109th CONGRESS
1st Session
H. R. 3675
IN THE SENATE OF THE UNITED STATES
October 26, 2005
Received; read twice and referred to the Committee on Commerce, Science,
and Transportation
AN ACT
To amend the Federal Trade Commission Act to increase civil penalties
for violations involving unfair or deceptive acts or practices that exploit
popular reaction to an emergency or major disaster, and to authorize the
Federal Trade Commission to seek civil penalties for such violations in
actions brought under section 13 of that Act.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `American Spirit Fraud Prevention Act'.
SEC. 2. INCREASE IN PENALTIES FOR UNFAIR OR DECEPTIVE ACTS OR PRACTICES
EXPLOITING REACTION TO CERTAIN EMERGENCIES AND MAJOR DISASTERS.
(a) Violations of Prohibition Against Unfair or Deceptive Acts or Practices-
Section 5(m)(1) of the Federal Trade Commission Act (15 U.S.C. 45(m)(1))
is amended by adding at the end the following:
`(D) In the case of a violation involving an unfair or deceptive act or
practice in a national emergency period or disaster period, or relating
to an international disaster, the amount of the civil penalty under this
paragraph shall be double the amount otherwise provided in this paragraph,
if the act or practice exploits popular reaction to the national emergency
or major disaster that is the basis for such period, or to the international
disaster.
`(i) the term `national emergency period' means the period that--
`(I) begins on the date the President declares a national emergency
under the National Emergencies Act (50 U.S.C. 1601 et seq.); and
`(II) ends on the expiration of the 1-year period beginning on the date
of the termination of the national emergency;
`(ii) the term `disaster period' means the 1-year period beginning on
the date the President declares an emergency or major disaster under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5121 et seq.); and
`(iii) the term `international disaster' means any natural or man-made
disaster in response to which the President furnishes assistance to any
foreign country, international organization, or private voluntary organization
pursuant to section 491 of the Foreign Assistance Act (22 U.S.C. 2292(b)).'.
(b) Violations of Other Laws Enforced by the Federal Trade Commission- Section
13 of the Federal Trade Commission Act (15 U.S.C. 53) is amended by adding
at the end the following:
`(e)(1) If a person, partnership, or corporation is found, in an action
under subsection (b), to have committed a violation involving an unfair
or deceptive act or practice in a national emergency period or a disaster
period, or relating to an international disaster, and if the act or practice
exploits popular reaction to the national emergency or major disaster that
is the basis for such period, or to the international disaster, the court,
after awarding equitable relief (if any) under any other authority of the
court, shall hold the person, partnership, or corporation liable for a civil
penalty of not more than $22,000 for each such violation.
`(2) In this subsection--
`(A) the term `national emergency period' means the period that--
`(i) begins on the date the President declares a national emergency
under the National Emergencies Act (50 U.S.C. 1601 et seq.); and
`(ii) ends on the expiration of the 1-year period beginning on the date
of the termination of the national emergency;
`(B) the term `disaster period' means the 1-year period beginning on the
date the President declares an emergency or major disaster under the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.); and
`(C) the term `international disaster' means any natural or man-made disaster
in response to which the President furnishes assistance to any foreign
country, international organization, or private voluntary organization
pursuant to section 491 of the Foreign Assistance Act (22 U.S.C. 2292(b)).'.
Passed the House of Representatives October 25, 2005.
Attest:
JEFF TRANDAHL,
Clerk.
END
