I

106TH CONGRESS

1ST SESSION H. R. 612

To protect the public, especially seniors, against telemarketing fraud, including fraud over the Internet, and to authorize an educational campaign

to improve senior citizens’ ability to protect themselves against telemarketing fraud.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 4, 1999

Mr. WEYGAND (for himself, Mr. ABERCROMBIE, Mr. GEJDENSON, Ms. KILPATRICK, Mr. ROMERO-BARCELO ́, Ms. NORTON, Mr. UNDERWOOD, Mr.

LAFALCE, Mr. NEAL of Massachusetts, Mr. FORD, Mr. BALDACCI, Mrs.

THURMAN, Ms. JACKSON-LEE of Texas, Mr. CROWLEY, Mr. GREEN of

Texas, and Mr. SMITH of Washington) introduced the following bill;

which was referred to the Committee on Commerce, and in addition to

the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions

as fall within the jurisdiction of the committee concerned

A BILL

To protect the public, especially seniors, against telemarketing fraud, including fraud over the Internet, and

to authorize an educational campaign to improve senior

citizens’ ability to protect themselves against telemarketing fraud.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
2

•HR 612 IH

1 TITLE I—PROTECTION AGAINST

2 SCAMS ON SENIORS

3 SEC. 101. SHORT TITLE.

4 This title may be cited as the ‘‘Protection Against

5 Scams on Seniors Act of 1999’’.

6 SEC. 102. FINDINGS.

7 The Congress finds that—

8 (1) telemarketing fraud costs consumers nearly

9 $40,000,000,000 each year;

10 (2) nearly 10 percent of the 140,000 tele11 marketing firms in the United States engage in

12 fraud;

13 (3) senior citizens are often the target of tele14 marketing fraud;

15 (4) fraudulent telemarketers compile into

16 ‘‘mooch lists’’ the names of potentially vulnerable

17 consumers;

18 (5) according to the American Association of

19 Retired Persons, 56 percent of the names on ‘‘mooch

20 lists’’ are individuals age 50 or older;

21 (6) the Department of Justice has undertaken

22 successful investigations and prosecutions of tele23 marketing fraud through various operations, includ24 ing ‘‘Operation Disconnect’’, ‘‘Operation Senior Sen25 tinel’’, and ‘‘Operation Upload’’;
3

•HR 612 IH

1 (7) the Federal Bureau of Investigation has

2 helped provide resources to assist organizations such

3 as the American Association of Retired Persons to

4 operate outreach programs designed to warn senior

5 citizens whose names appear on confiscated ‘‘mooch

6 lists’’;

7 (8) the Administration on Aging was formed, in

8 part, to provide senior citizens with the resources,

9 information, and assistance their special cir10 cumstances require;

11 (9) the Administration on Aging has a system

12 in place to effectively inform senior citizens of the

13 dangers of telemarketing fraud; and

14 (10) senior citizens need to be warned of the

15 dangers of telemarketing fraud before they become

16 victims.

17 SEC. 103. PURPOSE.

18 It is the purpose of this title through education and

19 outreach to protect senior citizens from the dangers of

20 telemarketing fraud and to facilitate the investigation and

21 prosecution of fraudulent telemarketers.

22 SEC. 104. DISSEMINATION OF INFORMATION.

23 (a) IN GENERAL.—The Secretary of Health and

24 Human Services, acting through the Assistant Secretary

25 for Aging, shall publicly disseminate in each State infor-
4

•HR 612 IH

1 mation designed to educate senior citizens and raise

2 awareness about the dangers of telemarketing fraud.

3 (b) INFORMATION.—In carrying out subsection (a),

4 the Secretary shall—

5 (1) inform senior citizens of the prevalence of

6 telemarketing fraud targeted against them;

7 (2) inform senior citizens of how telemarketing

8 fraud works;

9 (3) inform senior citizens of how to identify

10 telemarketing fraud;

11 (4) inform senior citizens of how to protect

12 themselves against telemarketing fraud, including an

13 explanation of the dangers of providing bank ac14 count, credit card, or other financial or personal in15 formation over the telephone to unsolicited callers;

16 (5) inform senior citizens of how to report sus17 pected attempts at telemarketing fraud;

18 (6) inform senior citizens of their consumer

19 protection rights under Federal law; and

20 (7) provide such other information as the Sec21 retary considers necessary to protect senior citizens

22 against fraudulent telemarketing.

23 (c) MEANS OF DISSEMINATION.—The Secretary shall

24 determine the means to disseminate information under
5

•HR 612 IH

1 this section. In making such determination, the Secretary

2 shall consider—

3 (1) public service announcements;

4 (2) a printed manual or pamphlet;

5 (3) an Internet website; and

6 (4) telephone outreach to individuals whose

7 names appear on ‘‘mooch lists’’ confiscated from

8 fraudulent telemarketers.

9 (d) PRIORITY.—In disseminating information under

10 this section, the Secretary shall give priority to areas with

11 high concentrations of senior citizens.

12 SEC. 105. AUTHORITY TO ACCEPT GIFTS.

13 The Secretary may accept, use, and dispose of uncon14 ditional gifts, bequests, or devises of services or property,

15 both real and personal, in order to carry out this title.

16 SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

17 There are authorized to be appropriated $10,000,000

18 for fiscal year 1999 and such sums as may be necessary

19 for succeeding fiscal years.

20 SEC. 107. DEFINITION.

21 For purposes of this title, the term ‘‘State’’ includes

22 the District of Columbia, the Commonwealth of Puerto

23 Rico, Guam, the Virgin Islands, American Samoa, and the

24 Commonwealth of the Northern Mariana Islands.
6

•HR 612 IH

1 TITLE II—TELEMARKETING

2 FRAUD OVER THE INTERNET

3 SEC. 201. EXTENSION OF CRIMINAL FRAUD STATUTE TO

4 INTERNET.

5 Section 1343 of title 18, United States Code, is

6 amended by—

7 (1) striking ‘‘or television communication’’ and

8 inserting ‘‘television, or Internet communication’’;

9 and

10 (2) adding at the end thereof the following:

11 ‘‘For purposes of this section, the term ‘Internet’

12 means collectively the myriad of computer and tele13 communications facilities, including equipment and

14 operating software, which comprise the inter15 connected world-wide network of networks that em16 ploy the Transmission Control Protocol/Internet

17 Protocol, or any predecessor or successor protocols

18 to such protocol, to communicate information of all

19 kinds by wire or radio.’’.

20 SEC. 202. FEDERAL TRADE COMMISSION SANCTIONS.

21 The Federal Trade Commission shall initiate a rule22 making proceeding to set forth the application of section

23 5 of the Federal Trade Commission Act (15 U.S.C. 45)

24 and other statutory provisions within its jurisdiction to de25 ceptive acts or practices in or affecting the commerce of
7

•HR 612 IH

1 the United States in connection with the promotion, adver2 tisement, offering for sale, or sale of goods or services

3 through use of the Internet, including the initiation, trans4 mission, and receipt of unsolicited commercial electronic

5 mail. For purposes of this section, the term ‘‘Internet’’

6 means collectively the myriad of computer and tele7 communications facilities, including equipment and oper8 ating software, which comprise the interconnected world9 wide network of networks that employ the Transmission

10 Control Protocol/Internet Protocol, or any predecessor or

11 successor protocols to such protocol, to communicate in12 formation of all kinds by wire or radio.

Æ