WASHINGTON (Reuters), – U.S. senators have sent to the Senate a Democratic-backed legislation that would enable the Federal Trade Commission, which is funded by Democrats, to order deceptive corporations to pay victims back their money.

To advance the bill, the Senate Commerce Committee split between 14 and 14. This would allow the FTC to regain the power it was stripped of last year in a U.S. Supreme Court decision. Despite the tie vote, the measure is now ready for a full Senate vote.

The legislation was officially introduced to the Senate last week by Democrats with just two Democratic sponsors. The Democratic-controlled House of Representatives passed similar legislation last year.

It would be law if the FTC can ask for money to be returned to them.

Republican Senator Mike Lee rejected the bill. He also criticized Lina Khan (Democratic Chair of FTC) for his “power grabs.”

For decades, the FTC was suing scammers and deceptive businesses to recover money. However, the Supreme Court stopped the FTC in April 2021. The Supreme Court ruled that it went beyond what is legal in seeking court orders for fraudsters to return their funds.

According to Senator Maria Cantwell, $11.2 billion was returned to consumers by the FTC in the five years preceding the decision. Cantwell is a Democrat and chair of Senate Commerce Committee. She also serves as the lead sponsor for the bill.

Chamber of Commerce is a U.S.-based business organization that opposes this measure. The Chamber of Commerce is a United States business organization that opposes this measure. They argue the 10 year statute of limitations contained in the bill is excessive.

The Supreme Court decision means that the FTC must be given express authority by Congress to retrieve such funds.

The bill was also supported by Senator Amy Klobuchar (chair of Senate Judiciary Antitrust Subcommittee), Senators Ben Ray Lujan, and Raphael Warnock.