108TH CONGRESS

1ST SESSION H. R. 346

AN ACT

To amend the Federal Trade Commission Act to intion 13 of that Act. for such violations in actions brought under sec- Federal Trade Commission to seek civil penalties declared by the President, and to authorize the ular reaction to an emergency or major disaster tain proscribed acts or practices that exploit pop- crease civil penalties for violations involving cer-

108TH CONGRESS

1ST SESSION H. R. 346

AN ACT

To amend the Federal Trade Commission Act to increase

civil penalties for violations involving certain proscribed

acts or practices that exploit popular reaction to an

emergency or major disaster declared by the President,

and to authorize the Federal Trade Commission to seek

civil penalties for such violations in actions brought

under section 13 of that Act.
2

•HR 346 EH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘American Spirit Fraud

5 Prevention Act’’.

6 SEC. 2. INCREASE IN PENALTIES FOR UNFAIR OR DECEP7 TIVE ACTS OR PRACTICES EXPLOITING REAC8 TION TO CERTAIN EMERGENCIES AND MAJOR

9 DISASTERS.

10 (a) VIOLATIONS OF PROHIBITION AGAINST UNFAIR

11 OR DECEPTIVE ACTS OR PRACTICES.—Section 5(m)(1) of

12 the Federal Trade Commission Act (15 U.S.C. 45(m)(1))

13 is amended by adding at the end the following:

14 ‘‘(D) In the case of a violation involving an unfair

15 or deceptive act or practice in an emergency period or dis16 aster period, the amount of the civil penalty under this

17 paragraph shall be double the amount otherwise provided

18 in this paragraph, if the act or practice exploits popular

19 reaction to the national emergency, major disaster, or

20 emergency that is the basis for such period.

21 ‘‘(E) In this paragraph—

22 ‘‘(i) the term ‘emergency period’ means the pe23 riod that—
3

•HR 346 EH

1 ‘‘(I) begins on the date the President de2 clares a national emergency under the National

3 Emergencies Act (50 U.S.C. 1601 et seq.); and

4 ‘‘(II) ends on the expiration of the 1-year

5 period beginning on the date of the termination

6 of the national emergency; and

7 ‘‘(ii) the term ‘disaster period’ means the 1-year

8 period beginning on the date the President declares

9 an emergency or major disaster under the Robert T.

10 Stafford Disaster Relief and Emergency Assistance

11 Act (42 U.S.C. 5121 et seq.).’’.

12 (b) VIOLATIONS OF OTHER LAWS ENFORCED BY THE

13 FEDERAL TRADE COMMISSION.—Section 13 of the Fed14 eral Trade Commission Act (15 U.S.C. 53) is amended

15 by adding at the end the following:

16 ‘‘(e)(1) If a person, partnership, or corporation is

17 found, in an action under subsection (b), to have com18 mitted a violation involving an unfair or deceptive act or

19 practice in an emergency period or a disaster period, and

20 if the act or practice exploits popular reaction to the na21 tional emergency, major disaster, or emergency that is the

22 basis for such period, the court, after awarding equitable

23 relief (if any) under any other authority of the court, shall

24 hold the person, partnership, or corporation liable for a
4

•HR 346 EH

1 civil penalty of not more than $22,000 for each such viola2 tion.

3 ‘‘(2) In this subsection—

4 ‘‘(A) the term ‘emergency period’ means the pe5 riod that—

6 ‘‘(i) begins on the date the President de7 clares a national emergency under the National

8 Emergencies Act (50 U.S.C. 1601 et seq.); and

9 ‘‘(ii) ends on the expiration of the 1-year

10 period beginning on the date of the termination

11 of the national emergency; and

12 ‘‘(B) the term ‘disaster period’ means the 1-

13 year period beginning on the date the President de14 clares an emergency or major disaster under the

15 Robert T. Stafford Disaster Relief and Emergency

16 Assistance Act (42 U.S.C. 5121 et seq.).’’.

Passed the House of Representatives February 12,

2003.

Attest:

Clerk.