IB 

Union Calendar No. 3

108TH CONGRESS 

1ST SESSION H. R. 346

[Report No. 108–5] 

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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 27, 2003

Mr. BASS introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

FEBRUARY 4, 2003

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

A BILL

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.
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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—
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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 
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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.).’’. 

Union Calendar No. 3

108TH CONGRESS 

1ST SESSION H. R. 346

[Report No. 108–5] 

A BILL

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. 

FEBRUARY 4, 2003

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed