FTC Whistleblower Act of 2026

(a) Awards

(1) In general. If a whistleblower (or group of whistleblowers) voluntarily provides to the Commission original information regarding an alleged covered violation and such original information leads to the successful resolution of a covered action, the Commission, subject to subsection (b), shall pay an award to the whistleblower (or group of whistleblowers) in an aggregate amount of—

(A) not less than 10 percent, in total, of collected monetary sanctions imposed as a result of the relevant covered action; and

(B) not more than 30 percent, in total, of collected monetary sanctions imposed as a result of the relevant covered action.

(2) Payment of awards. Any amount paid under paragraph (1) shall be paid from the Fund.

(b) Determination and denial of awards

(1) Determination of awards

(A) Discretion. The determination of the amount of an award to be made pursuant to subsection (a) shall be within the discretion of the Commission (subject to the requirements described in subsection (a)).

(B) Criteria. In determining an award to be made pursuant to subsection (a), the Commission—

(i) shall take into consideration—

(I) the significance of the original information provided by the whistleblower to the successful resolution of the covered action;

(II) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in the covered action; and

(III) such additional factors as the Commission may establish; and

(ii) shall not take into consideration the balance of the Fund.

(2) Denial of awards. Notwithstanding subsection (a), the Commission shall deny an award to any whistleblower to whom an award otherwise would be made pursuant to subsection (a) if the whistleblower—

(A) is convicted of a criminal violation related to the relevant covered action;

(B) acts without direction from a covered entity (or an agent of a covered entity) to deliberately cause or substantially contribute to the alleged covered violation underlying the relevant covered action;

(C) fails to provide the relevant original information to the Commission in the form the Commission requires; and

(D) was, at the time the whistleblower acquired the relevant original information, a member, officer, or employee of the Commission or a law enforcement agency and acquired the information while acting in the normal course of the employment duties of the whistleblower.

(c) Representation

(1) Permitted representation. A whistleblower may be represented by counsel.

(2) Required representation

(A) Anonymous claims. Any whistleblower who anonymously makes a claim for an award under subsection (a) shall be represented by counsel if the whistleblower anonymously submits the original information upon which the claim is based.

(B) Disclosure of identity. Before the payment of an award described in subparagraph (A), the whistleblower shall disclose the identity of the whistleblower and provide such other information as the Commission may require, directly or through counsel for the whistleblower.

(d) No contract necessary. A contract with the Commission is not necessary for a whistleblower to receive an award pursuant to subsection (a).

(e) Provision of false information. A whistleblower who knowingly and intentionally makes any false, fictitious, or fraudulent statement or representation, or who knowingly and intentionally makes or uses any false writing or document containing any false, fictitious, or fraudulent statement or entry, may not receive an award pursuant to subsection (a).

(f) Appeals

(1) In general. Any determination made under this section, including whether, to whom, or in what amount to make an award, shall be in the discretion of the Commission.

(2) Appeals. Any determination made by the Commission under this section may be appealed by a whistleblower to the appropriate court of appeals of the United States not later than 30 days after the date on which the determination is issued by the Commission.

(3) Review. The court shall review the determination made by the Commission in accordance with section 706 of title 5, United States Code.

(g) Federal Trade Commission Consumer Protection Fund

(1) Establishment. There is established in the Treasury of the United States a Fund to be known as the Federal Trade Commission Consumer Protection Fund.

(2) Use of Fund. The Fund shall be available to the Commission, without further appropriation or fiscal year limitation, in order to pay for awards made to whistleblowers pursuant to subsection (a).

(3) Deposits and credits

(A) In general. There shall be deposited into or credited to the Fund an amount equal to any monetary sanctions collected by the Commission in any covered action, unless the balance of the Fund at the time the monetary sanction is collected exceeds $500,000,000.

(B) Additional amounts. If the amounts deposited into or credited to the Fund under subparagraph (A) are not sufficient to pay an award made pursuant to subsection (a), there shall be deposited into or credited to the Fund an amount equal to the unsatisfied portion of the award from any monetary sanctions collected by the Commission in the covered action on which the award is based.

(4) Investments

(A) Amounts in Fund. The Commission may request the Secretary of the Treasury to invest the portion of the Fund that is not required to meet the current needs of the Fund (as determined by the Commission).

(B) Eligible investments. Investments shall be made by the Secretary of the Treasury in obligations of the United States or obligations that are guaranteed as to principal and interest by the United States, with maturities suitable to the needs of the Fund (as determined by the Commission).

(C) Interest and proceeds credited. The interest on, and the proceeds from, the sale or redemption of any obligations held in the Fund shall be credited to, and form a part of, the Fund.

(5) Reports to Congress. Not later than October 30 of each year, the Commission shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on—

(A) the whistleblower award program established under this section, including a description of the number of awards made pursuant to subsection (a) and the types of cases in which such awards were made during the preceding fiscal year;

(B) the balance of the Fund at the beginning of the preceding fiscal year;

(C) the amounts deposited into or credited to the Fund during the preceding fiscal year;

(D) the amount of earnings on investments of amounts in the Fund during the preceding fiscal year;

(E) the amount paid from the Fund to pay for awards made to whistleblowers pursuant to subsection (a) during the preceding fiscal year;

(F) the balance of the Fund at the end of the preceding fiscal year; and

(G) a complete set of audited financial statements, including a balance sheet, income statement, and cash flow analysis.

(h) Rules of construction

(1) Original information. Original information submitted to the Commission by a whistleblower in accordance with the requirements of this section shall not lose the status as original information solely because the whistleblower submitted the information before the effective date of any regulation issued under this Act if the information was submitted after the date of the enactment of this Act.

(2) Awards. A whistleblower—

(A) may receive an award pursuant to subsection (a) regardless of whether the alleged covered violation underlying the covered action occurred before the date of the enactment of this Act; and

(B) may receive an award pursuant to subsection (a) before the Commission promulgates any regulation pursuant to this Act.