PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the Subcommittee on Transportation and Hazardous Materials.
Congressional Research Service
Version 00 · Introduced in House · Jul 1, 1993
Federal Franchise Disclosure and Consumer Protection Act - Makes it unlawful for any person, partnership, or corporation, in connection with the advertising, offering, licensing, contracting, sale, or other promotion in or affecting commerce of any franchise, to: (1) employ a device or artifice to defraud; (2) engage in any act or practice which operates or is intended to defraud; (3) obtain money or property by means of untrue statements or intentional omissions of material facts; or (4) discriminate among prospective franchisees on the basis of race, sex, religion, disability, or national origin. Outlines similar provisions with respect to the acts or omissions of a franchisor in presenting false or misleading information with respect to the franchise to a prospective franchisee. Specifies information to be furnished within prescribed time periods to a prospective franchisee by a franchisor or franchise broker, as required by the Federal Trade Commission (FTC) under the Franchise Rule. Requires the franchisor to keep and maintain adequate records for purposes of substantiation of all information required to be presented to a prospective franchisee. Authorizes the FTC to enforce the provisions of this Act. Authorizes any person injured by a violation of this Act to bring an action in Federal district court within prescribed time periods and for specified relief, including injunctive relief. Prohibits a franchisor from requiring franchisees to agree to provisions in franchise agreements which would: (1) violate prohibitions of, or rights granted under, this Act; or (2) relieve parties from appropriate liability. Provides for the use of arbitration to resolve disputes arising under a franchise agreement. Directs the FTC to conduct an ongoing study of the need for additional provisions to strengthen franchise disclosure requirements and protect prospective franchisees.
People & committees
Rep. LaFalce, John J. [D-NY-29] · D–NY
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the Subcommittee on Transportation and Hazardous Materials.
Referred to the Subcommittee on Economic and Commercial Law.
Referred to the House Committee on Judiciary.
Referred to the House Committee on Energy and Commerce.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Aug 26, 2025. Consult Congress.gov for the current record.
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