H.R. 10540 – 21st Century FTC Act

AI-Generated Summary

Updated September 28, 2026 at 12:51 PM UTC

The bill amends the Federal Trade Commission (FTC) Act to give the FTC formal notice‑and‑comment rulemaking power over unfair or deceptive acts or practices. It also authorizes the FTC to impose civil penalties when those rules are violated. The changes affect businesses and other entities that the FTC regulates for consumer protection.

Key Provisions

Allows the FTC to create and amend rules on unfair or deceptive acts and practices using a notice‑and‑comment process.
Authorizes the FTC to assess civil penalties for violations of those rules.
Updates the statutory language to clarify the evidentiary standards and procedural requirements for FTC actions.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

September 24, 2026

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HouseIntro Referral

Introduced in House

September 24, 2026

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

September 24, 2026

Bill Text

Latest available legislative text

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Introduced in HouseIssued September 24, 2026

I

119th CONGRESS

2d Session

H. R. 10540

IN THE HOUSE OF REPRESENTATIVES

September 24, 2026

Ms. Castor of Florida (for herself and Ms. Schakowsky) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To amend the Federal Trade Commission Act to provide the Commission with notice and comment rulemaking authority respecting unfair or deceptive acts or practices and to provide for civil penalties for violations of such Act respecting unfair or deceptive acts or practices, and for other purposes.

1.

Short title

This Act may be cited as the 21st Century FTC Act.

2.

Rulemaking respecting unfair or deceptive acts or practices

The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended—

(1)

in section 18—

(A)

in subsection (b)—

(i)

by striking paragraphs (2) and (3);

(ii)

in paragraph (1), by striking , and shall also and all that follows and inserting a period; and

(iii)

by striking (1) When prescribing and inserting When prescribing;

(B)

by striking subsection (c);

(C)

in subsection (d)—

(i)

in paragraph (1)—

(I)

by striking (A) a statement and all that follows through (B) a statement and inserting a statement; and

(II)

by striking ; and (C) a statement and all that follows and inserting a period; and

(ii)

in paragraph (2)(A), by striking subsections (b) and (c) and inserting subsection (b); and

(D)

in subsection (e)—

(i)

in paragraph (1)(B), by striking the transcript required by subsection (c)(5),;

(ii)

in paragraph (3), by striking , or if and all that follows and inserting the following: , or if the court finds that the Commission's action is not supported by substantial evidence in the rulemaking record (as defined in paragraph (1)(B) of this subsection) taken as a whole. The term evidence, as used in this paragraph, means any matter in the rulemaking record.;

(iii)

in paragraph (5)(C), by striking the first and third sentences;

(iv)

by striking paragraph (2); and

(v)

by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively; and

(2)

in section 22—

(A)

in subsection (a)(1), by striking or section 18; and

(B)

in subsection (c)—

(i)

in paragraph (1), by striking , except and all that follows and inserting a period; and

(ii)

in paragraph (2), by striking Except as specified in paragraph (1), no and inserting No.

3.

Civil penalties for violations of Federal Trade Commission Act respecting unfair or deceptive acts or practices

Section 5(m)(1)(A) of the Federal Trade Commission Act (15 U.S.C. 45(m)(1)(A)) is amended—

(1)

by inserting this Act or after violates; and

(2)

by inserting a violation of this Act or is before prohibited.