Deceptive Games of Chance Mailings Elimination Act of 1998

SECTION 1. DECEPTIVE GAMES OF CHANCE MAILINGS ELIMINATION.

    (a) Short Title.--This Act may be cited as the ``Deceptive Games of 
Chance Mailings Elimination Act of 1998''.
    (b) Nonmailable Matter.--
            (1) In general.--Section 3001 of title 39, United States 
        Code, is amended--
                    (A) by redesignating subsections (j) and (k) as 
                subsections (k) and (l), respectively; and
                    (B) by inserting after subsection (i) the 
                following:
    ``(j)(1) Matter otherwise legally acceptable in the mails that 
constitutes a solicitation or offer in connection with the sales 
promotion for a product or service or the promotion of a game of skill 
that includes the chance or opportunity to win anything of value and 
that contains words or symbols that suggest the recipient will, or is 
likely to, receive anything of value, shall conform with requirements 
prescribed in regulations issued by the Postmaster General.
    ``(2) Matter not in conformance with the regulations prescribed 
under paragraph (1) shall not be carried or delivered by mail and shall 
be disposed of as the Postal Service directs.
    ``(3) Regulations prescribed under paragraph (1) shall require, at 
a minimum, that--
            ``(A) promotion of games of chance mailings contain 
        notification or disclosure statements, with sufficiently large 
        and noticeable type to be effective notice to recipients that--
                    ``(i) any recipient is not obligated to purchase a 
                product in order to win;
                    ``(ii) sets out the chances of winning accurately; 
                and
                    ``(iii) advises that purchases do not enhance the 
                recipient's chances of winning;
            ``(B) games of chance mailings shall be clearly labeled 
        to--
                    ``(i) identify such mailings as games of chance 
                mailings; and
                    ``(ii) prohibit misleading statements representing 
                that recipients are guaranteed winners; and
            ``(C) solicitations in games of chance mailings may not 
        represent that the recipient is a member of a selected group 
        whose chances of winning are enhanced as a member of that 
        group.''.
            (2) False representations.--Section 3005(a) of title 39, 
        United States Code, is amended--
                    (A) in the first sentence by striking ``section 
                3001 (d), (h), or (i)'' and inserting ``section 3001 
                (d), (h), (i), or (j)''; and
                    (B) in the second sentence by striking ``section 
                3001 (d), (h), or (i)'' and inserting ``section 3001 
                (d), (h), (i), or (j)''.
    (c) Administrative Subpoenas.--
            (1) In general.--Chapter 30 of title 39, United States 
        Code, is amended by adding at the end the following:
``Sec. 3016. Administrative subpoenas
    ``(a) Authorization of Use of Subpoenas by Postmaster General.--In 
any investigation conducted under this chapter, the Postmaster General 
may require by subpoena the production of any records (including books, 
papers, documents, and other tangible things which constitute or 
contain evidence) which the Postmaster General finds relevant or 
material to the investigation.
    ``(b) Service.--(1) A subpoena issued under this section may be 
served by a person designated under section 3061 of title 18 at any 
place within the territorial jurisdiction of any court of the United 
States.
    ``(2) Any such subpoena may be served upon any person who is not to 
be found within the territorial jurisdiction of any court of the United 
States, in such manner as the Federal Rules of Civil Procedure 
prescribe for service in a foreign country. To the extent that the 
courts of the United States may assert jurisdiction over such 
person consistent with due process, the United States District Court 
for the District of Columbia shall have the same jurisdiction to take 
any action respecting compliance with this section by such person that 
such court would have if such person were personally within the 
jurisdiction of such court.
    ``(3) Service of any such subpoena may be made by a Postal 
Inspector upon a partnership, corporation, association, or other legal 
entity by--
            ``(A) delivering a duly executed copy thereof to any 
        partner, executive officer, managing agent, or general agent 
        thereof, or to any agent thereof authorized by appointment or 
        by law to receive service of process on behalf of such 
        partnership, corporation, association, or entity;
            ``(B) delivering a duly executed copy thereof to the 
        principal office or place of business of the partnership, 
        corporation, association, or entity; or
            ``(C) depositing such copy in the United States mails, by 
        registered or certified mail, return receipt requested, duly 
        addressed to such partnership, corporation, association, or 
        entity at its principal office or place of business.
    ``(4) Service of any subpoena may be made upon any natural person 
by--
            ``(A) delivering a duly executed copy to the person to be 
        served; or
            ``(B) depositing such copy in the United States mails by 
        registered or certified mail, return receipt requested, duly 
        addressed to such person at his residence or principal office 
        or place of business.
    ``(5) A verified return by the individual serving any such subpoena 
setting forth the matter of such service shall be proof of such 
service. In the case of service by registered or certified mail, such 
return shall be accompanied by the return post office receipt of 
delivery of such subpoena.
    ``(c) Enforcement.--(1) Whenever any person, partnership, 
corporation, association, or entity fails to comply with any subpoena 
duly served upon him, the Postmaster General may request that the 
Attorney General seek enforcement of the subpoena in the district court 
of the United States for any judicial district in which such person 
resides, is found, or transacts business, and serve upon such person a 
petition for an order of such court for the enforcement of this 
section.
    ``(2) Whenever any petition is filed in any district court of the 
United States under this section, such court shall have jurisdiction to 
hear and determine the matter so presented, and to enter such order or 
orders as may be required to carry into effect the provisions of this 
section. Any final order entered shall be subject to appeal under 
section 1291 of title 28. Any disobedience of any final order entered 
under this section by any court shall be punished as contempt.
    ``(d) Disclosure.--Any documentary material provided pursuant to 
any subpoena issued under this section shall be exempt from disclosure 
under section 552 of title 5.''.
            (2) Regulations.--Not later than 180 days after the date of 
        enactment of this section, the Postal Service shall promulgate 
        regulations setting out the procedures the Postal Service will 
        use to implement this subsection.
            (3) Technical and conforming amendment.--The table of 
        sections for chapter 30 of title 39, United States Code, is 
        amended by adding at the end the following:

``3016. Administrative subpoenas.''.
    (d) Administrative Civil Penalties for Nonmailable Matter 
Violations.--Section 3012 of title 39, United States Code, is amended 
by adding at the end the following:
    ``(e)(1) In any proceeding in which the Postal Service issues an 
order under section 3005(a), the Postal Service may assess civil 
penalties in an amount of $10,000 per violation for each mailing of 
nonmailable matter as defined under any provision of this chapter.
    ``(2) The Postal Service shall prescribe regulations to carry out 
the subsection.''.

Summary: Deceptive Games of Chance Mailings Elimination Act of 1998 - Amends Federal postal law concerning nonmailable matter with respect to otherwise legally acceptable matter constituting a solicitation or offer in connection with the promotion of a game of chance that contains words or symbols suggesting the recipient will, or is likely to, receive anything of value. Requires such matter to conform with specified regulations issued by the Postmaster General before it may be carried or delivered by mail. Subjects matter violating such regulations to current cease and desist and other postal law sanctions involving false representations and lotteries. Requires any otherwise legally acceptable matter not in conformance with such regulations to be disposed of as the Postal Service directs. Authorizes the use of administrative subpoenas by the Postmaster General in any investigation involving nonmailable matter.