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[House Report 107-485]
[From the U.S. Government Publishing Office]

107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-485

======================================================================

 
                CONSUMER PRODUCT PROTECTION ACT OF 2002

                                _______
                                

  May 23, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2621]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 2621) to amend title 18, United States Code, with 
respect to consumer product protection, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     2
Background and Need for the Legislation..........................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Vote of the Committee............................................     3
Committee Oversight Findings.....................................     3
Performance Goals and Objectives.................................     3
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     4
Constitutional Authority Statement...............................     5
Section-by-Section Analysis and Discussion.......................     5
Changes in Existing Law Made by the Bill, as Reported............     5
Markup Transcript................................................     7

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Product Protection Act of 
2002''.

SEC. 2. UNAUTHORIZED PLACEMENT OF WRITING WITH A CONSUMER PRODUCT.

    (a) In General.--Section 1365 of title 18, United States Code, is 
amended--
            (1) by redesignating subsections (f) and (g) as (g) and (h) 
        respectively;
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f)(1) Whoever knowingly stamps, prints, places, or inserts any 
writing in or on any consumer product that affects interstate or 
foreign commerce, or the box, package, or other container of any such 
product, prior to its sale to any consumer, shall be fined under this 
title or imprisoned not more than one year, or both.
    ``(2) This subsection shall not apply in any case in which the 
manufacturer, retailer, or distributor of the product in the due course 
of business consents to the stamping, printing, placing, or inserting 
of a writing.''; and
            (3) in subsection (h) (as redesignated by paragraph (1))--
                    (A) in paragraph (3)(D), by striking ``and'';
                    (B) in paragraph (4), by striking the period and 
                inserting ``; and''; and
                    (C) by adding after paragraph (4) the following:
            ``(5) the term `writing' means any form of representation 
        or communication (including handbills, notices, or advertising) 
        that contains letters, words, graphic, or pictorial 
        representations.''.
    (b) Conforming Amendment.--Section 2332b(g)(3) of title 18, United 
States Code, is amended by striking ``1365(g)(3)'' and inserting 
``1365''.

                          Purpose and Summary

    H.R. 2621, the ``Consumer Product Protection Act of 2002,'' 
would criminalize the unauthorized placement of any writing in 
consumer product packages before their sale to customers. Both 
adults and children throughout the country have been subjected 
to violent, racist, gory, and/or otherwise disturbing materials 
hidden in tampered products. This legislation would prohibit 
the unscrupulous from inserting into commercial products, such 
as cereal boxes, this type of improper material. Moreover, by 
fixing this gap in Federal law, H.R. 2621 would appropriately 
punish, and likely prevent, individuals whose current 
activities damage the value of manufacturers' brand names, 
tarnish companies' well-deserved reputation for safe, high 
quality products, and violate the integrity of the food that 
reaches consumers' homes and families.

                Background and Need for the Legislation

    In the past 5 years, manufacturers of food products 
regularly found that grocery stores have received complaints 
from consumers about hate-filled, pornographic, or political 
literature found in groceries. It appears that the literature 
is being folded and inserted into certain groceries that are 
packaged in boxes. Cereal boxes, frozen pizza boxes, and 
macaroni and cheese boxes are among the more frequently 
tampered product packages. Kraft Foods has reported over 100 
incidents in the past 5 years. It is likely that many more 
cases go unreported by consumers who simply throw away the 
offending material and do not report the event.
    The incidents involve pamphlets espousing racist, anti-
Semitic, and white supremacist sentiments. Also, leaflets have 
been found that attack African-Americans, praise the Holocaust 
and encourage the killing of immigrants. For example, one 
leaflet showed a ``coupon'' with racial slurs thereon and a 
demand for African-Americans to go back to Africa.
    Under current Federal law, tampering with a product's 
packaging is not illegal, so long as the actor does not cause 
the labeling to become false or misleading. Current consumer 
protection legislation, under 18 U.S.C. Sec. 1365, governs this 
area. It focuses on tampering which endangers the health or 
safety of consumers or renders the labeling of a product false 
or misleading, but leaves unregulated conduct which neither 
adulterates the actual product nor alters the labeling.
    This type of conduct harms both businesses and consumers. 
Businesses should be able to control the messages associated 
with their products and persons who interfere with their 
products and the image of their company should be prosecuted.
    Such conduct also harms consumers. The insertion of 
materials into a box does not render the labeling misleading or 
false; however, it does serve as a vehicle to sneak messages 
into homes. Parents can monitor their children's television 
shows, the music they listen to, the books they read, but they 
cannot anticipate that harmful messages may be in a cereal box. 
Nor can they be expected to open all packages before they are 
brought home to ensure that they do not contain more than the 
box claims. Very few would guess that such activity is not 
already illegal. The Consumer Product Protection Act of 2002 
would prohibit the placement of any writing or other material 
inside a consumer product without the permission of the 
manufacturer, retailer, or distributor.

                                Hearings

    The Committee's Subcommittee on Crime held a legislative 
hearing on H.R. 2621 on July 26, 2001. Testimony was received 
from four witnesses. The witnesses were: Tracey Weaver, a 
public citizen; David Zlotnick, Professor, Roger Williams 
University, School of Law; Honorable Melissa Hart, 
Representative of Pennsylvania, fourth congressional district; 
and William Macleod, an industry representative testifying on 
behalf of the Grocery Manufacturers of America.

                        Committee Consideration

    On July 26, 2001, the Subcommittee on Crime met in open 
session and ordered favorably reported the bill H.R. 2621 with 
amendment, by a voice vote, a quorum being present. On May 8, 
2002, the Committee met in open session and ordered favorably 
reported the bill H.R. 2621, with an amendment in the nature of 
a substitute, by a voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes on H.R. 2621.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                    Performance Goals and Objectives

    H.R. 2621 does not authorize funding. Therefore, clause 
3(c) of rule XIII of the Rules of the House of Representatives 
is inapplicable.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 2621, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 14, 2002.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2621, the Consumer 
Product Protection Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Lanette J. 
Walker, who can be reached at 226-2860.
            Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 2621--Consumer Product Protection Act of 2002.
    CBO estimates that implementing H.R. 2621 would have no 
significant impact on the Federal budget. Enacting H.R. 2621 
could affect direct spending and receipts, so pay-as-you-go 
procedures would apply to the bill; however, CBO estimates that 
any impact on direct spending and receipts would not be 
significant. H.R. 2621 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would impose no costs on State, local, or tribal 
governments.
    H.R. 2621 would make it a Federal crime to intentionally 
tamper with a consumer product by placing writing on or inside 
the packaging of the product. Violators would be subject to 
imprisonment and fines. As a result, the Federal Government 
would be able to pursue cases that it otherwise would not be 
able to prosecute. CBO expects that any increase in Federal 
costs for law enforcement, court proceedings, or prison 
operations would not be significant, however, because of the 
small number of cases likely to be involved. Any additional 
costs to implement the bill would be subject to the 
availability of appropriated funds.
    Because those prosecuted and convicted under the provisions 
of H.R. 2621 could be subject to criminal fines, the Federal 
Government might collect additional fines if the bill is 
enacted. Collections of such fines are recorded in the budget 
as governmental receipts (revenues), which are deposited in the 
Crime Victims Fund and spent in subsequent years. CBO expects 
that any additional receipts and direct spending would be 
negligible.
    On September 26, 2001, CBO transmitted a cost estimate for 
S. 1233, the Product Packaging Protection Act of 2001, as 
ordered reported by the Senate Committee on the Judiciary on 
September 6, 2001. The bills are similar and the cost estimates 
are identical.
    The CBO staff contact for this estimate is Lanette J. 
Walker, who can be reached at 226-2860. This estimate was 
approved by Peter H. Fontaine, Deputy Assistant Director for 
Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8 of the Constitution.

               Section-by-Section Analysis and Discussion

Section 1. Short Title
    The short title of the bill is the ``Consumer Product 
Protection Act of 2002.''
Section 2. Unauthorized Placement of Writing with a Consumer Product
    Section 2 of the bill amends 18 U.S.C. Sec. 1365 to make 
knowingly stamping, printing, placing, or inserting any writing 
(including graphic and pictorial representations) in or on a 
consumer product prior to its sale to any consumer a crime. 
This section shall not apply in any case in which the 
manufacturer, retailer, or distributor consents to the writing. 
A person who violates this section would be subject to a fine, 
imprisonment of up to 1 year, or both. This section also makes 
the necessary and conforming amendments to Title 18 of the 
United States Code.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 18, UNITED STATES CODE

           *       *       *       *       *       *       *
                            PART I--CRIMES

           *       *       *       *       *       *       *

                     CHAPTER 65--MALICIOUS MISCHIEF

           *       *       *       *       *       *       *

Sec. 1365. Tampering with consumer products

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1) Whoever knowingly stamps, prints, places, or inserts 
any writing in or on any consumer product that affects 
interstate or foreign commerce, or the box, package, or other 
container of any such product, prior to its sale to any 
consumer, shall be fined under this title or imprisoned not 
more than one year, or both.
    (2) This subsection shall not apply in any case in which 
the manufacturer, retailer, or distributor of the product in 
the due course of business consents to the stamping, printing, 
placing, or inserting of a writing.
    [(f)] (g) In addition to any other agency which has 
authority to investigate violations of this section, the Food 
and Drug Administration and the Department of Agriculture, 
respectively, have authority to investigate violations of this 
section involving a consumer product that is regulated by a 
provision of law such Administration or Department, as the case 
may be, administers.
    [(g)] (h) As used in this section--
            (1) * * *

           *       *       *       *       *       *       *

            (3) the term ``serious bodily injury'' means bodily 
        injury which involves--
                    (A) * * *

           *       *       *       *       *       *       *

                    (D) protracted loss or impairment of the 
                function of a bodily member, organ, or mental 
                faculty; [and]
            (4) the term ``bodily injury'' means--
                    (A) * * *

           *       *       *       *       *       *       *

                    (E) any other injury to the body, no matter 
                how temporary[.]; and
            (5) the term ``writing'' means any form of 
        representation or communication (including handbills, 
        notices, or advertising) that contains letters, words, 
        graphic, or pictorial representations.

           *       *       *       *       *       *       *

                       CHAPTER 113B--TERRORISM

           *       *       *       *       *       *       *

Sec. 2332b. Acts of terrorism transcending national boundaries

    (a) * * *

           *       *       *       *       *       *       *

    (g) Definitions.--As used in this section--
            (1) * * *

           *       *       *       *       *       *       *

            (3) the term ``serious bodily injury'' has the 
        meaning given that term in section [1365(g)(3)] 1365;

           *       *       *       *       *       *       *

                           Markup Transcript

                            BUSINESS MEETING

                         WEDNESDAY, MAY 8, 2002

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:03 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [Chairman of the Committee] presiding.
    Chairman Sensenbrenner. [Presiding.] The Committee will be 
in order.
    [Intervening business.]
    The next item on the agenda is H.R. 2621, the ``Consumer 
Product Protection Act of 2001.'' The Chair recognizes the 
gentleman from Texas, Mr. Smith, Chairman of the Subcommittee 
on Crime, Terrorism, and Homeland Security, for a motion.
    Mr. Smith. Mr. Chairman, the Subcommittee on Crime, 
Terrorism, and Homeland Security reports favorably the bill 
H.R. 2621 with a single amendment in the nature of a substitute 
and moves its favorable recommendation to the full House.
    Chairman Sensenbrenner. Without objection, the bill will be 
considered as read and open for amendment at any point. And the 
Subcommittee amendment in the nature of a substitute, which the 
Members have before them, will be considered as read and open 
for amendment at any point and be considered as the original 
text for purposes of amendment.
    [The amendment follows:]
      
      

  

    Chairman Sensenbrenner. The Chair recognizes the gentleman 
from Texas to strike the last word.
    Mr. Smith. Thank you, Mr. Chairman.
    I want to say that I appreciate the gentlewoman from 
Pennsylvania offering this bill, which I support, and I will 
yield the balance of my time to her.
    [The prepared statement of Mr. Smith follows:]
 Prepared Statement of the Honorable Lamar Smith, a Representative in 
                    Congress From the State of Texas
    H.R. 2621, the ``Consumer Product Protection Act of 2001'', 
introduced by Rep. Melissa Hart, would prohibit anyone from knowingly 
stamping, printing, placing, or inserting any writing in or on any 
consumer product prior to its sale without the consent of the 
manufacturer, distributor, or retailer of such product.
    Under current law, tampering with a product's packaging is not 
illegal, as long as it does not cause the labeling to be false or 
misleading or endanger the health or safety of consumers. Yet product 
tampering can be harmful both to businesses and consumers.
    Product tampering cases that the Subcommittee on Crime, reviewed 
have shown that adults and children across the country have been 
subjected to violent, racist, gory, or otherwise offensive materials 
placed between layers of packaging. Tampering transforms businesses' 
desirable products into vehicles for undesirable messages. This 
legislation will deter those who would wrongfully insert these 
materials into product containers by making it a criminal act.
    Just one company, Kraft Foods, estimates that they receive nearly 
twenty complaints a year, but they also believe that many more cases go 
unreported. The manufacturers have determined that many of these 
materials are placed in the packaging once the products have left their 
control. Often, the products are tampered with while in the retail 
stores or are bought, tampered with, and later returned.
    Parents can monitor their children's television shows, the music 
they listen to, the books they read, but they cannot anticipate 
offensive messages that may be in a cereal box.
    I would like to thank Ms. Hart for sponsoring this legislation, and 
I urge my colleagues to support the bill.

    Ms. Hart. Thank you. Mr. Chairman, I want to thank you for 
bringing this legislation before this Committee, and also Mr. 
Smith for his work on the amendment to the bill. I also want to 
thank my colleague Representative Baldwin, with whom I am 
sponsoring the legislation.
    Protecting consumers from unsafe products is an issue that 
I worked on as a State Senator and one that I am pleased that I 
can continue to work here in Washington.
    The issue that the Consumer Product Protection Act 
addresses is the result of an omission in the Federal Anti-
Tampering Act. Under that act, it is a crime for an individual 
to alter the label of a product or harm the safety of a 
consumer. It is not, however, a crime to place an unwanted item 
in or on a product or its package.
    Imagine opening a box of your favorite cereal and finding a 
hate-filled message or pornographic material. Even worse, 
imagine if you children opened the box and found this material. 
This is just the story that we heard from Tracey Weaver, when 
her son opened a box of cake mix to find a message filled with 
racial slurs.
    In fact, this happens all too often. For example, Kraft 
Foods records show that here have been more than 100 reported 
incidents in the past 5 years.
    Most unfortunate is that when consumers like Mrs. Weaver 
contact the manufacturer to complain, the manufacturer is left 
unable to help their consumer, as the authorities cannot trace 
the source of the problem, noting a lack of authority under the 
Federal Anti-Tampering Act.
    Basically, it is currently not a crime to place an unwanted 
message in a packaged food product. This bill will fix the gap 
in the law by clearly stating that placing unauthorized 
material in or on a product is a crime under the Anti-Tampering 
Act. This legislation protects consumers by reassuring them 
that the products they purchase for themselves and their 
families are safe. In addition, if they complain about such an 
incident, this legislation ensures that authorities have the 
ability to find and prosecute the perpetrator.
    Manufacturers are also helped by this legislation as they 
will be able to address the complaints and the concerns of 
their customers. This legislation will ensure that 
manufacturers are able to maintain the consumer confidence that 
is important to them, so that they can do their business. It 
also assures their customers that the products that they 
purchase and have grown to enjoy and rely upon are actually 
safe.
    Again, I'd like to thank you, Mr. Chairman, for bringing 
this bill before us; Ms. Baldwin, for co-sponsoring the bill; 
and Mr. Smith, obviously, for the amendment and for dealing 
with it in the Subcommittee on Crime.
    I yield back to Mr. Smith.
    Mr. Smith. Mr. Chairman, I will yield back the balance of 
my time as well.
    Ms. Baldwin. Mr. Chairman?
    Chairman Sensenbrenner. The gentleman from Virginia.
    Mr. Scott. Mr. Chairman, I'll yield to the gentlelady from 
Wisconsin.
    Chairman Sensenbrenner. The gentleman from Virginia moves 
to strike the last word and yields to the gentlelady from 
Wisconsin.
    Ms. Baldwin. Thank you, Mr. Chairman.
    I am pleased to be the lead Democrat on H.R. 2621, the 
Consumer Product Protection Act of 2001, and I also wanted to 
thank the work of--recognize the work of Congresswoman Hart and 
her efforts in introducing this bill.
    I urge my colleagues to report this bill favorably to the 
House.
    Over the last several years, consumers have been finding 
offensive materials attached to or inserted inside the 
packaging of a variety of products. Most of these inserts are 
material that are offensive in nature. Many are racist, anti-
Semitic, or anti-gay.
    Finding offensive material can be shocking, and it is 
especially objectionable when a child opens a box and finds 
offensive and even pornographic material inside.
    Responding to customer complaints, manufacturers have 
sought law enforcement help to address this situation. However, 
it has become increasingly clear that law enforcement officials 
lack the authority to prosecute these crimes under State or 
Federal law. Both the FBI and the FDA's Office of Criminal 
Investigations do not believe that they have the authority to 
prosecute these crimes.
    The Consumer Product Protection Act would address this gap 
in Federal law and give authorities the tools they need to 
investigate and prosecute these acts.
    Only two States, California and New Jersey, currently have 
laws prohibiting this practice. This bill would amend the 
Federal Anti-Tampering Act by making it a crime for a person to 
place any writing either on the outside of the package or on 
the inside prior to its sale to a consumer. There are 
appropriate exceptions in the bill for promotional and sales 
purposes, if approved by the manufacturer, distributor, or 
retailer.
    To address some concerns about the appropriate level of 
punishment, the Crime Subcommittee amended the legislation to 
make the crime a misdemeanor instead of a felony.
    I am pleased to be an original co-sponsor of this bill and 
strongly urge the Committee to report the bill favorably to the 
House.
    Thank you, Mr. Chairman. And I yield back to Mr. Scott.
    Mr. Scott. Mr. Chairman?
    Chairman Sensenbrenner. The gentleman from Virginia.
    Mr. Scott. Reclaiming my time, I want to thank Ms. Baldwin 
and Ms. Hart and Chairman Smith for working on this bill.
    The activity we're speaking of is not illegal under Federal 
law and may not be illegal under State law. Ordinarily, I would 
prefer to see States develop the necessary criminal law 
provisions for activities occurring within their States. 
However, given the nature of this problem, where placing 
writings in or on products in one State could end up in a 
number of different States, to the extent that any criminal 
provision is needed, it is appropriate that we consider Federal 
action.
    I believe we've structured the bill in such a way that it 
allows law enforcement to deal effectively with this issue, and 
provide for proportional penalties.
    I support the legislation, thank the leaders of the 
legislation, and ask my colleagues to support it. Thank you, 
Mr. Chairman.
    Mr. Watt. Would the gentleman yield for a question?
    Mr. Scott. I yield to the gentleman from North Carolina.
    Mr. Watt. There's been some reference to an amendment in 
the nature of a substitute, which I don't seem to have. What 
changes were made to the legislation?
    Mr. Scott. I would ask the Chairman, has the amendment in 
the nature of a substitute been offered?
    Chairman Sensenbrenner. The answer is yes.
    Mr. Watt. I apparently didn't get a copy of it, Mr. 
Chairman.
    Chairman Sensenbrenner. It's the Subcommittee amendment in 
the nature of a substitute. We're bringing the gentleman from 
North Carolina a copy of it.
    Mr. Watt. Thank you, Mr. Chairman. I yield back to the 
gentleman from Virginia.
    Mr. Scott. I yield back.
    Chairman Sensenbrenner. Without objection, all Members' 
opening statements may be included in the record at this point.
    Are there amendments?
    If there are no amendments, the question occurs on the 
amendment in the nature of a substitute.
    Those in favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the 
amendment in the nature of a substitute is agreed to.
    The question now occurs on the motion to report the bill 
H.R. 2621 favorably as amended by the amendment in the nature 
of a substitute. The Chair notes the presence of a reporting 
quorum.
    Those in favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the 
motion to report favorably is adopted.
    Without objection, the Chairman is authorized to move to go 
to conference pursuant to House rules. Without objection, the 
staff is directed to make any technical and conforming changes. 
And all Members will be given 2 days, as provided by House 
rules, in which to submit additional, dissenting, supplemental, 
or minority views.

                                  
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