from $20, 000 to $40, 000 for accounts in banks, savings and loan institu- tions, and credit unions insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, and the National Credit Union Administration. With reference to State regulation of credit unions, this title pro- vides that no rule, regulation or order by the Federal Home L031? Bank B0ard. the Comptroller of the Currency or the National Credit Union Administration can prevent or exempt Federal credit unions from complying with any State law or regulation which protects borrowers by limiting the terms and conditions of a mortgage loan or consumer credit contract. CRS-28 Other parts of this title include a test program for conversion of mutual savings and loan associations to stock savings and loan associations. Title II : National Commission on Electronic Fund Transfers This title establishes the National Commission on Electronic Fund Transfers to study and recommend administrative actions and legislation necessary for establishing and regulating public or private electronic fund transfer systems (EFTS), including such considerations as competition among financial institutions; user and consumer privacy; the impact on monetary and economic policy; and the effect on the availability of credit. Title 111 : Fair Credit Billing Act Title III amends the Truth-in-Lending Act (title I of the Consum- er Credit Protection Act of 1968 (P.L. 90-321; 80 Stat. 246)). by adding the Fair Credit Billing Act as chapter 4. The Fair Credit Billing Act deals with the handling of billing errors, regulates billing practices, bars certain anti—competitive practices of the credit card industry, and increases the rights of credit cardholders. The billing error provisions of the Fair Credit Billing Act re- quire: prompt (30 days or less) acknowledgement of inquiries of customers re- garding billing errors; resolution of the dispute in 90 days or less; and prohibition against making a bad credit report on a customer or reporting the amount as delinquent, when the matter of the billing error is in dispute. The Act also pro- hibits notification of consumer credit reporting agencies that a customer is in arrears without telling that the amount is in dispute and without telling the customer that a report is being sent to the consumer credit reporting agency. The legislation CRS-29 requires notification to a credit reporting agency if there is subsequent settlement of the disputed amount. Customers must be regularly told where to register billing complaints and what their rights are. The Act imposes penalties for creditors who fail to comply with the Act. The general billing practice provisions of the Fair Credit Billing Act require that bills be mailed at least 14 days before the payment due date when a finance charge can be applied. No finance charge is permitted if payment is re- ceived before the due date. The creditor must promptly credit to the customer any excess payment over the required amount or must promptly refund the over- payinent. With respect to anti—competitive practices, the Fair Credit Bi1l- , ing Act bars financial institutions from taking an unpaid credit card bill out of a customer's checking or savings accounts without court order. Credit card issuers may not bar discounts for cash. Under certain conditions, the customer has a right to deny payment to a third party (such as a bank credit card issuer) if the merchant has sold defective merchandise, which has the effect of altering thereby the "holder-in-due-course" doctrine in consumer credit card transactions. The Federal Reserve has responsibility for developing the reg- ulations regarding billing practices for those financial institutions supervised by the following Federal agencies: the Federal Reserve (for member banks), the Federal Deposit Insurance Corporation (for federally insured banks), the Federal Home Loan Bank Board (for federally chartered or insured savings and loan in- stitutions), the National Credit Union Administration (for federally chartered or insured credit unions), the Civil Aeronautics Board (for air credit cards), the Department of Agriculture (for firms subject to the Packers and Stockyard Act), CRS-30 the Farm Credit Administration (for Federal land banks, Federal land bank asso- ciations, Federal intermediate credit banks,or production credit associations), and . the Comptroller of the Currency (for national banks). The Federal Trade Com- mission has Federal enforcement responsibility for other grantors of credit such as retailers and others not listed above (i. e. Diners Club, gasoline companies, State-chartered credit unions, etc. ) Some States already have State "fair billing practice" laws. There are provisions in the Federal legislation to reconcile Federal and State bill- ing practice laws as to which takes precedence. Title IV : Amendments to the Truth—in-Lending Act This title made a number of amendments to title I of the Con- sumer Credit Protection Act of 1968 (Truth—in-Lending). The title increases the penalties for fraudulent use of credit cards to $10,000 fine or 10 years in prison; it exempts from the Truth—in-Lending Act any agricultural credit transactions over $25, 000. It distinguishes individual suits from class actions. It allows a maximum recovery of the lesser of $100,000 or one percent of the creditor's worth in a class action. It requires certain credit advertising disclosures for purchases involv- ing four or more installments. Title V : Equal Credit Opportunity Act Title V amends the Consumer Credit Protection Act of 1968 by adding the Equal Credit Opportunity Act as title VII, making it illegal for finan- cial institutions and others engaged in the extension of credit to discriminate in the granting of credit on the basis of sex or marital status. The Federal Reserve has responsibility for preparing the regulations for the same Federal enforcement CRS-31 agencies mentioned in "the Fair Credit Billing section above (pages 28-30), as well as for the Securities and Exchange Commission and the Small Business Admini- stration and the Interstate Commerce Commission. The Equal Opportunity Act also bars State laws that discriminate in the granting of‘ credit on the basis of sex or marital status. There are civil penalties for non-compliance by credit grantors, allowing individual action for dam- ages up to $10,000 and class actions up to the lesser of $100,000 or one percent of the creditor's net worth. Title VI : Disposition of Abandoned Money Orders and Traveler's Checks In cases where money orders and trave'ler's checks are purchased but not redeemed; this title sets forth procedures for States to take custody of the funds. CRS-32 IV. __S__§_e_t_v The safety of consumers continued to be a matter of great interest to the Congress, as reflected in the enactment of several new safety laws from 1969 thru 1974 in such areas as household products, boats, lead-based paints, toys, poison prevention packaging, mobile homes and fire prevention. The Consum- er Product Safety Act of 1972 established a new independent regulatory commission, the Consumer Product Safety Commission. Other legislation established the National Fire Prevention and Control Administration as a new agency within the U. S. Depart- ment of Commerce. Motor vehicle safety is covered in the ‘next section of this re- port. A. Child Protection and Toy Safety Act of 1969 (P.L. 91-113; 83 Stat. 187) To encourage the manufacture of safe toys and other articles for children, this legislation extends the provisions of the Federal Hazardous Substances Act (P.L. 86-313, as amended; 15 U. S.C. §1261 et seq.) to any toy Or article intended for use by children, which is found to present an electrical, mechanical, or thermal hazard. This authority can involve the recall, the banning. the rede- signing or the proper labeling of items that are found to be hazardous under provi- sions of the Act. Initially, responsibility for administration of the Act rested with the U.S. Department of Health, Education and Welfare. With the enactment of the Consumer Product Safety Act of 1972 (P.L. 92-573; 86 Stat. 1207). described later, responsibility for enforcement passed to the Consumer Product Safety Com- mission. CRS-33 B. Poison Prevention Packaging Act of 1970 (P. L. 91-601; 84 Stat. 1670) The Act requires the use of special packaging and labeling to pro- tect children from serious personal injury, serious illness or death from handling, using, or ingesting potentially dangerous substances such as cleaning detergents. polishes, prescription and over-the-counter drugs, cosmetics and pesticides com- monly used about the home. The following Federal laws were revised to come in- to compliance with the Poison Prevention Packaging Act: the Federal Hazardous Substances Act; the Federal Insecticide, Fungicide, and Rodenticide Act; and the Federal Food, Drug and Cosmetic Act. The new legislation also preempts the States and localities in the area of poison prevention packaging and related labeling. if State and local requirements are not identical to the Federal requirements. The main thrust of the legislation is the development of child- proof packaging that cannot be opened by small children, who cannot read the warnings which are also required on potentially hazardous household poisons . The Act contains some exceptions so that the elderly or the handicapped can get certain substances without the protective, hard-to-open, packaging. The Act establishes a Poison Prevention Packaging Technical Ad- visory Committee, with which the agency must consult in making findings and pro- mulgating regulations. The statute was originally assigned to the U.S. Department of Health, Education and Welfare; however, the Consumer Product Safety Commission inherited primary responsibility for administration of the Act, with the passage of the Consumer Product Safety Act of 1972 (P.L. 92-573; 86 Stat. 1207). described CRS-34 later in this report. The Act also affects the regulatory responsibilities of the Food and Drug Administration in the U. S. Department of Health, Educationand Welfare as well as those of the Environmental Protection Agency. C. Lead-Based Paint Poisoning Prevention Act (P.L. 91-695; 84 Stat. 2073) Lead, long used as an ingredient in paint, constitutes a danger to public health. If ingested, for example, by a small child, it can cause brain damage and even death. Historically, lead—based paints were used on a wide range of household items from pencils and toys to walls. The Lead-Based Poisoning Pre- vention Act aims at providing "Federal financial assistance to help cities and com- munities to develop and carry out intensive local programs to eliminate the causes of lead-based paint poisoning, and local programs to detect and treat incidents of such poisoning, to establish a Federal demonstration and research program to study the extent of the lead-based paint poisoning problem and the methods avail- able for lead-based paint removal, and to prohibit future use of lead-based paint in Federal or federally assisted construction or rehabilitated" property. The Act provides for the systematic examination of children to determine the lead content in blood levels, and for corrective treatment. Responsibility for administration of the legislation rests with the U. S. Department of Health, Education and Welfare, the Consumer Product Safety Commission, and the U. S. Department of Housing and Urban Development. See pages 38-39 for the Lead-Based Paint Poisoning Prevention Amendments (P.L. 93-151; 87 Stat. 560), which broadens the scope of this earlier legislation. D. Federal Boat Safety Act of 1971 (P. L. 92-75; 85 Stat. 213) The Federal Boat Safety Act aims at developing a "coordinated national boating safety program" for boats used principally for pleasure rather than commercial purposes. Administered by the Coast Guard in the U. S. Depart- ment of Transportation, the Federal Boat Safety Act requires: regulations establish- ing minimum safety standards for boats and associated equipment, testing of boats and equipment for conformity with regulations, mandatory use of safety equipment on boats, and utilization of a standard license numbering system for vessels. The definition of equipment includes: fuel systems, ventilation systems, electrical sys- tems, navigational lights, sound producing devices, fire fighting equipment, life- saving devices, signaling devices, ground tackle, grab rails and navigational equip- ment. The Act bars the importation of non-conforming boats and equipment. Manu- facturers must maintain appropriate records and notify the Government if defects are uncovered. The law encourages Federal-State cooperation in boating safety programs. including Federal funding assistance to the States for such programs. The Federal Government can also provide funding assistance to national nonprofit Public Se1‘ViCe Organizations dedicated to national boating safety programs and ac- tivities. The Act also establishes a National Boating Safety Advisory Council. E. Youth Camp Safety Investi ation: Title VII of Education Amend- ments of 1972 (P.L. 92-3 8; 86 Stat. 235) Title VI of the Education Amendments of 1972 required that the U. S. Department of Health, Education and Welfare conduct an Investigation of Youth Camp Safety and report back to the Congress by March 1, 1973, on the need for legislation providing youth camp safety standards to be administered by the U. S. Department of Health, Education and Welfare. This omnibus education law also contains consumer education pro- visions of interest to consumers (see pages 47-48). CRS-36 F. Consumer Product Safety Act (P.L. 92-573; 86 Stat. 1207) Enactment of the Consumer Product Safety Act and the resulting establishment of the Consumer Product Safety Commission, an independent regu- latory agency, represents one of the most important and comprehensive consum- er protection actions by the Congress since the enactment of the Federal Food, Drug and Cosmetic Act of 1938. The Consumer Product Safety Commission (CPSC) has responsibility for the safety of the numerous products used around the home, school, yard, and playground. The Commission has no jurisdiction over motor vehicles, air- craft, pesticides, boats, firearms, tobacco products, foods, drugs, and cosmetics, all of which are subject to other Federal laws. Nonetheless, this still leaves the vast majority of consumer products subject to the Consumer Product Safety Act. The Commission and its authority are an outgrowth of the recom- mendations of the National Commission on Product Safety (P.L. 90-146; 81 Stat. 466). The legislation provides for the development of consumer safety standards, whenever the CPSC determines that an unreasonable risk of injury exists. A consumer product safety standard must include specification for one or more of the following elements: performance, composition, contents, design, construction, finish, packaging, warnings, instructions. The Commission must first invite various groups (business, con- sumer, universities, etc.) to develop the needed product safety standard for a given product. If the CPSC finds that no offerors of standards meet the need, then the Commission can develop its own standard. The Commission can provide funding to an offeror, such as a consumer group, if it is necessary to develop a product safety standard. CRS-37 If the Commission should find that a product represents an "im— minent hazard", it can seize the product, subject to judicial safeguards. How- ever, if the CPSC finds that a product represents a "substantial hazard" (a lesser "imminent hazard"), the Commission can apply a number degree of hazard than an of remedies at its disposal, including public notice of defect, recall, repair, re- placement, or refund (less a reasonable allowance for use) of the product. If the Commission finds that a product poses an unreasonable risk of injury and the situation can not be rectified by a product safety standard, the Commission is authorized to propose a ban on the product. The Actapplies to manufacturers, wholesalers, retailers, and importers. Any of these knowing of a product with a "substantial hazard" must report it immediately to the Commission or face civil and criminal penalties. Violation of a safety standard carries civil and criminal penalties. The legislation generally preempts State authority in consumer product safety, unless the State enacts product safety standards equal to or, in special cases, more stringent than Federal standards. The law also allows the public to petition the CPSC requesting the development of consumer product standards and permits business and/or citizen law suits challenging Commission actions. The Commission has responsibility for testing products and for maintaining an Injury Information Clearinghouse. The CPSC also has authority to inspect business establishments and records for signs of compliance or non- compliance with CPSC regulations. CRS-38 The Commission also inherited in whole or in part from other Federal agencie§Ls/everal pieces of legislation: the Federal Hazardous Substances ‘ct, the Poison Prevention Packaging Act, the Flammable Fabrics Act and the Refrigerator Door Safety Act. The Federal Hazardous Substances Act includes the Child Protection Act of 1966 and the Child Protection and Toy Safety Act of 1969. Some of the products to come under the early scrutiny of the new agency are: bicycles, toys, architectural glass, baby cribs, playground equip- ment, aerosol products, swimming pool slides, and color television sets. The variety of aforementioned products suggests the scope of the Commission's product jurisdiction. The Commission is directed by a chairman and four commission- ers. G. Lead-Based Paint Poisoning Prevention Amendments (P.L. 93-151; 87 Stat. 560) This legislation broadens the scope of the earlier legislation, the Lead-Based Poisoning Prevention Act of 1970 (P.L. 91-695; 84 Stat. 2078), de- scribed on page 34. The Amendments extend the eligibility of those to whom grants can be made for lead-based paint control to include nonprofit organizations in any State. The U. S. Department of Health, Education and Welfare can make grants to States to establish centralized laboratories for testing, screening and control of lead-based paint poisoning. Programs and procedures are to be develop- ed to remove lead-based paint from surfaces which create a high risk for children. _1__/ The Federal agencies from which the transferred legislation came are the Feder- al Trade Commission, the Environmental Protection Agency, the U. S. Depart- _ ment of Commerce, and the Food and Drug Administration of the U. S. Department of Health, Education and Welfare. CRS-39 The Amendments require that the Department of Housing and Ur- ban Development (HUD) carry out research and demonstration efforts to determine the nature and extent of the problem in the United States, particularly in urban areas, and how the paint can best be removed. The legislation gives HUD the authority to establish procedures to eliminate the hazards of lead poisoning in housing cover- ed by the Department's mortgage assistance and housing assistance programs. The legislation also prohibits the use of lead-based paints in federally assisted facili- ties and also its use in certain toys and utensils. The term "lead-based paint" meant (1) prior to December 31, 1974, any paint containing more than five-tenths of 1 per cent lead by weight; and" (2) after December 31, 1974, any paint containing more than six one-hundredths of 1 percent lead by weight. The Amendments also direct the U. S. Consumer Product Safety Commission to conduct appropriate research on safe levels of lead in residential paint products. taking into account such factors as paint build-up on surfaces from multiple layers of paint. The legislation also creates a National Childhood Lead-Based Paint Poisoning Advisory Board to advise the Secretary of Health, Education and Wel- fare. CRS-40 H. Mobile Home Construction and Safety Standards: Title VI of the Housing and Community Development Act of 1974 (P.L. 93-383; 88 Stat. 633) Title VI of the 1974 Housing and Community Development Act di- rects the U.S. Department of Housing and Urban Development to establish appro- priate Federal mobile home construction and safety standards in order "to reduce the number of personal injuries and deaths and the amount of insurance costs and property damage resulting from mobile home accidents and to improve the quality and durability of mobile homes." The title also directs that the Secretary of Hous- ing and Urban Development (HUD) appoint a National Mobile Home Advisory Coun- cil, representing consumers, industry and government. The law gives the De- partment the authority to conduct research, testing, development, training, inspec- tions, investigations, and civil or criminal court actions necessary to promulgate or enforce mobile home standards. The title also requires that manufacturers notify purchasers of mobile homes if defects occur, and it requires that the manu- facturers either correct the defects within a reasonable time at no expense to the owner or refund the purchase price of the mobile home. State standards with respect to mobile home construction and safety requirements must be identical to Federal standards. Grants can be given to States for enforcement. While responsibility for enforcement of title VI rests with HUD it should be noted that the Consumer Product Safety Commission retains some au- thority over some equipment used in mobile homes, such as furniture and ap- pliances. The National Highway Traffic Safety Administration in the U. S. Depart- CRS-41 ment of Transportation retains responsibility for the motor vehicle safety aspects of motorized homes and recreational vehicles, and the Federal Trade Commission retains authority in the warranty, promotion, advertising and sales area. For further information on the Housing and Community Develop- ment Act of 1974, see pages 11-12, 25-27, and 58-59. 1. Federal Fire Prevention and Control Act of 1974 (P. L. 93-498; 88 Stat. 1535) To reduce the continuing loss of life and property due to fire. the Federal Fire Prevention and Control Act establishes the National Fire Preven- tion and Control Administration in the U. S. Department of Commerce. The Federal Fire Prevention and Control Act is an outgrowth of work by the National Commission on Fire Prevention and Control, established by the Fire Research and Safety Act of 1968 (P.L. 90-259; 84 Stat. 34). The new agency is required to: (1) establish a National Academy for Fire Prevention and Control to advance the training of pro- fessionals in fire prevention and control; (2) conduct programs for development, testing, and evaluation of equipment for use by fire, rescue and civil defense ser- vices; (3) operate a National Fire Data Center; (4) develop master plan fire con- trol demonstration projects, leading ultimately to the development of State fire control plans; and (5) review and suggest improvements in State and local fire prevention codes, building codes, and relevant Federal or private codes and regula- tions. CRS-42 V. Motor Vehicles The 91 st, 92nd and 93rd Congresses each enacted significant leg- islation broadening Federal regulation in the motor vehicle safety and performance disclosure areas. The new coverage includes tire safety, motor vehicle perfor- mance and crash-worthiness data, bumper and other crash-resistance performance standards, recall provisions, odometers, diagnostic centers, and school bus safety standards. The 93rd Congress also barred the mandatory use of safety belt inter- lock systems and air bags. The energy and environmental concerns also brought a number of new laws affecting motor vehicles described in this report under Section VII-Selected Other Laws Potentially Affecting Consumer Interests. A. Traffic and Motor Vehicle Safety Amendments (P.L. 91-265; 84 Stat. 262) ‘ In addition to extending the funding authorization for the National Traffic and Motor Vehicle Safety Act of 1966 (P.L. 89-563; 80 Stat. 718) through fiscal years 1970, 1971, and 1972, the amending portions of P.L. 91-265 widen the scope of the earlier law. Among its provisions, the amendments broaden the definition of "motor vehicle equipmen " to enable the U. S. Department of Transportation to set minimum safety standards for the manufacture of certain wearing apparel and other devices (e.g. motor cycle helmets and goggles, tire inflation equipment, etc.) which are not part of the vehicle but which may be used to safeguard motor vehicles, drivers, passengers and other highway users from risk of accident, injury or death. CRS~43 P.L. 91-265 also gives the U. S. Department of Transportation the authority to require a motor vehicle manufacturer to provide performance and technical data at the point of sale to prospective purchasers of either motor vehicles or items of motor vehicle equipment, and to prescribe the manner in which the data are to be furnished. The legislation extends the defect notification section (section 113 of the National Traffic and Motor Vehicle Safety Act of 1966) to require manufac- turers of new or retreaded tires to notify the owners of the tires if defects are found. In the case of private labels, notification is the responsibility of the pri- vate labeler. Standards can be set for tire carcasses which may be used for re- treading. B. Hi hway Safety Act of 1970 :Title II , Section 202 of the 17eéi$;3)ral-Aid Highway Act of 1970 (P. L. 91-605; 84 Stat. In addition to extending authorizations for the highway safety and motor vehicle safety programs. the Highway Safety Act of 1970 (section 202, title 11 of the Federal-Aid Highway Act Of 1970) amends Section 201 of the Highway AC1 Of 1955 (P. L. 89-564; 80 Stat 731). thereby formally establishing the National Highway Traffic Safety Administration (NHTSA) as an "administration" within the U. S. Department of Transportation. This confirms in law an already existing ad- ministrative arrangement within the Department, and puts NHTSA at the same organizational level as other administrations in the Department. The National Highway Traffic Safety Administration currently has responsibility for programs that include safety and crash~worthiness performance of motor vehicles and re- lated equipment, and safety of motor vehicle drivers. CRS-44 C. Motor Vehicle Information and Cost Savings Act (P.L. 92-513; 86 Stat. 947) This motor vehicle legislation in the 92nd Congress aims at ad- vancing auto safety and reducing auto owner risk and costs by requiring increased vehicle resistance to collision, improved repairability of damaged vehicles, in- creased consumer information on crash—worthiness and repairability of vehicles, establishment of diagnostic inspection demonstration projects, and penalties for tampering with odometers. The Act is administered by the National Highway Traffic Safety Administration in the U. S. Department of Transportation. Title I specifically requires development of standards, such as bumper standards, to reduce property damage to the vehicle in case of accident, thereby also reducing the costs of repairing any damage, and consequently lower- ing the costs for auto insurance and litigation. Title II calls for an Automobile Consumer Information Study to look into providing the public with information on the damage susceptibility of passenger motor vehicles, the crash—worthiness of those vehicles, and the ease of diagnosis and repair of mechanical and electrical systems, which fail or are damaged. Title III requires establishment of motor vehicle diag- nostic inspection stations as ademonstration project to enable the public to diagnose repair needs or to check on adequacy of repairs made at repair facilities. This title also requires inspection whenever an automobile title is transferred for pur- poses other than resale, and whenever the vehicle sustains substantial damage to any safety-related or emission-related system. Title IV prohibits the disconnect- ing, resetting or altering of an odometer with intent to reduce the mileage indicated. CRS-45 D. National Traffic and Motor Vehicle Safety Act Amendments of 1972 (P.L. 92-548; 86 Stat. 1159) This legislation amends the National Traffic and Motor Vehicle Safety Act of 1966 (P. L. 89-563; 80 Stat. 718) to allow temporary exemptions from motor vehicle safety standards for manufacturers of 10, 000 or less vehicles annual- ly. Exemptions are limited to two years. Exemptions are intended to protect small manufacturers of experimental vehicles or other custom and specialty vehicles (many of them foreign) from undue economic hardship resulting from safety com- pliance requirements. Exemptions are intended to encourage experimentation in new safety approaches and low auto emission systems. Manufacturers receiving. exemptions from particular standards must nonetheless still maintain an overall satisfactory level of motor vehicle safety. The legislation also extended to fiscal 1973 authorization of funds under the National Traffic and Motor Vehicle Safety Act. E. Motor Vehicle and Schoolbus Safety Amendments of 1974 (P.L. 93-492; 88 Stat. 1470) This legislation amends the National Traffic and Motor Vehicle Safety Act of 1966 (P.L. 89-563; 80 Stat. 718), administered by the National High- way Traffic Safety Administration in the U.S. Department of Transportation. In addition to authorizing further funding for the Federal motor vehicle safety pro- grams, title I of the amendments requires a manufacturer of motor vehicles or tires to notify the Department of Transportation as well as owners, purchasers and dealers of any defect or failure to comply with any Federal motor vehicle safety standard. Manufacturers are required to remedy the defect or failure, without charge to the consumer, through either repair, replacement or refund procedures. The title also details reporting requirements for manufacturers. It CRS-46 directs the Department of Transportation to promulgate a fuel system integrity standard to protect occupants of vehicles from fuel-fed fires resulting from a crash. The legislation prohibits the sale of regrooved tires unless the Department deter- mines that such tires are safe. Lastly, title I prohibits the use of mandatory Federal motor vehicle standards requiring a safety belt interlock system, any warning device other than a warning light to indicate safety belts are not fastened, or any Occupant restraint systems other than integrated lap and shoulder belts for front outboard occupants and lap belts for others. Title II requires that the Department of Transportation develop Federal motor vehicle safety standards for schoolbuses and schoolbus equipment, including such features as: emergency exits, interior protection for occupants. floor strength, seating systems, crash—worthiness of body and frame (including protection against rollover), vehicle operating Systems. Windows and Windshields. and fuel systems. Title III directs the Department of Transportation to establish a special motor vehicle diagnostic inspection demonstration project to assist in the development of inspection and diagnostic equipment for standardized, high—volume inspection facilities. CRS-47 VI. Consumer Education In recent years there has been increasing emphasis on consumer education programs both in- and outside the school curriculum, to better equip today's and tomorrow's consumers to deal with the complexities of the market- place and to enhance consumer satisfaction and self—protection. Consumer education courses, which can now be found in elementary and secondary schools, in vocational education, in anti-poverty programs, in basic adult education, and at the university levels, are designed to teach lifetime consumer skills. Consumer education is a mandatory school subject in several States, and an elective subject in many others. Specific mention should be made of two laws enacted by the Congress in the 1969-1974 period to foster consumer education. A. Consumers‘ Education: Section 205, Title II and Section 505, Title V of the Education Amendments of 1972 (P.L. 92-318; 86 Stat. 235) and B. Consumers‘ Education: Section 407, Title IV of the Education Amendments of 1974 (P.L. 93-380; 88 Stat. 484) In the Education Amendments of 1972 (P.L. 92-318; 86 Stat. 235), section 505 of title V amended title VIII of the Elementary and Secondary Education Act of 1965 to include Section 811: Consumers‘ Education. This section authorizes funds for projects, curriculum development and dissemination of information on consumer education. It authorizes appointment of a director of consumer educa- tion in the Office of Education in the U.S. Department Health, Education and Wel- fare to carry out these provisions. Although authorized, no funds were appropriated in fiscal years 1973, 1974, and 1975 to implement this program. CRS-48 However, section 811 has been amended once since 1972 by sec- tion 407 in title IV of the Education Amendments of 1974 (P.L. 93-380; 88 Stat. 484). The new amendment establishes an Office of Consumer Education within the Office of Education and extends the authorization for consumer education in ele- mentary and secondary education programs, with funds appropriated for the first time in fiscal year 1976. Section 205 of title 11, the vocational education provisions, of the Education Amendments of 1972 also contained authorization for continued funding through fiscal year 1975 for consumer and homemaking education, for which funds were first authorized in 1968 legislation and funds first appropriated in fiscal year 1970. For the Youth Camp Safety Investigation, required by title VI of the Education Amendments of 1972, see page 35. CRS-49 VII. Selected Other Laws Potentially Affecting Consumer Interests In addition to enacting numerous consumer protection laws aimed at assuring the wholesomeness, safety, truthfulness, fairness, availability, and other desirable characteristics of consumer products and services, the 91 st, 92nd and 93rd Congresses also passed a number of other measures which have an iden- tifiable, significant and often potentially beneficial impact upon consumers but which are more properly described in principal terms other than "consumer protection". Selected. listed and described in section VII of this report are more than twenty such measures in such public policy areas as environment, health care, resource recovery, clean air, bank regulation, water pollution control, noise control, agri- cultural price supports, energy, fuel allocation, legal services, housing and com- munity development, food stamps, wage and price stabilization, and antipoverty programs. Undoubtedly, the reader may feel that other measures should be added to the list, and that some of those now listed should be dropped because they are too remote in consumer impact. Nonetheless, taking this section of the report in its entirety, the breadth of congressional action potentially affecting con- sumers is evident. A. National Environmental Policy Act of 1969 (P. L. 91-190; 83 Stat. 8527 Since environmental and consumer issues are often closely relat- ed, the enactment of the National Environmental Policy Act has significance for consumers. Environmental actions affect such everyday consumer products and services as packaging, automobiles, gasoline, pesticides, and utilities--to men- tion a few--as well as air and water in general. CRS-50 The legislation states that "[t]he purposes of [the] Act are to de- clare a national policy which will encourage productive and enjoyable harmony be- tween man and his environment; to promote efforts which will prevent or eliminate damage to the environment and biosphere and stimulate the health and welfare of man; to enrich the understanding of the ecological systems and natural resources important to the Nation. . . ." The legislation established the Council on Environ- mental Quality in the Executive Office of the President to advise the President on environmental policy matters. This legislation introduces into everyday Govern- ment decision-making the "environmental impact statement" and "the citizen law suit" to enforce the intentions of the National Environmental Policy Act, popularly referred to as NEPA. B. Economic Stabilization Act of 1970: Title II of P. L. 91-379; 84 Stat. Faced with accelerating levels of inflation affecting consumers among others,the Congress passed the Economic Stabilization Act of 1970 (title 11 of P. L. 91-379), which authorized the President to issue such orders and regula- tions as the President felt necessary to stabilize prices, rents, wages and salaries, thereby permitting mandatory wage and price controls over sectors of the U. S. economy. This standby authority was subsequently used by the President for es- tablishing wage and price COntI‘O1S- The Act was amended six times during its life (in sections of Public Laws 91-558, 92-8, 92-15, 92-210, 93-28 and 93-34). The Act expired on April 30, 1974, and was replaced by the Council on Wage and Price Stability Act (P. L. 93-387; 88 Stat. 750), described on pages 59-60. 799 CRS-51 C. Resource Recovery Act of 1970 (P.L. 91-512; 84 Stat. 1227) Though the Resource Recovery Act of 1970 is basically an en- vironmental measure, it has significant implications for consumers. Municipal solid wastes are largely the result of our consumer-oriented economy, with its wide- spread use of depreciable property, disposable products and convenience packaging, including cars, tires, and appliances; disposable bottles, cans, and plastic con- tainers. The Act, which amends the Solid Waste Disposal Act (P.L. 89-272; 79 Stat. 997), emphasizes the "resource recovery" potential of solid wastes as sources of recyclable products, reusable materials or recoverable energy. The legislation utilizes research, demonstration projects, grants, and other appropriate techniques for advancing the concept and techniques of resource recovery and solid waste re- duction. A The original 1970 legislation gave responsibility to the U.S. De- partment of the Interior, but this authority has since been transferred to the En- vironmental Protection Agency. D. Clean Air Amendments of 1970 (P.L. 91-604; 84 Stat. 1676) The Clean Air Amendments of 1970 updates the Air Quality Act of 1967 (P.L. 90-148; 81 Stat. 485). Though principally an environmental protec- tion law, the Clean Air Amendments can significantly affect consumers, first, be- cause of the Act's broad potential for protecting public health, property, crops, livestock, and aesthetics from air pollution, and second, because of the Act's very direct impact upon everyday products and services such as automobiles, gasoline, and utilities. To achieve its objectives, the Clean Air Amendments include pro- visions for: national ambient air quality standards; air quality control regions; Federal approval of State Implementation Plans which call for air quality standards CRS-52 for existing stationary sources of pollution such as factories and utilities; tighter implementation and enforcement provisions; Federal emission standards for ir_1_e_w_ stationary sources such as factories and utilities; auto emission controls; motor vehicle testing, certification and information programs; standards for automotive and other fuels; aircraft emission standards; controlling pollution from Federal facilities; and extensive funding authorizations. In particular, the Act mandates sharply reduced auto emission levels (at least 90 percent below 1970 levels) for hydrocarbon and carbon monoxide, by model year 1975. For nitrogen oxide, the model year 1976 levels must be 90 percent below 1971 levels. The use of certain types of auto emission control equip- ment requires the ready availability of lead~free gasoline. The legislation is administered by the Environmental Protection Agency. E. Bank Holding Company Act Amendments of 1970 (P.L. 91-607; 84 Stat. 1760) The Congress wanted to encourage competition in banking and to prevent too much concentration and/or expansion of bank activities from adversely affecting consumers as well as businesses competing with banks. Congress amended the Bank Holding Company Act of 1956 (70 Stat. 133, as amended; 12 U. S.C. §l841 (a) et. seq.) in order to give the Federal Government more effective control over the activities of bank holding companies. Among its numerous provisions, the amendments bring holding companies controlling one bank under regulation of the Bank Holding Company Act for the first time and extend the Board of Governors of the Federal Reserve System's jurisdiction to cover situations where the holding com- pany may hold less than 25 percent of the bank's stock. It permits a bank holding CRS-53 company to engage in a nonbanking activity only if it is functionally related to banking (e.g. bank credit cards) and is expected to produce public benefits that outweigh adverse effects; it bars banking diversification into activities functionally unrelated to banking, thereby preventing the spread of banking into commerce and industry. F. Federal Water Pollution Control Act Amendments (P. L. 92-500; 86 Stat. 816) To assure the availability of clean water for public, industry, agriculture, fishing, shellfish, wildlife and recreation use, this water pollution control legislation declares as a national goal the elimination of the discharge of pollutants into the waters of the United States by 1985. The goal of clean water, the law declares, can be. attained through: pollution control standards for industry and municipalities; «grants for construction of wastewater treatment facilities; re- search, monitoring, and enforcement; and, permits and licenses to control per- missible discharges of effluents into navigable waters. Consumer interests are potentially affected by such matters as wastewater treatment, and the prices of products and services bearing the costs of process changes brought about by the Act. G. Federal Environmental Pesticide Control Act of 1972 (P. L. 92-516; 88 Stat. 973) Recognizing both the potential public benefits as well as dan- gers from pesticide usage, the Act amends the Federal Insecticide, Fungicide and Rodenticide Act (7 U.S. C. 135 et. seq. ), giving the Environmental Protection Agency (EPA) greater control over the registration of pesticides, including those intended for household use. The Agency can designate those pesticides intended for general use or for restricted use. The Act gives the Environmental Protection Agency authority to certify applicators of pesticides, and to establish procedures for re- gistration, maintenance of records, and Government inspection of pesticide facili- CRS-54 ties. The legislation also gives EPA the authority to stop the sale of pesticides and/or to seize pesticides or pesticide devices if they violate the Act. The law establishes civil and criminal penalties for violation of the law. H. Noise Control Act of 1972 (P. L. 92-574; 86 Stat. 1234) To reduce noise in our environment, the Noise Control Act of 1972 gives the Environmental Protection Agency responsibility for coordinating the programs of all Federal agencies relating to noise research and noise control. The legislation directs the Agency to set noise emission standards where necessary for a range of products such as construction equipment, transportation equipment, any motor or engine, or electrical or electronic equipment. This mandate can also affect consumer products such as appliances, power tools, motorcycles, and auto- mobiles. Responsibility for control of aircraft noise remains principally with the Federal Aviation Administration in the U. S. Department of Transportation. 1. Agriculture and Consumer Protection Act (P.L. 93-86; 87 Stat. 221) Though this legislation is primarily an agricultural support mea- sure, the Act also includes an extension of the Federal Food Stamp Program for low-income consumers, together with certain changes in eligibility requirements for use of food stamps. Among its numerous provisions, the Act extends price supports for such commodities as milk, wool, wheat, corn, and cotton; places an overall ceiling of $20,000 on annual subsidy payments to individual farmers; ex- tends the Food for Peace Program; requires a full 1974 Census of Agriculture; and encompasses various conservation programs. CRS-55 J. Emergency Petroleum Allocation Act of 1973 (P. L. 93-159; 87 Stat. 627) and K. Federal Energy Administration Act of 1974 (P.L. 93-275; 88 Stat. 96) Consumers are affected by the price and availability of oil for gasoline, heating, and numerous consumer products. The Emergency Petroleum Allocation Act was designed "to authorize and require the President of the United States to allocate crude oil, residual fuel oil, and refined petroleum products to deal with existing or imminent shortages and dislocations in the national distribution system which jeopardize the public health, safety, or welfare . . . " Under this authority, the President was empowered to set up a mandatory allocation pro- gram and to specify petroleum prices, including the pass-through to final users of price increases due to the rising price of oil. The Act directed that independent marketers, small refiners, and independent refiners be assured of adequate supplies of oil or oil products. The basic authority for enforcing the legislation was initially given to the Federal Energy Office, established by Executive Order 11748. December 4, 1973, but then rested with the Federal Energy Administration, established by P. L. 93-275 (88 Stat. 96), effective June 28, 1974. The Emergency Petroleum Allocation Act lapsed, effective August 31, 1975. L. Health Maintenance Organization Act of 1973 (P. L. 93-222; 87 Stat. 914) In an effort to encourage reduced costs of health care for work- ers and employers, Congress "amend[ed] the Public Health Service Act to pro- vide assistance and encouragement for the establishment and expansion of heauh maintenance organizations ..." The health maintenance organization (HMO) is CRS-56 designed to provide awide range of health care services to a defined, enrolled population for a predetermined, prepaid premium. The premium is unrelated to the actual number of services utilized by an enrollee in a particular time period. Mil- lions of Americans are already enrolled in HMOS. The HMO approach to medical care is an alternative to the traditional fee-for-service approach. Among its pro- visions, the legislation provides that the U. S. Department of Health, Education and Welfare can make loans, or guarantees on loans, to public or nonprofit private health maintenance organizations in their first three years of new operation or of major expansion. The Act requires that firms which employ twenty-five or more persons and which offer any health benefits plan must offer their employees an option of membership in a health maintenance organization which provides basic and supplemental health services in the areas where employees reside. M. Emergency Highway Energy Conservation Act (P. L. 93-239; 87 Stat. 1046) The main purpose of the Emergency Highway Energy Conserva- tion Act is to conserve energy on the Nation's highways. Congress stated that the U. S. Department of Transportation may not approve any project within the National System of Interstate and Defense High- ways in any States which have a maximum speed limit on any public highway with- in its jurisdiction in excess of 55 miles per hour. At that speed level, the Con- gress anticipates that there will be greater fuel efficiency in motor vehicles and a consequent saving in fuel usage. The lowered speed limits also bring reduced motor vehicle accidents, with an expected reduction in personal injury, or death, and reduced property damage and lowered insurance costs to motor vehicle owners as a consequence. CRS-57 The legislation also gives the U. S. Department of Transportation responsibility for encouraging car pools as a way of reducing fuel consumption, improving air quality, cutting commuting costs, and making better use of existing highways and parking facilities. N. Legal Services Corporation Act of 1974 (P. L. 93-355; 88 Stat. 378) The Legal Services Corporation Act "amend [S] the Economic Op- portunity Act of 1964 to provide for the transfer of the legal services program from the Office of Economic Opportunity to a Legal Services Corporation", an in- dependent, nonprofit, public corporation established to provide financial support for legal assistance in noncriminal matters to persons financially unable to afford legal assistance--persons such as low-income consumers, including the elderly poor. The Neighborhood Legal Services program, which preceded this new legislation, had been actively involved in representing the interests of the poor, including handling the marketplace problems of low-income consumers. However, the new law is more strict about activities that do not relate directly to repre- sentation of clients, barring such activities as advocacy, picketing, and boycotts, among other forms of activism. P. L. 93-355 also provides authorization for funding the Legal Services Corporation. O. Perishable Agricultural Commodities Act Amendment (P. L. 93-369; 88 Stat. 423) The Amendment gives the U. S. Department of Agriculture the option of either imposing a monetary penalty, not to exceed $2000, for violations of the misbranding provisions of the Perishable Agricultural Commodities Act, or instituting a formal proceeding for suspension or revocation of a business license issued under the Act to trade in fruit and vegetables. Indirectly, the Act pro- tects consumers from misbranding of the fruits and vegetables which ultimately reach consumer tables. CRS-58 P. The Housing and Community Development Act of 1974 (P.L. 93-383; 88 Stat. 633) The importance of the Housing and Community Development Act goes far beyond its direct consumer protection sections described in previous por- tions of this survey. The Act also provides for a simplification, consolidation, and expansion of housing and community development legislation approved over a 40-year period, bringing together programs that include the National Housing Act of 1934 (FHA), the U.S. Housing Act of 1937 (public housing), the Housing Acts of 1954 and 1969 (urban renewal), the Demonstration Cities and Metropolitan Develop- ment Act of 1966 (Model Cities) and the Housing and Urban Development Act of 1968~(interest rate subsidy). Several new programs have been added, including the mobile home safety program described earlier. Listed below are the titles of the Act, together with brief des- criptions. Title I--Community Development Block Grants--consolidates de- velopment grants of different types (e.g. urban renewal, model cities, open spaces, water and sewer, etc.) into a single block grant program. Title II --Assisted Housing --permits resumption of housing assis- tance in different forms for lower-income and very—low-income persons, the elder- ly and the handicapped, including public housing, subsidized home ownership, and subsidized rental housing. Title III--Mortgage Credit--amends and extends basic FHA au- thorities, including increasing the maximum on FHA-insured and VA-guaranteed home loans. For repairs of defects in certain FHA-insured mortgages. described earlier, see page 25. CRS-59 Title IV--Comprehensive Planning--revises and simplifies the planning grant program for States, cities, urban counties, metropolitan areas, re‘ gions or Indian reservations. Title V—-Rural Housing--extends the authority for rural housing programs, including financing of mobile homes and mobile home sites and mini- mum property standards for mobile home sites. Title Vl--Mobile Home Construction and Safety Standards (describ- ed earlier, pages 40-41). Title VII--Consumer Home Mortgage Assistance--contains num- erous provisions liberalizing the operations of Federal savings and loan associa- tions and Federal credit unions. For amendments, described earlier, affecting Federal credit union procedures, see page 26. Title VIII——Miscellaneous--contains a number of measures, includ- ing amendments to the Interstate Land Sales Full Disclosure Act (described earlier. pages 11-12); amendments prohibiting discrimination on account of sex in extension of mortgage assistance (described earlier, pages 26-27); modifications of the statement of national housing goals to emphasize neighborhood preservation; providing for assistance to State Housing Finance Agencies; amending programs related to new communities; expanding the housing allowance experiments; and others. Q. Council on Wage and Price Stability Act (P.L. 93-387; 88 Stat. 750) Along with other groups in our economy, consumers directly and indirectly feel the impact of inflation. The Council on Wage and Price Stability Act authorizes the Presi- dent to establish, within the Executive Office of the President, the Council on Wage and Price Stability to monitor the inflation problem in the private sector of CRS-60 the economy with respect to wages, prices, profits, dividends, interest rates and concentration of business power and antitrust activities. In addition to monitoring the private sector, the Council has the authority to review and evaluate the various programs, policies and activities of the Federal Government in order to assess their inflation impact. The Act does not authorize a return to mandatory wage and price controls. The Council can undertake studies. intervene in agency regulatory proceedings, hold hearings, and publicize actions as inflationary. This legislation replaced the Economic Stabilization Act of 1970, as amended (P.L. 91-379; 84 Stat. 750 as amended). which expired on April 1974 (described on page 50)., Price controls. on petroleum products (i.e. gasoline) C0ntinl1€d until August 31. 1975, under the authority of the Emergency Petroleum Allocation Act of 1973 (P. L. 93-159; 87 Stat. 627). described on page 55. R. Employee Retirement Income Security Act of 1974 (P.L. 93-406; 88 Stat. 829) The 93rd Congress enacted landmark pension reform legislation in the form of the Employee Retirement Income Security Act of 1974, To the consumer, pension plans provide income security for the years of retirement. The legislation is designed to regulate and protect private pension plans. The Act sets forth minimum participation standards, minimum vesting standards, benefit accrual requirements, and joint and survivor annuity requirements. It establishes minimum funding standards for employee benefit plans and outlines fiduciary responsibilities, administration and enforcement. The Act revises the Internal Revenue Code with respect to parti- cipation, vesting, and funding of employee retirement plans. The Act makes pro- vision for Individual Retirement Plans (IRAS) for employed persons not covered by any pension plan. P.L. 93-406 also updated the provisions for self-employ- ment retirement plans (known as Keogh Plans). CRS-61 The Act establishes the Pension Guaranty Corporation under the aegis of the U.S. Department of Labor to insure pension fund benefits in case of termination of a pension plan. S. Solar Heating and Cooling Demonstration Act of 1974 (P. L. 93-409; 88 Stat. 1069) Recognizing that the harnessing of solar energy may one day have great value to all consumers of energy, Congress designed this legislation "... to provide for the early development and commercial demonstration of the technology of solar heating and combined solar heating and cooling systems" for commercial and residential buildings. Among its provisions, the Act instructs the U. S. Depart- ment of Housing and Urban Development to arrange for the installation of solar heating systems and combined solar heating and cooling systems in a substantial number of residential buildings and to study the effects of building codes, zoning ordinances and other practices that may affect the potential for utilization of solar energy. The National Aeronautics and Space Administration is also assigned a role in the research and demonstration aspects of the Act. Seven weeks after the passage of this Act, the Congress passed a re- lated measure, the Solar Energy Research, Development, and Demonstrations Act of 1974 (P.L. 93-473, 88 Stat. 1431), to encourage further work on the potential utilization of solar energy. The principal agency involved in this Act is the Energy Research and Development Administration (ERDA). CRS-62 T. Egg Research and Consumer Information Act (P. L. 93-428; 88 Stat. 1171) This legislation basically authorizes the establishment of egg marketing orders under the aegis of the U.S. Department of Agriculture, enabling the egg producers and processors of fowl to promote the sale of eggs, egg pro- ducts and processed fowl. To accomplish this, the Department of Agriculture is empowered to set up an Egg Board, which can receive funds from producers and processors based on an assessment per case of eggs. The assembled funds can be used for advertising, sales promotion, research and development projects, and consumer education. U. Emergency Home Purchase Assistance Act of 1974 (P.L. 93-449; 88 Stat. 1364) In an effort to stimulate the housing construction industry in the face of a deepening recession and worsening inflation and to help the public buy homes, the 93rd Congress enacted the Emergency Home Purchase Assistance Act of 1974 to increase the availability of reasonably priced mortgage credit for home purchases. The Act directs the Government National Mortgage Association (GNMA) to purchase mortgages in accordance with this Act. It allows the U.S. Depart- ment of Housing and Urban Development to direct GNMA to purchase, sell or other- wise deal in mortgages covering more than four-family residences or covering one- to-four family residences, including those not insured by FHA or guaranteed by VA. The Act raises the dollar limits on housing eligible for financing; sets the maximum interest rate at 8 1/4 percent; authorizes home improvement loans for preservation of historic structures; authorizes the insuring of mortgages involving a dwelling unit in a cooperative housing project; and sets an overall limit of mort- gage purchases and commitments of $7. 75 billion under this legislation. CRS-63 V. Commodity Futures Trading Commission Act of 1974 (P.L. 93-463; 88 Stat. 1389) Some consumers invest in commodity futures. This legislation amends the Commodity Exchange Act, and establishes the Commodity Futures Trading Commission as an independent regulatory agency. The Commission has authority to regulate futures trading and exchange activities in agricultural and other com- modities, thereby protecting investors, traders, brokers and producers. The Com- mission inherits enlarged responsibilities heretofore performed by the Commodity Exchange Authority in the U. S. Department of Agriculture. The functions of the new Commission in the commodities area roughly parallel those of the Securities and Exchange Commission, established in 1934 to regulate the securities markets. W. Antitrust Procedures and Penalties Act (P.L. 93-528; 88 Stat. T706) A major purpose of the U. S. antitrust system is to secure the benefits of market competition for the consumer. In an effort to bolster antitrust enforcement and to foster more openness in antitrust settlements, the Antitrust Procedures and Penalties Act re- vises procedures for filing antitrust consent decrees. It requires U. S. district courts to make an independent determination as to whether a proposed consent judg- ment is in the public interest under the antitrust laws. It requires that the U. S. Department of Justice file a "competitive impact statement." The defendant must disclose all communications on behalf of the firm relating to the consent decree other than those made exclusively by counsel of record. The Act lengthens the present 30-day public comment period t0 50 days. It also increases the penal- ties for criminal violations of the antitrust laws by individuals and corporations. CRS-64 X. Privacy Act of 1974 (P.L. 93-579; 88 Stat. 1896) Abuses of privacy potentially affect citizens in a number of ways including civil rights, employability, insurability and credit worthiness. Federal agency information, if disclosed, might encompass personal background informa- tion, financial information, or political activity which might interfere with the con- sumer's rights in the marketplace. Accordingly, the Congress enacted the Privacy Act of 1974 ".. to amend title 5, United States Code, by adding section 5523 to safeguard individual privacy from the misuse of Federal records, to provide that individuals be grant- ed access to records concerning them which are maintained by Federal agencies, [and] to establish a Privacy Protection Study C0II1miSSi0n..." Among its provi- sions, the legislation allows the individual to amend his/her record; limits access to and disclosure of these records by Government agencies; and prohibits a Govern- ment agency from selling or renting lists of individual names and addresses. The consumer's interest in having access to his/her individual file and the opportunity to correct errors or to be notified when adverse information is given out is already reflected in legislation enacted four years earlier as the "Fair Credit Reporting Act" (see pages 20-22). This new legislation puts restraints upon Government agencies somewhat comparable to those placed upon consumer reporting agencies. CRS-65 Y. Headstart, Economic Opportunity, and Community Partnership Act of 1974 (P.L. 93-644;‘ 88 Stat. 2291) Congress passed this legislation ". .. to provide for the exten- sion of Headstart, community action, community economic development, and other programs under the Economic Opportunity Act of 1964, [and] to provide for in- creased involvement of State and local governments in antipoverty efforts. . . . " The Economic Opportunity Act (P-L- 33-451. as amended; 78 Stat. 508, as amended) had been the source of a number of programs, including several largely develop- ed to help low-income consumers. These consumer programs took the form of low-income credit unions, buying cooperatives, consumer advocacy efforts, and legal services. This new legislation creates the Community Services Administration in the executive branch to continue community action and economic development pro- gI‘amS- However, the Headstart program and a Comprehensive Health Services program became the responsibility of the U. S. Department of Health, Education and Welfare, while the Neighborhood Legal Services program became the Legal Service Corporation, as a result of P.L. 93-355 (88 Stat. 378), described on page 57. P.L. 93-644 limits and reduces over a period of time the maximum funding Federal share of most community action programs, but extends overall authorizations for several more years. CRS-66 CRS-67 INDEX A CONSUMER AREAS AFFECTED BY FEDERAL CONSUMER PROTECTION LAWS ENACTED, 1969-1974 [Note: this index applies to consumer protection matters described in sections I through VI of this report : I. Food. Drugs and Cosmetics II. Truth Disclosure III. Credit, Banking, Credit Unions and Securities IV. Safety V. Motor Vehicles VI. Consumer Education Section VII - Selected Other Laws Potentially Affecting Consumer Interests - has not been indexed. ' Note, also, that where page numbers are given twice in a category (i. e. child protection (safety) . . . pages 32, 33-34, 34, 35, 36-38), the two repeated page num- bers (i. e. page 34 in the above example) denote that the subject appears under two laws or amendments described on that page. ] Pages bankruptcy.............. 17-18 banks... oooooooooooooo 28-30, 30-31 billing practices . . . . . . . . . . . 28-30 boatsafety............... 35 campsafety............. 35 child protection (safety) . . . . . . . 33,33-34.34.35. including: consumer product safety Consumer Product Safety Commission flammable fabrics hazardous substances lead-based paint poisoning prevention poison prevention packaging refrigerator door safety toy safety cigarettes............... 7-8 see also: "little cigars" CRS-68 Pages cigars, "little". . . . . . . . . . . . 10 class actions . . . . . . . . . . . . 30,30-31 consumer credit - see : various headings "credit. . . " consumer credit protection, District of Columbia. . . . . . . 17, 24 Consumer Credit Protection Act Amendments . . . . . . . . . . . 20-22, 30-31 see also: Fair Credit Reporting Act Truth-in-Lending Amendments consumer education . . . . . . . . . 47-48 consumer product safety . . . . . . . 32, 33-34, 34 36-38, 38-39 including: child protection (safety) Consumer Product Safety Commission flammable fabrics hazardous substances lead-based paint poisoning prevention poison prevention packaging refrigerator door safety toy safety Consumer Product Safety Commission established . . . . . . . . . . . . 32, 33-34, 34, 36-38 38- 39, 40-41 includes: child protection (Safety) ' consumer product safety flammable fabrics hazardous substances lead-based paint poisoning prevention poison prevention packaging refrigerator door safety toy safety M consumer product warranties . . . . . . 13-14 correction of defects in homes with federally insured mortgages. . . . 25 credit, banking, credit unions and securities . . . . . . . . . . . . . . 16-31 credit billing practices . . . . . . . . . 28-30 credit cards . . . . . . . . . . . . . . . 19-20, 28-30,30 including: credit billing practices lost or stolen credit cards Truth-in-Lending Act Amendments credit for women. . . . . . . . . . . . 26-27, 30-31 credit reporting . . . . . . . . . . . . 20-22 CRS-69 credit unions. . . . . . . . . . . . . . including: share insurance defects in homes with federally insured Pages 13, 16-17, 18, 19-20, 20-22, 26, 27, 28-30 30-31 mortgages, correction of. . . . . 25 deposit insurance, banks. . . . . . . . 27 deposit insurance, credit unions see: share insurance, credit unions deposit insurance, savings and loan in- stitutions.............. 27 discrimination in mortgages & credit. 26-27, 30-31 District of Columbia consumer credit practices . . . . . . . . . . . . . . 17,24 drinking Water. . . . . . . . . . . . . . 6 drugs................... 5 education, consumer. . . . . . . . . . 47-48 eggs, egg products . . . . . . . . . . . 4-5 electronic fund transfer systems . . . 28 equal credit opportunity . . . . . . . . 30-31 see also: sex discrimination in mortgages Fair Credit Billing Act. . . . . . . . 28_30 "fair credit billing practices" . . . . . 28-30 "fair credit reporting" . . . . . . . . . 20-22 Fair Credit Reporting Act . . . . .' . 20-22 federally insured mortgages . . . . . . 25, 26-27 including: correction of defects in homes with federally insured mortgages sex discrimination in mortgages Federal Trade Commission (FTC) rulemaking, subpena. injunctive relief and enforcement authority . . . . . . . . . . . . . . fire prevention and control . . . . . . flammable fabrics . . . . . . . . . . . food. drugs and cosmetics . . . . . . . freedom of information . . . . . . . . . gold and silver articles . . . . . . . . . hazardous substances . . . . . . . . . . household product safety . . . . . . . . housing . -. . . . . . . . . . . . . . . . includes: insured mortgages mobile home safety 10-1 1, 14-15 41 36-38 4-6 12 9 32, 33-34, 36-38 36-38 13, 25-27, 40-41 correction of defects in homes with federally real estate settlement procedures sex discrimination in mortgages and credit CRS-7O Pages interstate land sales . . . . . . . . . 11-12 investment advisers . . . . . . . . . 22 see also: investment company investment company . . . . . . . . . 22,23,23-24 investor protection. . . . . . . . . . 22, 23,23-24 land sales,interstate . . . . . . . . . 11-12 lead-based paint poisoning prevention. 34, 38-39 "little cigars". . . . . . . . . . . . . 10 ‘ see also: cigarettes mailing of unordered merchandise. . 9 meat inspection. . . . . . . . . . . . 4 mobile home safety . . . . . . . . . . 40,41 money orders & traveler's checks, disposition of . . . . . . . . . . . 31 mortgages. . . . . . . . . . . . . . . 13,25,265-27 including: correction of defects in homes with federally insured mortgages real estate settlement procedures sex discrimination in mortgages motor vehicle crash-resistance standards............. 44 motor vehicle defects. . . . . . . . . 42-43,45—46 motor vehicle diagnostic inspection stations . . . . . . . . . . . . . . 44,45-46 motor vehicle equipment standards. . 42-43,44 motor vehicle passenger/driver restraint or seat belt warning systems. . . . . . . . . . . . . . 45-46 motor vehicle information (performance, technical, cost). . . . . . . . . . 42—43,44 motor vehicle safety exemptions . . . 45 motor vehicle safety. . . . . . . . . . 42-46 motor vehicles. . . . . . . . . . . . . 42-46 mutual funds . . . . . . . . . . . . . . 22 National Commission on Fire Preven- tion and Control 41 National Credit Union Administration (NCUA) established. . . . . . . . 16-17 National Highway Traffic Safety Ad- ministration (NHTSA) establish- ed . . . . . . . . . . . . . . . . . 43 odometers, tampering with . . . . . . 44 packaging, poison prevention. . . . . 33-34,36—38 paint, lead-based, poisoning preven- tion . . . . . . . . . . . . . . . . 34,38-39 pesticides (insecticides, fungicides, and rodenticides). . . . . . . . . 33-34 poison prevention packaging . . . . . 33-34,36—38 CRS—71 Pages poison prevention, lead- . based paint . . . . . . . . . . . . 34, 38-39 real estate settlement procedures . . 13 refrigerator door safety . . . . . . . 36-38 safe drinking water. . . . . . . . . . 6 safety belts, motor vehicles. . . . . 45-46 safety, consumer products . . . . . . 32-41 see also: motor vehicle safety savings and loan institutions . . . . . 13, 19-20, 20-22, 27-28, 28-30, 30-31 school bus safety . . . . . . . . . . . 45-46 securities investor protection . . . . 22, 23, 24-25 Securities Investor Protection Corporation (SIPC) established . 23-24 settlement procedures, real estate . 13 sex discrimination in mortgages and credit. . . _ . . . . . . . . . . . . 26-27, 30-31 share insurance, credit unions. . . . 18,27 silver and gold articles. . . . . . . . 9 tire safety. . . . . . . . . . . . . . . 42-43,45-46 toy safety . . . . . . . . . . . . . . . 32, 36-38 includes: child protection (safety) consumer product safety Consumer Product Safety Commission lead-based paint poisoning prevention traveler's checks and money orders, disposition of . . . . . . . . . . . 31 truthful disclosure . . . . . . . . . . 7-15 see also: consumer education credit, banking, credit unions and securities motor vehicle information TI'uth"in-Lending Amendments. . . . 19-20,28-30.30 unordered merchandise, mailing of . 9 warranties, consumer products. . . . 13-14 water, safe drinking. . . . . . . . . . 6 youth camp safety . . . . . . . . . . . 35 CRS~ 72 CRS - 73 INDEX B FEDERAL AGENCIES AFFECTED BY FEDER.AL CONSUMER PROTECTION LAWS ENACTED, 1969-1974 [Note: This index applies to Federal agencies described in sections I thru VI of this report: 1. Food, Drugs and Cosmetics 11. Truthful Disclosure III. Credit, Banking, Credit Unions and Securities IV. Safety V. Motor Vehicles VI. Consumer Education Section VII - Selected Other Laws Potentially Affecting Consumer Interests - has not been indexed. Note, also, that where page numbers are given twice for a Federal agency (i.e. U.S. Department of Agriculture . . . pages 4, 4-5, 19-20, 20-22. 28- 30, 30- 31), the repeated page numbers (i. e. page 4 in the above example, or 19-20, 20-22. etc.) denote that the agency appears under two laws or amendments on that page. ] Pages Agriculture, U. S. Department of. . . 4, 4-5, 19-20, 20-22, 28-30. 30-31 Civil Aeronautics Board . . . . . . . . . . 19-20, 20-22, 28-30, 30-31 Coast Guard, U.S. Department of Transportation . . . . . . . . . . . . . 35 Commerce, U. S. Department of . . . 36-38 see also: National Fire Prevention and Control Administration Comptroller of the Currency, U.S. Department of the Treasury . . . . 19-20. 20-22. 27. 28-30. 30-31 Consumer Product Safety Com- mission . . . . . . . . . . . . . . . . . . . . . . 32, 33-34, 34, 36-38, 38-39, 40-41 District of Columbia . . . . . . . . . . . . . . 17, 24 Environmental Protection Agency . . 6, 33-34, 36-38 Farm Credit Administration . . . . . . . 19-20, 20-22, 28-30, 30-31 Federal Courts . . . . . . . . . . . . . . . . . . . 9, 17-18 Federal Communications Com- mission . . . . . . . . . . . . . . . . . . . . . . 7-8,10 Federal Deposit Insurance Cor- poration . . . . . . . . . . . . . . . . . .. 13,19-20,20-22,27, 28-30, 30-31 Federal Home Loan Bank Board. . . . 13, 19-20, 20-22, 27, 28-30, 30-31 see also: Federal Savings and Loan Insurance Corporation CRS- 74 Pages Federal Reserve, Board of Governors . . . . . . . . . . . . . . . . . . . . 19-20,20-22,28-30, 30-31 Federal Savings and Loan Insurance Corporation . . . . . . . . . . . . . . . . . . . 27 see also: Federal Home Loan Bank Board Federal Trade Commission . . . . . . . . 7-8,10,10-11,13-15, 19-20, 28-30, 30-31, 36-38, 40-41 Food and Drug Administration, U.S. Dept. of Health, Education and Welfare . . . . . . . . . . . . . . . . 5, 33-34, 36-38 Health, Education and Welfare, U. S. Department of . . . . . . . . . . . . . . . . . 34-35 see also: Food and Drug Administration Office of Education Housing and Urban Development, - U.S. Department of . . . . . . . . . . . . ll-l2,l3,25,26-27, 34, 38-39, 40-41 including: Federal Housing Administration (FHA) Interstate Commerce Commission , _ 31 National Credit Union Administra- tion . . . . . . . . . . . . . . . . . . . . . . . . . . l6-l7,l8,l9-20,20-22, 26, 27, 28-30, 30-31 National Fire Prevention and Con- trol Administration, U.S. De- partment of Commerce . . . . . . 41 National Highway Traffic Safety Administration, U.S. Depart- ment of Transportation . . . . . . 40-41, 42-43, 43, 44, 45, 45-46 Office of Education, U. S. Depart- ment of Health, Education and Welfare . . . . . . . . . . . . . . . . . . . . 47-48 Securities and Exchange Commission 22,23,23-24 Securities Investor Protection Corp. _ 23-24 Small Business Administration . . . . . 30-31 Transportation, U. S. Depart- ment of see: Coast Guard National Highway Traffic Safety Administration Treasury. U. S. Department of the see: Comptroller of the Currency U. S. Postal Service . . . . . . . . . . . . . . . 9 Veterans Administration . . . . . . . . . . . 13 F WASHINGT uwsvmerrv Lawns « mo. 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