Perlmutter bill targets unfair trade practices

By Mikkel Kelly

December 14, 2011

Congressman Ed Perlmutter wants to give companies the opportunity to take legal action against foreign companies that violate trade practices.

As it stands now, companies that suspect violations of the Foreign Corrupt Practices Act must rely on the Securities and Exchange Commission and the Department of Justice to cry foul and act.

District 7 representative Perlmutter, who is sponsoring House Bill 3531, introduced the bill that would give U.S. companies the opportunity to take action against unfair practices. The measure is dubbed the Foreign Business Bribery Prohibition Act of 2011.

The idea came to Perlmutter from a constituent business a few years ago that reported losing a contract because a foreign competitor bribed a government official. The business went to the SEC and DOJ, but no action was taken, said Communications and Policy Director Leslie Oliver, who noted the business did not wish to be identified. She said what can occur in basic terms is that an American company may put in a bid to provide a country with a product but another foreign competitor also submits a bid with a bribe of a government official and ultimately wins a contract.

"Ed sees this as a way to level the playing field, boost U.S. jobs and exports. Under this bill foreign companies will have to play by the rules or be brought to court," Oliver said. "More importantly, the mere fact that companies may bring action will act as a strong deterrent to foreign companies which engage in questionable activity."

Damages recovered would be the total amount of the contract the violating defendant gained or the total amount of a contract the plaintiff failed to gain, according to the bill.

The bill is being referred to the Committee on Energy and Commerce and in addition to the Committee of the Judiciary.