II 

116TH CONGRESS 

2D SESSION S. 3862 

To increase the penalties applicable under the Federal Trade Commission 

Act during the COVID–19 emergency, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 2, 2020 

Mr. GARDNER (for himself, Ms. SINEMA, and Mrs. CAPITO) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To increase the penalties applicable under the Federal Trade 

Commission Act during the COVID–19 emergency, and 

for other purposes. 

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 ‘‘Combating Egregious 

5 Advertising through Sentencing Enhancement Act’’ or the 

6 ‘‘CEASE Act’’. 

7 SEC. 2. DEFINITIONS. 

8 In this Act: 


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•S 3862 IS

1 (1) COMMISSION.—The term ‘‘Commission’’ 

2 means the Federal Trade Commission. 

3 (2) COVID–19 EMERGENCY PERIOD.—The 

4 term ‘‘COVID–19 emergency period’’ means the pe5 riod that— 

6 (A) begins on the date of enactment of this 

7 Act; and 

8 (B) ends on the last day of the public 

9 health emergency described in section 

10 1135(g)(1)(B) of the Social Security Act (42 

11 U.S.C. 1320b–5(g)(1)(B)). 

12 SEC. 3. INCREASING THE PENALTY FOR FALSE ADVER13 TISING DURING THE COVID–19 EMERGENCY 

14 PERIOD. 

15 Notwithstanding section 14(a) of the Federal Trade 

16 Commission Act (15 U.S.C. 54(a)), any person, partner17 ship, or corporation who violates any provision of section 

18 12(a) of such Act (15 U.S.C. 52(a)) during the COVID– 

19 19 emergency period shall— 

20 (1) for a first offense, be guilty of a mis21 demeanor and upon conviction shall be punished by 

22 a fine of not more than $50,000 or by imprisonment 

23 for not more than 1 year, or both such fine and im24 prisonment; and 


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1 (2) for a second or subsequent offense, be guilty 

2 of a felony and upon conviction shall be punished by 

3 a fine of not more than $250,000 or by imprison4 ment for not less than 1 year and not more than 5 

5 years, or both such fine and imprisonment. 

6 SEC. 4. INCREASING THE PENALTY FOR UNFAIR METHODS 

7 OF COMPETITION AND UNFAIR OR DECEP8 TIVE ACTS OR PRACTICES DURING THE 

9 COVID–19 EMERGENCY PERIOD. 

10 Notwithstanding subsections (l), (m)(1)(A), and 

11 (m)(1)(B) of section 5 of the Federal Trade Commission 

12 Act (42 U.S.C. 45), any penalties that are applicable 

13 under such subsections with respect to conduct occurring 

14 during the COVID–19 emergency period shall be in15 creased— 

16 (1) for a first offense, to $50,000; and 

17 (2) for a second or subsequent offense, to 

18 $250,000. 

19 SEC. 5. PROHIBITING UNFAIR OR DECEPTIVE ACTS OR 

20 PRACTICES RELATING TO COVID–19 DURING 

21 THE COVID–19 EMERGENCY PERIOD. 

22 (a) IN GENERAL.—During the COVID–19 emergency 

23 period, it shall be unlawful for any person, partnership, 

24 or corporation to engage in an unfair or deceptive act or 

25 practice in or affecting commerce that— 


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1 (1) violates section 5(a) of the Federal Trade 

2 Commission Act (15 U.S.C. 45(a)); and 

3 (2) relates to the COVID–19 pandemic. 

4 (b) ENFORCEMENT.— 

5 (1) UNFAIR OR DECEPTIVE ACTS OR PRAC6 TICES.—A violation of this section shall be treated 

7 as a violation of a rule defining an unfair or decep8 tive act or practice prescribed under section 

9 18(a)(1)(B) of the Federal Trade Commission Act 

10 (15 U.S.C. 57a(a)(1)(B)). 

11 (2) POWERS OF THE COMMISSION.— 

12 (A) IN GENERAL.—The Commission shall 

13 enforce this section in the same manner, by the 

14 same means, and with the same jurisdiction, 

15 powers, and duties as though all applicable 

16 terms and provisions of the Federal Trade 

17 Commission Act (15 U.S.C. 41 et seq.) were in18 corporated into and made a part of this section. 

19 (B) PRIVILEGES AND IMMUNITIES.—Any 

20 person who violates this section shall be subject 

21 to the penalties and entitled to the privileges 

22 and immunities provided in the Federal Trade 

23 Commission Act. 

24 (C) EFFECT ON OTHER LAWS.—Nothing in 

25 this Act shall be construed to limit the authorVerDate Sep 11 2014 17:41 Jun 20, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3862.IS S3862

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1 ity of the Commission under any other provi2 sion of law. 

3 SEC. 6. RULE OF CONSTRUCTION. 

4 Nothing in this Act shall be construed to limit or en5 hance the authority of the Commission (other than with 

6 respect to the penalties that the Commission may seek 

7 under the Federal Trade Commission Act (15 U.S.C. 41 

8 et seq.) for conduct occurring during the COVID–19 

9 emergency period) under any other provision of law. 

Æ 


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